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PAGE NUMBER � MARCH 20��
• impairmentofR230 millionforthechannel
inductionfurnace;
• substantialincreasein energycosts;
• additionalmaintenancecosts;and
• anincreaseinprovisions.
3. Operations
Castedsteeloutputwaslessthanplannedmainlyasaresultofdisruptionsinthegassupplyandoperationalshutdowns.
4. Markets
Domesticsteelsalesvolumesincreasedby8%.Exportsalesvolumesofbothstructuralsandflat-rolledproductsincreasedsignificantly.However,importsintoSAcontinuetoincrease.
5. Granting of new order mining rights
TheDepartmentofMineralResources(DMR)grantedtheCompany’sapplicationfortheconversionofoldorderminingrightson28January2011,whichwillbringaboutthefinalisationoftheempowermenttransactionwithUmnothoweSizwe.
6. Outlook
Thereareindicationsofmarketimprovementasdemandandpricespickup.Astrongstrategyisrequiredtocapitaliseonthiswhichisbeingfinalised.
Keyfinancialindicatorswere:
2010 2009
EBITDA loss of R263 million Positive EBITDA of R477 million
Headline loss of R383 million Earnings of R167 million
Operating loss of R823 million Operating profit of R192 million
IntheirpresentationtoanalystsandmediainJohannesburgandlaterinCapeTown,theCEOScottMacDonaldandFDBerniedeBeerfocusedonsixkeyareasintheirreviewof2010:
1. Health and Safety
SafetyhasbeenidentifiedasthetoppriorityoftheCompany.Stringentactionplanshavebeenputinplacetoreducethenumberofincidents.
2. Key financials
ThemaincontributorstotheR823millionoperatinglosswere:
• the13%strengtheningof theRand;
Picture: Scott MacDonald, Evraz Highveld CEO
– Strong strategy going forward to improve productivity and efficiency
EvrazHighveld’sannualfinancialresultswereannouncedon17March2011-detailing2010asaverychallengingyear.
A TWO-STAGE STRATEGIC APPROACH
CEOScottMacDonaldisleadingEvrazHighveld’stwo-stagestrategicapproachtoimproveEvrazHighveld’sperformance.“Whilstwewillalwaysbeatthemercyofmarketconditions,thereareactionswecantaketoensurethatourproductivityandefficienciesarevastlyimproved,”saysMacDonald.
“Stage1focusesontheimplementationofarobust
2010 FINANCIAL RESULTS ANNOUNCED
Evraz Highveld News
commercialplanlinkedtoaquantumleapinproductivityandefficiencydrivenbyhighlevelsofcustomerservicewith95%ontimedelivery.Stage2seestheimplementationofsignificantCAPEXplansfocusingonmanufacturingtofurtherenhancetheachievementsofStage1.
“Ourstrategyistofocusonsafetyandhealthandoverallbusinessimprovement,”
MacDonaldconcludes.
PAGE NUMBER 2 MARCH 20��
ThefirsteverpresentationoftheEvrazHighveldBusinessOverviewProgrammetookplaceon15and16February2011atTheCentralTrain-ingUnit.Thistwodaytailor-madeprogrammeisaninitiativeaimedatintegratingrecentlyappointedSeniorManagersintoEvrazHighveldandEvrazGroupandtosharetheCompany’sstrategyandobjectives.
EvrazHighveldalsohasseveralInduc-tionProgrammesthatareofferedtoon-boardingincumbentstoensuretheeffectiveintegrationofemployeesintooracrosstheorganisationforthebenefitofboththeindividualandtheorganisation.Itisduringthistypeofinductionthatemployeesgettoknoweachotherandabouttheorganisa-tion’scultureandvalues,physicalworkenvironment,employeerightsandresponsibilitiesalongwithkeybusinessprocesses.
Thelaunchofthisprogrammewasasuccessandwillinfutureberolledouttoincludeothermanagementlevelsandshopstewards.
Fromlefttoright(standing):Malcom Simpson (General Manager Projects), Mandla Mabele (Shift Manager), Khethani Mphaphuli (Manager Continuous Cast-ing), Jerry Molefe (General Manager HR), Peter Suchanek (Steel Technologist), Mandla Ndlozi (Manager Health & Safety), Sipho Sibeko (Project Manager), Mylin Pather (Senior Metallurgist), Xolani Hlakanyana (Section Manager Reporting).
Fromlefttoright(sitting):Natasha Thomas (Unit Manager Legal Services), Sindi Nsele (Unit Manager Investor Relations), Kefilwe Mothupi (Manager Procurement & Stores), Thabisile Mchunu (Manager Transformation), Farhana Rahaman (Unit Manager Treasury), Marelie Greyling (Head Remuneration).
NEW BUSINESS OVERVIEW PROGRAMME TO ASSIST NEWCOMERS
Inthisinteractiveprogramme,departmentalheadsaregiventheopportunitytosharetheirdivisions’vision,strategy,struc-tureandgoalswiththedelegates.
EvrazHighveldiscommittedtocreat-ingatrainingenvironmentinwhichstudentsofabilityandapplicationcandeveloprewardingcareersatalllevelsintheengineeringandrelatedfields.Overthepast35-40yearsEvrazHighveldhasconsistentlygivenbursariestostudentsstudyingintheEngineeringfields.
OfthebursarsthatcompletedtheirdegreeswithEvrazHighveld,thema-joritywereappointedasEngineers-in-training(EITs).WehaveanumberofbursarsthatwiththeirexquisiteperformanceandhardworkwentonfurthertobeappointedasTechnicalAssistantsorJuniorEngineersand
CREATING A POSITIVE TRAINING ENVIRONMENT
wentontomaketheirwayupthecorporateladder.
CurrentlyEvrazHighveldhas19Bursarsand10EITsacrossthemetal-lurgical,mechanicalandelectricalengineeringfields,anditisourgoaltoincreasethebursaryopportunitiesformorestudentsthatwouldliketopursuetheircareersinEngineering.
AtarecentfunctionPavelTatyanin,SeniorVicePresidentandHeadofInternationalBusiness,andMsNata-liaIonova,VicePresidentforHumanCapital,encouragedthebursarsandEITstoachievethebestoftheirabilityduringtheirstudiesandtraining.
PAGE NUMBER � MARCH 20��
NEWS FROM MAPOCHSGloballeaderinindependenttestingandassessmentservices,TÜVRheinland,hasreawardedMapochsMineitsOHSAS18001certificatefollowinganauditon17and18January2011.
Itisimperativethateventhoughthecertificatewasretained,wecontinuallylookatwaysofimprovingthesystem.Identifyinggapsandfocussingonthemwillassistusinreducingincidentsandaccidents,aswellasminimisingoccupationaldiseasesofemployeesattheMine.ThisisparticularlyimportantinlightofthefivenonconformitiesrecordedagainsttheMine.
Wemustcontinuetostriveforasafeandhealthyworkplacethatwecanallbeproudtocometoeveryday.
Letuscontinueinthespiritof“Remmogo”onoccupationalhealthandsafetymattersaswell!
TheDepartmentofMineralResources(DMR)grantedEvrazHighveld’sapplicationfortheconversionofitsoldorderminingrightson28January2011.Theformalprocessofnotarialexecutionandregistrationisexpectedtobecompletedwithinthefirsthalfofthisyear.ThiswillbringaboutthefinalisationoftheempowermenttransactionwithUmnothoweSizwefortheMapochsMine.
MININGRIGHTSCONVERSIONAPPLICATONGRANTED
MAPOCHSRETAINSOHSAS18001CERTIFICATE
On7December2010,EvrazHighveldrepresentativesmetwithkeyleadersandofficialsoftheRoossenekalcom-munity,andon14December,withabout200peoplefromthebroaderRoossenekalcommunity,tobringamessageofgoodnews.
Thesemeetings,andthemeetingwithemployeeunionleadersofMapochsMineon15December,weretodiscusstheCompany’scommitment
NEWHOPEANDGROWTHFORROOSSENEKAL
totheimplementationofLocalEco-nomicDevelopment(LED)projectsintheRoossenkalcommunity.ThefirstoftheseprojectsistheRoossenekalAgriculturalandHydroponicsCom-munityDevelopmentProjectwhichwillfocusonjobcreationandenter-prisecreationthroughtheestablish-mentofanAgricultural-Hydroponicsdevelopmenthub.ThesecondprojectisProjectRestorewhichwillseetheestablishmentofanindigenousnurseryforrehabilitationofMapochsMineandothermines.
Bothprojectswillestablishotherdownstreamcommunitybasedeconomicindustries,whichwillfurthercreatejobsandincomestreamsforthecommunity.
MoregoodnewsisthattheRoos-senekalcommunitywillbenefitfromtheestablishmentoftheMapochsMineCommunityTrust,whereby3%ofthemine’sequitywillbegiventotheRoossenkalCommunity.TheTrustwilladministerdividendsreceivedfromtheMapochsMinethroughtheexecutionofpovertyalleviationandsocialupliftmentproj-ectsforthebenefitofthecommunity.Notonlywillthecommunityreceivesubstantialbenefitsfromtheimple-mentationoftheMapochsMineLEDprojects,butalsofromtheMapochsMineCommunityTrust.
DuringthemeetingsthecommunityleadersexpressedtheirsinceregratitudetoEvrazHighveldforbringingsuchnewfoundhopetoanimpoverishedcommunity.
PAGE NUMBER � MARCH 20��
AninitiativebyMsMarinaColledge,SHEQCoordinatoratProductionServices,sawthreeemployeeswin-ningthemselvessomelovelyprizes.
AsafetycompetitionwasrunwithinthedivisionwhereSHErelatedquestionsweresenttoemployees.Writtenanswershadtobesubmittedandthewinnerdrawnfromthosesubmissions.Three
SHEQ
Ms M Colledge, SHEQ Coordinator at Production Services, has a big heart for the wellbeing of all employees within the division
Mr. Rashokene, a Master Electrician at Production Services, celebrating after receiving his prize
Mr. Lesese, a team member at Production Services, receiving his prize
Mr. Dlamini, a Boilermaker at Production Service, receiving his prize
MAKESADIFFERENCE
EarthHourstartedin2007inSydney,Australiawhen2.2millionindividu-alsandmorethan2,000businessesturnedtheirlightsoffforonehourtotakeastandagainstclimatechange.Threeyearslater,onSaturday27March,EarthHour2010becamethebiggestEarthHourever.Arecord128countriesandterritoriesjoinedtheglobaldisplayofclimateaction.
E A R T HH O U R
IconicbuildingsandlandmarksfromAsiaPacifictoEuropeandAfricatotheAmericasswitchedoff.Peopleacrosstheworldfromallwalksoflifeturnedofftheirlights.
EarthHour2011willtakeplaceonSaturday26Marchat8.30PM.Ontheofficialwebsite,theorganisersarestatingthat“ThisEarthHourwewantyoutogobeyondthehour,soafterthelightsgobackonthinkaboutwhatelseyoucandotomakeadifference.Togetherouractionsaddup.”’http://www.earthhour.org/About.aspx
ThisyearisespeciallyimportantforSouthAfricaaswewillhostthecrucialCOP17climatechangeconfer-enceinDurbaninDecemberandwillonceagainbeintheglobalspotlight.Thisannualconferenceiswhereworldleadersmeettoassessprogressindealingwithclimatechangeandnegotiateobligationsforreducinggreenhousegasemissions.
Thisyear,EarthHourisaskingevery-oneto“gobeyondthehour”andcommittoanon-goingpersonalac-tiontobenefittheenvironment.WithCOP17onthehorizon,itisespeciallyimportantforpeopleinSouthAfricatomaketheirvoicesheardandtogobeyondthehour.
http://www.wwf.org.za/earth_hour_2011/
Howwillyou“gobeyondthehour”?
employeessubmittedthecorrectanswersandthejudgesdecidedtoawardeachofthemwithaprize.
Itishopedthatthenextroundofthecompetitionwillseemoreemployeessendingintheirentriesandatthesametimecreatingmoresafety,healthandenvironmentalawarenessamongsttheircolleagues.
PAGE NUMBER � MARCH 20��
Weallexpectqualityproductsandservicefromshops,restaurantsandotherretailoutlets.Wedemandsafehousesandneighbourhoodsandworkingenvironments.Weallwanttoliveinacleanandhealthyenvironment.Ifwewon’tacceptanythingless,whyisitthatwhenweareonthesupplyendofthechain,weforgetthatourcustomersexpectthesame?SHEQstandsforSafety,
Health,EnvironmentandQuality.Forustobeabletoremaininbusinessandoperateinasafeandhealthyenvironment,andproducequalityproductstosustainusintothefuture,weneedtohaveasysteminplacetohelpusdoexactlythat.
Threeinternationalguidelinesareusedtoassistusinimplementingandmaintainingsuchamanagementsystem:
• For quality: ISO 900�;• For environment: ISO ��00�; and• For Occupational Health and Safety: OHSAS �800�
TheseguidelineshavebeenintegratedforEvrazHighveldandtheyarethecoreofourSHEQpolicy,whichoutlineshowwewillcomplywiththerequirementsofthisinte-gratedsystem’srequirements.
Eachoneofushasakeyroletoplay.Itisneithertopmanagement’sresponsibilityalonenoronlythatofemployeesontheshopfloor,butacombinationofeveryone’seffortsthatmakesitwork.
TheQualityguideline,ISO9001,tellsushowtoensurethattheproductsweproduceareinternationallyacceptable,aswellashowtheserviceswerendercanbeenhancedtoensurethatourcustom-ersarehappy.WithoutanISO9001certificateitisdifficulttodobusinessinlocalorexportmarkets.AnISO9001certifi-catereassuresourcustomersthatwhatweproduceisindeedthebestinthemarketasitisendorsedbyanexternalauditingbody.
QUALITYStacked material at the Structural Mill Finishing End
Plates ready for dispatch after final inspection
Beams ready for dispatch after final inspection
Finished coil ready for dispatch
–DON’TACCEPTANYTHINGLESS
What is SHEQ and what does it mean to us?
PAGE NUMBER � MARCH 20��
thegiftisakickbackorbribe.Kick-backsmightbeofferedinexchangeforsteeringbusinesstoaparticularcompany.Anemployeethatacceptskickbacksformakingsureapreferredvendorgetstheworkisalsoguilty.Attheveryleast,thesekindsofactionscompromisebusinessethicsandim-properlyinfluencedecisions.
Are gifts acceptable?AtEvrazHighveldyouareonlyal-lowedtoacceptgiftsifthesegiftsweredeclaredtotheCompanySecretaryforapproval,andsuchapprovalwasgranted.
InSouthAfrica,PriceWaterhouseCoopers(PWC)estimatesthat72%ofcompanieshavefallenpreytoeconomiccrime.ItisthoughtthatintheUnitedStates,theaveragecompanyloses6%ofitstotalannualrevenuetointernalfraudandabuse.AtEvrazHighveldananonymoustip-offlineisavailabletoprotecttheCompanyanditsemployeesfromdis-honest,unethicalandillegalactivitiesintheworkplace.
What should be reported?Any wrongdoing•Theft,fraud,crimesyndicate activities
Not obeying the company policies and procedures•Overridingofcontrols
•SharingofuserIDsoraccess badges
Theft of time•Playingcomputergamesduring companytime
•Incorrectinformationon manualclockingslips
•Extendedlunches
•ProlongedpersonalcallsHighly sensitive issues•Sexualharassment,nepotism, racism
DISHONESTYINTHEWORKPLACEOneofthemostseriousissuesfacingbusinesstoday
Abuse of company property and equipment
•Makingexcessivepersonalcalls
•Useofinternet,faxmachine andcompanyequipmenttorun yourownbusiness
Bribery and corruption
•Asupplieroffersakickbackto anemployeetogainatender
Not obeying the law
•Alcohol/drugabuse
•Non-roadworthyvehicles
•Collusionwithexternaland internalparties
•Paying/receivingbribesto/from externalparties
About Gifts
It’snotunusualforcompaniestosendclientssmalltokensofappreciationafterclosingimportantbusinessdeals,ortoinvitethemtotheoccasionallunch.Aslongasthesegesturesdon’tcomewithstringsattached,they’regenerallyconsideredgifts.Ifsomeoneexpectssomethinginreturnforagift,
WestartedtheMaintenanceOptimisationProjectinOctober2010.Duringthepastfivemonthswehavebeenworkinghardtodesignanewmaintenancesystemthatallowsusto:
•implementacomparable maintenancesystemacrossthe Evrazgroup;
MESSAGEFROMEKATERINABELYKHONMAINTENANCE•getabetterunderstandingofequipmentcriticalityandtechnicalstatustoinformmanagementdecisions;and
•implementaneffective maintenanceplanning andbudgetingprocesses.
Alltheprocessmapshavebeendesignedandnewmaintenance
2� hours a day�� days a year
Absolute anonymity0800 2�� ��2
trust@tip-offs.com
guidelineshavebeendeveloped.MarchseesthestartoftheimplementationoftheidentifiedinitiativesandthemodificationoftheEvrazHighveldmaintenancesystem.
EkaterinaBelykhhassincetakenupanotherpostinMoscowandisnolongerwithEvrazHighveld.
PAGE NUMBER � MARCH 20��
InanefforttoreducethepollutionitwasdecidedtoreinstalltheKilnrawgasstackcaps.TheIronPlantpilotedtheprojectatKiln9,withabrandnewdesignbyHatch.
ThestackcapwasfabricatedbyEngineeringservicesworkshopsandinstalledbyServices’RiggersandthencommissionedandadoptedbyIronPlantpersonnel.
Mostofthematerialusedwassourcedfrominsidetheworks.Thecapdiameteris2,5metresandweighsintheregionof8tons.Itispoweredbytwoprocessormanuallycontrolledpneumaticcylindersat6-8bar.Thecapwasdesignedtobefail-safesothatintheeventofapowerdiporprocessfaultthecapwouldopentoensurethatallpressurewouldbereleasedandnotcontainedwithinthetower.
TheexhaustgasthatcomesoutofthekilncontainsPulverizedFuel(PF)aswellasothermetallurgicaldustandgasseswhichcancauseenvironmentalproblems,includingvisualpollution.Thestackcapprojectwillnotonlyreducethepollutionbutitwillalsotheoreticallyimprovethecombustioninsidethekilnshellandthegastowersthuspossiblyenhancingthekilnoutput.AftersuccessfulsigningoffofthispilotprojectitwillberolledouttootherkilnsstartingwithKiln10.
ThestackcapprojectisjustoneoftheprojectsIronMakingisbusywithtoreduceenvironmentalimpact.
Hatsofftoalltheindividualsanddepartmentsthatpulledtogethertomakethisprojectasuccess!
STACK CAP PROJECT REDUCES IMPACT ON ENVIRONMENT
PAGE NUMBER 8 MARCH 20��
TheEvrazHighveldclinicoffersafreeconfidentialHIV/Aidstesting,counsellingandtreatmentserviceforemployeesandfamilymembers.
This service aims to prevent the spread of infection and to care for those infected or af-fected by HIV/Aids.
ItisvitalthatweallknowourHIV/Aidsstatus.Forthosewhotest
negative,weneedtoensurethatwemaintainahealthylifestyletomain-tainournegativestatus.Forthosewhotestpositive,itisimportantthatweimmediatelystarttreatmentandlifestylechangestoensurethatwecopewiththediseaseinthebestwaypossibletominimisetheimpactonthequalityofourlives,andthatofourfamiliesandfriends.
ThebestwaydothisisthroughvoluntarytestingandknowingyourHIV/Aidsstatus.MembersoftheEvrazHighveldmanagementteamrecentlyfoundouttheirstatusesbyparticipatingintheEvrazHighveldSteelVoluntaryCounsellingandTesting(VCT)programme.
SisterMaggiesays:“HIV/AIDSisanindiscriminatekillerdiseasethataffectsyoungandold,poorandrich.Weallneedtofightitwithpassionbytestingregularlyasrequestedoradvised.ItisbesttotestearlyratherthantowaituntilyouaresickwithrelatedHIVillnesses.Iensuretotalconfidentiality,whethertheresultsarepositiveornegative.ThetreatmentisprovidedbytheAurumInstitute,forfreeattheclinicanditalsocatersforyourimmediatefamilymembers.Thissavesyoutimeandmoneybecauseyouwillreceive
SAFE, SECRET, AND POTENTIALLY LIFE-SAVING
Evraz Highveld managers who participated in the VCT programme.
yourtreatmentattheclinicatyourworkplaceandforfree.
Currently,thepercentageofemployeestakingpartintheVCTprogrammeisunsatisfactory.Everyoneshouldencouragetheircolleaguestogettested,now!”.
WehopeyouenjoyedreadingtheQ12011editionoftheEvrazHighveldNews.Don’tforgetthatyoucancontributetotheEvrazHighveldNewsandmakeitsomethingYOUwanttoread.We’dlovetohearaboutpersonalachievements,departmentalsuccesses,sportingprowessandcommunityhappenings.
Sendyournews,articlesandphoto-graphstothealy@evrazhighveld.co.zaforeditorialconsideration.
MAKETHEEVRAZHIGHVELDNEWSYOURS
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