2010 - PMG · and gold leaching circuits, and sumberged-arc furnaces. • Online cyanide...

2010

A global leader in mineral and metallurgical innovation

“Your partner in unlocking mineral wealth”

Our MandateMintek’s mandate is to serve the national interest through high-calibre research,

development, and technology transfer that promotes mineral technology, and fosters the establishment and expansion of small, medium, and large industries in the field of minerals

and products derived from them.

Our Vision To be a global leader in mineral and metallurgical R&D and technology transfer.

Our MissionTo serve our stakeholders by promoting technology, industrial growth and human

development.

Key ObjectivesIn order to attain its goals,Mintek shall strive to:

• Develop efficient mineral processing technologies and sustainable value added products and services;

• Play a significant role in the development of this second economy;

• Support government regional and continental interventions;

• Develop human and organisational skills; and,

• Uphold good governance practice.

Contents2 Mintek Global loCation

3 MininG Value Chain

4 ChairMan’s oVerView

5 Mintek Board

7 Ceo’s report

9 Management Organogram

10 perforManCe aGainst objeCtiVes

17 researCh, DeVelopMent anD teChnoloGy 18 Gold Industry 23 Platinum-Group Metals Industry 26 Ferrous Metals Industry 29 Non-Ferrous Metals Industry 31 Industrial Minerals Industry

34 operations anD DeVelopMents 34 ConRoast Development and Toll Treatment 35 Capital Equipment 35 Process Control Products 37 CertifiedReferenceMaterials

38 Minerals poliCy anD sustainable DeVelopMent 38 Mineral Economics and Strategy 40 Small-ScaleMiningandBeneficiation

42 huMan Capital DeVelopMent anD ManaGeMent 42 Employment Equity

43 UnionisationofMintek 43 Human Resources Systems 43 Wellness

43 HIV/AIDS 44 Academic Support and Training

49 staff papers anD publiCations 2009/2010

52 Corporate GoVernanCe

55 annual finanCial stateMents anD notes 56 Audit Committee Report 57 Directors’ Report 59 ReportoftheAuditor-General 61 Financial Statements and Notes

ContaCt Details – inside back cover

aCronyMs – inside back cover

Mintek loCation – back cover flap

mintek annual report 2010

Mintek Global Location Industrial Minerals• Physicalbeneficiation-comminution,flotation,gravity,densemedia,electrostaticandmagneticseparation,andopticalsorting.

• SAVMINTMprocessforacidminedrainagepuriification.Acid-baseaccounting.

• Kimberliteindicatormineralinvestigations.Alluvialdiamondprovenancestudies.

Uranium• Ambient,pressure,andheapleaching,solventextraction,fixedbedand

countercurrent(NIMCIX)ionexchange,resin-in-pulp,andADUprecipitation.• MintekisregisteredasauraniumtestworkfacilitywithSouthAfrica’sNational

NuclearRegulator(NNR)andtheDepartmentofMineralResources.

Process Control Strategies• Advancedprocesscontrolandoptimisationstrategiesformilling,flotation,

andgoldleachingcircuits,andsumberged-arcfurnaces.• Onlinecyanidemeasurementandcontrol.• Heapleachoperatorguidancesoftwareandin-heapinstrumentation.

Gold• Evaluationanddesignofrecoverycircuits,carbon/resinadsorption,

elution,electrowinning.Leachoptimisationandheapleach/bio-leachingamenability.

• Cyanidespeciationmonitoring,onlinecyanidemeasurementandcontrol,cyanidedestruction.AssistancewithICMIgaporfullcertificationaudits.

• MinfurnTMtechnologyforgranularactivatedcarbonregeneration.• MinataurTMall-hydrometallurgicalgoldrefiningprocess.• Newindustrialusesforgold–catalysis,biomedicine,andnanotechnology.

PGMs• Designandoptimisationofintegratedcomminutionandflotationcircuits.• ConRoastsmeltingtechnologyforhigh-chromiumlow-sulphurPGMmatertals.• Catalystdevelopmentforautomotive,fuelcell,andindustrialapplications.• NovelPGM-containingalloys,andpowdermetallurgicalprocesses.

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Ferrous Metals• DCarcsmeltingprocessesforchromite,ilmenite,nickellaterites,

magnetite,magnesiummetalproduction,andmetalrecoveryfromslagsanddusts.

• Ironorebeneficiation.• Materialscharacterisation(physical,mechanicalandcorrosion

properties),andfailureinvestigations.

Non-ferrous Metals• Bioleachingofcopper,nickel,andpolymetallicconcentrates.Heap

bioleachingoflow-gradechalcopyrite-bearingmaterials.• Integratedcircuitdesignformetalrecoveryandpurificationby

leaching/heapleaching,precipitation,ionexchange,andSX/EW.

Capital Equipment• MinfurnTMregenerationfurnaceforactivatedcarboninthegold

processing,watertreatment,andfoodindustries.• Goldelectrowinningcell.• DCarcfurnace.• AtomijetTMatomiserforbaseandpreciousmetals.

Economic and Regional Studies• Regionalcommodity-basedmineraleconomicstudies.• Resource-basedtechnologystrategies.• Sustainabledevelopmentstudies.

2 Mintek Global Location


The Mining Value ChainTechnologies and services developed by Mintek

1. Exploration• Geochemical sample analysis;

• Mineral/ore characterisation;

• Certified Reference Materials; and,

• Artisanal and small-scale mining (ASSM).

2. Mining• ASSM technology;

• ASSM training assistance; and,

• Mining inputs economic studies.

3. Concentrationa. Comminution/Flotation• Flowsheet design and optimisation,

and piloting;

• Plant audits;

• Ultrafine milling; and,

• Control and optimisation strategies.

4. Pyrometallurgy• Pelletisation and briquetting;• Pre-heating and pre-reduction;• DC arc process development and

piloting;• Modelling and simulation;• Submerged-arc furnace (SAF)

control strategy;• Fluidised bed and condenser

technologies;• Refractories performance

investigations;• High-temperature solid state and

phase equilibrium investigations; and,• Ore, slag, matte and alloy

characterisation.

5. Hydrometallurgy and Biotechnology

• Atmospheric and pressure leaching;• Bioleaching (refractory gold and base

metals);• Solvent extraction and ion exchange;• Electrowinning;• Process simulation;• Reagent development and evaluation;• Gold recovery by CIP/RIP;• Activated carbon regeneration;• Uranium processing expertise, and U3O8

recovery;• Cyanide measurement, monitoring

and auditing; and,• Leach circuit control.

6. Refining• Gold refining and value-added

products/chemicals;• Pyrometallurgical refining of: zinc

(PWG to SHG),and off-grade ferro-alloy fines; and,

• Titanium chlorination technology.

7. Value addition• New industrial applications for

gold: Catalysis; Biomedical; and Nanotechnology;

• “Smart” materials and sensors;• PGM-based superalloys;• Low-nickel stainless alloys;• Jewellery fabrication;

• Gold and platinum jewellery alloys; and,

• Identification of downstream, metals-based, economic development opportunities.

8. General• Ore characterisation, analytical

and process mineralogy;• Certified Reference Materials;• Materials characterisation, testing

and development;• Engineering design,

manufacturing, installation and commissioning;

• Project management services; and,• Regional minerals-based studies.

1 2 3 4

5 6 7 8

b. Physical separation• Bulk sample preparation;

• Gravity, magnetic, electrostatic and dense-media separation; and,

• Pneumatic jigging, and Mineral Density Separation.

3The Mining Value Chain


Chairman’s OverviewRevenues of the woRld’s top mining companies declined by about 15 peR cent, while spending on mineral exploration – which includes a large component of research - fell by more than 40 per cent due to the financial crisis that led to a recession resulting in Mintek being unable to meet its budget. although last year we predicted that we would experience a recession this year, it was, however, more severe than we thought. there is no doubt that the effects of the general volatility and uncertainty in the global economy will continue to be felt for some time. however, the long-term fundamentals for the mining and minerals industry remain intact, and i am confident that we can look forward to a more favourable economic climate in the coming year.

since taking over the reins as the chairperson of the mintek board, which began its tenure in march 2007, we witnessed a number of major achievements. The financial situation was turned around, and from a net loss in 2007/08 we achieved a healthy profit in the ensuing two years. The R39-million profit in 2008/09 was a record for mintek. our income from the science vote (parliamentary grant) has stabilised at around 30 per cent of the total, while funding from other state agencies (so-called “earmarked” funding) has doubled from previous levels, being more than R50-

million in the past financial year. On the governance aspects, mintek continues to improve on our control environment, hence the unqualified audit report that we received last year.

a “decasualisation” process was completed whereby casual (contract) workers were taken on as full-time employees, thus allowing them access to additional benefits. The National union of mineworkers formally reached the representation entitling them to organisational rights at mintek, and a new Recognition agreement was signed in august 2009.

measures were successfully implemented to ensure parity and equity in the salary structure, and the unacceptably high level of staff turnover was reduced to around one-third of its former level.

mintek has carried out extensive process development work to support feasibility studies for new platinum-group-metal (pgm) projects and expansions, including the four newest mines to enter production. although a number of projects were delayed as a result of a slump in the financial markets, there are indications that several of these will shortly

4 Chairman’s Overview


Mintek Board of directors 2009/2010

Mr Harold Motaung Chairman of the Board

Mr abiel Mngomezulu CEO, Mintek

Ms Gugu Mthethwa Mr Mosa MabuzaMr ralph Havenstein

Mr Mohau Mphomela

dr Bethuel sehlapelo

Mr Mohlomi ntilane

Ms Lindiwe Mhlabeni

dr Jan Bredell

enter the development phase. the pgms are south africa’s most important contributor to mineral export earnings. notable progress was made, together with our partners braemore Resources and Jubilee platinum, towards the goal of establishing an independent smelter using mintek’s unique conRoast dc technology to treat high-chrome platinum concentrates from emerging producers.

mintek and the university of cape town jointly established a catalysis competence centre, as part of the dst’s “hydrogen economy” strategy, which will investigate novel pgm-

based catalysts for hydrogen and direct methanol fuel cells. under the dst’s precious metals development network, work is also under way on a new class of gold and gold-palladium catalysts.

mintek is developing the capacity to become a leader in the fast-developing field of nanotechnology, and one of south africa’s two national nanotechnology innovation centres has been established on the campus. this is a new area of research for mintek, and it is gratifying to see such remarkable progress in a short space of time. the same

can be said of project auteK, our joint venture

with major south african gold producers

to discover new and innovative uses for

gold, with the emphasis on applications to

address issues particularly facing south africa,

including health (diagnostics and treatment)

and water quality. both these ventures are

noteworthy for their interdisciplinary nature

and the wide-ranging collaborative linkages

with other organisations that they have

engendered.

mintek has expanded its services to the gold industry, through the establishment of a dedicated iso 17025-compliant cyanide services laboratory to assist gold producers in complying with the international cyanide management code. a renewed emphasis has also been placed on investigating the fundamental aspects of gold processing, from the point of view of both gold recovery and sustainability.

our unique heap bioleaching technology for low-grade copper sulphide ores is nearing full-scale implementation in the middle east,

and large-scale testwork has also been conducted for clients with projects in the major copper-producing region of south america.

the range of projects undertaken for clients in sub-saharan africa has increased, and it appears that africa is becoming increasingly attractive as a destination for mineral project development. there has been a notable revival of the copper industry in central africa, new iron-ore prospects are emerging in west africa, and exciting mineral discoveries are being made in previously

under-explored countries such as malawi, cameroon, and eritrea.

mintek’s role on the international front has also continued to expand, through more projects in the usa, latin america, australia, the middle east and asia. in this regard, our unique process control strategies continue to lead the field, with an installation base of more than 100 minstral furnace controllers and milling, flotation, and leaching control systems on some of the world’s largest gold and base metal mines.

5Chairman’s Overview


a particular high point was mintek’s 75th anniversary celebrations last year. it was a pleasure to meet the large number of former mintek staff, many of whom have made their mark internationally as researchers, consultants, and industry leaders, who travelled from as far afield as australia, canada, and the uK to join in the celebrations.

the establishment of the department of mineral Resources, as a separate department wholly focused on the minerals industry, was a welcome step. mintek has forged an even

stronger relationship with the department, under the leadership of the honourable minister susan shabangu whom we thank for her inspiring leadership and closer co-operation. to this end, mintek more recently, embarked on a programme of work to rehabilitate derelict asbestos mining sites in south africa as the project manager.

in human resources development, i am delighted to see a significant decrease in the staff turnover, to 7 per cent in the past year compared with 25 per cent two years previously, and congratulate mintek on the

measures it has taken to stem the drain of

scientific and engineering talent. Mintek

continues to support the implementation

of various human capital development

initiatives, including the technology Research

professional development programme and

the technology and human Resources for

industry programme. another role in which

mintek has truly excelled in is raising public

awareness, and launching and maintaining

outreach programmes to promote science

and engineering.

as this is my last tenure as the mintek board

chairperson, i wish to thank the current

board for their support and diligence and

further extend a warm welcome to the new

board under the leadership of mr. mohau

mphomela. my gratitude also goes to the

ceo and his management team for their

dedication as well as all mintek employees for

their innovation and devotion to duty. i have

every confidence that Mintek will continue to

adapt to changing market conditions, and to

maintain and grow its skills base, so as to be

well positioned to benefit from the renewed

demand for mineral and metallurgical

research and technology.

Mr Harold Motaung

chairman of the board.

6 Chairman’s Overview

mintek annual report 2010CEO’s Report

CEO’s ReportThis Time lasT year we were sTill enjoying The Tail end of The boom cycle. however, we indicated that we were expecting a challenging year ahead. we were able to predict the stormy season, but were unfortunately unable to accurately foretell its severity. of importance for us now is to be able to resiliently return to where we were before the recession, which only lasted for two successive quarters, though it had a severe impact. fortunately, we were able to contain our costs without retrenching any of our employees. however, our revenues as a group were severely depressed, with profits plummeting from a Mintek record high of R39.6-million in the previous financial year to a mere R1.7-million.

we are now hopeful of a recovery, with metal prices having now risen substantially since the bottom of the cycle in early 2009 and mining companies world-wide once again raising capital and planning increases in expenditure. accordingly, as one of the world’s leading specialist technology organisations in the minerals industry, we are looking forward to modest growth in 2010.

Technical highlightsone of the major highlights was the successful conclusion, at the end of March 2010, of the lengthy campaign on our ConRoast DC arc smelting technology for high-chrome PGM-bearing materials. The technology has been conclusively demonstrated, and mintek is looking forward to working with our partner, jubilee Platinum, in moving forward with commercial implementation.

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Income trends, 1998 - 2010

mintek annual report 2010 CEO’s Report

Mr Abiel MngomezuluChief Executive Officer

ExEcutivE committEE 2009/10

Dr Molefi Motuku gm: research and

development

Dr Roger Paul gm: business

development

Mr Peter Cravengm: Technology

Mr Sakhi Simelanegm: finance

Ms Shokie Bopape gm: corporate services

The development, by mintek and industry more than 25 years ago, of a process for beneficiating the UG2 Reef effectively doubled South Africa’s PGM resources. The implementation of conroast will enable their full value to be realised by relaxing the constraint on the maximum level of chromite that can be tolerated during smelting.

Under Project AuTEK, great progress has been made in understanding the mechanism by which gold-based synthetic compounds inhibit HIV activity, and nanotechnology-based tests for the early detection of various diseases, including Tb and malaria, have reached proof-of-concept stage. A R13-million advanced cleanroom facility, sponsored by the department of science and Technology, is scheduled for completion in December 2010.

A contract has been signed for the full-scale implementation of high-temperature heap bioleaching at Sarcheshmeh in Iran, and the engineering specifications for the project are currently being drafted in preparation for the client to call for tenders.

with the exception of the cynoprobe online cyanide analyser, mintek’s advanced strategies for process control experienced a quiet period as a result of the economic downturn. notable milestones included a very large combined milling and flotation control installation at Hindustan Zinc in India, and the first furnace control and optimisation system in Kazakhstan, a major ferro-alloy producing region.

Sustainable developmentMintek continued to grow its support for mineral-based regional development initiatives and the “second economy”. These activities are undertaken in conjunction with a broad range of stakeholders, including government bodies, international funding agencies, private sector companies, and community-based organisations. new capacity is being developed around the economics of energy and water, to complement the existing commodity-based expertise. a study of the issues surrounding mining and geosciences R&D in Africa was completed, culminating in a successful two-day conference. A Mintek-managed project commenced on the rehabilitation of historic asbestos-mining sites, under the derelict and ownerless mines programme of the department of mineral resources.

Almost 200 small-scale miners around South Africa received training in technical and business skills under the programme sponsored by the Mining Qualifications Authority, and nine new rural small-scale enterprises were set up. an agreement was entered into with moi University in Kenya to conduct collaborative research into the use of agrominerals to enhance soil fertility.

Peoplein my previous report, i mentioned that our total staff complement had risen to 785 as a result of moving temporary workers to the status of permanent employees. at the end of the period under review, this number had fallen to 769, purely as a result of natural attrition, resulting in a staff turnover rate below prediction at 7.3 per cent.

8

mintek annual report 2010CEO’s Report

Mintek Organogram as at 31 March 2010

cEoAbiel Mngomezulu

TEChnOlOgyPeter Craven

RESEARCh & DEVElOPMEnTDr Molefi Motuku

FInAnCEsakhi simelane

CORPORATE SERVICESshokie bopape

AnAlyTICAl SERVICESmonde mtakati

PyROMETAlluRgyTom curr

InFORMATIOn & COMMunICATIOnS

haveline michau

FInAnCEHester Pretorius

SMAll-SCAlE MInIng & BeneficiatiOnnirdesh singh

MInERAlS PROCESSIng Alan McKenzie

BiOtechnOlOgy Petrus van Staden huMAn RESOuRCES

& TRAInIng Makgomo Umlaw

MInERAl ECOnOMICS & STRATEgy

neale baartjes

BuSineSS DevelOpMentjohn batty

MEASuREMEnT & COnTROlPaul Brereton-Stiles

ADVAnCED MATERIAlSdr elma van der lingen

hyDROMETAlluRgydr dave hulbert

EngInEERIng SuPPORTNick Maritz

MInERAlOgyVacanT

ESTATE MAnAgEMEnT SERVICES Muzi Ntombela

BuSineSS DevelOpMentDr Roger Paul

a streamlined mintek structure was adopted, which involved a re-arrangement of some of the business units, and a new business development function created to focus on the marketing of mintek’s technologies and services.

although our undergraduate bursary programme is exceeding the target number of students, the number of postgraduate (M.Sc. and Ph.D.) bursars is still unsatisfactory, and initiatives have been set in motion to address the decline.

Quality, environment, safety and health mintek’s systems underwent a major reassessment audit for ISO 9001: 2008 (Quality Management), ISO 14001:2004 (Environmental Management) and OHSAS 18001: 2007 (Safety and Health Management), and Mintek was re-certified to all three standards. The Lost Time Injury Frequency Rate (LTIFR) remained below the target of 1 for much of the year.

The Client Dissatisfaction Frequency Rate (CDFR) has declined steadily since mid-2008, and the target of 10 or less was achieved in October 2009 and has been maintained since then. The Environmental Incident Frequency Rate (EIFR) was zero throughout the year.

Financial summaryDuring the 2009/10 financial year Mintek’s total income was R375-million, a 11 per cent decline on the previous year’s total. although the state grant under the science Vote increased to R124-million compared with R106-million in Financial 2009, and earmarked funding rose to R54-million from R41-million, income from commercial work fell to R170-million from R243-million the previous year, a drop of 30 per cent. Fixed costs remained almost the same as the previous year, resulting in a net profit margin of just 0.5 per cent. during the year ahead, mintek will strive to further contain costs, while maximising its commercial revenue.

i would be failing in my duty if i do not thank the honorable minister susan shabangu for availing herself to mintek whenever we needed her. her guidance and leadership are welcome. i would also like to thank mr. harold motaung, former chairperson of the board and his team, for the leadership they have shown during their three-year tenure. we welcome the new chairperson, mr mohau mphomela, as he takes the baton from the old team. our gratitude goes to our customers and suppliers for their continued support during the tough financial climate we experienced.

finally, i would like to thank all at mintek for their perseverance, sacrifice and dedication. The recession in the commodities sector appears to be largely behind us, and although the road to full recovery will not be an easy one, I am confident that if we redouble our efforts we will be able to maintain mintek’s position as a global

leader in its field. The Celebration of Science and Technology conference, which was one of the highlight events of our 75th anniversary last year, underscored the immense contribution that mintek has made to the metallurgical and minerals industries over the years, and i believe that we are even better equipped than ever to face the challenges of the future.

Abiel Mngomezuluceo, mintekAbiel Mngomezulu

9

mintek annual report 2010 Performance against Objectives

Performance against Objectives1. StakehOlder PerSPective Key Performance Area/Objective: Develop efficient mineral processing technologies and sustainable value added products and services

Programmes Measures/Outcome Performance Indicator target Actual comments

12

a) Overcoming technical obstacles to exploiting mineral resources

develop analytical & Mineralogical Methods: Adapt existing methods, or develop new methods, for the accurate and precise analysis of complex geochemical and metallurgical samples.

# of Methods 12 17 More available financial resources and human capacity due to downturn in commercial activities. More work relevant to Science Vote was done.

# of Papers 5 1

Develop and evaluate new processing technologies: New technologies are required for the processing of ore bodies or resources that are not currently being exploited due to their low grade, impurity levels, complexity, or lack of expertise: UraniumTitaniumCopperGold and PGMNickelCobaltCoalIronChromite

# of papers 6 14

# of Reports 22 47

# of Models 5 0 Demand was more for commercial service work than for plants and models.

# of Plants 7 0

# of Plant Units 2 2

Analytical & Mineralogical Services: Provide fast, accurate analyses for a wide variety of geochemical and metallurgical samples.

# of Samples 110,000 61,406 Market demand extremely low due to industry recession.

# of Group 2 equivalent mandays

1,080 1381 man days

More mineralogical service work was sourced from internal divisions.

b) Enhance the competitiveness of metallurgical processes

Development of Advanced Process Control Technologies: Develop, demonstrate and implement advanced process control and performance monitoring for flotation and milling.

# of Prototypes 4 7

# of Reports 10 26 Nature of work needed more reports to clients.

# of Commercial Products* 0 20

Feasibility Studies: Conduct laboratory and pilot scale test work to obtain the metallurgical parameters necessary for the preparation of pre- or full-feasibility studies for the ore samples supplied by clients to Mintek. − Industrial minerals (chromite, iron /

manganese ore, others)− Diamonds− Uranium− Base metals− Gold− PGMs

# of Feasibility Study Reports 62 95

# of Papers 3 4

# of Audits 3 1 Shift in market demand.

Reduce Processing costs: Develop innovative ways to lower the costs of processing a variety of feed materials to final product.

# of papers 1 1

# of Reports 9 3

* Work not planned.

10

Performance against Objectives mintek annual report 2010

Key Performance Area/Objective: Develop efficient mineral processing technologies and sustainable value added products and services (cont..)

Programmes Measures/OutcomePerformance

Indicatortarget Actual comments

c) Develop new applications or markets for minerals and metals

Certified Reference Materials: Produce new certified reference materials to allow local and international laboratories to check their in-house geochemical and metallurgical analyses.

# of New Reference Standards

12 12

New industrial uses for Precious, Ferrous and Base Metals: Develop commercial applications for the precious metals in the areas of:

- Biomedicine (Cancer, HIV, malaria)

- Catalysis (chemical processing, fuel cells, environmental)

- Nanoscience & nanotechnology. Develop commercial applications for base and ferrous metals in the mining sector

# of Reports 12 79 Done to meet DST interim reporting requirements.

# of Papers 17 35 Increase in contributions from collaborators.

# of Patents 1 2 Maintained existing patents.

Develop and construct Plant Equipment: Incorporate Mintek’s technology and know-how into the development and sale of commercial plant equipment used in the minerals industry.

# of Plant Units 2 0 Due to economic climate no new plants were constructed.

d) Sustainable development

Water in Minerals Processing: Development of water efficient flowsheet to optimise water consumption and enable processing of ore bodies in water stricken areas by incorporation of novel technologies into flowsheet design, and addressing of socio-economic implications of water in mining.

# of Reports 3 4

# of Papers 1 1

# of Stakeholder Workshops

1 0 A workshop with the DST was undertaken in this regard.

energy in Mineral Processing: Development of an energy efficient flowsheet and control technologies that minimises energy consumption, opex, capex, and carbon emissions by incorporation of novel technologies into flowsheet design.

# of Reports 10 9

# of Prototypes 3 1 Target not met because of resource constraints. The budget was reduced in the mid-term review.

Emissions and Waste Management in Mineral Processing: Maintain accreditation as a Lead Auditor for measurement of cyanide emissions from gold plants, establish basic levels of arsenic measurement, and implement advanced control technologies to reduce emissions.

# of Reports 9 8 Target not met due to delays encountered finding demonstration sites for prototypes in order to produce associated demonstration reports. However an extra prototype was developed.

# of Prototypes 2 3

Plant and Technology: Construct a furnace for the recycling of waste dry-cell batteries, and undertake the initial concept studies for the reactivation of carbon used in potable water treatment, and for the production of solar-grade silicon.Waste Dry - DonePotable Water by 2008Food Technology by 2009

# of Furnaces 1 1 Batrec’s furnace was installed.

# of Reports 1 2

e) Support the development of Junior Resource Companies (JRC)

Technical Assistance: Conduct amenability and/or feasibility studies for possible JRC projects, and assist in developing a flowsheet for the processing of their ore bodies.

# of Reports 7 13 Strong demand from the juniors for very small opportunities.

11

mintek annual report 2010 Performance against Objectives

Key Performance Area/Objective: Play a significant role in the development of the second economyProgrammes Measures/Outcome Performance Indicator target Actual comments

a) SMMe business

incubation

Development and support of SMMEs: New business started, existing business supported, co-operatives supported(Broad-Based Black Economic Empowerment Companies) supported.

# of New start-up SMME's

12 9 Yearly target was not met due to infrastructure problems experienced at pottery sites which delayed implementation. Jewellery/beads section did not receive further contracts for training.

No co-operatives registered in 2009/10 due to lack of finance, which impacted on jobs created.

# of supported Existing SMME's

12 12

# of developed and supported Co-operatives

1 0

# of Jobs created through start-ups

160 107

SMME Research: Develop strategies and partnerships.

# of Agreements 7 1 Yearly target not achieved due to division focussing more on SMME development/training agreements rather than research.

# of Pilots 1 0 Contract signed with DST for piloting Biomin in Marble Hall. Implementation will start in 2010/11 financial year.

Second Economy Strategy: Develop and implement a strategy for the support of the second economy.

Business model and plan Reviewed business model

Completed Ceramic Strategy for SA completed and model to be finalised in 2010/11.

Precious and semi-precious stones Mineralogy.

# of Reports 1 4

Construction Minerals: Establish small-scale mining technologies suited to SMME operations in construction and other minerals.

# of Reports 2 3

12

Key Performance Area/Objective: Develop efficient mineral processing technologies and sustainable value added products and servicesProgrammes Measures/Outcome Performance Indicator target Actual comments

b) development of technologies relevant to SMMes

Minerals for Agricultural Development: Develop new and improve existing technologies and transfer technologies to communities.

# of Reports 2 2

Indigenous Knowledge Systems (IKS), Mining and Beneficiation: Develop strategies, establish partnerships and incorporate indigenous knowledge systems into ceramic and jewellery products.

# of Agreements 2 0

# of Reports 1 0

Pilots per # of Sites 3 0 Programme was placed on hold by the DST.

# of learners 10 0

Performance against Objectives mintek annual report 2010

Key Performance Area/Objective: Support government regional and continentalProgrammes Measures/Outcome Performance Indicator target Actual comments

a) Mineral Strategies

Mineral Scans: Industrial Minerals for LED support, Spatial Development Programme.

# of Reports 6 6 Target achieved for the year.

# of Stakeholder Workshops 1 5 Target achieved for the year.

Alluvial Diamond Finger Printing competency: Develop methods and establish infrastructure to identify the source of diamonds through trace element analysis, diamond morphological characterisation and setting up a diamond database.

# of Reports 5 7

Method development LA-ICP-MS complete but to date no parcels completed on the instrument. Deonvolution software formulated by MAC and a report in progress. Trace element method hampered by problematic Laser and teething problems with a new instrument. These have largely been sorted out.

Evidence of accurate and complete database upgrade.

4 10 diamond parcels

FTIR and Morphology investigations completed on 10 diamond parcels and 0 parcels yet on LA-ICP-MS.

Sidestream and downstream development of mineral value chain.

# of Reports on value chain relocation and development.

2 4

b) Policy Support

Economic Research and Analysis as per DME Request.


Socio-Economic Management: Assist companies in understanding and monitoring the impact of mining on women.


13

mintek annual report 2010 Performance against Objectives14

Key Performance Area/Objective: Uphold good governance practicesProgrammes Measures/Outcome Performance Indicator target Actual comments

a) compliance iFrS compliance: Timely and accurate processing of all valid transactions, addressing all audit matters raised in external and internal audits.

Status of Audit Report Unqualified audit

Unqualified audit

b) Financial Management

Total revenue R value 490,827 374,378 Less commercial and Science-vote work was received compared to the previous financial year due to the economic climate.

Total Science-Vote revenue R value 136,286 136,637

Operational revenue R value 109,095 123,561

Capital allocation R value 14,950 13,076 Capital allocation was made to assets purchased during the year.

MTEF R value 12,241 12,241 MTEF funds were expensed as per approved project plan.

Net result R value 22,100 1,433

Capital investment (from own reserves) R value 9,990 5,287 Due to less economic activity there was no need to invest more in capex.

Gross profit margin (commercial projects) % margin 15 25

Net Profit margins % margin 4 0.41 The profit margin deteriorated due to less work being received from clients whilst fixed costs remained almost the same.

c) key ratios

Net profit/fixed assets, how well do we utilise assets to generate profit

% 6 0,75

Current ratio (current assets/current liabilities). Indicates liquidity of Mintek

Ratio >2.0 1.9

Liquidity ratio (Cash/current liabilities) Ratio >1.0 1.5

Debtors days outstanding No of days

Performance against Objectives mintek annual report 2010 15

Key Performance Area/Objective: Develop human and organisational skillsProgrammes Measures/Outcome Performance Indicator target Actual comments

a) Human capital management and development

Create and increase Mintek skills pool

• Bursar absorption rate into Mintek

– Under-graduates # of bursars 14 11 Fewer students than predicted passed.

– M.Sc. graduates 8 10 More students decided to work first before registering for Ph.D.s

– Ph.D. graduates 3 0 Bursars extended the term of study.

• Undergraduate bursary programme 80 52 Numbers of suspended bursars were not catered for in the target.

• Post-graduate bursary programme (M.Sc. & Ph.D.)

40 43 Initiatives have been set in motion to address the decline in the number of postgraduate bursars, such as the Hydrometallurgy en block programme piloted

• DST Research Professional Programme

– M.Sc. graduates 15 5 These low numbers are compensated by the high Ph.D. intake

– Ph.D. graduates 2 4

Experiential training/learning and development

# of In-service Trainees 40 45

Competent workforce Skills Audit Report Conduct Audits

1 HR Skills Audit completed.

Management and executive development programme

# of employees 20 23 23 graduated, 1 failed, 2 did not complete and 2 resigned from Mintek.

SMME Training and Development: People trained in bead making, brick making, ceramics, introduction to small-scale mining and partnerships developed on skills programme.

• # of people trained

• Agreement signed

550

1

290

3

Yearly target not met due to infrastructure problems experienced at pottery sites so delay in implementation. Glass bead section did not receive further contracts for training. Only a single MQA contract received.

Jewellery Training and Development interventions: Establish new partnerships, train new beneficiaries in Eastern Cape, Limpopo, Free State, Gauteng and Mpumalanga at NQF level 2, train learners in the Northern Cape in gemstone cutting and polishing.

• # of people trained

• Agreement signed

80

6

51

1Low numbers obtained due to the economic climate.

b) Organisational transformation and change management

Streamlined and efficient organisational business processes.• Policies review

# of policies and processes reviewed as a measure

4 6 The review of the intended policies had an impact on other policies, hence the need to review more policies than predicted.

Increased productivity within Mintek• Performance management system

• Remuneration Strategy

# of reportsStrategy

2

Implement

3

1

• Sound labour relations

Employee bargaining system in place

1 Mintek wide

Recognition agreement

1 Recognition Agreement 16/25/2 finalised and implemented to guide bargaining processes.

Employee Wellness Programmes in place

Employee Wellness

Programmes

6 Wellness programme conducted sufficiently.

2.3 learNiNG aNd GrOWth PerSPective

mintek annual report 2010 Performance against Objectives16

Key Performance Area/Objective: Develop human and organisational skills (cont...)Programmes Measures/Outcome Performance Indicator target Actual comments

c) Maintenance of world class R&D competence

Information and Knowledge Management

• Research Information Management System (RIMS) project implementation System in Place

Pilot system for selected

modules1

E-forms for the capturing of published information has been created based on Mintek’s current publications database on STAR. HR data transferred and tested on the production server.

• Intellectual Property Management Framework Framework

Develop 1 Framework developed, awaiting implementation of the IP Act.

• Record Management plan Plan Develop and pilot0 An information audit is currently being con-

ducted and this will determine future Registry procedures, policies and the use of an EDRM system.

Key Performance Area/Objective: Uphold good governance practicesProgrammes Measures/Outcome Performance Indicator target Actual comments

a) Uphold good corporate Governance practices

• Review of internal controls and compliance thereto

Report

- Strategic Business Unit 5 7

- Human Resource 2 3

• Review fraud prevention strategies and policies

2 1

b) Compliance with regulations and legislations

• Compile a compliance checklist Compliance 1 1 PFMA checklist developed in accordance with AG SA recommendations and to be implemented next financial year.

c) internal business Process

Corporate governance compliant institution

Risk and disaster management framework

Update Updated King III recommendations included, compiled and assessed quarterly.

Compliance plan Develop 1 As per compliance above.

Monitoring framework document

Pilot 1 Piloted

Security plan Develop Developed Developed

d) Quality, environment

and Safety

Maintain QES standards: Ensure that Mintek maintains its ISO 9001, 14001, 170025 OHSAS 18001 quality, environment, and safety accreditations, and meets or exceeds its targets for fatalities, Lost Time Injury Frequency Rate (LTIFR), and Client Dissatisfaction Frequency Rate (CDFR).

Accreditation Status Maintained Maintained Maintained

# of fatalities 0 0 Target achieved

Achieved Target for IFR

LTIFR< 0.8 0.7 Target achieved

Achieved Targets for CDFR

CDFR < 10 9.3 Target Achieved

e) energy Efficiency

Continual improvement in Energy Efficiency: Achieve energy saving initiative targets

# of kW saved in energy/power

300 kW 300 kW Target achieved and verified by Eskom.

2.4 INTERNAL BUSINESS PERSPECTIVE


Research, Development and TechnologyMintek provides world-class r&d expertise, testwork, and process optiMisation for the

precious and base metals, ferro-alloy, industrial mineral and uranium sectors on an international basis.

The activities range from initial bench-top investigations to full process flowsheet development and the

design, construction, commissioning, and optimisation of industrial plants.

Mintek is strongly committed to delivering high-quality results within strict constraints of budget and time-frame. to this end, our engineers, scientists and technicians work in close liaison with clients and their engineering contractors, who are encouraged to actively participate in project planning and testwork. This interaction enables clients to discuss issues as development work moves forward, and increases Mintek’s own capabilities by drawing attention to areas that require focused and applied R&D. The new knowledge is then fed back into client-oriented services.

17

1. Production of nanomaterials by electrospinning.

2. Flotation testwork on a PGM ore.

3. Tapping Mintek’s ConRoast DC arc furnace.

4. Bioleaching columns.

5. Resin-in-pulp adsorption using MetRIXTM technology.

Mintek also undertakes medium- and long-term strategic applied R&D, which is aimed at building the organisation’s science and technological base and developing new technologies and products that will convey benefits industry-wide. This activity is funded mainly by the state science vote (parliamentary Grant) to Mintek as a science council, and also through supplementary sources such as bilateral agreements and other funding and donor agencies. Most of the projects in this category are undertaken as joint ventures or in collaboration with other research institutions, including local and overseas universities, professional bodies, and industry partners.

1 2 3 4 5

Research, Development and Technology


Gold IndustryAuTEK – developing new industrial applications for gold

project autek, the collaborative r&d initiative between Mintek and south africa’s three

Major Gold producers, is now in its tenth year. The project has three main focus areas, namely,

catalysis, nanotechnology, and biomedical applications. in addition to the sponsorship provided by its

industrial partners, Project AuTEK has been awarded THRIP funding for a third consecutive year, which

has enabled the acquisition of cutting-edge equipment to further enhance in-house capabilities.

Biomedical programme

the hiv programme forms the primary focus of the autek biomed programme, jointly funded by harmony Gold Mining company limited and Mintek. the programme conducts in-depth research into the design and discovery of novel gold-based compounds that inhibit hiv replication. research at Mintek, supported through collaborations with various university groups, focuses on developing new assays, elucidating the mechanism of action of gold-based compounds, rational design of novel inhibitors for specific HIV targets, and screening compounds for potential activity.

assay development is undertaken so that novel compounds can be biologically evaluated for anti-hiv activity. autek biomed has

Gold Industry

1 2 3 4

1. Resin-in-pulp pilot plant.

2. Gold and silver granules produced by the MinataurTM hydrometallurgical refining process.

3. Gold South African Reference Material.

4. Resin-in-pulp testwork for gold recovery.

18


optimised and validated an assay to identify inhibitors of hiv-1 integrase. hiv-1 integrase, an enzyme fundamental for hiv-1 replication, is studied extensively internationally, but has featured in south african research activities only recently. as the only local research group to have expressed and isolated hiv-1 integrase, autek biomed is in a prime position to supply reagents and products to facilitate the research. Mintek plans to make hiv-1 integrase and an integrase assay kit available at an affordable cost to local researchers, and is investigating supplying the same to international users. Two further assays have been developed and are currently being used to obtain information that is critical in the drug discovery and development process.

Elucidation of the mechanism by which gold-based synthetic compounds inhibit HIV-1 replication will allow for the rational design of gold-based compounds and ensure focused, target-based research. Great progress has been made in this regard and it is expected that the full mechanism of action will be derived by mid-2010.

screening has been conducted on a continuous basis, and a further three gold-based compounds were identified as showing anti-HIV activity.

similar to the hiv programme, the primary objective of the cancer programme is to identify promising inhibitors of cancer for further development. During the period under review, university-based research groups continued investigations into the

synthesis of novel compounds and subsequent evaluation, and 26 compounds were submitted to international partners for preliminary screening. Two compounds previously submitted to the National Cancer Institute (NCI) progressed to in vivo hollow fibre assays, which reflects an advanced stage of preclinical development and the results from one of these compounds were sufficiently encouraging to warrant further development.

Most of the research activities under the malaria programme take place at the University of Cape Town (UCT), with Mintek acting as the link to development of promising results. Malaria screening was conducted at three institutes: the Department of Medicine, division of pharmacology at uct, the london school of hygiene and tropical Medicine (lshtM), and the department of Medicine, san francisco General hospital, and the university of california at

Gold Industry

1. Gold nanoparticles of different morphologies produced by using proteins as a biological template.

2. Optical sorting of a gold ore.

3. The new Matrix Cynoprobe for on-line measurement of cyanide in environmental aquatic samples.

4. The advanced gold leach facility.

1 2 3 4

19


San Francisco (UCSF). A total of 93 submissions were made, and the interpreted results are expected mid-2010.

representatives from Mintek participated in the cost action D39 Workshop held in Debrecen, Hungary, in September 2009. COST (the European Co-Operation in the field of Scientific and Technical Research) is an intergovernmental framework that supports the networking of research institutions across Europe, and more recently non-EU countries. Action D39 is a network of researchers focusing on the use of metals in medicine.

In 2010 two new M.Sc. bursars and two Ph.D. bursars joined the autek biomed programme, and one existing bursar progressed to a ph.d. the registered bursars currently include one post-doctoral, nine ph.d. and four M.sc. candidates. Graduates to date include seven Ph.D. and 13 MSc, with two Ph.D. and two M.Sc. graduations pending.

Catalysis programme

Project AuTEK Catalysis, which is a joint venture between Mintek and angloGold ashanti, continues to advance the commercialisation of gold-based catalysts. the programme is now entering its tenth year of funding and employs a total of eleven researchers (three engineers, six chemists and two technicians). AuTEK also hosted two Mining Qualification Authority sponsored candidates, and itself sponsored four students doing postgraduate studies in catalysis who are based at South African higher education institutions.

The programme is divided into two legs - namely the research component (aimed at discovering new catalyst materials and identifying chemical reactions of potential industrial use, and solving specific problems such as catalyst deactivation), and the development component (focused on the scaled-up and production of gold catalysts, developing applications, marketing the catalysts to potential end-users, and developing a “screening network” of academic and industrial researchers that test the catalysts in many different applications). in terms of products AuTEK offers three “standard” catalysts: 1wt% gold mounted on titiania, zinc and alumina supports, which are marketed under the name aurolitetM.

In the 2009 Annual Report it was mentioned that AuTEK had completed the upgrade of its pilot plant and as such had increased its production capacity. this year the focus has been on quality and assurance, and the installation and commissioning of a programmable logic control system as well as the development of specialised analytical techniques that have allowed improvements in reproducibility and the precious metal mass balance. In the period under review, approximately 70 kilograms of aurolite was sold to end-users for application screening.

Marketing efforts in conjunction with the World Gold Council, and the distributor streM chemicals (usa), continue to promote the use and screening of autek’s aurolite range of gold catalysts by industrialists and academic researchers. More than 80 AUROlite test samples were distributed by STREM in the financial year. As

a result, aurolite catalysts were featured in at least six peer-reviewed publications.

Gold supported nanoparticles are active and selective catalysts for the oxidation of various hydrocarbons using molecular oxygen. this is in contrast to current enzymatic methods or methods that involve stoichiometric oxygen donors, which result in environmentally harmful by-products or poor activity/selectivity. AuTEK is continuing work on the oxidation of glycerol to glyceric acid (a potential polymer feedstock), tartronic, oxalic and glycolic acids. Glycerol is a byproduct from biodiesel, and due to increasing bio-fuel production it is estimated that as much as 500 000 tons of this “feedstock” may be available globally per annum. Studies have indicated that a gold-catalysed route would have fewer processing steps, and lower capital and operating costs, compared with the conventional enzyme-catalysed process. Mintek has modelled the reaction and experimentally optimised various parameters. One important finding is that the product spectrum is influenced by both the morphology of the gold nanoparticles and the acid-base properties of the catalyst support. the four oxidation products have been separated by various techniques, and work is continuing to refine the economic assessment of the process with the aim of finding a commercialisation partner.

Product development work is continuing in-house, and in some cases in conjunction with SME partners. A major area of investigation is respiratory protection (gas masks), and integration of autek’s aurolite co oxidation catalysts in these systems continues. autek is also involved in developing catalytic materials that show enhanced resistance to deactivation, for long term CO oxidation applications such as air purification, fire protection, and mine refuge stations.

Another area where catalysis work has continued is in the Precious Metals Development Network (PMDN) of the DST’s Advanced Metals Initiative (AMI). In this programme Mintek is now focused on the development of a new class of gold and gold-palladium based catalysts for the epoxidation of propene to propene oxide, which is a very valuable intermediate chemical feedstock. The work is carried out in a three-way collaboration with Sasol and cardiff university, and the past year has seen the secondment of one Mintek researcher to cardiff university for a one-year post-doctoral fellowship sponsored by Sasol. Valuable results were obtained that have opened a new direction in the epoxidation process, and each of the partners will now investigate different aspects of the way forward.

Nanoscience and technology programme

the primary objectives under the nanoscience and nanotechnology programme are the development of nanostructured materials and nanominerals and their applications in health (therapeutics and diagnostics) and water (monitoring and remediation) sectors. the activities focus on a number of issues including the development of research platforms, encouraging and promoting the formation of collaborative

Gold Industry20


networks, addressing human capital development and bridging the “innovation chasm” by translating the research outputs into products and technology. all these activities are co-ordinated within the two major programmes in Mintek’s Advanced Materials division (aMd) - project autek (Goldfields/Mintek) and the dst/Mintek nanotechnology innovation centre (nic).

while project autek focuses on the development of gold nanotechnology, the nic focuses on the broader area of nanotechnology application in health and water. Through the NIC, formal collaborative networks have been established with three Universities. The University of the Western Cape and rhodes undertake and co-ordinate research activities in health (therapeutics and diagnostics), while the University of Johannesburg is involved in the field of water (monitoring and remediation). Mintek, the hub of the nic, hosts the nanominerals platform and all the development activities of the nic. the water research commission (wrc) and the Medical research council (Mrc) form an integral part of the nic and provide advice to the research and development thrusts to address relevant south african priority areas in water and health respectively. Good progress has been made during the first funding cycle (2007 - 2010: Phase I) of the nic. a total of 93 post-graduate students (14 honours, 35 M.sc., 30 Ph.D. and 14 Post-doctoral) were involved at the NIC Research Units. About 90 per cent of these are previously disadvantaged individuals, and 52 per cent are female students. Various semi-commercial products have been developed, such as nanomaterials or - particles, bioconjugates, and point-of-care (poc) prototype diagnostic devices. A total of 216 contributions were made to the international nanoscience community in the form of 125 journal publications and 91 conference papers/posters.

systems of biomolecules conjugated onto gold nanoparticles of various sizes have been prepared and are extensively used in the optical diagnostic programme, which focuses on the development of lateral flow POC tests for early detection of human and animal diseases of importance in south africa. tests for TB, malaria and brucellosis (the latter in conjunction with the onderstepoort veterinary institute (ovi) have been developed to proof-of-concept stage. one of the current highlights for the Unit was the successful attachment of the Rift Valley Fever (RVF) antibody to gold nanoparticles. work on the magnetic core-shell fe3o4-au nanoparticles complements the gold-based systems in the optical diagnostic platform. a long-term study on the effect of various storage regimes on the stability of both the conjugates and POC kits was started recently and will form part of the validation processes.

some of the projects emanating from the biolabels platform are undertaken at the University of Pretoria, in which synthetic drugs are attached to gold nanoparticles. these nanoparticle systems are assessed for their effects on cancerous tumours in in vivo studies. a project on the use of gold conjugates to inhibit the growth of new blood vessels in adipose tissue (fat tissue) is under way in collaboration with the MRC.

the electrochemistry programme focuses on the development of sensors for the early detection and monitoring of diseases

in animals and humans, as well as water-born pollutants. electrochemical sensors, in contrast to the optical devices, are important in that they yield both quantitative and qualitative results.

Mintek and the node at the university of johannesburg are developing nanostructured membranes and composites to address micro-pollutants in water. This research is targeted specifically at those pollutants and viruses that current technology is unable to remove. The work has led to collaborations with the university of california, los angeles, (ucla) and the university of Ben Gurion of the Negev, where collaborative work is been undertaken by researchers from both Mintek and the university of johannesburg.

the synthesis of gold nanoparticles and nanoplates using proteins as a biological template has been successfully demonstrated on laboratory-scale at Mintek. a variety of morphologies such as triangles and hexagons can be reproducibly synthesised. current efforts are focused on separating the particles according to size and shape and demonstrating larger-scale synthesis of the particles before investigating potential applications.

the construction of a r13-million advanced cleanroom facility (iso 3), supported by the department of science and technology, is scheduled for completion in December 2010. The facility will enable Mintek to develop and fabricate systems and products under current Good Manufacturing processes, and also to meet the required Good laboratory practice (Glp) and (iso) standards for medical devices.

Gold process testwork

a large number of investigations into oxygen demand and its effect on the cyanidation process were conducted on gold-bearing sulphide ores for Maelgwyn Mineral Services Africa.

Cyanide diagnostic leach tests were conducted on various gold-bearing materials from a number of gold processing plants, including:

• Blyvooruitzicht and Benoni tailings (DRD Gold Ltd);

• Kwekwe Mine roasted tailings dump material (Minerals Marketing Corporation of Zimbabwe - MMCZ);

• ChemWes flotation tailings (First Uranium);

• Elandsrand Gold Plant residue (Harmony Gold Mining Company Limited); and,

• New Kleinfontein Gold Plant feed material (Gold One international).

Process optimisation investigations were carried out on plant feed and residues from Gold fields’ driefontein and south deep gold plants, and cyanidation amenability testwork was also conducted on copper-bearing tailings from tsumeb in namibia.

Screening, comminution and cyanidation tetstwork was carried out on a bulk sample of “free dig” surface material from Shanta Gold limited’s chunya project in tanzania.

Gold Industry 21


A new-generation Mikrosort® secondary optical sorter from Commodas, capable of throughputs of up to 100 tons per hour at a feed size range of 20 to 80 millimetres (depending on the mineral composition) was commissioned at Mintek. A key feature of the new facility is its ability to recycle the products back to the feed, so that throughput tests can be conducted to specify the performance under various loading conditions. the sorter has been tested extensively on gold ores, particularly waste rock dumps as well as on underground ore, with efficient, cost-effective results demonstrated. As a result of the merger between commodas and ultrasort, a diamond sorter, has also been commissioned on site at Mintek.

Research and Development

Mintek has commissioned a new advanced gold leach facility aimed at optimising the design and operation of gold recovery circuits from both the environmental and economic standpoints. the fully instrumented mini-plant is designed to supplement the widely-used bottle roll technique for gold amenability testwork by allowing the leaching kinetics of the target metal and the environmental parameters to be monitored in relation to the process conditions. the environmentally harmful elements such as cyanide, arsenic, and heavy metals are tracked in “real time” as the leach progresses. Understanding how the chemistry of the process changes in response to variations in the controllable leach parameters will enable Mintek to improve leach plant designs to meet environmental protection standards without compromising gold recovery.

It is known that many of the novel processing techniques such as high pressure grinding rolls, ultra-fine milling, and high shear oxidative leaching have positive impacts with regards to gold recovery. What is less clearly understood are the beneficial or detrimental side effects when taking sustainability issues such as water recyclability into consideration. Efforts have been directed to include these aspects in the leach test design in order to try and identify the process route with an overall best score rather than focus on recovery only. the most important issues, other than straightforward gold recovery are cyanide, thiocyanate, arsenic, mercury (mainly as a result of reprocessing old tailings deposits), and discharge salt loads, as well as overall water and power consumption.

the projects conducted so far include investigating leach dynamics under different oxygen management strategies. a key finding is that the metallurgy and leach dynamics are frequently very specific to the mineralogy of the sample, and to the methods of comminution and concentration employed. For example, fine grinding can increase the leaching rate of gold, but may also mobilise more cyanide-consuming minerals, in which case staged cyanide additions would be beneficial. The leach dynamics can also be influenced by the early or late formation of weak acid dissociable (wad) cyanide species.

Some of the larger projects undertaken demonstrated the benefits of focusing on gold dissolution, but also more aggressively on reagent consumptions and resulting sustainability issues in order to identify viable options at an early stage.

the subject of oxygen management during gold leaching has received increased attention. Mintek has worked successfully in collaboration with outside consultants on clients’ projects aimed at defining the actual oxygen need in relation to target ores and variations within these, and will endeavour to establish a centre of excellence around this topic in collaboration with gas suppliers.

An area of renewed focus is the question of geochemical stability of tailings with respect to issues such as arsenic (and almost certainly to follow) uranium leaching under differing environmental conditions.

Mintek is continuing with a desktop study to develop a holistic view of gold processing. This project, which is funded through the Science Vote, is considering various unit operations (ultrafine milling, high-pressure grinding rolls, gravity, flotation and sequential flotation, ore sorting, alternative lixiviants, carbon/resin adsorption, pre-, bio- and pressure oxidation, from the point of view of both gold recovery and sustainability (power, water usage etc.).

Cyanide management

Mintek participated in a gap and full ICMI certification audit on sasol polymers’ Midland cyanide production and transport facility, resulting in the re-certification of both cyanide-related businesses (the cyanide transport section of Sasol Infrachem was the first global transporter to be re-certified under the code). Mintek took the role of Technical Expert Auditor in these exercises, with Eagle environmental as lead auditor. a limited pre-audit site assessment targeting the cyanide levels at process, backfill and TSF (Tailings Storage Facility) levels was conducted for the Harmony Gold Mining company limited kusasalethu gold plant.

Compliance-based analytical service work continued throughout, albeit at reduced levels due to the increasing logistical constraints.

in response to clients’ needs, the focus at Mintek has shifted from straightforward compliance targeting to process enhancement by addressing underlying issues such as excessive reagent consumptions and improved plant control. this has resulted in a number of collaborative projects involving site- and laboratory test work.

In association with an independent consultant, the influence of fine milling and oxygen management on cyanide consumption were investigated for Randgold Resources’ Tongon project, to determine the size of oxygen plant needed. process simulation was also carried out on two types of ore from the Massawa project, and a second phase of work may be undertaken in 2010.

Gold Industry22


Platinum Group Metals Industryunder the strateGic alliance between jubilee platinuM and sylvania resources, a smelting

trial was conducted in Mintek’s ConRoast demonstration smelter on low-grade PGM concentrate from

sylvania’s chromite tailings recovery operations.

Approximately 99 per cent of the PGMs were recovered from the concentrate, which contained an initial 85 grams per ton precious metals and 7 per cent chromium. sylvania and jubilee plan to trial-smelt low grade concentrates from other dump operations, as well as concentrates produced from a bulk sampling programme at sylvania’s Grass valley platreef project in the northern limb of the bushveld complex.

Extensive comminution, heavy media separation, and flotation testwork was carried out in support of the feasibility study for northam platinum’s booysendal project in the eastern bushveld Complex. The study was concluded in the last quarter of 2009. Northam plans to develop the project using a modular approach, with the first stage producing some 130 000 ounces platinum, palladium, rhodium, and gold per annum.

PGMs Industry 23

1. Physical vapour deposition apparatus for applying sub-micrometre films of precious metals.

2. Pilot plant flotation exercise for a PGM project.

3. Atomisation of platinum to produce material for powder metallurgical applications.

4. Tapping PGM-bearing alloy from the ConRoast demonstration smelter.

1 2 3 4


In regard to Sheba’s Ridge, further work is planned to optimise the concentrator design using a simpler flowsheet.

Laboratory-scale comminution and flotation tests were conducted on several hundred kilograms of Merensky and UG2 core samples from Nkwe Platinum’s Garatau project, in support of the bankable feasibility study led by twp projects.

The first stage of testwork was completed to develop a metallurgical flowsheet for the recovery of PGMs from chromite tailings for pan african resources’ phoenix chrome tailings retreatment project. A similar project was done to investigate the recovery of pGMs from chromite spiral plant tailings for tharisa resources.

Process optimisation investigations were completed for Sylvania resources on the steelpoort, Millsell, Mooinooi, and lannex chrome tailings retreatment plants, particularly to gauge the effectiveness of stirred media milling in increasing pGM liberation and recovery. Work is ongoing on the Doornbosch and Tweefoontein operations.

Feed characterisation, laboratory testwork and a short pilot-plant run were conducted to recover PGMs from Impala Platinum’s Merensky reef tailings dams. the company plans to build a recovery plant after completing its shaft 17 and shaft 19 projects.

Significant effort (funded by the Science Vote) has been applied to assessing variability of UG2 ores from various parts of the Bushveld Complex, with a view to understanding the effect of regional variations on metallurgical performance. the current phase of the work will ultimately be incorporated in a Ph.D. thesis.

PGMs Industry

PGM Characterisation

A major project has been running since 2008 on the automated characterisation of PGMs, particularly grains less than 10 micrometres in size (which are typical of UG2-type ores) using the scanning electron microscope (SEM), with the focus on increasing the reliability of the data and capacity development. Coupled with this, quality assurance and control procedures are evaluated to ensure quality criteria are met.

An automated SEM study was undertaken of the PGM distribution across a UG2 primary rougher circuit, where about 80 per cent of the PGM recovery takes place, to investigate whether flotation characteristics can be adequately described using mineralogical parameters such as liberation index, sulphide-gangue relationships, and size distribution. It was found

1. A bulk sample of platinum ore arrives at Mintek for process testwork.

2. A cascade of circular flotation cells.

3. Mintek’s 1 ton per hour pilot flotation plant.

4. Screening a pulped PGM sample.

1 2 3 4

24


that flotation parameters describe the behaviour of the PGMs fairly well where large changes in PGM concentration occur, but larger data sets are required where the concentrate grades in adjacent flotation cells in a concentrate bank are similar. In particular, the complex interplay between floatable and non-floatable gangue, PGMs, and base metal sulphides needs to be taken into account.

Two M.Sc. research projects, one on the relationship between the PGMs and base metals and the other on data verification, will be completed during 2010. In order to handle the large volumes of data that are generated by the commercial automated SEM system, a processing application was developed through a collaborative effort between the Mineralogy and Measurement and control divisions, that takes outputs from the automated seM and converts them into more meaningful mineralogical parameters.

Building on this work, the metallurgical significance of the mineralogical parameters was further investigated, so as to provide a metallurgically-meaningful output. A new software application has been developed, which examines the mineralogical and other data on a grain-by-grain basis, and produces an output that highlights the metallurgical properties of the pGM-bearing particles, including quantitative information on the potential recovery and the reasons for recovery or losses. This, together with other diagnostic testwork, will assist the metallurgist to make informed decisions regarding the performance of a flotation plant.

Mintek has also developed an automated software tool towards the quantitative characterisation of pGM-bearing particles using a seM. the x-ray signals from the sample are analysed in a novel way, which allows accurate identification of small mineral particles at resolutions down to 1 micrometre. An agreement with an international manufacturer of SEMs was signed in 2009, for incorporation of this tool in their software, and a product is planned for completion in 2010.

A new state-of-the-art SEM was installed in the Mineralogy Division in 2009 to add additional capabilities and value to regular optical mineralogical investigations. the superior imaging capabilities of this instrument provide textural and grain size information via high resolution secondary electron (se) and backscattered electron (bse) images. the system also contains a high count rate energy dispersive spectrometer (EDS), which can provide quantitative chemical information on the minerals present in a sample, as well as high speed elemental x-ray maps.

In 2010, Mintek will be starting a project, in collaboration with the south african nuclear energy corporation (necsa), on the development of computer aided tomography (cat) methods, using x-rays and neutrons, to assist the optimisation of mineral beneficiation processes. This is aimed at obtaining three-dimensional information from mineral and plant samples to complement the two-dimensional information gained from current mineralogical techniques.

HySA/Catalysis Competence Centre

Mintek and its partners at the University of Cape Town (uct) have been appointed to establish the hysa/catalysis competence centre as part of the dst’s national hydrogen and fuel cell technologies research, development and innovation strategy. in this past year, the centre at Mintek has seen the arrival of four fuelcon fuel cell test stations, four fuel cell test fixtures, a hydrogen generator, and an ultrasonic spray coater. This equipment will provide HySA/Catalysis with a comprehensive facility for electrocatalyst and membrane electrode assembly (Mea) fabrication and fuel cell stack assembly.

The performance of single cells and short stacks will be characterised under simulated operating conditions applicable to each application that the hysa programme aims to develop, namely portable power, combined heat and power, and vehicle systems. The Centre has also procured a Joel 2100F high resolution transmission electron microscope (hrteM) that is set to be fully operational by June 2010. This instrument will be crucial in the characterisation of fuel cell catalysts at the nano-scale and will contribute significantly to the development of novel catalysts by the centre in future.

on the research front, the focus has been on the laboratory-scale preparation of platinum and platinum-ruthenium fuel cell catalysts for hydrogen and direct methanol fuel cells respectively. the aim of producing laboratory-scale materials of similar electrochemical performance to commercially available materials has been met, but these catalysts still require validation in actual fuel cells. Once validated, the focus will be on the development of methods for the industrial-scale production of these materials while maintaining the performance.

the development of novel catalyst materials continues in parallel, and attention has been placed on developing novel carbon aero-gels as supports for platinum catalysts. these highly porous carbons are expected to have benefit in the electrode catalyst layers by limiting gas diffusion resistance through the layer, which limits fuel cell performance.

Another area of research was a review and techno-economic evaluation of possible solar hydrogen production through water-splitting technologies based on photocatalysts and photoelectrochemical cells (pecs). the outlook for cheap hydrogen from direct water splitting by solar light (even with idealised systems) is poor, and the estimated costs of production (between US$13 and US$37 per kilogram H2) far exceed the accepted US$3 per kilogram target for a viable “hydrogen economy”. As such, the Centre has recommended that future hysa programme resources are not placed in r&d in this area. the study does not rule out other solar technologies such as solar-thermal electricity production coupled with efficient water electrolysers, but these require further techno-economic analysis.

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Ferrous Metals Industrytestwork on the upGradinG of iron ore to support pre-feasibility and feasibility studies remained an important area of commercial interest. bench and pilot scale studies for the pietersburg iron Company on the upgrading of materials from a low-grade magnetite deposit focused on novel approaches to fines beneficiation, ranging from milling, using a high pressure grinding roll (HPGR), to sequential magnetic upgrading, to target specification. Iron ore from new projects tends to be of a lower grade, and the mineralogy of the deposits is more complex. Collaborative studies were conducted with Kumba on the SLon technology, during which Mintek developed the first phase of a user manual setting out operational parameters for various ore applications.

A large amount of small-scale tank and heap leaching testwork was conducted on samples from African Eagle Resources’ Dutwa nickel laterite project in Tanzania. The testwork showed that the ore is unusually amenable to acid leaching, with good nickel extraction, very low acid consumption and very fast leach kinetics compared to other nickel laterites around the world. Similar testwork is planned in 2010 for the Ngasamo laterite deposit, which is adjacent to the main Dutwa deposit. Acid leaching tests were also carried out on drill samples from Zanzui, African Eagle’s second Tanzanian laterite project, with results comparable to those from Dutwa.

prophecy resources has commissioned Mintek, in conjunction with Wardrop Engineering, to conduct metallurgical testing on a bulk sample from its lynn lake nickel sulphide deposit in Manitoba, Canada. The project, which includes flotation

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1. Casting grinding balls from an experimental alloy.

2. An industrial ferrochromium furnace.

3. Smelting a titaniferous magnetite concentrate.

4. Nickel matte tapping.

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method development, production of concentrate, and tank bioleaching amenability and optimisation tests, is scheduled to start in the second quarter of 2010. The results, if favourable, will be incorporated into the planned feasibility study. a number of enquiries for similar work have been received, indicating renewed interest in agitated-tank bioleaching for on-site metal recovery, rather than producing concentrate for third-party smelting.

Mintek was approached by DRA Mineral Projects Ltd (dra) on behalf of uranium star corporation to evaluate a hydrometallurgical process route to recover vanadium from the Green Giant vanadium deposit in south western Madagascar. The work consisted of mineralogical characterisation (including x-ray diffraction, optical microscopy and scanning electron microscopy), atmospheric acid and alkaline leaching, an

evaluation of the potential for upfront pre-concentration by physical separation techniques and flotation.

A 200 kilowatt smelting test in a DC furnace was successful in producing significant quantities of silicon metal for the first time. The aim was ultimately to develop an improved method of producing solar grade silicon. However, owing to the introduction of significant contamination by metallic iron during tapping, it was concluded that this route is not worth pursuing further.

A smelting test on more than 25 tons of nickel concentrate successfully demonstratedthe beneficial effects of careful control of the operating conditions on the overall process performance. The 3.2 megavolt-ampere DC furnace was operated in submerged-arc mode instead of with an open arc, and with a “black top” of unreacted feed material on top of the molten slag, so as to simulate

a production-scale AC furnace. This work constituted the second phase of an investigation that was begun for Xstrata Nickel in 2008 (Annual Report 2009).

Simulation work using Mintek’s ROSES electrode temperature profile simulator has shown that it should be possible to use a Söderberg self-baking electrode in a DC furnace, with resulting savings in electrode costs. A self-baking electrode was pilot-tested in the 3.2 megavolt-ampere DC furnace for more than eight hours at temperatures up to 600ºC. The electrode displayed good mechanical properties, and there were no major differences in the arc characteristics compared with pre-baked graphite electrodes. Using a direct current would be expected to result in more even baking and less stress on the electrode, which is an important consideration when using very large-diameter electrodes.

Ferrous Metals Industry

1. Wet low-intensity magnetic separation of iron ore.

2. Laboratory-scale flotation testwork.

3. Testing a Söderberg self-baking electrode in the DC furnace.

4. The Söderberg electrode after removal from the furnace.

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A Ph.D. study was completed on the dynamic modelling of the arc in a DC furnace using computational fluid dynamics, and the modeling results verified using high-speed photography. A key finding is that there are distinct short-term transition effects, of the order of less than one millisecond, in the behaviour of the arc. these are related to the furnace current and arc length, and could potentially have an effect on power supply control. Mintek has started a collaborative project with Zurich-based power and automation technology group ABB, who are interested in applying the results of the research to the design of improved power supply equipment for DC furnaces.

The site for a new X-ray fluorescence sorter from Rados SA of russia is being prepared, and the unit is expected to be operational by the end of July 2010. This is a complementary technique to optical sorting, based on online X-ray fluorescence analysis of the surface of each particle followed by physical sorting rather than pneumatic ejection. the main areas of focus that differentiate this sorter from optical or x-ray transmission sorting include dry upgrading of manganese ores to a specified manganese-to-iron ratio, and detection and sorting of coarse kimberlite ore from waste. The direct surface assay by XRF scan has also found interest in uranium ore upgrading and waste removal from sulphide orebodies.

Process Modellingthe latest developments in modelling of physical separation processes include circuit simulations of wet low-intensity magnetic separation (liMs) to produce high-purity magnetite of various size and grade specifications. The modelling of spiral and shaking table separators has made extensive use of seM imaging to incorporate feed and product size, density, grade and shape data into a single model framework.

Improved Grinding Mediathis dst-innovation fund sponsored project

2010 - PMG · and gold leaching circuits, and sumberged-arc furnaces. • Online cyanide...

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