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
Specialists in mineral andmetallurgical technology
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
Specialists in mineral andmetallurgical technology
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
Specialists in mineral andmetallurgical technology
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
Specialists in mineral andmetallurgical technology
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
Specialists in mineral andmetallurgical technology
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)
Specialists in mineral andmetallurgical technology
Specialists in mineral andmetallurgical technology
• 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
Specialists in mineral andmetallurgical technology
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)
Specialists in mineral andmetallurgical technology
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?
Specialists in mineral andmetallurgical technology
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
Specialists in mineral andmetallurgical technology
• 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
Specialists in mineral andmetallurgical technology
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
Specialists in mineral andmetallurgical technology
• 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
Specialists in mineral andmetallurgical technology
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
Specialists in mineral andmetallurgical technology
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)
Specialists in mineral andmetallurgical technology
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
Specialists in mineral andmetallurgical technology
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
TECHNICAL HIGHLIGHTS (cont.)TECHNICAL HIGHLIGHTS (cont.)
Specialists in mineral andmetallurgical technology
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.
TECHNICAL HIGHLIGHTS (cont.)TECHNICAL HIGHLIGHTS (cont.)
Specialists in mineral andmetallurgical technology
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%
Specialists in mineral andmetallurgical technology
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
Specialists in mineral andmetallurgical technology
EDUMAPEDUMAP
HIV/AIDS programme (Itereleng/Ikageng)
HIV/AIDS programme (Itereleng/Ikageng)
SET WeekSET Week
OUTREACH PROGRAMMESOUTREACH PROGRAMMES
Specialists in mineral andmetallurgical technology
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
Specialists in mineral andmetallurgical technology
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.
Specialists in mineral andmetallurgical technology
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
Specialists in mineral andmetallurgical technology
SDI’s
R&D
Projects
SDI’s
R&D
Projects
SADC: Key ProjectsSADC: Key ProjectsSADC: Key ProjectsSADC: Key Projects
Specialists in mineral andmetallurgical technology
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