IT'S ALL ABOUT SILVER LININGS

There has always been a lot of movement in the resources sector but recently most of the movement has been relentlessly in the wrong direction, with a slowdown in demand for most commodities. In Australia and elsewhere, this has been reflected in lower output, a number of mine closures and reductions in contracts for mining services companies.

However, with hundreds of millions of dollars in equipment and infrastructure lying idle, shareholders and other stakeholders are entitled to wonder what is being done to ensure that these valuable assets are still viable when the market recovers. Fluctuations in demand have always been part and parcel of the world economy and wise heads will want to protect their investment in times of hardship, in order that they may better profit when the sun shines once more.

Mining companies are not the only stakeholders in the resources sector. Across Australia, service companies and suppliers have seen severe reductions in their order books and, while it is clear that not all will survive, it is most important for the future of the industry that sufficient capacity and expertise is retained to provide the foundations for future growth.

So, if this is true, what can you or I do about it? 

We believe that there is something that can be done, something that can benefit investors, and producers as well as providing a lifeline for service companies - with major potential benefits and very low risk. 

It has been shown that companies that plan for reductions in output, that maintain their plant and preserve their assets, are far more likely to emerge from a recession in good shape than companies that are only interested in the short term. And, if a company is going to take a loss anyway, how much better to invest it in the future than walk away and lose it all? While it may be too late for some, those companies that remain would do well to look at cost-effective ways of maintaining the reliability and integrity of their assets as well as the surrounding infrastructure, the service companies and the cities that depend on them.

Recently, we have been discussing this potential with some of our customers and business partners, not just because we might benefit through sales of our products but also because of the enormous waste that would result if short-term losses were all that dictated the financial policies of the resources sector. As a result, we are working with our colleagues to create awareness of the cost-effectiveness of standby protection, mothballing and many other practises that can preserve our productive capacity during periods of low activity. It might be good for us, but it would definitely be better for everybody else.

As part of this programme, we have published some articles and information in the Australian press, in the latest (February) edition of Australian Mining Review there is an article on page eight and further information on page 41 and, later this month, we will be featuring in the Australian Energy Review - we'll keep you posted.

SEND THEM ALL TO THE SALT MINES!

The Maori name for New Zealand is Aotearoa, 'the land of the long white cloud' ... an evocative name for a beautiful country. However, clouds don’t stay white for ever and where there are clouds, rain will surely follow. For a salt mine, rain can be a problem, as you can see in the picture on the right.

The perfect corrosion recipe

Take several tonnes of salt, sprinkle with rain and liberally apply to a steel surface. There's no need for an oven, the steel will brown perfectly ... with a crisp, flaky coating of rust. It's a familiar story for the operators of this salt mine in New Zealand - they can see it wherever they look and have tried many solutions. 

But corrosion is not their only problem, salt gets into everything and causes major problems in operating machinery, contaminating bearings and severely shortening the lifespan of conveyor systems that are vital to keep the salt moving. So, when the company heard of Enviropeel and its ability to provide both ingress and corrosion protection, they were eager to see what it could do.

What goes around comes around

In New Zealand, IMG (Integrated Maintenance Group) have long been the 'go to' place for innovative asset management solutions and have been Enviropeel enthusiasts for many years. A former employee of IMG had taken over operational management of the mining site and knew that Enviropeel was a perfect answer to many of their problems and brought IMG in to help. It was decided that the best way to proceed was to provide some on-site training with applications on a variety of substrates to familiarise the company with the use and potential of Enviropeel. As well as applications to prevent ingress on bearings, areas of the main steel structure were also chosen for protection. As the pictures show, heavy exfoliating rust was present on older parts of the structure and in some areas new steel infrastructure had been installed. After some equipment and application demonstrations, both new and old areas were chosen for protection. The old areas were prepared to remove the loose and flaking rust prior to application. With training and application completed, Enviropeel is expected to be deployed across the site, greatly reducing the threat from corrosion.

IS IT REALLY?

... of course it is

12 months ago, I was wishing everyone a 'Happy New Year' and, without any warning, the year is up. At least, that's how it seems to me.

I suppose that part of the reason is that all the offices have been so busy. Not just working on our own projects here in the UK but working in different ways, especially developing new strategies in the US at Enviropeel USA and Alocit USA who, as we mentioned earlier this year, are playing a far greater role in the Alocit and Enviropeel brands. But, as well as changes in the US, this year has also seen a great new relationship developing within Europe and our new friends at Energy Coating in the Netherlands, renewing old friendships in Australia, as mentioned in our post earlier this month and, in a blog to come, working with old friends at IMG in New Zealand with a new training programme and a very interesting look at the problems they will be helping to resolve in the local salt mining industry.

None of which compares with the work that has had to be undertaken in Malaysia where, because much of the technical development and machine manufacture is moving to Indianapolis, the office has moved from the factory development to a new administration centre. Everything had to be moved and they haven't finished yet ... they will need the new year just to recover! Phone lines etc have still to be assigned ... we will keep you updated.

CHRISTMAS AT ENVIROPEEL USA

It wouldn't be Christmas in the USA without a Christmas tree, some fairy lights and some flanges covered in Enviropeel ... at least that's what Ann seems to be telling us with this photo from a corner of the EUSA office.

We love it ... the more lights (and Enviropeel) the merrier.

All of us hope that 2016 will bring you peace and good fortune wherever you may be.

BEFORE I GO ...

We are great supporters of the Australian Corrosion Association ... they know a thing or two about rust prevention. So I visit their website from time to time, just to see what's going on. At the moment, they have a great little movie featured on their home page on 'winning the fight against corrosion'. It's very informative and enjoyable to watch and it has some interesting ideas on new technologies ... have a look, you might recognise one or two of them.

BEST WISHES FROM ALL OF US

WINDOWS 10 - NOTHING IS FREE

Okay ... so Windows 10 has very little to do with rust - except, for me, it is the medium I use to interact with my PC so, when it lets me down - I let others down, because I can't do my work. Right now, I am working on my laptop (which keeps asking me to update to Windows 10 - NO CHANCE!) and gazing at a blue screen on my PC which seems to have failed during an update for W10 - the little blue dots go round and round - an eternal warning that for Microsoft, like with everything else, getting something for free doesn't mean it doesn't end up costing a great deal.

FIVE PICTURES WORTH A THOUSAND WORDS

12 years of bearing protection ...

We have talked before about the early days of Enviropeel in Australia and how it was first introduced and pioneered there by Vas Dziombak, a UK engineer working in Australia for his family business – Robil Engineering. A lot has changed since those early days - but recently we had a reminder of how far ahead of the game we were back then - and, of course, still are!

Our CEO, Arthur Haycox recently met Vas, whose business has now become part of the Orontide Group, a much larger specialist Engineering and Asset Maintenance group who are heavily involved in advanced asset protection technologies such as Enviropeel. During their conversation, Vas mentioned that he had recently removed some Enviropeel from pulley bearing housings and shafts coated in the very early days of Enviropeel  - so early that some of them were from before we had learned how to colour or properly UV protect the material. Vas was very pleased and satisfied to see how brilliantly the pulley parts had been preserved, despite being outside for at least 12 years in a tropical coastal environment.

He sent us some photos which you can see here. The first shows the original honey-coloured Enviropeel material which, although the outside looks like it was knitted by my great aunt, is in perfect condition on the inside and the bearing housing is still in great condition. The second and third show two grease nipples - one with protection and one without. Then below, material cut away from the end cap area of another conveyor pulley housing shows the excellent condition of the parts but specifically the 'shiny' bright grease nipple in 'as new' condition. Finally, as a word of warning, the last pic shows what is left of a bearing housing that did not have the benefit of Enviropeel protection.

These pictures show why, sixteen years after he first heard of Enviropeel, Vas is still so committed to the system.

Thanks Vas ...

FASTER, SMALLER, BETTER!

New minibatch units prove themselves in the UK and USA

We have been making Enviropeel for just over sixteen years and have been continuously developing the material and our manufacturing technology throughout that time. More recently, we have been developing plans to decentralise production - to introduce minibatch manufacturing plants for the production of Enviropeel on a more localised basis - both to shorten supply lines and provide a faster, more adaptable service. Now, the new system has been tested and and proved both in the UK and the US and, in a major step forward, is ready for implementation in all regions.

Because the raw materials are pre-mixed, greatly simplifying the manufacturing process, regional centres can now have the capacity to produce the majority of their local requirement  - even if they only have limited space. Of course, strict quality controls have to be maintained but the process has streamlined to ensure this can easily be achieved with suitable training.

The system also means that the colouring process can be applied at the final production stage - so non-standard colours can now be available at short notice and in small quantities, providing a much faster and more customised service to our customers.

The minibatch system will also be available to qualified distributors - which can be of major inportance in areas where local manufacturing can play a very important role in reducing costs and increasing acceptance of new technologies.

The photograph shows the E170 Minibatcher in the UK. The entire process can be operated by a single person and, despite its small size, this unit can produce a tonne of material every week.

BAKING THE SPEED LIMIT ...

... travelling at 264,000 BPH

That's bagels per hour - and if you think that's a lot of bagels, it's only one of several production lines in a single factory - a factory that uses eight railroad cars of flour every day!

One thing you know about flour, it gets everywhere. So it probably won't surprise you to learn that it gets into the production machinery too. And, mixing flour with moving parts means trouble. So much trouble, in fact, that the bearings working on the flour sifter failed regularly from the effects of the incredibly dusty environment.

If this sounds familiar ... you're right. Enviropeel has saved bearings from sand, salt, coal dust and bull dust ... now it is working its magic on flour dust.

The bearings in the photograph on the left are just two of those that were protected using Enviropeel. The material was applied to prevent ingress of contamination into the bearing's moving parts; by applying it around the housing and down on to the rotating shaft it guarantees a long life for the bearings and makes sure those bagels keeping on coming.