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SETTING STANDARDS                          FOR THE FUTURE                          Evraz Highveld Steel and Vanadium Limit...
STERLING                                                         3 Tungsten Road                                          ...
Silicon Smelters (Pty) Ltd, located in South Africa, is part of                                                           ...
ring into openslagbath furnaces. The            Sales avenues                                 tion – and we have a particu...
Africa is mining. As you will be more              “Evraz Highveld specializes in two          South Africa, which are the...
Business                                    News on                                    the Move                           ...
Mr Scott MacDonald                                                                                                        ...
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Evraz Highveld Steel Vanadium (Appendix A)


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Evraz Highveld Steel Vanadium (Appendix A)

  1. 1. SETTING STANDARDS FOR THE FUTURE Evraz Highveld Steel and Vanadium Limited celebrates its 50th anniversary this year, having been established in 1960. Eric Payne talks to the company’s new Chief Executive Officer, Mr Scott MacDonald, about its unique production processes and plans for future development. Evraz Highveld Steel and Vanadium Singular processes other countries today, hence we put a lot Limited (Evraz Highveld) has come a long Evraz Highveld employs in the region of of time and effort into that.” way in the past 50 years, developing its iron 2,300 people with wide-ranging expertise. One factor that makes Evraz Highveld ore and vanadium mining assets into an As a fully vertically integrated steel company largely unique is its integrated operations. integrated mining, processing and mar- – running its own mining, processing and The process starts at the Mapochs mine, keting operation, with sales throughout sales operations – Evraz Highveld directly where Evraz Highveld mines iron ore, which South Africa and in export markets. employs a range of specialist engineers. is then transported directly to its In 2006, Evraz, the Russian metallurgical “The key is to have appropriately skilled Steelworks for processing into steel. giant, and Credit Suisse, purchased Anglo and qualified people in all of the various During the steel making process the com- American plc’s 24.9 percent share in stages of our production process, which is pany also extracts vanadium slag which is Highveld. In 2007, Evraz exercised its why we spend a lot of time on training to sold to be processed into ferro-vanadium. option to acquire the share capital held by enable us to maintain the right balance of “At the moment, the Mapochs mine is Credit Suisse as well as the share capital still skills. Finding, attracting and retaining fully owned by Evraz Highveld,” Mr held by Anglo American. In February 2008, the right numbers of skilled people is a MacDonald explains. “However, the the transaction was completed fully. challenge in South Africa, and a lot of intention is for the facility to feed into a116 EUROASIA INDUSTRY EUROASIA INDUSTRY 117
  2. 2. STERLING 3 Tungsten Road P.O.Box 2254 LABOUR HIRE WITBANK 1035 Tel: 013-656 1089 / 1924 REG NO: 2000/030940/23 VAT NO: 4480191917 Fax: 013 656 3249 Mission Statement To ensure our Clients receive services of required standard and backing them up with quality, and services they themselves offer their clients. We strive to be available to our clients at all times, thus easing extreme pressure, by quick response, commitment and a guaranteed high standard of workmanship. To Provide our customers with the assurance that products and services rendered by Sterling Labour Hire, will meet agreed specifications and performance requirement.... 1. Mechanical Fabrication 2. Labour Hire 3. Equipment Hire 4. On-Site Fabrication 5. Structural Steel Erection 6. GRP - Pipe / Steel Pipe Work 7. General Plant Work & Maint. 8. Shut - Down work 9. Clading of buildings {Sheeting} Contact Details: (tel) 013-6561089 / 1924 (fax) 013-656 3249 Email:;; No 3 Tungsten Rd, Industrial Area, Witbank 1035, Mpumalanga, South Africa Po Box 2254, Witbank 1035. Members: N.W. Mckensie, A.D Sandenbergh118 EUROASIA INDUSTRY EUROASIA INDUSTRY 119
  3. 3. Silicon Smelters (Pty) Ltd, located in South Africa, is part of the FerroAtlantica Group, an international ferroalloy producer with its head office in Spain. The core activity of Silicon Smelters (Pty) Ltd is the production of Ferrosilicon in its Rand Carbide plant located in Witbank, and the production of high-grade silicon in the Polokwane plant. BEE (Black Economic Empowerment) face, making it relatively easy to extract. around the world that mine and process The following products are produced and sold on the local and transaction later in 2010. In April 2009 The mine is located roughly 130 kilometres this ore. As such, when this company was we concluded an agreement to transfer 26 from Evraz Highveld’s processing facility established, some very clever people international markets: percent of the ordinary equity interest in and material is shipped directly between developed a specific process for working Mapochs to local partners. The transac- the two via rail. “The steel making with that ore, which is unique to Evraz • Silicon: for the aluminum, chemical and specialized markets tion is subject to certain conditions and process itself, however, is quite unique,” Highveld. New Zealand Steel has a sim- now we are waiting for the approval of the Mr MacDonald emphasises. “Unique in ilar process, but even that is not exactly • Ferrosilicon: For steel and foundry markets regulator that will be given in due course”. the sense that the ore that we extract is a the same.” Today, the Mapochs mine is basically magnetite ore with high levels of titanium The iron making process involves • Silica Fume: For the construction industry open cast; most of the ore is on the sur- in it. There are very few other facilities bringing iron ore into the plant, transfer- • Söderberg electrode paste: For electric arc furnace applications In addition to the ferroalloy plants, Silicon Smelters (Pty) Ltd is also a shareholder in Thaba Chueu mining, a South African BEE company specializing in silica mining in South Africa. Silicon Smelters (Pty) Ltd. Byersnek Road, Polokwane. Tel: +27 15 290 3000 Web: EUROASIA INDUSTRY
  4. 4. ring into openslagbath furnaces. The Sales avenues tion – and we have a particular focus on liquid iron is transferred to the Steel plant In terms of its production levels, at the producing heavy sections. to produce steel. The steel is casted into moment, the company is working at around “There are two major steel companies slabs, blooms or billets at the continuous 95 percent capacity, which it intends to in South Africa – ArcelorMittal and Evraz caster. The slabs are transported to the continue doing for the remainder of 2010. Highveld Steel and Vanadium Limited. flat products mill for rolling into flat “Our core market is obviously South Africa; However, we are the only company in South products. The blooms are transported to 75 percent of our output is sold to the Africa that manufactures steel sections, and the structural mill for rolling into struc- domestic market,” he affirms. “In terms of clearly one of the biggest consumers of sec- tural products and the billets are sold as sectors, like in many other markets around tions is the construction sector. The other final products.” the world, the biggest sector is construc- major sector that we focus on in South122 EUROASIA INDUSTRY EUROASIA INDUSTRY 123
  5. 5. WE ASSURE YOU OF OUR BEST SERVICE AND ATTENTION AT ALL TIMES AND HOPE TO BE OF SERVICE TO YOU. EARTHMOVING MECHANISMS were established during 1991 to supply a much needed service to the Industrial and Mining Sectors. Our Company has a field service team to carry out maintenance, repairs, fault finding and servicing. We also offer parts at reasonable prices. Our Company is currently on the list of several registered Companies and is registered as a B.E.E. Company. Our Workshop is situated at Plot 105, Section 292, Kromdraai, Witbank The Workshop is fitted MACHINES FOR HIRE: with overhead Cranes and we are completely safety equipped. We are registered with MERSETA Komatsu W320-3 Front End Loader - 16 Ton /2,4 c/m3 Bucket, Hitachi w 170 Front End Loader, 30 (Manufacturing, Engineering and Related Services Seta) in order to assist in Apprentice training Ton Excavator, Komatsu D85/18 Dozer – 30 Ton operating weight / 7,2c/m3 Blade, Fiat Allis Dozer. for our future Artisans. SAFETY HEALHT ENVIROMENTAL SYSTEMS (SHE) PURPOSE Our Company believes in the right of the individual employee to work in a physically and mentally Our main purpose is to assist in repairs of Earthmoving machinery like, i.e.: Dozers, Loaders, Excavators, safe environment. We therefore consider safety as one of the highest priorities in any project. In Dumpers, and Motor Graders, etc. That means we are able to assist the remanufacturing of Com- order to meet our Health and Safety obligations we comply with the Mine Health and Safety Act ponents, like:- 1996 and Mineral Act 1991 as well as the OHS Act 85 of 1993 and the Construction Regulations of 2003 Engines, Transmissions, Hydraulic systems (Valves, Safety Valves, Obetrols, Control & Demand Valves) and around Machines. We have implemented the Advantage ACT Implex Safety compliance system on all our sites We conform to IS0 14000 Environmental regulations and procedures. We trust that this information To strip down Machine and overhaul components and re-assemble machines. We offer a very com- will be useful to you and we do look forward to receiving future inquiries. Should you have any petent labour rate and are available 24 hours were needed. queries, please do not hesitate to contact us.124 EUROASIA INDUSTRY P.O.Box 8034, Die Heuwel, Witbank 1042 - Tel: (013) 652 8116 • Fax: (013) 652 8118 • Email:
  6. 6. Africa is mining. As you will be more “Evraz Highveld specializes in two South Africa, which are then followed up than aware, the FIFA 2010 World Cup product areas, steel products, which are on by our sales people. For instance, Eskom was hosted by South Africa earlier this mainly sold through service centres in recently received a World Bank loan for year, and a lot of stadiums were built in South Africa – Macsteel Service Centres US$3.75 billion, to build a new coal-fired preparation. Stadiums require a lot of SA, which is part of an international power plant, and we will certainly be sections, so we have been doing very good group, being one of the largest; and vana- looking to link into the steel supply,” business supplying those. Post-World Cup, dium, which the company produces as Mr MacDonald confirms. we are starting to see signs that the general slag and supplies to Austria. economy in South Africa is beginning to Naturally, the company also targets spe- Technical compliance improve. There is still a long way to go, but cific projects, when they are well suited to As a vertically integrated company, Evraz the signs are that there is real underlying what Evraz Highveld is able to supply. “We Highveld can leverage significant advantages improvement in demand.” follow all of the major contracts issued in over other steel companies in terms of how126 EUROASIA INDUSTRY EUROASIA INDUSTRY 127
  7. 7. Business News on the Move Subscribe to Euroasia Industry and you will receive the online edition of the magazine, direct to your computer. The latest business news and major industry develop- ments are now just a click away. Let business news come to you – wherever you are. Subscribe today at: DE JAGER ENGINEERING cc it manages supply and demand. “Other we want to increase our presence in export inside of the company is called H0TT0, or Fabrication - Erection - Machining and Palisades steel companies are looking to become more markets, Evraz already has a global foot- Evraz Highveld Zero Tolerance Target Zero. vertically integrated, whereas we are already. print that we can take advantage of.” This is the banner under which all of our Bertus: 082 808 6402 This, combined with our two product In terms of quality control, Evraz posters, initiatives and safety rules are set.” streams – steel and vanadium – gives us a Highveld is ISO 9001 approved by the As far as Mr MacDonald is concerned, Office No: Address: significant competitive advantage,” Mr German regulatory body, TUV. The com- the best way to improve and maintain high MacDonald attests. “The third competi- pany is also very safety focussed and will safety standards is by demonstrating it Tel No: (013) 659 7128 P.O.Box 1212 Keerom Str 3 tive advantage I would list is that we are a be even more so under Mr MacDonald’s through leadership: “All of the people on Tel No: (013) 659 7097 Witbank Clewer JSE-listed company with a major share- leadership. “I started working here on 1st the management team have to demonstrate Cell No: 082 896 6056 1035 holder in the form of Evraz, the global steel March 2010, and one of my top priorities that health and safety is a key priority Fax No: (013) 659 7103 Email: company, which holds just over an 85 per- for the company is an even greater focus on through their actions. The two things that cent stake in Evraz Highveld. As such, if safety. One of the programmes that we run I have already said to people here is, be chal-128 EUROASIA INDUSTRY EUROASIA INDUSTRY 129
  9. 9. Mr Scott MacDonald Chief Executive Officer lenged and challenge. If you see someone ular liaisons with government depart- countries around the world at the moment, demand improving? I’m not so sure at this carrying out an unsafe practice, challenge ments to get their input and listen to electricity prices are increasing quite dra- stage. Whereas in South Africa, there them. Having already raised this with the their suggestions”. matically. We have started the initial eval- are signs that real underlying demand is unions on site, the response has been uation and, two or three years down the improving and that the market has slowly extremely positive. But, as I said to them, Future priorities line, we expect to be developing some started moving in the right direction. it is equally important that their members Looking to the future, the company’s top form of co-generation project. “Finally, in the past, we have not been act accordingly and do not become com- priority is to identify areas where it can “Another key driver for our future will be particularly communicative with investors placent on site. Our ultimate objective is improve efficiencies and reduce waste in its a focus on customers,” he continues. “At on the JSE. This is going to change,” “Mr zero accidents.” manufacturing processes. “We will be the end of the day, we have to meet customer MacDonald announces. “As of March 2010, Likewise, the environment is looking at the entire supply chain, from expectations and address needs within sec- we have embarked on a series of road shows one of the company’s “top focuses”, when we extract ore out of the ground to tors as the markets develop. In that sense, where we speak with investors, and this has as Mr MacDonald describes it. “At the when we deliver a finished product to a getting closer to our customers is going to be gone down extremely well. The feedback moment, we are in the process of estab- customer, in order to make what we do as very important. By way of summary, better, we received has been positive and we are lishing a five-year plan for environmental simple as possible,” Mr MacDonald attests. faster, smarter are the three words I would more conscious than ever of the fact that, development, which will certainly involve “Environmental issues are another high use to describe what we are doing here. as a public company, we have got to be a some form of capital expenditure. Like in priority which we have just covered, and “In terms of the market itself, we are cau- lot more open than we have been in the many other countries around the world, looking to the slightly longer term, we will tiously optimistic. To draw a comparison, past. Indeed, the company publicly cele- the environment is right at the top of the be looking to establish some kind of co-gen- when I look at the UK, which is where I am brated its 50th anniversary on 19th agenda in South Africa, and we have reg- eration facility. Much like in many other from, I see re-stocking, but is underlying May 2010.”132 EUROASIA INDUSTRY EUROASIA INDUSTRY 133