By Dr Paul Jourdan Mintek

Specialists in mineral andmetallurgical technology

By Dr Paul Jourdan

Mintek

By Dr Paul Jourdan

Mintek

Presentation to the Parliamentary

Portfolio Committee

Presentation to the Parliamentary

Portfolio Committee

14 May 200314 May 2003


1 233

8 377

83 623

112 914

204 914

114 946

13 041

78 160

206 147

Surplus

Capital Expenditure

Overheads and Operating Expenditure

Staff Costs

Expenditure

Own Income

Earmarked funding

Core funding

Income

R X103

PROVISIONAL FINANCIAL SUMMARY 2002/2003

PROVISIONAL FINANCIAL SUMMARY 2002/2003


MINTEK INCOME (R X 103)MINTEK INCOME (R X 103)

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

CoreCore

EarmarkedEarmarked

Non-stateNon-state

TotalTotal


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 “Enviroplas” technology

• 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)


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



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