Stuart holds a Bachelor of Engineering (Mining) from the Western Australian School of Mines. He is a seasoned mining services executive with over 25 years of experience, having worked in more than 20 countries across EMEA and the Asia-Pacific regions. His expertise spans strategic planning, project management, and cross-cultural leadership, coupled with a deep understanding of both the technical and commercial aspects of mining, particularly in the drill and blast sector.

Throughout his career, Stuart has demonstrated measurable success in leading global businesses in the mining chemicals and services industries. His leadership has been instrumental in achieving significant growth and efficiencies, and he has a proven track record of guiding diverse teams to surpass targets and deliver step-change growth in the businesses he has led.

Stuart's extensive international experience and strategic vision will be invaluable as we advance our corporate strategy and optimise our operations. Please join me in welcoming Stuart to AECI and extending our heartfelt thanks to Thinus for his leadership and stewardship of the Mining Division.

We look forward to Stuart, his wife and three children joining the AECI family soon.

Warm regards,

Holger Riemensperger
Group Chief Executive Officer

Disposal of Schirm USA – AECI through its wholly owned subsidiary Schirm GmBH (“Schirm Germany”), has entered into an asset purchase agreement with Liberation Chem-Toll, LLC, for the disposal of its Schirm USA business for a total purchase consideration of USD60 million (c.R1.1 billion).

Schirm USA is a chemical toll manufacturer in the United States of America with formulation, packaging and warehouse facilities strategically located in North Texas and Southern Illinois. Schirm USA processes and produces chemicals for customers in various industries including agriculture, industrial chemicals and speciality products through the provision of, inter alia, liquids, powders, extruded granules, pellets and impregnated granules.

The transaction is expected to close on/or before 30 August 2025, subject to the fulfilment or waiver of customary conditions precedent, typical with transactions of this nature.

Disposal of Baar-Ebenhausen assets – Schirm Germany entered into a sale agreement with German-based private buyers to dispose of its assets in Baar-Ebenhausen including the operations, property, fixed assets and inventory relating to the site.

Schirm Germany is a contract manufacturing services focusing on agrochemicals and specialty chemicals, with capabilities spanning synthesis, formulation and packaging, together with related supply chain solutions. The German operations function across three key facilities, namely Baar-Ebenhausen (“BEH”), Lübeck (“HL”) and Schönebeck (“SBK”). BEH and HL concentrate on formulation, filling and packaging (“FFP”) operations, while SBK supports both FFP and synthesis, with additional specialised manufacturing functions.

The successful conclusion of the BEH disposal, on 30 June 2025, resulted in all risks and rewards associated with the BEH assets transferring to buyers. AECI will benefit from a c.EUR3 million saving resulting from future restructuring costs and environmental liabilities associated with the asset.

Disposal of the Food & Beverage division – AECI has sold Food & Beverage (“F&B”) business as a going concern to a South African-based private equity company.

The Food & Beverage (“F&B”) division supplies a range of technology driven and consumer-led additives, ingredients and processing aids including products and solutions for the beverage, dairy, health and nutrition and commodities industries.

The F&B Business operates as a division of AECI and will transfer to its new owners in its entirety. The transaction will not disrupt ongoing operations, customers or employees, ensuring business continuity as the division moves forward under its new owners.

Comment from management

In line with AECI’s strategic direction unveiled in November 2023, the Group announced plans to divest from non-core businesses, including Schirm GmbH, which operates in Germany and the United States (US), Sans Fibres US, Food & Beverage and Animal Health and the now disposed Much Asphalt business (Managed Businesses). These disposals are in line with the Group’s strategy of streamlining its portfolio to focus on its core business of Mining and Chemicals services.

Holger Riemensperger, Chief Executive of AECI Group, commented: “The disposal of the Managed Businesses is part of our ongoing work to simplify and strengthen AECI’s portfolio, allowing us to concentrate efforts on the sectors where we have strong market positions and exciting opportunities for international expansion.”

The conclusion of these transactions is expected to generate proceeds that will allow the Group to continue fulfilling its commitments and improving certain key performance indicators, particularly free cash flow generation.

Riemensperger further commented: "We committed to using proceeds from the sale of our non-core business to reduce debt and reinvest into our core business. With the reduction in our Group debt, following the divestment of Much Asphalt and taking into account our current business performance, we are comfortable with our debt levels and have begun exploring inorganic growth opportunities for our business.”

AECI Group CEO, Holger Riemensperger said: “Divesting our Public Water Division delivers on our strategy to dispose of non-core assets, streamline operations and optimise our portfolio. It will support our capital allocation strategy and position AECI for sustainable growth and to focus on improving the performance of our core business.”

The Public Water Business is a separate division of Improchem’s water business and includes the manufacturing and supplying of water treatment chemicals, providing engineered water treatment solutions and supplying other complimentary products to the public water sector.

Nsukutech specialises in the manufacture of speciality chemicals for water treatment, mineral processing and other applications. Junaco is a Tanzanian-based company and a leading supplier of water treatment chemicals and equipment across Eastern and Southern Africa. Junaco has played a key role in the export of AECI’s water treatment chemicals across Africa, with a partnership that has spanned over 15 years.

The Public Water Business will continue supplying its direct clients and distributor network in anticipation of a smooth transition of assets, capacity and contractual opportunities to the Purchaser and will ensure continuity of service and supply into the public water market, once the Proposed Transaction is concluded.

AECI is optimising its portfolio to create a platform for growth with the company is focusing on its core business, namely AECI Mining and AECI Chemicals and divesting from managed businesses with limited synergies with the chosen core businesses.

Johannesburg, 26 February 2025 – AECI Limited (JSE: AFE) today announced its audited financial results for the year ended 31 December 2024, delivered during a period of significant transformation. Strategic execution, purposeful leadership, and operational efficiencies have established the groundwork for long-term, sustainable growth.

STRATEGIC HIGHLIGHTS

AECI remains on track to double profitability in its core businesses by 2026 and position itself among the top three global players in mining solutions by 2030. In 2024, key milestones included:

• A streamlined operating model enhancing agility and execution
• Strengthened leadership and governance structures
• Divestment of non-core assets, including AECI Animal Health and AECI Much Asphalt
• Expansion into Peru and significant growth in Australia
• Achieving a EBITDA run rate of R800 million, with R400 million already reflected in financials.

"2024 was a defining year for AECI," said Holger Riemensperger, Group CEO. "We made bold decisions to reshape our portfolio, enhance efficiencies, and position the business for long-term, sustainable success. While the near-term financial impact was unavoidable, these changes lay the foundation for significant future growth."

FINANCIAL PERFORMANCE

As 2024 was the first full year of execution against our new strategy, the Group made some necessary concessions which are key enablers in the successful execution of the strategy. The reported results reflect the impact of these strategic enablers which include strategic divestments, transformation investments (collectively aggregating to R0.9 billion), and once-off impairments (R1,1 billion). These enablers underpin the transitionary phase of our strategy and form a platform on which the Group can build towards achieving strong and sustainable future performance.

• Normalised EBITDA from continuing and discontinued operations: R3.7 billion (2023: R3.8 billion)
• Normalised profit from operations from continuing and discontinued operations: R2.5 billion (2023: R2.7 billion)
• Basic EPS from continuing operations: 263 cents (2023: 1 043 cents)
• Basic loss per share from discontinued operations: 531 cents (2023: earnings of R69 cents)
• Headline EPS: 716 cents (2023: 1 112)
• Final dividend: 119 cents per share

"We have remained financially disciplined despite headwinds," stated Ian Kramer, Acting CFO. "Our transformation initiatives are gaining traction, setting AECI on the path to a more profitable future."

SUSTAINABILITY AND OUTLOOK

AECI remains committed to sustainability and safety. In 2024, the company recorded no fatalities and achieved a total recordable incident rate (TRIR) of 0.30 (2023: 0.35). Reductions in the Group’s environmental impact included a 1% reduction in our CO2 footprint year-on-year. AECI Mining’s installation of 6.5MW of renewable energy during 2023-2024 led to a reduction in its energy expenditure by R30 million in 2024. The Group decreased its potable water consumption by 2% year-on-year and reduced our discharge to sea or sewer by 7% year-on-year.

Looking ahead, AECI will focus on:

• Achieving the 2025 TMO targets linked to the overall 2026
• Continuing to position AECI Mining for growth and improved operational performance
• Advancing the divestment programme
• Continuing to strengthen leadership critical skills and capacity, including the roll-out of the culture journey

“We are executing our strategy with focus and urgency, ensuring AECI is well-positioned for long-term success. The path is clear, and the momentum is building,” concludes Holger Riemensperger.

FULL RESULTS AVAILABLE

The audited results are available at: https://www.investor.aeciworld.com/results-reports-presentations.php#results

About AECI

AECI is a diversified chemicals solutions company, employing 7,000 people across more than 100 sites. We have a presence in 22 countries on six continents. Founded in 1896 to service South Africa's burgeoning gold and diamond mining industries, the company was formally established in 1924. AECI was listed on the securities exchange operated by JSE Limited in 1966. A significant contributor to the South African economy, we have expanded our reach over the years and evolved our product and service offerings to serve a broad base of customers. Our core products and services include mine-to-mineral solutions; water treatment solutions; chemical raw materials and related services; crop protection products and plant nutrients; as well as property leasing and utilities provision. Our operations are structured into four segments: AECI Mining, AECI Chemicals, AECI Corporate and Property Services, and AECI Managed Businesses.

Contact for enquiries:

AECI investor relations

AECIInvestorRelations@aeciworld.com

Much Asphalt is South Africa’s leading independent manufacturer and supplier of bituminous products. The company manufactures and delivers premium-grade products to customers for use in infrastructure such as roads, airport runways, and private use, including hot and cold asphalt products, bituminous road binders, emulsions, primers, pre-coats and modified binders. The transaction will grant OMPE and Sphere access to a well-established leader with a strong market presence in the asphalt industry, positioned to capitalize on the positive growth trends and ongoing recovery in the road infrastructure sector.

OMPE, part of Old Mutual Alternative Investments, is one of the largest and most established private equity fund managers in South Africa. With a 24-year track record of investing in the country, OMPE plays a pivotal role in the country's investment landscape, managing a diverse portfolio worth over R16 billion across various industries and sectors. Complementing this, Sphere Investments is a leading, Black-owned, high-performing investment holding company. Since 2003, Sphere has partnered with management teams and invested in a diverse portfolio of companies in the engineering, infrastructure maintenance, custom software, industrial and education sectors.

Holger Riemensperger, Group CEO of AECI Limited, commented, “Together, OMPE and Sphere provide a platform for financial strength, market access and long-term success for Much Asphalt. This transaction is another significant step in our strategic journey and we are pleased with the outcome”.

The sale of Much Asphalt is a key component in the divestment strategy for AECI announced in November 2023. AECI is committed to the successful execution of our strategy, and this transaction enables us to focus our efforts and resources on achieving our goal of doubling the profitability of the core business (Mining and Chemicals) by 2026, while securing a top 3 global market position in Mining by 2030.

"As we look ahead, we are confident in a smooth transition and wish to express our sincere appreciation to our employees, customers, suppliers and partners for their continued support," Riemensperger stated.

Zanele Salman

VP: Investor Relations

zanele.salman@aeciworld.com

groupcommunications@aeciworld.com

AECIInvestorRelations@aeciworld.com

Michelle le Roux

Acting Group Head of Marketing & Communications

michelle.leroux@aeciworld.com

About AECI

AECI is a diversified chemicals solutions company employing 7 168 people at more than 100 sites. We have a presence in 22 countries on six continents. Founded in 1896 to service South Africa’s burgeoning gold and diamond mining industries, the company was formally established in 1924. AECI was listed on the Johannesburg Stock Exchange in 1966. A mainstay of the economy in South Africa, over the years we have expanded our presence and evolved our product and service offering to a broad base of customers.

Up to 31 December 2023, our operating businesses were structured into four key segments: AECI Mining, AECI Water, AECI Agri Health and AECI Chemicals. In alignment with our strategy and optimising our portfolio to create a platform for growth, we will focus on AECI Mining and AECI Chemicals.

The businesses in the Mining segment provide a mine-to-mineral solution for the international mining sector. The offering includes commercial explosives, initiating systems, blasting services and surfactants for explosives manufacture across the value chain to chemicals for ore beneficiation and tailings treatment.

We have defined a new corporate and portfolio strategy with a restated purpose: We Are One AECI, for a Better World. By reaffirming our purpose, we aim to reinforce our collective commitment as a unified team towards creating a better world. The strategy is designed to transform our organisation, with an ambition to double the profitability, by EBITDA, of the mining and chemicals business by 2026 and attain a global market position of number 3 in the industry by 2030.

Forward-Looking Statements

This media release contains forward-looking statements, including but not limited to statements regarding the anticipated closing of the transaction and future performance of AECI. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from those anticipated due to various factors.

AECI website: www.aeciworld.com

(Incorporated in the Republic of South Africa)

(Registration No. 1924/002590/06)

Share code: AFE ISIN: ZAE000000220

Hybrid code: AFEP ISIN: ZAE000000238

Bond company code: AECI

LEI: 3789008641F1D3D90E85

(AECI or the Company or the Group)

2024, A YEAR OF TRANSITION FOR AECI

Unaudited Consolidated Interim Financial Results For The Half-Year Ended 30 June 2024

• Safety performance: TRIR of 0.28 (30 June 2023: 0.38*)

•  Revenue down 4% to R17 580 million

• EBITDA¹ down 24% to R1 390 million

•  Profit from operations²

•  HEPS down 57% to 260 cents

•  EPS down 61% to 233 cents

•  No interim dividend declared (30 June 2023: 100cps)

* Restated to account for unrecorded numbers from AECI Schirm
1 Earnings before interest, taxation, depreciation and amortisation calculated as profit from operations and equity-accounted investees plus depreciation, amortisation and impairments. EBITDA is unaudited.
2 Earnings before interest and taxation is defined as profit before interest, taxation and share of profit of equity-accounted investees, net of taxation

JOHANNESBURG, 31 JULY 2024 - Our stated ambition as the AECI Group is to double profitability of our core businesses by 2026 and to attain a global market position in Mining of #3 by 2030.

In the first six months of this year, we made strides in investing in the capabilities required to execute on our strategy and have commenced delivering on the milestones set. This positions the businesses for improved operational efficiencies, overall performance and profitability in the short to medium term, as well as sustainable growth in the long term.

Pleasingly, we achieved the following key strategic milestones in the first half of 2024:

• New executive leadership is in place

• The restructure of the organisation in line with our new operating model to the third level below the Executive Committee

• A leadership compact, culture code and desired behaviours developed to foster a high-performance culture

•  The sale of AECI Animal Health in line with our portfolio optimisation journey

• R400m EBITDA run rate delivered

• R800m organic mining and chemicals growth projects defined

• Enhanced mining digital platform for high-performance initiating systems and cutting-edge electronics technology is being launched

• Increased investment in maintenance to ensure the prolonged life of our existing asset base

Our strategic transition is progressing well. With the focus and investment we have dedicated in the first half of the year, we anticipate continued momentum and substantial value realisation in the second half of the year and the future.

“I am proud of the results achieved by the Group during the period under review. Our business is resilient, supported by the strong underlying fundamentals of a world class team and leading technology, superior customer service and value-accretive growth opportunities,” says Holger Riemensperger, AECI Group Chief Executive Officer. “The execution of our strategy is progressing as planned and I am confident that we will deliver on our promises.”

RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2024

Safety

Our goal of achieving Zero Harm and managing and mitigating risks is anchored in the principles of accountable leadership, engaged and empowered employees, risk-based Safety, Health, Environment and Quality (SHEQ) management and continuous improvement. No fatalities were recorded in the period under review. The Group’s 12-months rolling total recordable injury rate (TRIR) improved to 0.28 from 0.38 as at 30 June 2023 (restated). Our 2023 sustainability report noted that the 2022 TRIR measure was restated due to under-reporting in AECI Schirm. With this measure being on a 12-months rolling basis, the previously reported figure of 0.24 was also impacted and was consequently restated.

Segmental review

AECI Mining

During the period, we invested in four statutory shutdowns, two of the shutdowns were deferred from the previous year and two were planned for the period. We used this opportunity to also catch-up on other maintenance, setting up our operations for delivery in the second half of the current year and into the future. Our ammonia supply in South Africa improved significantly after the commissioning of 60 wagons, resulting from the memorandum of understanding signed for 120 refurbished wagons. The ramp-up to 120 wagons takes place at an agreed 20 wagons per month expected to be introduced to the supply network. We augmented the supply of ammonia by road transportation to further build resilience in our supply chain. To support the long-term sustainability of our operations we are actively exploring alternative supply of ammonia, including green ammonia.

The segment recorded revenue of R9 376 million compared to R10 004 million in H1 2023. This decrease is attributable to lower ammonia prices and lower sales volumes in the South African market. Profit from operations was down 12% to R909 million when compared with the same period in 2023 because of lower revenue, inflationary cost increases and the R204 million investment spend in the segment. Operating margins remained in line with the prior year at 10%, showing the effectiveness of our risk mitigation processes against the price of ammonia. If normalised for the investment spend, the mining segment’s operating profit shows a flat year-on-year performance with stable margins.

Our business continues to grow globally with new contract extensions in Asia Pacific where bulk explosives volumes were up 23% and electronics grew by 33% during the period. We continue to grow in Central Africa, where robust mining activity is driving growth. Following the increase in rail wagons, we have ramped up the Richards Bay storage to rail supply of ammonia. Regarding inland supply of ammonia, we have initiated road transportation as an additional means of supply, further securing the supply of the key raw material.

Sales volumes of mining chemicals are expected to improve on the back of an anticipated recovery in mining activity in South Africa.

AECI Chemicals

The segment’s revenue of R4 363 million (H1 2023: R4 555 million) was down 4% due to the continued decline in the South African manufacturing and industrial sectors and over-supply of key products. A pleasing increase in profits from operations of 9% from R365 million, restated in H1 2023 to R395 million, is attributable to stringent cost management and increased operational efficiencies. The operating margin for the period was 9% (H1 2023: 8%).

AECI Property Services and Corporate

This segment recorded a loss of R484 million (H1 2023: R42 million loss) arising from necessary investment in strategy execution, including:

• R255 million in transformation costs

• R85 million in divestment costs

• R82 million in severance costs

 This investment spend is essential for the implementation of our strategy and the delivery of the 2026 EBITDA value unlock.

Group major strategic growth projects

Delivering on our globalisation strategy

• Continued organic growth in Australia, leveraging our current market presence that grew 33% year-on-year

• Asia Pacific Growth, Papa New Guinea targeted growth in the region for mining explosives. Plant will be commissioned in Q4 2024

• In Latin America we are in the early stages of growth and gaining momentum through market share gains, exports, and expansion in Brazil, Chile and Peru

•  Europe Wolfenbuttel plant in Germany, repurposed to produce and sell mining chemicals to the international market

• A non-disclosure agreement has been signed with a partner in South Africa for the potential long-term supply of green ammonia. The project is expected to be commissioned in 2027/2028

• Specialty chemical assets have been repurposed towards mining chemicals for exports into the continent

Group Financial Performance

Revenue for the Group was down 4% to R17 580 million (H1 2023: R18 404 million). Profit from operations decreased from R1 269 million in the prior period to R818 million, mainly because of:

• R450 million investment spend for strategy execution

• R204 million investment spend resulting mainly from statutory shutdowns

Following the investments, the Group’s profit from operations margin declined to 5% (H1 2023: 7%). Excluding the investments spend during the period, the Group delivered flat year-on-year earnings before interest and tax. This demonstrates the resilience of our underlying businesses. This performance was delivered in a challenging trading environment marked by declining commodity prices, ongoing geopolitical conflicts, high interest rates, inflation, supply chain disruptions and a slowdown in the South African macroeconomic environment and the mining industry.

Basic earnings per share and headline earnings per share decreased by 61% and 57% to 233 cents and 260 cents, respectively, following lower profitability and an elevated effective tax rate.

The Board and executive management of AECI have applied the dividend policy and will not declare a dividend at this time due to negative free cash flow. This decision reflects our focus to prudent capital management as we look forward to achieving a significantly improved performance in the latter half of the year.

2024 Outlook

As a company headquartered in South Africa, we are pleased to see that the recent South African elections concluded with a sense of optimism for economic growth and stability. The markets responded positively, reflecting an improved investor confidence and a general positive sentiment.

The performance of our underlying businesses remains strong and our Group performance outlook for the full year 2024 remains positive supported by:

• A stronger second half expected at AECI Mining and AECI Chemicals following investments made during the first half, market share gains and new contracts

•  Continued momentum in the delivery of our strategic initiatives

Our focus on building a resilient business, leveraging our diverse footprint and commodity portfolio, for the future as well as the globalisation of our mining and chemicals businesses will continue to create value for our stakeholders, positioning us for future growth and success.

About AECI

AECI is a diversified chemicals solutions company employing 7 189 people at more than 100 sites. We have a presence in 22 countries on six continents. Founded in 1896 to service South Africa's burgeoning gold and diamond mining industries, the company was formally established in 1924. AECI was listed on the Johannesburg Stock Exchange in 1966. A mainstay of the economy in South Africa, over the years we have expanded our presence and evolved our product and service offering to a broad base of customers. Our core products and services include mine-to-mineral solutions; water treatment solutions; chemical raw materials and related services; crop protection products and plant nutrients; as well as property leasing and the provision of utilities. Our operating businesses are structured into three operating business segments – AECI Mining, AECI Chemicals and AECI Managed Businesses.

For more information, please contact:

Zanele Salman
VP: Investor Relations
zanele.salman@aeciworld.com
AECIInvestorRelations@aeciworld.com
groupcommunications@aeciworld.com

This strategic move aligns with our recently announced strategy, to streamline operations and focus on our core competencies, ensuring continuous growth and value creation for our stakeholders. Nutreco is recognised worldwide for its commitment to excellence and innovation, making it the right home for the Animal Health business and our people.

Holger Riemensperger, Group CEO of AECI, commented, "We are pleased to have found a partner that shares our vision and values in Nutreco. This transaction represents a significant milestone in our journey, and we are confident that the Animal Health business will thrive under Nutreco's leadership."

The transaction is subject to customary closing conditions, including regulatory approvals and the satisfaction of other agreed-upon terms. We anticipate the transaction to close in four to six months.

We remain focused on the successful execution of our strategy. This transaction affords us the opportunity to concentrate our efforts and resources to achieve our ambition to double profitability of the core business (Mining and Chemicals) by 2026 and attain a global market position in Mining of number 3 by 2030.

We extend our sincere thanks to all employees, customers, suppliers and partners for their dedication and support. We look forward to a seamless transition and continued collaboration with Nutreco in the future.

For more information, please contact:

Zanele Salman
VP: Investor Relations zanele.salman@aeciworld.com
groupcommunications@aeciworld.com
AECIInvestorRelations@aeciworld.com

About AECI

AECI is a diversified chemicals solutions company employing 7 168 people at more than 100 sites. We have a presence in 22 countries on six continents. Founded in 1896 to service South Africa’s burgeoning gold and diamond mining industries, the company was formally established in 1924. AECI was listed on the Johannesburg Stock Exchange in 1966. A mainstay of the economy in South Africa, over the years we have expanded our presence and evolved our product and service offering to a broad base of customers. Our products and services include, mine-to-mineral solutions, water treatment solutions, chemical raw materials and related services, asphalt and bitumen for road construction, food and beverage ingredients and commodities, vitamin and mineral animal feed premixes, crop protection products and plant nutrients as well as property leasing and provision of utilities. Our operating businesses are structured into four key operating business segments – AECI Mining, AECI Water, AECI Agri Health and AECI Chemicals.

Forward-Looking Statements

This media release contains forward-looking statements, including but not limited to statements regarding the anticipated closing of the transaction and future performance of AECI. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from those anticipated due to various factors.

AECI website: www.aeciworld.com

Nutreco website: www.nutreco.com

End of Statement

Key financial indicators

• Revenue up 5.4% to R37 500 million

• EBITDA up 3.2% to R3 683 million

•   EBIT up 25.6% to R2 571 million

•   HEPS down 11.7% to 1 137 cents

• EPS up 26.7% to 1 112 cents

•   Cash generated from operations up 4.3% to R4 004 million

• Working capital at 15% of revenue, down from 19% in 2022

• Gearing at 35%, down from 45% in 2022

• Final cash dividend down 79% to 119 cents per share in line with the new dividend policy

Johannesburg, 28th February, 2024 - AECI proudly unveils strong financial results for the financial year ended 31 December 2023. Revenue increased to R37 500 million, a 5.4% increase from the R35 583 million recorded in the prior year ending 31 December 2022. Notably, EBIT reached R2 571 million, reflecting a 25.6% increase compared to the prior year's R2 047 million. 

In early in 2023, we unfortunately and regrettably had two work-related fatalities, we wish to convey our sincere condolences to the family, friends and colleagues. As a Group our primary objective remains Zero Harm.

In terms of our ESG goals, we had a progressive year towards achieving these goals with our scope 1 and 2 emissions, water consumption and water discharge elements decreasing. We are proud that our Board and Executive Committee female representation has exceeded the 40% target.

Aligned with our steadfast strategy of fortifying a resilient balance sheet, net gearing ratio significantly improved to 35%, down from 45% as of 31 December 2022, and firmly within our communicated guidance range of 20% to 40%. Furthermore, our net debt saw a substantial reduction to R4 338 million (from R5 345 million in 2022), propelled by the high interest rate environment and stringent management of net working capital.

In a year of transition and within an operating environment characterised by high inflation and interest rates, logistical challenges within supply chains and declining commodity prices; AECI's performance stood strong. This resilience was particularly evident within AECI Mining, our core business and primary growth driver.

"It is immensely gratifying that, as we celebrate a century of unwavering dedication and pioneering excellence, we continue to deliver positive results, in spite of the prevailing challenging environment. The encouraging performance, driven by our core business of AECI Mining, underscores our strategic decisions," said Group CEO Holger Riemensperger.

Further reduction in net debt, coupled with rigorous management of net working capital, remain focal points for the executive leadership and the Board. Operational and strategic endeavours are underway to fortify our balance sheet, ensuring a solid foundation for the future.

AECI Mining’s revenue increased by 8.4%, reaching R19 621 million, with an all-time record EBIT of R2 060 million, an 18% jump from 2022. Market share gains from new contracts internationally, propelled this growth. Revenue contribution from outside South Africa increased to 69% from 64% in 2022.

AECI Chemicals, our South Africa-focused business, recorded a mixed bag of results with revenue of R8 159 million, down 4% from 2022. EBIT decreased by 8% to R515 million. Free cashflow significantly improved to R469 million from R113 million in 2022 underscoring the strong cash generation of the business, supporting the group numbers.

AECI Agri Health recorded revenue of R7 619 million, up 8% from 2022. EBIT loss of R192 million (2022: R297 million) was negatively impacted by losses in AECI Schirm coupled with the South African market downturn and once-off costs.

AECI Water's revenue remained steady at R2 009 million despite challenges in the public water business. Once off costs incurred reduced EBIT to R139 million (2022: R212 million).

"We are committed to the successful implementation of the necessary operational and structural changes to execute our strategy and achieve our strategic targets. We are delighted with AECI Mining’s performance in the past year. We are on a good trajectory to achieve the Groups 2026 targets," concludes Riemensperger.

1. Earnings before interest and taxation is defined as profit before interest, taxation and share of profit of equity-accounted investees, net of taxation

1. Earnings before interest, taxation, depreciation and amortisation calculated as profit from operations and equity-accounted investees plus depreciation, amortisation and impairments.

EBITDA is unaudited.

The main highlight in the year was the excellent safety performance, reflected in a Total Recordable Incident Rate (TRIR) of 0.15. This is the lowest TRIR since AECI commenced measuring this metric. The Group is also on track to reach all its published 2025 sustainability targets.

The upward strong performance was made possible by delivery in line with a solid growth strategy across the Group’s businesses.

AECI Mining achieved a record performance by growing revenue by 51%, attributed to strong market share gains, export growth in mining chemicals and increased chemical commodity prices. 67% of the businesses’ total revenue was generated outside of South Africa.

AECI Chemicals, AECI Water and AECI Agri Health grew revenue by 32%, 31% and 17% respectively. Similarly, the increased revenue performance was directly attributed to delivery against a more focused strategy and improved sales volumes.

Proactive actions taken by the Group to ensure security of supply to the market, following supply chain challenges, and high raw material prices during the period resulted in elevated levels of working capital. Inventory increased to R6 780 million (2021: R4880 million), matched by an increase of R1 985 million (2021: R446 million) in short-term debt.

The AECI Schirm Germany business recorded an operating loss of R228 million which triggered a right-of-use asset and PPE impairment of R445 million. The Board-approved comprehensive turnaround project is expected to deliver commercial recovery including clearly defined milestones as well as details associated with the required once off costs. Notably, high priority actions have been taken and we expect once-off costs to impact 2023 earnings. The Board expects positive earnings contribution within 20 to 36 months.

AECI Much Asphalt delivered a markedly better performance, increasing revenue by 37% and EBIT by 21% from 2021’s result.

The initial vesting period of the AECI Employees Share Trust (EST) was extended by 12 months by the Board to 9 February 2023. An additional dividend of 50.5 cents per share was paid to beneficiaries on 28 September 2022. As at the extended vesting date, the share scheme was not value accretive to beneficiaries and will therefore be wound up. The Group remains committed to driving the Group’s B-BBEE ownership goals.

Following the appointment of the new Group Chief Executive, Holger Riemensperger who will join AECI on 1 May 2023 the Group’s leadership remains highly energised and focused on optimising existing operations in 2023 and beyond.

AECI Schirm USA is a leading contract manufacturer for the crop protection industry. A well-established site in Ennis, Texas logistically services the Southwest and a newly acquired site in Benton, Illinois logistically services the Midwest, which is widely regarded as “America’s breadbasket” because of the large volumes of corn, soybeans and wheat that are farmed there. After repeated enquiries from customers who sell globally (including the USA as a whole), AECI Schirm USA acquired the site in Benton, Illinois as an existing industrial facility from Bio Fuels by American Farmers & Veterans for US$2,3 million in 2021.

The two strategic growth projects, which are scheduled for completion before the end of 2022, are:

1.  ENNIS – PRODUCTION CAPACITY EXPANSION

Four new plants will be constructed, including one herbicide Suspension Concentrate (SC) plant, one insecticide Emulsifier Concentrate (EC) plant and two insecticide SC plants. (An EC plant produces liquid crop protection products where a liquid or solid active ingredient is dissolved in solvent with emulsifiers, whereas an SC plant produces liquid crop protection products where a solid active ingredient is dissolved in water. ECs are one of the most common formulation types for crop protection products worldwide and SCs are growing in popularity due to benefits such as absence of dust, ease of use and effectiveness.)

2.  BENTON – PRODUCTION CAPACITY EXPANSION

Two new herbicide plants will be constructed, including one EC plant and one SC plant.

According to research by Fortune Business Insights and Grandview Research respectively, the global crop protection chemicals market is projected to grow from US$59,41 billion in 2021 to US$81,74 billion in 2028 at a compound annual growth rate (CAGR) of 4,66% and the US crop protection chemicals market is projected to grow at a CAGR of 3,8% for the next five years, with herbicides being the main contributor. There is also an increase in the number of farmers who are choosing cost-effective generics, and growth in this category is likely to surpass the market averages. AECI Schirm USA is a trusted supplier of generics and well-positioned to grow from this emerging trend.

“The USA is a major player in the global agriculture industry with over 913 million acres of cultivable land and natural farmland,” says Mark Dytor, AECI’s Chief Executive. “To ensure project success and reduce risk, we are investing in partnership with AECI Schirm USA’s strategic customers who are committed to shared growth in the long-term, which is the essence of AECI’s customer-centricity approach globally.

“These two strategic projects will strengthen AECI’s infrastructure base in the USA, particularly in terms of manufacturing and warehousing as well as managerial capacity, and support diversification of the geographical footprint for other Group businesses. Already in the USA, AECI Plant Health has 31 product registrations and AECI Specialty Chemicals has Henry® Company approval for bitumen emulsifiers. All this is in line with the Group’s strategy to continue expanding its global footprint and grow hard currency earnings.”

AECI is not new to the USA. The Group has wholly-owned AECI SANS Fibers, a leading producer of fibres and yarns for nylon and polyester sewing threads, in Stoneville, North Carolina since 2007. In addition, AECI has been a strategic investor in Origin Materials, the world’s leading carbon-negative materials company, in West Sacramento, California since 2017. In terms of the joint development agreement between the two companies, which was broadened in 2021, Origin Materials will supply AECI SANS Fibers with carbon-negative PET and next-generation polymers to be used in a wide range of end products in the future. This will increase the opportunity for new business from sustainable resources in the USA and beyond.

Issued by:

Lauren Winchester
T 010 823 2209 | C 083 421 9683
E lauren@epiphanybrandagency.co.za

For and on behalf of:

Fulvia Putero
T 011 806 8797 | C 082 800 3703
E fulvia.putero@aeciworld.com

“In the same way that it takes a village to raise a child, it takes a village to raise a business.”

Mishack Mthethwa 

Group Manager: Strategic Sourcing and Enterprise and Supplier Development, AECI 

“This is why we go beyond B-BBEE compliance, box-ticking and point-scoring to create a dynamic ecosystem that includes external partners and internal specialists committed to growing Small, Medium and Micro Enterprises (SMMEs) with the potential to grow our business and South Africa’s economy in the future. Since research clearly shows that SMMEs require finance, market access, marketing and new business development, our ESD programmes are powered by sector-specific enabling ecosystems through the R30 million AECI ‘Good Chemistry’ Fund. A case in point is the work we are doing in the agricultural sector where we have a long, proud history.” 

AECI Agri Health generated 25% of the Group’s total revenue in 2020. It is a key strategic growth pillar and it has played a pivotal role in a three-year pilot project.  This project provided the catalyst and framework to embark on an Emerging Farmers Support and Development Programme. The enabling ecosystem includes: 

AECI Agri Health 

Agricultural skills development and 

advisory services 

AECI ‘Good Chemistry’ Fund

Finance 

IDF Capital

Fund managers

Khula! App

Market access

LEAP

Sustainable business development and growth enablement 

Since the inception of the pilot project and programme, some of the lessons learnt are the need for financial reporting, fortnightly monitoring of the expected harvest output, technical assistance and technology. 

AECI and IDF Capital work closely together to:

• Assess the commercial viability of projects 

• Design transaction structures 

• Evaluate funding instruments and their pricing 

• Facilitate due diligence investigations 

• Negotiate terms on behalf of farmers with funders and off-takers 

• Prepare and review legal agreements 

At the same time, AECI partners with LEAP, an organisation with extensive experience and know-how in growing SMMEs, and the Khula! app in which AECI recently acquired an equity investment. 

On the Khula! Fresh Produce Marketplace App, emerging farmers sell their produce in bulk; and on the Khula! Inputs App, emerging farmers buy products and services. 

Today, three emerging farmers are on the programme, namely Farmers Hope, HempVest and Ithuba. Together, they employ at least 21 permanent employees and 110 seasonal workers across 3 042 hectares (Ha) in Gauteng, Mpumalanga and North West. 

Agriculture is critically important to growing the economy. 

The Africa Institute for Policy Analysis (AIPA) says that the agricultural sector is an engine for development and growth because of the downstream and upstream linkages between agriculture and the secondary and tertiary sectors. Agriculture supplies these sectors with raw materials and, in turn, provides a market for goods and services. AIPA estimates that a 1% contribution by agriculture to GDP produces a 2% increase in the country’s growth, and an investment of R1 million in agriculture generates twice as many jobs as an equivalent investment in the manufacturing sector. 

According to Statistics South Africa, agriculture was the only positive contributor to the economy in Q2 2020, growing by 15,1%. In Q3 2020, it grew by 18,5% representing a value of R79,4 billion. 

The South African government believes that the key to food security lies in investing in emerging farmers and has committed R1,2 billion to support 150 000 smallholder and subsistence farmers. 

“In AECI’s 2020 Sustainability Report, we detailed the alignment of our strategy to carefully selected United Nations Sustainable Development Goals (SDGs), most notably in the ESD context “Decent work and economic growth” and “Partnerships for the goals”. Our Emerging Farmers Programme emboldens our commitment to “Zero hunger” and “Responsible consumption and production”,” explains Mishack. 

“It is clear that there will be a growing market for AECI in the future. But, the ultimate success of the Emerging Farmers Programme will lie in the contributions and strengths of the entrepreneurs and partners, and the effectiveness of their collaboration.” 

Meet the farmers

Farmers Hope

Founded by Tebogo Nyathela in 2016, the 20Ha farm in North West specialises in crops (cabbages, garlic, peppers and spinach) and poultry (chickens and eggs). There are five permanent employees and seven seasonal workers. Three more seasonal workers are employed in peak seasons. 

With a background in corporate affairs and marketing, Tebogo learnt farming literally from the ground up, completing a number of learning programmes at the Agricultural Research Council in Roodeplaat, Tshwane. She registered and started the business with her own money, taking over the “Permission to Occupy” agreement with the local authority before clearing the area of bush, fencing 5Ha and installing a borehole, an irrigation system and electricity. 

In April 2021, the AECI ‘Good Chemistry’ Fund approved a loan facility of R880 000 including a technical assistance grant of
R80 000 for drilling a second borehole. LEAP provides ongoing business support and mentorship. 

HempVest 

Founded by Zunaid Mayet and Zaid Mohidin in 2019, the 22Ha farm in Gauteng specialises in crops (broccoli, cucumbers, lettuce, peppers and tomatoes) and low/no THC cannabis. (THC is tetrahydrocannabinol, the main psychoactive compound in cannabis.) There are 10 permanent employees and 50 seasonal workers. Thirty more seasonal workers are employed at peak times. 

Cannabis farming is fairly new to South Africa and legislation is changing. The expectation, though, is that the industry will grow to R107 billion by 2025. HempVest’s vision is to become a leading, vertically integrated cannabis business, distributing a range of CBD products in South Africa, the rest of the continent and beyond. (CBD is cannabidiol, the second most prevalent active ingredient in cannabis.) 

Operating under a lease-to-buy agreement, HempVest set up the necessary greenhouse, nursery and security infrastructure as well as the required operating processes and procedures. 

In June 2021, the AECI ‘Good Chemistry’ Fund approved a convertible loan facility of R2,65 million for a processing facility, farming equipment, land preparation and working capital. Also included is a technical assistance grant of R265 000 for Global G.A.P. certification, software licences and training (Global G.A.P. is the most widely accepted private sector food safety certification). 

Ithuba 

This cooperative comprises six members who have worked together for more than 10 years. The 3 000Ha farm is in Mpumalanga. Twenty seasonal workers are employed in peak seasons. 

Ithuba rotates two crops (maize and soya beans) for sale to local grain silos. There is also livestock (cows and sheep) for sale to three feedlots. 

The AECI ‘Good Chemistry’ Fund recently approved a short-term facility of R600 000 for working capital. Further support could be forthcoming depending on the success of the season. 

The requirements to qualify for AECI’s Emerging Farmers Support and Development Programme are: 

• 51% (minimum) Black ownership

• 51% (minimum) Black employees

• Land access/tenure

• Agricultural experience

• Openness to mentorship and other support, such as soil testing

• Commitment to meeting performance targets

The DGPS enables faster blast deployment, greater accuracy and increased efficiency. 

The benefits are fourfold: 

1. Potential human error from incorrect blast hole identification or incorrect delay assignment can be a thing of the past. The timing process is predisposed to human error, with incorrectly marked blast holes resulting in incorrect delay assignment. The process of identifying the location of the unconnected hole is time-consuming, while incorrect timing may compromise fragmentation and therefore downstream operations.  

2. The DGPS is capable of achieving location accuracy within less than a metre. The design mitigates signal degradation for a high level of precision. 

3. Increased safety, through the system’s ability to protect against human error, is also a major value addition. Blast hole coordinates, along with the respective detonator delays, are downloaded onto the tagger to prevent the user from incorrect delay assignments on the bench. The response to blast hole location and fault-finding are made faster, safer and simpler. Additionally, the tagging process does not need to follow a specific tagging path. 

4. Another key value proposition is data availability, allowing for reconciliation of planned versus actual blast holes, enabling continuous improvement. 

The DGPS will assist in bringing large-scale mining into the digital era and supports new blasting techniques and mining methods to increase productivity and reduce blasting costs. Mining customers will reap quantifiable benefits on their surface operations, including better ore recovery, high levels of safety and improved operational flexibility, all of which are necessary parameters in their quest to operate sustainably. 

“Since customer-centricity is a key focus, we decided to bring distribution back in-house,” said Carlo de Candia, Operations Manager: AECI Food & Beverage. “This gives us better control because we can manage and troubleshoot services on a daily basis. It also gives us the opportunity to assist with urgent deliveries and orders. It is a management change that will see customers receive even better levels of service than in the past.”

A stone’s throw away from AECI Food & Beverage’s head office, the facility is in the care of Warehouse Manager, Shalandra Lakhan. A cold room and walk-in freezer will be installed early in 2022 to cater for dairy cultures and 60 mobile freezers which run at -45^oC are also being moved there.

The warehouse is part of the business’ ISO 22000 Food Safety Certification process and has been issued with a R638 Certificate, governing general hygiene requirements for food premises. It is an impressive 5 963m² and has space for 4 800 pallets.

Bitumen is the glue that holds the whole asphalt mix together. It aids in compaction during the paving process and provides durability and stiffness. 

At the heart of the programme is Origin Materials’ patented technology which turns inexpensive, sustainable wood residues into carbon-negative, cost-advantaged materials. It reduces the need for fossil fuels and provides stable pricing largely decoupled from the volatile petroleum supply chain. 

Herman Marais, Plant Manager and Technical Director: AECI Much Asphalt, said that this programme is significant due to the vital role of bitumen in asphalt production. “As the binder, it influences the long-term performance of asphalt.

“Bitumen has a high carbon footprint. Turning carbon neutral feedstock into an alternative binder therefore makes environmental sense.” 

AECI Much Asphalt already includes up to 40% reclaimed asphalt in its products. This has resulted in not mining more than a million tonnes of aggregate and not refining approximately 53 500 tonnes of bitumen since 2012. 

“At the same time, the alternative binder is also an opportunity to ensure sustainability in the South African asphalt and bitumen market. With the closing of the Engen refinery and recurrent production challenges experienced by other local refineries, South Africa has become a net importer of bitumen over the past year,” added Herman. 

AECI is a strategic investor in Origin Materials, the world’s leading carbon negative materials company. 

In response to the ongoing bitumen shortage in South Africa, AECI SprayPave is now able to offer the asphalt industry scarce 10/20 penetration grade bitumen. 

10/20 bitumen is commonly used in the production of high modulus asphalt (EME) which is well suited to high trafficked roads likely to suffer significant fatigue and stress. While the demand for EME incorporating 10/20 penetration grade bitumen is growing in South Africa, it is anticipated to increase exponentially when the major N3 freeway contracts are awarded. 

Currently, this grade of bitumen is only supplied by one South African refinery. Other local refineries have been unable to produce 10/20 bitumen due to higher demand for other “normal” grades and difficulty in meeting the required specifications. Unforeseen breakdowns and scheduled shutdowns at refineries add to the problem. 

AECI SprayPave acquired a multistage bitumen converter from Technix Industries in New Zealand, only the second to be commissioned worldwide. The technology enables the business to convert the feedstock bitumen that is available locally to grades that are both lower in penetration and higher in softening point. This can be done predictably and repeatedly. Throughput of 30 tonnes to 60 tonnes per day can be achieved when converting from conventional 70/100 to 10/20. 

A professional society for scientists and other individuals in the cosmetics and allied industries, COSCHEM provides education and training to members. It is based in Johannesburg and is affiliated to the International Federation of Societies of Cosmetic Chemists. A two-year Diploma in Cosmetic Science is available to students across South Africa and is an industry-recognised qualification. 

Charmaine is enthusiastic about her role as the Society’s President. “We are a family that learns together and grows together,” she says. “Since the start of the COVID-19 pandemic in 2020, we have changed the way we do things, connecting virtually for the most part. As an example, we hosted this year’s two-day conference virtually for the first time.” 

Some of the interesting topics covered were:

• 48-hour hydration

• Corn-derived bio polymer in hair-styling

• Fighting digital aging – blue light protection

• Natural ingredients and raw materials

• Next generation green dandruff control

• Reducing eczema using succulents

• Sun care and tanning

Charmaine Du Preez 

Product Manager: Personal Care and Homecare 

An R&D Chemist and Packaging Engineer with Diplomas in Cosmetic Science and Packaging Engineering, she also studied Beauty Technology and Production Management at the Tshwane University of Technology. She has 22 years’ experience in the industry and is a qualified Zumba fitness instructor! 

Jacques Strydom

Technical Manager: Personal Care and Homecare 

Jacques completed his degree in Chemical Engineering at the University of Stellenbosch where he focused on Microbiological Engineering in the field of biofuels, studying microalgae conversion to biodiesel and starch conversion to bio-ethanol. His career took a turn when he started working as an R&D Manager at an FMCG manufacturing company in Cape Town in 2016. Other than his professional aspirations in science, Jacques loves creating art, music, photography and woodwork.

AECI Much Asphalt has supplied several road projects with asphalt mixes containing Ground Tyre Rubber (GTR) in the past year, notably to customers in eMalahleni, Mpumalanga and the Western Cape. The increased attraction of this more sustainable solution has also led AECI SprayPave to manufacture binder containing GTR in-house, using technology that adds significantly to the binder’s shelf life and lowers energy costs. 

GTR enables the use of more binder in the asphalt without the risk of bleeding or excessive deformation due to mix viscosity. Increasing the amount of binder provides longer lifespans for roads and lower rolling noise on the asphalt surface. 

While this technology is not new to South Africa, it is making paving mixes containing waste tyre rubber increasingly popular. 

HOW GTR WORKS IN THE ASPHALT PRODUCTION PROCESS

In the wet process, there is between 18% and 22% GTR in the binder, which constitutes between 5,5% and 7% of the mix. While this does not seem like much, the GTR quantity increases exponentially with the large volumes of asphalt produced for major road surfacing projects. 

In the hot mix process, GTR requires production of the binder on-site as its use is time sensitive. Blenders, digestion and header tanks and feeder pumps are required. 

In the warm mix process, the binder does not have to be mixed on site and can be hauled to the asphalt production plant and utilised without the need for additional equipment. Warm mix asphalt has the added advantage of a lower energy requirement, translating into less environmental impact.  

In 2020, AECI SprayPave commissioned a new mobile blending unit with the capability to produce bitumen at a rate of 25 tonnes per hour, incorporating 25% GTR. It is using between 50 tonnes and 150 tonnes of GTR per month depending on orders for Extended Bitumen Rubber (EBR). EBR blends are produced on a “to order” basis and a significant increase in demand has been noted in the second half of 2021. 

The advantages of EBR are:

• Longer shelf life 

• Long-lasting, maintenance-free and moisture-resistant roads 

• Lower spray temperatures 

• Reduced carbon footprint, energy consumption and emissions

• Reduced viscosity and longer workability (than conventional GTR mixes)

“Knowledge is power and we can only act on what we can measure,” explained Dean Mulqueeny, Group Executive: AECI Water. “We now have the ability to know the exact make-up of discharge wastewater at a speed and level of precision that was previously unobtainable.” 

In the past, municipalities and water treatment plants relied on static laboratory testing and time-consuming manual data processing. Potentially, this meant that problems could go undetected for hours or even days. Other facilities use portable devices but some sensors are not sensitive enough to collect the precise data needed for effective action in real time. In addition, fragmented data, constant calibration concerns, handheld probes and other manual processes add to frustration and inefficiency. 

“Organisations that embrace online real-time monitoring avoid static laboratory testing, eliminate unnecessary calibration and cleaning, minimise controls, optimise chemical feeds and reduce the cost of raw materials,” said Dean. “At the same time, they support emergency response requirements, reduce the risk of polluting the environment, secure compliance and facilitate adherence to ethical and moral business conduct.” 

The skid is fitted with 14 solar panels to provide 46 hours of back-up power and air conditioning to keep the electronics cool. 

AECI Water and the Zambia Environmental Management Agency are in the process of deploying these skids to monitor effluent discharge streams in the country. This will ensure adherence to discharge wastewater regulations for pH, Total Dissolved Solids, Total Suspended Solids and Turbidity. 

KPC commenced coal production in 1992. Today, it moves approximately 500 million bank cubic metres of overburden per year and produces 60Mt of coal. About 80% of the overburden requires drilling and blasting to enable excavation. (A bank cubic metre is the volume of the original rock in situ prior to blasting and excavation.)

Traditionally, the mine has used conventional non-electric initiation in its CMD area, where AECI Mining Explosives has been contracted as the blasting services provider since 2009. This method required a lead-in-line to be run from the blast location to the firing position. In 2017, this method consumed approximately 650 metres of lead-in-line per blast location. At the same time, high daily production targets set by KPC required multiple locations from where blasts could be initiated safely. This sometimes called for clever footwork, particularly in terms of moving expensive capital equipment, and resulted in the loss of production time.

AECI Mining Explosives suggested IntelliShot^® as an alternative because it has the capability to initiate systems wirelessly (known as remote firing).

The AECI Mining Explosives team in Indonesia embarked on a carefully controlled trial to test the applicability of the system and to ensure that KPC got the full benefits.

Much-needed efficiencies were achieved by using a much shorter length of harness wire (100 metres versus 650 metres). The cost of blast initiation reduced by over 50%. Most importantly, the safety-related benefits were significant:

• An advanced security system

• The possibility to easily initiate the blast from longer and safer distances

• The blaster is able to fire from locations that give greater visual security of the blast area during firing

• “Snap, slap and shoot” is eliminated (“snap, slap and shoot” is possible when signal tube detonator plastic tubing is stretched to snapping point. When the plastic tubing recoils after snapping, it can initiate the thin layer of high explosives contained in the plastic tube and cause the detonator to fire or shoot.) 

Yuli Prihartono, Drill & Blast Manager: KPC said that throughout the trial project, AECI demonstrated its capability to deliver an efficient and safe solution to KPC’s world-class operations. “Remote firing has successfully delivered quantifiable cost benefits among others. We expect to expand this initiative by introducing remote firing to all blast locations at CMD KPC.” 

Digital twin 

A digital twin is a virtual representation that serves as the real-time digital counterpart of a physical object or process. The first practical definition of a digital twin originated from NASA as long ago as 2010. 

At AECI Mining, a digital twin is a digital duplication of a production facility (assets, equipment, structures, whole mining sites etc.). Guided by actual/measured operational conditions or constraints, scenarios are simulated to better understand changes made to the process.   

Blast design

Blast design includes the disparate data generated by multiple capturing software programmes in a single repository. The objective is continuous improvement in business intelligence, field applications and operational transparency.

BlastHub™ is a portal that provides predictive software tools to assist with identifying and eliminating inefficiencies in the design process. The vision is to get a closed Performance and Development Review loop, linking products to performance via the cloud.

Smart MMUs

AECI Mining Explosives’ smart MMU is a standard bulk explosives delivery vehicle capable of wireless data communication, including GPS positioning of blast holes

This MMU technology allows for delivery of explosives in hazardous environments through application of computer controlled and propelled delivery systems. It also offers advanced loading capabilities

VR

Another digital technology gaining prominence is VR, a simulated experience that can be similar to, or completely different from, the real world. In partnership with the University of Pretoria, AECI Mining Explosives established a VR Centre at the Department of Mining Engineering. The Centre provides VR training material through consequence training and instructional design. One of the benefits of VR training is that it can be scaled quickly to improve operational efficiencies.

Digital classroom 

Speaking of training, the digital classroom leverages the power of VR to deliver quality training to front-end employees. An example is IntelliShot^® e-learning and VR training.

Automated supply chain

AECI Mining Explosives’ supply chain focuses on a single web-based exchange portal to facilitate mobile Proof of Delivery solutions, real-time material flow, silo monitoring and transport management to enable the three-way match of purchase orders, delivery notes and invoices. It also includes “track and trace” on a global scale. 

The disposal of waste oil is often difficult and problematic on mines and incorrect disposal can lead to severe ground and water contamination. 

The good news is that AECI Mining Chemicals already has extensive experience in the field of waste oil collection and storage. Once certain steps have been followed and the appropriate quality control checks have been completed, the waste oil can be incorporated safely into the emulsion/fuel phase. 

AECI Mining Chemicals has the capability to design an appropriate emulsifier to work with the quality, quantity and type of waste oil available. 

The outcome is reduced cost in the final emulsion/fuel phase, savings in waste disposal due to the replacement of clean virgin solvents with recycled product, and a reduction in the mine’s environmental footprint.