c o m p a n y n e w s

p r o f i l e

THE NEWSLETTER OF ADP PROJECTS No. 02 November 2011

r o j e c t sr o j e c t s

ADP geared up for Lesotho Letšeng Mine Expansion!

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ADP was appointed to execute a PFS for the Letšeng Mine Expansion (Project Kholo) and a final decision was taken to proceed with a single “go forward” option, referred to as Option 3, that will increase overall plant processing capability to 10mtpa with provision to utilize No. 1 Plant for bulk sampling. A further decision was made to advance the engineering to PFS level and include in the Kholo Project scope the management of outsourced infrastructure, waste, water management, bulk power, security review and upgrade of No 2 plant.

ADP were requested by Gem and Letšeng to prepare a proposal for the Gem Board that can be used for the appointment of ADP to undertake this work. Fundamental to the proposal is our thorough understanding of Project Kholo through this ongoing feasibility study and the fact that ADP has already mobilized an extremely experienced, full implementation team in preparation for potential project green light in November 2011.

Letšeng Project KholoADP Projects is focused on ensuring that EPCM services will be undertaken in a thorough and professional manner with skills and resources suited to EPCM project

This business of doing projects is simple, don't you agree? What could be simpler than to set out a series of activities to build a mine or construct a process plant? Any half wit can do that so what's the trick?

This reminds me of the standard of my golf game. Now this is a game that I am passionate about. So why do I play it like I have got 12 fingers and 20 toes? My recent scores if converted to Rands and Cents could make me a millionaire ,maybe not quite ,but you know what I mean. Because playing golf is so simple I went to a golf professional just in case I was missing some small point. Unlikely, but you never can tell. Imagine my surprise when he started to show me what I should be doing. It was like a totally new game!

Lesson number one: correct swing. When you swing your club you should end up with your belt buckle facing the hole. That was a

“I have seen the enemy and it is us.”“One of the early projects that I managed was a

complete success and also a total failure!”Dudley Fraser - The Old Toppie

surprise. Maybe if I tried that I would hit the ball further and more consistently. I would be using the rotation on my body to generate distance instead of trying to hit the cover off the ball! Ha, makes sense. So I tried it, and it works! This comes back to my favorite management saying . “I have seen the enemy and it is us.”

In our project management careers we can sometimes use a professional to help us improve our distance when we play. This is known as mentoring . I turned 75 years old and as you all know age is just a number . I have been managing projects for thirty two years and every so often I need to go back to basics to improve my swing!

One of the early projects that I managed was a complete success and also a total failure! It was the building of a factory to manufacture cans for the fishing industry in Walvis Bay. At that time there were five fish canning factories and the fishing season was very short - no longer than 16 weeks. This meant that the can-making plant had to be spotless and ready for the first day of the season and had to run flat out for the season.

We had constructed the fish can making factory within the set time limit and every corner of every warehouse that we could lay our hands on was full of empty cans waiting to be filled. We had also done this within the budget of R16 million!!

The trawlers went on day one and came back empty. No Fish! This continued for the entire season. We closed down the factory and sold the equipment. All the staff integrated into existing factories and no one has made a single fish can in Walvis Bay since. This was a project that was a complete success and yet a total failure!

If you are in need of mentoring on any aspect of the management of projects please ask and I will try and help.

I am originally a Vaalie. I grew up in Vereeniging on the banks of the Vaal river, in the old Transvaal, and matriculated from Riverside High School in 1985. After high school I received a personal letter of invitation from General Magnus Malan, asking me nicely to come and join him in the army for two years, so off I went to answer my 'call up' and ended up in Kimberley, in 1 Maintenance Unit. I was fortunate enough to be selected for officer's training in Pretoria and completed my second year as a logistics officer in Special Forces at Voortrekkerhoogte.

During that time I received a study bursary from the Union Steel Corporation or Usco, - as it was known then - to study Mechanical Engineering, and started at Tukkies in Pretoria directly after my 'uitklaar'. I spent my vacation breaks at Usco working in the steel mills in Vereeniging, and in apprentice school with the other 'appies', as

“To this day, I find steel mills one of the most wonderfully complex, magical and

dirty places on earth”Vincent Ellerbeck

was the practice at that time with vacation students. After 'varsity I found out that Iscor had in the meantime bought out Usco, and that I was now an employee of Iscor, so off I went to Vanderbijlpark, to the biggest integrated steel mill in the country at the time, where I spent six years as a plant maintenance engineer learning all about blast furnaces, basic oxygen furnaces, DC and AC furnaces, coke ovens, hot rolling and other stuff. To this day, I find steel mills one of the most wonderfully complex, magical and dirty places on earth, where you can witness the fiery process of transforming iron ore into high grade steel products. Pure magic!

I have always had a love for design, and during my time at Iscor I was also able to further my studies at Tuks with an honours degree in structural mechanics and finite element analysis. I also had my first taste of project work at Iscor, where I was given the opportunity as mechanical design engineer on the Ifcon project, responsible for the mechanical design of a secondary metallurgy induction furnace.

From the Ifcon project, I moved over into the EPCM environment, where I have spent the greater part of the past thirteen years on various projects at Hatch, Bateman, Atec, Minproc and WorleyParsons in roles varying from mechanical package engineer to project engineer to engineering manager. During this time I have had the privilege of exposure to various commodities such as copper and cobalt, diamonds, uranium, PGMs, iron ore, coal, hydrocarbons and power.

On the personal front, I am married to Ceris whom I have known since primary school, we have three beautiful children Alison 16, William 14 and Rebecca 12. My hobbies are reading, camping and enjoying the outdoors, playing guitar and piano.

In all, I can only say that I have been blessed with an exciting and interesting career and I look forward to forming part of the team at ADP.

“From the MD’s desk...”

Andrew Jakins

I have received much positive feedback of our first newsletter and thank all that have contributed thus far.

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work as distinct from lump sum or small project execution typically undertaken by the Marine and Modular company. Critical to the success of ADP is a strong management team with appropriate experience.

EngineeringADP has appointed a team, led by Ron Swart, and has upgraded the drawing office design system to utilize the latest suite of Auto Cad 3D Inventor software. This will greatly reduce engineering risk and design time and allow accurate material take off's to be generated in real time for estimating and forecasting purposes.

Ron and his team have begun to knit together well and have progressed the Letšeng study beyond PFS level. The team has developed an excellent life of mine concept (including a world class process design) that will become a benchmark for ADP's major projects for many years to come. An interim data pack has been submitted that will be used by the Letšeng and Gem boards to decide on whether to proceed with implementation. If it proceeds we will probably move into a fast track detailed engineering and execution phase from December this year with a ‘hold” point end of April 2012 (official end of feasibility milestone). ADP have pre-empted that it will proceed and have employed a highly experienced contracts engineer (Muller Grobbelaar - ex Hatch) to join the team from January 2012 to assist Ben de Wet in managing approx R1 billion worth of contracts. Sarel van Niekerk will report directly to Ron.

Sarel Rossouw and his team have completed the MTTP feasibility which has been voted for detailed engineering (to April 2012). The team have produced a world class estimate and proposal that we will be able to use to control the project to the very high standards demanded by Debswana. MTTP is immensely important to ADP strategically. It will serve as the “template” for further Macro Modular Diamond Projects for all of our clients. Successful completion of MTTP will cement ADP’s name as the De Beers

‘The last couple of months have been frenetic with much to

celebrate, so let me jump right in, mindful that I cannot mention all

projects in my “brief”.’

r o j e c t sr o j e c t s

Procurement and ControlsAn EPCM model acts as the client’s procurement agent, offering experience and knowledge of procurement and contracting, the financial management and systems, and the required reporting and controls. A Kholo specific procurement manager will be working with the project team in Cape Town with controlled functionality by Deon Bronkhorst and our project controls office. Stephen Woodhead will manage the finances and financial controls and ADP have appointed an internal chartered accountant to conduct internal audits and manage financial risk and procedures.

All project controls will be the responsibility of Regan Gounder and his team supplied into the project including planning, estimating, cost control and document control.

Construction management and commissioning

Appointing a suitably experienced and capable major SMPP contractor is key to the success of Kholo given the harsh, remote environment. The ongoing feasibility study will be used to pre-qualify

suitable contractors with a proven track record in Lesotho. SMEI constructed No.2 plant and are currently assisting with estimating on the pre-feasibility. Other contractors that will be engaged will include Kentz and Grinnaker.

The desire to construct the new primary crusher system for No 1 and 2 plants during 2012 offers an opportunity to engage a preferred construction partner early in the process, prove themselves on this scope and transition seamlessly into Kholo.

ADP geared up for Lesotho Letšeng Mine Expansion

ADP will manage all the contractors utilizing the on-site services of John Adams (previously construction manager for No 2 plant). John will report to Ben De Wet who will manage the site during the construction phase with Ron Swart managing the home office team. Gavin Outhwaite will be commissioning the plant using the tried and tested C1 to C6 procedures.

‘Appointing a suitably experienced and capable major SMPP contractor is key to the

success of Kholo given the harsh, remote environment.’

partner of choice for Diamond Modular plants and hopefully open many new doors, including EPC and lump sum opportunities.

ADP was awarded the pre-feasibility study for Mothae. This important award owes much to the concept study completed by Viv and his team in 2009 for the same mine and to Dieter Born’s performance on the acidisation module for Lucara at AK6. Dieter’s performance gave Harry Lundin (Mothae project study manager who worked closely with Dieter) confidence in ADP’s ability to deliver on its commitments.

Well done to Koos and his team for completing an excellent conceptual study for De Beers Angola (Mulepe). It received high praise at the combined Anglo/De Beers assurance. Pre-feasibility has not yet been approved, but further conceptual study work will continue between now and March 2012. I am particularly proud of the work produced and consider this study the benchmark for all future ADP conceptual studies and request that all PM’s review this report before embarking on future studies. It will assist with planning, especially if infrastructure is part of the scope.

Great news on the Gold and Uranium front too! Richard and his team successfully completed ADP’s first modular Gold plant for Angola (many thanks to Emile for tireless effort). Viv, Wendy and Ruan recently completed a scoping study for our first Uranium Mine for Batla Minerals as well a first class Final Recovery Plant study for Paladin’s Kayelekera Uranium mine in Malawi.

Marine and Modular business has been far from quiet and congratulations to Toby and his team for the conclusion of negotiations with Namdeb for several studies and projects. The board approved taking the feasibility studies for the “New Red Area Recovery” plant project, !Gaeb Dredge upgrade and a new mine at Sendelingsdrift to implementation. The board also approved the full feasibility study for the upgraded floating treatment plant renamed Southern Floating Plant (SFP). The combined value of these three projects and studies is almost R500 million. Credit goes to everyone who has worked tirelessly through the feasibility study phase and I urge you to chat to Mike Hausner, Hylton Ball, Ben Denysschen and Darryl Levenson about their projects.

On the important topic of our people, Phi l l ip Beukes suggested post ing photographs of all staff on the intranet with a title and role. Thanks Phillip, we are on to it. ADP is still going through a growth phase

and one of relative flux with many new faces joining an already strong team. I welcome Vincent Ellerbeck (ex Hatch) to ADP’s team (he will work with Sarel on MTTP initially) who along with Deon Bronkhorst (ex Fluor) and Ruan Lombard (ex Bateman) are top EPCM specialists that were encouraged by Sarel to join ADP. Stephen Woodhead has accepted a permanent position as ADP’s group Financial Manager. To others who have recently joined, welcome. My door is always open to discuss issues important either to you or the company. ADP management are working on a staff retention and bonus scheme that will help retain and reward our star performers in this increasingly competitive and volatile projects environment.

A 2tph hard rock gold processing plant (consisting of front end up to final recovery, with gold being poured into moulds) was designed and built by Marine & Modular and METCO. The project was named MPOPO, after the area situated in the south of Angola and future home of the plant. Designed from scratch and fabricated in Cape Town, MPOPO was successfully trail assembled in Killarney Gardens and is being packed into containers to be shipped via road freight to Angola (scheduled for November). Well done to Emile Rocher and team (Andre Hasses, Quinton Phillips, Scott Kent and Gus Jeppe), with oversight from Richard Lacey.

MPOPO ready for Angola!IT Department

aids company ‘uptime’

Exciting IT projects to increase ADP user productivity.

ADP Projects Google Apps The ADP Projects Google Apps deployment is under way and so far the user feedback has been very positive. The ability to access e-mail, calendar and contacts from anywhere and on any device makes life easier for everyone, especially those on site or travelling abroad.

Core Server Upgrades ADP Projects will soon be migrating it's core servers and service onto an onsite "private cloud". This will e n s u r e m a x i m u m availability of core IT services and decrease disaster recovery times. The new system will also have room for expansion of ADP Projects growing IT requirements. New servers are being installed. Thank you for your patience during this implementation.

Justin Shaw

“From the Md’s desk...”

‘ADP is still going through a growth phase and one of relative flux with many new faces joining

an already strong team.’

Back office teams in HR, Project Controls, Finance and IT rarely get the recognition and appreciation they deserve. I hope that our newsletter will encourage articles on these departments. Staff, achievements and points of interest will get better coverage via the newsletter in future. I am well aware of your contribution and thank you all. We couldn’t deliver good projects without you!

Uncertainty about Greece and Europe, and the potential negative impact this may have on ADP, please take comfort that if MTTP and Letšeng proceed, we will have a record order book that will carry us all to 2014 and buffer any fall-out from the pending European crisis.

MTTP and Letšeng will mark the beginning of a bright future for ADP’s stand-alone EPCM and large scale lump sum business model, allowing Marine and Modular to focus on developing the relationship with Namdeb, Dredging, Modular plant and our technology edge. Each business unit must grow and refine their service and value propositions to their differing client expectations and requirements. I sincerely hope everyone at ADP can appreciate the sense and benefit in this formal business split. I encourage all to use their initiative to help cement the synergies and mutual respect for the different business models and cultures that must be allowed to flourish. To this end ADP M&M has recently embarked on a re-branding process. We look forward to seeing the results of this soon.

Home office emergency and fire fighting training day

ADP turnout to support the ‘Bokke’ - with big screen,‘boeries’ and liquid refreshment! All cheered and jeered, and although the ‘Bokke’ didn’t pull through, ADP staff enjoyed a festive gathering of enthusiastic rugby minds! The ‘bokkies’ : Front: Malanie, left to right: Christelle, Rienette, Marinda and Jenny dressed in green and gold for the occasion and the ‘braai bokke’: left to right: Chris, Greg and Franco made sure the wors kept up with ADP supporter appetite!

ADP home office staff fire fighters are trained to render fast and effective support in the event of an emergency. Please support Fire Wardens and adhere to their instructions in the event of an emergency.

Safety Tips:In the event of an emergency, stay calm and do not panic. Know your way around the building. Count the number of stairs you have to travel every time you use it. Familiarise yourself with the location of fire extinguishers, fire hoses and fire escape routes. Know emergency phone numbers. Know who your First Aid person is and where the first aid boxes are located.

World Cup Rugby fever at ADP!

Left to right: John, Bruce, Lisa, Mandy, Dino, and Jacques

Hatches!Congratulations!to Jenny Aspeling who became a proud granny to little Daniel On 26 October (Pictured right)

Congratulations!To Andre Hasses who became a daddy to a baby girl on 26 October!

ADP emergency support!