Ash Resources Corporate Brochure

Contents03About Ash Resources0406070809121415Environmental BenefitsCustomer OrientationOur MarketsFly Ash in Cement and ConcreteOur Product RangeOur Production FacilitiesProudly South African:Committed to TransformationOur Concern for PeopleAsh Resources’ Associations

AboutAsh Resources is South Africa’s leading manufacturer and supplier of fl y ash products.Since 1979 the company’s pioneering development work has turned a waste productof Eskom’s pulverised coal-fi red power stations into an environmentally-friendly andsustainable building material.Our ongoing research programmes, in partnership with local and international technicalinstitutions, are continually providing fl y ash product solutions, helping to create moreeffective cement formulations and high performance concrete mix designs for theconstruction industry both locally and abroad.Top international backing with strong BEE credentialsToday, Ash Resources is a powerful partnership between Lafarge, the world leader inbuilding materials and Peotona Group Holdings, a BEE investment company. An extensivesearch for a potential black economic empowered (BEE) partner was concluded in early2009. Peotona, a 100% South African women-owned company, has acquired the 25%equity shareholding in Ash Resources formerly held by Eskom subsidiary, Roshcon andthe company looks forward to the valuable contribution their involvement will bring.Having access to the fi nancial and technical resources of a large multinational company,like Lafarge, is a unique strength for Ash Resources. It enables us to bring our customersthe benefi ts of global expertise with local delivery, making Ash Resources a true multilocalorganisation.Bringing customers the benefits of international resources:The international Lafarge Group has top rankingglobal positions in all of its businesses: Cement,Aggregates, Concrete and Gypsum. The Group has84 000 employees operating in 79 countries and, in2008, achieved sales in excess of 19,0 billion Euros.Lafarge places innovation at the heart of its priorities,working for sustainable construction and architecturalcreativity.This commitment to innovation, is backed by theinternational Lafarge Group having:• An annual budget in excess of €170 million (overR2 billion) devoted to research and developmentof new products and application solutions• 1 300 scientists, engineers and technicians fromall over the world working on the optimisationof production processes and the creation oftomorrow’s materials• The world’s largest building materials laboratory• Locally, Lafarge Quality Department (QDSA)laboratory is SANAS accredited.Having access to these unrivalledtechnical resources and best practices isone of Ash Resources’ strengths, ensuringworld-class quality products and leadingedge technology.At present, Ash Resources comprises four strategically located fl y ash processing plantssited next to Eskom coal-fi red power stations; our head offi ce in Randburg, South Africaand a Middle East marketing offi ce in Dubai. The Company has over 230 staff membersemployed from the local communities in which we operate.2009 | ASH RESOURCES | PAGE 3

EnvironmentalBenefitsOffering the construction industrysustainable optionsOne of the unique features of our products is theirsustainability providing a viable alternative to nonrenewableprimary aggregates. Ash Resources aims tomaintain its leading position as South Africa’s preferredsupplier of premium fl y ash products and the majorenvironmental benefi ts they offer the ConstructionIndustry.These environmentally-friendly attributes of fl y ashproducts are recognised worldwide. Each ton of fl y ashused in cementitious products saves approximately oneton of CO 2emissions (the ‘greenhouse’ gas, carbondioxide). In the last decade, it is estimated that the useof Ash Resources’ fl y ash products by the South Africancement and construction industries has saved thecountry in excess of 6 million tons of harmful greenhousegas emissions.Concern for the environmentA core belief at Ash Resources is that sustainabledevelopment has to be an essential part of thesearch for more effi cient and effective productsand solutions for the construction industry.• The international trend is to develop newcement formulations that use less clinkerand consequently reduce the environmentalimpact of the cement manufacturingprocess for this most important buildingmaterial• Increasingly in South Africa, playersin the built environment are having tofactor in sustainability, life-cycle costingand environmental requirements to theirplanning and construction methodologiesAsh Resources has pioneered the development of fl yash to be an important component of ‘greener’, moresustainable concrete. Our siliceous fl y ash is an effectivePortland cement extender that, when used as a binder,enhances both the fresh and hardened properties ofconcrete. However, it is also an environmentally friendlymaterial, which is used to:• Recycle a bituminous hard coal waste-product into avalue adding cementitious by-product• Reduce the usage of non-renewable naturalresources• Save energy• Reduce carbon dioxide (CO 2) emissions• Cut down on the size of power station landfi ll sitesLafarge is presently the only company in the constructionmaterials sector to be listed in the 2009 ‘100 GlobalMost Sustainable Corporations in the World’ and are aprimary sponsor of the WWF (World Wide Fund for theEnvironment), helping to lead the fi ght against globalwarming.Ash Resources is committed to the strong sustainabilityleadership example set by its shareholder, Lafarge.PAGE 4 | ASH RESOURCES | 2009

Green Building CouncilAsh Resources is a member of the Green BuildingCouncil of South Africa (GBCSA). It represents acommitment to assist the Green Building Councilin leading the transformation of the South Africanproperty industry to ensure that all buildings aredesigned, built and operated in an environmentallysustainable way. The aim is to allow all people inour country to work and live in healthy, effi cient andproductive environments.2009 | ASH RESOURCES | PAGE 5

Customer Orientation“Eskom sourced fl y ash provides us with consistent quality material,helping us provide a superior quality product for our customers”Alta VAN DEVENTER, Commercial Manager Ash Resourcesotific (N) = on time + in full + invoiced correctlyWe recognise that our customers are at the core of ourbusiness and that they demand high quality productswith strong performance benefi ts. Our customer alignedstrategy aims to:• Earn the loyalty of customers and suppliers alikethrough building long-term and mutually benefi cialpartnerships• Reach high levels of customer satisfaction withreliable products and “best-in-class” service• Offer a competitive and effi cient fl y ash supply chain• Use our world-leading technical resources to driveproduct and application innovation• Listen to and work closely with customers, architects,engineers and specifi ers to guide our developmentwork• Continue to improve our operational effi ciency andquality and to share the value created with ourcustomersOur staff takes pride in being customer focused. Acrossall departments, our people share a common commitmentto meet our customer’s requirements effi ciently andeffectively and, where possible, exceed their expectations.We not only continually invest in modern plant andequipment but also in system and process improvementsto ensure we maintain the highest levels of service to ourcustomers.over 5 million tons of “run of station” fl y ash under ourmanagement.With the recent announcement by government that thecountry’s future power generation requirements will be metpredominantly by coal-fi red power stations, Eskom hasembarked on its new build strategy with the constructionof two new thermal Power Stations: Medupi and Kusile.(Our premium classifi ed fl y ash is a key ingredient inthe concrete mixtures being used in their construction).These new stations combined with the existing thermalpower grid, secure fl y ash availability to the South Africanconstruction industry for decades to come.Reliable supply partnerOur long-standing partnership with one of the biggestnames in power generation, Eskom, together with oursignifi cant fl y ash processing capability and geographicfootprint assures customers of a reliable and versatilesupply of fl y ash products far into the future.Together we reduce CO 2emissions, conserve energy andwater resources helping make the world a better place forgenerations to come.Ash Resources is presently operational at four Eskompower stations, with a fi fth plant being commissionedduring 2009. Currently we have an annual tonnage ofPAGE 6 | ASH RESOURCES | 2009

Our MarketsFollowing our customer focused market segmentationapproach; we supply fl y ash products to a broad spectrumacross the construction industry. The main market sectorsin which our customers operate are:• Factory blended cement production• Job-site and ‘within-mixer’ concrete batching onmajor civil and building projects• Ready-mixed concrete• Precast concrete• Mining• Pre-bagged product formulators• Rubber and plastic product manufacturers(SuperPozz ® )Working in conjunction with consultants, architects andcivil engineers, the unique properties of our productsare recognised for providing robust solutions for durableconcrete in aggressive environments. Helping to buildSouth Africa’s infrastructure, our premium classifi ed fl yash DuraPozz ® Pro TM continues to be a vital component inhigh performance concrete used in the transport, waterand power industries. Some of the latest projects underconstruction using our fl y ash include:• Gautrain• Kusile Power Station• Medupi Power Station• De Hoop Dam• Coega• Gauteng Freeway Improvement Plan (GFIP)• Ingula Hydro Scheme and Braamhoek DamsCourtesy of Kevin Wright2009 | ASH RESOURCES | PAGE 7

Courtesy of Kevin WrightFly Ash in Cementand ConcreteFly ash is a pozzolan, which means it reacts with waterand lime liberated during cement hydration, to formcementitious hydrates, helping to reduce permeability.Used as a partial replacement for Portland cement,classifi ed fl y ash improves the properties of concrete bothin its plastic (fresh) and hardened state. A feature of usingconcrete containing DuraPozz ® is strength gain after 28days.The difference between fl y ash and cement is best seenunder a microscope. Fly ash particles are predominantlyspherical in shape in contrast to Portland cementparticles which are angular. The spherical shape enablesfl y ash to fl ow and blend easily in a concrete mix. Fly ashconcrete is more resistant to sulphate attack and chlorideingress. Fly ash concrete also has a low heat of hydration,reducing the risk of thermal cracking. Chemically, thesame elements exist in fl y ash and Portland cement. Themajor difference between the two is the relative quantitiesof the different oxides.Typical chemical analysis comparisonCaO SiO 2 AI 2 O Fe 2 O 3 MgOPortland Cement 66 21 5 2.5 1.5DuraPozz ® & DuraPozz ® Pro TM 4-7 47-55 30-34 3-4 1-2PAGE 8 | ASH RESOURCES | 2009

OurProduct RangeWith over 30 years of acquiredexperience and technical expertise inthe fl y ash business we have developeda range of fl y ash products.The company’s main grades of fl y ash are divided intotwo broad groups namely: classifi ed and unclassifi ed.‘Classifying’ refers to our investment in specialised airseparationequipment to manufacture products thatconform to specifi cations requiring particular size ranges.Our products are designed to meet the performanceneeds of customers’ specifi c applications.Classified fly ash productsAsh Resources classifi ed range of products, whichconform to the South African National Standard, SANS1491 Part 2 specifi cations and carry the SABS Mark,are:DuraPozz ®Ranked among the world’s best fl y ash for itsconsistent size, low LOI value and highly reactivechemical properties, DuraPozz ® is the highestvolume selling classifi ed fl y ash in South Africa foruse in cement manufacturing and by the concreteindustry.DuraPozz ® has a mean particle size of 25 micron,and complying to specifi cation requirements,typically 90% of the product’s particles passthrough a 45 micron sieve. In comparison thetypical particle size distribution of general purposecement ranges up to 100 micron with a meanparticle size of 35 micron.2009 | ASH RESOURCES | PAGE 9

DuraPozz ® Pro TM Carbon lean D50 fly ashWith the recent commissioning of a new state-ofthe-artclassifi er at our Matla production site andwith close consultation and support from Eskom weare now offering the cement and concrete industryDuraPozz ® Pro TM , a premium classifi ed fl y ashproduct.Applying our extensive research into the performanceof super-fi ne fl y ash (SuperPozz ® ) in concrete, we haveenhanced the properties of DuraPozz ® even further.Where value engineering concrete performance anddurability are the key requirements, DuraPozz ® Pro TMoffers:- Higher reactivity from a greater concentration ofthe amorphous (glass) phase, leading to higherultimate concrete strengths- Increased fi neness and particle surface areafrom the additional fraction of fi ne spherespassing a 45 micron sieve- Lower residual carbon, giving a whiter fl y ashplus less activated carbon, which can adverselyadsorb superplasticisers and other concreteadmixtures- Reduced water requirement promoting strongerconcrete- Improved workability- The potential for further fl y ash extension ofcements and concrete- Enhanced concrete resistance to chlorideingress, sulphate and alkaline-silica reaction- Low heat of hydration in mass concrete pours- Increased strength gain in concrete after 28 daysSuperPozz ®SuperPozz ® is designed to meet the needs foran ultra or super-fi ne fl y ash to formulate highperformance concretes particularly where durability isa key consideration or to meet construction challengebrought about by architectural creativity. One ofthe key attributes of SuperPozz ® is the signifi cantimprovement in long term concrete performancewith the resulting reduction in maintenance costs.Applications for SuperPozz ® include:- Self-compacting or self placing concretes- High performance ready-mixed and precastconcrete- Wet sprayed concrete- Tunnelling concretes- Proprietary pre-bagged repairs, precision groutsand fl owable screeds- Marine environment concretes where durability iscritical- Filler material in the manufacture of extrudedplastics and rubber compoundsSuperPozz ® has been used extensively in the concrete foundations and piles for the Burj DubaiTower which, when completed, will be the world’s tallest building at over 700 metres high.PAGE 10 | ASH RESOURCES | 2009

Unclassified fly ash productsPozzFill ®PozzFill ® is widely used in the production ofgeneral purpose concrete products and in themanufacture of cement. Other applicationsinclude structural fi ll, road stabilisation, grouts,mine back-fi lling and dry precast products.PozzFill ® , like DuraPozz ® , fully complies withthe requirements for fl y ash as a constituent infactory blended common cements in accordancewith SANS EN197. DuraPozz ® and PozzFill ® aredelivered to site in pneumatic tankers.PozzSand ®PozzSand ® is termed a ‘conditioned’ fl y ashproduct in that approximately 10% potable wateris added to fl y ash enabling PozzSand ® to betransported in tipper trucks, which are covered bytarpaulin to minimise dust. As the name suggests,the product can be used as a reactive replacementfor fi ne sand (aggregate) in concrete and is oftenused by cement producers as a source of alumina(AI 2O 3) - typical value in fl y ash >30% - for the‘raw’ mix or kiln feed.Specification ComplianceIn addition to our fl y ash products’ compliance to stringent South African specifi cations,they also meet the exacting standards of many international specifi cations e.g. EN 450’S’and ‘N’, ASTM C618b, BS3892: Part I and EN 197 as a constituent material.2009 | ASH RESOURCES | PAGE 11

Our Production FacilitiesAsh Resources is an ISO 9001:2000 listed company. Our regularly audited QualityManagement System (QMS) together with stringent quality control reaffi rms qualityas one of our core values and assures customers that quality is central to all parts ofour business. Our existing production sites are situated in four provinces, next to majorEskom bituminous coal-fi red power stations. Selected fl y ash is recovered and conveyedto the Ash Resources processing plants for conversion into quality products, based onthe chemical and physical characteristics of the specifi c source of raw fl y ash.Meeting industry’s needsOur continued investment in production sites andequipment is geared to meet the needs of the constructionindustry. Part of our product manufacturing strategy is toensure that we have adequate back-up plants to maintainan uninterrupted supply of our products in the event thatwe experience ash availability problems at one of thePower Stations from which we operate.At the end of 2008, Ash Resources’ installed capacitywas:• Classifi ed fl y ash product manufacture in excess of1.6 million tons per year• Unclassifi ed fl y ash product availability in excess of2.5 million tons per year. A further 500 ktons of newannual capacity is scheduled to come on stream in2009.Strategically placed geographic footprintLethabo plantLethabo, close to Vereeniging in Gauteng, is thecompany’s fl agship plant with the largest installedcapacity. Commissioned in 1989, Lethabo currently hasan annual production capacity of over 850 000 tonsof DuraPozz ® . The plant also produces SuperPozz ® ,PozzFill ® and PozzSand ® . Lethabo is equipped to handleroad and rail tankers, tipper trucks and also has facilitiesfor bagging from 25kg and 40kg valve pack bags to 1 ton‘jumbo’ bulk bags.Where performance is a priority over costFly ash has a high volume for a given weightresulting in transport costs playing a major rolein the product’s competitiveness. This means thatthe location of our plants generally aims to provideoptimum service to customers situated within aneconomically viable distance from the source offl y ash. However, engineers engaged in projectsrequiring high performance concrete specify ourfl y ash irrespective of distance. Where durability,impermeability, resistance to chemical attack andhigh strength are key concrete requirements, AshResources fl y ash products have provided thesolution. Project references include:• Lesotho Highlands Water Project• Saldanha Steel Works and Quay extensionsin the Western Cape• Mozal alumium smelter in Mozambique• Richards Bay coal berth extensions• Gateway ‘Shoppertainment’ Centre inKwaZulu-Natal• Coega Project in Eastern Cape• Hidd Port in Bahrain, Middle East• Nag Hamadi Barrage on Nile River, EgyptAsh Resources fl agship plant at Lethabo rail sidingPAGE 12 | ASH RESOURCES | 2009

Matla plantSited at the Matla Power Station near Kriel in Mpumalanga,our Matla plant’s four classifi ers can produce up to 800000 tons per year of our premium classifi ed fl y ash,DuraPozz ® Pro TM . At Matla and Lethabo we convey ashfrom each of the six generation units at the Power Station.This ability enables us to maintain production levels whenEskom undertakes their Unit Maintenance Programme.Matla plant: producer of the world-ranked classifi ed fl y ashproduct, DuraPozz ® Pro TM .Kendal plantEstablished in 1997 at Ogies, near Witbank, Mpumalanga,our Kendal plant has access to 2 million tons of fl y ash(often referred to as ‘run of station’ material). The plant ispresently only set up for PozzFill ® out-loading. However,feasibility and environmental impact studies have beencompleted in preparation for our proposed capacityincrease with a new state-of-the-art classifi ed fl y ash plantin the near future.Majuba plantCommissioned at the end of 2008, our Majuba plant inKwaZulu-Natal near Volksrust (close to the KZN border)offers a responsive and cost effective customer serviceto the coastal regions of the eastern KZN seaboard andneighbouring countries i.e. Swaziland and Mozambique.Matimba plantDue for commissioning in 2009, the Matimba plant isbased at Eskom’s Matimba power station near Lephalale inLimpopo. Our new plant will give accessibility of PozzFill ®to one of South Africa’s major mining areas and provide aplatform to export fl y ash into Botswana and Namibia.2009 | ASH RESOURCES | PAGE 13

Proudly South African:Committed to TransformationAsh Resources believes that the diverse people of South Africa represent a strength andstrives for equity in employment and commercial opportunities.Obtaining a BEE rating from an independent auditor, following Peotona’s recent acquisitionof a 25% equity shareholding in Ash Resources, is a valuable tool to monitor and motivateour transformation process. We are working with the audit rating agency Empowerdex toestablish our level of economic empowerment contribution and performance with Equityownership now added to our other scorecard pillars of Employment Equity, PreferentialProcurement, Skills and Enterprise Development and Socio-Economic initiatives.Benefits of a good ratingThe authoritative Empowerdex rating has a numberof benefi ts. When we are tendering for business, theprocess is fast-tracked because our acceptability tocomply with any empowerment or transformationrequirements is immediately apparent to thecustomer. A customer’s own BEE rating benefi ts fromdealing with us. Similarly, when we buy from supplierswith high BEE ratings, we will score higher points inour next rating audit.PAGE 14 | ASH RESOURCES | 2009

Our Concernfor PeopleWe treat our people as the most important resource ofour company:• Health & Safety is our No. 1 priorityThe well-being of our employees and the people whowork with us on our sites and transport our productsis our fi rst priority. We continually strive to achievethe safety benchmarks set by leading internationalplayers in our industry. Our “I care for our safety”campaign exemplifi es this.• Our HIV/AIDS Prevention and Care programmesupported by Life Works, is highly regarded in SouthAfrica as an effective ongoing employee supportintervention• People developmentOur people have a wealth of experience andknowledge in their respective fi elds with strongcredentials. Ash Resources aims to develop itsemployees to their full potential. Our continuous goalis to attract, develop and retain the best talent.• Our concern for local communitiesAsh Resources believes that businesses in SouthAfrica have a shared responsibility with governmentand society in general, to help develop strong andsustainable communities and to this end we continueto support local businesses wherever possible as partof our enterprise development drive.Ash Resources’Associations• Founder member of the South AfricanCoal Ash Association (SACAA) andinstrumental in SACAA becominga member of the European CoalCombustion Products Association(ECOBA)• Associate Member of the ConcreteMasonry Association (CMA)• Associate Member of the South AfricanReady Mix Association (SARMA)• Active member of the RandburgChamber of Commerce• Green Building Council of South Africa(GBCSA), Member CompanyCONTACT DETAILSAsh Resources (Pty) Ltd337 Surrey Avenue, Ferndale, RandburgPO Box 3017, Randburg 2125Tel: +27 11 886 6200Fax: +27 11 886 6140Sharecall: 0860 FLYASH (359274)Website: www.ashresources.co.za2009 | ASH RESOURCES | PAGE 15

Providing our customerswith a competitive edge ...Courtesy of Kevin WrightWe lead fly ash innovation ...others follow