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PRESENTATION TO ROYAL BAFOKENG

21 JULY 2021
CONTENTS

1. Introduction to Galnorth
2. Product Description
3. Proposed Procedures
4. Reporting examples
1. INTRODUCTION TO GALNORTH
1. INTRODUCTION

 Galnorth/Galison Drilling is part of the Galison Group of companies which has operations in
South Africa and Zambia in the heavy fabrication and underground drilling industries.
 The company was formed in 1987 and has grown into a major manufacturer and supplier of
Drilling consumables both for conventional handheld equipment and mechanised drilling.
 The Galison group employs 300 people at 5 manufacturing sites in Welkom and Rustenburg,
South Africa and two manufacturing & service sites in Kalulushi, Zambia.
 Galison is well equipped with modern machinery for manufacture and repair of Drill steel in
Rustenburg.
 Galison is ISO9001/2015 certified and all work is done to this standard.
1. INTRODUCTION

 Galnorth is Rustenburg Based.


 The company supplies drill steel both as direct sales or as performance contracts to
customers throughout South Africa and abroad.
 Raw Drill steel is sourced from Arcelor Mittal and manufactured into required lengths
and tapers in Rustenburg
 Large stock levels are always held to ensure continuity of supply
 Galnorth works in partnership with Vula Drilling to supply the drill bit component of
the contract. These bits are made to the absolute highest quality standards resulting
in outstanding performance
 Galnorth works with highly reputable international companies to supply mechanized
drilling consumables not made by itself.
1. INTRODUCTION

 Customers include Anglo Platinum, Samancor, Harmony, Rio Tinto, Hardrock Mining
and other smaller operations
 Galison has a strong BEE equity partner in Medu Capital. Medu Capital is a major
100% black owned private equity company with a strong portfolio of manufacturing
companies. They own 26% of Galnorth.
 In addition to ownership Galison works actively to increase points on all BEE targets.
Procurement, skills development and employment equity are receiving particular
attention.
2. PRODUCT DESCRIPTION
2. PRODUCT DESCRIPTION CONVENTINAL

 Drill Bits
 Full range of taper bits available
 Suited to 22m and 25mm steel
 From 3 to 7 tungsten carbide buttons
 CNC Machined, Heat Treated and Precision Drilled
 Drill Steel
 Manufactured in Rustenburg
 K0036, Mittal Sourced 22mm and 25mm
 Full range of lengths
 High Quality Rubber Collars with no slip guarantee
 Precision CNC machined taper
 ISO Manufacturing process
2. PRODUCT DESCRIPTION MECHANISED

 Drill Bits
 Full range of threaded bits available manufactured in Johannesburg and imported
 Suited from R25 to GT60 threads
 From 28mm to over 150mm diameter
 CNC Machined, Heat Treated and Precision Drilled
 Proven performance and reliability
 Drill Steel
 Manufactured in Johannesburg and Imported
 Carburised round and Hex steels available
 Full range of lengths and configurations
 H25 to 50 Round, Extension and M/F Rods
 Precision CNC machined taper
 ISO Manufacturing process
3. PROPOSED PROCEDURES
3. PROPOSED PROCEDURES

 Drill bits and Drill steel stock held in stores provided by Royal Bafokeng at the shafts
 Galison to provide a supervisor billed separately at a fixed rate. Issuers also billed separately. All
employees on the mine will be from the local community
 Bits and steel are always recorded when issuing either as a swap out or if bits and steel are
required without bits and steel to swap. Insisting on swapping greatly reduces usage.
 In this case a requisition form needs to be filled out and signed by the relevant production and
costing personal to ensure that staff are aware of the use of bits and steel without swap outs
 All bits and steel entering and exiting the mine property will be accompanied by signed waybills to
ensure traceability and proof of usage
 These procedures must still be properly approved and bedded down after agreement with the
mine
4. REPORTING
4. REPORTING

 The following slides show examples of reporting available.


 Reporting is done by recording which exactly what is taken, what type, what quantity and by what
section.
 Using information provided by the mine on tons mined per section accurate information can be
formulated
 This would include
 swap out rates per section for steel and bits
 Actual usage per section for steel and bits
 Tons mined per bit per section
 Tones mined per steel used per section
 All of the above per shaft and for the mine as a whole
 Stock holdings at stores

This information can then be used to the mine to evaluate its consumables usage and compare sections

12/08/2021 13
4. REPORTING
MONTHLY REPORT (DRILL STEEL)
STOCK LEVEL REPORT
Q&A

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