10th June 2003
Presentation to the
Parliamentary Portfolio
Committee
Science & Technology
By
Dr Paul Jourdan
Mintek
Specialists in mineral and
metallurgical technology
Mintek: Adding value to our
Natural Resources
Exploration
Mining,
Resource
Processing
Refining
Fabrication
Mineral separation, Smelting, Leaching
Mineral analysis, Special Alloys, Smallscale Mining, Jewellery, Enviromin, etc.
Specialists in mineral and
metallurgical technology
FINANCIAL SUMMARY
2002/2003
R’k
Income
207 960
Core funding
Earmarked funding
Own Income (incl. post-retirement fund interest)
Expenditure
214 128
Staff Costs
Overheads and Operating Expenditure
Depreciation
121 408
85 226
7 494
Shortfall
Forex losses (11:1 to 8:1)
Avmin royalty
Mindev investment
Transformation
Operating Shortfall
Total
78 160
9 521
114 718
6 168
R2mn
R3mn
R5mn
R1mn
R6mn
R17mn
Specialists in mineral and
metallurgical technology
MINTEK INCOME
350,000
Core
300,000
Earmarked
Non-state
Total
200,000
150,000
100,000
50,000
2005/2006
2003/2004
2001/2002
1999/2000
1997/98
1995/96
1993/94
1991/92
1989/90
0
1987/88
Rands X 1000
250,000
Specialists in mineral and
metallurgical technology
MINTEK MANAGEMENT
CHIEF EXECUTIVE OFFICER
Technology
Research
Technology
Commercialisation
Business
Services
Corporate
Relations
Corporate
Services
Human
Resources &
Training
Finance
(Treasury)
Pyrometallurgy
Mineralogy
Analytical
Science
High Temp.
Technology
Bioleaching
Hydrometallurgy
Minerals
Processing
Process Eng.
Services
(Mintek Exco)
Physical
Metallurgy
Small Scale
Mining Unit
CEO (50%)
Information &
Publications
Mindev
COO
Measurement
& Control
Engineering
Support
MESU
HDSA
PROJECTS (JVs)
Specialists in mineral and
metallurgical technology
MINDEV CORPORATE STRUCTURE
MINDEV BOARD (CHAIR – PP JOURDAN)
MINTEK EXECUTIVE MANAGEMENT
MINDEV CEO
NA BARCZA
(50%)
PUBLIC OFFICER
YUNUS OMAR
SUBSIDIARY COMPANIES
ATOLL
Bateman Titaco
Mindev
50%
50%
TOLLSORT
Mindev
IMS Eng.
SPH
B&H
25%
25%
25%
25%
MOGALE
Mindev 30%
PGR
30%
Atoll
20%
BEE
30% (10%DGE Trust)
(Sebeso)
MUSUKU
Mindev
Harmony
BEE
40%
40%
20% (Laetoli)
Specialists in mineral and
metallurgical technology
MINDEV SUBSIDIARIES
•
•
•
•
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
Specialists in mineral and
metallurgical technology
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 and
metallurgical technology
BEE Business Partners
•
•
•
•
•
•
PDI
>51% HDSA
Broad-based (equity)
Tech expertise
Finance (balance sheet)
Biz expertise
BEE
dbase
Advert
BEE
shortlist
•
•
•
•
BEE
Selection
Core BEE partner in broad
tech areas (eg DC plasma)
Local BEE on discrete
investment projects
BEE R&D partners?
BEE IP funding?
BEE
Financing
BEE
Partner
Informal
Other
dbases
Deposit?
Specialists in mineral and
metallurgical technology
REGIONAL STUDIES Completed or underway
•
•
•
Mineral potential of the Gariep SDI of the Northern Cape
•
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)
Mozambican part of the Beira Corridor and Zambezi SDI
First phase of a mineral scan for the Nacala corridor in Mozambique,
Malawi and Zambia
Mineral Economics and Strategy Unit
Specialists in mineral and
metallurgical technology
RESOURCE-BASED SUSTAINABLE DEVELOPMENT
•
•
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
Mineral Economics and Strategy Unit
Specialists in mineral and
metallurgical technology
1. Beneficiation (RBI);
2. Resource Inputs: Capital Goods & Services
expl. capital goods
• geophysical
• drilling
• survey
• etc.
Exploration
exploration services
• GIS
• analytical
• data processing
• financing
• etc
mining capital goods
• drilling
• cutting
• hauling
• hoisting, etc.
Mining
mining services
• mine planning
• consumables/spares
• sub-contracting
• financing
• analytical, etc
processing cap. goods
• crushers/mills
• hydromet plant
• materials handling
• furnaces, etc.
Mineral
Processing
processing services
• comminution
• grinding media
• chem/reagents
• process control
• analytical, etc
knowledge-based resource-inputs industry
Specialists in mineral and
metallurgical technology
RURAL DEVELOPMENT & POVERTY ALLEVIATION
•
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
Mineral Economics and Strategy Unit
Specialists in mineral and
metallurgical technology
ALEXKOR
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
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
Specialists in mineral and
metallurgical technology
TECHNICAL 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 and
metallurgical technology
TECHNICAL HIGHLIGHTS (cont.)
PLATINUM
•
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 aeroengines with RR)
Specialists in mineral and
metallurgical technology
TECHNICAL HIGHLIGHTS (cont.)
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
Specialists in mineral and
metallurgical technology
TECHNICAL HIGHLIGHTS (cont.)
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.
Specialists in mineral and
metallurgical technology
ALLOCATION 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 Innovation
SMME
SET/HRD
Total
R60,4m
74,7%
R6,5m
8,0%
R14,0m
17,3%
R80,9m
100%
Specialists in mineral and
metallurgical technology
PROJECTED TRANSFORMATION
From Base Year 2000, to 2008
MANAGERS
EXECUTIVE
16
14
12
10
8
6
4
2
0
16
14
12
10
8
6
4
2
0
2000 2003 2004 2006 2008
NON-DG
DG
2000 2003 2004 2006 2008
NON-DG
DG
Specialists in mineral and
metallurgical technology
OUTREACH PROGRAMMES
Specialists in mineral and
metallurgical technology
HUMAN 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 and
metallurgical technology
QUALITY, 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 4star rating. Zero fatalities.
Specialists in mineral and
metallurgical technology
SA Energy Map (gas, oil, coal)
Selected Mintek Projects
Pande;Temane
pipeline
(Sasol/CEF/ENH)
Fe & Mn Fields
Lily Pipeline (Petronet)
Kudu Pipeline
Ore Rail
Molteno/Indwe Field
A-K Field Pipeline
Musuku sites
Nqura
HBI sites
FeNi & SS site
EMD sites
Specialists in mineral and
metallurgical technology
SADC: Key Projects
SDI’s
R&D
Projects
Specialists in mineral and
metallurgical technology
Mintek
“helping make
resources catalyze
sustainable
development”
Thank you, Ke a leboga, Enkosi
Kanimambo, Dankie, Siyabonga
www.mintek.co.za
Specialists in mineral and
metallurgical technology