Strategic Plan 2010/11 to 2012/1323 April 2010

Abiel MngomezuluCEO, Mintek

Mining Value Chain

Exploration Mining Concentration Refining Value Addition

GeneralPyrometallurgy

Mining value chain

Hydrometallurgy& Biotechnology

CGS MINTEKCSIR

Inventions

Measuring Knowledge

InventionsPatents

inventions IN use

patented inventions NOT use

patented inventions IN use

inventions NOT in use

• A patent represents the output of a research process• However, NOT ALL inventions are patented, and NOT ALL patents are equal

only a subset of inventions are brought to marketfurthermore, only a subset of inventions is patented

Distribution of researchers

Source: UNESCO Institute for Statistics estimates, September 2009

Global distribution of researchers per million inhabitants

R&D intensity

Source: UNESCO Institute for Statistics estimates, September 2009

Gross domestic expenditure on R&D as a percentage of GDP

Mintek projects world-wide

MINTEK

(development activities

Sensor

Nanotechnology Unit

Biolabel

Nanotechnology Unit

Wat

er

Nan

otec

hnol

ogy

Uni

t

University of Johannesburg

University of the Western Cape

Rhodes UniversityR e s e a r c h

N e t w o rk

R e s e a r c h

N e t w o r k

NIC Model

From Nanoscience to Nanotechnology

Diamond Provenance

Project with the SADPMR to investigate the origins of rough diamonds (in support of the Kimberley Process)

Mintek Smelter Upgrade

3MW furnace shell arriving at Mintek

Mintek Smelter Upgrade

Furnace with roof on

ConRoast Development Programme

ConRoast PGM demonstration smelter upgraded – capacity doubled to 2000 tons per month.

Biotechnology

Heap bioleaching of primary copper sulphides demonstrated on a large scale.

Technology being implemented at industrial scale by NICICO, Iran.

Process applicable to many low-grade copper deposits in Latin America, Africa, Middle East.

Portability of the Programme

after

Planning Process at Mintek

Stra

tegic

Plan

Ses

sion

All M

anag

ers a

nd

Boar

d Mem

bers

Conso

lidat

ion H

igh L

evel

Plan

s

NOV

Detailed Plans

All Staff

Detailed Planning

DEC/JAN

All M

anag

ers

Hig

h Le

vel P

lans

OC

T

Mid

-term

R

evie

wsAPR

All StaffWork according to Plan

Implementation of

Stretegic Plan

SEPT

Input into ENE

Document

General Managers

Treasury revised

estimates

FEBConsolidation

of all Plans

CEO and General

Managers

Compact

MA

R

Review

of C

ompact

Minister

(DM

R)

Signed Com

pact

Revenue Trend

Including revenue reserves

Actual revenue per month Analysis

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

Apri

l

May

Ju

ne

July

Aug

ust

Sep

tembe

r O

ctober

Nove

mber

Dece

mber

Janu

ary F

ebrua

ry

March

2007

2008

2009

2010

Revenue Trend

Including revenue reserves

Accumulated Revenue trend

-50,000,000

100,000,000150,000,000200,000,000250,000,000300,000,000350,000,000400,000,000450,000,000500,000,000

April May June July August September

October November

December

January February March

2007

2008

2009

2010

Expenditure Trend

Excluding salaries

Monthly actual Expenditure trend

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

Ap

ril

May

Ju

ne

July

Au

gust

Sep

tembe

r O

ctobe

r N

ovem

ber

Dec

embe

r J

anua

ry F

ebru

ary

March

2007

2008

2009

2010

Expenditure Trend

Excluding salaries

Accumulated Expenditure trend

-

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

Apr

il

May

Ju

ne

July

Aug

ust

Sep

tembe

r O

ctober

Nove

mber

Dece

mber

Janu

ary

Feb

ruary

March

2007

2009

2008

2010

Finances

Revenue Streams

SOURCES OF REVENUE 2009/2010Science-Vote

This refers to Mintek’s annual allocation of state funding that is to be utilised for research and development in fulfilment of Mintek’s mandate and compact that is approved annually by the Department of Mineral Resources.

Earmarked revenueFunds received from government or government agencies for contractually agreed research/work to be performed.

Commercial revenueWork performed based on knowledge and skills obtained mainly from prior research undertaken.

Other incomeRental income from Mintek property, interest income, library fees, conference facility, etc.

Revenue StreamsNEW CATEGORIES OF REVENUE 2010/2011State-grant

This refers to Mintek’s annual allocation of state funding that is to be utilised for research and development in fulfilment of Mintek’s mandate and compact that is approved annually by the Department of Mineral Resources.

Contracted researchResearch and development performed in terms of a specific mandate from a customer, be that government or private companies. Research is classified as the freedom to design and explore new technologies, methods or applications.

Products and servicesWork performed that is not classified as research and will include but is not exclusive: products sold, advice and expertise given, training provided, application of proven methods, etc.

Other incomeRental income from Mintek property, interest income, library fees, conference facility, etc.

Revenue Analysis

INCOME DERIVED FROM DIFFERENT SOURCES OF REVENUE

Income [‘000 Rand] 2009/10 Forecast

2010/2011

State grant 122 049 130 383

Contracted research 40 202 42 257

Products and services 192 384 228 687

Sundry Income 21 025 15 360

Total Income 375 660 416 687

Revenue Analysis

Expenditure Analysis

Profitability Analysis

Research Areas

Research Areas

Conclusion

In conclusion:•As a research institution Mintek

is sustainable on commercial

activity but lagging behind on research and development.

•Mintek

is managing resources effectively to maximize

deliverables for example Science-vote is fully ring-fenced and outputs closely monitored in a cluster environment.

•If state-funding could be increased, the intervention to second economies could be improved without an expectation for immediate returns to sustain Mintek.

Corporate Services Plans

Mintek Dermographics

Human Resources Management and Development

• Human and organisational development

• -Human Capital Development

-Talent Leadership

-Transformation

-Performance Management

Information and Communication

• Human and organisational development

• Maintenance of R & D Competence

• -Promoting Scientific and Innovation excellence through information and knowledge management through:

– Communications

– Library

– Registry

– Event Management

Corporate Governance and Organisational Compliance

• Good Governance

• -Company Secretariat / Board Support

• -Information management central point in line with Access to information requirements

• -Ensure compliance with appropriate legislation

• -Check compliance with company policies and other terms and conditions

Divisional Plans

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200

Mineral

Proce

ssing

Pyrom

etallu

rgyHyd

rometa

llurgy

Analy

t ical

Servic

es

Engin

eerin

g Serv

ices

TOTA

LAd

vance

d Mate

rials

Econo

mics &

Strat

egy

Measure

ment &

Contr

ol

Small

Scale

Mining

Biotec

hnolo

gyMine

ralog

yTO

TAL

Reve

nue

(R m

illio

n)

Products and ServicesContract ResearchState grant

TECHNOLOGY DIVISIONS R & D DIVISIONS

Technology Divisions focus on Products & Services

Mineral Processing Division (MPD)

• Assess new ore deposits to determine optimum processing technology, flowsheet and equipment

• Improve existing operations by increasing process efficiency

• Evaluate new equipment and techniques for application to local operations

• Reduce water and energy footprint of mineral beneficiation plants

• Develop mathematical models that simulate processing circuits, so that they can be optimised

Separation of metals from ores without chemical alteration

Pyrometallurgy Division (PDD)

• Commercialise proprietary Mintek technologies like ConRoast, magnesium MTMP and ferronickel smelting

• Continue development of processes for smelting ferromanganese sludge and high grade nickel residue

• Develop environmentally cleaner processes (stack emissions and solid wastes, increased energy efficiency)

• Early stage development of titanium production and improved electrode technology

• Fundamental research into molecular- and arc modelling

Processing of ores or metals using high temperature processes

Hydrometallurgy Division (HMD)

• Develop novel technologies for uranium, base metals gold and PGMs

• Assist industry with compliance testing for cyanide and arsenic in effluents

• Establish Mintek as leader in cleaner technologies – water and waste management, optimised energy efficiency

• Develop more cost effective technology for treating local low grade ore and mine residues

• Develop technology for treating complex copper, cobalt and nickel ores in Botswana, Zambia and the DRC

Recovery or separation of metals using liquid processes

Analytical Services Division (ASD)

• Provide high calibre analytical support to Mintek divisions

• Provide market-competitive services to external clients

• Develop techniques for improved analysis of environmental samples

• Improve analysis accuracies and detection limits for more complex samples

• Increase Certified Reference Material product line

Determination of chemical composition of materials

Engineering Services Division (ESD)

• Improve focus on work of capital project nature, both to Mintek divisions and external clients

• Market proprietary Mintek’s engineered products

– (Minataur® gold refining,

– small DC furnaces,

– MinFurn® carbon regeneration furnaces,

– Hot metal atomising and granulating,

– MDS Jig

Provision of engineering services and products internally and externally

Mining Value Chain

Exploration

VAPS: Value Added Products & Services

CGS

MN

L, ASD

, MESU

Refining

PDD, MAC

HMD, BIO, MAC

HMD

VAPS

CSIR MINTEK

Mining

SMMB

Concentration

MPD, MACHydrometallurgy& Biotechnology

Pyrometallurgy

AMD, MAC, ESD

Mineralogy

Mineralogical investigations provide the information that can be used to predict and explain the behaviour of minerals, ores and derived products during recovery and metallurgical processing.

• Ore characterisation, mineral association and liberation studies

• Three dimensional ore characterisation using tomography

• Automated two dimensional scanning electron microscopy characterisation focused on PGMs

• Ultra-sensitive chemical and physical techniques to test whether diamonds and coltan can be discriminated/identified by source

• Gemmological studies towards socio- economic development

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0 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00KeV

Cou

nts

Mineral Economics & Strategy Unit

Mineral based studies to support economic & social development

Platinum beneficiation

Mineral Economics• Mineral scans• Local and Regional mineral-based economic

studies• Evaluation of mineral-based beneficiation

opportunities

Mineral Development• Spatial development initiatives• Policy support• Industrial and Development Strategies• Natural resource planning• Implementation guidelines

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10

Gold

0%

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300%

400%

500%

600%

700%

800%

Indexed Commodity Prices(Indexed to 1 Jan 2001)

Gold Platinum Palladium Rhodium Copper Nickel Brent

Small Scale Mining & Beneficiation

Development, Support and Incubation of SMME’s in the minerals sector

• Development, adaption and transfer of technologies to SMMEs

• Training & skills development of at least 400 learners per year in jewellery and small scale mining

• Creation of at least 40 sustainable start-ups and 500 jobs (3 years)

• Development of soil ameliorants (fertilizers) using a combination of minerals & various biological waste products

• Maintain the Ceramic & Jewellery Incubators

• Maintain accreditation status as training service provider with MQA

Advanced Materials Division

Develops mineral-based value added products & services for different applications

Biomedical : Develops metal-based drugs for HIV, malaria & cancer

Catalysis: Develops precious metals (gold & platinum-group metals) based catalysts & pilot plants

Nanotechnology: Develops devices in health and water to improve quality of life

Metallurgy: Develops products and services to enhance local metallurgical industries

Identification of downstream metals-based industrial manufacturing opportunities

Biotechnology

The utilisation of the processes of living organisms to satisfy human needs

• Leaching of sulfide minerals in tanks or heaps

– (to extract copper, nickel, gold, uranium). – Heap bioleaching (Iran, Chile), agitated– Bioleaching (Mexico, Tasmania, Chine), – Uranium and copper (Southern Africa)

• Biosynthesis of products and chemicals– (producing gold-nano particles, surfactants,

biofuels)

• Bioremediation of process water for recycle

• Metal absorption by plants

• Soil stabilisation by roots on mine dumps

Measurement & Control Division

Develops and Commercialises Specialised Instruments and Advanced Process Control Systems for the Minerals Industry

• Competitive Technologies, Products and Services for Optimal Resources Utilisation

– Flotation Reagent Measurement & Concentrate Grade Optimisation

– Robust Non-linear Model Predictive Control for Communition and Hydrometallurgy

– Data-based Dynamic Process Performance Optimisation

• Sustainable Resource Management– Ferroalloy Smelter Energy Management

– Gold Leach Cyanide Usage and Emission Minimisation

Concluding remarks

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Mill

ions

State Grant Total Income Other revenue

1968-2009 Annual Income

Thank you

www.mintek.co.za

Mintek – your partner in unlocking mineral wealth