Presentation made by EPPA/ MPBIASA & SMG Technologies ... · Presentation made by EPPA/ MPBIASA &...
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Presentation made by EPPA/ MPBIASA & SMG Technologies Africa (Pty) Ltd
To Mpumalanga Provincial Government ( MPG )
Department of Economic Development & Tourism. 3rd September 2013
Denis Verity – Head of Research & Development MPBIASA &
CEO SMG Technologies Africa (Pty) Ltd.
Associates- Phineas Mohlala
Lot Mthombeni
Sobhuza Nonyane
Agenda
• Key trends in metallurgical industry
• Challenges for industry
• Our product
• Corporate structure & offering
• Supportive environment
Key trends in metallurgical industry include
1. Significant interest in the products and technology to increase profitability
2. Selling prices of nearly all core commodities and metals prices are weak
3. Significant impact of costs incurred by metals processors and recyclers to landfill waste materials
4. Increased environmental regulations imposed upon metals processors and recyclers with respect to landfill waste
5. Strong current focus on alternate sources of energy and the benefits from CO2 credits.
However growth doesn’t = jobs e.g non ferrous metal products
Further challenges • Increasing energy costs pose a major
threat to manufacturing, rendering our historical resource-intensive, processing-based industrial path unviable in the future. (IPAP 2)
• A failure to manage waste and waste water leads to socialised costs through, for example pollution. Dangerous waste (like acid mine drainage) must be treated to prevent damage to ecosystems, infrastructure and health, while the extraction of value from waste streams improves the cost-benefit of waste management overall. (IPAP2)
• The energy sector currently accounts for a large percentage of CO2 emissions, which directly contribute to climate change effects. It is clear that without delay we need to implement practices that will reduce demand, choose cleaner sources and deploy the best available energy technologies that will also create much needed jobs. (Minister of Energy, Minister Dipuo Peters, 18 March 2011)
• We must forge ahead to promote a more inclusive economy (President
Zuma June 2009)
Challenges
• Reuters 23 July 2012: “Anglo American Platinum (Amplats), the world's top platinum producer, signalled on Monday it plans to trim loss-making shafts as producers of the metal grapple with depressed prices and a rise in union militancy”
• Mining Weekly 23 July 2012: “Struggling Amplats going headlong into market development, cost cutting”
Current products
• The patented High-Energy
Products are made principally from recycled aluminum and aluminum oxides into end products
• The technologies mainly use low value by-products and waste materials from landfills, resulting in low raw material costs, and giving the company a strong competitive advantage
• Toxic emission reduction = carbon credits
• Long shelf life
• Safe to transport and handle
• Environmentally friendly
• Fast reactivity
• Excellent flow characteristics
• Multiple market applications
Products Explosives
Current products…. proven products
Tests conducted by the CSIR showed Samite Prill blended with commercial explosives: • Increased energy released by +/-40% • Reduced reaction time from 144 to
11ms An international physicist reported the product: • Releases 1.91 times more energy
with a resultant increase in detonation pressure of 38 – 40%
These have resulted in: • Higher velocity of detonation (VOD) • Greatly improved fragmentation • Reduced drilling & blasting costs by
40% • Improved loading and haulage • Cost savings
Explosives
Current products…. proven products
Prill is blended with fine coal in a pre-combustion strategy for injection into burners to achieve the following results:
– Reduction in noxious gases by
up to 40% – Reduction rates on kilns by
40% – Sulphur and Phosphorous
reduction – Low grade coal utilisation – Increased energy output and
CV modification – Increased metallisation
•
Products have been sold to and tested with a number of companies including:
– Xstrata – Anglo Platinum – Merafe Resources – CSIR – Mittal Steel – Sasol – Khumba
Energy Products tested with
Corporate structure
SMGA Group
SMGTA
Environment/ waste clean up
Production from waste
Energy from waste Trading
SGMA Operations
SMGA Group
Environment/ waste clean up
Medical
Toxic metals / oxides
Landfill
Production from waste
Explosives
Ferro Chrome
Manganese
Ferro Vanadium
Fertilizer
Cement
High energy products
Energy from waste
Power generation
High energy product for reducing power
consumption
Trading
Carbon
Metals
Commodities
SMGA Operations
Group Support
Group support to JV partners
includes
Licence
Group support to JV partners
Presentation material
Marketing material
Group support to JV partners
Assistance with acquiring finance
Assistance with acquiring grants
Assistance with acquiring incentives
Group support to JV partners
Plant design
Technology & resources
Training
Group support to JV partners
On going support
Benefits of on-going R&D
Supportive environment
Government supportive of green industries: • IPAP 2 will focus on the manufacturing aspects of the Green
Economy; namely Green Industries and Industrial Energy Efficiency. (IPAP2)
• National Sustainable Development and Action Plan • R2 billion Green Fund (MTEF 2012 – 14) administered through the
DBSA • EDD & IDC Green Industrialisation Work Programme of R25 billion • Integrated Resources Plan • Tax Incentive Regulations to support Energy Efficiency Regulations
once promulgated • Green Pact • Energy Efficiency Accord
Alignment between government objectives and Samtek
Government policy Objectives Samtek delivery
National Strategy for Sustainable Development & Action Plan
Clean energy & energy efficiency; sustainable infrastructure
Energy from waste
Sustainable waste management practices
Environment/ waste clean up Product from waste
National Growth Path; National Strategy for Sustainable Development & Action Plan; IPAP2
Create and protect jobs Environment waste & clean up; Production of waste; Samtech operations; Either through direct operations or through licenced operations and joint ventures
Alignment between business objectives and Samtek
Examples of business objectives
Samtek delivery
Reduce landfill Environment/ waste clean up
Reduce costs
Product from waste – explosives, energy
Reduce emissions Product from waste – explosives, energy, cement
product
Low cost inputs Product from waste – fertilizer, ferrochrome,
Ferro metals, explosives