2011/12 Strategic Plan Briefingto the

Parliamentary Portfolio Committee

22 June 2011

Mintek

•

CORE BUSINESS–

R&D of efficient mineral processing technologies

–

R&D of green technologies–

Promotion of mineral based economies

–

Build world class R&D excellence

•

OTHER–

Uphold good governance

–

Ensuring short term viability and long term sustainability of Mintek

–

Enhancing Mintek’s

visibility and credibility

Slide 2 of 52

Mintek

management structure

As at 31 May 2011

CEOMr Abiel Mngomezulu

RESEARCH & DEVELOPMENT

Dr Makhapa Makhafola

FINANCESakhi Simelane

BUSINESS DEVELOPMENTDr Roger Paul

TECHNOLOGYPeter Craven

CORPORATE SERVICESAdv Mamokete Ramoshaba

ADVANCED MATERIALSDr Elma van der Lingen

BIOTECHNOLOGYPetrus van Staden

MEASUREMENT& CONTROL

Paul Brereton-Stiles

MINERALOGYNosiphiwo Mzamo

SMALL-SCALE MINING& BENEFICIATION

Nirdesh Singh

FINANCEHester Pretorius

ESTATE MANAGEMENT SERVICES & FACILITIESMuzi Ntombela

MINERAL ECONOMICS & STRATEGY UNIT

Vacant

ANALYTICAL SERVICESMonde Mtakati

ENGINEERING SUPPORTKhulekani Ngcobo

HYDROMETALLURGYDr Leon Krüger

MINERAL PROCESSINGAlan McKenzie

PYROMETALLURGYTom Curr

INFORMATION & COMMUNICATIONS

Haveline Michau

HUMAN RESOURCES DEVELOPMENTMakgomo Umlaw

Slide 3 of 52

Mining Value Chain

Exploration Mining Concentration Refining Value Addition

Pyrometallurgy

Hydrometallurgy& Biotechnology

CGS MINTEK

CSIR

Slide 4 of 52

Planning cycle

Q4Compact

Business PlansFinancial Plans

(Progress Review)

Q1Opportunities

Priorities(Progress Review)

Q2Guidelines

Call for Submissions(Progress Review)

Q3Strategic Session

Work Package ReviewBudget Allocation(Progress Review)

Slide 5 of 52

Financial controls and monitoring

State Grant

KPA KPA KPA

Cluster Cluster

Work Package$$$

Work Package$$$

Work Package$$$

Cluster Cluster

Work Package$$$

Work Package$$$

SBU

Project

Project

Project

SBU

Project

Project

ProjectSlide 6 of 52

Planning Cycle

Planning Cycle

BASE METALS RESEARCH CLUSTER

Slide 9 of 52

Base metals research: opportunities

•

Industries in neighbouring countries represent a market for South African technology, laboratory, design, construction, supply and maintenance services

•

Maximise

reserve base

•

Minimise

energy and water consumption

•

Minimise

environmental footprint

•

Downstream value-addition

•

Improved analytical tools

Slide 10 of 52

Base metals research Cluster   12,835 

WP Work Package TitleOwner Div. Value Proposition Statement  Total 

BM1Base Metal Flotation Measurement & Optimisation

MAC

To optimise the recovery of Base Metal Sulphides in the flotation process through the development and application of advanced process control and novel measurement instruments for reagents.

      1,400 

BM2Microbial management of 

heap leach operationsBIO

To establish a better understanding of the microbiological aspects of heap bioleaching processes, which could potentially be a step towards achieving faster start‐up of heaps, accelerated rates and achieving better metal extractions.

      1,200 

BM3 Fe removal, SO2/air HMD

To optimise the performance of the downstream purification circuits of base metal plants locally and in Southern Africa by the removal of iron and manganese in an efficient and cost effective manner through the process development of the air-SO2/H2SO3 technology, which will dramatically reduce the costs and risks around gas introduction into slurry systems of this nature

1,310

BM4a Development of Metrix HMD

To demonstrate the benefits of RIP technology in recovery of valuable (base) metals from waste streams, thereby reducing the environmental impact of solid and liquid streams from base metal plants.

1,000

BM7 Ore geosciences BIO

Develop test protocols and software whereby the gangue chemistry of ore for heap leaching can be evaluated on laboratory scale, for rapid and low-cost evaluation of the anticipated reagent cost, which is usually the dominant operating cost item for heap leach operations.

1,620

BM11Demonstration of reagent recycle

HMD

To optimise the recovery and recycle of magnesium hydroxide from waste streams of Base Metal hydrometallurgical precipitation circuits.

1,255

Slide 11 of 52

FORENSIC MINERAL CHARACTERISATION

SADPMR –

MINTEK DIAMOND PROVENANCE PROJECT

Slide 12 of 52

•

Develop a forensic method for diamond provenance, and ascertain

if this can be used for discrimination

•

Build a SADC database of gem-quality diamonds (mainly alluvials), characterising

shape, colour, surface features, breakage, infrared spectra, trace elements. *Conflict diamonds are mostly alluvial in origin, and the majority of alluvial diamonds are gem-quality

• Emphasis on real production type samples –

gems not coated stones

• Control ABSOLUTELY the provenance of the samples

• Share information with sample providers and the scientific community

• Build local skills and methods with all interested parties

The project

Slide 13 of 52

Who is/has been involved in Diamond Provenance?

◊

Macquarie University, Australia (academic)

◊

Royal Canadian Mounted Police, Canada (forensic)

◊

Graham Pearson’s group: Durham University, U.K./Univ. of Alberta, Canada (academic)

Slide 14 of 52

Process Control Products(Spread over many Clusters)

Slide 15 of 52

MaC

-

strategy

• Specialise–

Solve Specific Metallurgical Process Measurement & Control Problems

–

Be the Best–

Stay the Best

• Produce Products (Hardware & Software)–

Package IP into Products

–

Adapt & Apply Technology for Industry Use–

Develop Once and Replicate

–

Minimise Commercial Labour Commitment

Slide 16 of 52

ENV6 -

Cyanide measurement and control

MintekMintek CynoprobeCynoprobe(0.5 –

3000ppm)

Need to measure 22 ppb(0.022ppm) for river discharge!

Slide 17 of 52

• Water-

& Energy Efficient Processing

• International collaboration

• PGM Processing

Slide 18 of 52

•

SA is 2nd only to Russia in using the highest amount of electricity to produce a unit of GDP, because SA:

–

has a large, energy- intensive resource extraction

component–

historical low energy cost

Beneficiation and energy usage

Slide 19 of 52

Electricity consumption per sector

Denotes mineral or metal activity

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Dome

stic u

se

Oil &

 Chem

icals

Comm

ercia

lGo

ld

Othe

r Man

ufactu

ring

Steel 

& fo

undr

iesAlu

miniu

mPla

tinum

Electr

ificati

onFe

rroch

rome

 Ag

ricult

ural

Food

 & Be

vera

gePa

per &

 Pulp

Othe

r mini

ng &

 proc

essin

g

Non‐m

etall

ic M

inera

lsTit

ania 

slag

Rail t

ransp

ort 

Ferro

mang

anes

e

Texti

les &

 Clot

hing

Othe

r fer

roall

oys 

Base

 met

als  

GW

Minerals  & metals  industry 38%

Domestic15%

Industry (excluding mines  & smelters)

13%

Oil & Chemicals12%

Paper & Pulp3%

Agriculture4%

Textiles  & clothing2%

Food & Beverage3%

Commercial10%

Slide 20 of 52

•

Waste reduction before processing by selective mining and pre-concentration

•

Improved crushing and grinding•

More efficient smelting

•

Underground processing

Energy reduction ways

Slide 21 of 52

24/06/2011

CommoDas

sorter

Slide 22 of 52

Rados

sorter

Slide 23 of 52

Of a total research budget of €53 billion, EU spends €32 billion on Cooperative Research

This is the budget element generally applicable for mining and metallurgical R&D

Slide 24 of 52

Companies: – BHP Billiton– Boliden– Deutsche Montan Technologie – KGHM– K + S AG– LKAB– Luzenac

Group– Meed– Outokumpu Technology– Deutsche Steinkohle AG– Rio Tinto– S & B Industrial Minerals– SGL Carbon– Technip– Tecnicas Reunidas

Research institutes and Geological surveys:– BRGM (France)– GTK (Finland)– Mintek (South Africa)

Associations:–

EneRG, the European Network for Research in Geo-energy

–

EURACOAL, the European Association for Coal and Lignite (23 members)

–

EuroGeoSurveys, the Association of the European Geological Surveys (29 members)

–

EUROGIF, the European Oil and Gas Innovation Forum (15 members)

–

Euromines, the European Association of Mining Industries

–

EUROROC, the European and International Federation of Natural Stones Industries

–

IMA-Europe, the European Industrial Minerals Association (300 members)

–

MINFO, the Swedish Mineral Processing Research Organisation (14 members)

Associations (continued):–

MIRO, Mineral Industry Research Organisation (32 members)

–

MITU, the Swedish Mineral Industry Research Organization (4 members)

–

Polish Non Ferrous Metal Platform–

UEPG, the European Union Association of Aggregate Producers (19 national Federations of producers)

Academia: –

Ecole des mines de Paris –

Centre de Geosciences

–

RWTH University of Aachen, Germany

–

TNO–

University of Technology Lulea, Sweden

–

University of Leoben, Austria

Mintek

is the only non-EU member of the HLG

Slide 25 of 52

Mintek’s

unique strength

Slide 26 of 52

PGM Cluster –

broad strategy

• Maximise reserve base

• Minimise energy and water use

• Minimise environmental footprint

• Improve process technology

• Develop downstream use of PGMs

• PGM recycling

• Improved analytical and mineralogical methods

Slide 27 of 52

HeadingThe ConRoast-

Bay 2

Slide 28 of 52

Proposed new atomiser facility

Slide 29 of 52

VALUE ADDED PRODUCTS AND SERVICES (VAPS)

Slide 30 of 52

Beneficiation chain

ExplorationExploration Mine Mine DevelopmentDevelopment

MiningMining

Smelting & Smelting & RefiningRefiningMetalsMetals Milling & Milling &

ConcentratingConcentrating

Semi Semi ––

Finished Finished ProductsProducts

Advanced Advanced ProductsProducts

Slide 31 of 52

Advanced materials division

BIOMEDICAL• Gold-based Drugs(HIV, Malaria & Cancer)

CATALYSIS• Gold-catalysis• Centre of Competence

Fuel Cell Catalysis• PMDN

NANO• Gold-based Nano•

NIC (Nanotechnology Innovation Centre)

PHYSICAL MET• FMDN• IF Grinding balls• PMDN • TAP Foundry• MTC

Slide 32 of 52

Promotion of minerals based economies

Slide 33 of 52

Small-scale mining and beneficiation

•

Creation of start-ups and employment

•

Training & skills development •

Development, adaption

and transfer of small scale technologies

•

Accredited as training service provider with MQA

•

Ceramic & Jewellery Incubators

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

Slide 34 of 52

Sustainable development

Asbestos dump rehabilitation –

managed by Mintek

under the DMR’s

derelict and ownerless mines programme.

Before rehabilitationSlide 35 of 52

Sustainable development

Asbestos dump rehabilitation –

managed by Mintek

under the DMR’s

derelict and ownerless mines programme.

After rehabilitationSlide 36 of 52

SAVMIN -Atomaer

plant

Slide 37 of 52

Building world class R&D excellence

Slide 38 of 52

Bursary programmes

Slide 39 of 52

Staff capacity

Slide 40 of 52

Non core/ other

Slide 41 of 52

Revenue streams

State (Parliamentary) grantThis 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.

Slide 42 of 52

1968-2011 Annual income

‐

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

19681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011

STATE GRANT TOTAL INCOME OTHER REVENUE

Profitability

Slide 44 of 52

Revenue

Slide 45 of 52

Revenue analysis

Slide 46 of 52

Expenditure

Slide 47 of 52

Capital expenditure

Slide 48 of 52

Status of some of the buildings

Slide 49 of 52

Mintek

buildings

Slide 50 of 52

HURDLES

•

Staff Turnover

•

“

Younging”

of the institution

•

Funding models

•

Aging infrastructure

Slide 51 of 52

www.mintek.co.zaMintek – your partner in unlocking mineral wealth

Slide 52 of 52