2010 - Amazon Web Servicespmg-assets.s3-website-eu-west-1.amazonaws.com/docs/... · mintek annual report 2010 Mintek Global Location Industrial Minerals • Physical beneficiation

2010

A global leader in mineral and metallurgical innovation

“Your partner in unlocking mineral wealth”

Our MandateMintek’s mandate is to serve the national interest through high-calibre research,

development, and technology transfer that promotes mineral technology, and fosters the establishment and expansion of small, medium, and large industries in the field of minerals

and products derived from them.

Our Vision To be a global leader in mineral and metallurgical R&D and technology transfer.

Our MissionTo serve our stakeholders by promoting technology, industrial growth and human

development.

Key ObjectivesIn order to attain its goals,Mintek shall strive to:

• Develop efficient mineral processing technologies and sustainable value added products and services;

• Play a significant role in the development of this second economy;

• Support government regional and continental interventions;

• Develop human and organisational skills; and,

• Uphold good governance practice.

Contents2 Mintek Global loCation

3 MininG Value Chain

4 ChairMan’s oVerView

5 Mintek Board

7 Ceo’s report

9 Management Organogram

10 perforManCe aGainst objeCtiVes

17 researCh, DeVelopMent anD teChnoloGy 18 Gold Industry 23 Platinum-Group Metals Industry 26 Ferrous Metals Industry 29 Non-Ferrous Metals Industry 31 Industrial Minerals Industry

34 operations anD DeVelopMents 34 ConRoast Development and Toll Treatment 35 Capital Equipment 35 Process Control Products 37 CertifiedReferenceMaterials

38 Minerals poliCy anD sustainable DeVelopMent 38 Mineral Economics and Strategy

40 Small-ScaleMiningandBeneficiation

42 huMan Capital DeVelopMent anD ManaGeMent 42 Employment Equity

43 UnionisationofMintek 43 Human Resources Systems 43 Wellness

43 HIV/AIDS 44 Academic Support and Training

49 staff papers anD publiCations 2009/2010

52 Corporate GoVernanCe

55 annual finanCial stateMents anD notes 56 Audit Committee Report 57 Directors’ Report 59 ReportoftheAuditor-General 61 Financial Statements and Notes

ContaCt Details – inside back cover

aCronyMs – inside back cover

Mintek loCation – back cover flap

mintek annual report 2010

Mintek Global Location Industrial Minerals• Physicalbeneficiation-comminution,flotation,gravity,densemedia,

electrostaticandmagneticseparation,andopticalsorting.• SAVMINTMprocessforacidminedrainagepuriification.Acid-base

accounting.

• Kimberliteindicatormineralinvestigations.Alluvialdiamondprovenancestudies.

Uranium• Ambient,pressure,andheapleaching,solventextraction,fixedbedand

countercurrent(NIMCIX)ionexchange,resin-in-pulp,andADUprecipitation.• MintekisregisteredasauraniumtestworkfacilitywithSouthAfrica’sNational

NuclearRegulator(NNR)andtheDepartmentofMineralResources.

Process Control Strategies• Advancedprocesscontrolandoptimisationstrategiesformilling,flotation,

andgoldleachingcircuits,andsumberged-arcfurnaces.• Onlinecyanidemeasurementandcontrol.• Heapleachoperatorguidancesoftwareandin-heapinstrumentation.

Gold• Evaluationanddesignofrecoverycircuits,carbon/resinadsorption,

elution,electrowinning.Leachoptimisationandheapleach/bio-leachingamenability.

• Cyanidespeciationmonitoring,onlinecyanidemeasurementandcontrol,cyanidedestruction.AssistancewithICMIgaporfullcertificationaudits.

• MinfurnTMtechnologyforgranularactivatedcarbonregeneration.• MinataurTMall-hydrometallurgicalgoldrefiningprocess.• Newindustrialusesforgold–catalysis,biomedicine,andnanotechnology.

PGMs• Designandoptimisationofintegratedcomminutionandflotationcircuits.• ConRoastsmeltingtechnologyforhigh-chromiumlow-sulphurPGMmatertals.• Catalystdevelopmentforautomotive,fuelcell,andindustrialapplications.• NovelPGM-containingalloys,andpowdermetallurgicalprocesses.

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Ferrous Metals• DCarcsmeltingprocessesforchromite,ilmenite,nickellaterites,

magnetite,magnesiummetalproduction,andmetalrecoveryfromslagsanddusts.

• Ironorebeneficiation.• Materialscharacterisation(physical,mechanicalandcorrosion

properties),andfailureinvestigations.

Non-ferrous Metals• Bioleachingofcopper,nickel,andpolymetallicconcentrates.Heap

bioleachingoflow-gradechalcopyrite-bearingmaterials.• Integratedcircuitdesignformetalrecoveryandpurificationby

leaching/heapleaching,precipitation,ionexchange,andSX/EW.

Capital Equipment• MinfurnTMregenerationfurnaceforactivatedcarboninthegold

processing,watertreatment,andfoodindustries.• Goldelectrowinningcell.• DCarcfurnace.• AtomijetTMatomiserforbaseandpreciousmetals.

Economic and Regional Studies• Regionalcommodity-basedmineraleconomicstudies.• Resource-basedtechnologystrategies.• Sustainabledevelopmentstudies.

2 Mintek Global Location


The Mining Value ChainTechnologies and services developed by Mintek

1. Exploration• Geochemical sample analysis;

• Mineral/ore characterisation;

• Certified Reference Materials; and,

• Artisanal and small-scale mining (ASSM).

2. Mining• ASSM technology;

• ASSM training assistance; and,

• Mining inputs economic studies.

3. Concentrationa. Comminution/Flotation• Flowsheet design and optimisation,

and piloting;

• Plant audits;

• Ultrafine milling; and,

• Control and optimisation strategies.

4. Pyrometallurgy• Pelletisation and briquetting;• Pre-heating and pre-reduction;• DC arc process development and

piloting;• Modelling and simulation;• Submerged-arc furnace (SAF)

control strategy;• Fluidised bed and condenser

technologies;• Refractories performance

investigations;• High-temperature solid state and

phase equilibrium investigations; and,• Ore, slag, matte and alloy

characterisation.

5. Hydrometallurgy and Biotechnology

• Atmospheric and pressure leaching;• Bioleaching (refractory gold and base

metals);• Solvent extraction and ion exchange;• Electrowinning;• Process simulation;• Reagent development and evaluation;• Gold recovery by CIP/RIP;• Activated carbon regeneration;• Uranium processing expertise, and U3O8

recovery;• Cyanide measurement, monitoring

and auditing; and,• Leach circuit control.

6. Refining• Gold refining and value-added

products/chemicals;• Pyrometallurgical refining of: zinc

(PWG to SHG),and off-grade ferro-alloy fines; and,

• Titanium chlorination technology.

7. Value addition• New industrial applications for

gold: Catalysis; Biomedical; and Nanotechnology;

• “Smart” materials and sensors;• PGM-based superalloys;• Low-nickel stainless alloys;• Jewellery fabrication;

• Gold and platinum jewellery alloys; and,

• Identification of downstream, metals-based, economic development opportunities.

8. General• Ore characterisation, analytical

and process mineralogy;• Certified Reference Materials;• Materials characterisation, testing

and development;• Engineering design,

manufacturing, installation and commissioning;

• Project management services; and,• Regional minerals-based studies.

1 2 3 4

5 6 7 8

b. Physical separation• Bulk sample preparation;

• Gravity, magnetic, electrostatic and dense-media separation; and,

• Pneumatic jigging, and Mineral Density Separation.

3The Mining Value Chain


The Mining Value ChainTechnologies and services developed by Mintek

1. Exploration• Geochemical sample analysis;

• Mineral/ore characterisation;

• Certified Reference Materials; and,

• Artisanal and small-scale mining (ASSM).

2. Mining• ASSM technology;

• ASSM training assistance; and,

• Mining inputs economic studies.

3. Concentrationa. Comminution/Flotation• Flowsheet design and optimisation,

and piloting;

• Plant audits;

• Ultrafine milling; and,

• Control and optimisation strategies.

4. Pyrometallurgy• Pelletisation and briquetting;• Pre-heating and pre-reduction;• DC arc process development and

piloting;• Modelling and simulation;• Submerged-arc furnace (SAF)

control strategy;• Fluidised bed and condenser

technologies;• Refractories performance

investigations;• High-temperature solid state and

phase equilibrium investigations; and,• Ore, slag, matte and alloy

characterisation.

5. Hydrometallurgy and Biotechnology

• Atmospheric and pressure leaching;• Bioleaching (refractory gold and base

metals);• Solvent extraction and ion exchange;• Electrowinning;• Process simulation;• Reagent development and evaluation;• Gold recovery by CIP/RIP;• Activated carbon regeneration;• Uranium processing expertise, and U3O8

recovery;• Cyanide measurement, monitoring

and auditing; and,• Leach circuit control.

6. Refining• Gold refining and value-added

products/chemicals;• Pyrometallurgical refining of: zinc

(PWG to SHG),and off-grade ferro-alloy fines; and,

• Titanium chlorination technology.

7. Value addition• New industrial applications for

gold: Catalysis; Biomedical; and Nanotechnology;

• “Smart” materials and sensors;• PGM-based superalloys;• Low-nickel stainless alloys;• Jewellery fabrication;

• Gold and platinum jewellery alloys; and,

• Identification of downstream, metals-based, economic development opportunities.

8. General• Ore characterisation, analytical

and process mineralogy;• Certified Reference Materials;• Materials characterisation, testing

and development;• Engineering design,

manufacturing, installation and commissioning;

• Project management services; and,• Regional minerals-based studies.

1 2 3 4

5 6 7 8

b. Physical separation• Bulk sample preparation;

• Gravity, magnetic, electrostatic and dense-media separation; and,

• Pneumatic jigging, and Mineral Density Separation.

3The Mining Value Chain


Chairman’s OverviewRevenues of the woRld’s top mining companies declined by about 15 peR cent, while spending on mineral exploration – which includes a large component of research - fell by more than 40 per cent due to the financial crisis that led to a recession resulting in Mintek being unable to meet its budget. although last year we predicted that we would experience a recession this year, it was, however, more severe than we thought. there is no doubt that the effects of the general volatility and uncertainty in the global economy will continue to be felt for some time. however, the long-term fundamentals for the mining and minerals industry remain intact, and i am confident that we can look forward to a more favourable economic climate in the coming year.

since taking over the reins as the chairperson of the mintek board, which began its tenure in march 2007, we witnessed a number of major achievements. The financial situation was turned around, and from a net loss in 2007/08 we achieved a healthy profit in the ensuing two years. The R39-million profit in 2008/09 was a record for mintek. our income from the science vote (parliamentary grant) has stabilised at around 30 per cent of the total, while funding from other state agencies (so-called “earmarked” funding) has doubled from previous levels, being more than R50-

million in the past financial year. On the governance aspects, mintek continues to improve on our control environment, hence the unqualified audit report that we received last year.

a “decasualisation” process was completed whereby casual (contract) workers were taken on as full-time employees, thus allowing them access to additional benefits. The National union of mineworkers formally reached the representation entitling them to organisational rights at mintek, and a new Recognition agreement was signed in august 2009.

measures were successfully implemented to ensure parity and equity in the salary structure, and the unacceptably high level of staff turnover was reduced to around one-third of its former level.

mintek has carried out extensive process development work to support feasibility studies for new platinum-group-metal (pgm) projects and expansions, including the four newest mines to enter production. although a number of projects were delayed as a result of a slump in the financial markets, there are indications that several of these will shortly

4 Chairman’s Overview


Mintek Board of directors 2009/2010

Mr Harold Motaung Chairman of the Board

Mr abiel Mngomezulu CEO, Mintek

Ms Gugu Mthethwa Mr Mosa MabuzaMr ralph Havenstein

Mr Mohau Mphomela

dr Bethuel sehlapelo

Mr Mohlomi ntilane

Ms Lindiwe Mhlabeni

dr Jan Bredell

enter the development phase. the pgms are south africa’s most important contributor to mineral export earnings. notable progress was made, together with our partners braemore Resources and Jubilee platinum, towards the goal of establishing an independent smelter using mintek’s unique conRoast dc technology to treat high-chrome platinum concentrates from emerging producers.

mintek and the university of cape town jointly established a catalysis competence centre, as part of the dst’s “hydrogen economy” strategy, which will investigate novel pgm-

based catalysts for hydrogen and direct methanol fuel cells. under the dst’s precious metals development network, work is also under way on a new class of gold and gold-palladium catalysts.

mintek is developing the capacity to become a leader in the fast-developing field of nanotechnology, and one of south africa’s two national nanotechnology innovation centres has been established on the campus. this is a new area of research for mintek, and it is gratifying to see such remarkable progress in a short space of time. the same

can be said of project auteK, our joint venture

with major south african gold producers

to discover new and innovative uses for

gold, with the emphasis on applications to

address issues particularly facing south africa,

including health (diagnostics and treatment)

and water quality. both these ventures are

noteworthy for their interdisciplinary nature

and the wide-ranging collaborative linkages

with other organisations that they have

engendered.

mintek has expanded its services to the gold industry, through the establishment of a dedicated iso 17025-compliant cyanide services laboratory to assist gold producers in complying with the international cyanide management code. a renewed emphasis has also been placed on investigating the fundamental aspects of gold processing, from the point of view of both gold recovery and sustainability.

our unique heap bioleaching technology for low-grade copper sulphide ores is nearing full-scale implementation in the middle east,

and large-scale testwork has also been conducted for clients with projects in the major copper-producing region of south america.

the range of projects undertaken for clients in sub-saharan africa has increased, and it appears that africa is becoming increasingly attractive as a destination for mineral project development. there has been a notable revival of the copper industry in central africa, new iron-ore prospects are emerging in west africa, and exciting mineral discoveries are being made in previously

under-explored countries such as malawi, cameroon, and eritrea.

mintek’s role on the international front has also continued to expand, through more projects in the usa, latin america, australia, the middle east and asia. in this regard, our unique process control strategies continue to lead the field, with an installation base of more than 100 minstral furnace controllers and milling, flotation, and leaching control systems on some of the world’s largest gold and base metal mines.

5Chairman’s Overview


a particular high point was mintek’s 75th anniversary celebrations last year. it was a pleasure to meet the large number of former mintek staff, many of whom have made their mark internationally as researchers, consultants, and industry leaders, who travelled from as far afield as australia, canada, and the uK to join in the celebrations.

the establishment of the department of mineral Resources, as a separate department wholly focused on the minerals industry, was a welcome step. mintek has forged an even

stronger relationship with the department, under the leadership of the honourable minister susan shabangu whom we thank for her inspiring leadership and closer co-operation. to this end, mintek more recently, embarked on a programme of work to rehabilitate derelict asbestos mining sites in south africa as the project manager.

in human resources development, i am delighted to see a significant decrease in the staff turnover, to 7 per cent in the past year compared with 25 per cent two years previously, and congratulate mintek on the

measures it has taken to stem the drain of

scientific and engineering talent. Mintek

continues to support the implementation

of various human capital development

initiatives, including the technology Research

professional development programme and

the technology and human Resources for

industry programme. another role in which

mintek has truly excelled in is raising public

awareness, and launching and maintaining

outreach programmes to promote science

and engineering.

as this is my last tenure as the mintek board

chairperson, i wish to thank the current

board for their support and diligence and

further extend a warm welcome to the new

board under the leadership of mr. mohau

mphomela. my gratitude also goes to the

ceo and his management team for their

dedication as well as all mintek employees for

their innovation and devotion to duty. i have

every confidence that Mintek will continue to

adapt to changing market conditions, and to

maintain and grow its skills base, so as to be

well positioned to benefit from the renewed

demand for mineral and metallurgical

research and technology.

Mr Harold Motaung

chairman of the board.

6 Chairman’s Overview

mintek annual report 2010CEO’s Report

CEO’s ReportThis Time lasT year we were sTill enjoying The Tail end of The boom cycle. however, we indicated that we were expecting a challenging year ahead. we were able to predict the stormy season, but were unfortunately unable to accurately foretell its severity. of importance for us now is to be able to resiliently return to where we were before the recession, which only lasted for two successive quarters, though it had a severe impact. fortunately, we were able to contain our costs without retrenching any of our employees. however, our revenues as a group were severely depressed, with profits plummeting from a Mintek record high of R39.6-million in the previous financial year to a mere R1.7-million.

we are now hopeful of a recovery, with metal prices having now risen substantially since the bottom of the cycle in early 2009 and mining companies world-wide once again raising capital and planning increases in expenditure. accordingly, as one of the world’s leading specialist technology organisations in the minerals industry, we are looking forward to modest growth in 2010.

Technical highlightsone of the major highlights was the successful conclusion, at the end of March 2010, of the lengthy campaign on our ConRoast DC arc smelting technology for high-chrome PGM-bearing materials. The technology has been conclusively demonstrated, and mintek is looking forward to working with our partner, jubilee Platinum, in moving forward with commercial implementation.

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mintek annual report 2010 CEO’s Report

Mr Abiel MngomezuluChief Executive Officer

ExEcutivE committEE 2009/10

Dr Molefi Motuku gm: research and

development

Dr Roger Paul gm: business

development

Mr Peter Cravengm: Technology

Mr Sakhi Simelanegm: finance

Ms Shokie Bopape gm: corporate services

The development, by mintek and industry more than 25 years ago, of a process for beneficiating the UG2 Reef effectively doubled South Africa’s PGM resources. The implementation of conroast will enable their full value to be realised by relaxing the constraint on the maximum level of chromite that can be tolerated during smelting.

Under Project AuTEK, great progress has been made in understanding the mechanism by which gold-based synthetic compounds inhibit HIV activity, and nanotechnology-based tests for the early detection of various diseases, including Tb and malaria, have reached proof-of-concept stage. A R13-million advanced cleanroom facility, sponsored by the department of science and Technology, is scheduled for completion in December 2010.

A contract has been signed for the full-scale implementation of high-temperature heap bioleaching at Sarcheshmeh in Iran, and the engineering specifications for the project are currently being drafted in preparation for the client to call for tenders.

with the exception of the cynoprobe online cyanide analyser, mintek’s advanced strategies for process control experienced a quiet period as a result of the economic downturn. notable milestones included a very large combined milling and flotation control installation at Hindustan Zinc in India, and the first furnace control and optimisation system in Kazakhstan, a major ferro-alloy producing region.

Sustainable developmentMintek continued to grow its support for mineral-based regional development initiatives and the “second economy”. These activities are undertaken in conjunction with a broad range of stakeholders, including government bodies, international funding agencies, private sector companies, and community-based organisations. new capacity is being developed around the economics of energy and water, to complement the existing commodity-based expertise. a study of the issues surrounding mining and geosciences R&D in Africa was completed, culminating in a successful two-day conference. A Mintek-managed project commenced on the rehabilitation of historic asbestos-mining sites, under the derelict and ownerless mines programme of the department of mineral resources.

Almost 200 small-scale miners around South Africa received training in technical and business skills under the programme sponsored by the Mining Qualifications Authority, and nine new rural small-scale enterprises were set up. an agreement was entered into with moi University in Kenya to conduct collaborative research into the use of agrominerals to enhance soil fertility.

Peoplein my previous report, i mentioned that our total staff complement had risen to 785 as a result of moving temporary workers to the status of permanent employees. at the end of the period under review, this number had fallen to 769, purely as a result of natural attrition, resulting in a staff turnover rate below prediction at 7.3 per cent.

8

mintek annual report 2010CEO’s Report

Mintek Organogram as at 31 March 2010

cEoAbiel Mngomezulu

TEChnOlOgyPeter Craven

RESEARCh & DEVElOPMEnTDr Molefi Motuku

FInAnCEsakhi simelane

CORPORATE SERVICESshokie bopape

AnAlyTICAl SERVICESmonde mtakati

PyROMETAlluRgyTom curr

InFORMATIOn & COMMunICATIOnS

haveline michau

FInAnCEHester Pretorius

SMAll-SCAlE MInIng & BeneficiatiOnnirdesh singh

MInERAlS PROCESSIng Alan McKenzie

BiOtechnOlOgy Petrus van Staden huMAn RESOuRCES

& TRAInIng Makgomo Umlaw

MInERAl ECOnOMICS & STRATEgy

neale baartjes

BuSineSS DevelOpMentjohn batty

MEASuREMEnT & COnTROlPaul Brereton-Stiles

ADVAnCED MATERIAlSdr elma van der lingen

hyDROMETAlluRgydr dave hulbert

EngInEERIng SuPPORTNick Maritz

MInERAlOgyVacanT

ESTATE MAnAgEMEnT SERVICES Muzi Ntombela

BuSineSS DevelOpMentDr Roger Paul

a streamlined mintek structure was adopted, which involved a re-arrangement of some of the business units, and a new business development function created to focus on the marketing of mintek’s technologies and services.

although our undergraduate bursary programme is exceeding the target number of students, the number of postgraduate (M.Sc. and Ph.D.) bursars is still unsatisfactory, and initiatives have been set in motion to address the decline.

Quality, environment, safety and health mintek’s systems underwent a major reassessment audit for ISO 9001: 2008 (Quality Management), ISO 14001:2004 (Environmental Management) and OHSAS 18001: 2007 (Safety and Health Management), and Mintek was re-certified to all three standards. The Lost Time Injury Frequency Rate (LTIFR) remained below the target of 1 for much of the year.

The Client Dissatisfaction Frequency Rate (CDFR) has declined steadily since mid-2008, and the target of 10 or less was achieved in October 2009 and has been maintained since then. The Environmental Incident Frequency Rate (EIFR) was zero throughout the year.

Financial summaryDuring the 2009/10 financial year Mintek’s total income was R375-million, a 11 per cent decline on the previous year’s total. although the state grant under the science Vote increased to R124-million compared with R106-million in Financial 2009, and earmarked funding rose to R54-million from R41-million, income from commercial work fell to R170-million from R243-million the previous year, a drop of 30 per cent. Fixed costs remained almost the same as the previous year, resulting in a net profit margin of just 0.5 per cent. during the year ahead, mintek will strive to further contain costs, while maximising its commercial revenue.

i would be failing in my duty if i do not thank the honorable minister susan shabangu for availing herself to mintek whenever we needed her. her guidance and leadership are welcome. i would also like to thank mr. harold motaung, former chairperson of the board and his team, for the leadership they have shown during their three-year tenure. we welcome the new chairperson, mr mohau mphomela, as he takes the baton from the old team. our gratitude goes to our customers and suppliers for their continued support during the tough financial climate we experienced.

finally, i would like to thank all at mintek for their perseverance, sacrifice and dedication. The recession in the commodities sector appears to be largely behind us, and although the road to full recovery will not be an easy one, I am confident that if we redouble our efforts we will be able to maintain mintek’s position as a global

leader in its field. The Celebration of Science and Technology conference, which was one of the highlight events of our 75th anniversary last year, underscored the immense contribution that mintek has made to the metallurgical and minerals industries over the years, and i believe that we are even better equipped than ever to face the challenges of the future.

Abiel Mngomezuluceo, mintekAbiel Mngomezulu

9

mintek annual report 2010 Performance against Objectives

Performance against Objectives1. StakehOlder PerSPective Key Performance Area/Objective: Develop efficient mineral processing technologies and sustainable value added products and services

Programmes Measures/Outcome Performance Indicator target Actual comments

12

a) Overcoming technical obstacles to exploiting mineral resources

develop analytical & Mineralogical Methods: Adapt existing methods, or develop new methods, for the accurate and precise analysis of complex geochemical and metallurgical samples.

# of Methods 12 17 More available financial resources and human capacity due to downturn in commercial activities. More work relevant to Science Vote was done.

# of Papers 5 1

Develop and evaluate new processing technologies: New technologies are required for the processing of ore bodies or resources that are not currently being exploited due to their low grade, impurity levels, complexity, or lack of expertise: UraniumTitaniumCopperGold and PGMNickelCobaltCoalIronChromite

# of papers 6 14

# of Reports 22 47

# of Models 5 0 Demand was more for commercial service work than for plants and models.

# of Plants 7 0

# of Plant Units 2 2

Analytical & Mineralogical Services: Provide fast, accurate analyses for a wide variety of geochemical and metallurgical samples.

# of Samples 110,000 61,406 Market demand extremely low due to industry recession.

# of Group 2 equivalent mandays

1,080 1381 man days

More mineralogical service work was sourced from internal divisions.

b) Enhance the competitiveness of metallurgical processes

Development of Advanced Process Control Technologies: Develop, demonstrate and implement advanced process control and performance monitoring for flotation and milling.

# of Prototypes 4 7

# of Reports 10 26 Nature of work needed more reports to clients.

# of Commercial Products* 0 20

Feasibility Studies: Conduct laboratory and pilot scale test work to obtain the metallurgical parameters necessary for the preparation of pre- or full-feasibility studies for the ore samples supplied by clients to Mintek. − Industrial minerals (chromite, iron /

manganese ore, others)− Diamonds− Uranium− Base metals− Gold− PGMs

# of Feasibility Study Reports 62 95

# of Papers 3 4

# of Audits 3 1 Shift in market demand.

Reduce Processing costs: Develop innovative ways to lower the costs of processing a variety of feed materials to final product.

# of papers 1 1

# of Reports 9 3

* Work not planned.

10

Performance against Objectives mintek annual report 2010

Key Performance Area/Objective: Develop efficient mineral processing technologies and sustainable value added products and services (cont..)

Programmes Measures/OutcomePerformance

Indicatortarget Actual comments

c) Develop new applications or markets for minerals and metals

Certified Reference Materials: Produce new certified reference materials to allow local and international laboratories to check their in-house geochemical and metallurgical analyses.

# of New Reference Standards

12 12

New industrial uses for Precious, Ferrous and Base Metals: Develop commercial applications for the precious metals in the areas of:

- Biomedicine (Cancer, HIV, malaria)

- Catalysis (chemical processing, fuel cells, environmental)

- Nanoscience & nanotechnology. Develop commercial applications for base and ferrous metals in the mining sector

# of Reports 12 79 Done to meet DST interim reporting requirements.

# of Papers 17 35 Increase in contributions from collaborators.

# of Patents 1 2 Maintained existing patents.

Develop and construct Plant Equipment: Incorporate Mintek’s technology and know-how into the development and sale of commercial plant equipment used in the minerals industry.

# of Plant Units 2 0 Due to economic climate no new plants were constructed.

d) Sustainable development

Water in Minerals Processing: Development of water efficient flowsheet to optimise water consumption and enable processing of ore bodies in water stricken areas by incorporation of novel technologies into flowsheet design, and addressing of socio-economic implications of water in mining.

# of Reports 3 4

# of Papers 1 1

# of Stakeholder Workshops

1 0 A workshop with the DST was undertaken in this regard.

energy in Mineral Processing: Development of an energy efficient flowsheet and control technologies that minimises energy consumption, opex, capex, and carbon emissions by incorporation of novel technologies into flowsheet design.

# of Reports 10 9

# of Prototypes 3 1 Target not met because of resource constraints. The budget was reduced in the mid-term review.

Emissions and Waste Management in Mineral Processing: Maintain accreditation as a Lead Auditor for measurement of cyanide emissions from gold plants, establish basic levels of arsenic measurement, and implement advanced control technologies to reduce emissions.

# of Reports 9 8 Target not met due to delays encountered finding demonstration sites for prototypes in order to produce associated demonstration reports. However an extra prototype was developed.

# of Prototypes 2 3

Plant and Technology: Construct a furnace for the recycling of waste dry-cell batteries, and undertake the initial concept studies for the reactivation of carbon used in potable water treatment, and for the production of solar-grade silicon.Waste Dry - DonePotable Water by 2008Food Technology by 2009

# of Furnaces 1 1 Batrec’s furnace was installed.

# of Reports 1 2

e) Support the development of Junior Resource Companies (JRC)

Technical Assistance: Conduct amenability and/or feasibility studies for possible JRC projects, and assist in developing a flowsheet for the processing of their ore bodies.

# of Reports 7 13 Strong demand from the juniors for very small opportunities.

11

mintek annual report 2010 Performance against Objectives

Key Performance Area/Objective: Play a significant role in the development of the second economy


a) SMMe business

incubation

Development and support of SMMEs: New business started, existing business supported, co-operatives supported(Broad-Based Black Economic Empowerment Companies) supported.

# of New start-up SMME's

12 9 Yearly target was not met due to infrastructure problems experienced at pottery sites which delayed implementation. Jewellery/beads section did not receive further contracts for training.

No co-operatives registered in 2009/10 due to lack of finance, which impacted on jobs created.

# of supported Existing SMME's

12 12

# of developed and supported Co-operatives

1 0

# of Jobs created through start-ups

160 107

SMME Research: Develop strategies and partnerships.

# of Agreements 7 1 Yearly target not achieved due to division focussing more on SMME development/training agreements rather than research.

# of Pilots 1 0 Contract signed with DST for piloting Biomin in Marble Hall. Implementation will start in 2010/11 financial year.

Second Economy Strategy: Develop and implement a strategy for the support of the second economy.

Business model and plan Reviewed business model

Completed Ceramic Strategy for SA completed and model to be finalised in 2010/11.

Precious and semi-precious stones Mineralogy.

# of Reports 1 4

Construction Minerals: Establish small-scale mining technologies suited to SMME operations in construction and other minerals.

# of Reports 2 3

12

Key Performance Area/Objective: Develop efficient mineral processing technologies and sustainable value added products and services


b) development of technologies relevant to SMMes

Minerals for Agricultural Development: Develop new and improve existing technologies and transfer technologies to communities.

# of Reports 2 2

Indigenous Knowledge Systems (IKS), Mining and Beneficiation: Develop strategies, establish partnerships and incorporate indigenous knowledge systems into ceramic and jewellery products.

# of Agreements 2 0

# of Reports 1 0

Pilots per # of Sites 3 0 Programme was placed on hold by the DST.

# of learners 10 0

Performance against Objectives mintek annual report 2010

Key Performance Area/Objective: Support government regional and continental


a) Mineral Strategies

Mineral Scans: Industrial Minerals for LED support, Spatial Development Programme.

# of Reports 6 6 Target achieved for the year.

# of Stakeholder Workshops 1 5 Target achieved for the year.

Alluvial Diamond Finger Printing competency: Develop methods and establish infrastructure to identify the source of diamonds through trace element analysis, diamond morphological characterisation and setting up a diamond database.

# of Reports 5 7

Method development LA-ICP-MS complete but to date no parcels completed on the instrument. Deonvolution software formulated by MAC and a report in progress. Trace element method hampered by problematic Laser and teething problems with a new instrument. These have largely been sorted out.

Evidence of accurate and complete database upgrade.

4 10 diamond parcels

FTIR and Morphology investigations completed on 10 diamond parcels and 0 parcels yet on LA-ICP-MS.

Sidestream and downstream development of mineral value chain.

# of Reports on value chain relocation and development.

2 4

b) Policy Support

Economic Research and Analysis as per DME Request.


Socio-Economic Management: Assist companies in understanding and monitoring the impact of mining on women.


13

mintek annual report 2010 Performance against Objectives14

Key Performance Area/Objective: Uphold good governance practicesProgrammes Measures/Outcome Performance Indicator target Actual comments

a) compliance iFrS compliance: Timely and accurate processing of all valid transactions, addressing all audit matters raised in external and internal audits.

Status of Audit Report Unqualified audit

Unqualified audit

b) Financial Management

Total revenue R value 490,827 374,378 Less commercial and Science-vote work was received compared to the previous financial year due to the economic climate.

Total Science-Vote revenue R value 136,286 136,637

Operational revenue R value 109,095 123,561

Capital allocation R value 14,950 13,076 Capital allocation was made to assets purchased during the year.

MTEF R value 12,241 12,241 MTEF funds were expensed as per approved project plan.

Net result R value 22,100 1,433

Capital investment (from own reserves) R value 9,990 5,287 Due to less economic activity there was no need to invest more in capex.

Gross profit margin (commercial projects) % margin 15 25

Net Profit margins % margin 4 0.41 The profit margin deteriorated due to less work being received from clients whilst fixed costs remained almost the same.

c) key ratios

Net profit/fixed assets, how well do we utilise assets to generate profit

% 6 0,75

Current ratio (current assets/current liabilities). Indicates liquidity of Mintek

Ratio >2.0 1.9

Liquidity ratio (Cash/current liabilities) Ratio >1.0 1.5

Debtors days outstanding No of days <75 days 60 A slight improvement is due to more receipts during the last quarter, particularly from long outstanding debtors.

% Sales to outstanding debtors (Commercial debtors/revenue)

% Revenue <22 29 This is due to decrease in revenue.

BEE procurement as a % of total discretionary spend

% Spent 22 29 Mintek has been receiving more BEE certificates from suppliers, making it possible to recognise spend on BEE.

Actual debtors write-off (%of total revenue) % of total revenue <1 of Revenue

0.27

Ratio of Science vote/Total revenue % 25 36 Science-vote is higher as a % of total revenue due to the lower commercial revenue generated during the financial year.

Total of overheads costs to total costs % 25 27 Less project costs are due to less commercial work resulting in overheads comprising a higher percentage of total costs.

Salaries to total expenditure % 60 61 Savings achieved due to not filling non-critical posts.

2.2 FiNaNcial PerSPective

Performance against Objectives mintek annual report 2010 15

Key Performance Area/Objective: Develop human and organisational skillsProgrammes Measures/Outcome Performance Indicator target Actual comments

a) Human capital management and development

Create and increase Mintek skills pool

• Bursar absorption rate into Mintek

– Under-graduates # of bursars 14 11 Fewer students than predicted passed.

– M.Sc. graduates 8 10 More students decided to work first before registering for Ph.D.s

– Ph.D. graduates 3 0 Bursars extended the term of study.

• Undergraduate bursary programme 80 52 Numbers of suspended bursars were not catered for in the target.

• Post-graduate bursary programme (M.Sc. & Ph.D.)

40 43 Initiatives have been set in motion to address the decline in the number of postgraduate bursars, such as the Hydrometallurgy en block programme piloted

• DST Research Professional Programme

– M.Sc. graduates 15 5 These low numbers are compensated by the high Ph.D. intake

– Ph.D. graduates 2 4

Experiential training/learning and development

# of In-service Trainees 40 45

Competent workforce Skills Audit Report Conduct Audits

1 HR Skills Audit completed.

Management and executive development programme

# of employees 20 23 23 graduated, 1 failed, 2 did not complete and 2 resigned from Mintek.

SMME Training and Development: People trained in bead making, brick making, ceramics, introduction to small-scale mining and partnerships developed on skills programme.

• # of people trained

• Agreement signed

550

1

290

3

Yearly target not met due to infrastructure problems experienced at pottery sites so delay in implementation. Glass bead section did not receive further contracts for training. Only a single MQA contract received.

Jewellery Training and Development interventions: Establish new partnerships, train new beneficiaries in Eastern Cape, Limpopo, Free State, Gauteng and Mpumalanga at NQF level 2, train learners in the Northern Cape in gemstone cutting and polishing.

• # of people trained

• Agreement signed

80

6

51

1Low numbers obtained due to the economic climate.

b) Organisational transformation and change management

Streamlined and efficient organisational business processes.• Policies review

# of policies and processes reviewed as a measure

4 6 The review of the intended policies had an impact on other policies, hence the need to review more policies than predicted.

Increased productivity within Mintek• Performance management system

• Remuneration Strategy

# of reportsStrategy

2

Implement

3

1

• Sound labour relations

Employee bargaining system in place

1 Mintek wide

Recognition agreement

1 Recognition Agreement 16/25/2 finalised and implemented to guide bargaining processes.

Employee Wellness Programmes in place

Employee Wellness

Programmes

6 Wellness programme conducted sufficiently.

2.3 learNiNG aNd GrOWth PerSPective

mintek annual report 2010 Performance against Objectives16

Key Performance Area/Objective: Develop human and organisational skills (cont...)Programmes Measures/Outcome Performance Indicator target Actual comments

c) Maintenance of world class R&D competence

Information and Knowledge Management

• Research Information Management System (RIMS) project implementation System in Place

Pilot system for selected

modules1

E-forms for the capturing of published information has been created based on Mintek’s current publications database on STAR. HR data transferred and tested on the production server.

• Intellectual Property Management Framework Framework Develop 1 Framework developed, awaiting

implementation of the IP Act.

• Record Management plan Plan Develop and pilot

0 An information audit is currently being con-ducted and this will determine future Registry procedures, policies and the use of an EDRM system.

Key Performance Area/Objective: Uphold good governance practicesProgrammes Measures/Outcome Performance Indicator target Actual comments

a) Uphold good corporate Governance practices

• Review of internal controls and compliance thereto

Report

- Strategic Business Unit 5 7

- Human Resource 2 3

• Review fraud prevention strategies and policies

2 1

b) Compliance with regulations and legislations

• Compile a compliance checklist Compliance 1 1 PFMA checklist developed in accordance with AG SA recommendations and to be implemented next financial year.

c) internal business Process

Corporate governance compliant institution

Risk and disaster management framework

Update Updated King III recommendations included, compiled and assessed quarterly.

Compliance plan Develop 1 As per compliance above.

Monitoring framework document

Pilot 1 Piloted

Security plan Develop Developed Developed

d) Quality, environment

and Safety

Maintain QES standards: Ensure that Mintek maintains its ISO 9001, 14001, 170025 OHSAS 18001 quality, environment, and safety accreditations, and meets or exceeds its targets for fatalities, Lost Time Injury Frequency Rate (LTIFR), and Client Dissatisfaction Frequency Rate (CDFR).

Accreditation Status Maintained Maintained Maintained

# of fatalities 0 0 Target achieved

Achieved Target for IFR

LTIFR< 0.8 0.7 Target achieved

Achieved Targets for CDFR

CDFR < 10 9.3 Target Achieved

e) energy Efficiency

Continual improvement in Energy Efficiency: Achieve energy saving initiative targets

# of kW saved in energy/power

300 kW 300 kW Target achieved and verified by Eskom.

2.4 INTERNAL BUSINESS PERSPECTIVE


Research, Development and TechnologyMintek provides world-class r&d expertise, testwork, and process optiMisation for the

precious and base metals, ferro-alloy, industrial mineral and uranium sectors on an international basis.

The activities range from initial bench-top investigations to full process flowsheet development and the

design, construction, commissioning, and optimisation of industrial plants.

Mintek is strongly committed to delivering high-quality results within strict constraints of budget and time-frame. to this end, our engineers, scientists and technicians work in close liaison with clients and their engineering contractors, who are encouraged to actively participate in project planning and testwork. This interaction enables clients to discuss issues as development work moves forward, and increases Mintek’s own capabilities by drawing attention to areas that require focused and applied R&D. The new knowledge is then fed back into client-oriented services.

17

1. Production of nanomaterials by electrospinning.

2. Flotation testwork on a PGM ore.

3. Tapping Mintek’s ConRoast DC arc furnace.

4. Bioleaching columns.

5. Resin-in-pulp adsorption using MetRIXTM technology.

Mintek also undertakes medium- and long-term strategic applied R&D, which is aimed at building the organisation’s science and technological base and developing new technologies and products that will convey benefits industry-wide. This activity is funded mainly by the state science vote (parliamentary Grant) to Mintek as a science council, and also through supplementary sources such as bilateral agreements and other funding and donor agencies. Most of the projects in this category are undertaken as joint ventures or in collaboration with other research institutions, including local and overseas universities, professional bodies, and industry partners.

1 2 3 4 5

Research, Development and Technology


Gold IndustryAuTEK – developing new industrial applications for gold

project autek, the collaborative r&d initiative between Mintek and south africa’s three

Major Gold producers, is now in its tenth year. The project has three main focus areas, namely,

catalysis, nanotechnology, and biomedical applications. in addition to the sponsorship provided by its

industrial partners, Project AuTEK has been awarded THRIP funding for a third consecutive year, which

has enabled the acquisition of cutting-edge equipment to further enhance in-house capabilities.

Biomedical programme

the hiv programme forms the primary focus of the autek biomed programme, jointly funded by harmony Gold Mining company limited and Mintek. the programme conducts in-depth research into the design and discovery of novel gold-based compounds that inhibit hiv replication. research at Mintek, supported through collaborations with various university groups, focuses on developing new assays, elucidating the mechanism of action of gold-based compounds, rational design of novel inhibitors for specific HIV targets, and screening compounds for potential activity.

assay development is undertaken so that novel compounds can be biologically evaluated for anti-hiv activity. autek biomed has

Gold Industry

1 2 3 4

1. Resin-in-pulp pilot plant.

2. Gold and silver granules produced by the MinataurTM hydrometallurgical refining process.

3. Gold South African Reference Material.

4. Resin-in-pulp testwork for gold recovery.

18


optimised and validated an assay to identify inhibitors of hiv-1 integrase. hiv-1 integrase, an enzyme fundamental for hiv-1 replication, is studied extensively internationally, but has featured in south african research activities only recently. as the only local research group to have expressed and isolated hiv-1 integrase, autek biomed is in a prime position to supply reagents and products to facilitate the research. Mintek plans to make hiv-1 integrase and an integrase assay kit available at an affordable cost to local researchers, and is investigating supplying the same to international users. Two further assays have been developed and are currently being used to obtain information that is critical in the drug discovery and development process.

Elucidation of the mechanism by which gold-based synthetic compounds inhibit HIV-1 replication will allow for the rational design of gold-based compounds and ensure focused, target-based research. Great progress has been made in this regard and it is expected that the full mechanism of action will be derived by mid-2010.

screening has been conducted on a continuous basis, and a further three gold-based compounds were identified as showing anti-HIV activity.

similar to the hiv programme, the primary objective of the cancer programme is to identify promising inhibitors of cancer for further development. During the period under review, university-based research groups continued investigations into the

synthesis of novel compounds and subsequent evaluation, and 26 compounds were submitted to international partners for preliminary screening. Two compounds previously submitted to the National Cancer Institute (NCI) progressed to in vivo hollow fibre assays, which reflects an advanced stage of preclinical development and the results from one of these compounds were sufficiently encouraging to warrant further development.

Most of the research activities under the malaria programme take place at the University of Cape Town (UCT), with Mintek acting as the link to development of promising results. Malaria screening was conducted at three institutes: the Department of Medicine, division of pharmacology at uct, the london school of hygiene and tropical Medicine (lshtM), and the department of Medicine, san francisco General hospital, and the university of california at

Gold Industry

1. Gold nanoparticles of different morphologies produced by using proteins as a biological template.

2. Optical sorting of a gold ore.

3. The new Matrix Cynoprobe for on-line measurement of cyanide in environmental aquatic samples.

4. The advanced gold leach facility.

1 2 3 4

19


San Francisco (UCSF). A total of 93 submissions were made, and the interpreted results are expected mid-2010.

representatives from Mintek participated in the cost action D39 Workshop held in Debrecen, Hungary, in September 2009. COST (the European Co-Operation in the field of Scientific and Technical Research) is an intergovernmental framework that supports the networking of research institutions across Europe, and more recently non-EU countries. Action D39 is a network of researchers focusing on the use of metals in medicine.

In 2010 two new M.Sc. bursars and two Ph.D. bursars joined the autek biomed programme, and one existing bursar progressed to a ph.d. the registered bursars currently include one post-doctoral, nine ph.d. and four M.sc. candidates. Graduates to date include seven Ph.D. and 13 MSc, with two Ph.D. and two M.Sc. graduations pending.

Catalysis programme

Project AuTEK Catalysis, which is a joint venture between Mintek and angloGold ashanti, continues to advance the commercialisation of gold-based catalysts. the programme is now entering its tenth year of funding and employs a total of eleven researchers (three engineers, six chemists and two technicians). AuTEK also hosted two Mining Qualification Authority sponsored candidates, and itself sponsored four students doing postgraduate studies in catalysis who are based at South African higher education institutions.

The programme is divided into two legs - namely the research component (aimed at discovering new catalyst materials and identifying chemical reactions of potential industrial use, and solving specific problems such as catalyst deactivation), and the development component (focused on the scaled-up and production of gold catalysts, developing applications, marketing the catalysts to potential end-users, and developing a “screening network” of academic and industrial researchers that test the catalysts in many different applications). in terms of products AuTEK offers three “standard” catalysts: 1wt% gold mounted on titiania, zinc and alumina supports, which are marketed under the name aurolitetM.

In the 2009 Annual Report it was mentioned that AuTEK had completed the upgrade of its pilot plant and as such had increased its production capacity. this year the focus has been on quality and assurance, and the installation and commissioning of a programmable logic control system as well as the development of specialised analytical techniques that have allowed improvements in reproducibility and the precious metal mass balance. In the period under review, approximately 70 kilograms of aurolite was sold to end-users for application screening.

Marketing efforts in conjunction with the World Gold Council, and the distributor streM chemicals (usa), continue to promote the use and screening of autek’s aurolite range of gold catalysts by industrialists and academic researchers. More than 80 AUROlite test samples were distributed by STREM in the financial year. As

a result, aurolite catalysts were featured in at least six peer-reviewed publications.

Gold supported nanoparticles are active and selective catalysts for the oxidation of various hydrocarbons using molecular oxygen. this is in contrast to current enzymatic methods or methods that involve stoichiometric oxygen donors, which result in environmentally harmful by-products or poor activity/selectivity. AuTEK is continuing work on the oxidation of glycerol to glyceric acid (a potential polymer feedstock), tartronic, oxalic and glycolic acids. Glycerol is a byproduct from biodiesel, and due to increasing bio-fuel production it is estimated that as much as 500 000 tons of this “feedstock” may be available globally per annum. Studies have indicated that a gold-catalysed route would have fewer processing steps, and lower capital and operating costs, compared with the conventional enzyme-catalysed process. Mintek has modelled the reaction and experimentally optimised various parameters. One important finding is that the product spectrum is influenced by both the morphology of the gold nanoparticles and the acid-base properties of the catalyst support. the four oxidation products have been separated by various techniques, and work is continuing to refine the economic assessment of the process with the aim of finding a commercialisation partner.

Product development work is continuing in-house, and in some cases in conjunction with SME partners. A major area of investigation is respiratory protection (gas masks), and integration of autek’s aurolite co oxidation catalysts in these systems continues. autek is also involved in developing catalytic materials that show enhanced resistance to deactivation, for long term CO oxidation applications such as air purification, fire protection, and mine refuge stations.

Another area where catalysis work has continued is in the Precious Metals Development Network (PMDN) of the DST’s Advanced Metals Initiative (AMI). In this programme Mintek is now focused on the development of a new class of gold and gold-palladium based catalysts for the epoxidation of propene to propene oxide, which is a very valuable intermediate chemical feedstock. The work is carried out in a three-way collaboration with Sasol and cardiff university, and the past year has seen the secondment of one Mintek researcher to cardiff university for a one-year post-doctoral fellowship sponsored by Sasol. Valuable results were obtained that have opened a new direction in the epoxidation process, and each of the partners will now investigate different aspects of the way forward.

Nanoscience and technology programme

the primary objectives under the nanoscience and nanotechnology programme are the development of nanostructured materials and nanominerals and their applications in health (therapeutics and diagnostics) and water (monitoring and remediation) sectors. the activities focus on a number of issues including the development of research platforms, encouraging and promoting the formation of collaborative

Gold Industry20


networks, addressing human capital development and bridging the “innovation chasm” by translating the research outputs into products and technology. all these activities are co-ordinated within the two major programmes in Mintek’s Advanced Materials division (aMd) - project autek (Goldfields/Mintek) and the dst/Mintek nanotechnology innovation centre (nic).

while project autek focuses on the development of gold nanotechnology, the nic focuses on the broader area of nanotechnology application in health and water. Through the NIC, formal collaborative networks have been established with three Universities. The University of the Western Cape and rhodes undertake and co-ordinate research activities in health (therapeutics and diagnostics), while the University of Johannesburg is involved in the field of water (monitoring and remediation). Mintek, the hub of the nic, hosts the nanominerals platform and all the development activities of the nic. the water research commission (wrc) and the Medical research council (Mrc) form an integral part of the nic and provide advice to the research and development thrusts to address relevant south african priority areas in water and health respectively. Good progress has been made during the first funding cycle (2007 - 2010: Phase I) of the nic. a total of 93 post-graduate students (14 honours, 35 M.sc., 30 Ph.D. and 14 Post-doctoral) were involved at the NIC Research Units. About 90 per cent of these are previously disadvantaged individuals, and 52 per cent are female students. Various semi-commercial products have been developed, such as nanomaterials or - particles, bioconjugates, and point-of-care (poc) prototype diagnostic devices. A total of 216 contributions were made to the international nanoscience community in the form of 125 journal publications and 91 conference papers/posters.

systems of biomolecules conjugated onto gold nanoparticles of various sizes have been prepared and are extensively used in the optical diagnostic programme, which focuses on the development of lateral flow POC tests for early detection of human and animal diseases of importance in south africa. tests for TB, malaria and brucellosis (the latter in conjunction with the onderstepoort veterinary institute (ovi) have been developed to proof-of-concept stage. one of the current highlights for the Unit was the successful attachment of the Rift Valley Fever (RVF) antibody to gold nanoparticles. work on the magnetic core-shell fe3o4-au nanoparticles complements the gold-based systems in the optical diagnostic platform. a long-term study on the effect of various storage regimes on the stability of both the conjugates and POC kits was started recently and will form part of the validation processes.

some of the projects emanating from the biolabels platform are undertaken at the University of Pretoria, in which synthetic drugs are attached to gold nanoparticles. these nanoparticle systems are assessed for their effects on cancerous tumours in in vivo studies. a project on the use of gold conjugates to inhibit the growth of new blood vessels in adipose tissue (fat tissue) is under way in collaboration with the MRC.

the electrochemistry programme focuses on the development of sensors for the early detection and monitoring of diseases

in animals and humans, as well as water-born pollutants. electrochemical sensors, in contrast to the optical devices, are important in that they yield both quantitative and qualitative results.

Mintek and the node at the university of johannesburg are developing nanostructured membranes and composites to address micro-pollutants in water. This research is targeted specifically at those pollutants and viruses that current technology is unable to remove. The work has led to collaborations with the university of california, los angeles, (ucla) and the university of Ben Gurion of the Negev, where collaborative work is been undertaken by researchers from both Mintek and the university of johannesburg.

the synthesis of gold nanoparticles and nanoplates using proteins as a biological template has been successfully demonstrated on laboratory-scale at Mintek. a variety of morphologies such as triangles and hexagons can be reproducibly synthesised. current efforts are focused on separating the particles according to size and shape and demonstrating larger-scale synthesis of the particles before investigating potential applications.

the construction of a r13-million advanced cleanroom facility (iso 3), supported by the department of science and technology, is scheduled for completion in December 2010. The facility will enable Mintek to develop and fabricate systems and products under current Good Manufacturing processes, and also to meet the required Good laboratory practice (Glp) and (iso) standards for medical devices.

Gold process testwork

a large number of investigations into oxygen demand and its effect on the cyanidation process were conducted on gold-bearing sulphide ores for Maelgwyn Mineral Services Africa.

Cyanide diagnostic leach tests were conducted on various gold-bearing materials from a number of gold processing plants, including:

• Blyvooruitzicht and Benoni tailings (DRD Gold Ltd);

• Kwekwe Mine roasted tailings dump material (Minerals Marketing Corporation of Zimbabwe - MMCZ);

• ChemWes flotation tailings (First Uranium);

• Elandsrand Gold Plant residue (Harmony Gold Mining Company Limited); and,

• New Kleinfontein Gold Plant feed material (Gold One international).

Process optimisation investigations were carried out on plant feed and residues from Gold fields’ driefontein and south deep gold plants, and cyanidation amenability testwork was also conducted on copper-bearing tailings from tsumeb in namibia.

Screening, comminution and cyanidation tetstwork was carried out on a bulk sample of “free dig” surface material from Shanta Gold limited’s chunya project in tanzania.

Gold Industry 21


A new-generation Mikrosort® secondary optical sorter from Commodas, capable of throughputs of up to 100 tons per hour at a feed size range of 20 to 80 millimetres (depending on the mineral composition) was commissioned at Mintek. A key feature of the new facility is its ability to recycle the products back to the feed, so that throughput tests can be conducted to specify the performance under various loading conditions. the sorter has been tested extensively on gold ores, particularly waste rock dumps as well as on underground ore, with efficient, cost-effective results demonstrated. As a result of the merger between commodas and ultrasort, a diamond sorter, has also been commissioned on site at Mintek.

Research and Development

Mintek has commissioned a new advanced gold leach facility aimed at optimising the design and operation of gold recovery circuits from both the environmental and economic standpoints. the fully instrumented mini-plant is designed to supplement the widely-used bottle roll technique for gold amenability testwork by allowing the leaching kinetics of the target metal and the environmental parameters to be monitored in relation to the process conditions. the environmentally harmful elements such as cyanide, arsenic, and heavy metals are tracked in “real time” as the leach progresses. Understanding how the chemistry of the process changes in response to variations in the controllable leach parameters will enable Mintek to improve leach plant designs to meet environmental protection standards without compromising gold recovery.

It is known that many of the novel processing techniques such as high pressure grinding rolls, ultra-fine milling, and high shear oxidative leaching have positive impacts with regards to gold recovery. What is less clearly understood are the beneficial or detrimental side effects when taking sustainability issues such as water recyclability into consideration. Efforts have been directed to include these aspects in the leach test design in order to try and identify the process route with an overall best score rather than focus on recovery only. the most important issues, other than straightforward gold recovery are cyanide, thiocyanate, arsenic, mercury (mainly as a result of reprocessing old tailings deposits), and discharge salt loads, as well as overall water and power consumption.

the projects conducted so far include investigating leach dynamics under different oxygen management strategies. a key finding is that the metallurgy and leach dynamics are frequently very specific to the mineralogy of the sample, and to the methods of comminution and concentration employed. For example, fine grinding can increase the leaching rate of gold, but may also mobilise more cyanide-consuming minerals, in which case staged cyanide additions would be beneficial. The leach dynamics can also be influenced by the early or late formation of weak acid dissociable (wad) cyanide species.

Some of the larger projects undertaken demonstrated the benefits of focusing on gold dissolution, but also more aggressively on reagent consumptions and resulting sustainability issues in order to identify viable options at an early stage.

the subject of oxygen management during gold leaching has received increased attention. Mintek has worked successfully in collaboration with outside consultants on clients’ projects aimed at defining the actual oxygen need in relation to target ores and variations within these, and will endeavour to establish a centre of excellence around this topic in collaboration with gas suppliers.

An area of renewed focus is the question of geochemical stability of tailings with respect to issues such as arsenic (and almost certainly to follow) uranium leaching under differing environmental conditions.

Mintek is continuing with a desktop study to develop a holistic view of gold processing. This project, which is funded through the Science Vote, is considering various unit operations (ultrafine milling, high-pressure grinding rolls, gravity, flotation and sequential flotation, ore sorting, alternative lixiviants, carbon/resin adsorption, pre-, bio- and pressure oxidation, from the point of view of both gold recovery and sustainability (power, water usage etc.).

Cyanide management

Mintek participated in a gap and full ICMI certification audit on sasol polymers’ Midland cyanide production and transport facility, resulting in the re-certification of both cyanide-related businesses (the cyanide transport section of Sasol Infrachem was the first global transporter to be re-certified under the code). Mintek took the role of Technical Expert Auditor in these exercises, with Eagle environmental as lead auditor. a limited pre-audit site assessment targeting the cyanide levels at process, backfill and TSF (Tailings Storage Facility) levels was conducted for the Harmony Gold Mining company limited kusasalethu gold plant.

Compliance-based analytical service work continued throughout, albeit at reduced levels due to the increasing logistical constraints.

in response to clients’ needs, the focus at Mintek has shifted from straightforward compliance targeting to process enhancement by addressing underlying issues such as excessive reagent consumptions and improved plant control. this has resulted in a number of collaborative projects involving site- and laboratory test work.

In association with an independent consultant, the influence of fine milling and oxygen management on cyanide consumption were investigated for Randgold Resources’ Tongon project, to determine the size of oxygen plant needed. process simulation was also carried out on two types of ore from the Massawa project, and a second phase of work may be undertaken in 2010.

Gold Industry22


Platinum Group Metals Industryunder the strateGic alliance between jubilee platinuM and sylvania resources, a smelting

trial was conducted in Mintek’s ConRoast demonstration smelter on low-grade PGM concentrate from

sylvania’s chromite tailings recovery operations.

Approximately 99 per cent of the PGMs were recovered from the concentrate, which contained an initial 85 grams per ton precious metals and 7 per cent chromium. sylvania and jubilee plan to trial-smelt low grade concentrates from other dump operations, as well as concentrates produced from a bulk sampling programme at sylvania’s Grass valley platreef project in the northern limb of the bushveld complex.

Extensive comminution, heavy media separation, and flotation testwork was carried out in support of the feasibility study for northam platinum’s booysendal project in the eastern bushveld Complex. The study was concluded in the last quarter of 2009. Northam plans to develop the project using a modular approach, with the first stage producing some 130 000 ounces platinum, palladium, rhodium, and gold per annum.

PGMs Industry 23

1. Physical vapour deposition apparatus for applying sub-micrometre films of precious metals.

2. Pilot plant flotation exercise for a PGM project.

3. Atomisation of platinum to produce material for powder metallurgical applications.

4. Tapping PGM-bearing alloy from the ConRoast demonstration smelter.

1 2 3 4


In regard to Sheba’s Ridge, further work is planned to optimise the concentrator design using a simpler flowsheet.

Laboratory-scale comminution and flotation tests were conducted on several hundred kilograms of Merensky and UG2 core samples from Nkwe Platinum’s Garatau project, in support of the bankable feasibility study led by twp projects.

The first stage of testwork was completed to develop a metallurgical flowsheet for the recovery of PGMs from chromite tailings for pan african resources’ phoenix chrome tailings retreatment project. A similar project was done to investigate the recovery of pGMs from chromite spiral plant tailings for tharisa resources.

Process optimisation investigations were completed for Sylvania resources on the steelpoort, Millsell, Mooinooi, and lannex chrome tailings retreatment plants, particularly to gauge the effectiveness of stirred media milling in increasing pGM liberation and recovery. Work is ongoing on the Doornbosch and Tweefoontein operations.

Feed characterisation, laboratory testwork and a short pilot-plant run were conducted to recover PGMs from Impala Platinum’s Merensky reef tailings dams. the company plans to build a recovery plant after completing its shaft 17 and shaft 19 projects.

Significant effort (funded by the Science Vote) has been applied to assessing variability of UG2 ores from various parts of the Bushveld Complex, with a view to understanding the effect of regional variations on metallurgical performance. the current phase of the work will ultimately be incorporated in a Ph.D. thesis.

PGMs Industry

PGM Characterisation

A major project has been running since 2008 on the automated characterisation of PGMs, particularly grains less than 10 micrometres in size (which are typical of UG2-type ores) using the scanning electron microscope (SEM), with the focus on increasing the reliability of the data and capacity development. Coupled with this, quality assurance and control procedures are evaluated to ensure quality criteria are met.

An automated SEM study was undertaken of the PGM distribution across a UG2 primary rougher circuit, where about 80 per cent of the PGM recovery takes place, to investigate whether flotation characteristics can be adequately described using mineralogical parameters such as liberation index, sulphide-gangue relationships, and size distribution. It was found

1. A bulk sample of platinum ore arrives at Mintek for process testwork.

2. A cascade of circular flotation cells.

3. Mintek’s 1 ton per hour pilot flotation plant.

4. Screening a pulped PGM sample.

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24


that flotation parameters describe the behaviour of the PGMs fairly well where large changes in PGM concentration occur, but larger data sets are required where the concentrate grades in adjacent flotation cells in a concentrate bank are similar. In particular, the complex interplay between floatable and non-floatable gangue, PGMs, and base metal sulphides needs to be taken into account.

Two M.Sc. research projects, one on the relationship between the PGMs and base metals and the other on data verification, will be completed during 2010. In order to handle the large volumes of data that are generated by the commercial automated SEM system, a processing application was developed through a collaborative effort between the Mineralogy and Measurement and control divisions, that takes outputs from the automated seM and converts them into more meaningful mineralogical parameters.

Building on this work, the metallurgical significance of the mineralogical parameters was further investigated, so as to provide a metallurgically-meaningful output. A new software application has been developed, which examines the mineralogical and other data on a grain-by-grain basis, and produces an output that highlights the metallurgical properties of the pGM-bearing particles, including quantitative information on the potential recovery and the reasons for recovery or losses. This, together with other diagnostic testwork, will assist the metallurgist to make informed decisions regarding the performance of a flotation plant.

Mintek has also developed an automated software tool towards the quantitative characterisation of pGM-bearing particles using a seM. the x-ray signals from the sample are analysed in a novel way, which allows accurate identification of small mineral particles at resolutions down to 1 micrometre. An agreement with an international manufacturer of SEMs was signed in 2009, for incorporation of this tool in their software, and a product is planned for completion in 2010.

A new state-of-the-art SEM was installed in the Mineralogy Division in 2009 to add additional capabilities and value to regular optical mineralogical investigations. the superior imaging capabilities of this instrument provide textural and grain size information via high resolution secondary electron (se) and backscattered electron (bse) images. the system also contains a high count rate energy dispersive spectrometer (EDS), which can provide quantitative chemical information on the minerals present in a sample, as well as high speed elemental x-ray maps.

In 2010, Mintek will be starting a project, in collaboration with the south african nuclear energy corporation (necsa), on the development of computer aided tomography (cat) methods, using x-rays and neutrons, to assist the optimisation of mineral beneficiation processes. This is aimed at obtaining three-dimensional information from mineral and plant samples to complement the two-dimensional information gained from current mineralogical techniques.

HySA/Catalysis Competence Centre

Mintek and its partners at the University of Cape Town (uct) have been appointed to establish the hysa/catalysis competence centre as part of the dst’s national hydrogen and fuel cell technologies research, development and innovation strategy. in this past year, the centre at Mintek has seen the arrival of four fuelcon fuel cell test stations, four fuel cell test fixtures, a hydrogen generator, and an ultrasonic spray coater. This equipment will provide HySA/Catalysis with a comprehensive facility for electrocatalyst and membrane electrode assembly (Mea) fabrication and fuel cell stack assembly.

The performance of single cells and short stacks will be characterised under simulated operating conditions applicable to each application that the hysa programme aims to develop, namely portable power, combined heat and power, and vehicle systems. The Centre has also procured a Joel 2100F high resolution transmission electron microscope (hrteM) that is set to be fully operational by June 2010. This instrument will be crucial in the characterisation of fuel cell catalysts at the nano-scale and will contribute significantly to the development of novel catalysts by the centre in future.

on the research front, the focus has been on the laboratory-scale preparation of platinum and platinum-ruthenium fuel cell catalysts for hydrogen and direct methanol fuel cells respectively. the aim of producing laboratory-scale materials of similar electrochemical performance to commercially available materials has been met, but these catalysts still require validation in actual fuel cells. Once validated, the focus will be on the development of methods for the industrial-scale production of these materials while maintaining the performance.

the development of novel catalyst materials continues in parallel, and attention has been placed on developing novel carbon aero-gels as supports for platinum catalysts. these highly porous carbons are expected to have benefit in the electrode catalyst layers by limiting gas diffusion resistance through the layer, which limits fuel cell performance.

Another area of research was a review and techno-economic evaluation of possible solar hydrogen production through water-splitting technologies based on photocatalysts and photoelectrochemical cells (pecs). the outlook for cheap hydrogen from direct water splitting by solar light (even with idealised systems) is poor, and the estimated costs of production (between US$13 and US$37 per kilogram H2) far exceed the accepted US$3 per kilogram target for a viable “hydrogen economy”. As such, the Centre has recommended that future hysa programme resources are not placed in r&d in this area. the study does not rule out other solar technologies such as solar-thermal electricity production coupled with efficient water electrolysers, but these require further techno-economic analysis.

PGMs Industry 25


Ferrous Metals Industrytestwork on the upGradinG of iron ore to support pre-feasibility and feasibility studies remained an important area of commercial interest. bench and pilot scale studies for the pietersburg iron Company on the upgrading of materials from a low-grade magnetite deposit focused on novel approaches to fines beneficiation, ranging from milling, using a high pressure grinding roll (HPGR), to sequential magnetic upgrading, to target specification. Iron ore from new projects tends to be of a lower grade, and the mineralogy of the deposits is more complex. Collaborative studies were conducted with Kumba on the SLon technology, during which Mintek developed the first phase of a user manual setting out operational parameters for various ore applications.

A large amount of small-scale tank and heap leaching testwork was conducted on samples from African Eagle Resources’ Dutwa nickel laterite project in Tanzania. The testwork showed that the ore is unusually amenable to acid leaching, with good nickel extraction, very low acid consumption and very fast leach kinetics compared to other nickel laterites around the world. Similar testwork is planned in 2010 for the Ngasamo laterite deposit, which is adjacent to the main Dutwa deposit. Acid leaching tests were also carried out on drill samples from Zanzui, African Eagle’s second Tanzanian laterite project, with results comparable to those from Dutwa.

prophecy resources has commissioned Mintek, in conjunction with Wardrop Engineering, to conduct metallurgical testing on a bulk sample from its lynn lake nickel sulphide deposit in Manitoba, Canada. The project, which includes flotation

Ferrous Metals Industry26

1. Casting grinding balls from an experimental alloy.

2. An industrial ferrochromium furnace.

3. Smelting a titaniferous magnetite concentrate.

4. Nickel matte tapping.

1 2 3 4


method development, production of concentrate, and tank bioleaching amenability and optimisation tests, is scheduled to start in the second quarter of 2010. The results, if favourable, will be incorporated into the planned feasibility study. a number of enquiries for similar work have been received, indicating renewed interest in agitated-tank bioleaching for on-site metal recovery, rather than producing concentrate for third-party smelting.

Mintek was approached by DRA Mineral Projects Ltd (dra) on behalf of uranium star corporation to evaluate a hydrometallurgical process route to recover vanadium from the Green Giant vanadium deposit in south western Madagascar. The work consisted of mineralogical characterisation (including x-ray diffraction, optical microscopy and scanning electron microscopy), atmospheric acid and alkaline leaching, an

evaluation of the potential for upfront pre-concentration by physical separation techniques and flotation.

A 200 kilowatt smelting test in a DC furnace was successful in producing significant quantities of silicon metal for the first time. The aim was ultimately to develop an improved method of producing solar grade silicon. However, owing to the introduction of significant contamination by metallic iron during tapping, it was concluded that this route is not worth pursuing further.

A smelting test on more than 25 tons of nickel concentrate successfully demonstratedthe beneficial effects of careful control of the operating conditions on the overall process performance. The 3.2 megavolt-ampere DC furnace was operated in submerged-arc mode instead of with an open arc, and with a “black top” of unreacted feed material on top of the molten slag, so as to simulate

a production-scale AC furnace. This work constituted the second phase of an investigation that was begun for Xstrata Nickel in 2008 (Annual Report 2009).

Simulation work using Mintek’s ROSES electrode temperature profile simulator has shown that it should be possible to use a Söderberg self-baking electrode in a DC furnace, with resulting savings in electrode costs. A self-baking electrode was pilot-tested in the 3.2 megavolt-ampere DC furnace for more than eight hours at temperatures up to 600ºC. The electrode displayed good mechanical properties, and there were no major differences in the arc characteristics compared with pre-baked graphite electrodes. Using a direct current would be expected to result in more even baking and less stress on the electrode, which is an important consideration when using very large-diameter electrodes.

Ferrous Metals Industry

1. Wet low-intensity magnetic separation of iron ore.

2. Laboratory-scale flotation testwork.

3. Testing a Söderberg self-baking electrode in the DC furnace.

4. The Söderberg electrode after removal from the furnace.

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A Ph.D. study was completed on the dynamic modelling of the arc in a DC furnace using computational fluid dynamics, and the modeling results verified using high-speed photography. A key finding is that there are distinct short-term transition effects, of the order of less than one millisecond, in the behaviour of the arc. these are related to the furnace current and arc length, and could potentially have an effect on power supply control. Mintek has started a collaborative project with Zurich-based power and automation technology group ABB, who are interested in applying the results of the research to the design of improved power supply equipment for DC furnaces.

The site for a new X-ray fluorescence sorter from Rados SA of russia is being prepared, and the unit is expected to be operational by the end of July 2010. This is a complementary technique to optical sorting, based on online X-ray fluorescence analysis of the surface of each particle followed by physical sorting rather than pneumatic ejection. the main areas of focus that differentiate this sorter from optical or x-ray transmission sorting include dry upgrading of manganese ores to a specified manganese-to-iron ratio, and detection and sorting of coarse kimberlite ore from waste. The direct surface assay by XRF scan has also found interest in uranium ore upgrading and waste removal from sulphide orebodies.

Process Modellingthe latest developments in modelling of physical separation processes include circuit simulations of wet low-intensity magnetic separation (liMs) to produce high-purity magnetite of various size and grade specifications. The modelling of spiral and shaking table separators has made extensive use of seM imaging to incorporate feed and product size, density, grade and shape data into a single model framework.

Improved Grinding Mediathis dst-innovation fund sponsored project to develop a cheaper and more cost-effective grinding ball for use in the PGM mining industry (Annual Report 2009) progressed from the pilot-plant scale production of balls at Mintek to industrial-scale production at Prima Industrial foundry in mid-2009. The original list of fifteen promising chemistries was reduced to four after having passed all the performance gates. Batches of about 500 balls of each chemistry were produced at Prima over a period of five months. Thereafter, 300 balls from each batch were selected, marked and weighed in preparation for Marked Ball Test (MBT) experiments in one of the grinding mills at anglo platinum’s union section concentrator in north west province. the Mbt experiments, which are the penultimate phase of the project, will begin in mid-June 2010, and will be followed by Full Mill Charge (FMC) trials with the most promising chemistry for a period of six months. After this final phase of the project, commercialisation will proceed in earnest.

Foundry Support

In the 2009/10 financial period, Mintek was awarded a R1-million project by the National Foundry Technology Network (NFTN), an initiative of the department of trade and industry (dti), to provide technology and provide manufacturing assistance to ten sand foundry firms. This project was undertaken under the auspices of the Sand Foundry Improvement Programme and was executed in partnership with the University of Johannesburg’s Metal casting technology station, freiberg technical university in Germany, the federal association of the German foundry industry, and the automotive industry development centre.

The outputs from this project showed that the South African foundry industry is critically under-resourced in key areas such as skills development and training, access to world-class testing facilities and R&D centres to support new product development, and assistance with the optimisation of production processes by resolving process and material flow challenges. Technical assistance in these key areas will help the industry to become a world-class provider of foundry products to both the local and export markets. Mintek has already begun responding to these industry needs by initiating foundry-related r&d programmes in areas such as modelling and simulation of foundry processes and by providing customised metallurgical testing services of castings through the Metals technology centre (Mtc) at Mintek.

Materials Testing

Mintek has begun a science vote-funded project to expand its capabilities around materials-related issues in the petrochemical industry. these include metal dusting and naphthenic acid corrosion. the aim of the naphthenic acid corrosion project is to develop a test methodology to evaluate the extent of corrosion that can be anticipated when crude oils containing various types of naphthenic acid are processed. This will greatly reduce the corrosion risks associated with processing opportunity crude oils. the Mtc has the only laboratory in south africa for investigating the susceptibility of alloys to corrosion and hydrogen-induced cracking under the “sour service” (wet hydrogen sulphide environments) that are commonly encountered in this sector, and most materials used in the local petrochemical industry, as well as seamless pipes that are manufactured in South Africa for export, which are tested in this facility.

Ferrous Metals Industry28


Non-ferrous Metals Industrythe biotechnoloGy division transferred into preMises at Mintek that were previously leased by

a tenant company. The comprehensive laboratory and pilot plant facilities are particularly well suited

to biotechnology applications, particularly extended heap-leach simulation in temperature-controlled

columns up to 6 metres in height. The move also facilitates the expansion that is required to undertake

minerals-related biotechnology research in new areas.

Negotiations were concluded and a contract signed with the national iranian copper industries company (nicico) for the full-scale implementation of Mintek’s high-temperature heap bioleaching technology at their darehzar copper mine near the sarcheshmeh copper complex in iran. the engineering specifications are now being drafted, after which NICICo will invite tenders for Engineering, Procurement, Construction and Management (epcM). this technology is the result of the combined efforts of Mintek and nicico over a period of several years, under the terms of a collaboration agreement signed between NICICo and Mintek in 2004.

a large-scale project for a major multinational mining company to test the amenability of a chilean copper ore to heap

Non-Ferrous Metals Industry

1. Six-metre columns for heap-bioleach simulation studies.

2. Solvent extraction of copper.

3. Pure copper cathode produced by electrowinning.

4. Borehole core samples from a copper deposit in central Africa.

5. Pilot plant for removing iron and manganese from base metal solutions using an air/SO2 gas mixture.

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bioleaching is under way, and will run until the first quarter of 2011. A similar programme of testwork on a refractory chalcopyrite copper ore for japan oil, Gas and Metals national Corporation (JOGMEC) will be completed early in the second half of 2010.

the MetRIX resin-in-pulp technology was evaluated for the recovery of copper and cobalt from residue dumps. the investigations also included the potential for producing copper metal and an upgraded cobalt product from the ion-exchange eluate. a preliminary techno-economic evaluation of an ion-exchange fibre tested for the removal of copper from cobalt electrolyte showed major potential savings compared with granular ion-exchange resin.

Systematic investigations spanning several years have now culminated in the formulation of optimised process parameters that can be applied with confidence for tank bioleaching of chalcopyrite. the process options include the use of thermophilic (high-temperature) organisms and the use of controlled redox conditions with moderate thermophiles.

extensive investigations have been conducted into the microbiology of heap bioleach processes, in an attempt to elucidate the correlation between microbial cell types and numbers and the changes in the chemical and physical processes in the heap over time. the need to understand microbial succession in heaps has become more critical with the advent of high-temperature heap leaching of chalcopyrite ores, since preservation of heat within the heap is essential in order to overcome the passivation of chalcopyrite. a research programme has started on the geomechanical and geochemical properties of ores suitable for heap leaching, which is aimed at acquiring more fundamental information for improved modelling and interpretation of heap leach processes.

the characterisation and production of industrial biomolecules, such as extracellular polysaccharides (EPS), and their wider process applications, is being investigated. EPS, which is produced by bioleaching micro-organisms to facilitate cell attachment to mineral surfaces, plays an important role in heap leach processes, and is also intimately involved in the microbial mechanisms for iron and sulphur oxidation. very promising results have been obtained at the laboratory scale using eps as a bioflotation reagent, and current testwork is aimed at demonstrating the process at a larger scale.

Further flotation work was undertaken for Discovery Metals’ Boseto copper-silver project in Botswana to confirm the grades and recoveries for the bankable feasibility study.

dense media separation to remove barren material, and flotation of oxide and sulphide samples, was carried out for the Omitomire copper project in Namibia. A second phase of work on ore variability is planned for 2010.

Laboratory work was started on flowsheet optimisation for the bisha gold and base metals project in eritrea for nevsun Resources, and will continue into 2010.

Laboratory-scale testwork was conducted on a pyrometallurgical method to process zinc and lead oxide ores from the accha and yanque projects in peru for Zincore Metals. The results showed that reductive roasting could be used to achieve recoveries of up to 96 per cent of the zinc and 88 per cent of the lead. previous testing of the accha district ores, which focused on producing a flotation concentrate (Annual Report 2008), met with limited success. This work was conducted under the supervision of Metallicon process consulting.

research on hematite precipitation from ferric chloride liquors under atmospheric conditions, using a potentially energy-efficient hydrometallurgical processing route, showed not only that hydrochloric acid as reagent can be successfully regenerated, but preliminary investigations in industry have indicated that the hematite product also has the potential to be saleable as a high-value pigment for paints rather than merely as feed to iron- and steelmaking processes.

advances have been made in the understanding of the fundamental chemistry pertaining to the oxidative removal of both iron and manganese from base metal value streams using an air/so2 gas mixture as reagent. this has also been successfully confirmed on a 10-litre pilot scale setup. Mintek plans this year to scale up this circuit to a 20 cubic metre fully automated plant. testing of the process on a larger scale is expected to attract collaboration from industry, with the aim of implementing the process in an energy-efficient form commercially.

A 10 kilogram per hour bubbling fluid-bed chlorination reactor for producing titanium tetrachloride (TiCl4) was constructed and commissioned, and is currently being modified to enable continuous sustained operations. A Kroll reactor with a capacity of 1 kilogram per batch has been commissioned, and the first test run to produce titanium sponge is scheduled for the second quarter of 2010. In previous work, titanium powder was successfully produced from commercial sponge by hydrogenation and milling, and was used to produce a range of titanium alloys by mechanical alloying, compaction and sintering. The next phase of work will involve alloy manufacture using sponge from the kroll reactor. Mintek also plans to test other reductants for producing titanium sponge, in addition to the liquid magnesium usually employed in the kroll process. this project forms part of the Light Metals Development Network of the DST’s Advanced Metals Initiative, which aims to stimulate the development of a primary titanium industry in south africa.

Non-Ferrous Metals Industry30


Industrial Minerals, Uranium and Diamond Industrylaboratory-scale coMMinution, flotation, and reaGent optiMisation testwork was carried

out on samples from Sephaku Holdings’ Nokeng fluorspar project in north-eastern Gauteng Province.

Two ore types – the Plattekop fluorite-hematite ore and the Outwash Fan placer-type ore – were

tested in order to maximise the concentrate grade. The work confirmed that a concentrate grading

of 97.2 per cent CaF2 can be produced. The optimisation process will continue in 2010. Sephaku

intends developing a mine producing 130 000 tons of acid-grade fluorspar per annum by 2012.

a project is continuing on the mineralogical characterisation of “semi-precious” (ornamental) minerals. This is aimed at assisting “second economy” miners to properly identify and grade material, and to establish a verification system by way of a certified trading chain.

The successful dry rejection of shale from coarse coals (<150mm >15mm) using x-ray transmission sorting has resulted in a full-scale chute-fed sorter being installed to clean steam coal at the Arnot power station.

An area of increasing interest is the beneficiation of phosphate. preliminary mineralogical investigative studies and bench-scale size distribution evaluation of phosphate deportment has been

Industrial Minerals, Uranium and Diamond Industry

1. The Kroll reactor for producing titanium sponge.

2. A laser-ablated diamond. Approximately 2.5 micrograms of material is sampled from each pit.

3. Titanium sponge produced in Mintek’s Kroll reactor.

4. Image analysis of a uranium-bearing sample.

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conducted on material from southern african deposits, and Mintek has started working on a number of additional phosphate upgrading studies on samples from angola, tanzania, Zambia and peru.

Uranium

as part of the current changes in global energy dynamics, the uranium sector has grown rapidly, particularly in southern africa. uranium-related activities have become one of the largest growth areas at Mintek. Many of the deposits under investigation are relatively low grade, and significant development effort has been expended on upgrading of the ore by techniques that include flotation, pre-sorting and gravity concentration. In addition, significant effort has gone into characterising the comminution behaviour of a range of ores, as this has a significant impact on the energy requirements and processing costs.

Agitated tank leaching testwork was conducted for the uranex nl’s Manyoni uranium project in tanzania as part of the pre-feasibility study managed by aMc consultants. the mineralisation consists of secondary uranium (schrockingerite and carnotite) in playa lake sediments. The results showed that uranium recoveries of greater than 90 per cent can be achieved within short time frames. A second phase of multidisciplinary testwork, which will include column tests for heap leaching amenability, has been awarded.

Agitated-tank and heap bioleaching testwork has been conducted on karoo-type (sandstone-hosted) and alaskite (Rössing-type) ores. Further metallurgical testwork in the form of column leaches was conducted for African Energy Resources in support of the bankable feasibility study on the chirundu uranium project in Zambia. Preliminary leaching testwork was completed on samples from the Mooifontein uranium prospect in the karoo for el nino Mining.

A modelling exercise was undertaken on the NIMCIX adsorption and elution columns at the trekkopje uranium project in namibia to determine the optimum operating cycles and predict the effect of operational changes on performance. a site visit was conducted to assist in optimising the operation, and recommendations made for future designs for the phase 2 (Midi) and phase 3 (Maxi) circuits. Mintek previously conducted process design for Trekkopje (Annual Report 2008), which is the world’s first uranium mine to use an alkaline heap leach process.

Physical beneficiation testwork was conducted on samples on uranium-bearing aeolian sands (the tubas red sand deposit) from Deep Yellow Limited’s Omaholea uranium project in Namibia. Scrubbing and attritioning resulted in 90 per cent of the u

3o8 being concentrated into 22 per cent of the feed. A second

phase of work will be conducted in 2010 on drill-core material from the INCA deposit, which consists of both primary and secondary mineralisation in granitic and metamorphic rocks. this work is being undertaken as part of the project feasibility study managed by snc lavelin.

comminution, mineralogical characterisation, and leaching testwork to determine ore variablity and optimum leach conditions were conducted on drill core samples from the SK orebody for Rössing Uranium. Mining of the SK orebody, which is about 1.5 kilometres east of the existing sj open pit, forms part of rössing’s expansion programme to increase production and extend the life of the mine beyond 2021.

A third phase of leaching and solvent extraction was completed for areva’s bakouma uranium deposit in the central african Republic. The work, which was conducted on a composited bulk sample, involved screening and milling, optimisation and confirmation of leach efficiencies, a bulk leach to produce slurry for solid-liquid separation (conducted by an external consultant) prior to solvent extraction testwork, and solvent extraction employing a two-cycle circuit. A slurry sample was prepared from the leach residue and synthetic raffinate for further environmental tests by Golder and associates

A bulk leach was conducted for Gold Fields, together with carbon-in-leach for gold recovery, as part of an investigation into a dump reclamation project in the free state, and a flotation exercise for Harmony Gold Mining Company Limited, with uranium extraction scheduled to follow in 2010. A mini-plant, including a Bateman Pulsed Column, was run for Rand Uranium.

Owing to the increase in demand for uranium resource evaluation studies, different lixiviants have been evaluated in investigations to develop a diagnostic leaching procedure for uranium. such a procedure could provide information about the amount of liberated uranium in a sample, and the fractions associated with different gangue minerals, which would assist in the development of the most appropriate extraction process and help predict plant performance.

The bioleaching of primary uranium ores has been shown to hold great potential, and several commercial enquiries have been received. tank bioleaching of uranium-containing concentrates and ores is also being revisited. Current test work is focused on the use of thermophilic organisms to accelerate the leach kinetics. the reaction proceeds through the oxidation of pyrite (either a natural constituent of the ore or added in the form of concentrate) to sulphuric acid and ferric iron, which then leaches the uranium.

intensive investigations have been conducted on the use of the MetRIX resin-in-pulp technology to recover uranium from low

32 Industrial Minerals, Uranium and Diamond Industry


grade pulps, with the evaluation of different RIP-grade resins and various process improvements.

the extraction of uranium in bateman pulsed columns is standard technology, but stripping is not conducted on full scale as yet due to the perceived risk associated with neutralisation inside the column. Stripping of uranium from Alamine 336 reagent was tested in a column 40 millimetres in internal diameter and 6 metres in height at Mintek in collaboration with Bateman, and the results confirmed that neutralisation in the column during stripping was effective. When some precipitate formed in the column, it re-disssolved prior to the streams exiting the column.

A project was begun to investigate the possibility of operating a true continuous countercurrent resin elution column. the main application of such a system would be in the uranium industry. Many systems that claim to be continuous are in fact batch-continuous, and are stopped periodically to allow resin withdrawal in a direction opposite to the solution flow. A true countercurrent elution process would offer enormous advantages in terms of savings on resin and capital costs, higher eluate grades (which are essential for uranium recovery by direct precipitation), and cleaner stripped resin (lower barren values).

Mintek has conducted an extensive testwork programme using the high-pressure grinding roll (hpGr) on uranium, gold and copper ores, with the emphasis on optimal integration of the technology in the comminution circuit in order to save energy and provide better liberation. Most projects have involved the quantification of downstream benefits. Mintek has developed a testwork procedure to quantify the competence of HPGR flakes generated and is actively involved in research aiming at predicting hpGr performance from piston die tests. a hpGr simulator is also currently being developed to predict hpGr performance and for use online to optimise hpGr performance.

Diamond Provenance Studies

the sa diamond and precious Metals regulator (sadpMr) is funding a project aimed at developing a method for determining the geological source of rough alluvial diamonds, based on a combination of their physical characteristics and trace element analysis. If successful, such a technique would help to curb theft and illegal mining, and assist in preventing “conflict diamonds” from entering the legitimate trade in accordance with the principles of the Kimberley Process certification scheme.

The SADPMR-Mintek Diamond Provenance laboratory was officially opened in June 2009. Method development for the trace element studies, using a laser ablation inductively

Coupled Plasma Mass Spectrometer (LA-ICP-MS), was carried out using a high-carbon based material from Macquarie university in australia as a standard, and morphological and fourier transform infra-red (ftir) spectrometry measurements have been completed on ten parcels of alluvial and kimberlitic diamonds from south africa, Ghana, the democratic republic of congo, and the central african republic. the ftir results, which provide information on the nitrogen content as well as the position of nitrogen in the diamond crystal lattice, were interpreted with the aid of deconvolution software provided by de beers’ diamond trading company (dtc) research centre and adapted for the Mintek spectrometer by the Measurement and control division. trace element analyses using the la-icp-Ms are currently being run on a select group of 30 elements known to occur in diamonds, including the rare earth elements, and will be completed in the second half of 2010.

Water treatment

Investigations of possible changes to the flowsheet of the Savmin process for ameliorating acid mine drainage suggest that the capital and operating costs can be reduced significantly by incorporating a novel technique for solid-liquid separation, making the process more cost-effective.

Another area of interest to Mintek that will be explored during 2010 is the bio-remediation of water and effluents. Typically, water-related environmental problems associated with polluting discharges from mines are due to acid mine drainage and leaching of contaminants into the groundwater. This will be an interdivisional project, and preliminary investigations of potential opportunities have begun in order to develop a focused research strategy.

Industrial Minerals, Uranium and Diamond Industry 33

mintek annual report 2010 Operations and Development

Operations and DevelopmentMintek transfers its unique technologies and products to industry by way of sales, technology licensing agreements, and through joint-venture partners and operating companies.these technologies and products include dc arc smelting, gold and base metal bioleaching, the hydrometallurgical refining of gold (MinataurtM process), various capital equipment items such as the Minfurn carbon regeneration furnace, Mintek’s extensive range of metallurgical process control and optimisation strategies based on the starcstM platform, and the south african reference Materials (SARM) series.

Mindev (Pty) Limited was created as a 100 per cent subsidiary of Mintek. the purpose of this vehicle was:• To establish a corporate entity to advance

and implement Mintek’s technologies commercially;

• To generate additional revenue for Mintek to supplement other sources of funding for research and development work into mineral beneficiation;

• To generate returns of at least 10 per cent real from the establishment of commercial operating entities;

• To enable more effective establishment of commercial ventures and greater participation by and technical involvement by Mintek; and,

• To identify potential commercial opportunities where Mintek’s technologies could give a competitive advantage.

the administration of Mindev has been

undertaken by Mintek employees through executive decision-making in senior management and support from the finance division. all such decisions were communicated and approved by the Mintek Board. In the financial year under review, there was virtually no activity in Mindev except for the last payment of the technology loan with Mogale alloys that was received in December 2009. Mindev would therefore be dormant from 1 April 2010.

ConRoast Development and Toll Treatmenttoll smelting of high-chromium pgM-bearing materials continued in the 3 megawatt dc arc demonstration facility. A total of 7160 tons of feed was treated in the financial year to 31 March 2010, producing more than 500 tons of PGM-containing products, with the PGM recoveries of typically 99 per cent. however, the throughput in the plant, which was upgraded in September 2008 to

1. Weighing a sample of uranium ore for analysis.

2. Bioleaching columns.

3. Minfurn furnaces are used for regenerating activated carbon in the gold, water-treatment and food industries.

4. A nuclear magnetic resonance spectro-meter, used to study the structures of potential gold-based therapeutic agents.

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34

a capacity of 2000 tons per month, was not as high as anticipated owing to difficulties in securing adequate supplies of feed material. The campaign was concluded on 30 March 2010. The development of the smelting technology is now complete, and Mintek is ready to support the commercialisation of the process.

mintek annual report 2010Operations and Development

In October 2009, Braemore Resources, Mintek’s partner in the commercial development of the conroast process, became a wholly-owned subsidiary of Jubilee platinum plc. subsequently, Jubilee and sylvania resources plc, whose principal activity is the recovery of pgMs from chromite tailings, agreed to form a strategic alliance to undertake pgM smelting and refining activities utilising the process.

Capital equipmentas a result of the large amount of iron-ore beneficiation testwork conducted over the past two years for tata steel on samples from iron-ore deposits in india, a laboratory-scale Mineral density separator (MDS) was designed and constructed for the company’s research and development unit. the Mds can be used to characterise ores into different density classes at densities exceeding 4.0, and to evaluate and predict dense-media and jigging plant efficiencies as well as to design and optimise processing plants.

tata is installing jigs and dense-media circuits in their newer plants, and the unit will assist the company to evaluate the appropriate beneficiation route for each orebody.

a Minfurn carbon-regeneration furnace was constructed and installed at the rietvlei water treatment plant near tshwane. the furnace, which has a capacity of 25 kilograms of dry regenerated product per hour, restores the efficiency of the granular activated carbon (GAC) that the plant uses to adsorb dissolved organic matter and the associated colour, odours, and tastes caused by the algae present in the water, before the final chlorination step in the treatment process. This is the first adaptation of the unique direct resistive heating technology to an area outside the gold industry.

a Mintek-designed and constructed electrowinning cell for the recovery of gold from ion-exchange eluate was delivered to engineering dobersek gmbh for a gold plant in russia.

Process Control Products

Furnace control

a furnstar-Minstral furnace control and optimisation system was commissioned at kazchrome’s aksu ferro-alloy plant in kazakhstan. the controller was originally supplied on a six-month trial, which enabled the plant personnel and management to fully assess the benefits of the technology,

and was subsequently purchased by the plant. The installation, on an 80 megavolt-ampere (MVA) ferrochromium furnace, was specifically adapted to interface with the secondary power factor correction employed at aksu, which allows the furnace to operate close to the MVA limit. kazchrome is part of the ferroalloy division of the eurasian natural resources corporation, and is the world’s largest producer of ferrochromium on a chromium content basis.

Minstrals were also commissioned on two 66 MVA ferrochromium furnaces at ASA Metals’ ferrochromium smelter near steelpoort in south africa’s Mpumalanga province. the controllers were implemented through a subcontract with tenova pyromet, who designed and supplied the furnaces. a further unit was installed on a 24 MVA ferromanganese furnace at assmang’s cato ridge Works, bringing the total at this site to four. the cato ridge installation included the roses electrode stress simulator and slipping modules. an upgrade to the latest Minstral version was carried out on one furnace at Xstrata alloys’ Wonderkop works, and another is in progress.

Work has begun on the development of an advanced energy management system to leverage Minstral’s advanced knowledge of furnace states and limits to ensure optimal use of available energy. The first plant trial will be in the second quarter of 2010. The system is aimed at enabling smelters to make full use of available power demand, and

1. Pilot plant testwork on a copper-cobalt ore from central Africa.

2. ASA Metals’ ferrochromium smelter near Steelpoort, where two FurnStar Minstral furnace controllers were commissioned.

3. Gold recovery testwork.

4. Copper electrowinning.

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mintek annual report 2010 Operations and Development

in the long term leading to more intelligent control, including strategies to minimise furnace disruptions so that the process is not disturbed if the furnace is shut down during periods of high demand. an Msc project has started on an improved technique for measuring electrode slip.

Milling and Flotation ControlA combined milling and flotation control installation was completed at a major base-metal concentrator in rajasthan, india. the project, which represents one of the largest process-control exercises undertaken by Mintek to date, was carried out in conjunction with Bateman engineering, and formed part of a contract executed by Bateman to expand the plant’s processing capacity by designing, constructing and commissioning a third concentrator stream. the control and optimisation project consisted of a Millstar Mill throughput optimiser on the primary milling circuit, and Model predictive control of the sump, cyclone feed, and cyclone overflow product size on the secondary mill, with floatstar level stabilisation, grade-recovery optimisation and reagent optimisation on both the lead and zinc flotation circuits. Mintek also played a major part in the performance tests.

in conjunction with dra, a floatstar level stabiliser was commissioned on the new 375 000 ton per month concentrator at nkomati nickel, which forms part of the phase-two large-scale expansion of the

nkomati operation. a further installation will be carried out on the old plant in 2010. level stabilisation was also commissioned on the Merensky circuit at platmin’s pilanesberg platinum mine, complementing the installation on the ug2 circuit that was completed in early 2009. Pilanesberg, South africa’s newest pgM producer, is expected to reach full commercial production in 2011. a flow optimiser was also purchased by northam platinum after a successful trial.

The first on-site trial of the Xanthoprobe online xanthate concentration meter started at the eland platinum mine. the instrument is aimed at optimising the addition of xanthate, which is used as a flotation collector. a trial installation of the froth camera, which is intended for use as low-cost flotation cell monitor, was completed on four flotation cells at Crocodile River platinum mine. The first commercial installations of both the Xanthoprobe and froth camera are expected in 2010.

Measurements from third-party flotation cameras were interfaced with the existing flotation grade/recovery optimiser at industrials peñoles’ tizapa plant in Mexico. also at tizapa, a new version of the particle size estimator, with online calibration incorporated, was demonstrated on the cyclone overflow.

A three-year service contract was finalized with Bhp Billiton for the Millstar and floatstar installations at Mt keith and kambalda in Western australia.

The flotation modelling tool (Annual Report 2009) has been developed to the stage where it can use data input from a pilot-plant run to predict the results of changes to the circuit. the method has been validated on two pilot plants at Mintek, and is now ready to be used in flowsheet development exercises. it is planned to eventually incorporate aspects of the model into the FloatStar flow and level optimiser modules. the mill simulator platform was completed and tested on plant data in conjunction with Mintek’s Mineral processing division.

initial investigations have begun into combining the Millstar and floatstar suites into a more global system. The benefits of such a combination would be the ability to establish the operating parameters for an entire milling and flotation circuit to give optimal performance.

1. Cuba’s Minister of Science visits the catalyst development laboratory at Mintek.

2. The upgraded pilot plant for producing AUROliteTM gold-based catalysts.

3. The control room at Cia Ferro Ligas da Bahia (Ferbasa) in Brazil, site of the one-hundredth FurnStar Minstral furnace controller.

4. Mintek’s control strategies are installed on milling and flotation circuits around the world, with the latest installation in India.

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mintek annual report 2010Operations and Development

Gold Circuit Controlsince its introduction to the market in 2004, Mintek’s Cynoprobe online cyanide analyser has gained world-wide commercial acceptance, with more than 50 installations in 14 countries, and is now regarded as essential equipment on gold plants that are signatories to the international cyanide management code.

seven cynoprobes, comprising two standard analysers for measuring free cyanide and five WAD instruments for both free and weak acid dissociable (WAD) cyanide, were commissioned at australia’s newest gold mine, newmont Boddington gold in Western australia, which began commercial production in November 2009. the instruments, which were packaged with a small modular laboratory, provide online measurements to control cyanide additions in the gold leach circuit, and to ensure that the cyanide concentration in the tailings is managed within the company’s and icMc targets. Boddington represents the largest single-site cynoprobe installation to date.

Two Cynoprobes (one standard and one Wad) were commissioned at the hidden Valley joint venture between Harmony gold and newcrest in papua new guinea. Wad instruments were installed on the cyanide destruction circuit at newcrest’s gosowong mine in indonesia, at oJsc Polymetal’s Varvarinskoye gold-copper mine in kazakhstan, at harmony’s phoenix tailings re-treatment operation in the free State goldfield, and at AngloGold Ashanti’s noligwa, West gold, and kopanang plants.

a Wad instrument, together with Mintek’s leachstar leaching control and optimisation suite for cyanide addition control and monitoring, was commissioned at iamgold’s Mupane gold mine in Botswana.

standard cynoprobe instruments were installed at Mineral holdings’ carosue dam, and st Barbara’s leonora operations in Western australia. saracen and st. Barbara use hypersaline process water – the latest Version 3 Cynoprobe incorporates design changes to the measurement cell that avoid the possibility of errors resulting from conductance and interference due to high levels of sodium chloride.

a new cynoprobe analyser, which extends the range of online cyanide measurement into the range required for monitoring of natural aquatic environments, has been developed to the prototype stage. laboratory results on standard samples produce a relative standard deviation of generally less than 10 per cent, and an error of less than 5 per cent, for free cyanide concentrations in the range of 10 to 500 parts-per-billion (ppb) . The instrument employs a measurement technique based on the ASTM D7237-06 standard, which involves separating cyanide from the matrix utilising gas diffusion across a Teflon membrane, followed by amperometric detection. as well as enabling lower concentrations to be measured. this technique completely eliminates the interferences associated with more complex ore types. the prototype instrument is undergoing field testing at Sasol infrachem -

Water and Waste (Midland effluent control) in Sasolburg, and the first commercial units are expected to be available towards the end of 2010.

Certified Reference MaterialsCertified Reference Materials (CRMs) are used in analytical laboratories throughout the world to calibrate instruments and ensure consistent results. the south african reference Materials (SARMS), which have been produced and marketed by Mintek since the mid-1970s, now number more than 110.

During the past financial year twelve standards were produced and certified, comprising one pgM ore, two pgM process standards, two iron ore, two vanadium slag, and five sulphur standards. The amounts of material ranged from 2 tons for the pgM ore to 30 kilograms for the sulphur standards. Materials were provided by aquarius platinum, african rainbow Minerals, and highveld steel. the sulphur standards were made from existing sulphide ore material available at Mintek.

1. The water treatment plant at Rietvlei.

2. One of the seven Cynoprobes installed at Boddington gold mine in Australia.

3. Kazchrome’s Aksu ferro-alloy plant, site of the first Minstral furnace-control installation in Kazakhstan.

4. The Minfurn carbon-regeneration furnace at Rietvlei.

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mintek annual report 2010 Mineral Policy and Sustainable Development

Mineral Policy and Sustainable DevelopmentDuring the 2009/2010 year, Mintek’s Mineral econoMics anD strategy unit (Mesu) re-affirmed its place as a strategic partner in the fields of mineral economics, mineral strategy, mineral development and optimisation, environmental impact assessments and rehabilitation as well as financial and statistical evaluation, for a wide cross-section of the minerals community.

At the beginning of the financial year, MESU was restructured to more effectively address the needs of the greater minerals-based community, by streamlining the operating sections into the Mineral Economics Section, which incorporated the structure of the economic, mineral economics and certain of the environmental skills and experience, while the Regional Mineral Development Section incorporated the policy, strategy, sustainable development, inputs and infrastructure-related knowledge and expertise.

Mineral Economics and Strategy

MESU has solidified its relationship with Japan Oil, Gas and Minerals National Corporation (JOGMEC) and was able to continue work for them. It is anticipated that this relationship will be developed and extended into the coming years as JOGMEC realigns its priorities after the economic crisis to conduct more programmes on the African continent. A large part of this comprises strategic investigations of critical commodities, currently being conducted by the Section.

4

1. Artisanal workers recovering copper from tailings.

2. Small-scale brickmaking at a site on the DRC Copperbelt.

3. Rehabilitation of asbestos tailings dumps.

4. Workshop at Mintek on Public-Private Partnerships.

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mintek annual report 2010Mineral Policy and Sustainable Development

New capacity is being developed within the Section around the economics of energy and water - two resources that are essential for mining and mineral beneficiation. As South Africa moves towards a period of potentially more restricted supply of these inputs, a full understanding of their controlling dynamics is essential.

Capacity around specific commodities and minerals formed an important part of the work conducted this year. These commodities included iron ore, coal, uranium, platinum, lithium, osmium, salt (halite), gypsum and many others. Partly through internally-funded

investigations via the Science Vote (as well as generous support from Government departments such as DST and DTI) and partly through a desire by local and international companies to position themselves for growth in the post-crisis period, these investigations are likely to be ongoing for a number of years, and this bodes well for the Mineral Economics section as well as MESU in positioning themselves for future work in these areas.

The Section continued its mainstream asbestos dump rehabilitation project for the DME, focusing on sites near Kuruman, Prieska

and Owendale. The tenders for these projects were successfully advertised, site visits conducted and tenders awarded. Some of the projects are already practically complete.

An area of study which is becoming more pertinent is that of alternative and renewable energy sources. MESU continues to participate in the joint programme with the Szt István University in Gödöllö, Hungary, completing the first year of the two year collaboration. This relationship is linked to alternative energy uses in the mining sector in South Africa, with a specific focus on biofuels.

It is partly funded by the NRF, and the positive spin-offs from this work are illustrated by the potential of conducting studies for various provincial governments on the viability of instituting biofuel programmes.

Mineral Development

An important part of MESU’s responsibilities comprises the socio-economic environment and its development as it relates to mineral endowment and exploitation. To this end, a significant study was conducted into the iron ore industry, including an in-depth investigation

1. Site inspection of an asbestos tailings dump.

2. Fibres of crocidolite (blue amphibole) asbestos.

3. Mintek is developing new capacity around the economics of water and energy – two major inputs into the minal processing industry.

4. A small business utilising waste material from the dimension stone industry.

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of the iron ore value chain and how it relates to socio-economic and environmental conditions at Kumba’s Thabazimbi mine. The second economy was also investigated through a background study into the issues and features characterising the local small-scale mining sector.

On the issues of water and energy consumption, MESU conducted a number of studies during the year, including an investigation of the water consumption in the South African mining sector with specific attention to the coal, gold and PGM sectors.

mintek annual report 2010 Mineral Policy and Sustainable Development

The section also undertook a brief overview of Mintek’s role in developing water-efficient technologies for mineral processing applications, and a determination of the criteria to be considered in the future allocation of electricity to processing smelters in South Africa.

MESU also played its part in the construction sector, identifying opportunities with Supply Chain Analysis for optimising value chains. To reinforce the study, the construction minerals sector for the Namakwa District Municipality, Northern Cape, was used as a case study. In addition, an industry-wide evaluation of input costs for the processing of industrial minerals was carried out.

The study into a Mining and GeoSciences Framework for Research and Development across Africa, conducted for the DST, was completed, and a successful interactive two-day conference examining all the issues from different viewpoints was held at Mintek following the completion of the report.

Small-Scale Mining and BeneficiationMintek’s Small Scale Mining and Beneficiation (SSMB) division enhances sustainability in the small scale mining sector by researching, adapting and transferring appropriate technology. New opportunities are identified for mineral-related small scale enterprises

(SMME’s), and appropriate interventions are implemented, with the emphasis on promoting sustainable mining, downstream processing, and value addition through integrated development.

During the period under review, a total of 197 people in the Western Cape, Mpumalanga, KwaZulu-Natal, and Free State were trained in Occupational Health and Safety, Environment and Quality (SHE), Small Scale Mining: Surface Mining and Small Scale Mining: Quarrying under the MQA-funded training programme.

a further four rural pottery units were established with funding from the North West Province Department of Education in Morokweng, Braklaagte, Boitekong, and Kanana, and a total of 46 beneficiaries were provided with training.

A new rural jewellery co-operative was established in Ogies, Mpumalanga Province, with funding provided by Shanduka Coal. Mintek is providing ongoing marketing support and training to this enterprise, as well as those already established in Bethanie, Steelpoort, and Witbank, which are sponsored by Xstrata Alloys, and Kuruman, sponsored by BHP

1. The Timbisa ceramics incubator at Mintek.

2. Pilot production of Mintek’s BiominTM mineral-based soil ameliorant.

3. Rural pottery crafters using a Mintek-designed kiln.

4. The iGoli mercury-free gold recovery process.

5. Beadwork produced from recycled glass bottles.

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Billiton. A total of 31 jewellers received training under these projects, and a further 10 people were trained in glass beadmaking in Ikwezi and East London, Eastern Cape Province, under a project sponsored by the Ikwezi Empowerment Group.

A contract has been signed with Pretoria Portland Cement Company (PPC) Construction Industry Associations Trust to rehabilitate and upgrade a ceramics factory at Ndedwe in KwaZulu-Natal. The project forms part of PPC’s social investment programme. Ndwedwe is a rural area about 70 kilometres north of Durban, where unemployment is very

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mintek annual report 2010Mineral Policy and Sustainable Development

The IGoli process is one of a number of areas of possible collaboration between Mintek and CIMM. Other topics being considered include minimising the impact of the European Union’s restrictions on the import of chemicals and minerals under its REACH (Registration, Evaluation and Authorisation of Chemicals) policy, heap bioleaching of base metals, control systems and instrumentation for mineral processing circuits, and sustainable development in mining.

high and agricultural opportunities limited. The area has abundant kaolin deposits, which have been “high-graded” using manual mining methods and the raw clay sold in the informal sector. The factory, which has been furnished with basic ceramics equipment, including casting slip mixers, pottery wheels, a kiln and other accessories, will produce finished ceramic articles with very high added value, and create job opportunities in the area.

Following several years of pilot-scale production and field trials of the BiomintM

mineral-based soil ameliorant in partnership with Lyttleton Dolomite Mine (Annual Report 2009), an agreement was signed with the

Two research assistants from the Chilean Research Centre for Mining and Metallurgy (Centro de Investigación Minera y Metalúrgica – CIMM) visited Mintek for a month of training on the IGoli mercury-free gold recovery process. In early 2010, two engineers from Mintek travelled to Chile at the invitation of CIMM to explore opportunities for implementing the technology among the country’s artisanal gold miners. A series of technical trials was conducted in Andacollo, Coquimbo Region, in collaboration with the Mining Association of Andacollo and attended by local officials and gold producers.

1. A traditional African clay vase from the Small-Scale Mining and Beneficiation division.

2. Students at the Mintek’s Artisanal and Small-Scale Mining (ASSM) School.

3. Sarika Ramsander from Small Scale Mining and Beneficiation division at the Mother Day’s exhibition.

4. An excavator at the Asbestos rehabilitation project in the Kuruman-Prieska area of the Northern Cape Province.

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DST in March 2010 to implement a 60 ton per month production plant in Marble Hall, Mpumalanga Province. The DST will provide start-up funding, estimated at around R2.9 million, and Lyttleton the premises and certain of the manufacturing inputs. The product will be marketed to the commercial and small-scale agricultural sectors, as well as to commercial fertiliser producers for augmenting with nitrogenous fertiliser.

A contract has been signed with the National Research Foundation (NRF) to conduct collaborative research on agrominerals with Moi University in Kenya.

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mintek annual report 2010 Human Capital Development and Management

Human Capital Development and ManagementMintek’s total staff turnover this year fell to approximately 7 per cent, a considerable

improvement on the figure of 15 per cent for the previous reporting period. However, attracting,

developing, and retaining skilled technical personnel remains a challenge that needs to be

continually addressed.

Twenty-eight Mintek employees took part in the roll-out of a customised Management Development Programme presented in-house by the University of the Witwatersrand Business School in order to upgrade management skills at Mintek. The programme is aimed at employees at executive, senior and middle management levels, including those who have recently been promoted into these ranks so that they can merge their skills with global management skills. Mintek plans to extend this programme in future, as well as to introduce an Executive Development Programme at the next-highest level.

The Organisational Development (OD) unit has been driving performance Management within Mintek to ensure streamlining in the process including training, to ensure consistency and a fair process of assessments, and standardisation of the templates. Further to the above, the OD unit also started the process to

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1. Children who participated in the 2009 Mintek and Cell C national road show.

2. Mintekkers who took part in the annual 702/Discovery Walk the talk event.

3. The Engineering Service and Mineral Processing divisions football teams in action during the final of Staff Association soccer league.

4. Orphaned children under the care of Olive Leaf Foundation at the Mintek Wellness Team annual Christmas in July outreach programme event.

5. Learners from the Limpopo Province who were winners of the 2009 Minquiz National finals competition with their trophies.

mintek annual report 2010Human Capital Development and Management

compile the Skills Development Plan through consulting with line managers on the introduction of a skills audit as a component of the training plans. The job evaluation process has now also been streamlined with processes put in place and scheduled on an ongoing basis.

Employment EquityMintek’s current Designated Group (DG) representation among the total permanent workforce is 82 per cent, which exceeds the Board-designated target of 77 per cent. However, DG individuals remain under-represented at the technical, professional, and managerial levels. This is due to the general shortage of DG engineers and scientists in the country, which results in extreme competition between prospective employers to recruit and retain such skills. The Employment Equity Report was submitted electronically to the Department of Labour. (DOL)

Unionisation of MintekA landmark point was reached in 2008 as the National Union of Mineworkers (NUM) formally reached the legal bargaining requirement in line with the Labour Relations Act entitling them to organisational rights. A recognition agreement was signed with NUM, which led to negotiations of remuneration and conditions of service in September 2009 for the first time in Mintek’s history.

Human Resource SystemsDuring the reporting period, HR processes continued to be aligned to changes made in policies reviewed and in the various standard operating procedures. In order to ensure alignment between reviewed policies and HR systems some SAP reconfigurations were done.

WellnessMintek’s Wellness Committee meets on a monthly basis and organises

regular events throughout the year. Activities during 2009/10 included awareness campaigns on Sexual Transmitted Infections (STIs), tuberculosis, mental illness, breast cancer, stress management, and a special focus on general health during the Health Week.

The Careways Group provides Employee Assistance Programme services to Mintek as a partner in behavioural risk management, and provides counselling and advisory services on matters such as financial management, relationships, and legal issues

HIV/AIDSMintek continues to engage actively in driving HIV and AIDS programmes within the workplace.

All employees are encouraged to make use of the voluntary counselling and testing services that are provided through the Mintek Medical Clinic, in association with the Randburg

1. Mintek CEO Abe Mngomezulu and Tshinondiwa Ligege a representative from the National Union of Mineworkers (NUM) at the signing of the recognition agreement between Mintek and NUM.

2. A dentist conducting a dental check up in the 2009 Mintek Wellness week.

3. Minister Susan Shabangu of the Department of Mineral Resources (DMR) and Dr. Siyabonga Ndabezitha, Chief Director of Mineral Promotion talking to Tlhalefo Moyo from Mintek’s clinic during the Minister’s first official visit.

4. Dr. David Molapo giving a motivational talk at the 2009 HIV/AIDS Candle Light memorial event.

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Municipality, which sessions were held throughout the year.

A Knowledge, Attitude and Behaviour (KAB) survey was conducted by HIV and AIDS management company REDPEG in September 2009. The key finding was that Mintek employees’ knowledge and behaviour in respect of HIV/AIDS has improved since the last survey conducted in 2008. Between 64 and 66 per cent of the employees that participated in the survey indicated that they knew their HIV status, and 68 per cent believed they were not at risk of infection.

Academic Support

Bursary programmeMintek has an in-house bursary programme for full-time students studying towards degrees in science and engineering. The purpose of the bursary programme is to ensure a steady supply

Occupational LevelsMale Female Foreign Nationals Total

A C I W A C I W Male Female

Top management 3 2 1 6

Senior management 2 2 1 7 1 2 15

Professionally qualified and experienced specialists and mid-management 11 2 4 34 6 4 11 9 1 82

Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 110 12 8 50 89 5 17 36 14 8 349

Semi-skilled and discretionary decision making 105 4 6 45 1 3 164

Unskilled and defined decision making 136 4 1 7 2 150

TOTAL PERMANENT 367 24 13 100 149 6 21 52 25 9 766

temporary employees 2 1 1 1 2 1 2 10

GRAND TOTAL 369 25 13 101 150 8 21 53 27 9 776

1. Thuso Modise from the ITS division with Thenjiwe Mbatha from Finance division

2. Mintek staff members who completed the 2009 Management Advanced Programme (MAP) certificate at the Wits Business School.

3 & 4. Mintek bursary students giving a presentation of the project they worked on during the vacation training

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of trained and highly skilled technical people to meet a major portion of Mintek’s operational, research and development skills needs to ensure the long-term sustainability of the organisation.

All active first-, second- and third-year undergraduate bursars were hosted for approximately eight weeks of vacation work commencing late November 2009. The students were exposed to real-world projects under the supervision of experienced staff. Mintek used the opportunity to hone the presentations skills of the students during the end of period student seminar, and to expose the students to various soft skills via a dedicated training programme.

A feature of the bursary programme is a new centralised initiative to award bursaries to staff members who wish to further their studies at the Masters and Doctoral levels on a part-time

basis. This initiative will go some way in addressing the decline in the number of full-time postgraduate bursary holders, and also serving as a staff retention measure. The programme will be expanded in 2010 to include issuing bursaries to staff members to obtain undergraduate and Honours-level degrees.

Unfortunately Mintek had to terminate twelve undergraduate bursaries in February 2010 due to poor academic performance. In analysing this disturbing development, no particular observable trend in terms of year of study, course of study, university etc. was evident. Mintek will endeavour to monitor its bursars more closely in 2010 via on-campus contact visits with students throughout the year. The purpose of these meetings will be to identify and address any psycho-social challenges students may be encountering which would impact on their studies.

Full-time students Part-time students

Female Black Total Female Black Total

Under-graduate

bursars45 75 86

Masters bursars 14 21 26 Masters

bursars 1 2 5

Doctoral bursars 1 6 11 Doctoral

bursars 0 3 3

Work-Integrated Learning programme

Mintek’s Work-Integrated Learning programme (previously called the In-Service Training programme, now re-named as per current university terminology) provides students who are studying towards their national diploma the opportunity to apply their

1. Member of Mintek’s Divesity Forum Committee at the 2009 Diversity Day celebration event

2. The Mintek Adult Basic Education and Training (ABET) students who achieved a high credit pass results in the November 2009 examinations.

3. Scientists of the Advanced Materials Division at the Biomedical Preparation and Chemistry Laboratory.

4. Demonstrating and training on the iGoli technology, SSMB.

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academic studies in a world-class R&D environment. Students spend one year with Mintek and are exposed to relevant projects in order to fulfil the university’s diploma requirements for practical training so they can graduate.

Mintek acknowledges the continued financial support of the Mining Qualifications Authority, without which the programme would not exist.

Work-Integrated Learning students

Female Black Total

national diploma students 24 45 45

Internship programmes

Internship programmes at Mintek offer graduates the opportunity of gaining relevant experience within a science council environment. The programmes run at Mintek in collaboration with external funding organisations provide work opportunities to unemployed graduates with qualifications spanning most of the higher education spectrum, from national diplomas and three-year B.Sc. degrees to doctoral graduates and post-doctoral fellows.

Mintek participated in the following internship programmes in 2009:

• Department of Science & Technology Research Professional Development Programme (DST RPDP); and,

• Mining Qualifications Authority Graduate Development Programme (MQA GDP).

There were no fellows in the Department of Science & Technology/National Research Foundation (DST/NRF) Internship Programme in 2009.

The DST RPDP promotes the development of young black and female researchers within a science council environment by giving masters and doctoral graduates the opportunity to undertake full-time doctoral and post-doctoral studies, respectively. The aim of the programme is to encourage these scientists and engineers to continue their careers as researchers.

In contrast, the MQA GDP aims to provide unemployed graduates with relevant work experience together with a structured development programme so that the participants have good experience to augment their university qualification in order to secure permanent employment in the mining and minerals sector.Mintek will continue participating in all the above programmes in 2010, including the DST/NRF Internship Programme.

1. Three learners from schools adopted by Mintek who were part of the Academic Support unit team that participated in the 2009 SciFest Africa science festival in Grahamstown.

2. Telisha Traut received the award for the best 2009 student oral presentation at the 5th International Conference on Gold Science, Technology and its Applications hosted by the University of Heidelberg in Germany.

3. James Aluha Lulizi, a Senior Scientist in the Advanced Materials Division took part in the bi-annual Eighth International Congress on Catalysis and Automotive Pollution Control (CAPoC8) which was held in Brussels, Belgium.

4. Buhle Xakalashe a Senior Engineer in the Pyrometallurgy Division, received an opportunity to do Masters degree with Norwegian University of Science and Technology (NTNU).

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DST RPDP interns

Female Black Total

PhD fellows 1 4 5

Post-Doc fellows 3 1 4

MQA GDP interns

Interns 2 11 11

Technology and Human Resources for Industry ProgrammeThe Technology and Human Resources for Industry Programme (THRIP) is funded by the DTI and administered by the National Research Foundation. It aims to promote increased interaction and diffusion of technology amongst industry, higher education institutions and science, engineering and technology institutions, and to provide an enhanced educational experience through customised participation by students in collaborative projects.

Mintek participates in THRIP as a means to conduct commercially-focused research and development while at the same time exposing students to industry-relevant activities. Mintek had one THRIP project running in 2009, specifically in the development of gold technology.

Corporate Social Responsibility

Mintek’s Girl Learner Job Shadowing programme provides the opportunity for black grade 10-12 girl learners to undertake a limited period of job shadowing at Mintek during the school holidays. Mintek hosted groups of African and Coloured learners from the North West and limpopo provinces, and used the opportunity to promote its bursary programme to the learners as well as to create awareness of the need for them to consider taking up careers in science, engineering and technology by furthering their studies at university.

Mintek also hosted a group of girl learners from schools in the greater Johannesburg area for a tour of Mintek and its facilities, as part of the national Cell C “take-a-girl-child-to-work” day in May 2009. Again, the aim was to present careers in science and engineering as viable career options for girl learners.

Mintek has three adopted schools, namely Ferndale High School (Randburg), Itirele-Zenzele Comprehensive High School (Diepsloot) and Kwadedangendlale High School (Soweto). The aim of the intervention is to improve the level of teaching of Mathematics and Science at the schools. One of these schools (Kwadedangendlale High) was recognised by the department of Education as the top-achieving high school in Soweto based on their 2009 results. Kwadedangendlale’s well-respected School principal, Ms. Zodwa Nxomalo, passed away suddenly in 2009, and Mintek extends its condolenses to her family and the school.

1. Students who participated in the 2009 “Take a girl child to work” camapign.

2. Mr.Mogale Masinya, Principal of Itirele Zenzele High School during the Mindset Learn Datacast Solution launch at the school.

3. Learners from the Kwadedangendlale High School from Zola North who are one of Mintek’s adopted schools who performed well in the 2008/2009 examination results.

4. Learners from the Western Cape Province who took part in the Mintek’s girl learner programme.

1 2 3 4

47


in 2009 Mintek funded the installation of a Mindset Compujector, which is an on-demand multimedia learner-support and educator-facilitated resource package into Kwadedangendlale High. This completes Mintek’s commitment to install Mindset equipment into all three of our schools following the installation of Mindset Datacast Solutions in the other two schools in 2008.

The three schools also regularly visit the local Technology Resource Activity Centre (TRAC) to undertake laboratory experiments due to the fact that these schools do not have well-equipped on-site science laboratories. Mintek covers the cost of bussing learners to and from TRAC.

Technology and Human Resources for Industry Programme

The aims of STEM (science, technology, engineering and mathematics) promotion activities are to generate excitement and interest in Mathematics and Physical Science amongst

learners so that they excel at these subjects at school and then study towards a career in science or engineering at university. All Mintek STEM promotion activities also aim to create awareness of Mintek’s bursary programmes.

Mintek participated in various learner- and student-focused STEM promotion activities in 2009. These included exhibitions, conferences and seminars, in-bound tours to Mintek, the placement of adverts in targeted publications and visits to university career offices. Mintek placed more emphasis on targeting students at university in 2009, and hence reduced its efforts to target school learners. This was done in order to improve the quality of bursary applications for both undergraduate and postgraduate studies.

Minquiz™ is an annual national science competition and is Mintek’s flagship STEM promotion activity at the learner level. The competition is aligned with the Mathematics and Science school curriculum, and there is a big focus on teamwork and having fun at the same time.

Minquiz combines the rigors of an Olympiad with the excitement of a live on-stage quiz to produce an entertaining competition that promotes excellence in Physical Science and Mathematics.

School registrations in Minquiz have grown from 281 (2007) to 333 (2008) to 398 (2009) via optimal and targeted marketing as well as partnering with the Department of Education (national and provincial) to boost awareness of the event. In 2009 Mintek also entered into an agreement with e.tv to televise the highlights of Minquiz as a 22-week campaign on e.tv’s youth-oriented Frenzy show. Mintek has been negotiating with a number of corporate organisations in 2009 to expand the footprint of Minquiz on a partnership basis via the establishment of additional provincial Minquizcentres, and these efforts will come to fruition in 2010.

1. Dr. Richard Moutloali, a Senior Scientist in the Advanced Materials Division (AMD)-Nanotechnology group did a four month research fellowship at Cranfield University in the United Kingdom in 2009.

2. Pascaline Fonteh, a Mintek PhD bursar was recently offered the L’Oreal-UNESCO grant for Women in Science in Sub-Saharan Africa.

3. The top 2009 Minquiz students from the Limpopo Province with their individual trophies.

4. The top 2009 Minquiz students who won the Gauteng Provincial leg of the competition with their trophies.

1 2 3 4

48

mintek annual report 2010Staff Papers and Publications

Staff Papers and Publications

Abdelattif M. Production of Al-Ti master alloys from TiO2 in a DC arc furnace. Journal of the Southern African Institute of Mining and Metallurgy, vol. 109, October 2009. pp. 629-634.

Aluha J.L. and Pattrick G. and van der Lingen E. Palladium based catalysts with improved sulphur tolerance for diesel engine exhaust systems. Topics in Catalysis, July 2009. vol. 52, pp. 1977-1982. *#

Aluha J.L. Pattrick G. and van der Lingen E. Gold catalysts with improved sulfur tolerance of diesel engine exhaust systems. Gold 2009: 5th International Conference on Gold, Science, Technology and its Applications. University of Heidelberg, Germany, 26-29 July 2009. *#

Bowen R.J., Coates J., Coyanis D., Defayay D., Fernandes M.A., Layh M. and Moutloali R.M. Synthesis and structures of copper and gold complexes of the P,N ligands RN=C(But)C(H)RPPh2 (R=SiMe3, H). Inorg. Chim. Acta 2009 vol 362 pp. 3172-3180. *#

Chetty D., Gryffenberg L., Lekgetho T.B. and Molebale L.J. Automated SEM study of PGM distribution across a UG2 flotation concentrate bank : implications for understanding PGM floatability. Journal of the Southern African Institute of Mining and Metallurgy, vol. 109, October 2009. pp. 587- 593.

Coetzee L.C. RNMPC applied to non linear model of a ROM ore milling circuit. IFAC MMM 2009. Workshop on Automation in Mining, Mineral and Metal Industry. Vina del Mar, Chile, 14-16 October 2009.

Coney L., Gibson R.L., Reimold W.U., Koeberl C. and McDonald I. The Bosumtwi impact structure Ghana: deep drilling unravels the formation and history of a well preserved young impact crater. Out of Africa Conference. University of the Witwatersrand. South Africa, November 2009. #

Cornish L.A., Süss R., Douglas A., Chown L. and Glaner L. The platinum development initiative : platinum-based alloys for high temperature and special applications : part I. Platinum Metals Review. Vol. 53(3) 2009. pp.2-10. *#

Cornish L.A., Süss R., Chown L. and Glaner L. The platinum development initiative: platinum based alloys for high temperature and special applications: part III. Platinum Metals Review. Vol 53 (3) 2009. pp 155-163. *#

Dong H., Hinde A.l. and Kalala J.T. Poster: Breakage behavior of PGM ores in a piston die press. Mineral Processing Conference MINPROC 2009, 5-7 August 2009. Cape Town, South Africa.

Douglas A., Hill P.J., Murakumo T., Cornish L.A. and Süss R. The platinum development initiative: platinum based alloys for high temperature and special applications: part II. Platinum Metals Review, vol. 53 (2), 2009. pp. 69-77. *#

Du Preez A.C. and Kotze M.H. Laboratory and pilot plant investigations on the performance of a synergistic versatic 10 acid solvent extraction system for the recovery of nickel from calcium saturated streams. The Southern African Institute of Mining and Metallurgy Base Metals Conference, Kasane, Botswana, 27-31 July 2009.

Fish M.Q., Hewer R., Wallis C.L., Venter W.D.F., Stevens W.S. and Papathanasoupoulos M.A. Natural polymorphisms of integrase amogst HIV-1 infected South African patients. (AIDS Research and Human Retroviruses Journal vol 26 (4) 2010. pp. 489-493. *#

Geldenhuys I.J. and Jones R.T. Four years of DC arc smelting of PGM-containing oxide feed material. Proceedings of the International Symposium on the Pyrometallurgy of Nickel and Cobalt. Sudbury, Ontario, Canada, 24 -27 August 2009. Lui, J. et al. (ed). Canadian Institute of Mining, Metallurgy and Petroleum, Montreal, Quebec, 2009.

Geldenhuys I., Marx F., Shapiro M. and Fowler N. Composite furnace modules: application in DC furnace for Fe Ni alloy production. Proceedings of the 5th European Metallurgical Conference, Innsbruck, Tyrol, Austria, 28 June – 1 July 2009. GDMB, Gesellschaft für Bergbau, Metallurgie, Rohstoff-und Umwelttechnik e.V, Clausthal-Zellerfeld, Germany, 2009.

49

mintek annual report 2010 Staff Papers and Publications

Gericke M., Dinkla I.J.T., Geurkink B.K. and Hallberg K.M. Acidianus brierleyi is the dominant thermoacidophile in a bioleaching community processing chalcopyrite containing concentrates at 70 degrees celcius. Advanced Materials Research vol. 71-73, 2009. pp. 67-70. *

Gericke M., Govender Y. and Pinches A. Advances in tank bioleaching of low grade chalcopyrite concentrates. Advanced Materials Research, vol. 71-73, May 2009. pp. 361-364. *

Gericke M., Neale J.W. and van Staden P.J. A Mintek perspective of the past 25 years in minerals bioleaching. Journal of the Southern African Institute of Mining and Metallurgy, vol. 109, October 2009. pp. 567-585. *

Hewer R., Coyanis M., Traut T., Mphahlele M., Coates J. and Van der Lingen E. Commercial opportunities for gold catalysts. The Southern African Institute of Mining and Metallurgy World Gold Conference. Johannesburg, South Africa, 26-30 October 2009. *

Hewer R., Coyanis M., Traut T., Mphahlele M., Coates J. and Van der Lingen E. Investigating the biomedical applications of gold. The Southern African Institute of Mining Metallurgy World Gold Conference. Johannesburg, South Africa, 26-30 October 2009. *

Hewer R., Traut T., Coates J. and Williams B. Predicted models of resistance and hypersensitivity conferred by natural polymorphisms of HIV-1 integrase. Antiviral Research 22nd ICAR Program and Abstracts, A24. 2009. pp.253-257. *#

Jones R.T. Towards commercialisation of Mintek’s Conroast process for platinum smelting. Proceedings of the International Symposium on the Pyrometallurgy of Nickel and Cobalt. Sudbury, Ontario, Canada, 24-27 August 2009. Lui, J. et al. (ed). Canadian Institute of Mining, Metallurgy and Petroleum, Montreal, Quebec, 2009. pp. 415-430.

Jones R.T., Geldenhuys I.J. and Reynolds Q.C. Recovery of base metals and PGMs in a DC alloy smelting furnace. Journal of the Southern African Institute of Mining and Metallurgy, vol. 109, October 2009. pp. 587-592.

Kalala J.T., Makhalemele N.A. and Hinde A.L. Effect of grading axial lifter profile angle on the performance of a high aspect ration (L/D) pilot ball mill. Mineral Processing Conference (MINPROC09), Cape Town, South Africa, 5-7 August 2009

Kalala J.T., Mokwena and Hinde A.L. Influence of high pressure grinding roll (HPGR).Mineral Processing Conference (MINPROC09). Cape Town, South Africa, 5-7 August 2009.

Knights B. and Bryson M. Current challenges in PGM flotation of South African ore. 48th Annual Conference of Metallurgists, Sudbury, Ontario, Canada, 24-27 August 2009. Canadian Metallurgical Society.

Kriel F.H., Jogalekar A.S., Frederick H., Qi Shi, Cornett B., and Cicero D. and Snyder P. The discodermolide hairpin structure flows from conformationally stable modular motifs. Journal of Medical Chemistry, vol.53, 2010. pp. 155-165. *#

Lalla B., Knights B.D.H. and Steenkamp C. Online measurement of flotation circuits by means of UV spectrophotometry. 48th Annual Conference of Metallurgists. Ontario, Canada, 24-27 August 2009. Canadian Metallurgical Society.

Lotz P.W., Janse van Rensburg S. and Swarts A. Kinetic gold leach monitoring including cyanide speciation. Journal of the Southern African Institute of Mining and Metallurgy. October 2009. vol 109. pp. 1-6.

Mallick K., Witcomb M., Scurrel M. and Strydom A. Optical, microscopic and low temperature electrical property of one-dimensional gold polyaniline composite networks. Journal of Physics D: Applied Physics, vol. 42, 2009. pp. 1-9. *#

Mallick K., Witcomb M., Erasmus R. and Strydom A. Low temperature magnetic property of polymer encapsulated gold nanoparticles. Journal of Applied Physics. 2009. vol. 106. pp.1-6. *#

Mallik K., Witcomb M., Erasmus R. and Strydom A. Electrical and optical properties of polyaniline with a web-like morphology. Journal of Applied Polymer Science 2010. vol 116. pp. 1587-1592. *#

Mashazi P., Togo C., Limson J. and Nyokong T. Applications of polymerised metal tetra-amino phthalocyanines towards hydrogen peroxide detection. Journal of Porphyrins Phthalocyanines. 2010. vol. 14.pp. 1-12. *#

McPherson J., Branton P., Roberts S., Barkhuizen D., Ramdayal D., Raphulu M. and Van der Lingen E. Oral: the commercial application of supported gold catalysts for the Co-oxidation in mainstream cigarette smoke. The 5th International Conference on Gold, Science, Technology and its Applications, University of Heidelberg, Germany, 26-29 July 2009.

McPherson J. and Thompson D.T. 2009. Selectivity of gold catalysts for applications of commercial interest. Catalysis Today (2009) 52. pp. 743–750. *#

McPherson J. and Thompson D.T. Capabilities of AuroliteTM catalysts. The Strem Chemiker, vol. XXIV. no 1, May 2009. pp. 328-336. *#

McPherson J., Thompson D., Pattrick G., Holliday D., Ramdayal D., Khumalo T. and Van der Lingen E. Capabilities of AuroliteTM catalysts. The Southern Institute of Mining and Metallurgy World Gold Conference. Johannesburg, South Africa, 26-30 October 2009. *#

McPherson J., Thompson D., Pattrick G., Holliday R., Ramdayal D., Khumalo T. and Van der Lingen E. Commercial opportunities for gold catalysts. The Southern Institute of Mining and Metallurgy World Gold Conference. Johannesburg, South Africa, 26-30 October 2009. *#

Moema J.S., Papo M.J., Slabbert G.A. and Zimba J. Grinding media quality assurance for the comminution of gold ores. The Southern African Institute of Mining and Metallurgy World Gold Conference. Johannesburg, South Africa, 26-30 October 2009. *#

Moutloali R., Pattrick G. and Van der Lingen E. Carbon monoxide and methanol electro-oxidation using binary gold and platinum electro-catalysts. Gold 2009. 5th International Conference on Gold Science Technology and its Applications. University of Heidelberg, Germany, 26-29 July 2009.

Mphahlele M.K. and Coyanis M. Binding studies of gold compounds to human serum albumin utilizing NMR. Gold 2009: 5th International Conference on Gold Science, Technology and its Applications. University of Heidelberg, Germany, 2629 July 2009.

Mukadi J.J.N. and Pistorius P.C. Mould flux residues aid descaling of reheated austenitic stainless steel. Ironmaking and Steelmaking, vol. 37. no. 1, 2010. pp. 57-62.

Mulaudzi F.M.L. A study of t1, t2 and t3 ternary phases in the Pt-Cr-Nb system. Proceedings, 47th Meeting of the Microscopy Society of Southern Africa. Durban, South Africa, 8-11 December 2009. *

Mulaudzi N. and Mahlangu T. Oxidative precipitation of Mn (II) from cobalt leach solutions using dilute SO2 air mixture. Journal of the Southern African Institute of Mining and Metallurgy, vol. 106, no. 6, 2009. pp. 375382.

Mulholland A.C., Brereton-Stiles P.J. and Hockaday C.J. The effectiveness of current control of submerged arc furnace electrode penetration in selected scenarios. Journal of the Southern African Institute of Mining and Metallurgy, vol. 109, October 2009. pp. 601-607. *

Mwamba A., Chown L.H. and Süss R. Development of platinum base super alloy components via powder metallurgy. Proceedings of the Euro PM 2009 International Conference and Exhibition. Copenhagen, Denmark, 12 - 14 October 2009. *

50

mintek annual report 2010Staff Papers and Publications

Mwamba A. and Süss R. Characterisation of Pt based super alloy compacts produced via mechanical alloying. Proceedings, 47th Meeting of the Microscopy Society of Southern Africa. 8-11 December 2009. Durban, South Africa. *

Neale J.W., Robertsons S.W., Muller H.H. and Gericke M. Integrated piloting of a thermophilic bioleaching process for the treatment of a low-grade nickel-copper sulphide concentrate. Journal of the Southern African Institute of Mining and Metallurgy, vol 109, November 2009. pp. 273-293.

Nel M.H.J., Wagener J.M., Zeevaart J.R., Kilian E., Mamo M.A., Layh M., Coyanis M. and van Rensburg. 2009. Anti-tumour properties and biodistribution (as determined by the radiolabelled equivalent) of Au-compounds intended as potential chemotherapeutics. Applied Radiation and Isotopes, vol. 67, 2009. pp. 1370-1376. *#

Ndou T., Cornish L.A., Glaner L. and Süss R. Solidification reaction on Cr-RU alloys. Proceedings, 47th Meeting of the Microscopy Society of Southern Africa. Vol. 39. pp. 56. Durban, South Africa 2009. *#

Ndlovu S., Simate G.S. and Gericke M. The microbial assisted leaching of nickel laterites using a mixed culture of chemolithotrophic micro-organisms. Advanced Materials Research, vol. 71-73, 2009. pp. 493-496. *

Odera B.O., Cornish L.A., Süss R. and Rading G.O. A study of phases in as-cast alloys from the Pt-Al-V system at the Pt-rich corner. Proceedings, 47th Meeting of the Microscopy Society of Southern Africa, 2009. vVl. 39. pp. 61. Durban, South Africa. *#

Raphulu M., McPherson J., Pattrick G., Ntho T., Mokoena L., Moema J. and Van der Lingen E. Co oxidation: deactivation of Au/TiO2 catalysts during storage. Gold Bulletin, vol. 42 no 4, 2009. pp. 328-336. *

Raphulu M., Mokoena L., Roberts S., Moma J., McPherson J., Pattrick G., Ntho T. and Van der Lingen E. Co oxidation: deactivation of gold catalysts during storage. Gold 2009: 5th International Conference on Gold, Science, Technology and its Applications. University of Heidelberg, Germany, 26-29 July 2009.

Raphulu M.C., McPherson J., Van der Lingen E., Anderson J.A. and Scurrell M.S. Deactivation using diffuse reflectance infrared fourier transform spectroscopy (DRIFTSA). Gold Bulletin, vol. 43, no. 1, 2010. pp. 20-27. #

Riddin T.l., Govender Y., Gericke M. and Whiteley C.G. Two different hydrogenase enzymes from sulphate reducing bacteria are responsible for the bioreductive mechanism of platinum into nanoparticles. Enzyme and Microbial Technology. vol. 45 (4). 2009. pp. 267-273. *

Samal S., Mulaudzi F.M.L., and Cornish L.A. The Pt-Cr-Nb system around the Pt 40: Nr 20: Nb 40 composition. Proceedings, 47th Meeting of the Microscopy Society of Southern Africa. Vol, 39. Durban South Africa, 2009. p 58. *#

Seyedbagheri A., Van Staden P. and McLaren C. A study of acid-gangue reactions in heap leaches operations. Hydrocopper 2009. V International Copper Hydrometallurgy Workshop, Antofagasta, Chile, 13-15 May 2009.

Shongwe M.B., Cornish L.A. and Süss R. The effect of misfit of the microstructure of Pt based super alloys. Proceedings, 47th Meeting of the Microscopy Society of Southern Africa, vol. 39, p. 59. 2009. Durban, South Africa. *#

Simate G.S., Ndlovu S. and Gericke M. Bacterial leaching of nickel laterites using chemolithotrophic microorganisms : process optimization using response surface methodology and central composite rotatable design. Hydrometallurgy, vol. 98, 2009. pp. 241-246. *

Steenkamp C. and Phillpotts D. PGM1: IFAC MMM 2009: a framework for the modeling and simulation of the behaviour of a specific ore in flotation circuits. IFAC - MMM 2009, International Workshop on Automation in the Mining, Minerals and Metal Industry. Viña del Mar, Chile14-16 October 2009.

Süss R. and Tswane W. Pt based coatings on Ni based super alloy CMSX-4. Proceedings, 47th Meeting of the Microscopy Society of Southern Africa. Durban, South Africa, 8-11 December 2009. *

Süss R., Watson A., Cornish L.A. and Compton D.N. Development of a database for the prediction of phases in Pt-Al-CR-Ru alloys for high temperature and corrosive environment: Al-Cr-Ru. Journal of Alloys and Compounds. vol. 476, 2009. pp. 176-186. *#

Süss R, Cornish L.A. and Witcomb M.J. Investigation of as-cast alloys in the Pt-Al-Cr system. Journal of Alloys and Compounds, vol. 490, 2009. pp. 124-144. *#

Tembe S.M., Pattrick G. and Scurrell M.S. Acetic acid production by selective oxidation of ethanol using Au catalysts supported on various metal oxide. Gold Bulletin, vol. 42, no. 4, 2009. pp. 321-327. *#

Thompson D.T. and McPherson J. Poster: production and properties of commercially useful gold catalysts. 21st Meeting of the North American Catalysis Society. San Francisco, USA, 7-12 June 2009. #

Thompson D.T. and McPherson J. Selectivity of gold catalysts for applications of commercial interest. Catalysis Today. 2009, vol. 52. pp. 743-750. *

Tshikudo R.T., Mdluli P., Sosibo N. and Van der Lingen E. Gold nanotechnology at Mintek. The Southern African Institute of Mining and Metallurgy World Gold Conference. Johannesburg, South Africa, 26 -30 October 2009. *

Van der Lingen E. and Holliday R. Creating new industrial markets for gold. Southern African Institute of Mining and Metallurgy World Conference. Johannesburg, South Africa.26- 28 October 2009. #

Van Staden P.J., Robertsons S.W., Gericke M., Neale J.W. and Seyedbagheri A. Maximising the value derived from laboratory testwork towards heap leaching. 5th Southern African Base Metals Conference, Kasane, Botswana, 27-31 July 2009.

Yahorava V., Scheepers J. and Kotze M.H. Comparison of various anion exchange resins for the recovery of uranium by means of RIP. ALTA Uranium Conference, Perth, Australia, 28-30 May 2009.

Yahorava V., Scheepers J. and Kotze M.H. Evaluation of various durability tests to assess resins for in-pulp applications. 5th Southern African Base Metals Conference, Kasane, Botswana, 27-31 July 2009.

Yahorava V., Sceepers J., Kotze M.H. and Auerswald D. Impact of silica on hydrometallurgical and mechanical properties of RIP grade resins for uranium recover. Journal of the Southern African Institute of Mining and Metallurgy, vol. 109, October 2009. pp. 109- 619.

* Papers appearing in peer-reviewed publications.

# Papers with external co-authors.

51

mintek annual report 2010 Corporate Goverance

Corporate GovernanceMintek is coMMitted to the principles of openness, integrity and accountability in its dealings

with all stakeholders. it endorses the code of corporate practice and conduct as set out in the king

reports and the public finance Management act, and believes that the primary objective of the

corporate governance system is to ensure that both the board and Management carry out their

responsibilities ethically and effectively.

Board of DirectorsMintek’s outgoing board of directors consists of one executive member and nine non-executive members who were independently appointed by the Minister of Mineral resources in terms of the Mineral technology act no. 30, 1989 (the Mintek Act). Board members, excluding the CEO, hold office for a maximum of three years, but are eligible for re-appointment. The Board has been in office since March 2007 and complete their term in 2010. The Board members are appointed based on their business acumen, experience and knowledge as well as other skills. Mintek has a board secretariat that is responsible for ensuring that board procedures are followed in line with the various corporate governance frameworks.

Attendance of Board Members at Board Meetings

Name 05/09 06/091 07/09 10/09 11/091 02/10

Mr. harold Motaung (Chairperson) yes yes yes yes no yes

Mr. Morake abiel Mngomezulu (CEO) yes no yes yes yes yes

dr. Jan bredell yes yes yes yes yes yes

Mr. ralph havenstein yes yes no yes yes yes

Mr. Mohau Mphomela yes no yes yes yes yes

Ms. gugu fidelia nomsa Mthethwa no yes no yes yes yes

Mr. Mohlomi aziel ntilane yes yes no yes no yes

dr. bethuel Matshene sehlapelo2 yes yes yes yes yes yes

Mr. Mosa Mabuza3 no yes no no no no

Mr. tseko nell4 no no yes yes yes no

1 board teleconference meeting.2 Re-appointed after Aug 2008 as an independent after representing the DST previously.3 Appointed: 1 Sep 2008 to replace Mr Simon Sikhosana as a DME representative.4 appointed as Mr Mosa Mabuza’s alternate.

The Board considers Mintek’s annual financial statements to be a fair representation of its financial position at year-end in terms of the south african statements of generally accepted accounting practice (gaap).

Audit Committeethe audit committee has six members consisting of three board members, two independent members and Mintek’s ceo, as well as the auditor-general as a standing invitee . the committee operates in terms of a formal charter which was updated during this year, and assists the Board in fulfilling its responsibilities in respect of financial and risk matters. It also ensures that the appropriate accounting policies, internal controls and compliance with laws and regulations are in place. both the internal and external auditors have unrestricted access to the audit committee.

during the past year, the committee considered various reports from the internal auditor, while the audit report on the financial statement from the external auditor was considered by the newly appointed Board. The Auditor-General expressed an unqualified audit opinion on Mintek’s annual financial statements for the year ended 31 March 2010 due to the continued improved running of Mintek.

Attendance of Audit Committee Members at Audit Committee Meetings

Name 05/09 07/09 10/09 01/10

Mr. Mohau Mphomela (chairperson) yes yes yes yes

Mr. Morake abiel Mngomezulu yes yes yes yes

dr. Jan bredell yes yes yes yes

Ms. lindiwe Mhlabeni yes no yes yes

Ms. nopasika lila (independent member) yes yes yes yes

Mr. bongani Mbewu (independent member) yes no no yes

Internal controlMintek maintains internal controls and systems, designed to provide reasonable assurance as to the integrity and reliability of its financial statements and to safeguard, verify and maintain the accountability of assets. the effectiveness of these controls is monitored by the internal auditors, who report to the audit committee. the audit committee requested management to review and evaluate Mintek’s existing internal controls to further identify areas that can continually be improved upon.

52

mintek annual report 2010Corporate Goverance

Internal Audit

Mintek’s independent internal audit (ia) function assists the organisation to accomplish its objectives by adopting a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control and governance. the ia function has direct access to the audit committee and regular meetings are held with the chairperson of the audit committee.

Risk Management

the risk Management committee continually reviews the risk management process, internal controls, and significant risks facing the organisation. the committee provides the audit committee with a risk assessment report at appropriately scheduled intervals. Meetings are held on a quarterly basis or as required, and Mintek’s risk plan and risk Management framework are updated as required. Mintek utilises the services of insurance brokers on an annual basis to analyse and assess the risks associated with its assets, which are insured, together with public liability and professional indemnity, for the risk assessed.

Attendance of Corporate Risk Management Committee

Name 06/09 09/09 12/09 03/10

Mr abiel Mngomezulu – ceo no yes no yes

dr roger paul – chairman and gM: business development

yes yes yes yes

Mr sakhi simelane – gM: finance no yes yes yes

Ms shokie bopape – gM: corporate services

no yes yes yes

Mr peter craven – gM: technology n/a n/a yes yes

Mr nick Maritz – site services and facilities

no yes n/a n/a

Ms hester pretorius – finance yes yes yes yes

Ms Makgomo umlaw – human resources

n/a yes yes yes

Mr lemeke ramoshaba – human resources

no n/a n/a n/a

Mr Muzi ntombela – security yes yes yes no

Mr elias lesunyane – security yes yes yes no

Mr Michael Mamotheti – internal audit

yes no yes n/a

Ms kedibone Mokgalaka – internal audit

n/a n/a n/a yes

Mr hennie Venter – information technology and Qesh, secretary

yes yes yes yes

n/a not appointed

Human Resources Committee

the human resources committee consists of three board members, the ceo and the general Manager: corporate services. the committee reviews and determines the remuneration and terms of employment for Mintek, and as part of this process, gives consideration to the annual review of remuneration packages based on independent surveys. the committee also looks into hr policies, internal controls, circumstances, conditions and activities that affect material changes to policies and procedures and conditions of service for all employees in compliance with demands and vested interests of Mintek’s stakeholders. all decisions of the committee are referred to the Mintek board for approval.

Attendance of Human Resources Committee Members at Human Resources Committee Meetings

Name 04/09 07/09 11/09 02/10

Mr. ralph havenstein (chairperson) yes yes yes yes

Mr. Morake abiel Mngomezulu yes yes yes yes

Ms. gugu fidelia nomsa Mthethwa no yes yes yes

Mr. Mohlomi aziel ntilane yes yes no yes

Technical Committeethe technical committee consists of four board members and the ceo. the main purpose of the technical committee is to assist the board in discharging its duties relating to the legal mandate of Mintek in as far as its core business is concerned. it provides a forum for discussing technical issues for developing relevant recommendations for consideration by the board in informing strategy development and implementation within Mintek. furthermore, they are set up to advise on utilisation of expertise, project proposals and financing thereof, looking into various co-operatives and related strategies and the possible expansion of Mintek business within the said mandate. in addition to the above, the committee must ensure that there is compliance with any other function or responsibility as may be prescribed by relevant legislation and in line with national priorities.

Attendance of Technical Committee Members at Technical Committee Meetings

Name 07/09 10/09 01/10

dr. bethuel Matshene sehlapelo (chairperson) yes yes yes

Mr. Morake abiel Mngomezulu yes yes yes

Mr. ralph havenstein yes yes no

Mr. Mohlomi aziel ntilane yes no yes

Mr. Mosa Mabuza** no yes no

**Appointed: 1 Sep 2008 as DME representative

53

mintek annual report 2010 Corporate Goverance

Fraud Committee Mintek has adopted a fraud prevention plan that incorporates principles contained in the public sector anti-corruption strategy, and which focuses particularly on creating awareness and promoting ethical business conduct. the fraud committee, which consists of standing members with roles in finance and security as well as a neutral chairperson, is tasked with an ongoing review of the effectiveness of internal controls.

ManagementMintek is managed by a Chief Executive Officer assisted by five General Managers. This team makes up Mintek’s Executive Management committee and meets on a weekly basis to review strategic and operational issues.

executive Management is supported by sixteen formally appointed divisional Managers who are in charge of Mintek’s operating divisions and centralised support functions.

Operational Performance

Mintek reports to the department of Mineral resources (dMr) and also accounts to the department of science and technology (dst) for its dst-funded technology-related research and development (r&d) activities. Various key performance Indicators (KPIs), encompassing financial, organisational, innovation and learning, human resources and transformation perspectives, provide Mintek with a basis for evaluating its activities in the identified key performance areas.

Each KPI is supported by a set of identified measures, that provide a more specific and consistent base from which to assess progress. there is also a framework for peer review should the need arise.

While Mintek’s executive committee meets on a weekly basis, the Management committee convenes on a monthly basis where both the business plans and financial results are presented. the budget for the current year is reviewed in september by executive management in order to keep track of and ensure overall sound financial management.

Going Concern

The Mintek Board reviewed the entity’s financial budgets for the period April 2009 to March 2010 and is satisfied that adequate resources exist to continue business for the foreseeable future despite the economic meltdown which had a significant adverse effect on Mintek.

Quality, environment, safety, and health (QESH)

During August 2009, Mintek’s QESH management systems underwent a major combined re-certification audit against the requirements of ISO 9001: 2008 (Quality), ISO 14001:2004 (Environmental Management) and OHSAS 18001: 2007 (Safety and Health). Mintek was re-certified to all three standards, with no major findings raised.

the cyanide services laboratory underwent a successful surveillance audit for ISO 17025 (Testiing and Calibration Laboratories) in May 2009, with only few findings requiring corrections. The next audit is scheduled for November 2010. A surveillance audit was also conducted in the analytical services division, which also retained its ISO 17025 rating.

the lost time injury frequency rate (ltifr) remained below the target of 1 for much of the year, except for a four-month period during which a number of strain injuries were incurred, due to trips and falls and incorrect lifting techniques.

54

0.8 0.8 0.8

1.0

0.8 0.8 0.80.7

0.60.7 0.7

0.8 0.8 0.8 0.8

0.6 0.6

0.9

1.2 1.2 1.21.1

0.90.7

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Ap

r-08

Ma

y-0

8

Jun

-08

Jul-

08

Au

g-

08

Sep

-08

Oc

t-08

No

v-0

8

De

c-0

8

Jan

-09

Feb

-09

Ma

r-09

Ap

r-09

Ma

y-0

9

Jun

-09

Jul-

09

Au

g-

09

Sep

-09

Oc

t-09

No

v-

09

De

c-

09

Jan

-10

Feb

-10

Ma

r-10

Mintek’s Lost Time Injury Frequency Rate

LTFR Target

the client dissatisfaction frequency rate (cdfr) has declined steadily since mid-2008, and the target of 10 or less was achieved in October 2009 and has been maintained since then.

the environmental incident frequency rate (eifr) was zero throughout the year.

The Public Dissatisfaction Frequency Rate averaged 2, compared with a target of 1, for the reporting period. all the public complaints were nuisance-noise-related (ie. noise not exceeding the legal limits).

Mintek achieved 90 per cent compliance in the annual audit of its radiation protection procedures by the national nuclear regulator (nnr). the audit found that the review period should be indicated in all Procedures, and Mintek is confident of achieving 100 per cent compliance in the next audit. the radiation protection programme is incorporated in Mintek’s overall Quality Management programme, and forms part of a larger system of requirements under which Mintek is registered as a uranium testwork facility with the nnr and the department of energy.

Annual Financial Statements and Notes mintek annual report 2010

Contents of the Annual Financial Statements and Notes

for the year ended 31 March 2010

56 Audit Committee RepoRt

57 diReCtoRS’ RepoRt

59 RepoRt oF the AuditoR-GeNeRAl

61 StAtemeNtS oF FiNANCiAl poSitioN

62 StAtemeNtS oF CompReheNSive iNCome

63 StAtemeNtS oF CASh FlowS

64 StAtemeNtS oF ChANGeS iN Net ASSetS

65 NoteS to the ANNuAl FiNANCiAl StAtemeNtS

55

mintek annual report 2010 Annual Financial Statements and Notes

Audit Committee Reportthe audit coMMittee has adopted forMal terMs of reference, which have been confirmed by the Mintek Board, and has performed its responsibilities as set out in the terms of reference. In understanding its responsibilities, the Audit Committee has reviewed the following:• The effectiveness of the internal control system;• The effectiveness of the internal audit function;• The risk areas of the entity to be covered in the internal and external audits;• The adequacy, reliability and accuracy of the financial information provided to management and other users of such information;• The accounting or auditing concerns identified as a result of the external and internal audits;• Compliance with legal and regulatory provisions;• The activities of the internal audit function;• The independence and objectivity of the external auditors; and,• The scope and results of the external audit function.

The Audit Committee is also responsible for:• Reporting to the Mintek Board and the Auditor-General where the report implicates any members of the accounting authority in fraud,

corruption or gross negligence;• Communicating any concerns it deems necessary to the Mintek Board;• Confirming the internal auditor’s charter and audit plan;• Encouraging communication between members of the Mintek Board, senior executive management, the internal auditors and

external auditors;• Conducting investigations within the terms of reference;• Concurring with the appointment of the in-house internal audit function;• Approving the internal audit work plan; and,• Setting the principles for recommending the use of the external auditor for non-audit services.

The Audit Committee is satisfied that internal controls and systems have been put in place during the year under review and that controls have functioned effectively during the period. The Audit Committee considers Mintek internal controls and systems to be appropriate in all material respects to:• Reduce the entity’s risk to an acceptable level;• Meet the business objectives of the entity;• Ensure the entity’s assets are adequately safeguarded; and, • Ensure that the transactions undertaken are recorded in the entity’s records.

The Audit Committee has evaluated the group and the company financial statements for the year ended 31 March 2010 and concluded that they fully comply, in all material aspects, with the requirements of the Public Finance Management Act (PFMA) No.1 of 1999, as amended, and South African Statements of Generally Accepted Accounting Practice (SA Statements of GAAP).

The Audit Committee has requested management to review and evaluate Mintek’s internal controls to identify areas that can be improved upon. The Audit Committee agrees that the adoption of the going concern premise is appropriate in preparing the annual financial statements. The Committee acknowledges that Mintek has made significant progress in addressing the control weakness identified previously and looks forward to the future control environment, which will provide a sound basis for Mintek to meet its obligation to its stakeholders.

mohau mphomelaChairperson of the Audit Committee31 March 2010

Audit Committee members:

Mr M MphomelaDr J BredellMs L MhlabeniMs N LilaMr B Mbewu

56

mohau mphomela


directors’ ReportThe directors of Mintek take pleasure in submitting their 2009/2010 report together with the Annual financial statements as at 31 March 2010.

pRoFile

Mintek was established by the Mineral Technology Act 30 of 1989, incorporated as a public company in South Africa in terms of the Companies Act, 1973, as amended, and is listed as a national government business enterprise in schedule 3B of the Public Finance Management Act (PFMA), 1999, as amended.

FiNANCiAl ReSultS

The financial statements represent the financial result of Mintek and the consolidated results of its subsidiary, Mindev (Pty) Ltd, for the year ending 31 March 2010.

RepoRtiNG StANdARdS

The Mintek Group’s Annual Financial Statements comply with South African Statements of Generally Accepted Accounting Practice (GAAP) and the PFMA.

oRGANiSAtioNAl StRuCtuRe

Mintek’s organisational structure is shown on page 9 of the annual report.

pRiNCipAl ACtivitieS

Mintek, South Africa’s national mineral research organisation, is a state-owned enterprise established to ensure the sustainability and growth of the minerals industry through technology development and transfer. In terms of its mandate under the Mineral Technology Act 30 of 1989, Mintek’s main objectives are to promote mineral technology and to foster the establishment and expansion of industries in the field of minerals and products derived therefrom through research.

Specific aims include to:

• Develop efficient mineral processing technologies and sustainable value added products;

• Play a significant role in second economy interventions by developing technologies appropriate to the local jewellery, artisanal and small-scale mining (ASSM) industries;

• Support government regional and continental initiatives;

• Develop human and organisational skills whilst transforming its internal and external business processes and the workforce; and,

• Uphold good governance practices.

FiNANCiAl AFFAiRS

Review of operations

In the 2009/10 financial year Mintek experienced the effect of the economic recession more than anticipated. There was significantly lower demand for research and commercially driven projects forcing Mintek to implement stringent cost control measures to ensure profitability. It was a difficult year exacerbated by the cancellation of large projects and difficulties on other projects such as the smelting of high-chromium platinum concentrates (ConRoast). Mintek has also been affected by the high increase in electricity costs as well as the volatility of our local currency. Mintek has taken the view that these difficulties are short-term and therefore no decision was taken to minimise fixed costs. This view was validated judging by the current strong sales pipeline.

An insurance claim was lodged with the insurers in respect of an accident that occurred at Bay 2 on 27 March 2009. The claim was fully met for damages incurred in this unfortunate event.

Investment property amounting to R12,5m was reclassified in the current financial year as property, plant and equipment after the tenant terminated their lease agreement.

Revenue

Revenue has shown a steady increase in the last three years ending 2008/09. 2009/10 saw a decrease of R42,6m which is largely attributable to difficulties Mintek had with the ConRoast project and fewer pilot plants being executed than anticipated. The government grant, fully ring-fenced on research projects, remained fairly consistent in absolute terms in the last few years not increasing in line with inflation. Interest income almost doubled compared to 2007 (R12m) establishing this as a significant revenue stream for Mintek.

57


A strong commercial revenue pipeline was the driver to high, but erratic, profits in previous years. Notwithstanding the difficult year, gross margin on commercial projects was maintained at an average of 25%. Mintek still achieved a profit of R1.7m in this financial year, aided by strict expenditure management. Staff costs have increased by only 6% compared to 2009. Measures taken to contain staff costs in this year were the freezing of some vacancies and granting of lower annual increments. Despite a 54% increase in number of staff from 2007, salary costs only increased by 27%.

CASh Flow ANAlYSiS

The cash flow indicates that there have been challenges in making ends meet during the year with the reduced revenue, coupled with slower collections. Normal operations generated an investment of only R2,8m in the current year significantly lower than the R113m invested in the previous financial year. This was mainly as a result of lower working capital being available in the current year.

ASSetS

Capital expenditure

Mintek has seen a major injection into property, plant and equipment (PPE), and specifically equipment funded through state grant and other government agency funding. There has been a reclassification of the investment property as PPE in 2010 due to the termination of the lease from BHP Billiton. Mintek expanded its asset base by R25,1m (2009: R38,6 m) in the 2010 financial year. R14,9m was funded by the State grant received. This grant was specifically allocated to fund capex requirements. Assets with a net book value of R40 000 were written off in the current year.

JudiCiAl pRoCeediNGS

The directors are not aware of any significant judicial proceedings against Mintek, except those as disclosed in note 24 of the Annual Financial Statements.

poSt-BAlANCe Sheet eveNtS

There were no material post-balance sheet events that the directors are aware of.

SuBSidiARieS

The information relating to the entity’s financial interest in its subsidiary is disclosed in note 14 of the Annual Financial Statements.

the diReCtoRS oF miNteK AS At 31 mARCh 2010

executive director Mr MA Mngomezulu

Non-executive directors Mr M Mphomela – Chairperson Mrs N Qunta Mr P Streng Adv D Block Mr p White Ms S Sekgobela Ms S Maja Ms J Ndlovu Mr M Mabuza Mr t nell

The board secretary of Mintek is Ms S Bopape, and the business and postal addresses are as follows:

200 Malibongwe Drive Private Bag X3015Randburg Randburg 2194 2125

mr mA mngomezulu

58

m mA mngomezulu


Report of the Auditor-GeneralRepoRt oF the AuditoR-GeNeRAl to pARliAmeNt oN the GRoup FiNANCiAl StAtemeNtS ANd peRFoRmANCe iNFoRmAtioN oF the CouNCil FoR miNeRAl teChNoloGY (miNteK) FoR the YeAR eNded 31 mARCh 2010

RepoRt oN the CoNSolidAted FiNANCiAl StAtemeNtS

introduction

I have audited the accompanying consolidated and separate financial statements of Mintek, which comprise the consolidated and separate statement of financial position as at 31 March 2010, and the consolidated and separate statements of comprehensive income, statements of changes in net assets and cash flow statements for the year then ended, and a summary of significant accounting policies and other explanatory information, and the accounting authority’s report as set out on pages 61 to 85.

Accounting Authority’s responsibility for the financial statements

The accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance with South African Statements of Generally Accepted Accounting Practice (SA Statements of GAAP) and in the manner required by the Public Finance Management Act of South Africa, 1999 (Act No.1 of 1999)(PFMA) and the Minerals Technology Act, 1989 (Act 30 of 1989). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor-General’s responsibility

As required by section 188 of the Constitution of South Africa and section 4 of the Public Audit Act of South Africa, 2004 (Act No. 5 of 2004)(PAA), my responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with International Standards on Auditing and General Notice 1570 of 2009 issued in the Government Gazette 32758 of 27 November 2009. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

opinion

In my opinion, these financial statements present fairly, in all material respects, the consolidated and separate financial position of MINTEK as at 31 March 2010, and its consolidated and separate financial performance and its consolidated and separate cash flows for the year then ended in accordance with the SA Statements of GAAP and in the manner required by the PFMA and the Mineral Technology Act.

RepoRt oN otheR leGAl ANd ReGulAtoRY ReQuiRemeNtS

In terms of the PAA of South Africa and General Notice 1570 of 2009, issued in the Government Gazette No. 32758 of 27 November 2009,

59


I include below my findings on the report on predetermined objectives and compliance with the PFMA, Mineral Technology Act and financial management (internal control).

Findings

Pre-determined objectives.

No matters to report.

Compliance with laws and regulations

income tax Act, 1962 (Act No. 58 of 1962)

Non-adherence to legislation

Contrary to the requirements of the Income Tax Act, 1962 (Act No. 58 of 1962) Fourth Schedule, paragrah 23, the entity has not lodged the Mindev (Pty) Ltd. income tax return with South African Revenue Services for the year under review.

iNteRNAl CoNtRol

I considered internal control relevant to my audit of the financial statements and the report on predetermined objectives and compliance with the PFMA and the Mineral Technology Act, but not for the purposes of expressing an opinion on the effectiveness of internal control. The matters reported are limited to the deficiencies identified during the audit.

No matters to report.

pretoria31 July 2010

60


Financial Statements 2010

GRoup miNteK

2010 2009 2010 2009 Notes R r R r

Assets

Non-current assets

Property, plant and equipment 11 191,850,928 187,732,163 191,850,928 187,732,163

Intangible assets 12 3,457,152 4,135,480 3,457,152 4,135,480

Investment property 13 - 12,458,808 - 12,458,808

Investment in subsidiary 14 - - 100 100

Long-term loans and advances 15 4,636 85,690 4,636 85,690

total non-current assets 195,312,716 204,412,141 195,312,816 204,412,241

Current assets

Inventory 16 6,538,871 5,088,576 6,538,871 5,088,576

Trade and other receivables 17 60,242,726 82,422,822 60,242,726 78,977,747

Short-term investments 18 222,888,020 136,206,148 222,888,020 136,206,148

Cash and cash equivalents 3,760,522 79,617,943 3,760,522 79,617,943

total Current assets 293,430,139 303,335,489 293,430,139 299,890,414

Total assets 488,742,855 507,747,630 488,742,955 504,302,655

Equity

Revaluation surplus 109,358,306 110,256,095 109,358,306 110,256,095

Retained earnings 232,698,050 230,107,153 193,386,058 191,055,357

total equity 342,056,356 340,363,248 302,744,364 301,311,452

Liabilities

Non-current liabilities

Long-term retirement benefit obligation 22 30,545,000 32,585,000 30,545,000 32,585,000

Financial lease obligation 23 422,532 667,380 422,532 667,380

30,967,532 33,252,380 30,967,532 33,252,380

Current liabilities

Loans and advances from subsidiary 14 - - 39,472,396 35,665,938

Trade and other payables 19 38,980,835 54,773,871 38,820,531 54,714,754

Deferred income 20 76,373,594 78,510,292 76,373,594 78,510,292

Provisions 21 364,538 847,839 364,538 847,839

Current liabilities 115,718,967 134,132,002 155,031,059 169,738,823

Total equity and liabilities 488,742,855 507,747,630 488,742,955 504,302,655

stateMents of financial position at 31 March 2010

A mngomezulu Sakhi SimelaneCEO, Mintek GM: Finance, MintekRandburg, 30 July 2010

61


GRoup miNteK

2010

R

2009

r

2010

R

2009

r Notes

Continuing operations

revenue 2 346,795,197 389,413,133 346,795,197 389,413,133

Other operating income 3 6,049,878 8,130,036 6,049,878 8,130,036

Foreign currency (loss)/gain (3,718,463) 3,466,892 (3,718,463) 3,466,892

Investment income 4 21,895,534 25,270,245 21,532,951 24,088,317

Staff costs (228,709,077) (216,432,816) (228,709,077) (216,432,816)

Other operating expenses 5 (82,975,150) (118,018,857) (82,973,950) (118,018,857)

Finance expenses 6 (3,328,921) (8,545,590) (3,328,921) (8,545,590)

Audit fees 7 (2,556,579) (1,500,734) (2,556,579) (1,500,734)

Fees for services 8 (37,909,467) (30,157,188) (37,909,467) (30,157,188)

depreciation 9 (14,163,772) (15,500,025) (14,163,772) (15,500,025)

Loss on disposal of property, plant and equipment (81,404) (302,908) (81,404) (302,908)

Post-retirement benefit obligation 10 496,520 4,126,351 496,520 4,126,351

Profit before taxation 1,794,295 39,948,539 1,432,912 38,766,611

Taxation 25 (101,187) (330,940) - -

Profit for the year 1,693,108 39,617,599 1,432,912 38,766,611

Financial Statements 2010stateMents of coMprehensive incoMe for the year ended 31 March 2010

62


GRoup miNteK

2010

R

2009

r

2010

R

2009

r Notes

Cash flows from operating activities

Cash receipts from customers 210,448,632 338,533,156 207,003,557 315,218,771

Government grant received 165,840,000 135,834,000 165,840,000 135,834,000

Cash paid to suppliers and employees (373,422,451) (361,127,826) (373,421,251) (361,127,826)

Cash generated from operations 29 2,866,181 113,239,330 (577,694) 89,924,945

Interest received 19,283,636 20,135,737 18,921,053 18,953,809

Finance costs (93,668) (191,324) (93,668) (191,324)

Provisions utilised 21 (1,616,568) (1,759,040) (1,616,568) (1,759,040)

Net cash inflow from operating activities 20,439,581 131,424,703 16,633,123 106,928,390

Cash flows from investing activities

Additions to property, plant and equipment 11.1 (25,120,946) (38,586,851) (25,120,946) (38,586,851)

Additions to intangible assets 12 (533,633) (940,319) (533,633) (940,319)

Funding received towards purchasing of property, plant and equipment 11.1 20,381,777 28,425,147 20,381,777 28,425,147

Funding received towards purchasing of intangible assets 12 46,000 179,515 46,000 179,515

Increase in investment deposits (86,681,872) (39,584,714) (86,681,872) (39,584,714)

Net cash outflow from investing activities (91,908,674) (50,507,222) (91,908,674) (50,507,222)

Cash flows from financing activities

Receipts for subsidiary - - 3,806,458 24,496,313

Long-term creditor payments (244,848) (322,923) (244,848) (322,923)

Post-retirement health care - contributions 22 (72,503) (3,860,467) (72,503) (3,860,467)

Post-retirement health care - settlements 22 (4,070,977) (46,147,137) (4,070,977) (46,147,137)

Net cash outflow from financing activities (4,388,328) (50,330,527) (581,870) (25,834,214)

Net (decrease)/increase in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

(75,857,421) 30,586,954 (75,857,421) 30,586,954

79,617,943 49,030,989 79,617,943 49,030,989

3,760,522 79,617,943 3,760,522 79,617,943

Financial Statements 2010 stateMents of cash floWs for year ended 31 March 2010

63


Retained earnings Revaluation Surplus total

Note R R R

GRoup

Balance as at 31 march 2008 189,591,765 111,153,884 300,745,649

Depreciation on revaluation of buildings 897,789 (897,789) -

Net profit for the year 39,617,599 - 39,617,599





miNteK








Financial Statements 2010STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 MARCH 2010

64


Notes to the Financial Statements 2010notes to the annual financial stateMents for the year ended 31 March 2010

General information

The Group consists of Mintek, a schedule 3B public entity and Mindev (Pty) Ltd, a wholly-owned subsidiary incorporated in South Africa.

The principal activities of Mintek and its subsidiary (the “Group”) are to undertake research, development and transfer or commercialisation of mineral technology.

1. Significant accounting policies and basis of preparation

The principal accounting policies applied in the preparation of these consolidated financial statements are materially consistent with those of the previous year, unless otherwise stated.

The consolidated financial statements have been prepared on the historical cost basis except for certain properties and financial instruments, which are measured at revalued amounts and fair values respectively, as explained in the accounting policies set out below.

The financial statements have been prepared in accordance with the South African Statements of Generally Accepted Accounting Practice (SAGAAP), and in the manner required by the Public Finance Management Act (PFMA) and Treasury Guidelines.

The Annual Financial Statements are expressed in its functional currency, South African Rands (R).

The financial statements are prepared in conformity with SAGAAP which requires the use of certain critical accounting estimates. There are no areas that would have involved a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements.

1.1 Basis of consolidation

The consolidated financial statements incorporate the financial statements of Mintek and Mindev.

All intragroup transactions, balances, income and expenses are eliminated on consolidation.

1.2 Foreign currency transactions and balances

At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are translated into South African Rand at exchange rates prevailing at the balance sheet date.

Exchange differences arising on the settlement of monetary items, and on the translation of monetary items, are recognised in profit or loss in the period in which they arise.

1.3 investment in mindev

Subsidiary companies are enterprises in which the company holds a long-term equity interest and over which it has the power to control the financial and operating activities of the entities so as to obtain benefits from its activities. Mindev has over the past year been dormant except for the last payment received on a technology loan.

All investments in Mindev are initially recognised at cost less impairment losses. The carrying amount of such investment is reduced to recognise any decline, other than a temporary decline, in the value of the investment. Any carrying value adjustments are charged to the statement of comprehensive income in the period in which they are incurred.

1.4 investment in associates

The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting.

An associate is an entity in which the group has significant influence and that is neither a subsidiary nor an interest in a joint venture, through participation in the financial and operating policy decisions of the investee, but not control over those policies.

1.5 intangible assets

Intangible assets acquired separately and with finite useful lives are carried at costs less accumulated amortisation and any accumulated impairment losses. Amortisation for intangible assets with finite useful lives is provided on a straight-line basis over their estimated useful lives.

65



Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of comprehensive income when the asset is derecognised.

The estimated useful lives of the major categories of intangible assets are:

Computer Software: 3-5 years

1.6 Research and development costs

Expenditure on research activities is recognised as an expense in the period in which it is incurred.

An internally-generated intangible asset arising from the Group’s research and development is recognised only if all of the following conditions are met:• An asset is created that can be identified (such as software and new processes);• It is probable that the asset created will generate future economic benefits;• The development cost of the asset can be measured reliably;• It is technically feasible to complete the intangible asset so that it will be available for use or sale;• The ability to use or sell the intangible asset; and,• It is the intention to complete the intangible asset so that it will be available for use or sale.

Where no internally-generated intangible asset can be recognised, development expenditure is recognised as an expense in the period in which it is incurred.

Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on a straight-line basis over their useful lives.

1.7 impairment

At each balance sheet date, the Group assesses the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as revaluation decrease.

Where it is not possible to estimate the recoverable amount for an individual asset, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

In addition, intangible assets with indefinite useful lives, intangible assets not yet available for use and goodwill acquired in a business combination are tested for impairment annually, and whenever there is an indication that they may be impaired.

The recoverable amount is determined as the higher of fair value less costs to sell and value in use. Value in use represents the present value of the future cash flows expected to be derived from an asset (cash-generating unit). The expected future cash flows are discounted to their present value using an appropriate discount rate that reflects current market assessments of the time value of money and the risk specific to the asset for which the future cash flow estimates have not been adjusted.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised as income immediately, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8 leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards associated with ownership of an asset to the lessee. All other leases are classified as operating leases.

The group as a lessor

Rental income from operating leases is recognised in the statement of comprehensive income on a straight-line basis over the term of the relevant lease.

66



The group as a lessee

Assets held under finance leases are recognised as assets of the Group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the consolidated balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability.

Finance charges are charged directly to profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised.

Rentals payable under operating leases are charged to profit or loss on a straight line basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are recognised as a reduction of rental expense over the lease term on a straight-line basis.

1.9 property, plant and equipment

Property, plant and equipment, other than land and buildings, are stated at cost less any accumulated depreciation, any earmarked grant funding and any accumulated impairment losses. Costs include all directly attributable expenditure incurred in the acquisition, construction and installation of such assets so as to bring them to the location and condition necessary for them to be capable of operating in the manner intended by management.

Land and buildings held for use in the production or supply of goods and services or for administrative purposes are stated in the balance sheet at their revalued amounts, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent impairment losses.

Land is not depreciated. Properties were initially valued at historical cost. Revaluations are performed every three years by an independent professional valuator, such that the carrying amount does not differ materially from that which would be determined using fair values at the balance sheet date. (Refer Note 11)

Depreciation is provided to write-off the cost or fair value of property, plant and equipment other than land less their estimated residual values on a straight-line basis, over the estimated useful lives. Useful lives and residual values are reviewed and adjusted if appropriate at each balance sheet date.

The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. If any such indication exists and when the carrying values exceed the estimated recoverable amount, the assets or cash generating units are written down to their recoverable amount.

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the statement of comprehensive income in the year in which the item is derecognised.

Any revaluation increase arising on revaluation of land and buildings is credited to the non-distributable reserves, except to the extent that it reverses a revaluation decrease of the same asset previously recognised as an expense, in which case the increase is credited to the statement of comprehensive income to the extent of the decrease previously charged. A decrease that offsets previous revaluation increases of the same asset is charged against the non-distributable reserve.

A decrease in net carrying amount arising on revaluation of an asset is dealt with as an expense to the extent that it exceeds the balance, if any, on the non-distributable reserve relating to a previous revaluation of that asset.

On the subsequent sale or retirement of a revalued asset, the attributable revaluation surplus balance is transferred to retained profits.

At balance sheet date, the difference between depreciation based on the revalued carrying-amount of the asset (the depreciation charged to the statement of comprehensive income) and the depreciation based on the asset’s original cost is transferred from non-distributable reserves to retained earnings.

67



The estimated useful lives of the major categories of property, plant, equipment are:

Buildings 50 yearsPlant 10 yearsEquipment 3 - 10 yearsVehicles 5 yearsFurniture and fittings 5 years

The gains and losses arising on the disposal or retirement of an item of property, plant, equipment and vehicles are determined as the difference between the sales proceeds and the carrying amount of the assets disposed and is recognised in profit and loss.

1.10 investment properties

Investment properties are measured at their fair values using the fair value model. Gains or losses arising from changes in the fair value of investment property are included in profit or loss for the period in which they arise.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposals.

Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of comprehensive income in the year in which the item is derecognised.

The fair value is determined at balance sheet date by an independent professional valuator based on market evidence of the most recent prices achieved in arms length transactions of similar properties in the same area. (Refer Note 13)

1.11 Employee benefits

The Group operates a number of retirement benefit plans for its employees. These plans include a defined contribution plan and other retirement benefits such as medical aid benefit plans.

A defined contribution plan is a scheme under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

A defined benefit plan is a scheme that is not a defined contribution plan. Typically defined benefit plans define an amount of benefits that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

1.11.1 post-retirement pension obligations

The liability recognised in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised past-service costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in the statement of comprehensive income in the period in which they arise.

Past-service costs are recognised immediately in income, unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past-service costs are amortised on a straight-line basis over the vesting period.

For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised past-service costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method.

Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

68



1.11.2 post-retirement health care costs

This Group has an obligation to fund the medical aid benefits of all its past employees and dependants of past employees who retired or were in the employment of the Group prior to 31 December 1999. The plan liability is unfunded and fully provided for in the financial statements. The Group uses the projected unit credit actuarial method to determine the present value of its past service cost.

Actuarial gains and losses are recognised in full in the reporting period it relates to and is the excess over the greater of the present value of the past service obligation at the end of the reporting period before deducting the present value of assumed assets at the same date.

Valuations of these obligations are carried out annually by independent, qualified actuaries using appropriate mortality tables, long-term estimates of increases in medical costs and appropriate discount rates. General increases to medical aid contributions were estimated taking into account the projected future changes in the cost of medical services resulting from both inflation and specific changes to medical costs. The obligation calculated assumes that the cross-subsidy of pensioner’s benefits by the active members will continue as at present. If this cross–subsidy were to be removed, it would result in an increased estimated liability.

1.12 inventories

Inventories are stated at the lower of cost or net realisable value. Costs comprise direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the weighted average method. Net realisable value represents the estimated selling price in the ordinary course of business less any costs of completion and costs to be incurred in marketing, selling and distribution.

1.13 provisions

Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable that this will result in an outflow of economic benefits and the amount can be reasonably determined.

The Group recognises its obligation for guaranteeing its products and services for periods as stipulated in its contracts with the Group’s customers. (Refer Note 21)

1.14 Financial instruments

Financial instruments recognised on the balance sheet include derivative instruments, investments, investments in debt securities, accounts receivable, cash and cash equivalents, accounts payable and interest-bearing debt. Financial instruments are initially measured at cost including transaction costs when the Group becomes a party to their contractual arrangements. The subsequent measurement of financial instruments is dealt with in the subsequent notes. When the Group can legally do so and the Group intends to settle on a net basis, or simultaneously related positive and negative values of financial instruments are offset within the balance sheet amounts.

1.14.1 derivative instruments

The Group does not use derivative financial instruments including forward rate agreements and forward exchange contracts to hedge its exposure to interest rate and foreign fluctuations. It is the Group’s policy not to hedge its exposure from foreign currency fluctuations, as it does not consider the impact to be significant. It is the policy of the Group not to trade in derivative financial instruments for speculative purposes.

1.14.2 investments

Investments consist of short to long-term money market instruments initially recorded at cost, which is the fair value of the cash placed with the institution. These investments are held-to-maturity financial assets. Interest is accrued using the effective interest rate method and included in the statement of comprehensive income on an accrual basis.

1.14.3 trade and other receivables

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.

A provision for impairment of trade receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired.

The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of a provision account, and

69



the amount of the loss is recognised in the statement of comprehensive income. When a trade receivable is uncollectible, it is written off in the year in which it is identified.

Subsequent recoveries of amounts previously written off are credited in the statement of comprehensive income.

1.14.4 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and cash at the bank.

The carrying amount of cash is measured at its fair value.

1.14.5 Financial liabilities

Financial liabilities are amortised at their original debt value less principal payments and amortisation. Derivatives are subsequently measured at fair value and gains and losses are included in the statement of comprehensive income for the period.

1.15 Government grants

Grants from Government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions.

Government grants, which are intended to give immediate financial support to the entity, are recognised as income in the period in which they are received.

Government grants relating to costs are deferred and recognised in the statement of comprehensive income over the period necessary to match them with the costs that they are intended to compensate.

Government grants earmarked for specific fixed asset acquisitions are netted-off against the cost value of the fixed asset to the extent of the funds received.

1.16 Revenue recognition

Revenue is recognised when the sale transactions giving rise to such revenue is concluded and risks and rewards of ownership and title pass to the buyer under the terms of the applicable contract and the pricing is fixed and determinable.

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods sold and services provided in the normal course of business, net of discounts and sales related taxes.

Revenue from the sale of goods is recognised when the goods are delivered and title has passed.

Revenue arising from the rendering of services is recognised when services are provided. Where the outcome of a commercial work contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the commercial work contract at the balance sheet date, as measured by the proportion that costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion.

Where the outcome of a commercial work contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

Advance income arising as result of contracts undertaken in terms of commercial work in respect of invoices raised and paid for in advance but for which no substantial work has been made to justify the recognition of any revenue, is deferred until the income is earned based on the percentage of work completed.

Interest income from a financial asset is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts the estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.

Revenue arising from licence fees is recognised on an accrual basis in accordance with the terms of the applicable contracts.

Rental income is derived from rental of fixed property and is recognised on an accrual basis in accordance with the substance of the relevant agreements.

1.17 Contracts in progress

Where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. The stage of completion is determined by the proportion of contract costs incurred to date in relation to the estimated total contract costs except where this would not be representative of the stage of completion.

70



Variations in contract work, claims and incentive payments are included to the extent that they have been agreed to by the customer.

Where the outcome of the contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is immediately recognised as an expense to the statement of comprehensive income.

Where contract costs incurred to date plus recognised profits less recognised losses exceed progress billings, the surplus is shown as amounts due from customers for contract work. For contracts where progress billings exceed contract costs incurred to date plus recognised profits less recognised losses, the surplus is shown as amounts due to customers for contract work. Amounts received before the related work is performed are included in the consolidated balance sheet, as a liability, as deferred income. Amounts billed for work performed but not yet paid by the customer are included in the consolidated balance sheet under trade and other receivables.

1.18 taxation

Mintek is exempt from paying Income Tax in terms of section 10(1)cA(i) of the Income Tax Act no 58 of 1962 but registered for VAT. Mindev is registered for Income Tax purposes and is a legal tax paying entity.

The tax currently payable is based on taxable profit for the financial year. Taxable profit differs from profit as reported in the statement of comprehensive income because it excludes items of income or Mindev's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. (Refer Note 25)

1.19 irregular, fruitless and wasteful expenditure

Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement of any applicable legislation, including:• The PFMA; or,• Any provincial legislation providing for procurement procedures in that state-owned entity.

Fruitless and wasteful expenditure means expenditure that was made in vain and could have been avoided had reasonable care been exercised. All irregular, fruitless and wasteful expenditure is charged against income in the period in which it is incurred.

1.20 Financing costs

Financing costs are recognised in the statement of comprehensive income in the period in which they are incurred.

1.21 Changes in accounting policies and disclosures

1.21.1 New amendments adopted by the entity

• IAS 1 (AC101): Presentation of financial statements - effective 1 March 2009.

The entity has presented a statement of comprehensive income. Comparative information has been re-presented so that it is also in conformity with this revised standard.

Other new standards, amendments to standards and interpretations that has been issued by the standards board and are effective to the entity for the period beginning 1 March 2009 are currently not relevant to the current operations of the entity.

1.21.2 Standards, amendments and interpretations to existing standards that are not yet effective

The following standards and amendments to existing standards have been published and are mandatory for accounting periods beginning on or after 1 January 2010, or later periods, and have not been early adopted by Mintek:

• IAS 17 (AC105): Leases - effective 1 January 2010

Deletion of specific guidance regarding classification of leases of land, so as to eliminate inconsistency with the general guidance on lease classification. As a result, leases of land should be classified as either finance or operating, using the general principles of IAS 17.

• IAS 24 (AC126): Related party disclosures - effective 1 January 2011

Simplification of the disclosure requirements for government-related entities; clarification of the definition of a related party.

A number of other new standards, amendments to standards and interpretations that are not yet effective for the year ended 31 March 2010 that have not been dealt with in the financial statements as they are not relevant to the entity's current operations.

71


GRoup miNteK

2010 2009 2010 2009

R r R r

2. ReveNue

Government grants 123,561,047 105,777,683 123,561,047 105,777,683

State Grant 136,637,372 119,152,632 136,637,372 119,152,632

Less:

Portion of grant utilised to acquire fixed assets (10,244,537) (13,374,949) (10,244,537) (13,374,949)

Portion of grant carried over for committed capex purchases (2,831,788) - (2,831,788) -

other revenue streams 223,234,150 283,635,450 223,234,150 283,635,450

commercial 169,718,635 243,045,372 169,718,635 243,045,372

Earmarked 53,515,515 40,590,078 53,515,515 40,590,078

346,795,197 389,413,133 346,795,197 389,413,133

3. otheR opeRAtiNG iNCome

operating income 4,314,338 4,950,555 4,314,338 4,950,555

Library services 36,578 17,098 36,578 17,098

Breach of contract (employees) 3,000 158,487 3,000 158,487

Breach of contract (bursary/learnerships) 1,357,361 2,931,592 1,357,361 2,931,592

Bad debts recovered 64,935 5,098 64,935 5,098

Sundry income 2,852,464 1,838,280 2,852,464 1,838,280

Rental income - properties 1,735,540 1,908,743 1,735,540 1,908,743

investment property - Rental income - 1,270,738 - 1,270,738

6,049,878 8,130,036 6,049,878 8,130,036

4. iNveStmeNt iNCome

Interest earned: fixed deposits 18,772,285 18,564,615 18,772,285 18,564,615

Interest earned: loans to associates 362,583 1,181,928 - -

Interest earned: bank balances 84,590 272,161 84,590 272,161

Interest earned: staff debtors 53,086 117,033 53,086 117,033

Interest earned: trade debtors 11,092 - 11,092 -

Fair value Interest on debtors 2,611,898 5,134,508 2,611,898 5,134,508

21,895,534 25,270,245 21,532,951 24,088,317

5. otheR opeRAtiNG eXpeNSeS

Consumables 28,082,652 47,715,971 28,082,652 47,715,971

General running expenses 44,504,865 59,547,988 44,503,665 59,547,988

Repairs and maintenance 8,090,558 9,516,062 8,090,558 9,516,062

Fair value adjustment - investment property - 898,249 - 898,249

Bad debts written off 921,837 505,642 921,837 505,642

Provision for debtors' impairment 1,282,979 (165,055) 1,282,979 (165,055)

Inventory written down 104,197 - 104,197 -

82,987,088 118,018,857 82,985,888 118,018,857


72


6. FiNANCe eXpeNSeS

Interest other - 9,115 - 9,115

Fair value interest on creditors 635,253 1,556,689 635,253 1,556,689

Interest on post-retirement medical obligation 2,600,000 6,797,577 2,600,000 6,797,577

Interest on finance lease 93,668 182,209 93,668 182,209

3,328,921 8,545,590 3,328,921 8,545,590

7. Audit FeeS

Audit fees 2,556,579 1,500,734 2,556,579 1,500,734

2,556,579 1,500,734 2,556,579 1,500,734

8. FeeS FoR SeRviCeS

Consultants 36,204,808 28,189,203 36,204,808 28,189,203

Legal 1,704,659 1,967,985 1,704,659 1,967,985

37,909,467 30,157,188 37,909,467 30,157,188

9. depReCiAtioN

property, plant and equipment

Buildings 1,462,983 1,308,966 1,462,983 1,308,966

plant 2,558,744 2,292,137 2,558,744 2,292,137

Equipment 8,047,635 9,920,497 8,047,635 9,920,497

Vehicles 107,643 107,643 107,643 107,643

Leased assets 488,481 512,671 488,481 512,671

Furniture and fittings 333,622 300,448 333,622 300,448

12,999,108 14,442,362 12,999,108 14,442,362

intangible assets - amortisation

Computer software 1,164,664 1,057,663 1,164,664 1,057,663

14,163,772 15,500,025 14,163,772 15,500,025

10. poSt-RetiRemeNt BeNeFit oBliGAtioNS

Actuarial gain - post-retirement medical obligation (556,520) (4,189,973) (556,520) (4,189,973)

Actuarial loss - pension fund 60,000 63,622 60,000 63,622

(496,520) (4,126,351) (496,520) (4,126,351)

Number of employees 150 166 150 166

GRoup miNteK

2010 2009 2010 2009

R r R r


73


11.1 pRopeRtY, plANt ANd eQuipmeNt

GRoup ANd miNteK 2010 GRoup ANd miNteK 2009

opening Balance

Additions Asset class transfers

Reclass- ification of investment

property

Application of funding to funded

assets

disposals Closing Balance

opening Balance

Additions Asset class transfers


assets

disposals Closing Balance

R R R R R R R R R R R R R

Cost

Land 80,300,908 - - 3,643,200 - - 83,944,108 80,300,908 - - - - 80,300,908

Buildings 59,225,140 79,690 539,540 8,815,608 - (2) 68,659,976 56,156,960 11,641,117 (7,591,267) (981,671) - 59,225,140

plant 40,925,084 7,932 (138,487) - - (18,645) 40,775,884 41,614,440 4,439,084 (138,187) (3,500,716) (1,489,537) 40,925,084

Equipment 102,209,815 23,410,556 119,422 - (20,413,426) (544,659) 104,781,708 91,811,129 22,002,180 13,121,272 (23,936,035) (788,731) 102,209,815

Vehicles 990,580 - - - - - 990,580 990,580 - - - - 990,580

Furniture and fittings 2,763,579 664,234 - - - (11,759) 3,416,054 2,277,909 504,406 - (6,726) (12,010) 2,763,579

finance Leased assets 2,312,644 - - - - (300,396) 2,012,248 2,312,644 - - - - 2,312,644

capital work in progress 536,942 957,382 (519,176) - - - 975,148 5,928,760 - -5,391,818 - - 536,942

289,264,692 25,119,794 1,299 12,458,808 (20,413,426) (875,461) 305,555,707 281,393,330 38,586,787 - (28,425,147) (2,290,278) 289,264,692

opening Current Year

deprec-iation

Asset class transfers

Reclass- ification of investment

property


assets

disposals Closing opening Current Year depreciation

Asset class transfers


assets

disposals Closing

R R R R R R R R R R R R R

Accumulated depreciation

Buildings 12,839,862 1,462,983 2 - - 14,302,847 11,582,593 1,308,966 (51,697) - - 12,839,862

plant 25,230,334 2,558,744 (1,154) - - (15,604) 27,772,320 24,246,180 2,292,137 (21,568) - (1,286,415) 25,230,334

Equipment 59,642,512 8,047,635 - (31,649) (505,425) 67,153,073 50,339,481 9,920,497 72,904 - (690,370) 59,642,512

Vehicles 750,758 107,643 - - - - 858,401 643,115 107,643 - - - 750,758

Furniture and fittings 1,500,938 333,622 - - - (11,337) 1,823,223 1,210,779 300,448 294 - (10,583) 1,500,938

finance Leased assets 1,568,125 488,481 - - - (261,691) 1,794,915 1,055,454 512,671 - - - 1,568,125

101,532,529 12,999,108 (1,152) - (31,649) (794,057) 113,704,779 89,077,602 14,442,362 (67) - (1,987,368) 101,532,529

Fully depreciated assets and funded assets with a total acquisition value of R39 483 261 (2009: R19 948 401) is still in use.

These assets are recorded at R1 in the asset register and are not subject to the annual revaluation.


74



11.1 pRopeRtY, plANt ANd eQuipmeNt (continued...) GRoup ANd miNteK

2010 2009

Net book value R r

Land 83,944,108 80,300,908

Buildings 54,357,129 46,385,277

plant 13,003,564 15,694,750

Equipment 37,628,635 42,567,303

Vehicles 132,179 239,822

Furniture and fittings 1,592,831 1,262,641

Finance-leased assets 217,333 744,519

Capital work in progress 975,148 536,942

191,850,928 187,732,163

The financial lease assets with a net book value of R217 333 (2009 - R744 519) was secured against the financial lease obligation as disclosed in note 23.

Freehold land and buildings comprise:

Land and Buildings - original costs 11,759,900 11,759,900

Revaluations - until 31 March 2006 75,373,132 75,373,132

Revaluation - 31 March 2008 49,324,836 49,324,836

Additions and transfers - 31 March 2009 3,068,180 3,068,180

Additions and transfers - 31 March 2010 13,078,036 -

Revaluation at cost 152,604,084 139,526,048

directors' valuation 152,604,084 139,526,048

Portion 175 and portion 226 of the farm Klipfontein, 203-IQ Johannesburg, with buildings thereon. The value of the building complex was estimated at R136 457 868 by Lyons Financial Solutions (Proprietary) Limited, an independent valuator, during the financial year ending 31 March 2008. The latest valuation report was issued on 18 April 2008. The key assumption used was that the value of the property be based as sale of vacant buildings for rental investment using various rental income figures for different areas of the Mintek property. These calculated rentals were then capitalised at 13%.

The estimated useful lives of depreciable property, plant, equipment and vehicles are as follows:

Buildings and investment property 50 years

plant 5 - 10 years

Equipment 3 - 10 years

Vehicles 5 years

Furniture and fittings 5 years

75



12. iNtANGiBle ASSetS


opening Balance Additions Asset class

transfersApplication of

funding Closing Balance

opening Balance Additions Application

of funding Closing Balance

R R R R R R R R R

Cost

Computer software 6,460,272 533,633 (1,299) (46,000) 6,946,606 5,699,468 940,319 (179,515) 6,460,272

6,460,272 533,633 (1,299) (46,000) 6,946,606 5,699,468 940,319 (179,515) 6,460,272

opening Balance

Current Year Amortisation Adjustment Closing

Balanceopening Balance

Current Year Amortisation Adjustment Closing Balance

R R R R R R R R

Accumulated Amortisation

Computer software 2,324,792 1,164,664 - (2) 3,489,454 1,267,129 1,057,663 - 2,324,792

2,324,792 1,164,664 - (2) 3,489,454 1,267,129 1,057,663 - 2,324,792

value as at 31 march 2010 3,457,152 value as at 31 march 2009 4,135,480

The estimated useful lives of depreciable intangible assets are as follows: 3-5 years

13. iNveStmeNt pRopeRtY


opening Balance

Reversal/ Reclassification

Closing Balance

opening Balance Revaluation Closing

Balance

R R R R R R

Buildings -Billiton 12,458,808 (12,458,808) - 13,357,057 (898,249) 12,458,808

12,458,808 (12,458,808) - 13,357,057 (898,249) 12,458,808

Fair value as at 31 march 2010 - Fair value as at 31 march 2009 12,458,808

Portion of portion 175 of the farm Klipfontein, 203-IQ Johannesburg, with buildings thereon. The value of the building complex was estimated at R12 458 808 by Resurgent Projects (Proprietary) Limited, an independent valuator for the year ended 31 March 2009. The latest valuation report was issued on 30 April 2009. The key assumptions used by the independent valuator were the utilisation of the income capitalisation method based on an average investor's risk rate (13%) and applying additional adjustment due the specialised nature of the property (1%) and the fact that the building is ostensibly vacant (1%). The revised capitalisation rate of 15% was then applied to conservative and competitive rental. This property was reclassified and transferred to property, plant and equipment from 1 April 2009 due to termination of the lease by BHP Billiton.

14.1 iNveStmeNt iN SuBSidiARY

Details of subsidiary are as follows:

Name of subsidiary place of incorporation

portion of ownership

Financial year end

Shares at cost 31 march 2010

Shares at cost 31 march 2009

indebtness 31 march 2010

indebtness 31 march 2009

Mindev (Proprietary) Limited South Africa 100% 31 March 2010 100 100 39,472,396 35,665,938

100 100 39,472,396 35,665,938

Mindev is engaged in the commercialisation of Mintek's patents and technology through the identification of suitable partners to advance such interests by way of direct investments in equity and through joint ventures.

Mintek holds 100% of the issued share capital of Mindev (Proprietary) Limited. The loans granted are unsecured and do not have fixed repayments terms.

14.2 iNveStmeNt iN ASSoCiAteS

SuBSidiARY ASSoCiAte: tollSoRt (pRopRietARY) limited

Tollsort (Proprietary) Limited ceased its operations at the end of September 2004 and as such there are no current financial statements available for Tollsort to provide adequate disclosure. Mindev has included the operating losses from Tollsort (Proprietary) Limited to an amount of R1 193 043 which represents twenty-five percent of Mindev's portion of the loan guarantee made to Standard Bank on behalf of Tollsort (Proprietary) Limited.

The investment was written off in 2010 after African Mineral Exploration Company did not accept the donation of the shares.

76



GRoup miNteK

2010 2009 2010 2009

Notes R r R r

15. loNG-teRm loANS ANd AdvANCeS

loNG-teRm deBtoR - - - -

Mogale Alloys (Proprietary) Limited - 3,445,075 - -

Less:

Short-term portion 17 - (3,445,075) - -

StAFF loANS 4,636 85,690 4,636 85,690

Advances to staff for vehicle loans 267,116 734,934 267,116 734,934

Less:

Short-term portion of staff loans 17 (262,480) (649,244) (262,480) (649,244)

4,636 85,690 4,636 85,690

This loan is related to a technology loan. This loan bore interest at prime overdraft rates with fixed terms of repayments. The loan was settled in the current financial year. The amounts disclosed represent the fair value of the loan.

The staff loans were advanced to qualifying staff to finance purchases of motor vehicles. The monthly instalments are being deducted from the employees' salaries. These loans bear interest at prime overdraft rates less 3% and are repayable within 36 months. The amounts disclosed represents the fair value of the loans.

16. iNveNtoRY

Consumables 3,255,147 1,728,102 3,255,147 1,728,102

Finished products 3,283,724 3,360,474 3,283,724 3,360,474

6,538,871 5,088,576 6,538,871 5,088,576

Consumables are held in stock for daily business requirements. Finished goods relate to products manufactured by the MAC division.

17. tRAde ANd otheR ReCeivABleS

Trade debtors 49,477,934 69,290,225 49,477,934 69,290,225

Short-term portion of long-term debtors 15 - 3,445,075 - -

Short-term portion of staff loans 15 262,480 649,244 262,480 649,244

Project work in progress 8,449,085 8,470,129 8,449,085 8,470,129

Unearned interest on fair value of debtors 511,635 530,698 511,635 530,698

Other receivables 3,877,480 1,090,361 3,877,480 1,090,361

Less:

Provision for impairment (2,335,888) (1,052,910) (2,335,888) (1,052,910)

60,242,726 82,422,822 60,242,726 78,977,747

the following is an age analysis of trade receivables at balance sheet date:

0 - 30 days 30,656,832 27,123,160 30,656,832 27,123,160

31 - 60 days 1,615,891 13,125,012 1,615,891 13,125,012

61 - 90 days 1,896,241 7,496,791 1,896,241 7,496,791

90 + days 15.308,970 21,545,262 15.308,970 21,545,262

49,477,934 69,290,225 49,477,934 69,290,225

77


17. tRAde ANd otheR ReCeivABleS (continued...)

provision for impairment

included in the trade receivable balance are debtors which are past the original expected collection date (past due) at the reporting date, with a carrying amount of R14,721,789 (2009: R8,952,518) for which the company has not provided as there has not been a significant change in credit quality and the amounts are still considered recoverable. The company does not hold any collateral over these balances. The average age of these receivables is 76 days (2009: 100 days). A summarised age analysis of past debtors is set out below.

Ageing of past due but not impaired

60 - 90 days 1,896,241 7,434,945 1,896,241 7,434,945

90 - 120 days 12,825,548 1,517,573 12,825,548 1,517,573

14,721,789 8,952,518 14,721,789 8,952,518

movement in the allowance for doubtful debts

Balance at beginning of the year 1,052,910 1,217,964 1,052,910 1,217,964

Increase / (decrease) in provision 1,282,978 (165,054) 1,282,978 (165,054)

Balance at end of the year 2,335,888 1,052,910 2,335,888 1,052,910

Ageing of impaired trade receivables

60 - 90 days - - - -

90 - 120 days 2,335,888 1,052,910 2,335,888 1,052,910

Balance at end of the year 2,335,888 1,052,910 2,335,888 1,052,910

In determining the recoverability of a trade receivable, the company considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. Accordingly, the directors believe that there is no further credit provision required in excess of the allowance for doubtful debts. The company does not hold any collateral over these balances.

18. ShoRt-teRm iNveStmeNtS

Short-term investments 222,888,020 136,206,148 222,888,020 136,206,148

Investments in short-term fixed deposits are held with various reputable financial institutions at market value and interest has been earned at prime overdraft rates less a varied percentage over the year.Fixed investments held with various public financial institutions is partly earmarked as financing for the post-retirement medical aid liability.

19. tRAde ANd otheR pAYABleS

Trade payables 15,717,455 23,457,019 15,717,455 23,457,019

Unpaid interest - creditors (48,143) 290,946 (48,143) 290,946

Salary related payables 3,661,940 1,087,594 3,661,940 1,087,594

Current portion of lease creditor 23 227,929 359,586 227,929 359,586

SA Revenue Services - Other 3,335,608 10,582,837 3,335,608 10,582,837

SA Revenue Services - Income Tax 160,304 59,119 - -

Provision for leave pay 10,380,283 11,157,215 10,380,283 11,157,215

Accruals 5,545,459 7,779,557 5,545,459 7,779,557

38,980,835 54,773,873 38,820,531 54,714,754

The following is an age analysis of the trade and salary payables and accruals at balance sheet date:

0 - 60 days 27,405,512 32,324,170 27,405,512 32,324,170

61 - 90 days 559,441 - 559,441 -

90 + days 247,365 - 247,365 -

28,212,318 32,324,170 28,212,318 32,324,170

The average credit period for purchases is 45 days. Mintek has financial risk management policies to ensure that payables are paid within the credit timelines.

GROUP MINTEK

2010 2009 2010 2009

Notes R R R R


78



20. deFeRRed iNCome

Deferred income 59,666,422 59,576,740 59,666,422 59,576,740

Advance client billing (Unearned income) 16,707,172 18,933,552 16,707,172 18,933,552

76,373,594 78,510,292 76,373,594 78,510,292

Deferred income arises as a result of contracts undertaken for several government departments and institutions in respects of amounts received in cash not yet accounted for as revenue.

Advance client billing income arise as a result of contracts undertaken in terms of commercial work where invoices are raised based on work that has not been done. The quantum of cost incurred provides the basis for the level of revenue recognised in the period.

21. pRoviSioNS opening Balance

RAdditional provisions

Rutilised and reversed

RClosing Balance

R

GRoup ANd miNteK

31 march 2010

Product warranties 847,839 1,133,267 (1,616,568) 364,538

847,839 1,133,267 (1,616,568) 364,538

GRoup ANd miNteK

31 march 2009

Product warranties 409,606 2,197,273 (1,759,040) 847,839

409,606 2,197,273 (1,759,040) 847,839

The provision for product warranties is Mintek recognising its probable liability for meeting its obligations in terms of products and services as stipulated in its contracts with its customers.

GROUP MINTEK

2010 2009 2010 2009

R R R R

22. loNG-teRm RetiRemeNt BeNeFit oBliGAtioN

Post-retirement medical aid 29,300,000 31,400,000 29,300,000 31,400,000

Pension benefit liability 1,245,000 1,185,000 1,245,000 1,185,000

long-term retirement benefit obligation 30,545,000 32,585,000 30,545,000 32,585,000

Number of employees members 150 166 150 166

post-retirement medical benefits

The amounts included in the balance sheet arising from Mintek's obligation in respect of post-retirement medical benefits is as follows:

Present value of obligations as at 31 March 2010 29,300,000 31,400,000 29,300,000 31,400,000

Post-retirement benefit obligation

Fixed investments held with various public financial institutions is partly earmarked as financing for the post-retirement medical aid liability. Mintek has not assigned a specific fund to hedge against the post-retirement medical aid liability.

movement in the net liability recognised in the balance sheet

Net-past service benefit liability: Beginning of the year 31,400,000 78,800,000 31,400,000 78,800,000

Interest cost 2,600,000 6,797,577 2,600,000 6,797,577

Contributions paid to service providers (72,503) (3,860,467) (72,503) (3,860,467)

Net actuarial gain (556,520) (4,189,973) (556,520) (4,189,973)

Settlements (4,070,977) (46,147,137) (4,070,977) (46,147,137)

Net-past service benefit liability: End of the year 29,300,000 31,400,000 29,300,000 31,400,000

GROUP MINTEK

2010 2009 2010 2009

R R R R

79


Pension benefit liability

Pension benefits are provided by membership of the Mintek Retirement Fund (MRF) and the Mintek Employees Retirement Fund (MERF).

movement in the net-liability recognised in the balance sheet

Employer liability at beginning of year 1,185,000 1,121,378 1,185,000 1,121,378

Prior year adjustments - 622,622 - 622,622

Payments - (972,000) - (972,000)

Interest costs - 133,000 - 133,000

Actuarial loss 60,000 280,000 60,000 280,000

Net employer liability at end of year 1,245,000 1,185,000 1,245,000 1,185,000

Current cost 60,000 63,622 60,000 63,622

At inception of the Fund a Retirement Reserve was allocated to certain members which will become payable at the time of the members' death or withdrawal. The employer also funds a minimum guaranteed pension for a member who entered the fund as at 1 January 1995. For purpose of calculating the valuation investment returns are expected to exceed salary increases by 3%.

* These payments are made from within the MRF and Mintek has no direct control over it.

Contributions are charged against income in the period in which they are incurred. Contributions so charged were as follows:

MRF and MERF 23,098,815 16,263,908 23,098,815 16,263,908

22. loNG-teRm RetiRemeNt BeNeFit oBliGAtioN (continued...)

Key assumptions

Expected long-term rate of return on plan assets 9.3% 8.5% 9.3% 8.5%

Expected increase in health care costs 7.0% 9.5% 7.0% 9.5%

Amounts recognised in income in respect of the scheme are as follows:

Current cost 2,600,000 - 2,600,000 -

Benefits paid

Contributions paid 72,503 3,860,467 72,503 3,860,467

Expected average remaining life of employees (years) 25 16 25 16

Sensitivity Analysis on past Service Cost

Discount rate increased by 1% p.a. 25,390,000 27,200,000 25,390,000 27,200,000

Discount rate decreased by 1% p.a. 34,180,000 36,700,000 34,180,000 36,700,000

Subsidy inflation increase by 1% p.a. 34,320,000 36,700,000 34,320,000 36,700,000

Subsidy inflation decrease by 1% p.a. 25,220,000 27,100,000 25,220,000 27,100,000

Retirement age 58 32,470,000 34,400,000 32,470,000 34,400,000

Medical cover is provided through a number of different schemes. Post-retirement medical cover in respect of qualifying employees is recognised as an expense over the expected remaining service lives of the relevant employees. The group has an obligation to provide medical benefits to certain pensioners and dependants. These liabilities have been provided in full, calculated on an actuarial basis. The liabilities are unfunded. Periodic valuation of these obligation is carried out by independent actuaries every year, the latest one being 31 March 2010.

GRoup miNteK

2010 2009 2010 2009

R r R r


80


23. FiNANCe leASe oBliGAtioNS

Amount due for finance lease obligation 650,461 1,026,966 650,461 1,026,966

Less current portion of finance lease obligation 19 (227,929) (359,586) (227,929) (359,586)

422,532 667,380 422,532 667,380

As of 31 March 2010 the aggregate amounts of minimum lease payments and the related imputed interest under capitalised lease contracts payable in each of the next five fiscal years and thereafter are as follows:

Capitalised leased assets

Payable within one year 227,929 359,586 227,929 359,586

Payable within 2-5 years 422,532 667,380 422,532 667,380

Net lease liability 650,461 1,026,966 650,461 1,026,966

It is the Group's policy to lease certain of its equipment. The Group has an equipment finance lease agreement with an average lease term of four to six years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental repayments.

24. CoNtiNGeNt liABilitieS

legal liabilities

Mintek has disputed employment termination contracts with former employees, the aggregate of which is not expected to exceed R831 750. Of this amount only one case of R348 000 is considered probable. The other cases that are making up the difference are not necessarily probable but are being reviewed.

Guarantees

Cessions in favour of ABSA Bank for R3 159 736 to meet requirements for credit card and other banking facilities has been registered. Cessions in favour of ABSA Bank for R3 176 860 to facilitate performance guarantees for customers has been registered.

25. tAXAtioN

South African normal taxation 101,187 330,940 - -

101,187 330,940 - -

No provision for income tax was made for the company as Mintek is exempted in terms of section 10(1)(CA)(i) of the Income Tax Act, No. 58 of 1962. Tax provisions and liabilities are with respect to Mindev and its associated companies and are payable through those entities.The effective tax rate payable by Mindev was 28% (2009 - 28%).

26. CommitmeNtS

Capital expenditure 14,000,058 1,265,985 14,000,058 1,265,985

Authorised and contracted for

operational expenditure

Contracted for 7,788,092 446,335 7,788,092 446,335

The future aggregate minimum lease payments under operating leases are as follows:

Future operating lease charges for vehicles

- Payable within one year 293,094 463,118 293,094 463,118

- Payable between two and five years - 308,744 - 308,744

293,094 771,862 293,094 771,862

Future operating lease charges for office equipment

- Payable within one year 120,224 233,183 120,224 233,183

- Payable between two and five years 30,258 164,061 30,258 164,061

150,482 397,244 150,482 397,244

The Group leases vehicles and office equipment under operating lease agreements. The lease terms are between 3 and 5 years.


GRoup miNteK

2010 2009 2010 2009

Notes R r R r

81



27. FRuitleSS, wASteFul ANd iRReGulAR eXpeNdituRe

Fraud and theft expenses 4,494 - 4,494 -

The amount relates to fraudulent travel claims for interviewees. The employee concerned has been dismissed and the matter has been reported to the SAPS.

28. FiFA woRld Cup eXpeNdituRe

Mintek did not incur any expenditure in relation to the World Cup.

29. CASh GeNeRAted FRom opeRAtioNS

profit from operations 1,693,108 39,617,599 1,432,912 38,766,611

Adjusted for:

Investment income 4 (21,895,534) (25,270,245) (21,532,951) (24,088,317)

Finance expenses 6 3,328,921 8,545,590 3,328,921 8,545,590

Investment property fair value adjustment 5 - 898,249 - 898,249

depreciation 9 14,163,772 15,500,025 14,163,772 15,500,025

Fair Value adjustment - debtors 4 2,611,898 5,134,508 2,611,898 5,134,508

Fair Value adjustment - creditors 6 (635,253) (1,556,689) (635,253) (1,556,689)

Loss on disposal of fixed assets 69,467 302,908 69,467 302,908

Provisions raised 21 1,133,267 2,197,273 1,133,267 2,197,273

Reversal of impairment loss on trade receivables 17 - (168,055) - (168,055)

Impairment loss recognised on trade receivables 17 1,282,978 - 1,282,978 -

Decrease in post-retirement obligations 10 (496,520) (4,126,351) (496,520) (4,126,351)

Taxation 25 101,187 330,940 - -

Cash flow from operations before working capital changes 1,357,291 41,408,752 1,358,491 41,408,752

working capital changes: 1,403,586 71,830,578 (2,041,489) 48,516,193

Decrease in loans 81,054 4,088,543 81,054 705,543

Increase in inventories (1,450,295) (2,140,748) (1,450,295) (2,140,748)

Decrease in receivables 20,803,749 28,405,191 17,358,674 8,473,806

(Decrease)/increase in payables (15,894,223) 3,015,041 (15,894,223) 3,015,041

(Decrease)/increase in deferred income (2,136,699) 38,462,551 (2,136,699) 38,462,551

2,760,877 113,239,330 (682,998) 89,924,945

GRoup miNteK

2010 2009 2010 2008

Notes R r R r

82



83

30. iNSuRANCe ANd RiSK mANAGemeNt

The insurance and risk management policies adopted by Mintek are aimed at obtaining sufficient cover at the minimum cost to protect its asset base, earning capacity and legal obligations against acceptable losses.

All property, plant and equipment are insured at current replacement value. Risks of a possible catastrophic nature are identified and insured at acceptable risks.

31. FiNANCiAl iNStRumeNtS

Credit risk

Financial assets that could subject the group to credit risk consist principally of bank balances and cash, deposits, trade and other receivables, short-term investments and loans to associates. The Group bank balances and short-term investments are placed with several financial institutions with at least AA credit ratings assigned by credit agencies. The Group reviews its trade and other receivables and loans to subsidiaries at each balance sheet date to ensure adequate allowances for doubtful receivables or loan write-offs are made, the level of this provision is disclosed in note 17. Credit risk with respect to trade receivables is limited due to the large number of customers comprising the Group's customer base and their dispersion across different industries and geographic areas. Accordingly the Group does not have significant concentration of credit risk.

The Group considers its short-term investments to be secured and readily available as cash should the need arise for the conversion of the investments.

The carrying amounts of financial assets included in the balance sheet represent the Group's exposure to credit risk in relation to these assets.

The Group does not have any significant exposure to any customer or counter party.

interest risk

The valuation of interest rate exposure and investment strategies is done by management on a regular basis. The risk arises from substantial interest-bearing assets at variable inter-est rates. To minimise exposure to this risk, the Group uses a mixture of variable and fixed interest rates.

liquidity risk

Prudent liquidity risk management implies maintaining cash resources to meet cash flow requirements. Management monitors forecasts of its liquidity reserve on the basis of ex-pected cash flow. Analysis of the various requirements are disclosed in notes 17, 19 and 23 of the financial statements.

Collateral

The Group has a collateral over its financial lease obligation. The extent of the liability outstanding is disclosed in note 23 and the book values of the affected fixed assets is dis-closed in note 11.

Fair values

As at 31 March 2010 the carrying amount of bank balances and cash, deposits, trade and other receivables, trade and other payables, contracts in progress, advances received and short-term borrowings approximated their fair values due to the short-term nature of these assets and liabilities.

Long-term loans to/from subsidiaries are interest-free with no fixed repayment terms and therefore the fair value of these loans can not be calculated.

Foreign currency risk

The Group undertakes certain transactions denominated in foreign currencies, hence exposures to rate fluctuations arise. The Group does not currently enter into forward foreign exchange contracts to buy and sell amounts of various currencies at predetermined exchange rates, as the foreign currency amounts are not significant in relation to Mintek's income. As a matter of principle, the Group does not enter into foreign currency exchange contracts for speculative reasons.



2010R

2009r

Entity Basic Salary Fees for services as director

performance bonus and other

expenses

totAl total

32. BoARd memBeRS ANd eXeCutive mANAGemeNt RemuNeRAtioN

executive management

miNteK

Mr MA Mngomezulu Mintek 1,559,250 - 54,404 1,613,654 1,417,500

dr rl paul Mintek 1,390,895 - 54,406 1,445,301 1,270,500

dr M Motuku Mintek 1,135,591 - 44,350 1,179,941 1,037,295

Mr p craven Mintek (Appointed 01/10/2009) 529,650 - - 529,650 -

Mr as simelane Mintek 1,039,500 - 22,894 1,062,394 720,000

Ms R Bopape Mintek 1,034,550 - 25,960 1,060,510 780,714

total executive management 6,689,436 - 202,014 6,891,450 5,226,009

Non-executive management Board members

miNteK end of term: 28 February 2010

Mr H Motaung (Chairperson) Anooraq Resources Corporation - 33,718 - 33,718 35,752

Ms L Mhlabeni Bali Engineering Consultants - 24,640 - 24,640 26,330

Mr Ma ntilane Kwane Minerals Processing - 40,320 - 40,320 35,840

Dr J Bredell Minerals Development Consultant - 45,571 - 45,571 44,250

Mr R Havenstein Norilsk Nickel International - 68,888 - 68,888 54,138

Ms G Mthethwa Standard Bank - 26,880 - 26,880 30,260

Mr B Mbewu Self Employed - 8,960 - 8,960 13,440

Ms N Lila Astute Intellect - 17,920 - 17,920 8,960

Mr B Sehlapelo Rand Water Services (Pty) Ltd - 40,466 - 40,466 -

Mr M Mphomela Rand Merchant Bank - 57,688 - 57,688 63,858

miNdev

Mr MA Mngomezulu (Chairperson) Mintek - - - - -

Mr M Mphomela Rand Merchant Bank - - - - -

Mr as simelane Mintek - - - - -

Mr GL Rapoo sadpMr - - - - -

dr rl paul Mintek - - - - -

6,689,436 365,051 202,014 7,256,501 5,538,837

the following directors were appointed to the mintek Board on 1 march 2010:

Mr M Mphomela (Chairperson) Rand Merchant Bank

Mrs N Qunta ZBQ Consulting

Mr P Streng Independent management consultant

Adv D Block Masana Technologies (Pty) Ltd

Mr p White Venmyn Techno Consulting Firm

Ms S Sekgobela Mugamusi Consulting

Ms S Maja Jacques vd Merwe Maja Inc

Ms J Ndlovu NPC Cimpor (Pty) Ltd

Mr M Mabuza Department of Mineral Resources

Mr t nell Department of Mineral Resources

84



33. RelAted pARtY

Controlling entity

The Group comprises of Mintek and its wholly owned subsidiary Mindev (Proprietary) Limited. Mindev is engaged in the commercialisation of Mintek patents and technology through the identification of suitable partners and investments in an equity associate, namely Tollsort ( Proprietary) Limited. The Group, in the ordinary course of business, enters into various sale and purchase transactions with related parties.

None of the directors, officers or major shareholders of the Mintek Group or, to the knowledge of Mintek, their families, had any interest, direct or indirect, in any transactions which has affected or will materially affect Mintek or its investment interest or subsidiary.

Tollsort (Proprietary) Limited ceased its operations at the end of September 2004. Mindev has included the operating losses from Tollsort (Proprietary) Limited to an amount of R1 193 043 which represents twenty-five percent of Mindev's portion of the loan guarantee made to Standard Bank on behalf of Tollsort (Proprietary) Limited.

Related party transactions

Related party transactions exist within the Group. During the year all selling transactions were concluded at arm's length. Details of material transactions with related parties not disclosed elsewhere in the financial statements are as follows:

transactions GRoup miNteK

2010 2009 2010 2009

R r R r

Mintek sales to:

Department of Mineral Resources 11,430,292 122,521 11,430,292 122,521

Department of Science and Technology 24,969,689 24,245,580 24,969,689 24,245,580

Other Government Departments 9,598,375 10,105,455 9,598,375 10,105,455

National Research Foundation 2,067,024 1,851,931 2,067,024 1,851,931

csir 5,450,135 - 5,450,135 -

53,515,515 36,325,487 53,515,515 36,325,487

trade receivables

Department of Mineral Resources - 24,341 - 24,341


csir 3,986,095 - 3,986,095 -

9,097,659 3,895,004 9,097,659 3,895,004

deferred income (Current liabilities)

Department of Mineral Resources 8,362,453 16,968,823 8,362,453 16,968,823


Department of Science and Technology 37,397,632 27,785,604 37,397,632 27,785,604

National Research Foundation 6,132,176 6,779,030 6,132,176 6,779,030

59,666,422 59,576,740 59,666,422 59,576,740

loan payable

Mindev (Pty) Ltd - - 39,472,296 35,665,938

85


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CEO’s Office Ms Lentheng Letsholo 011-709 4900

Internal Auditor Mr Mpho Mathose 011-709 4796

External Auditors Auditor General (AG) 012-426 8000

GM’s Secretary Ms Christa Scheepers 011-709 4908

GM’s Secretary Ms Bongi Nthini 011-709 4906

General Managers Contact NumberBusiness Development Dr Roger Paul 011-709 4934

Research and Development Dr Molefi Motuku 011-709 4485

Corporate Services Ms Shokie Bopape 011-709 4680

Technology Mr Peter Craven 011-709 4779

Finance Mr Sakhi Simelane 011-709 4328

Division Contact NumberAdvanced Materials Dr Elma van der Lingen 011-709 4471

Analytical Services Mr Monde Mtakati 011-709 4053

Biotechnology Mr Petrus van Staden 011-709 4397

Business Development Mr John Batty 011-709 4165

Engineering Support Mr Paul Rannachan 011-709 4761

Estate Management Mr Muzi Ntombela 011-709 4140

Finance Ms Hester Pretorius 011-709 4698

High Temperature Technology Mr Tom Curr 011-709 4736

Human Resources and Training Ms Makgomo Umlaw 011-709 4373

– Bursars and SET promotions Mr Garth Williams 011-709 4476

Hydrometallurgy Dr Dave Hulbert 011-709 4382

Information and Communications Mr Haveline Michau 011-709 4256

– Communications Dr Hans Alink 011-709 4265

– Conferences and Events Ms Zinhle Dennison 011-709 4321

– Library Ms Manil Kanniappen 011 709 4277

Information Technology Mr Hennie Venter 011-709 4103

Measurement and Control Mr Paul Brereton-Stiles 011-709 4355

Minerals Economics and Strategy Unit Dr Marian Lydall 011-709 4195

Minerals Processing Mr Alan McKenzie 011-709 4339

Mineralogy Ms Nosiphiwo Mzamo 011-709 4163

Pyrometallurgy Mr Tom Curr 011-709 4642

Quality, Environment and Safety Mr Hennie Venter 011-709 4103Safety, Health and Environment Mr Leon Swanepoel 011-709 4747

Small-Scale Mining and Beneficiation Mr Nirdesh Singh 011-709 4942

Mintek Contacts

RP 31/2010

ISBN: 978-0-621-39174-9

Compiled by the Information and Communications Division, Mintek.

Printed by Remata iNathi Communications and Printers (Pty) Ltd.

Acronyms and Abbreviations ABET Adult Basic Education and Training AC Alternating current AMI Advanced Metals Initiative ARC Agricultural Research Counncil ASSM Artisanal and small-scale miners/mining BEE Black economic empowerment BSE Backscattered electron (image) CAT Computer aided tomography COST European Co-operation in the field of Scientific and Technical Research CRM Certified reference material DC Direct current DMR Department of Mineral Resources DRC Democratic Republic of Congo DST Department of Science and Technology DTC Ciamond Trading Company DTI Department of Trade and Industry EDS Energy dispersive spectrometer EIFR Environmental incident frequency rate EPCM Engineering, Procurement, Construction and Management EPS Extracellular polysaccharides FMC Full mill charge FTIR Fourier transform infra-red spectrometry GAAP Generally Accepted Accounting Practices GAC Granular activated carbon GDP Graduate Development Programme HCWCI High Chrome White Cast Iron HIV Human immunodeficiency virus HPGR High pressure grinding roll HR Human resources ICMI International Cyanide Management Institute IFRS International financial reporting standards IKS Indigenoous knowledge systems IP Intellectual property JOGMEC Japan Oil, Gas and Metals National Corporation JRC Junior resource company KPI Key Performance Indicator LA-ICP-MS Laser ablation inductively coupled plasma mass spectrometer LED Local economic development LIMS (Low-intensity magnetic separation LTIFR Lost-time injury frequebcy rate MDS Mineral density separator MESU Mintek’s Mineral Economics and Strategy Unit MQA Mining Qualifications Authority MRC Medical Research Council MTC Metals Technology Centre MTEF Medium Term Expenditure Framework MVA Megavolt-ampere NCI National Cancer Institute Necsa South African Nuclear Energy Corporation NFTN National Foundry Technology Network NHLS National Health Laboratory Services NIC Nanotechnology Innovation Centre NICD National Institute of Communicable Diseases NNR South Africa’s National Nuclear Regulator NRF National Research Foundation NUM National Union of Mineworkers OVI Onderstepoort Vetinary Institute PEC Photoelectric cell PFMA Public Finance Management Act PGMs The platinum group metals (platinum, palladium ruthenium rhodium, iridium and osmium) PMDN Precious Metals Development Network POC Point of care QESH Quality, Environment, Safety and Health R&D Research and development ROSES Refurbishment of Söderberg Electrode Simulator RPDP Research Professional Development Programme SADPMR SA Diamond and Precious Metals Regulator SARM South African Reference Material SE Secondary electron (image) SEM Scanning electron microscope SMMEs mall, medium and micro-enterprises SSMB Mintek’s Small-scale Mining and Beneficiation division STEM Science, Technology, Engineering and Mathematics THRIP Technology and Human Resources for Industry Programme TRAC Technology Resource Activity Centre TSF Tailings storage facility WAD Weak acid dissociable (cyanide) WRC Water Research Commission

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MINTEK, SOUTH AFRICA’S NATIONAL MINERALS-RESEARCH ORGANISATION which was founded in 1934 to assist the mining industry to operate more effectively and profitably, has achieved international recognition for its contributions. Our mining and minerals industry has been extremely innovative, and many notable advances in extraction, refining, and manufacturing technology that originated in South Africa have impacted on the minerals industry world-wide.

Mintek works with industry and other R&D organisations to research, develop, and implement new and improved technologies in the minerals and metallurgical sectors. South Africa has become a world leader in this technological niche, with a successful record of technology export, and Mintek itself has become an international player in the field.

Mintek’s research complex is situated in Randburg, about 15 kilometres north of Johannesburg, within easy reach of Johannesburg International Airport.

With a total staff of about 800, Mintek employs a highly qualified and motivated workforce with a wide range of skills, including metallurgical, chemical, and electronics engineers, chemists, physicists, and mineralogists. Many of our engineers and scientists are recognised as leaders in their fields of specialisation.

Mintek provides world-class R&D expertise, testwork, and process optimisation for the precious and base metals, ferroalloys, and industrial minerals sectors on an international basis. The activities range from initial investigations to process development, and the design, construction, and commissioning of industrial plants. Working closely with clients, and in conjunction with engineering partners, Mintek supplies a flexible package of technology for process development and optimisation.

A global leader in mineral and metallurgical innovation

200 Malibongwe Drive, Randburg, South Africa.Private Bag X3015, Randburg 2125, South Africa.

Tel: +27 11 709 4111 Fax: +27 11 793 2413 www.mintek.co.za

Documents

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