INDUSTRIAL METALS, MINERALS & MINEABLE ENERGYINVESTMENT SUMMIT

IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 3 NOV 2011

www.ObjectiveCapitalConferences.com

The importance of applied research in industrial metals and minerals

Alan Gibbon – MIRO

The Importance of Applied Research in Industrial Metals and

Minerals

The Mineral Industry Research Organisation (MIRO)Alan Gibbon

Photographs reproduced with permission from Johnson Matthey

Industrial Metals, Minerals & Mineable Energy Investment

SummitLondon, November 3 2011

OverviewOverview• What is MIRO?• Some projects

PGMs, Zn & CuMiningTransportEnergy

• Benefits of collaboration• Conclusions

Photographs reproduced with permission from Johnson Matthey

Concorde House

Who is MIRO?Who is MIRO?• Minerals and metals focussed

independent RTD service provider • Established 1974 • Owned by its members• Develop and manage pre-

competitive collaborative RTD• No in-house research facility –

works through a network of deliverers

Photographs reproduced with permission from Johnson Matthey

MIRO’s MissionMIRO’s MissionAs the leading UK collaborative research As the leading UK collaborative research provider our aim is to add value to our provider our aim is to add value to our members’ businesses through the provision of members’ businesses through the provision of cost efficient and industrially relevant projects. cost efficient and industrially relevant projects. We focus our activities in the mining and We focus our activities in the mining and minerals sectors to highlight industrially minerals sectors to highlight industrially relevant science and technology and provide relevant science and technology and provide innovative solutions to the key challenges innovative solutions to the key challenges before us.before us.

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How the MIRO Structure How the MIRO Structure DeliversDelivers

Photographs reproduced with permission from Johnson Matthey

BUSINESS BUSINESS BUSINESS

NEEDSNEEDSNEEDSDEVELOPMENTDEVELOPMENTDEVELOPMENT

FUNDINGFUNDINGFUNDING

RESEARCH ORGANISATION

INDUSTRYINDUSTRYINDUSTRY

CAPABILITIESCAPABILITIESCAPABILITIES TECHNOLOGYTECHNOLOGYTECHNOLOGY

DELIVERYDELIVERYDELIVERY

MAKING THE CONNECTION

BUSINESS BUSINESS BUSINESS

NEEDSNEEDSNEEDSDEVELOPMENTDEVELOPMENTDEVELOPMENT

FUNDINGFUNDINGFUNDING

RESEARCH ORGANISATION

INDUSTRYINDUSTRYINDUSTRY

CAPABILITIESCAPABILITIESCAPABILITIES TECHNOLOGYTECHNOLOGYTECHNOLOGY

DELIVERYDELIVERYDELIVERY

MAKING THE CONNECTION

Why does MIRO do Why does MIRO do research?research?

MIRO is responsive to address:

• Increasing operating costs – labour, power and water

• Changing raw materials availability– lower value, disseminated and often more difficult to access

• Technical challenges– new products and recycling• Increasing environmental regulation – the carbon

agenda, waste and societal impact

Photographs reproduced with permission from Johnson Matthey

New & Improved New & Improved ProcessesProcesses

1. PGM Extraction in South Africa

2. Zinc production in the UK

3. Copper production in the USA

Understand the fundamentals

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The FundamentalsThe Fundamentals

I am talking about...thermodynamics!

MIRO, up to 20 major companies and the National Physical Laboratory (MTDATA) have collaborated for 30 years to enable REAL industrial processes to be modelled… successfully.

Photographs reproduced with permission from Johnson Matthey

Photographs reproduced with permission from Johnson Matthey

Gk = ( ni ) .

( Ai xi + RT xi ln(xi)

+ xi xj ( Bij + Cij ( xi - xj ) + Dij (xi - xj )2

+ Eij (xi - xj )3 + Fij (xi - xj )4 )

+ xi xj xk ( Hiijk (xi + (1 - xi - xj - xk ) /3)

+ Hjijk (xj + (1 - xi - xj - xk ) /3)

+ Hkijk (xk + (1 - xi - xj - xk ) /3))

+ Gmag + Gpress )

moving quickly on....

Photographs reproduced with permission from Johnson Matthey

PGM Extraction in South PGM Extraction in South AfricaAfrica

Matte Slow Cooling Process implemented in the mid-1970’s

Pipeline from ore to saleable metal cut from 9 to 3 monthsPeirce Smith Converter operation is key

Original process... removed all the iron fromthe matte. MSCP required some iron to remain

Converter operation was successfully modelled and implemented

Photographs reproduced with permission from Johnson Matthey

PGM Extraction in South PGM Extraction in South AfricaAfrica

Recently the Peirce Smith Converters were replaced with an Ausmelt furnace

Software and data were again used successfully to model the new approach

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Zinc recovery in the ISF Zinc recovery in the ISF FurnaceFurnace

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Problem with iron formation

lumps of iron called “dead men”

Zinc recovery in the ISF Zinc recovery in the ISF FurnaceFurnace

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Calculations recommended addition of alumina to charge

This was not an intuitive outcome

Implemented and problem solved

However... a few months later new company owners disagreed and removed alumina... immediately problem recurred

Kennecott Utah Copper Kennecott Utah Copper SmelterSmelter

Two stage oxidation of copper-iron sulphides to produce copper

1)Outokumpu Flash Smelting Furnace and fayalite slag

Produces “white metal” (Cu2S.FeS)

2) Flash Converting Furnace and calcium ferrite slag

Produces copper

Problem... excessive copper losses into the slag

Photographs reproduced with permission from Johnson Matthey

Kennecott Utah Copper Kennecott Utah Copper SmelterSmelter

• Calculations used to investigate fluxing practises and operational problems associated with the mixing of slags

• Iron silicate carry over Identified as cause of loss

Copper loss problem solved

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Process ModellingProcess Modelling...It works...It’s fast...It’s cost effective...It’s transferable

www.npl.co.uk/mtdataThese are the conclusions of Anglo Platinum, Rio Tinto,

Johnson Matthey, Outokumpu, Tata Steel, Eramet and our other supporters

For >20 years project has been 100% industry funded

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Mining & The European Mining & The European UnionUnion

• The European Commission is a major source of research funding

• MIRO is a member of the European Technology Platform for Sustainable Mineral Resources (www.etpsmr.org/)

• If you don’t mine it or grow it you must import it

• Sustainability of supply is now a key European issue and has resulted in several big European raw materials projects

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ETP-SMR

IntelliMine IntelliMine Innovative Technologies and Concepts for the Intelligent Deep Mine of the Future

23 partners (most from industry)Budget Euro 22 million

Aims 1. Address technical challenges from disseminated,

lower value and deep ore bodies2. Minimise the impact of mining on society... The

Invisible Mine

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Transportation – Mole WaysTransportation – Mole WaysImagine 80% of lorries of the road and rail network for passengers not freight

How – The Mole Freight PipelineMoles are based on standard supply chain handling unitsMoleways are 1 to 2.0m diameter cut and filled beside existing transport infrastructureMotive power is electric via linear magnets... Proven and no moving parts

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Transportation – Mole WaysTransportation – Mole Ways1. Direct operating costs –10% of road2. Capital costs - competitive with conveyors3. Low maintenance – short or long distance4. Capacity utilisation – increase in volume

reduces unit costs5. Reliability –not affected by weather and

accidents, 6. CO2 Agenda– significant if power comes from

renewable electric sources

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The Benefits of Research The Benefits of Research Partnerships to IndustryPartnerships to Industry

• Increased gearing of corporate spend (5 to 10 times)• Co-funding as work-in-kind• Increased scale of projects• Control of the project direction• Stimulation of both research and industrial

personnel through interaction • Speedier and more efficient knowledge transfer

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In ConclusionIn ConclusionMIRO...• does not aim to set the research agenda• does not have its own research facilities• has a cross sectoral and integrated approach • aims to add value and reduce risk through collaboration,

co-funding and gearing• is reactive to the needs of industry

Key is an understanding of industry members’ priorities and acting upon them

Photographs reproduced with permission from Johnson Matthey

alan.gibbon@miro.co.uk