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27 October 2004

27 October 2004. Presentation to the Portfolio Committee By Dr Paul Jourdan. 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;;

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27 October 2004

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  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 R&D grants

  3. Products Process control DC Arc Furnaces Blobulators Jigs Minataurs Added-value PMs Minfurns

  4. R&D Services Definition Type Innovative Development Routine

  5. R&D Service Definition Area Mineral Processing Hydrometallurgy Biotechnology Pyrometallurgy Physical metallurgy Environmental

  6. Financial Summary 2003/04 R’k 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 Africa’s abundant manganese ores. EMD is used in the manufacture of dry-cell batteries. • A Hot Briquetted Iron (HBI) plant based on South Africa’s iron ore fines. HBI is used in steel making. • A coastal ferro-nickel (FeNi) plant based on South Africa’s 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 government’s 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 R&D 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 government’s 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 R&D 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 Mintek’s quality, environmental and safety systems. • Mintek certified on 8 August 2002 to be compliant with the IS09001:2000 international quality standard • Mintek certified on 01 September 2003 to be compliant with the IS014001:1996 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.

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