Issue 9 February - May 2002by Jessica Pillay

Anglo Platinum’s Rustenburg RPM section requires light bulbs for use underground. With ISO 14001 being rolled out to all Anglo Platinum operations, there is a strong need to move towards energy efficiency in their lighting systems. The problem in the past has been that a certain level of brightness is required underground for safety reasons—traditionally provided by a 60-100W (Watt) light-bulb. Energy efficient 11W lamps produce the same brightness or luminance as 60W bulbs do, but were unusable because no casings existed to hold a 11W light fitting. The only casings available held 5W fittings, equivalent in luminance to a 40W bulb, and obviously not sufficient to meet underground safety requirements.

With this knowledge, black economic empowerment enterprise Envirolight put forward a business plan proposing the installation of energy and cost efficient 11W light fittings for compact fluorescent lighting. The response to this proposal from business managers was extremely favourable, and with this market in place, the Envirolight team approached Zimele—the enterprise development and empowerment initiative of Anglo American—for funding to get the project off the ground. Zimele invested in the plan two fold, firstly by taking 20% equity in the business, represented by small business development officer Jessica Pillay, and secondly through provision of an investment loan.

About Envirolight
Businesswoman Lesego Khutsoane holds a 40% stake in the company and is its managing director. The driving force behind this operation, Lesego has worked on a number of projects in the past and is currently studying for a Masters degree in Business Administration. Unlike traditional business models where a company of this nature would hire members of the community to fulfil specific job functions, the Envirolight model makes provision for micro-level shareholders, with the objective of providing a working skills transfer. At this level, entrepreneurs Winifred Letsholo, Mirriam Marobe and Kiki Mayabe each hold a 6% share in Envirolight. These women were selected due to their previous business experience (each having attempted micro enterprises in their private capacities that showed ingenuity but had failed due to a lack of business knowledge and experience). In addition, each one is involved in community projects aimed at uplifting others, and all have completed a study course on their own initiative. The final selection criterion was to find a core group of women that exhibited a good rapport.

The remaining 22% of the company is split equally between industry experts Trevor van der Vyver—managing director of Maxlite—and Henning Holm—a trained eco-architect and expert in energy efficiency and resource planning.

The Envirolight model will also involve community based trained contractors with electricity certification from the SABS (“sparkies”). Too often training is provided, but no jobs are available through which the knowledge gained can be used and developed. Twelve individuals will be employed as contractors and trained in the product’s installation. They will be paid on a per installation basis, not only providing an incentive for increased effort, but also introducing a second level of business skills transfer.

What makes this product unique?
The patented South African designed Maxlite luminaire boasts safe and practical features ideal for a mining environment. As mentioned, the product is the first of its kind internationally to offer casing for an 11W energy efficient lamp. In addition, an amendment to the casing offers the alternative the include two 11W fittings for areas where very bright light is needed. There are no screws in the assembly, making installation quick and easy (it takes approximately 2 minutes to assemble a fitting), the casing is water resistant and does not give off heat. Most significant however is the fact that the 11W fitting consumes one tenth the power of a traditional 60W bulb by reducing both baseline and peak electricity demand. The resultant cost savings allow the luminaire to pay for itself within 18 months of use.


Incandescent vs Compact Fluorescent Lamps GRAPH


Additional applications and growth potential
The company will begin production on 1 April 2002 and anticipates a capacity of up to 200 units per day. In its first year of operation Envirolight will concentrate on servicing its Anglo Platinum contract for underground installation. The mine however offers additional business opportunities through its housing projects in the area. In the past, when building a mine, hostels would be erected to house its employees. This situation was not only socially demoralising, it also led to a variety of spin-off problems. Large amounts of people flocked to the mine looking for work and when none could be found, they ended up squatting in the mine’s vicinity. Statistics show a 50-60% unemployment level around the mines, and a brain drain in the other areas. This situation led to the breakdown of social structure, pronounced HIV/AIDS issues, and ultimately had a negative impact on the economy.

Anglo Platinum’s more recent objective is to stimulate economic growth in areas surrounding the mine. In an effort to address the green and the brown issues (environmental and social) as well as to diversify the economy of mining areas, the company’s now looks at building a community rather than just a mine.

It must be recognised however that once the house has been erected, the responsibility of its upkeep and payment for electricity and water every month falls to the tenant. Very often tenants are unable to pay for their services, which has impact on local government, and as a result on the country as a whole. Installation of the Maxlite product could alleviate much of this problem. With this in mind, local government housing projects will also be targeted downstream. The product could also be fitted to a solar panel for rural application.

With the global trend towards businesses being “environmentally friendly”, there is an obvious market for Envirolight in the corporate environment as well. The export market also offers great potential and opportunities in the USA, Britain and Africa will be investigated.

Author's Contact Details
Author: Jessica Pillay
Tel: +27 14 592 5926
Fax: +27 14 592 5932
Email: jessicap@angloplat.com