27 October 2004

1
27 October 2004

• Presentation to the Portfolio Committee
• By
• Dr Paul Jourdan

2
Introduction

• Mintek is 70 years old in2004
• permanent staff of 510, of which 295 are
  professionals with tertiary education
• annual turnover of R232 m
• R82, 5m provided by the State Science vote
• R137m earned by the sales of products, IP, and
  services
• R12,5m via competitive government RD grants

3
Products

• Process control
• DC Arc Furnaces
• Blobulators
• Jigs
• Minataurs
• Added-value PMs
• Minfurns

4
RD Services Definition

• Type
• Innovative
• Development
• Routine

5
RD Service Definition

• Area
• Mineral Processing
• Hydrometallurgy
• Biotechnology
• Pyrometallurgy
• Physical metallurgy
• Environmental

6
Financial Summary 2003/04

• Rk
• Income 232 000
• Core funding 82 500
• Earmarked funding 12 500
• Own income 137 000
• Expenditure 229 000
• Staff Costs 128 000
• overheads and operating Expenditure 89 500
• Capital expenditure 11 500
• Surplus 4 000

7
Aim To exceed our clients expectations

• Clients
• State
• Corporate
• Operating plants
• Engineering
• SMMEs

8
Feasibility Studies Initiative

• A coastal electrolytic Manganese dioxide (EMD)
  plant based on South Africas abundant manganese
  ores. EMD is used in the manufacture of dry-cell
  batteries.
• A Hot Briquetted Iron (HBI) plant based on South
  Africas iron ore fines. HBI is used in steel
  making.
• A coastal ferro-nickel (FeNi) plant based on
  South Africas cheap electricity and imported
  larerite ores. FeNi is used in stainless steel
  production.
• A plant to recover platinum concentrate from
  chromite tailings dumps (the Platdumps project).

9
Regional Studies- completed or underway

• A downstream scan of the proposed Heavy Minerals
  Sands project in Chibuto and a Nepheline Syenite
  concept study in Mozambique
• a macroeconomic analysis of the manganese sector
  which provided a strategic input to the
  governments policy building initiatives
  regarding specific commodities.
• Involved in formulating the beneficiation targets
  to support the new Beneficiation Bill.
• Considerable progress was also made in the RBTS
  project with regard to identifying the critical
  policy lessons needed to make the transition
  from a resource based to high-tech
  knowledge-intensive economy.

10

• Four divisional papers were published
• One paper was published in international journal
  Minerals and Energy
• a titanium cluster study in East London for ECDC
  in Eastern Cape.
• Undertook a preliminary scoping and assessment of
  the South African mining cluster.

11
Mineral Strategies

• Mining inputs cluster
• Mintek has also been tasked with facilitating the
  development of a mineral processing inputs
  (inputs consumables, plants, capital goods,
  consulting, chemicals, et) cluster.
• 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.

12

• Progress to-date on developing a mining and
  mineral processing capital goods, services and
  consumable inputs sector in South Africa
  includes
• defining the inputs cluster in terms of key
  product categories and the type of goods and
  services associated with them.
• putting together a template for 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.

13
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.
• About 153 rural women from various villages were
  trained in Jewellery making skills using
  precious stones. The majority are now
  economically active.
• A Production and Training Unit has been set up
  and is operational. The unit is tasked with
  creating a range of jewellery products that will
  be inspired by rural indigenous craft designs and
  will utilize a range of materials.

14

• Kgabane participated in shows to promote rural
  manufacturer's in Washington, Germany and London.
• A substantial donation was secured from the
  National Lottery Distribution Trust Fund
• In partnership with Harmony Gold, Mintek, DME and
  DACT, Kgabane launched a South Africa Mineral
  Pavilion at the JIA to showcase products of
  talented jewellers from disadvantaged backgrounds
  and other South Africa mineral products.

15
Mintek Projects Highlights- April 2003- March 2004

• 1. Gold Industry
• Industrial uses for gold (AUTEK)
• pilot-scale production of gold-based catalysts-
  first trial run conducted.
• Catalysts for air purification and fuel cells,
  biomedical applications and nanotechnology.

16

• Gold process technology
• Minataur refinery in Dubai commissioned in August
  2004
• Cyanide control
• LeachStar trials near completion

17
Mintek Projects Highlights- April 2003- March
2004 (cont.)

• 2. Platinum group metals
• Conroast DC arc process
• demonstration smelting campaign started at end of
  March
• Process development
• optimisation studies and testwork for
  pre-feasibility studies for a new Platreef
  project (African Minerals).
• Flotation control
• implemented in Mexico, South America and
  Australia.

18
Mintek Projects Highlights- April 2003- March
2004 (cont.)

• 3. Ferrous Metals
• Smart Materials
• Rockbolts installed at last test site (South
  Deep)
• Also being tested for civil engineering
  applications.
• Collaboration with U. Natal on producing a
  higher-strength composition for the aerospace
  industry.
• Innovation fund project.
• Low-nicked stainless steel
• Product evaluation Innovation Fund Project

19

• Ferronickel
• MoU with Cuba, TISA (DTI), pre-feasibility for
  completion by Q4 2004
• managed pre-feasibility study for Oriel Resources
  (Kazakhstan).
• Enviroplas
• Mogale Allbys co-smelting stainless steel dust
  and chromite.

20
Mintek Projects Highlights- April 2003- March
2004 (cont.)

• 4. Nonferrous
• Metals
• agreement with NICICO (Iran) for on-site
• two major Bio-pad-funded RD
• EMD plant
• TDA funded feasibility study completed
• Hydrometallurgical process development
• Ion exchange agreement signed with Bateman
• Process development for Langer Heinrich
  pre-feasibility (Paladin Resources)

21

• Thermal magnesium
• Run 10 completed, new condenser design successful

22
Mintek Projects Highlights- April 2003- March
2004 (cont.)

• 5. Industrial Minerals
• Titanium
• Final report to Innovation fund
• Job-creation projects in gold, industrial
  minerals, ceramics, glass beadmaking and
  fertilisers all over South Africa
• Poverty alleviation support from DST
• Small scale Mining Training School, to train 600
  small scale miners, are supported by the MQA.

23

• Science, Engineering and Technology Promotion
• Technikon students engineering students
  received intensive practical training- 53
  undergraduate bursaries, 5 scholarships and 27
  post-graduate have been issues
• strategic alliances with NSFAS for undergraduate
  bursary support, ECSA through a commitment and
  understanding in terms of practical training and
  various interactions with professional societies
  and universities.

24

• Innovation fund, THRIP and other industry funds
  are used to leverage the number of
  post-graduates.

25
SCI, ENG TECH Promotions

• Technikon and University students received
  intensive practical training.
• 53 undergraduate bursaries, 5 scholarships and 27
  post-graduate have been issues
• strategic alliances with NSFAS for undergraduate
  bursary support, ECSA through a commitment and
  understanding in terms of practical training and
  various interactions with professional societies
  and universities.

26

• Innovation fund, THRIP and other industry funds
  are used to leverage the number of post-graduates

27
Mintek Projects Highlights- April 2003- March
2004 (cont.)

• 6. MESU
• some key projects undertaken
• A downstream scan of the proposed Heavy Minerals
  Sands project in Chibuto and a Nepheline Syenite
  concept study in Mozambique
• a macroeconomic analysis of the manganese sector
  which provided a strategic input to the
  governments policy building initiatives
  regarding specific commodities.
• Involved in formulating the beneficiation targets
  to support the new Beneficiation Bill.

28

• Considerable progress was also made in the RBTS
  project with regard to identifying the critical
  policy lessons needed to make the transition
  from a resource based to high-tech
  knowledge-intensive economy.
• Undertook a preliminary scoping and assessment of
  the South African mining cluster.
• Kgabane
• About 153 rural women have been trained and most
  are now economically active.
• participated in shows to promote rural
  manufacturer's in Washington, Germany and London.

29

• Took part in the launch of South Africa Mineral
  Pavilion at the JIA to showcase products of
  talented jewellers from disadvantaged backgrounds
  and other South Africa mineral products.

30
Resource-based sustainable development

• The RBSD has been incorporated into the National
  RD Strategy
• the overall objective and aim of the RBSD
  projects 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
  industrialized state.
• A collaboration-building trip was made by nine
  South African representatives to Sweden and
  Finland in October/ November with the overriding
  aim of learning more about the Nordic success of
  resource based growth and development and to
  build a research network between South Africa and
  Finland and Sweden.

31
Mintek Management

• PMG note Management Structure not included

32
Mintek Income

• PMG note Income graph not included

33
Allocation of core funding

• All core funds for 2003/04 (R80,9m) allocated to
  specific activities
• allocation was achieved via an internal
  competitive mechanism similar to the Innovation
  Fund
• progress reports every six months

34
Projected transformation from base year 2000 to
2008

• PMG note Graphs not included

35
Outreach programmes

• PMG note Pictures not included

36
Human Resources Development

• 53 undergraduate students
• (81 of designated group)
• 27 postgraduate students
• (71 of designated group)
• 26technikon training students
• (100 of designated group)
• 5 engineering-in-training students
• (86 of designated group)
• supports the EduMap Programme
• (65 learners on the programme)
• adopted a school (Kwadeda) in Zola, Soweto and
  Diepsloot.

37
Quality, Environment Safety

• Achieved integration of Minteks quality,
  environmental and safety systems.
• Mintek certified on 8 August 2002 to be compliant
  with the IS090012000 international quality
  standard
• Mintek certified on 01 September 2003 to be
  compliant with the IS0140011996 environmental
  standard.
• Mintek certified on 13 August 2004 to be
  compliant with the OHSAS 18001 safety standard
• Disabling Injury Frequency rate (DIFR) of 1,8
  equivalent to 4-star rating. Zero fatalities.