By Dr Paul Jourdan Mintek Presentation to the Parliamentary Portfolio Committee Science & Technology 10 th June 2003

Specialists in mineral andmetallurgical technology

By Dr Paul Jourdan

Mintek

By Dr Paul Jourdan

Mintek

Presentation to the Parliamentary

Portfolio CommitteeScience & Technology

Presentation to the Parliamentary

Portfolio CommitteeScience & Technology

10th June 200310th June 2003


Mintek: Adding value to our Natural Resources

Mining,Mining, ResourceResourceProcessingProcessing RefiningRefining

Fabri-cation

Mineral separation, Smelting, LeachingMineral analysis, Special Alloys, Small-scale Mining, Jewellery, Enviromin, etc.

Explora-Explora-tiontion


6 168

7 494

85 226

121 408

214 128

114 718

9 521

78 160

207 960

Shortfall

Depreciation

Overheads and Operating Expenditure

Staff Costs

Expenditure

Own Income (incl. post-retirement fund interest)

Earmarked funding

Core funding

Income

R’k

FINANCIAL SUMMARY 2002/2003

FINANCIAL SUMMARY 2002/2003

Forex losses (11:1 to 8:1) R2mnAvmin royalty R3mnMindev investment R5mnTransformation R1mnOperating Shortfall R6mnTotal R17mn


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

1987

/88

1989

/90

1991

/92

1993

/94

1995

/96

1997

/98

1999

/200

0

2001

/200

2

2003

/200

4

2005

/200

6

MINTEK INCOMEMINTEK INCOME

CoreCore

EarmarkedEarmarked

Non-stateNon-state

TotalTotal

Ran

ds X

100

0


MINTEK MANAGEMENTMINTEK MANAGEMENT

CHIEF EXECUTIVE OFFICER

Technology

Pyrometallurgy

AnalyticalScience

Bioleaching

MineralsProcessing

Measurement& Control

PhysicalMetallurgy

EngineeringSupport

Mineralogy

High Temp. Technology

Hydrometallurgy

Process Eng.Services

Small ScaleMining Unit

ResearchTechnology

Commer-cialisation

BusinessServices

Human Resources &

Training

Information &Publications

CorporateRelations

Finance(Treasury)

CorporateServices

MESU

Mindev(Mintek Exco)

CEO (50%)

COO

PROJECTS (JVs)HDSA


MINDEV CORPORATE STRUCTURE MINDEV CORPORATE STRUCTURE

MINDEV BOARD (CHAIR – PP JOURDAN)MINTEK EXECUTIVE MANAGEMENT

MINDEV CEONA BARCZA

(50%)

SUBSIDIARY COMPANIES

ATOLL TOLLSORT MOGALE MUSUKU

Bateman Titaco Mindev

50% 50%

Mindev IMS Eng. SPH B&H

Mindev PGR Atoll BEE(Sebeso)

Mindev Harmony BEE

PUBLIC OFFICERYUNUS OMAR

25%25%25% 25%

30%30%20% 30% (10%DGE Trust)

40%40%20% (Laetoli)



• Tollsort: with Mikrosort of Germany, to apply new optical sorting technology to improve recoveries in the southern African minerals industry;

• Musuku: with Harmony and BEE company, to beneficiate gold bullion into pure (99.99%) gold and into value-added intermediate products such as salts, wire, alloys, bars and high purity gold for electronics, using Mintek technologies. Musuku is the Venda word for gold.

• Mogale: with management, workers and BEE company, to treat Columbus stainless steel dusts to produce a valuable nickel alloy and to produce ferrochrome using Mintek’s new “Enviroplas” technology, but based on its early DC FeCr technology that was taken over by Samancor in 1993.

• Atoll: with Bateman (outsourcing some operations to BEE companies), was established prior to Mindev’s formation to provide toll processing services to the ferro-alloys industry to recover valuable alloys from slag dumps

MINDEV SUBSIDIARIESMINDEV SUBSIDIARIES


FEASIBILITY STUDIES INITIATED FEASIBILITY STUDIES INITIATED

• A coastal Electrolytic Manganese Dioxide (EMD) plant based on SA’s abundant manganese ores. EMD is used in the manufacture of dry-cell batteries

• A Hot Briquetted Iron (HBI) plant based on SA’s iron ore fines. HBI is used in steel making

• A coastal ferro-nickel (FeNi) plant based on SA’s cheap electricity and imported laterite ores. FeNi is used in stainless steel production

• A plant to recover platinum concentrate from chromite tailings dumps (the Platdumps project)


BEE Business Partners BEE Business Partners

• PDI• >51% HDSA• Broad-based (equity)• Tech expertise• Finance (balance sheet)• Biz expertise

• Core BEE partner in broad tech areas (eg DC plasma)

• Local BEE on discrete investment projects

• BEE R&D partners?• BEE IP funding?

BEE dbase

BEE shortlist

BEE Selection

BEE Financing

Advert Informal

Other dbases

BEE Partner

Deposit?


REGIONAL STUDIES - Completed or underway

REGIONAL STUDIES - Completed or underway

• Mineral potential of the Gariep SDI of the Northern Cape

• Mozambican part of the Beira Corridor and Zambezi SDI

• First phase of a mineral scan for the Nacala corridor in Mozambique, Malawi and Zambia

• A scan of the aluminium downstream industry for the CDC (Coega)

• A titanium cluster study in East London for ECDC in Eastern Cape

• Mintek signed an historic MOU with the ECDC to develop eight mineral based projects in the Eastern Cape

• Mintek is also in discussion with other provinces to help them develop mineral based projects (N.Prov & Limpopo)

• Mintek is co-ordinating The Great African Rift Development Strategy (GARDS) on behalf of COHORT (committee of SA’s Science Councils)Mineral Economics and Strategy

UnitMineral Economics and Strategy Unit


• The RBSD thesis has been incorporated into the National R&D Strategy

• The overall objective and aim of the RBSD project is to identify the critical factors and necessary conditions (i.e. “lessons”) required for a resource-based economy such as South Africa to make the transition to a high-tech industrialised state

• Study trip to Sweden and Finland to build a research network

• Mining Inputs Cluster

– Mintek has also been tasked with facilitating the development of a mineral processing inputs cluster (consumables, capital goods, services)

– Mintek proceeded to initiate the resuscitation of the South African mining cluster and has received the commitment of various industry, government, science council, and organisational support for this endeavour

• Defining the inputs cluster in terms of key product categories and the type of

goods and services associated with them.

• Putting together a database of leading South African and international firms

associated with the domestic mining and mineral processing sector.

• Funding proposal has been submitted to Fridge

RESOURCE-BASED SUSTAINABLE DEVELOPMENT

RESOURCE-BASED SUSTAINABLE DEVELOPMENT

Mineral Economics and Strategy UnitMineral Economics and Strategy Unit


MiningMining MineralMineralProcessingProcessingExplorationExploration

expl. capital goods• geophysical• drilling• survey• etc.

exploration services• GIS• analytical• data processing• financing• etc

mining capital goods• drilling• cutting• hauling• hoisting, etc.

mining services• mine planning• consumables/spares• sub-contracting• financing• analytical, etc

processing cap. goods• crushers/mills• hydromet plant• materials handling• furnaces, etc.

processing services• comminution• grinding media• chem/reagents• process control• analytical, etc

knowledge-based resource-inputs industry

1. Beneficiation (RBI); 2. Resource Inputs: Capital Goods & Services


• Kgabane Project– The Kgabane Jewellery and Craft Project was initiated by the Ministry of

Minerals and Energy to alleviate poverty and create jobs through the creation of a vibrant and inclusive jewellery industry and taking advantage of existing resources

– The project was formally launched in October 2002 during the Mining Week, with a jewellery show. The launch celebrated the Kgabane – Harmony range, which was realised through its partnership with Harmony Gold

– A Production and Training Unit has been set up and is operational. The unit is tasked with the creating a range of jewellery products that will be inspired by rural - indigenous craft designs and will utilise a range of materials ranging from natural fibres, beads, ceramics, precious and semi-precious metals and stones

– Through the Kgabane Rural Development Jewellery Project, seven groups of crafts-women from rural and urban impoverished areas have been set up and are receiving training according to the unit standards qualification set with the Mining Qualifications Authority

RURAL DEVELOPMENT & POVERTY ALLEVIATION

RURAL DEVELOPMENT & POVERTY ALLEVIATION

Mineral Economics and Strategy UnitMineral Economics and Strategy Unit


ALEXKORALEXKOR

Highlights of Mintek’s management (17 May 2001 - 16 November 2002)

• Eliminationof loss-making activities (mid-sea, closure of some plants)

• Expansion of profit-making activities (shallow marine)

• Implementation of tight cost control on all activities

• Repayment of R25m loan to BOE

• Creation of a permanent, empowered, Alexkor management team

Audited profit from operations (30 June 2003), R millions

1999 2000 2001 2002 2003

-R69,8 -R36,8 -R31,7 R16,0 R32,0** Estimated 30 June 2003


TECHNICAL HIGHLIGHTSTECHNICAL HIGHLIGHTS

GOLD• Developing local and international codes of best practice for cyanide

use (Au CIP: health & safety and enviro)

• Bioleach amenability tests on sulphide gold concentrates from SA, Zimbabwe, Tajikistan, Dominican Republic, Canada, Kazakhstan and Finland

• Optimisation of gold circuits for clients around the globe

• Project Autek, focussing on new industrial applications for gold, has been expanded rapidly (breakthrough on respirators)


TECHNICAL HIGHLIGHTS (cont.)TECHNICAL HIGHLIGHTS (cont.)

• Laboratory and pilot milling and flotation work has been conducted for Anglo American, Avmin, Lonmin, Cluff Resources and Aquarius South Africa

• Interest has been expressed in the ConRoast process (smelting of dead-roasted sulphide concentrates in a DC arc furnace) by major platinum producers and new BEE entrants (Cr constraint, enviro)

• New modules of MillStar, PlantStar, FrothStar have been developed for process control (40 sites in 15 countries) and Minstral EAF furnace control (80 sites in 10 countries)

• Significant progress has been made on the development of alloys based on Pt-Al-Cr-Ru for high temperature applications (eg aero-engines with RR)

PLATINUM


FERROUS METALS• Cluster computer (“LAN”) approach for furnace and slags modelling

• Various projects conducted using DC arc furnace (SS dusts, FeCr, FeMn, Ti-Fe)

NON FERROUS METALS• Testwork and process design on heap bioleaching of low-grade copper

ores (Haib)

• Solvent extraction for recovery and upgrading of zinc

• Liquid Magnesium was produced at atmospheric pressure through Mintek’s new magnesium process

• Zincref- new Mintek Zn refining pilot column commissioned



INDUSTRIAL MINERALS• Batch jigging for the Fe and Mn industries has been conducted

successfully

• Optical sorting has gained rapid attention in the mineral processing industry (PGM, limestone, dolomite)

SMALL SCALE MINING• Established a small scale mining division

• Involvement in rural development spans over 9 provinces

• Examples are: glass beads, diamond treatment facility,

• iGoli-process for gold recovery, ceramics incubator, etc.



ALLOCATION OF CORE FUNDINGALLOCATION OF CORE FUNDING

• All core funds for 2003/2004 (R80,9m) allocated to specific activities

• Allocation was achieved via an internal competitive mechanism similar to the Innovation Fund

• Progress reports every 6 months

Allocation as follows:

Technical InnovationTechnical Innovation SMMESMME SET/HRDSET/HRD TotalTotal

R60,4m R6,5m R14,0m R80,9m74,7% 8,0% 17,3% 100%


EXECUTIVE

02

46

8

1012

1416

2000 2003 2004 2006 2008

NON-DGDG

MANAGERS

02468

10121416

2000 2003 2004 2006 2008

NON-DGDG

PROJECTED TRANSFORMATION From Base Year 2000, to 2008

PROJECTED TRANSFORMATION From Base Year 2000, to 2008

KgabaneKgabane

MINQUIZMINQUIZ

ADOPT-A-SCHOOLADOPT-A-SCHOOL


EDUMAPEDUMAP

HIV/AIDS programme (Itereleng/Ikageng)

HIV/AIDS programme (Itereleng/Ikageng)

SET WeekSET Week

OUTREACH PROGRAMMESOUTREACH PROGRAMMES


HUMAN RESOURCE DEVELOPMENTHUMAN RESOURCE DEVELOPMENT

• 53 Undergraduate students – (81% of designated group)

• 17 Postgraduate students – (71% of designated group)

• 44 Technikon training students – (100% of designated group)

• 7 Engineering-in-training students – (86% of designated group)

• Supports the EduMap Programme – (65 core learners and 350 on the programme)

• Adopted a school (Kwadeda) in Zola, Soweto• Science lab, ICT lab, >pass rate


QUALITY, ENVIRONMENT & SAFETYQUALITY, ENVIRONMENT & SAFETY

• Achieved integration of Mintek’s quality, environmental and safety systems

• Mintek certified on 8 August 2002 to be compliant with the ISO 9001:2000 international quality standard

• Certification to the ISO14001 international environmental standard expected August 2003

• Awarded 3-star rating by NOSA for safety

• Disabling Injury Frequency rate (DIFR) of 1,8 equivalent to 4-star rating. Zero fatalities.


Molteno/Indwe Field

Nqura

SA Energy Map (gas, oil, coal)SA Energy Map (gas, oil, coal)Selected Mintek ProjectsSelected Mintek Projects

Pande;Temane pipeline

(Sasol/CEF/ENH)

Kudu Pipeline

A-K Field Pipeline

Lily Pipeline (Petronet)

Fe & Mn Fields

Ore Rail

HBI sites

FeNi & SS site

EMD sites

Musuku sites


SDI’s

R&D

Projects

SDI’s

R&D

Projects

SADC: Key ProjectsSADC: Key ProjectsSADC: Key ProjectsSADC: Key Projects


www.mintek.co.zawww.mintek.co.za

MintekMintek““helping make helping make

resources catalyze resources catalyze sustainable sustainable

development”development”

Thank you, Ke a leboga, EnkosiThank you, Ke a leboga, EnkosiKanimambo, Dankie, SiyabongaKanimambo, Dankie, Siyabonga

Documents

By Dr Paul Jourdan Mintek Presentation to the Parliamentary Portfolio Committee Science & Technology 10 th June 2003