mintek 2005/6 annual report presentation to ppc on...

Dr Paul JourdanCEO Mintek

Dr Paul JourdanCEO Mintek

Mintek2005/6 Annual Report

Presentation toPPC on

Minerals & Energy

Mintek2005/6 Annual Report

Presentation toPPC on

Minerals & Energy

Tuesday, 30 January 2007Tuesday, 30 January 2007

Earliest use of minerals - Homo habilis (Sterkfontein and Kromdraai, 1.7 - 2 million years BP)

Oldowan chopper cores and flake tool, Olduvai Gorge, Tanzania

Earliest recorded “quarrying” by hominids

History of Mining in Southern AfricaHistory of Mining in Southern Africa

Engraved plaque of ochre (hematite) from BlombosCave (Cape Province), 75 000 years BP

The earliest know example of symbolic art?The first human “writing”?


Underground ochre mine, Lion Cavern, Ngwenya, Swaziland, 20 000 - 43 000 years BP (Middle Stone Age)

. The world’s first underground mine (San people)!The world’s first underground mine (San people)!


Iron and copper mining and smelting, from c. 200 AD

1000’s of smelting sites across southern Africa!1000’s of smelting sites across southern Africa!

Venda-type iron smelting furnace, 1888

For axe heads, hoes, arrow heads, assegais, etc.


MapungubweMapungubwe

MapungubweMapungubwe, , cc. 1220 . 1220 --1270: Gold trade via the eastern seaboard to the 1270: Gold trade via the eastern seaboard to the Middle East and Asia wellMiddle East and Asia well-- established by established by cc. 900 AD. 900 AD


ZIMBABWEBOTSWANA

>4000 ancient gold mines inSouthern AfricaMing porcelain

•PMG note: Graphics not included, please email [email protected] for a full presentation.

mailto:[email protected]

Alienation of land and minerals• Mining integrated into European

economy (export-oriented)• Local entrepreneurs excluded from the

industry except as labour• Racial exploitation intensified under

“apartheid”Liberation 1994

• Minerals for development of all South Africans?

Alienation of land and minerals• Mining integrated into European

economy (export-oriented)• Local entrepreneurs excluded from the

industry except as labour• Racial exploitation intensified under

“apartheid”Liberation 1994

• Minerals for development of all South Africans?

Colonial period:Colonial period::History of Mining in Southern AfricaHistory of Mining in Southern Africa



SA MineralsSA Minerals

Transvaal SystemManganese HG 80%

Iron 5%

Wits SystemGold 40%

Uranium 9%

Bushveld ComplexPGMs 85%

Chromium 70%Vanadium 45%

(Titanium pot 60%)Plus: Fe, Ni, Cu, Co, S

COALCOAL

TiTi

TiTiTiTi

TiTi

COALCOAL

Mining Services

Industries

COALCOAL

Steel Consumption t/$1 million GDP(proxy for all metals)

0

5

10

15

20

25

30

1940 1950 1960 1970 1980 1990 2000 2010

Y

Stee

l Con

sum

ptio

n t?

$1 m

illio

n G

DP

Deflated GDP to 2004 $ terms

Post WWII Minority World Growth

Failure of global growth (Minority World hegemony)

Majority World takes off

Steel Consumption t/$1 million GDP(proxy for all metals)

0

5

10

15

20

25

30

1940 1950 1960 1970 1980 1990 2000 2010

Y

Stee

l Con

sum

ptio

n t?

$1 m

illio

n G

DP

Deflated GDP to 2004 $ terms

Post WWII Minority World Growth

Failure of global growth (Minority World hegemony)

Majority World takes off

ASIAN BOOM: > Resources DemandASIAN BOOM: > Resources DemandNew “scramble for resources”?

Source: IISI

High intensity, High intensity, sellers sellers mktmkt: :

Colonial systemColonial system

Low intensity, Low intensity, buyers buyers mktmkt: : stagnation & stagnation &

instabilityinstability

High intensity, High intensity, Africa’s new Africa’s new opportunity?opportunity?

Global Steel Intensity of Use

China + India > 3X China + India > 3X pop’npop’nof First World!of First World!

Source: BHPB PRCPRC

MINTEK: Background•• Established in 1934Established in 1934•• Permanent staff level of 524 (300 Permanent staff level of 524 (300

professionals) plus ~150 outsourcedprofessionals) plus ~150 outsourced•• Annual revenue of ~ R300 Annual revenue of ~ R300 mnmn

(2006/7) = $40 (2006/7) = $40 mnmn•• Comes under the Mintek Act: Board Comes under the Mintek Act: Board

appointed by Minister of Minerals & appointed by Minister of Minerals & Energy (new Board from March Energy (new Board from March 2007)2007)

•• Highly regarded in mineral Highly regarded in mineral processing and beneficiation processing and beneficiation expertise worldwideexpertise worldwide



Mintek Strategic Framework

The Mintek Strategy is Guided By:• The Mintek Act• The Mintek Compact with the

Minister of M&E• DME Strategic Plan 2006/7 – 2010/11• The President’s annual “State of the

Nation” Address• ASGISA/GIPSA• Other relevant legislation and policy

documents (BCMA, EEA, LRA, PFMA, etc.)

The Mintek Act

Objects:“…through R&D and technology transfer, to promote mineral technology, and to foster the establishment and expansion of industries in the field of minerals and products derived therefrom.”

Mintek Act No. 11783 of 1989

Introduction: Mission, Vision & Compact

Our VisionTo be global leader in mineral and metallurgical R&D

Our MissionTo serve South Africa by promoting technology,

industrial growth & development and human development

Our VisionOur VisionTo be global leader in mineral and metallurgical R&DTo be global leader in mineral and metallurgical R&D

Our MissionOur MissionTo serve South Africa by promoting technology, To serve South Africa by promoting technology,

industrial growth & development and human developmentindustrial growth & development and human developmentOur Shareholder Compact

1) to add value to South Africa’s mineral resources, through innovation & development of new beneficiation technologies & products;

2) to expand the country’s mineral technology industries;3) to develop mineral-based industries in SADC and throughout

Africa;4) to support growth of SMMEs in the minerals sector;5) to transform Mintek’s business practices and staff profile;6) to continuously improve QES indices

Our Shareholder CompactOur Shareholder Compact1)1) to to add valueadd value to South Africa’s mineral resources, through to South Africa’s mineral resources, through

innovation & development of new beneficiation technologies & innovation & development of new beneficiation technologies & products;products;

2)2) to expand the country’s to expand the country’s mineral technology industries;mineral technology industries;3)3) to develop mineralto develop mineral--based industries in SADC and throughout based industries in SADC and throughout

Africa;Africa;4)4) to support growth of to support growth of SMMEsSMMEs in the minerals sector;in the minerals sector;5)5) to to transformtransform Mintek’sMintek’s business practices and staff profile;business practices and staff profile;6)6) to continuously improve QES indicesto continuously improve QES indices

MINTEK IncomeMINTEK IncomeMINTEK Income

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

2006

/200

7

Financial Summary 2005/06 R 000’s % Change 2005/06 2005/04

Income 286 809 254 073 12.9

Government grants 95 509 88 632 7.8

Commercial income 161 006 143 738 12.0

Other operating income 18 162 5 686 19.4 Investment & income from associates 12 132 16 017 (24.3)

Expenditure 281 737 246 802 14.1

Staff costs 156 365 144 099 8.5

Operating costs and overheads 85 797 80 088 7.1

Post retirement benefit obligations 12 828 3 459 270.0

Depreciation 10 620 11 283 (5.9)

Fees for services 13 924 7 337 89.8

Other 2 203 536 311.0

Profit 5 072 7 271 (30.2)

Auditor General’s Report

2004/05 Annual Report:2004/05 Annual Report:•• All Audit Report items addressed and results restated in All Audit Report items addressed and results restated in

2005/62005/6•• Qualifications reduced from 17 to 2, despite only 3 Qualifications reduced from 17 to 2, despite only 3

months for rectificationmonths for rectification•• Corrective action implemented across Corrective action implemented across organisationorganisation2005/06 Annual Report:2005/06 Annual Report:•• Qualification on compliance of fixed assets to GAAP Qualification on compliance of fixed assets to GAAP

(impairment & revaluation)(impairment & revaluation)–– Full fixed assets review completed Full fixed assets review completed

•• Unearned revenue not fully compliant with requirements Unearned revenue not fully compliant with requirements of accounting standardsof accounting standards–– New ERP (New ERP (MySAPMySAP) implemented 1 April 2006: caters for full ) implemented 1 April 2006: caters for full

revenue recognitionrevenue recognition

AG’s Report 2005/6: Progress to Date

• New ERP system implemented with effect from 1 April 2006

• Significantly improved the control environment

• Initiated disciplined reporting systems

• Implemented revised accounting policies and operating processes (SOPs)

• Substantially completed reorganisation of Finance Division

• Appointment of new Managers: Financial, Purchasing, SBU and filled other posts

• Appointed new Internal Auditor (outsourced previously)

• Mini financial year-end for 04/06 to 12/06 completed

Finances 2006/07

Business Plan 2006/7:

• 15% growth in commercial revenue.

• 7% increase in staff costs.

• R17 million capital investment.

R6 million surplus (2% of income) forecast.

•New ERP (MySAP) implemented 1 April 2006.

•AG’s Report for 2005/6: 2 qualifications: assets & revenue recognition, will be addressed in 2006/07

•New Financial Systems management team in place

Summary of Science Vote Allocation 2006/07TECHNICAL DIVISION R Analytical Services 3 453 800 Small Scale Mining 3 700 000 Biotechnology 3 199 040 Advanced Materials 10 900 000 High Temperature Technology 3 205 800 Mineralogy 2 430 000 Hydrometallurgy 5 512 000 MESU 5 810 000 Measurement & Control 13 100 000 Pyrometallurgy 11 000 000 Minerals Processing 14 092 079 Information & Communication 3 382 198 Science, Engineering & Technology Promotion 8 640 000 Business Development 2 900 000 Engineering Support 2 130 000 TOTAL 93 453 917 Research infrastructure 10 146 083 BASELINE 103 600 000 REVISED VAT ADJUSTMENT 15 064 000 GRAND TOTAL 118 664 000

Priorities 2006/7

•• Optimise balance between commercial and R&D Optimise balance between commercial and R&D activities.activities.

•• ReRe--emphasise quality research as a core emphasise quality research as a core competency.competency.

•• Grow Mintek’s contribution to wealth creation, Grow Mintek’s contribution to wealth creation, poverty alleviation, and human capacity building.poverty alleviation, and human capacity building.

•• Retain the Mintek Brand nationally & Retain the Mintek Brand nationally & internationally with respect to research and internationally with respect to research and products.products.

•• Strengthen control and compliance systems & Strengthen control and compliance systems & capacitycapacity

Quality, Environment & Safety• Integrated Mintek quality, environmental and safety

systems. Independently audited annually (SGS)• ISO 9001:2000 (quality) 2002 - 2006• ISO 14001:2004 (environment) 2003 – 2006• ISO 17025 (accreditation of lab methods) 2006 (new)• OHSAS 18001:1999 (safety) 2004 - 2006• Lost-time Injury Frequency Rate (LTIFR) of 1.7• NNR accredited site • CDFR (Client Dissatisfaction Frequency Rate) <10%

Client Dissatisfaction Frequency Rate (CDFR)Client Dissatisfaction Frequency Rate (CDFR)

HRD PipelineHRD Pipeline

SMME- Artisanal & Small Scale Mining- Jewellery Training Programme

HIGH SCHOOL

- ABET & basic skills- Grade 11-12Girls’ Programme- Maths & Science upgrading, etc

- Mintek Science Quiz (MINQUIZ)- Mintek Engineering Awareness Programme (MEAP), etc

SCIENCE PROMOTION

TECHNICAL- Technician-in-Training- Engineer-in-Training

BURSARY SCHEME- Undergraduate- Post graduate (Masters, PhDs)

HIGH LEVEL SKILLS- Joint R&D with HEIs, Industry...- Symposia, conferences, etc

Bursar Pipeline 2001-2006Bursar Pipeline 2001-2006

2001 2002 2003 2004 2005 2007 est.

2006

Mintek’s HRD reflects national demographics ensuring long-term representivity &

sustainability; dependent on our ability to develop & retain our new graduates!

Transformation (ee)Transformation (ee)

0

10

20

30

40

50

60

70

80

90

2001 2002 2003 2004 2005 2006(projection)

% DG

management

professionals

technicians

Total DG

Mintek draft EE Plan: 2006-2009

Human Resources: 2006/7

•• Staff turnoverStaff turnover: retention strategy, : retention strategy, stronger HRD strategy, widen recruitment stronger HRD strategy, widen recruitment strategy.strategy.

•• Employment equityEmployment equity: increase Black : increase Black representation in professional (60%), representation in professional (60%), managerial (60%), and women managerial (60%), and women professional (35%) categories.professional (35%) categories.

•• HRDHRD: position : position MintekMintek as a quality HRD as a quality HRD service provider beyond current areas of service provider beyond current areas of learnershipslearnerships, , artisanalartisanal jewelleryjewellery and and smallsmall--scale mining. scale mining.

Specialists in mineral andmetallurgical technology

Mineral ProcessingMineral ProcessingHydrometallurgyHydrometallurgyBiotechnologyBiotechnologyPyrometallurgyPyrometallurgy

High Temperature Technology*High Temperature Technology*Advanced MaterialsAdvanced Materials

Process Control (MAC)Process Control (MAC)Analytical SciencesAnalytical SciencesEngineering ServicesEngineering Services

Artisanal & SmallArtisanal & Small--Scale Mining*Scale Mining*Kgabane (jewellery)*Kgabane (jewellery)*

Mineral Economics & Strategies and Mineral Economics & Strategies and Environment & SD*Environment & SD*

* New * New SBUsSBUs post 2001post 2001

Mintek Divisions (SBUs)Mintek Divisions (Mintek Divisions (SBUsSBUs))

MINTEK MANAGEMENT CEO & President, MINTEK

Paul Jourdan011 709 4682

Human Resourcesand Training

Monobe Manaka011 709 4373

Mineral Policy & Sustainable DevelopmentPetrus Fusi011 709 4779

TechnologyDr Roger Paul011 709 4934

Research and DevelopmentDr Molefi Motuku011 709 4485

Vimlan Govender011 709 4328

Corporate Services

AnalyticalScience

Monde Mtakati011 709 4053

PyrometallurgyTom Curr011 709 4642

Information & Academic SupportHaveline Michau011 709 4256

Small Scale Mining UnitNellie Mutemeri011 709 4942

MineralsProcessingAgit Singh

011 709 4339

BiotechnologyDr Tony Pinches011 709 4397

Mineral Economics & StrategySodhie Naicker011 709 4414

Measurementand Control

Dr Dave Hulbert011 709 4382

Advanced MaterialsDr Elma van der Lingen011 709 4471

KgabaneJewellery ProjectBusi Ntuli011 709 4034

HydrometallurgyDr Johan Nell011 709 4724

Engineering SupportNick Maritz011 709 4094

MineralogyDorrit de Nooy011 709 4163

High TemperatureTechnologyDr Johan Nell011 709 4724

Finance (Treasury)Hester Pretorius011 709 4698

Type

Innovative

Development

Routine

R&D Service DefinitionR&D Service DefinitionR&D Service Definition

States

Corporate

Operating Plants

Engineering Companies

SMMEs

Development agencies

Aim: To exceed our client’s expectationsAim: Aim: To exceed our client’s expectationsTo exceed our client’s expectations

Gold & uranium

Platinum metals

Ferrous metals

Industrial minerals

Non-Ferrous

Mintek Clients

Principal ProductsPrincipal ProductsPrincipal ProductsProcess Control SoftwareDC Arc FurnacesConcentration JigsGold & Silver RefineriesAdded-value Precious Metals

plants (GPC, alloys, 5-9’s Au, bars)Minfurns (carbon reactivation)Winnowing plants (new- Mittal)

New Uses for Gold (Project New Uses for Gold (Project AuTEKAuTEK))•• CatalysisCatalysis -- prepre--feasibility study completed for a feasibility study completed for a

gold catalyst demo plant. R&D on photogold catalyst demo plant. R&D on photo--catalysts catalysts started. PureAuroHstarted. PureAuroH22 system patented.system patented.

•• Biomedical Biomedical -- antianti--tumourtumour compounds to undergo compounds to undergo in in vivovivo testing. testing. In vitroIn vitro testing continuing on antitesting continuing on anti--malarial and antimalarial and anti--HIV compounds.HIV compounds.

•• NanoNano--technology technology -- dedicated dedicated nanonano--characterisationcharacterisationlab commissioned. Working with the DST to build lab commissioned. Working with the DST to build nanonano--science capacity in South Africa.science capacity in South Africa.

•• 64 researchers (70% PDI)64 researchers (70% PDI)•• Considerable support from NRF (THRIP) and DSTConsiderable support from NRF (THRIP) and DST

R&D Highlights: GOLD

Gold: AuTek, catalystsRespirator Application

Hopcalite - moisture sensitive, requires mol. sieveAu/Cat - moisture resistant, requires no mol.sieve

CO Breakthrough tests

Conclusion

Molecular sieve

CO oxidation catalystCanisterCanister

0.36% CO in air, RT, 64 LPM

Requirement < 0.035% CO

CO Oxidation Catalyst

Molecular Sieve

Relative Humidity

Breakthrough Time

CC CC % Mins

150 50 80 ~ 10

150 0 80 > 30Au/Catalyst

Hopcalite

Gold: AuTek, CO catalysis for Fuel Cells

AuroPureHAuroPureH22 systemsystem

25°C +80°C

Anode Humidifier

Contaminated H2

Au-based catalyst prior to anode humidifier Fuel Cell

Air bleed

Gold: Biomed R&D areas

BiomedBiomed Focus AreasFocus Areas

AntiAnti--HIVHIV

AntiAnti--MalariaMalaria

ringstage

rupturedschizont

maturetrophozoite

schizont

RBC

Erythrocytic cycle(lasts 48 hrs)

ringstage

rupturedschizont

maturetrophozoite

schizont

RBC

Erythrocytic cycle(lasts 48 hrs)

0 hrs

(36 - 48 hrs)

(16 - 36 hrs)(48 hrs)

(0 - 16 hrs)

AntiAnti--CancerCancer

Acid Mine DrainageAcid Mine DrainageMintek’sMintek’s novel SAVMIN technology cleans up acid mine novel SAVMIN technology cleans up acid mine waste water through the waste water through the pptppt of heavy metals and of of heavy metals and of calcium & calcium & sulphatesulphate (gypsum for cement). (gypsum for cement). SAVMIN selected by SAVMIN selected by MinTailsMinTails consortium (Harmony, consortium (Harmony,

DRD, DRD, MogaleMogale Gold) for demo plant on West Rand. This Gold) for demo plant on West Rand. This tech would also be applicable to other acid mine tech would also be applicable to other acid mine drainage (e.g. coal)drainage (e.g. coal)

Cyanide monitoring/auditingCyanide monitoring/auditingAudits scheduledAudits scheduled: Namibia, Tanzania, Ghana & Guinea. : Namibia, Tanzania, Ghana & Guinea. International centre of cyanide expertiseInternational centre of cyanide expertise: Increasing : Increasing recognition of recognition of MintekMintek as a global centre of cyanide as a global centre of cyanide knowledge. knowledge. Plan to extend to capabilities to Plan to extend to capabilities to arsenicarsenic monitoringmonitoring

R&D Highlights: GOLD (cont.)

Massive increase in uranium price (10X)!Massive increase in uranium price (10X)!

•• Process developmentProcess development for Dominion (Uranium for Dominion (Uranium One), One), VaalVaal River (AGA), River (AGA), KayelekeraKayelekera (Paladin), (Paladin), RossingRossing (RTZ) (RTZ) -- further expansion anticipated.further expansion anticipated.

•• New Uranium Technologies:New Uranium Technologies:: Fundamental Fundamental studies planned of alkaline leaching, acid heap studies planned of alkaline leaching, acid heap leaching, RIP and bioleaching.leaching, RIP and bioleaching.

•• Recovery of minor metalsRecovery of minor metals R&D initiative (Mo, R&D initiative (Mo, Rare Earths).Rare Earths).

•• African Uranium CentreAfrican Uranium Centre: Position : Position MintekMintek as as centre for African uranium work centre for African uranium work

•• NecsaNecsa:: Explore joint uranium projectsExplore joint uranium projects

R&D Highlights: Uranium

R&D Highlights - PGMsR&D Highlights R&D Highlights -- PGMsPGMs• Conroast smelting for PGM smelting of high Cr

concentrates: Will eliminate sulphur emissions and the chromite constraint, allowing higher PGM recoveries (Atomaer financed demo plant)

• Autocatalysts recycling project (Innovation Fund)• New uses for Palladium (DST and industry) • High temperature platinum based superalloys (DST,

Mining Houses)• Testwork to support feasibility studies for many new

mining projects.• Flotation control implemented in SA, Botswana,

Zimbabwe, Mexico, South America and Australia.• Recovery of PGMs from revert tailings (conroast)• PBC (Pt Beneficiation Committee) formed (PPP) to

identify downstream and sidestream (inputs) beneficiationopportunities- holistic approach.

CONROAST CONROAST pilot plant 24/7 for 18m

Pt-based Alloys for high temp & corrosive applications

Potential productsPotential products

Targeted at ~1300°C, specifically the land-based turbine industrySpin-off: alloys that can possibly be utilised more effectively in

existing situationsDue to superior properties, the alloys could prove more

economical because they last much longerTailored to be more formable → thin section nichesCoatings on a cheaper substrate or NBSAsCoatings + harder component → better wear resistance is

needed

Two main project aims:Two main project aims:•• Develop alloys suitable for a range of high temperature and Develop alloys suitable for a range of high temperature and corrosive applicationscorrosive applications

•• Produce thermodynamic database (using ThermoProduce thermodynamic database (using Thermo--CalcCalcTMTM))

R&D Highlights - Ferrous MetalsR&D Highlights R&D Highlights -- Ferrous MetalsFerrous Metals• Fe/Ti/V: Research into the production of a saleable Ti

slag from BC magnetites (potential resource 2X global)• Smelting testwork for Shevchenko FeNi project

(Kazakhstan)• Industrial-scale trials of low-nickel stainless steel

(Innovation Fund project)• Negotiations to introduce ‘smart’ rockbolt in mining

industry• Industrial trials of Aluminium grain refiners

(aluminothermic production route)• Assessment of iron making technologies (gas & coal

based) for several SA and African “prospects”.• Assessment of Ferrous R&D infrastructure in SA?

Smart rock bolts under testingSmart rock bolts under testing

R&D Highlights: Non-Ferrous MetalsR&D Highlights: NonR&D Highlights: Non--Ferrous MetalsFerrous Metals• Heap-bio-leach technology for low grade Cu ores being

piloted in Iran (NICICO): potential major applications in southern Africa (Namibia, Zambia, DRC)

• Co-ordinator of bioleaching work package for the EU’sBioMinE Project

• Two major BioPAD-funded projects• Thermal magnesium process development completed.

Demo-scale partner difficult to locate under current price (PRC) conditions

• R&D support for copper-cobalt projects in Zambia and the DRC

• MetRix (metal resin IX tech) Co, Ni or Zinc recovery (from low tenor feeds) demo plant sent to Zambia (project with Bateman Eng.)

METRIX modular demo plant for ZambiaMETRIX modular demo plant for Zambia

Heap bioleaching of lowHeap bioleaching of low--grade chalcopyrite oresgrade chalcopyrite ores

• Ground-breaking R&D that could valorise enormous Cu resources in Africa & elsewhere by dramatically reducing the cut-off grade;• 3 X 25kt heaps being processed (to -20ºC!), first Cu metal early 2006• Decision on feasibility study taken 01/2007;• Potentially applicable to low-grade copper deposits in southern Africa (eg. Haib and Copperbelt) and further afield.

World’s 1st HBL cathodeWorld’s 1st HBL cathode Bio-leach pondsBio-leach ponds

R&D Highlights - industrial mineralsR&D Highlights R&D Highlights -- industrial mineralsindustrial minerals

• Renewed interest in uranium - metallurgical investigations for two projects in SA and two in Namibia– Recovery of associated products (Mo, V, Ce)

• Evaluation of manganese ore samples from Gabon (CVRD)

• Sample characterisation on kimberlite ores• Analysis of dolomites for Mg production (Mg500)• Numerous projects on ASSM industrial minerals

(clay/ceramics, pegmatites, ornamental stone, etc.)



Support for Small-Scale MiningSupport for SmallSupport for Small--Scale MiningScale Mining

• SSM Division provides R&D, skills and access to finance to ASSM

• More than 800 small-scale miners trained - programmes supported by the MQA and Department of Labour

• Community-based training in glass bead-making, ceramics and alluvial diamond mining

• Training of SMMEs to enhance participation in mine rehabilitation programs

• Research SSM issues for the DME Sustainable Development Programme

• Contract research for SSM in other African Countries, e.g. gypsum mining in Nigeria

• Application of “iGoli” Hg-free ASSM gold recovery technology

• Agrogeo project to improve peasant farming and market gardeners

“iGoli“ Mercury-free gold extraction• iGoli was developed as an alternative gold recovery tech for ASSM

• Mercury is causing enormous enviro-mental and health damage in numerous countries (Tanzania, DRC, Brazil, etc)

• uses easily sources pool acid (HCL) & bleach (NaOCl) to dissolve and sugar or Na2S2O5 precipitate gold powder

• > recovery and > purity (99%Au) than mercury method



AmasoAmaso: Glass Beads from recycled bottles: Glass Beads from recycled bottles

•• Opaque beads from Opaque beads from powdered glasspowdered glass

•• Transparent beads Transparent beads from melted glassfrom melted glass

•• 5 bead making 5 bead making units set upunits set up



Ceramics Traditional and ModernCeramics Traditional and Modern

•• New markets & designsNew markets & designs•• Technical Technical –– stick fired kiln stick fired kiln •• Uses indigenous knowledge and Uses indigenous knowledge and

local raw materialslocal raw materials•• Practical training in incubatorPractical training in incubator



Ornamental Stone Working• Beneficiation of local raw

materials• Carving ornaments• Cutting boards & table tops• Cobble stones & headstones• Wide applicability



Agrogeo Project (“rocks for crops”)• Targets poor farmers and market gardeners who

cannot afford commercial fertilisers • Uses locally available raw materials• Soil ameliorants: improved fertility and crop production• “Slash” from lime, minerals, organic waste and ash;

rock flour from basic igneous rocks• Projects in 6 locations across SA & 2 in Zimbabwe



SocioSocio-- Economic ProjectsEconomic ProjectsKgabane

• ~400 rural people trained (90% women), most are active• Retailing at 10 local stores• 8 formal workshops & 15 informal• Providing R&D – such as soft 9ct gold• >26 rural women’s jewellery coops established• Looking for new outlets



Kgabane JewelleryKgabane JewelleryKgabane

• ~400 rural people trained (90% women), most are active• retailing at 10 local stores• 8 formal workshops & 15 informal• Providing R&D – such as soft 9ct gold• >26 rural women’s jewellery coops established• Looking for new outlets

established

New coops

Mineral Policy & Sustainable DevelopmentMineral Policy & Sustainable DevelopmentMineral Policy & Sustainable Development

• MESU - mapping out the options for strategic development of SADC’s and continental mineral resources (African Mining Partnership: AMP)

• Policy support to government on beneficiation initiatives, legislation and small-scale mining

• Just completed National Mineral Beneficiation Strategyfor DME;

• Mineral sector strategies for Provinces (N.Cape, Limpopo);• RBTS (Resource-Based Technology Strategy) -

completed overview of capital goods, techs, products and services supporting the mineral-based industries

• Effective Management of Natural Resources for Growth and Poverty Reduction in Africa for UNECA & AfDB

• Spatial Development Initiatives (with RSDIP and Nepad Spatial Development Programme)

• MESU - mapping out the options for strategic development of SADC’s and continental mineral resources (African Mining Partnership: AMP)

• Policy support to government on beneficiation initiatives, legislation and small-scale mining

• Just completed National Mineral Beneficiation Strategyfor DME;

• Mineral sector strategies for Provinces (N.Cape, Limpopo);• RBTS (Resource-Based Technology Strategy) -

completed overview of capital goods, techs, products and services supporting the mineral-based industries

• Effective Management of Natural Resources for Growth and Poverty Reduction in Africa for UNECA & AfDB

• Spatial Development Initiatives (with RSDIP and Nepad Spatial Development Programme)

Mineral Development Studies (MESU)Mineral Development Studies (MESU)Mineral Development Studies (MESU)

•• NEPAD: AfricaNEPAD: Africa--wide mineralwide mineral--based SDI assessment: To based SDI assessment: To identify potential Spatial Development Initiatives (identify potential Spatial Development Initiatives (SDIsSDIs) ) across Africa (most are mineralacross Africa (most are mineral--based as only minerals based as only minerals can fund the requisite infrastructure)can fund the requisite infrastructure)

•• SDI mineralSDI mineral--based RSDIP projectsbased RSDIP projects•• Concept study on the development of an Al industry Concept study on the development of an Al industry based on based on nephelinenepheline syenitessyenites in the Zambezi corridorin the Zambezi corridor•• ConceptualisationConceptualisation of the Maputo Metallurgical of the Maputo Metallurgical Complex (MMC) and identification of potential investorsComplex (MMC) and identification of potential investors•• Concept study on the Heavy Minerals downstream Concept study on the Heavy Minerals downstream opportunities in the opportunities in the ChibutoChibuto area (Corridor Sands)area (Corridor Sands)•• Cluster study of selected projects in the Zambezi SDICluster study of selected projects in the Zambezi SDI•• LobitoLobito and and MalangeMalange SDIsSDIs. Phase I of Angolan study. Phase I of Angolan study

Regional (Southern Africa) SDI Program: (RSDIP)

Based on Based on UNREALISED UNREALISED economic potentialeconomic potential

MAPUTOMAPUTO

Mature SDP Example: Mature SDP Example: The Maputo Development CorridorThe Maputo Development Corridor

Pande-Secunda Gas line. PPP Sasol completed

Coal-based Power Station2 transmission lines to Matola

completed

Liquid Fuels & Petro-chemicals: Sasol

Al smelter 500ktpaBHPB completed

Joburg-Maputo HighwayPPP- BOT completed

Port of Matola/MaputoUpgrades, PPP

Joburg to Maputo Railway line: Upgrade

GA

UTE

NG

GA

UTE

NG

MAPUTOMAPUTO

Pande-Secunda Gas line. PPP Sasol completed

Coal-based Power Station2 transmission lines to Matola

completed

Liquid Fuels & Petro-chemicals: Sasol

Al smelter 500ktpaBHPB completed

Joburg-Maputo HighwayPPP- BOT completed

Port of Matola/MaputoUpgrades, PPP

Joburg to Maputo Railway line: Upgrade

GA

UTE

NG

GA

UTE

NG

Major investments to date: Major investments to date: >$5bn>$5bnNew MDC Potential Projects:New MDC Potential Projects:

•• MozalMozal III (Al: $1bn) III (Al: $1bn) •• Corridor Sands (Ti & Fe: >$0.3bn) Corridor Sands (Ti & Fe: >$0.3bn) •• MMC: Maputo Metallurgical Complex (Fe & Steel: MMC: Maputo Metallurgical Complex (Fe & Steel:

>$1bn)>$1bn)•• MMC (Ti & Fe: $0.3mn)MMC (Ti & Fe: $0.3mn)•• FertiliserFertiliser complex (complex (PhosPhos & Nitrogen)& Nitrogen)•• ChlorChlor--alkali complex (alkali complex (ClCl, TiO, TiO22, , NaOHNaOH))•• Tourism Investments (Cluster: >$0.3bn)Tourism Investments (Cluster: >$0.3bn)•• Greater Greater LimpopoLimpopo TransTrans--frontier Park (underway)frontier Park (underway)

Mature SDP Example:Mature SDP Example:The Maputo Development CorridorThe Maputo Development Corridor

High Cu Magnetitedumps > 300 MT

Magnetite (>Cu)dump upgrading

plant

(Ti/V) MagnetiteSep. & conc. plant• magnetite• ilmenite

Rail

Slurry pipeline

Pande Gas Pipeline Gas Connector

RailwayMajor RoadDuvhaPower LinesPande GasPipeline

MDC phase II: MDC phase II: Maputo Metallurgical ComplexMaputo Metallurgical Complex

Other Potential:Ilmenite smelter Ti/Fe

Fertiliser plant N/PChlor-alkali plant Na/Cl

Fe pelletising plant

MMC:MMC:Iron (DRI) &Iron (DRI) &Steel PlantSteel Plant

Fe exports

Elec transmission

MMC Task Group:

Mintek, DTI, DPE, PMC.

SPI, CPI, CFM

Under implementationUnder implementation--The Zambezi Valley DevelopmentThe Zambezi Valley Development

Mt Mulanje bauxite

CaboraBassaHEP

MpandeUncuaHEP

Sena Sugar

Mt Muambe Fe

Moatize coking and steam coal (CVRD):

Sena Rail Rehab

Beira Port Rehab

Moatize Thermal Power Station

Elec trans-mission

Potential Al Smelter

Possible BOF Muambe Fe ore & coking coal

Alternative bulk (coal) rail route

Rehab of peasant cotton production

Alternative: Nacala Development Corridor

Nacala Bay: Natural deep-water port (60m)

Logistics could open up other potential: Agri (cotton, tea, copra,

sisal), Minerals (Ti, P, Ta/Nb), Tourism, resource-based industries

Moatize/MinjovaCoalfields

mintek 2005/6 annual report presentation to ppc on...

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