the south african minerals to metals research institute

Proposal for the establishment of:

The South African Minerals to Metals Research Institute (SAMMRI)

Prepared for: The Department of Science and Technology

on behalf of the SAMMRI Steering Committee

April 2009

SAMMRI : Proposal to the Department of Science and Technology: April 2009 i

Proposal to Department of Science and Technology

This document presents a proposal for the establishment of a major intervention in the Minerals to

Metals sector aimed at the long-term development of high-level skills and world-class minerals

processing technology.

The proposal is based on a review of the minerals processing industry to provide the context for

the intervention. The review was funded by the Department of Science and Technology.

The primary purpose of the review was to evaluate the status of the South African Mineral

Processing industry with a view to identifying the present strengths and weaknesses of the

industry, as well as to provide an understanding of the opportunities that exist for such an

intervention.

Note

In this document the terms ‘Mineral processing’ and ‘Mineral beneficiation’ are used

interchangeably and refer to the processing and extraction of minerals and metals, from the point

of delivery of the mined ore to the initial ore processing operation to production of the final refined

and saleable metal or mineral product.

SAMMRI : Proposal to the Department of Science and Technology: April 2009 ii

Executive Summary

Introduction

This document presents a proposal for the establishment of a national research institute that will

focus on developing high-level skills and world-class technology for the minerals beneficiation

sector in South Africa. This combination of skills and technology is critical to ensuring the long-

term techno-economic sustainability of the sector, while giving due consideration to minimising

the impact on the natural environment and maximising the positive contribution of the sector to

the macro-economy, particularly as it relates to job creation and contribution to GDP.

The proposed institute, provisionally named „The South African Minerals to Metals Research

Institute‟ (SAMMRI), will operate as a „virtual‟ research institute, thus providing an effective

platform for collaborative research across universities, other research institutions and the private

sector.

The Department of Science and Technology provided seed funding for a review study, on which

this document is based, as well as for the preparation of this proposal for the establishment of

SAMMRI, which includes a proposal for the establishment of a pilot project. The aim of the pilot

project is to address one of the critical research needs identified during the review study and to

serve as a demonstration project for future SAMMRI projects. The pilot study will be co-funded by

government and industry.

Review and Analysis of the Local Minerals Beneficiation Industry

The review study was conducted through a series of intensive interviews with a wide range of

senior technical people in the minerals beneficiation sector, as well as active research providers

to the sector at the universities and science councils, both in South Africa and internationally,

between January and April 2009. The results of these interviews, together with separate reviews

of the role of the minerals industry in South Africa and its impact on the environment, served as

the basis for the analysis of the strengths and weaknesses of the minerals industry and the

threats with which it is faced, as well as opportunities for research to sustain the industry.

South Africa features prominently in terms of the world‟s reserves and producers of a number of

mineral commodities, particularly the platinum group metals, manganese, chromium, vanadium,

gold, titanium, zirconium, and, to a lesser extent, coal and uranium. Although the minerals

industry is a relatively small sector of today‟s vast world economy, its contribution to modern living

remains substantial, with the primary resource sector providing essential inputs for virtually all

sectors of the economy. In addition to the direct contribution, mining also has an indirect multiplier

effect on the gross domestic product, giving rise to a “real” contribution by mining to South

Africa‟s GDP of between 15 and 20%. More than 1 million people are employed within the mining

sector and supporting industries; and each mineworker is reported to support between 7 and 10

dependants, so that the industry supports between 7 and 10 million people and, thus, plays a

prominent role in socio-economic upliftment and transformation within the country.

The mining industry has driven the technological and economic development of South Africa over

the last century. In order to develop the technologies required to make the industry profitable and

SAMMRI : Proposal to the Department of Science and Technology: April 2009 iii

competitive internationally, the mining industry established its own research organisations, which

have made major contributions to the development of new processing technologies. However,

over the last 30 years, most of these research facilities have closed, as have many similar

research facilities around the world. The value proposition of SAMMRI needs to be considered in

the context of current minerals processing research capabilities, both in South Africa and around

the world. This is because the technologies developed and employed in the industry play a key

role in extending the industry‟s resource base, enhancing the safety and reducing the

environmental impact of the operations and developing the skills needed to operate and maintain

these operations successfully.

The strengths and weaknesses of the minerals industry and the major threats facing it were

analysed based on the outcomes of the industry survey. In summary, major strengths of the

industry in South Africa are the technology it employs and the quality of its ore reserves, while the

major weaknesses and threats are largely related to the shortage of highly skilled people in the

industry and in the tertiary institutions at which such people are trained. This is considered

particularly critical in specialised areas of extractive metallurgy such as pyro- and

hydrometallurgy. Other threats identified related to the efficiencies of existing processes and the

use of energy and water.

Vision and Roadmap for the Minerals Beneficiation Industry

The review of the status of the minerals beneficiation industry led to the identification of a number

of opportunities for the industry and from these a roadmap and a vision were derived.

Mining will continue to play a vital role in the world‟s economy, but ores will be processed

underground, in inherently safe operations with a minimal surface footprint. Mining philosophy will

be based on earth usage and integration, supported by sustainable mining communities and

employing fewer more highly skilled people.

Process intensification will provide smaller processing units with high separation intensities that

will facilitate the migration of processing to underground sites with in-situ and biological

processing, while significantly improved grinding technology and better flotation devices will

provide higher metal recoveries with lower energy and water consumption. The increased use of

dry processing and alternative energy sources, such as solar energy, will contribute to reduced

energy and water consumption and effluent generation. Other anticipated process developments

include the increased use of „new‟ technologies, significantly increased plant automation and

improved process control.

These opportunities and their associated vision and roadmap support the motivation for SAMMRI

and provide the basis for its future research.

Proposal for the Establishment of SAMMRI

It is proposed that SAMMRI be established as a partnership between the mining industry,

Government, and South African research providers. It will promote long-term innovative research

in the area of mineral processing and the concomitant development of world-class technologies

that will ensure that the South African mineral processing industry not only remains internationally

competitive but also assumes a global technological leadership position. The primary emphasis of

SAMMRI : Proposal to the Department of Science and Technology: April 2009 iv

the research will be on long-term objectives aimed at ensuring that the country is able to sustain a

successful and technologically innovative mineral processing industry for the next 20 to 30 years.

The value proposition for SAMMRI includes a preliminary analysis of the benefits that could

realistically be expected to flow from its creation and, with particular reference to the platinum

industry; it indicates that significant improvements in operating efficiencies, water and energy

conservation, and mitigation of environmental degradation can be achieved through the

envisaged research programmes.

A potential benefit of this initiative will be the promotion of research activity to create human

capital through enrolment of students in science and engineering studies and thus to generate

researchers and academic teachers with higher degrees to foster this development. A particular

focus of this objective will be the promotion of research activities and the generation of highly

skilled people at historically disadvantaged tertiary institutions. The research programmes will

also attract postgraduate students from other African countries, so that the creation of human

capital will extend beyond South Africa‟s borders and in turn contribute to the economic

development of these countries.

It is envisaged that SAMMRI will commence operations in 2010 with a single pilot project of 1 to 2

years duration aimed at proving the concept. As SAMMRI facilitates the development of research

capabilities in South Africa, the number of research programmes it controls will be extended to an

anticipated maximum of five, with annual budgeted expenditure rising from R500 000 in 2009 – to

get SAMMRI established and to allow full scoping of the pilot project – to R8 million in 2010 and

2011, and to a maximum of R40 million over the next 10 years, as the full anticipated research

effort is implemented. It is expected that the major proportion of the funding will be provided by

Government, with Industry contributing in the form of annual membership fees and sponsorship of

specific projects and programmes to ensure that the research is relevant.

Pilot Project

The aim of the pilot project, for which funding is requested, is to demonstrate the technical

competence of the research providers associated with SAMMRI and their capacity to work

collaboratively, and to deliver quality research outputs on time and within budget.

A pilot (demonstration) project is proposed which aims to carry out an investigation into all

aspects of the processing of UG2 ore. This ore body is one of South Africa‟s most strategic

reserves and this pilot project will highlight those aspects of the processing chain for UG2 ore that

require serious research interventions over the near future. This will ensure that UG2 will be

processed in a manner that is environmentally and economically sustainable and which is able to

ensure that key resources such as energy and water are efficiently utilised.

It is estimated that the pilot project will be of 1–2 years duration and a budget of approximately

R7.7m per annum is proposed. However, a final decision on the duration of the project and the

funding required will only be made once the project has been fully scoped.

SAMMRI : Proposal to the Department of Science and Technology: April 2009 v

Summary and Conclusions

The industry survey has shown that the South African mineral processing industry is facing

serious challenges in the future, both in developing and implementing the technologies needed to

sustain the industry and its significant contribution to the GDP and to human development, and in

developing and retaining the skills needed for this. In many countries around the world, minerals-

related research facilities have closed in recent years, and research capabilities have shrunk in

South Africa as well. The challenge created by this situation also provides an opportunity for

South Africa to leapfrog into a new paradigm in which it recovers and strengthens its global

leadership role in the area of minerals processing.

The creation of SAMMRI as a national research institute, and as a partnership between

Government and Industry, will provide the impetus for developing the research programmes

needed by the industry. It will expand research capacity throughout South Africa by involving

universities, including those regarded as historically disadvantaged, in a national programme

aimed at meeting the challenges to the industry and South Africa, arising from inter alia declining

ore grades, increasing environmental constraints, and water and energy costs and availability. In

addition, SAMMRI, through its research programmes, will develop human capital in the form of

increased numbers of highly skilled people with post-graduate degrees, to take up employment in

industry and in academia, thereby relieving the critical skills shortage that South Africa is currently

experiencing.

A preliminary exercise using the platinum industry as a basis, and using SAMMRI‟s identified

research agenda, indicated that the returns on investment in SAMMRI, arising from improved

processing performance leading to higher revenues, and reduced water and energy consumption

leading to significantly lower operating costs, are substantial. The authors of this proposal trust,

therefore, that it will receive favourable consideration, so that SAMMRI can be established and its

research programme, which is vital to the future technological viability of the mineral processing

industry, and to the creation of human capital, can proceed without delay.

SAMMRI : Proposal to the Department of Science and Technology: April 2009 vi

List of Acronyms

AMD Acid Mine Drainage

BMR Base Metals Refinery

GHG Greenhouse Gas

GMI Global Mining Initiative

GDP Gross Domestic Product

HDI Historically Disadvantaged Individual

ICMM International Council on Mining and Metals

IIED International Institute of Environment and Development

IISD International Institute for Sustainable Development

IP Intellectual Property

METF Minerals Engineering Technology Fund

MIC Metal in Concentrate

MMSD Mining, Minerals and Sustainable Development project

MPRDA Mineral and Petroleum Resources Act 28 of 2002, as amended

PGM Platinum Group Metals

PMR Platinum Metals Refinery

R&D Research and Development

SME Small and Medium Enterprise

TJ Tera Joules (109 J)

A Glossary of Terms has been included at the end of the proposal.

SAMMRI : Proposal to the Department of Science and Technology: April 2009 vii

Acknowledgements

SAMMRI Concept

The original concept for the creation of the South African Minerals to Metals Institute (SAMMRI)

was proposed by Messrs M Halhead and P Charlesworth, formerly of Anglo Platinum

Corporation, and now both retired and working as consultants to Anglo Platinum

Steering Committee

The original SAMMRI conceptual proposal and the preparation of this document has been

directed and guided by the SAMMRI Steering Committee:

J Theron Impala Platinum Limited (Chairman)

A Burger University of Stellenbosch

V Deeplaul BHP Billiton

M du Plessis Exxaro Resources

M du Toit University of Pretoria

P Ngoepe University of Limpopo

C O‟Connor University of Cape Town

R Paul Mintek

F Petersen University of Cape Town

N Plint Anglo Platinum

V Ross Lonmin

R Sandenberg University of Pretoria

Contributors

The following people contributed to the preparation of this proposal document:

J Broadhurst

B Cohen

D Deglon

J-P Franzidis

P Gaylard

M Harris

C O‟Connor

The authors wish to acknowledge the support of the Department of Science and Technology in

preparing this proposal and conducting the review study.

SAMMRI : Proposal to the Department of Science and Technology: April 2009 viii

Table of Contents

Page

Proposal to Department of Science and Technology ....................................................... i

Executive Summary ................................................................................................................... ii

List of Acronyms ......................................................................................................................... vi

Acknowledgements .................................................................................................................. vii

List of Tables ............................................................................................................................... xi

List of Figures ............................................................................................................................. xii

List of Appendices ....................................................................................................................... x

1 Introduction .......................................................................................................................... 1

1.1 Background to the Proposal .................................................................................................. 1

1.2 The Review Study ...................................................................................................................... 1

1.3 Layout and Scope of the Proposal ....................................................................................... 2

2 Review and Analysis of the South African Minerals Beneficiation Sector ....... 3

2.1 Analysis of the Status Quo ...................................................................................................... 3

2.1.1 The Role of the Minerals Industry in South Africa ......................................................................... 3

2.1.2 Minerals Processing Technology and Research .............................................................................. 6

2.1.3 Environmental Performance of the Minerals Sector .................................................................... 9

2.1.4 Human Resources and Skills .................................................................................................................11

2.1.5 Contribution of the Sector to the Broader Society .......................................................................12

2.1.6 Summary: Strengths and Weaknesses of the South African Minerals Industry ...............14

2.2 Opportunities for the Sector .............................................................................................. 17

2.2.1 Technology and Processes .....................................................................................................................17

2.2.2 Resources and the Environment ..........................................................................................................18

2.2.3 Human and Research Capacity .............................................................................................................19

2.2.4 Socio-technical ............................................................................................................................................20

2.3 Summary of the Status Quo ................................................................................................. 20

SAMMRI : Proposal to the Department of Science and Technology: April 2009 ix

3 Vision and Roadmap for Mineral Processing in South Africa ............................ 21

3.1 Introduction ............................................................................................................................. 21

3.2 Vision .......................................................................................................................................... 21

3.3 Roadmap ................................................................................................................................... 22

4 Proposal for the Establishment of SAMMRI.............................................................. 24

4.1 Value Proposition................................................................................................................... 24

4.1.1 The Critical Need for Local Development of World-Class Innovative Research ..............24

4.1.2 SAMMRI’s Guiding Principles ................................................................................................................24

4.1.3 Potential Benefits from SAMMRI’s Research Programme ........................................................25

4.1.4 Promoting a Closer Relationship between Stakeholders ..........................................................28

4.1.5 Growth of the Institute .............................................................................................................................28

4.2 Research Scope and Agenda ............................................................................................... 29

4.2.1 Research Scope ...........................................................................................................................................29

4.2.2 Research Agenda ........................................................................................................................................29

4.3 Operation of SAMMRI ........................................................................................................... 30

4.3.1 Governance ...................................................................................................................................................30

4.3.2 Participants ...................................................................................................................................................32

4.3.3 Research Approach....................................................................................................................................33

4.4 Pilot Study ................................................................................................................................. 34

4.5 Budget and Funding .............................................................................................................. 35

5 References ............................................................................................................................ 38

Appendices .................................................................................................................................. 40

SAMMRI : Proposal to the Department of Science and Technology: April 2009 x

List of Appendices

Appendix A: An Economic Snapshot of the South African Minerals industry – A Focus

on Metal- and Coal-based Subsectors ................................................................................ 40

Appendix B: The Environmental Performance of the South African Mining and Minerals

Industry ......................................................................................................................................... 49

Appendix C: Summary of South African and International Research Activities ......................... 60

Appendix D: Proposal for the Establishment of a Pilot Project ......................................................... 64

Appendix E: The Review Study ...................................................................................................................... 68

E1: Overview of the Review Study ...................................................................................... 68

E2: List of People Interviewed ............................................................................................. 71

E3: Proposal Interview Questionnaire .............................................................................. 73

E4: Outcomes of Interviews (Key Questions) ................................................................. 75

E5: Outcomes of Interviews (Generic) .............................................................................. 93

Glossary of Terms ............................................................................................................................................... 101

SAMMRI : Proposal to the Department of Science and Technology: April 2009 xi

List of Tables

Page

Table 1: Contribution to World’s Mineral Supply: Production and Reserves ................................. 4

Table 2: Direct Contribution by Mining to the National Economy* .................................................... 5

Table 3: Summary of Strengths, Weaknesses and Threats to the Sector ...................................... 15

Table 4: Technology and Process Related Opportunities .................................................................... 17

Table 5: Opportunities Related to Resources and the Environment............................................... 18

Table 6: Research Agenda for the South African Minerals Sector .................................................... 23

Table 7: Indicative Funding Requirements for SAMMRI ..................................................................... 37

Table 8: Sectors and Sub-sectors of the South African Minerals Beneficiation Industry ........ 40

Table 9: Environmental Performance of the South African Minerals Beneficiation

Industry ................................................................................................................................................ 59

Table 10: Commercial and University Based Research Activity in South Africa .......................... 60

Table 11: International Commercial and University Based Research Activity (indicative) ..... 62

Table 12: Budget for the Pilot Project ........................................................................................................... 66

SAMMRI : Proposal to the Department of Science and Technology: April 2009 xii

List of Figures

Page

Figure 1: Proposed Governance Structure .................................................................................................. 32

Figure 2: Funding Model for SAMMRI ........................................................................................................... 36

Figure 3: South Africa's Contribution to Global Production and Reserves..................................... 42

Figure 4: Mineral Production Trends Relative to 1985 ......................................................................... 43

Figure 5: Relative Contributions of Sectors and Mineral Unit Values .............................................. 44

Figure 6: South African Minerals Sector Revenue .................................................................................... 45

Figure 7: Contribution of Mining to National Economy ......................................................................... 46

Figure 8: Contribution of Minerals Sector to National Economy ....................................................... 46

Figure 9: Relative Contribution of Sectors: Mining Employment ...................................................... 47

Figure 10: Comparison of South African and Global Electricity Consumption by Mining

Industry (IIED, 2001) .................................................................................................................... 50

Figure 11: Cause-effect Relationship for Solid Mineral Wastes .......................................................... 51

Figure 12: National Energy Consumption 2006 ........................................................................................ 52

Figure 13: National Electricity Consumption ............................................................................................. 53

Figure 14: National Coal Consumption 2006 .............................................................................................. 53

Figure 15: Energy Consumption Trends 1990–2006 .............................................................................. 53

Figure 16: Relative Contributions to National Energy Consumption ................................................ 54

Figure 17: Solid Waste produced by the South African Minerals Beneficiation Industry ......... 54

Figure 18: Water Consumption by the South African Minerals Beneficiation Industry ............ 55

Figure 19: Electricity Consumption in the South African Minerals Beneficiation Industry ..... 55

Figure 20: Carbon Dioxide Emissions by the South African Minerals Beneficiation

Industry ............................................................................................................................................... 56

Figure 21: SOx Emissions by the South African Minerals Beneficiation Industry ........................ 56

Figure 22: Resource and Waste Intensity for the South African Minerals Beneficiation

Industry ............................................................................................................................................... 57

Figure 23: Eco-efficiency – Solid Waste Output ......................................................................................... 58

Figure 24: Eco-efficiency – Water Usage ...................................................................................................... 58

Figure 25: Eco-efficiency – Electricity Consumption ............................................................................... 58

SAMMRI : Proposal to the Department of Science and Technology: April 2009 1

1 Introduction

1.1 Background to the Proposal

This document presents a proposal for the establishment of a national research institute that will

focus on developing high-level skills and world-class technology for the minerals processing and

extraction sector in South Africa. This combination of skills and technology is critical to ensuring

the long-term techno-economic sustainability of the sector, while giving due consideration to

minimising the impact on the natural environment and maximising the positive contribution of the

sector to the macro-economy, particularly as it relates to job creation and contribution to GDP.

The proposed institute, provisionally named „The South African Minerals to Metals Research

Institute‟ (SAMMRI), will operate as a „virtual‟ research institute, thus providing an effective

platform for collaborative research across universities, other research institutions and the private

sector.

A concept proposal for the institute was developed by a group of representatives of the major

South African mining companies and key research providers from universities and science

councils during 2008. This proposal was presented to representatives of the Department of

Science and Technology who supported the concept of SAMMRI, but suggested that more

substantive information was required to support the proposal. In particular, a comprehensive

review of the status of the South African mineral processing industry was recommended to fully

inform the final proposal for long-term funding for SAMMRI.

The Department of Science and Technology provided seed funding for a review study, on which

this document is based, as well as for the preparation of this proposal for the establishment of

SAMMRI, which includes a proposal for the establishment of a pilot project. The aim of the pilot

project is to address one of the critical research needs identified during the review study and to

serve as a demonstration project for future SAMMRI projects. The pilot study is to be co-funded

by government and industry

This document presents the final proposal for the establishment of SAMMRI and for the pilot

project. The document also presents the approach to and outcomes of the review study.

1.2 The Review Study

The review study was conducted through a series of intensive interviews with a wide range of

senior technical people in the minerals beneficiation sector, as well as active research providers

to the sector at the universities and science councils, both in South Africa and internationally,

between January and April 2009. Interviews were also conducted with representatives of the

Department of Science and Technology1.

1 To improve readability of this proposal, much of the detail of the review study has been included in the Appendixes. A

full description of the review study is presented in Appendix E1. The contact details of the interviewees can be found in

Appendix E2. A copy of the interview questionnaire is presented as Appendix E3, responses to the SWOT

questionnaire as Appendix E4 and all other responses as Appendix E5.


The overall aim of the study was to obtain the views of the interviewees on:

the status of the South African minerals beneficiation sector

the strengths, weaknesses, opportunities and threats to the sector

a vision for the sector

key R&D requirements

the potential role for a research institute such as SAMMRI.

The outcomes of the interviews, coupled with background literature research on the sector, were

used to inform the shape of this current proposal, particularly the strategic direction for SAMMRI

and the key research priorities for such a research institute.

1.3 Layout and Scope of the Proposal

The proposal is structured as follows:

Section 2 presents a review and analysis of the status quo of the South African minerals

beneficiation sector, based on both a review of background literature data and the

outcomes of the review study. It also presents an analysis of opportunities for the sector.

Section 3 presents a roadmap for the sector, with a particular focus on the research

agenda, based on the status quo analysis and the opportunities for the sector stretching

into the future.

Section 4 presents the motivation for SAMMRI, shaped by a combination of an

understanding of the status quo and opportunities for the sector, along with the roadmap.

This section also covers the value proposition for SAMMRI and its proposed modus

operandi, and a proposal for the pilot project, together with a provisional budget summary

for the next 10 years and a funding model.

The scope of the proposal, and hence that of the research agenda for SAMMRI, is limited to that

of the entire primary beneficiation chain, from the mined ore body to the final refined saleable

metal or mineral. The scope thus excludes related activities upstream and downstream of this

chain, such as mining and geological exploration upstream and the downstream processing of

metals to form products via manufacturing, except as they relate to the broader socio-economic

impacts of the sector. The proposers appreciate, however, that this position may need further

discussion.


2 Review and Analysis of the South African Minerals

Beneficiation Sector

In order to set the context for the SAMMRI proposal, section 2.1 sets out the status quo of the

sector, including perceived strengths, weaknesses and threats and section 2.2 sets out the

opportunities for the sector.

2.1 Analysis of the Status Quo

This section explores the current state of the minerals beneficiation sector in the South Africa in

relation to:

the role of the minerals industry in South Africa

processes currently used in minerals beneficiation

environmental performance of the sector

human resources and skills

contribution to the broader society

the state of minerals beneficiation research.

The section concludes with a summary of the strengths and weaknesses, and current threats to

the sector.

2.1.1 The Role of the Minerals Industry in South Africa

The minerals industry contributes significantly to the world economy, the wealth of many

individual nations and the livelihood of numerous communities. This section of the report

highlights the important socio-economic contribution made by the South African minerals industry,

on both a national and a global level. A more detailed overview and analysis of historical and

current trends is provided in Appendix A.

Although metals and minerals is a relatively small sector of today‟s vast world economy, its

contribution to modern living remains substantial, with the primary resource sector providing

essential inputs for virtually all sectors of the economy. As shown in Table 1, South Africa

features prominently in terms of the world‟s reserves of a number of mineral commodities

particularly the platinum group metals (PGMs), manganese, chromium, vanadium, gold, titanium,

zirconium, and, to a lesser extent, coal and uranium. While South Africa‟s contribution to the

world‟s mineral supply has diminished significantly over the past decade (1997–2007), the

country remains a leading producer of PGMs, chromite ore, ferrochromium and vanadium, and is

among the top three producers of gold, manganese ore and heavy mineral sands.


Table 1: Contribution to World’s Mineral Supply: Production and Reserves

(DME, 2006 & 2008)

Sub-sector Reference

unit

2007 Production 2007 Reserves

SA

(kt/a)

SA

Contribution

(%)

World

Ranking

SA

(Mt)

SA

Contribution

(%)

World

Ranking

Primary Commodities

Precious

metals

Gold metal 0.25 10.3 2 0.04 40.4 1

PGMs metal 0.30 56.7 1 0.07 87.7 1

Silver metal 0.07 0.35 17

Non-

Ferrous

Copper mic & metal 113 0.73 17 13 1.4 14

Zinc mic 31.4 0.28 25 15 3.3 8

Lead mic 42 1.2 11 3 2.1 7

Nickel metal 42 2.6 9 12 8.8 5

Cobalt metal 0.4 0.58 15 0.12

Antimony mic & metal 3.4 2.5 7 0.2 4.7 4

Ferrous

ores

Chromite ore 9683 41.9 5500 72.4 1

Manganese ore 5589 14.6 2 4000 80.0 1

Iron ore 41300 2.5 7 1500 0.93 9

Mineral

sands

Titanium TiO2 1181 19.5 2 244 16.7 2

Zirconium ZrO2 405 32.7 2 14 19.4 2

Energy Coal 247700 3.6 6 27981 6.5 8

Uranium 0.64 1.6 11 0.3 10.0 5

Processed Commodities

Ferro-

alloys

Chromium alloy 2972 54.5 1

Manganese alloy 634 6.0 4

Silicon alloy/ metal 181 2.8 7

Vanadium metal 23.5 39.8 1 12 31.6 1

Aluminium metal 914 2.4 9

As in the case of most countries endowed with abundant natural resources, South Africa has

relied immensely on its primary minerals sector as a source of wealth and economic growth in the

past, and continues to do so today (Table 2).


Table 2: Direct Contribution by Mining to the National Economy

(DME 2006 & 2008)

Year Gross Value Added

Fixed Capital

Formation Export Sales

Direct

Employment

R (billion) % R (billion) % R (billion) % No (000’s) %

1994 32.1 7.3 6.6 9.0 42.8 45.8 611 4.5

1995 34.8 7.0 7.4 8.5 44/1 40.5 598 4.3

1996 38.8 6.9 8.0 8.0 50.7 38.9 569 4.1

1997 40.5 6.5 9.7 8.5 51.7 36.0 553 3.8

1998 43.4 6.4 11.2 8.7 55.3 34.4 467 3.4

1999 47.9 6.6 11.6 9.2 58.3 33.3 437 3.0

2000 59.1 7.3 13.8 9.9 76.3 34.9 418 2.6

2001 66 8 7.5 15.9 10.3 89.9 34.3 407 2.7

2002 79.0 7.7 19.8 11.3 109.4 33.2 417 2.6

2003 78.5 7.1 21.7 10.8 86.8 29.8 434 2.7

2004 89.3 7.1 14.2 8.0 89.7 28.9 449 2.9

2005 103.0 7.3 12.4 6.4 102.5 29.3 444 2.6

2006 119.4 7.7 26.3 8.1 138.9 31.9 456 2.7

2007 135.5 7.7 36.6 8.9 161.8 30.2 495 2.9

Includes diamond & industrial minerals but excludes processed minerals (ferro-alloys, refined

aluminium & zinc)

In addition to its direct contribution, mining also has an indirect multiplier effect on gross domestic

product (GDP), giving rise to a “real” contribution by mining to GDP of between 15 and 20%

(Chamber of Mines, 2007). Significant multiplier effects include goods and services provided to

the industry; value added beneficiation of mining outputs; and induced effects through export

earnings, consumption multipliers and additional earnings of employees in related sectors. Apart

from the more than 1 million people employed within the mining sector and supporting industries,

each mineworker is reported to support between 7 and 10 dependants (Chamber of Mines, 2007).

This brings the estimated number of people relying (either directly or indirectly) on the South

African minerals industry for their daily subsistence to between 7 and 10 million.

In terms of generated revenue, South Africa‟s mineral industry remains primarily export driven,

with respectively 72% and 76% of primary and processed mineral sales destined for world

markets (in 101 countries) in 2007. Commodity prices and export revenue are thus largely

dictated by global supply/demand trends, with fluctuations (both booms and slumps) in such

having significant implications for the performance of the industry (in terms of profits as well as

safety and environmental practices) and the socio-economic well-being of the country as a whole.

The last quarter century (1985–2007) has seen a substantial shift in the relative contributions of

the various sub-sectors in terms of direct employment and export revenue, with the contribution of

the gold industry, in particular, decreasing significantly. Despite the increase in the contribution of

processed mineral products over the same period, the South African minerals industry remains

dominated by the “big three”, platinum group metals, coal and gold.


2.1.2 Minerals Processing Technology and Research

The minerals industry has always been technology driven and has driven the technological and

economic development of industrialised countries all over the world. Expansion of the minerals

industry has always been accompanied by industrial growth to provide the capital equipment,

consumables and raw materials needed to support the industry. The industry has been amongst

the pioneer developers and early adopters of key platform technologies in physical and chemical

separation, analytical chemistry, process control and modelling and simulation (Williams, 2003).

The decline in the real price of metals in the past few decades is testament to the steady

advances in technology for extracting metals from ever-poorer ore bodies.

These advances in technology, required to make the industry profitable and competitive

internationally, have come about through the establishment by the minerals industry of its own

research organisations, supported by government-funded research institutes and university-

based research. The value proposition of SAMMRI needs to be considered in the context of

current minerals beneficiation research both in South Africa and globally. This section presents a

brief history of minerals beneficiation research and presents an indication of the level of research

activity in South Africa and around the world.

Technology and processes

As identified in Section 2.1.1, South Africa is the world‟s largest producer of platinum group

metals, chromite, ferrochromium and vanadium and is among the top three producers of gold,

manganese, titanium minerals and zircon. In the precious metals field, South Africa also has the

world‟s largest gold refinery and the largest and second-largest platinum refineries. The key

technologies and processes used in these operations and in those in which South Africa is a

major player, although not a leading producer, are the following:

Platinum Group Metals: Milling, flotation, tailings disposal, smelting and sulfuric acid

production, hydrometallurgical refining, including leaching, electrowinning, pressure

reduction, solvent extraction and ion exchange

Chromite and Ferrochromium: Milling, dense media separation, gravity separation,

tailings disposal, and smelting

Vanadium: Milling, magnetic separation, roasting, smelting, leaching, tailings disposal

Gold: Milling, flotation, gravity concentration, leaching, ion exchange/adsorption,

electrowinning, cementation, amalgamation, smelting, and tailings disposal

Manganese: Milling, dense media separation, gravity separation, tailings disposal,

leaching, electrowinning and smelting

Titanium Minerals and Zirconium: Milling, gravity separation, electrostatic and magnetic

separation, gravimetric separation, tailings disposal, leaching and smelting

Coal: Screening, dense media separation, gravity separation, flotation

Base metals: Milling, flotation, magnetic separation, smelting, tailings disposal

Iron: Milling, gravity separation, sintering, smelting, tailings disposal


As can be seen, the extraction and production of most leading minerals and metals use different

combinations of the same generic metallurgical extraction and refining processes and

technologies. The same can be said for other minerals industry sectors in which South Africa is a

significant player, such as the production of iron ore, coal, and aluminium from imported alumina.

What is concerning, however, is that nearly all of the processes listed above can be regarded

today as employing mature technologies, developed over many years of industry practice and

research conducted around the world. Recent technological advances have been relatively rare,

but include the use of plasma smelting in the ferrochrome industry and the development and

successful commissioning of the Anglo Platinum Converter Process (ACP) in which Ausmelt

smelting technology was successfully applied to the converting process, resulting in improved

process efficiencies and a significant improvement in gas emissions from Anglo Platinum‟s

Waterval Smelter.

Brief history of minerals beneficiation research in the twentieth century

The first 75 years of the twentieth century saw enormous advances in mineral processing and

metallurgical extraction technology internationally. Flotation was first used for upgrading sulfide

ores in the first decade. The gold mining industry in South Africa, in particular, was rescued from

a widely anticipated premature demise by the development of the McArthur-Forrest cyanidation

process. In the late 1950s and early 1960s, run-of-mine milling of ore was pioneered in several of

South Africa‟s gold mines that were opened at that time, leading to significant improvements in

processing efficiencies and operating costs. Solvent extraction processing technology, developed

in South Africa in the 1960s, contributed to a surge in South African uranium production and, as a

spin-off, similar technology was subsequently incorporated into refining processes for the

platinum group metals.

Elsewhere in the world, smelting technologies such as the Imperial Zinc Smelting Process and

the flash furnace have led to improved process efficiencies, making previously uneconomic ore

bodies economically viable, and again generating technological spin-offs, which have been

successfully applied in operations in South Africa and its neighbouring countries. These advances

in processing technology were achieved through significant research programmes, in most cases

funded by the mining industry. In South Africa, this was particularly true in the case of the gold

mining industry, which sponsored the development of the uranium processing technology and

provided the support base for the establishment of the first platinum metals refinery in South

Africa in 1969. At the beginning of the 1970s, there were seven process laboratories operated by

the gold mining houses in and near Johannesburg, as well as the Chamber of Mines research

laboratory. In addition to this, the South African government supported minerals industry research

at Mintek and an active metallurgical research section at the CSIR. Coal research was carried out

at ISCOR and at the national Fuel Research Institute in Pretoria. Similar research activities were

replicated in all of the major mining countries around the world, including Australia, Brazil, Britain,

Canada, France, Germany and the USA.

Unfortunately, by the end of 2008, all but one of the mining house research laboratories in South

Africa had been closed; the Chamber of Mines Research Organisation was taken over by the

CSIR and it too closed down during the last few years. Similar closures of in-company research


facilities have occurred in other countries around the world with strong mining economies. In

Australia, for example, one major mining company closed its main research centre during the

second half of 2008, while at least two company-owned research facilities in Canada have closed

over the past six years. These recent closures have occurred in spite of the fact that the minerals

industry benefitted from an unprecedented „supercycle‟ between 2000 and 2008, and in the face

of increasing pressure on the industry to extract metals and minerals from progressively lower

grade ore bodies, with rising costs and increasingly severe environmental constraints.

The decline in industry-based R&D has been mirrored in academia. Many university departments

and institutes with a long and substantial history in minerals research have either closed or

changed focus. In some countries, most notably those in Europe, this has been a natural

consequence of a decline in mining activity. However, it has also occurred in countries with strong

mining economies. This has mainly been ascribed to a poor image of the industry held by many

school-leavers, who consider mining to be dirty, unsophisticated and mostly an industry of the

past. Universities have responded by adapting their activities to meet this perception.

What remains, both locally and internationally, are widely scattered pockets of activity and

expertise. If such activity as exists is to be effective in the future, collaboration and coordination of

research activities will become of growing importance to meet the future needs of the industry

(Batterham, 2003).

By way of example, the P9 project, conducted through the agency of AMIRA International, has

been a substantial and growing research enterprise since its inception in 1961. With its focus on

the optimisation of milling and flotation, this project is currently supported by most of the world‟s

major mining companies and mining supplier companies, including major South African-based

companies such as Anglo American, Anglo Platinum, Anglogold Ashanti, Impala and Lonmin. The

growth and level of support of this project can be ascribed to its use of a collaborative network of

research providers:

The Julius Kruttschnitt Mineral Research Centre (JKMRC) at the University of Queensland

(the main provider, since 1961)

The University of Cape Town, South Africa (since 1996)

McGill University, Canada (Since 2000)

The University of Newcastle, Australia (since 2008)

Hacettepe University, Turkey (since 2008)

Universidade Federal do Rio de Janeiro, Brazil (since 2009)

The strong South African support of this project has seen the South African sponsors enjoy

substantial additional leverage through the support of the THRIP programme.


Research activity in South Africa and internationally

With its strong mineral-based economy, South Africa would be expected have significant research

activity in minerals beneficiation. Although two major mining houses have active research facilities

and a number of universities are engaged in mineral beneficiation research, there is currently

insufficient activity in this field. Appendix C outlines the commercial organisations and universities

in South Africa that are actively conducting research in this field.

A number of the major global mining companies have in-house research laboratories. There are

also a number of science councils and universities that conduct minerals beneficiation related

research. With respect to the latter, over the last two decades there has been a trend of declining

interest in mining-related research at universities in the northern hemisphere and many of the

formerly renowned mining schools have shrunk in size or have closed down. Appendix C also

presents an indicative list of international research activity.

2.1.3 Environmental Performance of the Minerals Sector

The primary metal production and coal-based power generation industries both make a significant

contribution to the country's economy and are essential to modern living. However, the operations

associated with this industry sector also pose a threat to our natural capital, and consequently the

well-being and livelihood of local communities. Historically, the environmental legacy left by the

mining and minerals industries has not been a happy one, with a vast number of abandoned mine

sites and waste dumps – and the associated acid mine drainage (AMD) problems – providing just

some evidence of poor environmental practices in the past.

The establishment of the Global Mining Initiative (GMI) in 1998 heralded a significant change in

the industry‟s response to pressures to improve its environmental performance within the context

of cleaner production and sustainable development. This change is evidenced by the growing

number of industry-driven projects (e.g. the Mining, Minerals and Sustainable Development

project, MMSD, from 2000–2002); guidelines (e.g. the good practice guidance documents by the

International Council on Mining and Metals, ICMM); and voluntary codes (e.g. the international

cyanide management codes). These global initiatives by industry-led organisations have, in turn,

set the standards for national government organisations and mining companies, most of whom

have made major strides in both identifying and addressing the environmental challenges peculiar

to the industry. These challenges include:

Power consumption and greenhouse gas emissions

The minerals industry is energy-intensive, and associated GHG emissions can be attributed

largely to the on-site combustion of fossil fuels and the consumption of purchased (and fossil fuel-

based) electricity. In 2006, the South African mining and metals production industries collectively

accounted for over 20% (equivalent to 562 514 TJ) of the country's total energy consumption.

Consumption and degradation of natural water sources

Although the mining industry uses less than 10% of South Africa‟s water (compared to agriculture,

which uses more than 50%), the future availability of water of adequate quality poses a serious


threat to the minerals industry in terms of its ability to operate (or expand existing operations) in

certain areas. Apart from water consumption, mining and minerals beneficiation operations also

frequently result in extensive contamination of local water sources, mainly due to storm water run-

off and seepage from surface waste deposits, open pits and underground workings. The

Chamber of Mines of South Africa (2007) has identified prolonged pollution, such as acid mine

drainage (AMD) from previous and abandoned mining operations (particularly coal), as one of the

most serious challenges facing the country in respect of water.

Generation and disposal of solid wastes

The minerals industry is characterised by large tonnages of solid waste, particularly in the early

beneficiation stages (extraction and concentration), most of which is consigned to land disposal.

In 2005, the mining and mineral processing industry in South Africa was responsible for 90% of

solid waste production in South Africa (von Blottnitz, 2005). Historical practices have left a legacy

of abandoned and unrestored mining waste disposal sites, and it is now widely recognised that

such sites are frequently sources of prolonged environmental degradation and pollution, through

the continuous generation of contaminated leachate or spontaneous combustion. These waste

deposits also represent a loss of potentially valuable mineral resources. Today, the reworking and

extraction of economic minerals from defunct slimes dams and mine sand dumps makes an

important contribution towards PGMs and, in particular, gold production in the country.

Resource efficiency

Rising global consumption and demand for primary resources, combined with the declining quality

of ore bodies, has placed increasing importance on the efficient recovery of economically

valuable minerals and metals from ore deposits.

Whilst historically the minerals industry has processed high grade, easy-to-treat ore bodies, the

availability of high quality ores is steadily declining and mining companies are increasingly being

forced to treat more complex and finely disseminated ore bodies. This has had a significant

impact on metal recovery (process) efficiencies and, in the absence of major technological

development; losses of targeted minerals as well as economically valuable trace and minor co-

constituents are expected to compound in coming decades. Apart from diminished recoveries of

minerals, a decline in ore grades has also been shown to have an adverse effect on the

environmental performance of current beneficiation processes, resulting in higher water and

energy requirements, greenhouse and other gaseous emissions, as well as the volumes and

hazardous nature of solid waste outputs (Giurco, 2005; Norgate and Rankin, 2002; Mudd, 2007).

The results of a sector-based analysis of the environmental performance of the local minerals

beneficiation industry emphasise the relatively high environmental intensity and low eco-efficiency

of the low-grade (albeit high-value) gold and PGM sub-sectors, particularly in terms of water

utilisation and solid waste generation. In terms of electricity consumption, however, it is the high

temperature processes (including aluminium and zinc refining, ferro-alloys production and

ilmenite smelting) that are the most inefficient, and which accounted for the majority of electricity

consumption by the minerals beneficiation industry in 1999.


A more detailed discussion of the issues of key environmental relevance to the minerals

beneficiation industry is presented in Appendix B.

2.1.4 Human Resources and Skills

The status quo with respect to human resources and skills was ascertained primarily through the

review study. When conducting the „SWOT‟ analysis of the responses, it was noted that

participants were not specifically asked to comment on skills needs in their industry. However, it

became very clear during the early stages of the interview process that skills are a major issue in

both the South African and the global mining industry. Indeed, the majority of participants

expressed the view that addressing this critical skills need would be the most important outcome

of an initiative such as SAMMRI. The key strengths, weaknesses and threats are outlined below

and comments on the state of educational institutions as derived from the interviews are included

in Appendix E5.

Strengths

The major strength identified was the existence of „pockets‟ of very high-level technical expertise

in companies, at educational institutions and in science councils. Here, it was noted that South

Africa still has strong technical skills in mineral processing and is a world leader in certain niche

areas, such as PGMs. In addition, it was felt that South Africa‟s long mining history had created a

generally favourable view of mining that helped to attract and retain skills in this industry.

Weaknesses

Skills were generally considered a major issue in the South African mineral processing industry,

across the full spectrum of technical disciplines, including plant operators, artisans, engineers,

managers and technical specialists such as researchers. High-level technical expertise was

suggested to lie in the hands of a few key individuals, many of whom were approaching

retirement, in companies, at educational institutions and in science councils. The shortage of

technical skills was perceived to have been exacerbated by high levels of emigration to mining

countries such as Australia and Canada. Certain technical areas such as pyrometallurgy have

been particularly badly affected in recent years.

Skills and practice in research and development were seen to be compounding this problem.

Educational institutions were viewed as conducting very little or no R&D in mineral processing.

Many educational institutions were observed to have a mix of young and retired or near-retired

academics, often with excessively high teaching loads and a consequent low capacity for R&D.

Poor coordination between research institutions, as well as between industry and academia, was

seen to compound this issue.

With respect to new skills development, both graduate success rates and graduate quality were

seen to be a weakness at many educational institutions, with graduates from certain institutions

being considered virtually unemployable due to their lack of technical skills. Furthermore,

although other institutions are qualifying high-quality graduates, many of these either have little

interest in working in mineral processing or in an operational environment, and if they do work in

the industry they leave within the first few years of service.


Threats

The threats to skills were generally related to the weaknesses identified previously. Major threats

included a continued loss of technical expertise, a decline in the quality of both graduates and

academic staff at educational institutions, as well as difficulties in attracting top students due to

steady erosion of the favourable image of mining in South Africa. More detailed comments are

included in Appendix E5.

2.1.5 Contribution of the Sector to the Broader Society

As identified previously in the discussion of the economic contribution of the sector, the minerals

sector is a significant source of employment and income in South Africa. It was highlighted that,

apart from the more than 1 million people employed within the mining sector and supporting

industries, each mineworker is reported to support between 7 and 10 dependants (Chamber of

Mines, 2007). The estimated number of people relying (either directly or indirectly) on the South

African minerals industry for their daily subsistence is thus between 7 and 10 million.

Apart from job creation, the government recognises that the South African minerals industry also

has a prominent role to play in socio-economic upliftment and transformation within the country.

This is reflected by a number of broad-based regulatory changes since the birth of democracy in

South Africa in 1994. In particular, the Minerals and Petroleum Resources Development Act of

2002 (MPRDA) and the Broad-based Socio-economic Development Empowerment Charter for

the South African Mining Industry (the Mining Charter) have been specifically developed to

ensure that mining houses contribute to the socio-economic development of the areas in which

they operate. The intent and objectives of the MPRDA and associated charter are presented in

more detail below (Chamber of Mines, 2005).


The sector and transformation

The introduction of these regulations has been a powerful force for change in the industry, with

most South African mining houses having integrated the Mining Charter roadmap into their social

and labour plans to at least some extent. In accordance with the Chamber of Mines (2005),

industry spending on social issues increased by an average of 27% between 2000 and 2005, with

the total annual expenditure on social development exceeding R400 million (in 2005). In

particular, individual mining operations contribute extensively to initiatives directed at rural

development (e.g. improvement or acquiring of breeding stock and the modernisation and

improvement of farming methods), and the provision of healthcare facilities and low-cost housing

in remote areas. The minerals industry is also actively involved in employment equity and Black

Economic Empowerment (BEE). More than R3 billion is spent annually by the sector in

procurement from historically disadvantaged South Africans or HDSA-influenced providers

(Chamber of Mines, 2005), and a number of prominent black economic empowerment deals

OBJECTIVES AND INTENTIONS OF THE MPRDA AND ASSOCIATED CHARTER

The core objectives of the Mineral and Petroleum Resources Development Act (MPRDA) are to:

recognise that mineral resources are the common heritage of all South Africans and collectively

belong to all the peoples of South Africa

ensure that a proactive social plan is implemented in all mining companies

attract foreign direct investment

ensure a vigorous beneficiation drive in the mining industry

contribute to rural development and the support of communities surrounding mining operations

redress the results of past racial discrimination and ensure that historically disadvantaged

persons participate meaningfully in the mining industry

guarantee security of tenure to existing prospecting and mining operations

The Mining Charter objectives encompass broader issues, including addressing:

transformation of the minerals and mining industry

promotion of equitable access to South African mineral resources

promotion of investment in exploration and mining with its spin-offs

Other intentions have been guided by the State‟s constitutional obligations, which are to:

promote equity

advance persons or categories of persons, disadvantaged by past discrimination

promote reforms to bring about equitable access to South African natural resources, including

minerals

The objectives of the social and labour plans required by the MPRDA are to:

promote employment, advance the social and economic welfare of all South Africans

contribute to the transformation of the mining industry and the socio-economic development of the

operating areas of the mines


(involving organisations such as Anglo American, De Beers, Gold Fields, Harmony, African

Rainbow Minerals, Lonmin, Sasol, Ingwe, the Richards Bay Coal Terminal and Kumba

Resources) have been concluded since the turn of the century.

2.1.6 Summary: Strengths and Weaknesses of the South African Minerals

Beneficiation Industry

A complete SWOT analysis of the South African minerals beneficiation industry, developed from

the interviewees‟ responses to the questionnaire is presented in Appendix E. A summary of the

strengths, weaknesses and threats to the minerals sector in South Africa, based on the

information outlined above and a synthesis of the interviews, is presented in Table 3 below.

For the purpose of analysis, the considerations were divided into the following categories:

Technology and processes – the physical plant equipment required for converting mined

material into product.

Resources and the environment – the natural resource base underpinning the industry.

Human and research capacity – the people and knowledge who support the industry

The broader socio-technical sphere – including macro-economic and legislative impacts

on the sector, and impacts of the sector on broader society and the economy.

On certain aspects, the views appear to conflict – for example, relating to the state of

advancement of certain technologies, the condition of plants and management considerations.

These conflicts are attributed to both the industry/company in which the respondent works and

personal viewpoints.


Table 3: Summary of Strengths, Weaknesses and Threats to the Sector

Strengths Weaknesses and threats

Technology &

Processes Advanced in fine grinding, deep

level mining, mineralogy,

chemistry, hydrometallurgy,

mineral processing, platinum

refining, microwave processing

Competitive on cost compared to

other countries

Strong fundamental research

(energy efficiency)

Some plants in good physical

condition

Strong management with

technical focus

Good understanding of

benchmarking

Willingness to use new

technologies

Ability to adapt to change and

innovative processes (change,

develop and improve)

Weak in technologies (pyrometallurgy,

bioleaching, hydrometallurgy)

Poor technology transfer and succession

planning

Low levels of innovation and few advances in

technologies

Poor cost control and strong focus on

shareholder return

Many plants are old with unreliable

equipment

Poor management particularly at plant level

Management overconfidence

Poor safety record

Tendency of industry to work in „silos‟

Slow to adopt “non-mainstream” and

emerging technologies

Poor extraction efficiencies

High costs of mining

Resources &

environment Good resource base

Shallow ore reserves & long life of

mine

Cheap electricity (although this is

changing)

Shortages and sub-optimal use of energy

and water

Costs and impacts of energy consumption

Vulnerability to carbon taxes

Costs of steel and labour

Need to consider life cycle impacts and post

consumer fate of products

Ore bodies are getting more difficult to

process & more resource intensive

Pressure on industry to take action on the

environment

Legislative compliance and waste

management (i.e. reactive) approach to

environmental performance on an operational

level

Inability to guarantee a post-closure “walk-

away” status

Continuing pollution of local water resources

Human &

research

capacity

High quality engineering schools

Strong mineral expertise in South

Africa

High quality mineral R & D at a

few key research institutions

Strong technical skills in certain

Shortage of experienced lecturers

Poor training and low graduation levels

especially at Universities of Technology

Industry image as „dirty‟ discourages careers

Limited R & D capability and activity apart

from a few institutions


Strengths Weaknesses and threats

areas (eg smelters in PGM, PMR,

concentrators, BMR and

processing South African coal)

Poor interaction between industry,

universities and other research institutions

Low levels of innovation and

entrepreneurship

Expertise in the hands of a few individuals

Skills shortage in many technical areas due

to low graduation rates, poor technology

transfer, loss of graduates from the industry

Unstable work force

Poor retention of senior mining executives

Cuts in research funding

Outsourcing of R&D internationally

Lack of research coordination (tendency to

work in silos)

Lack of SA roadmap for mineral industry-

related research

No longer attracting cream of undergraduates

to bursary schemes

Socio-

technical Good infrastructure (power, rail,

roads, banks)

Minerals industry is fundamental

to the economy

Long history

Government support

Strong industry capability and

„can do‟ attitude

SMEs supported by industry

Significant contribution to

employment and social upliftment

Impact of government policies and legislation

(such as BEE requirements, mineral rights,

new royalties bill and safety, environment

and water compliance requirements)

Increasingly stringent and expensive

environmental legislation and moving targets

(e.g. REACH, Kyoto)

Focus on primary metals production rather

than finished products, and lack of

government incentives to produce finished

products

Long transport distances for both products

and raw materials

Size of domestic consumption market

Cost of- and access to- capital

High number of minerals dependent on the

steel industry

Dependence on coal

Strong link between job losses in the sector

and social problems, particularly in light of

economic downturn

Poor public perception of the sector

Resource wars

Lack of industry action

Over supply of certain metals, cost pressures

Global economic crisis


2.2 Opportunities for the Sector

The previous section presents a status quo analysis of the minerals sector and a summary of the

strengths and weaknesses of and threats to the sector, developed out of both a review of

background information and the perspectives of interviewees.

A host of opportunities present themselves to build on the strengths of the industry, and to

overcome the weaknesses and threats, and in so doing drive the industry towards a more

profitable, socially accountable and environmentally sustainable future. These opportunities have

driven the formulation of the SAMMRI research agenda discussed later in these documents. The

opportunities are considered under the same groupings used to explore the strengths,

weaknesses and threats.

2.2.1 Technology and Processes

Technology and process related opportunities can be grouped as process improvements and step

changes in technology as shown in Table 4.

Table 4: Technology and Process Related Opportunities

Opportunity Examples

Process improvements on

existing unit processes to

increase efficiency and

decrease costs

Improved process control, stabilisation of existing processes

improving efficiency of concentrators, operating at reduced furnace

temperatures, better control of conversion, improved milling

efficiencies

Mine-to-product

optimisation

Improved understanding of how process modifications (processing

technologies and processing conditions) at one point in the

processing train impact on recovery, energy and water

consumption and waste production elsewhere in the train

Step changes in

technologies

Alternatives to milling, concentration/flotation, replacing

pyrometallurgical with hydrometallurgical processes, process

intensification

Exploitation of new ores Development and optimisation of processing trains for low-grade

and complex ore bodies

Process improvements and

new process developments

to reduce environmental

impacts of the sector

Discussed further in 2.2.2

Appendix E contains a comprehensive list of the various company and resource specific

challenges and opportunities identified by the interviewees – many of which will ultimately be

addressed by the SAMMRI research agenda.


2.2.2 Resources and the Environment

Increasing public awareness of the need to protect our natural capital and the upsurge in global

communications is placing additional pressure on the mining and mineral processing industry to

show that environmental reporting is not just window dressing. The industry must actively

demonstrate that its operations are not going to have a negative impact on the local environment

and communities in the long-term. This is in the face of declining ore grades; mineral deposits

that are becoming increasingly difficult to access and process; and continuously evolving

legislative standards and environmental performance targets.

This section outlines potential opportunities for addressing the environmental issues and threats

discussed in Section 2.1.3.

Table 5: Opportunities Related to Resources and the Environment

Opportunity Description

Maximising

Resource

Efficiency

Creating additional value from by-product recovery

Improving recoveries of economically valuable minerals and metals from low-

grade, finely disseminated ore bodies – including those reserves that are

currently considered to be too difficult or prohibitively expensive to develop.

Recovery of valuable constituents from existing mine waste dumps,

particularly tailings and waste rock deposits from historical operations

Identifying/developing niche markets for scarce to minor elements which co-

exist with targeted metals within ore deposits.

Minimising Water

consumption and

degradation

Application of dry or less water-intensive technologies and/or processing

options. This is of particular relevance to water-intensive operations such as

flotation, flocculation, and agglomeration. Water consumption and quality can

also be of significance in gravity and magnetic separations, as well as in

grinding, classification, thickening and filtration.

Minimising water consumption through more effective re-use, reclamation and

recycling. This will require that industry pay increasing attention to the

development and application of emerging and novel processes for the

removal and recovery of salts and trace metals from effluents and plant

wastewaters.

Reducing the dependency of process operations on high quality water,

thereby reducing water treatment requirements and/or consumption of

potable water.

Reducing dissipative water loss (evaporation, entrainment and seepage)

through the generation and transport of higher density or past tailings.

Minimising Solid

waste generation

and impacts

Reducing the volume and/or hazardous nature of solid wastes through the

pre-disposal separation of potentially harmful and benign gangue

components.

Exploring down-stream uses and applications of wastes (for example in the

construction industry).

Upstream removal and recovery of potentially valuable and/or harmful

constituents from ore bodies i.e. during early-stage beneficiation.


Opportunity Description

Minimising the

direct and indirect

GHG emissions

Developing and implementing less energy-intensive processing technologies

and utilities. This is of particular relevance to energy-intensive processing

operations such as comminution, physical separation, electro-winning and

smelting. Examples of more energy-efficient technologies include dry slag

granulation, strip casting of steel, milling using high pressure grinding rolls.

Replacing fossil-based with renewable energy sources e.g. solar-generated

electricity, replacing coal-based furnace reductants with biomass charcoal.

Improved heat recovery from both high (smelting) and moderate

(electrowinning) temperature processing operations.

In general, the identification of opportunities for improving resource efficiencies and minimising

environmental impact, and for establishing the business case for effective strategies and activities

will need to be underpinned by reliable process data and information, as well as the availability of

adequate tools for the broader-based analysis that extends over the entire minerals-to-metals

chain and beyond. Motivation of incremental changes in terms of resource efficiency and

environmental sustainability is also likely to require a shift away from conventional cost-benefit

based accounting, and the development of a more meaningful concept of the true value of natural

resources (water, minerals, and bio-diversity).

2.2.3 Human and Research Capacity

The major opportunities for the sector relate mostly to urgently addressing the poor skills

situation. These include the following:

Attracting high-quality young people into technical disciplines such as engineering in

the mining industry. The mining industry is still viewed favourably by South Africans and

many young people want to study technical disciplines such as engineering. The industry

is still attractive to, and is able to attract, some of the best students from all racial groups.

Repatriation of skills to South Africa due to the current global financial crisis, as South

Africa has weathered the crisis better than many developed countries. There are also

opportunities to attract high-level technical skills from industry back into academia as

many academics left for higher paid industry positions during the commodity boom.

Partnerships between government, industry and educational institutions, which

provide an opportunity for improving the skills situation as well as closer collaboration

between industry and academia with respect to graduate training and continuing

professional development.


2.2.4 Socio-technical

As identified previously, the minerals sector is a significant contributor to the economy of South

Africa, through job creation, contribution to GDP and social upliftment.

Opportunities for furthering these contributions include:

Sustainable mining communities

Mining with the community rather than for the community

Up-skilling local communities and building entrepreneurs on the fringes of the mining

industry for the supply goods and services

More effective planning for mine closure – both from an environmental and post-mining

community point of view

Operations and value chain

Exploring how the real cost of production can and should be incorporated in metal prices,

taking into account externalities

Increasing recycling of metals and mining products

Engaging with product stewardship and supporting more sustainable consumption and

production

Supplying raw materials for value-add industries, including manufacturing of jewellery,

autocatalytic converters and fuel cells; steel and stainless steel production; and power

generation.

Legislation and safety

Increasing the inherent safety of mining operations

Engaging more closely with mining legislation

2.3 Summary of the Status Quo

This chapter has presented an analysis of the status quo of the minerals beneficiation sector in

South Africa. In summary, the sector has been identified as a significant contributor to both the

economy and to social upliftment and it has expressed a strong commitment to transformation. In

addition, South Africa has historically had a sound technology skills and R&D base having been

at the forefront of development of a number of technologies used around the world. Nevertheless,

it has been identified that the sector is under threat from a shortage of skills and technological

pressures, which include rising costs and declining ore grades, as well as increased pressures to

reduce its impacts on the environment.

If South Africa‟s mining industry is to continue to thrive and underpin the industrial development of

the country, as it has done in the past, it will be essential for the country to increase its research

activities both at those institutions already engaged in relevant research and at those that have

the facilities but neither the manpower nor the necessary funding. There is a strong indication that

this will require a mechanism that can facilitate the interaction and collaboration of the current

centres of activity. The remainder of this proposal develops the rationale for the establishment of

such a centre.


3 Vision and Roadmap for Mineral Processing in South Africa

3.1 Introduction

The role of the mining industry in South Africa is discussed in detail in Appendix A. It generated

some 8.5% of GDP in 2007 (Mabuza 2009), with a total income of R310 billion and total

expenditure of R302 billion (Baxter 2009). The figures reported by the Chamber of Mines for 2007

show that, despite the commodities boom over the past few years, mining production declined by

0.8% during 2007 and its contribution to GDP declined by 0.1%.

One of the strengths of the industry, identified in the interviews with representatives, listed in

Appendix E, is its strong technology base. However, several of those interviewed noted that this

base is declining.

Research activities related to mineral processing have also been discussed earlier. One of the

points highlighted was the decline in research activities over the past 20–30 years, both at

universities and at science councils, as well as through the closure research facilities owned by

mining companies. As recently as 1998, a Mintek report listed ten separate research laboratories

owned by companies associated with the mining industry, as well as ten universities and

Technikons at which mining-related research was being conducted. (Granville et al, 1998). Since

then, at least four of the company-owned laboratories have closed and a further three have

amalgamated into a single research centre. University research involvement has also diminished

significantly since 1998, as discussed under section 2.1.2.

The mining industry plays such a pivotal role in the country‟s economy that a continuing decline in

mining production and contribution to the GDP will seriously affect South Africa‟s ability to

continue to grow its economy and to realise the aspirations of its people. The primary role of

SAMMRI will be to develop the human capacity needed to maintain the strong technology base

referred to above and to conduct research aimed at enhancing this technology base. This is so

that the industry will be able to contain its cost escalation and continue to play a critical role in the

country‟s economy by delivering its products through safe and sustainable processes at

competitive prices.

3.2 Vision

From the interviews, the following vision of mineral processing in the „Mine of the Future‟ in 20

years time emerged:

Mining will continue to play a vital role in the world‟s economy as billions of people will

need metals to sustain their way of life, although there will be an increase in metal

recycling.

Ores will be processed underground, with a minimal surface footprint, in situ leaching, and

process intensification providing smaller processing units with high separation intensities,

significantly improved grinding technology and better flotation devices.

Flexible smelters with waste heat recovery.


Increased use of „new‟ technologies such as microwaves and ultrasonics.

Step-change reductions in energy and water consumption and in the generation of

effluents, through the increased use of dry processing and alternative energy sources

such as solar energy.

Inherently safe mining operations, with a mining philosophy based on earth usage and

integration supported by sustainable mining communities and employing fewer more

highly skilled people.

These components provide the vision for SAMMRI and the basis for its future research.

3.3 Roadmap

All those interviewed during the review study had no doubt that the mining industry would

continue to exist and play a vital role in the economy of the world, but most agreed that there

would have to be significant changes in the way the industry operates, in its consumption of

energy and water and in its generation of waste. Only by doing this, would the industry be able to

keep its escalating costs under control and continue to operate in an economically viable manner.

Some of the visions for the mine of the future listed above are likely to occur over a longer period

than 20 years, but some are already beginning to be explored. Underground processing, for

example, has been considered as a way of the future for many years. It has been resisted in the

past because of the costs involved, for instance, in creating underground processing chambers.

However, the energy and associated cost savings that could accrue from underground processing

and disposal of tailings could make this an attractive option.

Achieving the technical advances required to fulfil the vision summarised above, will require a

sustained programme of research and development, not only to develop the processing advances

to make it possible, but also to build research capacity at the universities and science councils,

through the training of highly skilled people to lead the research effort and drive the changes

needed in the industry itself. As discussed elsewhere in this report, mining related research is

only being conducted in a few countries at present, South Africa being one.

The status of mineral processing research in South Africa has been set out in detail in Section

2.1.2. A number of universities and three private laboratories are currently involved. However,

there is little or no research in the field being conducted at any of the universities of technology,

while research at the science councils is largely contract work or applied research for specific

customers.

Current research is being conducted in milling, flotation, pyrometallurgy, hydrometallurgy

including bioleaching, environmental issues, at varying levels of intensity.

To reach the future outlined in the vision statement, it is envisaged that a roadmap for the industry

will include a targeted research agenda, which, in addition to the above, will focus on the areas

indicated in Table 6.


Table 6: Research Agenda for the South African Minerals Sector

Area Examples

Technology &

Processes Process intensification

Dry processing

Alternative milling technologies

Smelter waste heat recovery

Investigation of „new‟ technologies (for example, microwave treatment of

ores, cryogenics and ultrasonics)

Development of reliable and accurate tools (models, scientific

techniques, metrics & indicators) for the broad-based and holistic

assessment, selection and development of process alternatives

Increase process and plant efficiency

Automation and process control

Resources & the

environment Water use minimisation

Energy use optimisation and conservation

Reducing the life cycle carbon footprint of products

Development of inherently safe processes for use, in particular, in

underground treatment of ore and waste disposal

Reduced solid waste production and improved solid waste management

Socio-technical Improving mine safety

Supporting the development of sustainable communities, both during

operation and post-closure

Engaging with the implications of increased recycling on the sector

Engaging with the setting and implementation of legislation

Engaging with product stewardship and supporting more sustainable

consumption and production

The extended valuation chain

SAMMRI's aim will be to address projects across this range of research areas and to expand the

level and quantity of work being done in these fields to involve more universities, including the

universities of technology, in each the above areas. This is explored further in the Section 4.

A critical component of the path towards reaching this research agenda is to do so in such a way

that addresses the transformation agenda underpinned by the mining charter presented in

Section 2.1.5. Skills transfer through collaborative research between leading edge and historically

disadvantaged institutions will contribute towards progress along this path – both through growing

academic research groups in these institutions and supporting them in the training of high quality

graduates.


4 Proposal for the Establishment of SAMMRI

4.1 Value Proposition

4.1.1 The Critical Need for Local Development of World-Class Innovative

Research

It is common cause that the success of the minerals beneficiation industry will depend ever more

greatly on the development of innovative world-class technologies. This can include and be

facilitated through:

improving beneficiation technologies, thus optimising local value-add;

developing a safer operating environment through, for example, greater use of remotely

controlled operations, minimising unacceptable waste, etc;

ensuring a nationally integrated approach to R&D both with respect to the technical

aspects of the projects (e.g. process integration) and the researchers involved in the

projects (e.g. a collaborative approach);

encouraging 'out-of-the-box' novel approaches to the development of improved process

technologies aimed always at being highly resource efficient;

ensuring that a significant part of the national R&D focus is on long-term (20–30 year)

horizons and on the 'big' problems. This will require nurturing researchers with the ability

to adopt a fundamental approach to addressing such problems.

4.1.2 SAMMRI’s Guiding Principles

Based on the roadmap presented in Section 3.3, it is proposed that the South African Minerals to

Metals Research Institute be established as a partnership between the mining industry, the

Government, and South African research providers. It will promote long-term innovative research

in the area of mineral processing and the concomitant development of world-class technologies

that will ensure that the South African mineral processing industry not only remains internationally

competitive but also assumes a global technological leadership position. It will also aim to ensure

that the abundant mineral resources this country possesses will be exploited in a manner which:

is resource efficient, particularly with respect to energy and water consumption

is consistent with best international practice in terms of environmental impact as well as

health and safety standards

maximises the contribution these minerals make to the growth of the national economy to

the benefit of all its people.


In order to achieve this, SAMMRI will develop strategies and processes that will co-ordinate the

long-term R&D activities of:

the research providers – presently mainly Universities and Science Councils

Industry – including as many as possible of the companies, both large and small, that are

involved in mining and mineral processing in South Africa

the Government – presently through the Departments of Science and Technology and

Minerals and Energy.

The primary emphasis of the research will be on long-term objectives aimed at ensuring that the

country is able to sustain a successful and technologically innovative mineral processing industry

for the next 20 to 30 years. Thus, the research will focus on ensuring that the South African

mining and mineral processing industry is:

globally competitive from an economic and technological perspective

taking advantage of the opportunity which exists to take a sub-continental approach to

addressing these challenges

developing a world-class technological reputation and in so doing, the South African

industry will ensure that it will be regarded internationally as being "licensed to operate" by

demonstrating that its industry is founded on best practice principles in terms of

sustainability, environmental management and community development.

4.1.3 Potential Benefits from SAMMRI’s Research Programme

The vision and roadmap define a number of focus areas for research to be conducted by

SAMMRI. The following brief analysis gives some examples of the financial and other benefits

that can be expected to accrue to South Africa through the work done by SAMMRI, with particular

reference to the PGM industry.

Techno-economic efficiency

One of the major problems facing the mining industry is the shortage of suitably qualified

engineers and technologists to operate and manage the processing plants in the industry. In the

PGM industry, the greatest metal losses occur in the initial concentration stage involving milling

and flotation, where process interruptions and disturbances lead to increased losses of valuable

minerals. One major platinum producer has already found that enhanced training of young

technical graduate engineers and scientists joining their operations from universities contributes

to steadier and better-controlled plant operation and thus to improved recoveries. Total metal

sales by the PGM industry in 2007 were reported to be R78.4 billion. An improvement of 1% in

the recovery of these metals throughout the industry, through better operation and management,

would on this basis equate to an additional R780 million in revenue per year. Since this increased

revenue would reflect directly on the profit line of the various producers, the additional tax benefit

to the country could be in the order of R200 million per year, giving an attractive return on the

money invested in SAMMRI‟s research programme, without accounting for any recovery

improvements which may arise from technological improvements derived from the research.


Apart from reducing costs and improving process efficiencies, technological advances have the

potential to extend the range of ores that can be recovered and improve safety. In addition,

technological advances will create opportunities by bringing about positive changes in the labour

market by creating more opportunities for workers with technical ability and education (Granville,

2001.

Water use minimisation

Mining and industrial use represents approximately 8% of total water consumption in South

Africa. Water is still relatively cheap but it is in scarce supply in areas where many of the country‟s

major mines are situated. The estimated consumption of water by the PGM industry is 120 million

m3 per year. The successful development of new technologies to allow for dry upgrading of the

ore prior to milling and flotation would lead to a significant reduction in water usage.

Energy use optimisation

The mining industry consumes approximately 17% of the country‟s total energy, roughly

equivalent to the amount of energy used for residential supply. A 1999 estimate set the use of

electrical energy by the platinum industry at 2 100 GWh per year. An alternative estimate of

electricity consumption arrived at a figure of 180 kWh per tonne of ore treated by the platinum

industry. Of this figure, 65 kWh were consumed in materials handling, mainly hoisting the ore to

the surface, 26 kWh were consumed in the milling stage and a further 55 kWh per tonne in the

concentration stage – essentially in the flotation stage.

The successful development of new technologies allowing for upgrading prior to milling would

significantly reduce the energy demand for milling and flotation, while process intensification

research leading to the successful implementation of underground processing and tailings

disposal, would lead to a significant reduction in energy demand for the hoisting of ore to the mine

surface. If, for example, 20% of the ore could be separated by an initial upgrading process, milling

energy consumption would reduce by approximately 5 kWh per tonne, and flotation energy

demand by 11 kWh per tonne, while underground processing would reduce hoisting energy

demand by well over 50%. The latter saving occurs because in a typical PGM flotation process

only 1–3% of the mass of ore is recovered into the concentrate, and therefore energy is not

wasted hoisting surplus ore to the surface, although energy would be required for the

underground disposal of the waste material.

The combined effect of these savings in energy consumption would be approximately 50 kWh per

tonne of ore treated or a reduction in annual demand of approximately 700 GWh, which would

have a significant impact on the country‟s overall electricity demand and on the cost structure of

the PGM industry.

This energy saving could be enhanced further by the implementation of energy recovery

processes in the off-gas systems in the PGM smelters. The basic technology is already being

applied in the South African cement industry and one of SAMMRI‟s aims would be the

investigation of technology transfer from one branch of the mineral industry to another.


Mitigation of environmental impact

Successful outcomes from all of the research areas listed above would have a significant effect

on the environmental impact of the mining industry. Underground waste disposal would reduce

the visual impact of mining operations associated with large tailings dams, while a preliminary

upgrading stage would reduce the quantity of material deposited onto tailings dams. A 2003

estimate put the annual tonnage of waste material deposited by the PGM industry at 114 million

tonnes. A reduction of even 10% in this figure would have a significant effect on the quantity of

material deposited on surface dumps, with a concomitant reduction in dust emissions and

contaminated water run-off from these dams. Reducing the hazardous nature of the solid waste

outputs through the pre-separation of environmentally significant constituents would furthermore

significantly reduce the long-term pollution risks frequently associated with these deposits.

Improvement in resource recovery

Although the existence of large undeveloped reserves of a variety of minerals has been proven in

South Africa, the country is not considered fully explored. Technological advances will

undoubtedly play a key role in the ability to efficiently recover economically valuable materials

from future ore deposits, which are likely to become increasingly complex and finely

disseminated.

Human capital (skills)

In the 2009 Global Competitiveness Report, published by the World Economic Forum, South

Africa ranked 45 out of 134 nations in overall competitiveness. In the area of the competitiveness

study relevant to this report, namely innovation, South Africa received the following rankings for

the components of the innovation assessment:

Quality of scientific research: 31

Company spending on research: 28

University – Industry research collaboration: 28

Tertiary enrolment: 93

Availability of scientists and engineers: 110

Clearly, although South Africa has highly rated research capabilities, there is a significant barrier

to the improved competitiveness of the country‟s economy resulting from low tertiary enrolment

and from the availability of scientists and engineers.

One of SAMMRI‟s primary objectives, if not the single most important objective, would be to

promote enrolment of students in science and engineering studies and thus to generate research

workers and academic teachers with higher degrees to foster this development, in addition to

those absorbed by industry.

South African universities already attract postgraduate students from elsewhere in Africa.

Promotion of research in the mineral processing field will attract even more postgraduates from


other African countries, particularly those with mining based economies. This means that the

creation of human capital through SAMMRI‟s programmes will extend beyond South Africa‟s

borders and contribute to the economic development of these countries in which, at present, there

appears to be little opportunity for postgraduate study and research.

Contribution to the transformation agenda

As mentioned previously, through signing up to the mining charter (section 2.1.5) the industry is

committed to the transformation of the mining and minerals industry. Such transformation requires

the training of suitably qualified individuals to take up lead roles within the industry. One of the

benefits of the collaborative research model being proposed by SAMMRI is information sharing

between institutions through establishing collaborative research projects. This model will not only

provide the opportunity for up-skilling of academics and building of research facilities in

historically disadvantaged institutions, but also for ensuring the qualification of high-quality

researchers from these institutions. This approach will contribute towards developing new

capacity.

4.1.4 Promoting a Closer Relationship between Stakeholders

One of the key features of the SAMMRI initiative is that it aims to develop a strong coordinated

and collaborative approach between the three key stakeholders – Industry, Government, and the

research providers. This would mean all three would be actively engaged in the development of

the research agenda, the governance, the funding mechanisms, etc. The synergy developed

through the collaboration would have a major positive and long-term impact on the initiative.

4.1.5 Growth of the Institute

This report has identified three research themes in which development will take place, namely:

Technology and processes

Resources and the environment

Socio-technical.

During the first two years of the development of SAMMRI, only the pilot research project will be

conducted (see Section 4.4 for more detail), as the capacity to conduct further similar projects in

the mineral processing field probably does not exist at South Africa‟s tertiary institutions at

present. As SAMMRI grows and builds this capacity, additional projects of similar size, will be

initiated. This is discussed further in section 4.5.

In order to be able to establish further projects one of the first tasks of the Board of Directors of

SAMMRI will be to set targets for meeting SAMMRI‟s objectives of growing both research

collaboration and skills development in the country, with particular emphasis on the following

areas:

To involve defined numbers of additional university research groups in the research

programme each year following inception.


To increase the total number of post-graduate students involved in mineral processing

related research, by a minimum defined percentage annually from the current estimated

number.

To increase the number of academic posts in the mineral processing education and

research fields, by a minimum defined percentage annually from the current estimated

number.

The above targets must be realistic. The performance of SAMMRI against these targets as well

as the targets themselves must be reviewed annually.

4.2 Research Scope and Agenda

4.2.1 Research Scope

It is proposed that SAMMRI's research activities are limited to the process beneficiation chain

from the mined ore body to the final saleable metal, but include process mineralogy and blasting,

given that blasting represents the first step in mineral liberation and process mineralogy is a key

discipline used in characterising the efficiency of the comminution process.

The refined metal serves as the feedstock to the already existing national manufacturing initiative,

the Advanced Manufacturing Technology Strategy. The proposers are fully aware of the

Advanced Manufacturing Initiative (AMI), which is currently supported by the Department of

Science and Technology, and which aims to achieve optimal sustainable local manufacturing of

value-added products in the areas of Light, New and Precious Metals. It is envisaged that

SAMMRI will interface with the AMI in the area of technology transfer and development. This will

ensure that the solid, theoretical understanding and multi-disciplinary contextualisation that would

be developed through SAMMRI's research themes are projected towards a value-added outcome

that is meaningful to industry and South Africa.

4.2.2 Research Agenda

In line with the proposed roadmap for minerals beneficiation research in South Africa presented in

Section 3, the SAMMRI research agenda will address topics outlined in Table 6, which fall into the

broad categories of Technology and Processes, Resources and the Environment and Socio-

Technical considerations. Furthermore, it is envisaged that there will be a focus on the processing

of UG2 ores and coal for the following reasons:

UG2 – South Africa possesses almost 90% of the world‟s reserves of platinum group

minerals. This represents a significant strategic resource given the long-term global need

for alternative energy technologies such as fuel cells, which employ these metals as

catalysts. Most of these reserves are located in the so-called UG2 ore body, which

presents major challenges in terms of processing compared to the Merensky ore, which

has been the dominant ore processed during the past decades. Although much research

has been and continues to be done on addressing the problems associated with the

processing of UG2 ore, there is a critical need for a major increase in the national effort to

develop processes and technologies. This will ensure that South Africa has its own


internally developed processes to ensure a long-term security of supply of strategic metals

contained in these ores, such as platinum and palladium.

Coal – Although in global terms South Africa is a relatively small producer of coal (3–4%

of world supply), the country possess large reserves of coal which will continue to enjoy

pre-eminence for many years, both as a key internal source of energy and as a key

foreign exchange earner. The quality of coal exported as well as that used internally will

be of ever greater importance, giving rise to a need for research into processes for

beneficiation of this coal, including de-ashing, de-watering, etc.

The roadmap giving rise to the research topics and priority areas has been developed as a

preliminary exercise to shape SAMMRI‟s research agenda. It is intended that this broad agenda

will be refined by SAMMRI‟s steering committee once it has been formally established. In this

way, the roadmap will ultimately develop into a living strategic plan for SAMMRI‟s operation and

on-going development and it will become a point of reference against which SAMMRI‟s future

performance can be measured.

4.3 Operation of SAMMRI

This section explores how the proposed institute will be operated.

4.3.1 Governance

It is proposed that the governance of SAMMRI be aligned with existing models already used by

the Department of Science and Technology – Centres of Excellence, Competency Centres, etc.

Whatever model is used should ensure that factors such as collaboration between industry and

research providers, capacity building and skills transfer, are entrenched in the model.

The new Institute would need a Governing Board drawn from Government Departments (e.g.

DST, DME, etc), Industry (company sponsors) and the research providers (universities and

science councils).

It is suggested that a number of Programme Directors, each responsible for a programme or

theme of collaborative projects, be appointed reporting to the overall Director/CEO of SAMMRI.

Programme Directors would typically be based at a university or science council. A Technical

Advisory Committee would be established to advise the CEO on projects worthy of funding under

the various programmes or themes; the CEO would then seek approval for these from the Board.

It would be the responsibility of the Board to:

draw up the Constitution of the SAMMRI

direct and approve the research programmes or themes it would undertake

approve budgets

appoint the CEO as well as Programme Directors, administrators and the Technical

Advisory Committee

award bursaries

communicate with stakeholders.


The benefits of this model are numerous:

It will provide research providers with the guaranteed significant and sustainable source of

funding that is required to undertake long-term (20–30 year horizon) research.

It will assist in developing and retaining the critical mass of researchers and research skills

needed in South Africa to carry out sustained long-term, world-class research.

It will enable researchers to tackle “big” problems that require innovative solutions (such

as the reduction in energy and water usage, and the minimisation of waste).

It will encourage the development of “break-through” technologies that revolutionise the

way the industry does business.

It will ensure that South Africa remains competitive in the international mining and

minerals industry (with a possibility of attaining global technological leadership).

It will ensure an equitable distribution of research funds within South Africa, which will

assist in developing new capacity at HDIs through collaborative research.

It will lead to sustained economic growth in the minerals sector to the benefit of all South

Africa‟s peoples.

It will assist in the achievement of the Millennium Development Goals

(www.un.org/millenniumgoals).

It is recognised that such a large, collaborative research programme might result in intellectual

property (IP) issues and these would need to be addressed in SAMMRI's Constitution. Further to

this, IP will be managed in accordance with the new IP bill, and industry (company sponsors)

would derive a benefit from licences to use such IP for limited periods of exclusivity, plus access

to researchers and skills at the participating institutions.

Figure 1 below presents an outline of a possible governance structure.


Figure 1: Proposed Governance Structure

4.3.2 Participants

The proposed participants in the research include members from industry, government and

research providers.

Government: Participants will include members from the Departments of Science and

Technology and Minerals and Energy. The role of government in the research is

envisaged as one of providing appropriate funding for the research and consequently to

be involved in the activities of the SAMMRI board, which will ensure that the funds are

used to the best advantage.

Industry: Participants will include members from mining companies with a significant

interest in South Africa. This excludes mining companies without a South African footprint.

The role of industry in the research is to i) co-fund research, ii) participate in a Technical

Advisory Committee and iii) participate as members of the SAMMRI board.

Research Providers: Participants will include researchers from South African higher

educational institutions and science councils involved in mineral processing research,

such as Mintek and the CSIR. This excludes researchers employed by commercial mining


research companies and „in-house‟ research organisations. The role of research providers

in the research is to i) co-fund research, ii) propose research projects, iii) conduct,

manage and report on research projects, iv) manage research programmes, vi) participate

in the Technical Advisory Committee, vii) participate as members of the SAMMRI board

and most importantly viii) to ensure that an ever-increasing number of highly-skilled

graduates enter the mining and mineral processing industry.

4.3.3 Research Approach

The proposed mechanism for conducting the research is based on the classical research model

involving a system of peer-reviewed research proposals and procedures for monitoring,

evaluating and reporting on research progress.

Pre-Proposals: Preliminary research proposals will be obtained from an annual „open-

call‟ for research projects circulated to all research providers. An „open-call‟ implies that

researchers may submit any project that satisfies the founding principles of SAMMRI. The

Technical Advisory Committee will review the pre-proposals and successful applicants will

be requested to supply full proposals. The Governing Board may reserve the right to

indicate preferred fields in which applications should fall.

Full Proposals: Full research proposals will be sent for external peer-review before being

reviewed by the Technical Advisory Committee, who will then advise the CEO on which

projects to seek approval from the SAMMRI Board. Successful projects will be assigned to

a Programme Director. New projects will be initiated annually and would be expected to

last between 3 and 5 years.

Monitoring, Evaluating and Reporting: Detailed research project progress/outcomes

will be reported on a biannual basis at technical meetings attended by researchers,

Programme Directors and the Technical Advisory Committee. General research

progress/outcomes will be reported on an annual basis to the SAMMRI board.

The set of founding principles on which all research projects should be based includes:

Scientific enquiry

Strategic focus

Collaboration and capacity development

Scientific Enquiry: The „tone/nature‟ of the research should be of scientific enquiry into

fundamental scientific principles of relevance to the mining industry. A significant portion of the

research should be long term and fundamental in nature i.e. „blue sky‟ research.

Strategic Focus: All research should address in some aspect/part the strategic focus areas of

water, energy and waste minimisation, emissions control, process safety and the beneficiation of

low-grade ores. However, attempts to „compartmentalise‟ the research prescriptively into rigid

technical themes of relevance to the mining industry (hydrometallurgy, comminution, etc) should

be avoided.


Collaboration and Capacity Development: The „spirit‟ of the research should be one of

collaboration with other South African researchers and capacity development at historically

disadvantaged institutions.

4.4 Pilot Study

In preliminary discussions with the Department of Science and Technology, it was proposed that

should this funding proposal be supported then the first stage of the implementation should be a

pilot project of 1–2 years duration, which will be aimed at achieving the following:

Demonstrating that the participants in the project (industry and research providers) are

able to work collaboratively and deliver a quality output both on time and within budget.

Developing robust and appropriate procedures for soliciting research proposals and

identifying both the projects to be undertaken and the participants in the project.

Developing procedures for determining the appropriate funding required for a project and

evaluating the outcome of projects.

As part of the study methodology, participants were asked to comment on what they considered a

suitable pilot study for demonstrating the effectiveness of the SAMMRI initiative. A number of

interesting pilot studies were proposed, including ones in the areas of mine-to-mill, mineral

processing, refining and resource utilisation (e.g. energy efficiency). However, the proposed pilot

project is for a comprehensive investigation into current practice in the processing of UG2 ore.

As identified previously, UG2 is arguably one of South Africa‟s most strategically important ore

reserves and it has a range of technical difficulties and issues associated with its processing. In

addition, an investigation into the processing of UG2 ore will offer cross-cutting research

opportunities in the areas of process efficiency and technology, resources and the environment,

and socio-technical issues.

Process efficiency and technology: The processing of UG2 ore, due to its complex

mineralogy and high chrome content, offers numerous opportunities for research into

process efficiency and technology. Potential projects include chrome rejection through

pre-treatment/ore sorting, novel comminution technologies, novel flotation

processes/technologies for producing high-grade concentrates and flexibility in smelter

operation.

Resources and environment: UG2 is an ore of strategic importance. It is self-evident

that the efficient processing of this valuable resource is essential. In addition, research

into the processing of UG2 offers opportunities for a variety of projects in energy and

water minimisation. Potential projects in the area of energy reduction include pre-

treatment/ore sorting, novel comminution technologies, production of high-grade

concentrates and waste heat recovery from smelters. Potential projects in the area of

water include mine-site water reduction and the effect of water quality on processing.


Socio-technical: New UG2 concentrators are often located in rural communities and, in

certain cases, may partially displace an existing community. There are significant

opportunities for researching the relationship between the mine and rural community.

Potential projects include investigation of shared water resources and sustainable mining

communities (e.g. planning for mine closure).

An extended proposal for the establishment of a pilot project with a preliminary budget is given in

Appendix D. The pilot project is budgeted at a figure of R7–8 million per annum. Should it be

agreed that this proposal be funded, a process would immediately begin to scope the pilot project

fully with respect to deliverables, participants, detailed budgets, time lines, etc.

The pilot project will not only serve to gain a greater understanding of the ability of each institution

to deliver against set targets but it will also provide an opportunity to assist those not accustomed

to operating in such a mode to adjust their procedures accordingly.

4.5 Budget and Funding

With respect to overall funding of SAMMRI, it is recognised that funding will need to be long-term

and significant. It is proposed that:

Industry will make the first contribution to this initiative, through a membership fee

(company size-based) plus contributions to specific programmes and projects;

the most significant contribution should come from Government agencies, without which

this initiative will not succeed;

research providers will be expected to make an appropriate commitment towards

sustaining the research activity in their respective institutions.

An envisaged funding model is depicted in Figure 2 below, showing how SAMMRI will channel

funding from government and from industry, in the form of membership fees and sponsorship of

individual programmes, into the various research programmes directed by SAMMRI.


Figure 2: Funding Model for SAMMRI

As discussed briefly in Section 4.1.5, SAMMRI will start with the pilot project described in Section

4.4 and, as research capacity develops through SAMMRI‟s activities, additional research projects

or programmes will be initiated, until all the research themes identified earlier in this report have

been brought into the overall research programme.

It is estimated that in order to make a significant impact in the long-term on the South African

mining and minerals processing industry, annual funding in the region of R30 to 40 million would

be required at steady state. It is of key importance that such funding is guaranteed for at least five

years, and is renewable, subject naturally to performance assessment. The first year will mainly

be used to scope specific projects in more detail, with a smaller number of initial projects in the

execution phase. As identified in Section 4.4, a figure of R7–8 million p.a. should suffice for the

pilot project, increasing each year until the funding reaches a level that appropriately reflects the

importance of ensuring a strong and vigorous mineral processing industry for the future.

Assuming the establishment of SAMMRI is approved during 2009, the following table sets out an

indicative budget and financing programme for the next 10 years.


Table 7: Indicative Funding Requirements for SAMMRI

Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

No of

Projects Pilot Pilot 2 2 3 3 4 4 5

Funding

Required

R(m)

0.5 8 8 16 16 24 24 32 32 40

Government

Funding

R(m)

0.5 6 6 12 12 18 18 24 24 30

Industry

Funding

R(m)

- 2 2 4 4 6 6 8 8 10

The figures in Table 7 include R500 000 in 2009 to cover the cost of establishing SAMMRI during

the second half of this year. This will allow for obtaining formal funding commitments from

industry, preparing detailed scoping documentation and soliciting research proposals for the

individual components of the pilot project, as well as evaluating these proposals so that the

research project can commence at the beginning of 2010.

In years 2010 and 2011, all research activity will be focussed on the pilot research project, which

will be used to prove the SAMMRI funding and management models, while proposals for further

projects are sought. It is envisaged that, in subsequent years, SAMMRI will grow as it develops

the research capacity of the South African research providers, with the number of research

programmes rising steadily to an envisaged maximum of five within the first ten years of

operation. The table shows one additional programme being introduced every two years. In

practice, this may occur more rapidly, but it will depend on the response from both researchers

and industry to requests for participation in SAMMRI‟s activities.


5 References

Ashton, P.J., Love, D., Mahachi, H. and Dirks, P.H.G.M. (2002). An overview of the impact of mining and

minerals processing operations on water resources and water quality in the Zambezi, Limpopo and

Olifants Catchments in Southern Africa: Report, MMSD Southern Africa, Pretoria, South Africa.

Batterham, R.B. (2003). The Mine of the Future: Will it be visible? XXII International Mineral Processing

Congress, Cape Town 2003.

Baxter, R. Presentation at Launch by the DME of The Beneficiation Strategy, Gallagher Estate, March

2009.

Business Times (2007). The REAL cost of power generation, 25 November 2007.

Chamber of Mines of South Africa (2005 & 2007). The South African mining industry sustainability and

transformation report. Gauteng

Coetzee, H. (2004). An assessment of sources, pathways, mechanisms and risks of current and potential

future pollution of water and sediments in gold-mining areas of the Wonderfonteinspruit catchment.

WRC Report No 1214/1/06, Pretoria, pp 266.

DME-Department of Minerals & Energy (2004). South Africa’s Mineral Industry: 2003/2004. Pretoria.


DME (South African Department of Minerals & Energy) (2006). Digest of South African energy statistics:

2006. Pretoria.


DME (2008). Minerals Industry Statistic Tables, available on-line at www.dme.gov.za.

DME (2008). A Beneficiation Strategy for the South Africa’s Minerals Industry. Draft Report, September

2008

Granville, A. (2001). Baseline survey of the mining and minerals sector. Southern African regional analysis

(MMSD-SA) for the Mining, Minerals and Sustainable Development (MMSD) Project.

Granville, A., Stanko J.S., Freeman, M.J., Robinson, M. (1998). National Research and Technology

Foresight Project – Mining and Metallurgy Sector Local Scan, Mintek Technical Memorandum No

21154.

Giurco, D. (2005). Towards sustainable metal cycles: The case of copper. PhD Thesis, University of

Sydney, Sydney, Australia.

IIED (2001). Mining, Minerals and Sustainable Development Project: Breaking New Ground: Report,

London, UK.

Mabuza, M. Presentation at Launch by the DME of The Beneficiation Strategy, Gallagher Estate, March

2009.

http://www.dme.gov.za/


Mudd, G.M. (2007). Global trends in gold mining: Towards quantifying environmental and resource

sustainability? Resources Policy, 32, pp 42–56.

Norgate, T. E. and Rankin, W. J. (2002). The role of metals in sustainable development, Green Processing

2002: International Conference on the Sustainable Processing of Minerals, pp 49–55.

Porter, M.E. and Schwab, K. (2009) Global Competitiveness Report 2008–2009, World Economic Forum

Pulles, Howard and de Lange. (2002). Guideline for the development of rehabilitation management

strategies for reclaimed gold-mine dump sites in South Africa. WRC Project Reference No 1001

(available online at http://www.wrc.org.za/downlaiads/knowledgereview/2002/mines.pdf).

Salmon, D. (2006). Water challenges in the mineral processing industry. In: Addressing the challenges

facing the sustainability of the minerals processing industry. SAIMM workshop, Cape Town.

Sebitosi, A.B. and Pillay, P. (2008). Grappling with a half-hearted policy: The case of renewable energy and

the environment in South Africa. Energy Policy, 36(7), pp 2513–2516.

Stewart, M. and Petrie, J. (2006). A process systems approach to life cycle inventories for minerals: South

African and Australian case studies. Journal of Cleaner Production, 14, pp 1042–1056.

Von Blottnitz, H. (2005). Background briefing paper for the National Sustainable Development Strategy.

Department of Chemical Engineering, University of Cape Town.

Walker, M.I. and Minnitt, R.C.A. (2006). Understanding the dynamics and competitiveness of the South

African minerals inputs cluster. Resources Policy. 31(1), pp 12–26.

Williams, R.A. “The impact of fundamental research on minerals processing operations of the future”, XXII

International Mineral Processing Congress, Cape Town 2003.

http://www.wrc.org.za/downlaiads/knowledgereview/2002/mines.pdf


Appendix A: An Economic Snapshot of the South African Minerals Industry

A Focus on Metal- and Coal-based Subsectors

This appendix presents a comprehensive analysis of the contribution of the mineral beneficiation

sector to the South African economy. Consideration is given to:

products from the sector

trends in production

identified reserves

sales revenue

the contribution to the national economy.

It also provides some general comments on the role of the sector in future development of the

country.

Product Outputs

In the context of this study the South African minerals industry can be divided into a number of

sectors and sub-sectors, in accordance with the type of mineral commodity produced.

Table 8: Sectors and Sub-sectors of the South African Minerals Industry

Sector Product Comments

PRIMARY MINERAL COMMODITIES1

Precious metals

Refined gold 99.95% pure bullion

Refined PGMs 99.9% pure bullion

Refined silver Produced as by-product of primary gold (25–35%), lead-zinc

(55–60%), copper (5–15%) and PGM (3–4%) production

Non-Ferrous

Antimony concentrates Also processed further locally

Refined copper metal and

concentrate

Mainly sold as refined metal (92%). Approximately 8% is sold

directly in the form of concentrated ore.

Refined nickel Largely produced as refined metal by-product of PGM sub-sector

(85–90%)

Refined cobalt As above

Lead concentrate

Zinc concentrate All concentrate sold to Zincor for further processing

Ferrous

Chrome ore (chromite) 9% exported. 38% converted locally to ferrochrome.

Iron ore (pig iron) 66% exported as lumpy and fine ore (@65–66% Fe).

Manganese ores 56% exported ore (@47%Mn). Also converted locally to

ferromanganese, other alloys, metal and metal oxide products.

Energy Coal

Mainly washed coal. Both exported and sold locally to electricity

and metallurgical sectors

Uranium oxide (U3O8) Produced as a by-product of the gold industry


Sector Product Comments

Mineral Sands

Titanium concentrates-

ilmenite & rutile

The majority of local titanium concentrates are made up of

ilmenite which is upgraded locally to titanium slag. Rutile is

exported.

Zirconium concentrates

(Zircon) Produced as a by-product of heavy mineral sands processing

PROCESSED MINERAL COMMODITIES2

Ferro-alloys Ferrochrome alloys

Manganese alloys Mainly ferromanganese and silicomanganese

Ferrosilicon

Vanadium alloys 68% exported for global steel production

Refined metals Refined aluminium From imported aluminium concentrate (bauxite)

Refined zinc From local and imported zinc concentrate

Other

Silicon metal

Vanadium pentoxide

Antimony trioxide

Titanium slag

Manganese metal and

oxide

About ¼ of total Si products

Produced from local vanadium ore

Produced from local antimony concentrates

Produced from local ilmenite concentrates

Produced from local manganese ores.

1 1

st or base-line beneficiation stage products exported and/or sold locally

2 More finished (2

nd stage beneficiation) products derived through the value-added processing of primary

materials, whether produced locally or imported.

Production and Reserves

According to statistics published by the DME, South Africa holds the world‟s largest reserves of

ores of platinum group metals (88%), manganese (80%), chromium (72%), gold (40%) and

vanadium (32%). It is also prominent in terms of reserves of titanium (18%), zirconium (19%) and,

to a lesser extent, coal (7%) and uranium (6%). Although available data indicates that South

Africa‟s contribution to the world‟s mineral supply has diminished in many sectors over the period

1997–2007, the country remains the leading producer of platinum group metals (60%), gold

(13%), chromite (38%), ferrochromium (43%) and vanadium (39%). South Africa is also among

the top three producers of manganese ore (15%), titanium minerals (18%) and zircon (42%).


Figure 3: South Africa's Contribution to Global Production and Reserves


Figure 4: Mineral Production Trends Relative to 1985

Trends for the period 1985–2007 indicate a dramatic decrease in the production of gold (–62%

growth) and the related primary products of silver (–67% growth) and uranium (–89% growth).

This period has also seen a decline in the production of many non-ferrous primary minerals,

including copper (–42% growth), lead (–57% growth), zinc (–68% growth) and antimony (55%

growth). Primary metal products that have expanded in terms of annual output include platinum

group metals (150% growth) and associated by products nickel (29% growth) and cobalt (75%

growth); ferrous ores including chromite (161% growth), iron ores (72% growth), manganese ores

(60% growth) and coal (41% growth). The most dramatic increase in annual production from 1985

to 2007 has, however, been in the production of processed mineral products such as aluminium

(482% growth to 2006), refined zinc (100% growth), ferrochromium (316% growth), vanadium

(69% growth) and manganese alloys (69% growth); and silicon metals and alloys (39% growth).


Sales Revenue

Based on these production trends, there has been a fairly dramatic shift, over the 1985 to 2007

period, in the relative contributions of the various sub-sectors to overall minerals industry revenue

(local and export sales) – with the contribution of gold decreasing (from 51% to 14%), and the

contribution of PGMs increasing (from 7% to 28%). Despite the increase in the contribution of

processed mineral products (from 8% in 1985 to 20% in 2007), revenue from the minerals

industry remains dominated by production of primary minerals (80%), particularly the “big three” –

PGMs, gold and coal (58% total contribution in 2007, down from 75% contribution total in 1985).

Even in cases where production has declined, sales revenue generated by the industry has

increased significantly for all commodities between 1985 and 2007, resulting in a nominal

increase in total sales revenue for the minerals industry (primary and processed mineral

products), from R30 billion in 1985 to R279 billion in 2007. This can be attributed largely to the

increased unit value of mineral commodities, the growth rate, which was particularly significant

between 2000 and 2007 (>100% increase in unit price for most primary mineral products and

>50% for processed minerals).

Figure 5: Relative Contributions of Sectors and Mineral Unit Values


In terms of generated revenue, South Africa‟s mineral industry remains primarily export-driven,

with respectively 72% and 76% of primary and processed mineral sales destined for world

markets (in 101 countries) in 2007. The export sales relative to total sales revenue has, however,

decreased significantly between 1985 and 2007 for certain primary minerals – including chromite

ore (61% of total ore sales in 1985 to 22% in 2007), copper (62% of total Cu sales in 1985 to 31%

in 2006) and zinc concentrates (15% of total sales in 1985 to 0% since 1995) – resulting in a

corresponding (albeit slight) decline in the export sales/total sales ratio for the primary mineral

production sub-sector (from 0.86 to 0.72).

This trend can be attributed mainly to an increase in the local beneficiation of primary minerals, to

produce both higher value processed mineral products (ferroalloys and refined metals) and

manufactured/finished products (such as stainless steel, tubing and piping).

Figure 6: South African Minerals Sector Revenue

Contribution to National Economy

In 2007, mining (excluding exploration) contributed R135.5 billion or 7.7 percent to Gross Value

Added; R36.6 billion or 8.9% to fixed capital formation; and R161.8 billion or 30% in foreign

exchange earnings. The mining industry (excluding exploration, research and development

structures, refineries and head offices) also employed 29% of South Africa‟s economically active

population. These figures include mining of industrial minerals and diamonds but exclude

contributions from processed mineral products and fabricated materials such as stainless steel

(which are generally reported in the manufacturing sector).

As pointed out in a report by the Chamber of Mines (2007), apart from the direct contribution (7%

in 2006), mining also has an indirect multiplier effect on the gross domestic product. Multiplier

effects include goods and services provided to the industry (2.2% of GDP), value added

beneficiation of mining outputs (1.7% of GDP – including power generation, production of

processed minerals products and manufacture of fabricated materials such as stainless steel);

and induced effects through export earnings, consumption multipliers and additional earnings of


employees in related sectors (6.4% of GDP). Available data indicates that consideration of these

factors resulted in a “real” contribution by mining to GDP of 17.3% in 2006.

Figure 7: Contribution of Mining to National Economy

Although the contribution of the mining industry to gross value added (GDP minus taxes less

subsidies on products) and fixed capital have remained relatively consistent (at 7%–7.9%) over

the period 1994–2007, statistics show a decline in contribution in terms of fixed capital formation,

export-derived income and employment during this period. These downward trends have been

attributed to the contraction in the gold-mining industry, as well as increasing contribution from

other sectors, including mineral beneficiation and manufacturing industries. Despite its declining

contribution, gold mining, together with the PGM and coal sectors, remains a major employer and

contributor to the country's export revenue.

Figure 8: Contribution of Minerals Sector to National Economy


Figure 9: Relative Contribution of Sectors: Mining Employment

General Comments

Although the existence of large, undeveloped reserves of a variety of minerals has been

proven in South Africa, the country is not considered fully explored.

South Africa is in the process of promoting the export of added value products

manufactured or beneficiated from raw minerals, and therefore, simultaneously reducing

the export of raw and intermediate mineral products. To this end, a draft Beneficiation

Strategy for the Minerals Industry of South Africa has been developed to facilitate the

creation of a conducive environment for further value addition and to supplement existing

legislation aimed at promoting beneficiation (Section 26 of Minerals and Petroleum

Resources Development Act, Precious Metals Act and the Diamond Amendment Act). The

objectives of the strategy are to identify opportunities for the beneficiation of ten selected

strategic minerals beyond the beneficiation baseline levels, and to identify all the

necessary interventions required to stimulate and sustain this growth. The strategy takes

into account the outcome of previous beneficiation studies, particularly the platinum group

metals downstream value addition study. A study – commissioned by the DME in

collaboration with the three South African PGMs mining giants, Anglo Platinum, Impala

and Lonmin – has revealed that South Africa would benefit from encouraging further

investment in the manufacture of autocatalytic converters and diesel particulate filters in

the short term and jewellery manufacturing in the longer term. Apart from value-add

processing of precious metals, the recent beneficiation strategy also identifies the

development of steel and stainless steel plants in South Africa as a key priority and it

emphasises the role of the associated primary commodities, namely iron ore, manganese,

chromium, nickel and vanadium. Regarding future energy demand, the strategy envisages

uranium, thorium and, in particular, coal resources as being of significance.


Despite the above-mentioned initiatives and the vast potential to generate value-added

mineral and manufactured products in South Africa, the minerals industry (including

primary and processed products) is likely to remain orientated towards the export market,

with commodity prices and export revenue by the industry being largely dictated by global

supply/demand trends. As pointed out by Granville (2001) in his base-line report for the

MMSD project, fluctuations (both booms and slumps) in these trends put the South African

industry under considerable pressure, particularly in terms of labour, safety and

environmental practices.

Granville (2001) also emphasises the important role of technology development in

reducing costs, extending the range of ores that can be recovered and improving safety

and productivity. According to Granville (2001), previous technological advances have

maintained or extended the viability of mining for a number of commodities and slowed the

decline of others. Many of the innovations have also brought about a change in the labour

market from unskilled, uneducated workers to those with technical ability and education.

A more recent study by Walker and Minnitt (2006) entails a review of the state of the

South African minerals input cluster and its potential to assist in achieving the broader

development goals of the country. In accordance with this paper, the most critical issue

with regard to the further development of this potential pertains to the lack of knowledge

development and skills, particularly in the engineering and technical fields


Appendix B: The Environmental Performance of the South African Mining

and Minerals Industry

Environmental issues and challenges

A comprehensive analysis of the environmental performance of the sector, including issues and

challenges and quantification of a number of key environmental parameters, is presented in the

sections that follow.

Power Consumption and Greenhouse Gas Emissions

The minerals industry is energy-intensive, and associated GHG emissions can be attributed

largely to the on-site combustion of fossil fuels and/or the consumption of purchased (and fossil

fuel-based) electricity. In South Africa, mining and metal production industries collectively

accounted for over 20% (equivalent to 562 514 TJ) of South Arica‟s total energy consumption in

2006 (see national industry statistics, Figures 12–16 ), the majority of which was derived from the

supply of electricity and on-site coal combustion. The results of an international survey by the

IIED (2001), confirm that South Africa has the most electricity-intensive iron and steel, non-

ferrous metals (including aluminium and titanium slag), and mining and quarrying sectors (relative

to total national consumption) in the world. South Africa is also one of the top 20 GHG emitters in

the world, accounting for 1.6% of global emissions. Although this can be largely attributed to the

coal-based power generation sector, electricity demand is fuelled by the relatively low cost of

electricity, which in turn continues to encourage the growth of energy-intensive activities such as

aluminium smelting, and the production of ferro-alloys, steel and titanium slag. Hence, whilst

ESKOM accounts for the vast majority of GHG emissions in South Africa, the large mining houses

are reported to constitute 6 of the 9 top CO2 emitters in the country (South African Business

Times, 25 November 2007).

According to the South African Energy Efficiency Accord, the mining industry must show a 15%

decrease in energy use, based on business as usual, by 2015. Threats of a serious electricity

shortage in the future and the possibility of a carbon tax to be imposed on electricity consumption,

have added further pressures to the industry to assess and improve how they manage and utilize

energy (Sebitosi and Pillay, 2008).


Figure 10: Comparison of South African and Global Electricity Consumption by Mining Industry

(IIED, 2001)

Consumption and Degradation of Natural Water Sources

In comparison to the agriculture, fresh water withdrawals by the mining and minerals industries

are relatively small. According to available statistics presented by Salmon (2006), mining

accounted for approximately 2.6% of total water resource utilisation in South Africa, amounting to

approximately 583.31GL in 2000. Although recent figures published by the Chamber of Mines

(2007) indicate that this value may be closer to 6%, total water utilisation by the industry tends to

be of a local catchment and regional, rather than a national or global, concern. Many regions in

Southern Africa are already experiencing severe environmental and socio-political effects

because of freshwater shortages, with further prospects of water shortages, scarcities and

stresses predicted for the future. Although the future availability of water of adequate quality

poses a serious threat to the industry in terms of their ability to operate (or expand existing

operations) in certain areas, a recent survey by the Chamber of Mines (2007) reflects that the use

of recycled water within the industry is still very low.

Apart from water consumption, mining and minerals beneficiation operations also frequently result

in extensive contamination of local water sources, mainly due to storm water run-off and seepage

from surface waste deposits, open pits and underground workings. Both defunct and existing gold

and coal mining activities, in particular, continue to be a major source of surface and groundwater

contamination in South Africa. Acid mine drainage (AMD) from 15 working and 29 closed gold

mines in the Witwatersrand Basin (which supplies water to the whole of the Province of Gauteng),

continues to result in significant pollution of surrounding ground and surface waters in the region

by heavy metals, including uranium (Coetzee, 2004). AMD from coal mining has also had a


significant impact on the quality of water in the Olifants catchment area (Ashton et al., 2001). It is

thus hardly surprising that the Chamber of Mines of South Africa has identified prolonged

pollution, such as acid mine drainage, from previous and abandoned mining operations

(particularly coal), as one of the most serious challenges facing the country in respect of water.

Generation and Disposal of Solid Wastes

The minerals industry is characterised by large tonnages of solid waste – particularly in the early

beneficiation stages (extraction and concentration) – most of which is consigned to land disposal.

In 2005, the mining and mineral processing industry in South Africa was responsible for 90% of

the total solid waste production in South Africa (von Blottnitz, 2005). As indicated in the cause

and effect diagram in Figure 11, the occupation of large sectors of land by waste sites, and their

potential impact on the surrounding environment, can have implications in terms of public health

and safety; preservation of natural resources including biodiversity, water and land; and the

economic impacts associated with excessive clean-up and site maintenance costs. In addition to

these environmental and socio-political impacts, the solid waste deposits from the mining and

minerals industry also frequently represent a loss of potentially valuable mineral resources. Whilst

recent advances in solid waste management have been relatively successful in dealing with

conventional rehabilitation and reclamation issues (dust, soil erosion, physical stability), such

measures do not address chemical stability issues adequately and there is increasing concern

that current measures will not be sufficient to prevent post-closure impacts and guarantee a

“walk-away” situation2.

Figure 11: Cause-effect Relationship for Solid Mineral Wastes

2 A "walk-away" situation is commonly referred to as one which delivers a maintenance free, self sustaining site which

complies with acceptable environmental standards over the long-term without further interventions.


Indeed, historical practices have left a legacy of abandoned and unrestored mining waste

disposal sites, with 300 mine dumps, covering an area of 180km2, from the gold industry alone,

having been identified in South Africa (Pulles et al, 2002). Most of the defunct metal production

tailings and coal discard dumps are, furthermore, located in close proximity to growing residential

areas, sensitive agricultural areas and/or perennial rivers, resulting in significant water pollution

and environmental degradation through generation of metal-bearing acid mine drainage (AMD).

Due to the inherent inefficiencies of earlier beneficiation processes, many of the historical waste

deposits from the precious metal industries still contain sufficient metal values to allow economic

recovery. Today the reworking and extraction of economic minerals (gold, silver and uranium

oxide) from defunct slimes dams and mine sand dumps makes an important contribution towards

gold production in the country. Angloplats Western Limb Tailings Retreatment (WLTR) plant,

situated near the Brakspruit Shaft in Rustenburg, is also recovering platinum from a number of

dams in the Klipfontein and Waterval areas.

Mineral Resource Efficiency

Whilst historically the minerals industry has processed high grade, easy-to-treat ore bodies, the

availability of high quality ores is steadily declining and mining companies are increasingly being

forced to treat more complex and finely disseminated ore bodies. This has had a significant

impact on metal recovery (process) efficiencies and, in the absence of major technological

development, losses of targeted minerals as well as economically valuable trace and minor co-

constituents are expected to compound in coming decades. Apart from diminished recoveries of

minerals, a decline in ore grades has also been shown to have an adverse effect on the

environmental performance of current beneficiation processes, resulting in higher water and

energy requirements, greenhouse and other gaseous emissions, as well as the volumes and

hazardous nature of solid waste outputs (Giurco, 2005; Norgate and Rankin, 2002; Mudd, 2007).

National Energy Statistics (DME, 2006)

Figure 12: National Energy Consumption 2006


Figure 13: National Electricity Consumption

Figure 14: National Coal Consumption 2006

Figure 15: Energy Consumption Trends 1990–2006


Figure 16: Relative Contributions to National Energy Consumption

Analysis of the Environmental Performance of the South African Minerals

Beneficiation Industry

A sector-based analysis of the environmental performance of the South African primary minerals

beneficiation (ore-to-concentrate or metal) industry has been conducted based on 1999 LCI data

as compiled by Stewart and Petrie, (2006). The key findings of this study are summarised in

Table 9 and presented graphically in Figures 17–25 below.

Annual Statistics

Figure 17: Solid Waste produced by the South African Minerals Beneficiation Industry


Water consumption

0

50

100

150

200

250

Gold

PGM

sec

tor

Coal

Cu b

enef

iciatio

n

Ferro

met

als

Ferro

-allo

ys

Miner

al san

ds

Al r

efin

ing

Znl re

fining

An

nu

al

usag

e:1

999 (

Gl/

a)

Figure 18: Water Consumption by the South African Minerals Beneficiation Industry

Electricity consumption

0

2

4

6

8

10

12

14

16

Gold

PGM

sec

tor

Coal

Cu b

enef

iciatio

n

Ferro

met

als

Ferro

-allo

ys

Miner

al san

ds

Al r

efin

ing

Znl re

finingA

nn

ual

co

nsu

mp

tio

n (

TW

h/a

)

Figure 19: Electricity Consumption in the South African Minerals Beneficiation Industry


Carbon dioxide emissions

0200400600800

100012001400160018002000

Gold

PGM

sec

tor

Coal

Cu b

enef

iciatio

n

Ferro

met

als

Ferro

-allo

ys

Miner

al san

ds

Al r

efin

ing

Znl re

fining

An

nu

al

em

issio

ns (

kt/

a)

NB: Direct non-energy related emissions only

Figure 20: Carbon Dioxide Emissions by the South African Minerals Beneficiation Industry

SOx emissions

0

5

10

15

20

25

30

Gold

PGM

sec

tor

Coal

Cu b

enef

iciatio

n

Ferro

met

als

Ferro

-allo

ys

Miner

al san

ds

Al r

efin

ing

Znl re

fining

An

nu

al

em

issio

ns (

kt/

a)

Figure 21: SOX Emissions by the South African Minerals Beneficiation Industry


Solid waste intensity

0

2

4

6

8

10

12

14

Coal Ferrometals Ferro-alloys Mineral sands

Solid waste intensity

2.60E+05

2.70E+05

2.80E+05

2.90E+05

3.00E+05

3.10E+05

3.20E+05

3.30E+05

3.40E+05

3.50E+05

Gold PGM sector

t w

aste

/t p

rod

uct

Water intensity

0

1

2

3

4

5

6

7

8

9

10

Coal Ferrometals Ferro-alloys Mineral

sands

Water intensity

0

100000

200000

300000

400000

500000

600000

Gold PGM sector

t w

ate

r u

sed

/t p

rod

uct

Electricity intensity

0

5

10

15

20

25

30

35

40

45

PG

M s

ecto

r

Coal

Ferr

om

eta

ls

Ferr

o-

allo

ys

Min

era

l

sands

Al re

finin

g

Znl re

finin

g

Electricity Insensity

0

2000

4000

6000

8000

10000

12000

Gold PGM sector

GW

h c

on

su

med

/t p

rod

uct

Resource and Waste Intensity

Figure 22: Resource and Waste Intensity for the South African Minerals Beneficiation Industry


Eco-efficiency

Eco-efficiency: Solid waste output

0

5000

10000

15000

20000

25000

Gold PGM sector Coal Copper Ferro-alloys Al refining

R v

alu

e/t

waste

ou

tpu

t

Figure 23: Eco-efficiency – Solid Waste Output

Eco-efficiency: Water usage

0

2000

4000

6000

8000

10000

12000

14000

16000

Gold PGM sector Coal Copper Ferro-alloys Al refining Zn refining

R v

alu

e/t

wate

r u

sed

Figure 24: Eco-efficiency – Water Usage

Eco-efficiency: Electricity Consumption

0

5

10

15

20

25

30

35

40

Gold PGM sector Coal Copper Ferro-alloys Al refining Zn refiningR v

alu

e/k

Wh

ele

ctr

icit

y c

on

su

med

Figure 25: Eco-efficiency – Electricity Consumption


Table 9: Environmental Performance of the South African Minerals Beneficiation Industry1

Solid Waste Outputs2 Water Usage Electricity Consumption

1999

outputs

(Mt/a)2

Solid waste

per product

output3

(t/t)

Product

value per

unit waste

generated4

(R/t)

1999

withdrawals

(Ml/a)

Water usage

per product

output3

(t/t)

Product

value per

unit of

water used4

(R/t)

1999

consumption

(GWh/a)

Consumption

per product

output3

(MWh/t)

Product value

per unit energy

consumed4

(R/kWh)

Gold sector 130 2.89E+05 543 240 000 533273 248 4 300 9554 16.41

PGM sector 5 68 3.40E+05 875 120 000 3391 495 2 100 41.8 28.34

Base metal conc 1.9 67.7 - 15 000 1.0 - 850 0.06 -

Copper metal 30 1364 212 18 000 138.5 353 190 1.5 33.47

Coal 53 0.24 1 500 31 000 0.14 617 3 100 0.01 25.62

Ferrous metals 6 3.7 1.1 - 7 700 2.32 - 12 000 3.60 -

Ferro-alloys 2.0 0.55 10 300 4 900 1.35 4 187 14 000 3.9 1.47

Aluminium 0.55 0.85 19 400 n/a - - 9 900 15.2 1.08

Mineral sands 30.5 12.92 - 11 000 4.66 - 3 200 1.4 -

Zn refining 0.001 0.06 432 000 290 1.71 14 907 420 2.5 3.40

Total 7 320 - - 447 890 - - 50 060 - -

1 Based on the LCI data for the mined ore-to-metal system for 1999 (Stewart & Petrie, 2006)

2 Dry basis

3 Provides a measure of intensity

4 Provides a measure of eco-efficiency-based on 2006 commodity prices and 1999 intensity measures

5 Including PGM, Ni and Cu production

6 Includes vanadium and manganese metal

7 Excluding stainless steel production


Appendix C: Summary of South African and International Research Activities

Table 10: Commercial and University Based Research Activity in South Africa

Organisation Location and current activity

Commercial organisations

Anglo Research Two laboratories at Crown Mines and at Knights in Germiston conduct process research. The remaining process research facilities at Germiston are

to be re-located to Crown Mines in the near future, leaving only an analytical laboratory at the Germiston site. At present, the Crown Mines

laboratory is one of the largest and most active mineral process research laboratories in South Africa and, probably, in the world, with facilities for

research into mineral processing and hydrometallurgy. One of the most significant recent developments by this laboratory was the leaching process

for the Skorpion Zinc mine in Namibia.

De Beers Diamond

Research Laboratory

Dedicated to processing research related to De Beers‟ diamond mining operations. It is understood that staff at this facility have been cut

significantly over the last six months and that part of the laboratory may be incorporated into the Anglo Research facility.

Lakefield Part of a Canadian-owned laboratory services group, operating from the site of a former mining company research laboratory. Conducts applied

investigations on ore samples.

Mintek Celebrating its 75th anniversary in 2009, Mintek has played a major role in mineral processing and extractive metallurgical research since its

inception. In recent years, the level of government funding for Mintek has decreased and almost all current research is on a contract basis, proving

new ore deposits or process enhancements. In the past, Mintek played a significant role in the development of the uranium extraction processes,

and the carbon-in-pulp and carbon-in-leach gold recovery processes. It also played a pioneering role in the development of flotation processes for

the treatment of UG2 platinum ores and in the development of plasma smelting technology currently applied in ferrochrome and titanium smelting. In

recent years, however, since MIntek‟s focus shifted to commercial contract work, there have been few technology breakthroughs in mineral

processing and extractive metallurgy credited to Mintek. The most recent has been the development of the Conroast process for smelting high-

chrome platinum metal concentrates. This development has taken place over the past 20 years and has now reached the proving plant stage with a

full-scale commercial furnace in the planning stage. Although Mintek is a Science Council, it has been included under the heading of commercial

research as the bulk of its extractive metallurgical work is commercially driven.

Mintek has provided a training ground for new metallurgical and chemical engineering graduates entering the mining industry, with graduates

tending to move elsewhere after two to three years at Mintek. For this reason, Mintek is faced with the problem of having a number of well respected

senior researchers, but most of whom are approaching retirement, without many younger researchers remaining in the organisation with sufficient

experience to be able to replace the senior researchers.

Exxaro Formerly the Iscor/Kumba pilot plant, this laboratory was taken over by Exxaro when it was separated from Kumba Iron Ore. It has mineral

processing and pyrometallurgical test facilities, which are dedicated to Exxaro‟s process development requirements. Exxaro maintain a strong team

of graduate researchers and encourages them to conduct research work under the auspices of various universities, to enable them to obtain higher

degrees, on projects related to Exxaro‟s strategic needs. The most recent significant development by this laboratory that has been discussed in the

public domain is the „Alloystream‟ process, which is understood to be approaching commercialisation.



University-based research

University of Cape

Town

The Department of Chemical Engineering is probably the most active university research grouping in mineral processing in South Africa. Activities

within the Department fall under the Centre for Minerals Research, the Centre for Bioprocess Engineering Research, the Crystallisation and

Precipitation Unit and the Environmental and Process Systems Engineering Group. The Department also hosts the „Minerals to Metals‟ research

initiative, which fosters collaborative multi-disciplinary research within the Department, the University and with other research and industrial partners.

University of

KwaZulu-Natal

One member of the academic staff is supported by the Minerals Engineering Technology Fund (METF), sponsored by the mining industry. He

supervises a number of research students on mineral extraction-related projects.

University of Limpopo Has a well-equipped molecular modelling research facility, supported by members of the mining industry.

University of Nelson

Mandela Bay

Strong research activity in the field of inorganic chemistry, which has been supported by companies in the minerals industry (mainly in the field of

platinum chemistry) for many years.

University of the

North West

One senior lecturer handles the teaching and research work. Research work is largely in the field of dense media separation. The Chemistry

Department has an active crystallisation research unit.

University of Pretoria The Department of Metallurgical Engineering has one of the largest undergraduate enrolments in South Africa. Research was until recently, mainly

directed towards pyrometallurgy. However, the professor leading the research moved to a university in North America and research suffered.

Research into flotation and milling and environmental issues is also conducted.

University of

Stellenbosch

Until recently (2007) Stellenbosch had a strong research activity in mineral processing, hydrometallurgy and pyrometallurgy, with a full professor and

an associate professor leading the research and some 10 post-graduate students. Over the last two years, the professor has moved to a research

position with a mining company in Australia, while the associate professor has moved into technical management in the platinum industry, so

research momentum has suffered.

University of the

Witwatersrand

Extractive metallurgical research has concentrated on milling and pyrometallurgy in recent years, with professors leading research in both areas,

although the extent of the research activity is quite limited at present.

Universities of

Technology

No mineral extraction-related research is currently conducted at the universities of technology, although some campuses have facilities, which could

be put to excellent use for such research activities if staffing and funding became available.


Table 11: International Commercial and University Based Research Activity (indicative)


Commercial organisations

Anglo American Through Anglo Platinum, Anglo American collaborates with the Johnson-Matthey Research Centre at Sonning in the United Kingdom on

research related to platinum metals refining.

BHP Billiton During 2008, BHP Billiton closed all corporate controlled research centres, including one in Johannesburg, in line with a strategic decision to

have all research run and managed by the various product groups within the company.

Rio Tinto Operate a research centre covering extractive metallurgy at Bundoora in Melbourne in Australia. It is understood that there have been significant

staff cuts at this centre following the onset of the global financial crisis.

Xstrata In buying control of Falconbridge Nickel in Canada they acquired the mineral processing research centre in Sudbury, which has an excellent

reputation in the fields of mineralogy and mineral processing.

Vale-Inco The International Nickel Research Centre, the JRoy Gordon Laboratory in Mississauga in Canada, conducts research in the fields of mineral

processing and pyro- and hydrometallurgy.

Freeport –McMoran

International

Operate a mineral processing laboratory in Safford in Arizona in the United States. The primary focus in recent years has been on bio heap

leaching of copper.

Science Councils

United States The US Bureau of Mines, which conducted research into mining and extractive metallurgy, was closed in the mid 1990s and has not been

replaced.

Canada Canmet, which is at least partially government funded, does some research in the field of extractive metallurgy, usually on a commercial contract

basis.

Australia The Commonwealth Scientific and Industrial Research Organisation (CSIRO) conducts research through its Minerals Division in the fields of

mineral processing, pyrometallurgy, and bio- and hydro-metallurgy. Much of the work is strongly supported by the mining industry through

focussed Cooperative Research Centres (CRC‟s) which are partially funded by government for seven-year periods. Renewal of funding is

dependent on performance of the CRC and continued support by the industry.

University-based research

Europe A professorial chair in mineral processing was recently established at Imperial College in London. The Universities of Aachen in Germany, Delft

in Holland, Lulea in Sweden, and Helsinki University of Technology in Finland, continue to do some research in mineral processing and

extractive metallurgy, with a strong focus on environmental issues. Hacettepe University in Turkey has an active teaching and research program

on milling and flotation.



Canada The University of British Columbia in Vancouver has a strong research activity in hydrometallurgy, particularly pressure leaching, as well as in

flotation. McGill University in Montreal conducts research into milling, flotation and hydrometallurgy. The University of Alberta in Edmonton

conducts flotation research, mainly focussed on the treatment of the Athabasca oil sands deposits.

USA There is limited university-based research in mineral processing and extractive metallurgy in the USA. The University of Utah in Salt Lake City

has a strong research activity in milling and flotation. The Mackay School of Mines in Nevada conducts some research into hydrometallurgy. The

focus of the Colorado School of Mines has largely been on environmental conservation. A number of the well known mining schools have

actively recruited undergraduate students during the commodities „supercycle‟ but research activities have not been prominent in recent years.

Asia Russia produced excellent scientific research in the extractive metallurgy field for many years, particularly related to the refining of platinum

group metals. Since the dissolution of the former Soviet Union, however, this activity appears to have declined. Research activities in India and

China are believed to be extensive, with a number on Indian universities being highly rated internationally, but the research appears to be almost

exclusively focussed on local metal and mineral production industries.

Africa There are a number of good undergraduate teaching schools, including the School of Mines at the University of Zambia, and universities in

Nigeria and Ghana. Research activities appear to be limited as numerous graduates from these universities apply for post-graduate studies at

universities in South Africa.

South America Universities in Brazil and Chile are active in extractive metallurgical research. The focus in Chile is mainly on copper metallurgy, at the

universities of Santiago and Santa Maria in Valparaiso.

Australia The Julius Kruttschnitt Mineral Research Centre at the University of Queensland in Brisbane stands out as a world-class mineral processing

research centre with particular emphasis on milling and flotation. (It is noteworthy that the current and previous directors of the Centre were

trained in South Africa, as were the professors of milling and flotation chemistry). The centre attracts post-graduate students from all over the

world, including Asia, North and South America and South Africa. The Centre has a close collaborative association with the Centre for Minerals

Research at the University of Cape Town, referred to above. The Ian Wark Research Centre at the University of South Australia in Adelaide is a

leader in the field of surface chemistry, with particular reference to mineral flotation. The University of Western Australia in Perth conducts some

mineral related research as does Murdoch University in the same city. The University of Newcastle in New South Wales has an active flotation

research group and the University of Melbourne does some mineral-related research, mainly in the fields of slurry handling and waste deposition.


Appendix D: Proposal for the Establishment of a Pilot Project

Project Title

A comprehensive investigation into the current practice in the processing of UG2 ore.

Background

The survey carried out in preparing this proposal (see Appendix E) identifies that significant

opportunities exist in the mineral processing industry in South Africa for major improvements

in the efficiency of processes with respect to metallurgical performance, energy and water

utilisation, waste disposal, recycling of water, etc. There is, however, a need to identify the

most important strategic opportunities which exist for the introduction of new processes and

technologies which would ensure not only a much greater degree of energy efficiency and

water utilisation but which would also result in significant economic gains. Such an outcome

requires not just an audit of, for example, energy and water utilisation, but a deeper,

technical understanding of the interactions among the various processes used. It is possible

that changing a technology in one part of the overall process that aims at improving, for

example, energy efficiencies may have an unintended negative consequence elsewhere in

the process chain in terms of recovery of the metal. Only a careful technical/engineering

analysis of the entire process will be able to ensure a full understanding of these factors.

The overall aim of establishing SAMMRI, as described in the proposal, is to ensure that

South Africa develops, in its mining and mineral processing industries, the level of expertise

with respect to both skills and technologies that will ensure its long-term sustainability. This

requires that the best possible methodology is identified to ensure reasonable confidence

that the correct choices will be made in terms of where and how to invest research funds.

The purpose of the pilot project will be to develop a much better understanding of the key

technical interventions that need to be made in order to achieve this long-term sustainability.

In developing this understanding and in carrying out this pilot project, a number of key

indicators will be identified which will be used generically in the future in investigations into

ensuring that best practice is followed in the treatment of any of the country‟s key ore

reserves such as iron ore, ferrochrome, coal, etc. In terms of these indicators, one example

relates to the production of CO2 emissions, either directly or indirectly. It is common cause

that there is an urgent need globally to develop technologies that are more energy efficient

and which minimise the increase in CO2 emissions. In addition, given that the mining

industry is both a major user of energy (~20% of our electricity) and a major contributor

through both direct and indirect contributions to GHG emissions, this will be one of the

factors incorporated into the study.

Another example of an indicator is water utilisation and treatment. Although the industry only

consumes between about 8% of the country's water, one of the major challenges that the

industry already faces is the impact that the quality of this water has on the efficiency of the

processes used in the minerals industry. Moreover, even though the industry relatively does

not consume much water, mines are frequently located either in areas where water is a

particularly scarce commodity or in peri-urban areas where there is greater competition for

water for domestic and industrial use. Tailings disposal from mining and minerals processing

industries represents a major challenge globally. Thus, tailings disposal will be an indicator.


Another key indicator to be investigated in the study may be the opportunity to introduce

processes which not only reduce energy consumption and improve the efficiency of energy

utilisation but which may also have a significant impact on job creation through, for example,

the extended public works programme.

The Project

Possibly, the key mineral resource South Africa has at its disposal and going into the future

is the platinum group minerals (PGMs). One of the most significant challenges the industry

faces in this regard is the development of highly efficient processes to treat the so-called

UG2 ore body. This problem is generic to all the major platinum producers in South Africa.

Given that South Africa currently produces most of the world‟s platinum and possesses most

of the known reserves, it is obviously of key long-term importance that major attention be

given to issues relating to the efficient processing of ore bodies containing PGMs. The

successful implementation of many added-value projects (e.g. the H-economy initiative) are

predicated on highly efficient processing of these ores. This pilot project therefore aims to

identify the key areas on of focus, for the next 5 or so years, in order to achieve this.

UG2 ore has a diverse range of technical difficulties/issues associated with its processing. In

addition, an investigation into the processing of UG2 ore offers crosscutting research

opportunities in the areas of process efficiency and technology, resources and the

environment and socio-technical issues.

Process efficiency and technology: The processing of UG2 ore, due to its complex

mineralogy and high chrome content, offers numerous opportunities for research into

process efficiency and technology. Potential projects include the effect of blasting on

liberation, chrome rejection through pre-treatment/ore sorting, novel comminution

technologies, novel flotation processes/technologies for producing high-grade

concentrates and improving the flexibility, operability and availability of smelters.

Resources and environment: UG2 is an ore of strategic importance. It is self-

evident that the efficient processing of this valuable resource is essential. In addition,

research into the processing of UG2 offers opportunities for a variety of projects in

energy and water minimisation. Potential projects in the area of energy reduction

include pre-treatment/ore sorting, novel comminution technologies, production of

high-grade concentrates and waste heat recovery from smelters. Potential projects in

the area of water include mine-site water reduction and the effect of water quality on

processing.

Socio-technical issues: New UG2 concentrators are often located in rural

communities and, in certain cases, may partially displace an existing community.

There are significant opportunities for researching the relationship between the mine

and its rural community. Potential projects include investigation of shared water

resources and sustainable mining communities (e.g. planning for mine closure).

Funding and Budget

Should funding be provided by the DST for the pilot project it is assumed that there will need

for in-depth discussions on how budgets are prepared and managed to comply with DST


rules and regulations. The budget will also be dependent on a full scoping of the project.

However, in general, the budget would be developed along the following lines:

Table 12: Budget for the Pilot Project

Category p.a. payment Est. p.a. Est. total p.a.

20% buy-out of time of full time research or

academic staff at universities or science councils

R130 000 5 R650 000

Post-graduate students R120 000 8 R960 000

Full time research staff R400 000 4 R1 600 000

Operating costs 25% of total R2 500 000

Admin costs 20% of total R1 800 000

Proj.Manager* R200 000 R200 000

TOTAL (p.a.) R7 710 000

*When SAMMRI is fully operational, this would be a senior, experienced person earning in the region

of R800 000 p.a. For the pilot project, this would be at 25% of full time.

It is expected that in order to have a significant impact on the long-term future of the mineral

processing industry, annual funding for SAMMRI in the region of R30–40m would be

required. It thus implies that such funding could sustain, at any one time, 4–5 major projects

of the scale envisaged in the pilot project proposal.

Project Management

It is proposed that the Pilot Project will require for management purposes:

a „champion‟ who will have overall responsibility for ensuring delivery of the research

outputs on time and within budget

a project manager who will oversee all the administrative aspects of the project

leaders in each of the centres identified as research providers.

These components will then constitute a Project Steering Committee. For the purposes of

implementation, should it be agreed that the pilot project be funded, the project will be

publicly announced to all potential research providers and a general meeting held to explain

the objectives of the project with a view to inviting proposals from research providers to

participate in the project. It is suggested that a committee consisting of representatives from

Industry, Government and the Research Community be formed to evaluate such proposals.

Factors which it may wish to consider for this purpose may include:

track record of applicants

critical mass of group and potential to deliver quality on time

potential contribution to production of M and D graduates

prospect of long-term sustainability of further research in this field

financial commitment from applicants


opportunity for developing significant competence and capacity

empowerment/capacity-building factors.

Once these proposals from research providers have been approved, each sub-project will

need to be fully scoped and budgeted using an agreed methodology. It is hoped that it will

be possible to reach closure on this process by the end of the third quarter of 2009 and that

the pilot project can go live in 2010.


Appendix E: The Review Study

E1: Overview of the Review Study

Objectives of the Study

The purpose of the study was to evaluate the status of the South African Mineral Processing

Industry to identify its strengths and weaknesses as well as the opportunities that exist to

ensure its long-term sustainability by enabling access to leading-edge technologies,

inherently safe processes and high-level skills, to enhance the industry‟s profitability and

environmental sustainability, while reducing its demand for key resources such as energy

and water.

Specific areas of investigation included the following:

A survey of current mineral processing practice in the industries in which South Africa

is a world leader in terms of production, including platinum group minerals, gold, coal,

chromium, vanadium, titanium, zirconium and fluorspar.

Identification of the key processes currently used in the mineral processing industry,

including comminution, flotation, gravity separation and concentration, and bio- and

hydrometallurgical and pyrometallurgical processes.

Identification of the opportunities that exist for making significant improvements in the

industries and processes in 1 and 2 above. This includes identifying opportunities

that could provide rapid reductions in energy and water usage, and those that

through an intensive long-term national effort, could place the South African industry

in the forefront globally in terms of leading edge technology.

Development of an analysis of the value proposition associated with the SAMMRI

proposal, to illustrate the added-value investment it could yield for South Africa.

Identification of the existing skills gaps that must be filled in order to achieve the

goals of SAMMRI, as the development of technological advances will need to be

accompanied by a parallel national effort to increase the number of adequately

skilled people available to both the Minerals Processing Industry and the Research

Providers.

Identification of the number of researchers involved in mineral processing research at

universities and at science councils in South Africa and globally.

Study Methodology

The study team interviewed a range of senior technical people in the areas of focus in the

South African Minerals Processing Industry, as well as a number of active research

providers in the minerals processing field at the universities and science councils. Interviews

were also conducted with members of the Department of Science and Technology.

As far as possible, current South African mineral processing industrial practice was

compared with existing practices in similar industries elsewhere in the world, and current

mineral processing research programmes, both in South Africa and globally, were reviewed


to establish the current techno-economic status of the South African industry and the

opportunities for research.

Based on the interviews and the comparison of local practices and research activities with

those elsewhere, a „SWOT‟ analysis of the South African Mineral Processing Industry, was

conducted in order to facilitate the preparation of a technology development roadmap for the

local minerals processing industry and vision for the future of the industry and SAMMRI‟s

role in fulfilling that vision.

The roadmap and the vision addressed, in particular, the following topics:

The current contribution of the Minerals Processing Industry to the South African

economy and GDP by Industry sector (platinum, gold, coal, etc) in terms of:

o Total value added

o Quantities of products produced

o Number and skills levels of employees

The current level of competitiveness of the Industry compared with the global

Minerals Processing Industry

The envisioned contribution of the Industry to the GDP in 5, 10, and 15 years taking

into account:

o If no technological advances are made

o The potential gains which could be expected from the outcomes of research,

leading to innovation and the development of high level skills through:

production increases

improved efficiencies

improved ore reserve utilisation

the implementation of new technologies

The constraints on the Minerals Processing Industry resulting from the costs and

availability of energy, water and skills and from environmental and sustainability

concerns

Review of the extraction and beneficiation processes used in the Industry (by sector)

including:

o Comparison with global practice

o Identification of areas of greatest and worst efficiencies in terms of recoveries,

costs and utilisation of resources (capital, water, energy and environment)

o Opportunities for the transfer of technologies between Industry sectors

Review of the annual production of graduate and post-graduate chemical,

metallurgical and mineral processing engineers in South Africa, including

considerations of:

o Current intake and graduation levels by university


o Post-graduate enrolment and annual graduation rate by university

o Emigration of graduates over last 10 years:

Country of destination

Minerals industry positions taken up

Research positions taken up

In-company transfers

Interviews

Interviews were conducted, mainly face-to-face but in a few instances by phone, with 30

people in senior technical positions in the minerals industry and in senior research positions

at universities and science councils, both locally and overseas. Details of the people

interviewed are listed in Appendix E2. The interviews asked the following key questions that

needed to be answered to prepare this proposal:

1 Can you provide a „SWOT‟ analysis of mineral processing in your segment of the

industry, in South Africa and globally.

2 If you could invest an unlimited amount of money and resources in R&D in your

company, where would you make this investment?

3 What is the research area you cannot afford not to be in? What is it that you don‟t

know about this research area?

4 What do you believe would be an ideal pilot research project to demonstrate the

effectiveness of the SAMMRI initiative?

5 What is your vision for your industry in 10 years? – In 20 years? What will/could

prevent you from achieving this vision?

6 What are your needs for graduate and post-graduate engineers in the field of mineral

processing? – In 5 years, 10 years and beyond?

The detailed notes taken during these interviews are contained in Appendix E5 of this

document and they form the basis for much of the analysis included in this proposal.


E2: List of People Interviewed

Name Date Company Position Industry Type of

Interview

1 J Theron 20090120 Impala

Platinum

Group

Executive:

Human

Resources

(formerly

Consulting

Metallurgist)

Platinum In person

DAD, PGG

2 P Dempsey 20090121 Anglo

American

Vice-president,

Metallurgy

Base Metals In person

DAD, PGG

3 R Paul 20090121 Mintek General

Manager:

Technology

Mineral

Processing

Research

In person

DAD, PGG

4 V Ross 20090122 Lonmin Consulting

Metallurgist

Platinum In person

DAD, PGG

5 J Eksteen 20090122 Lonmin Consulting

Metallurgist

Platinum In person

DAD, PGG

6 N Plint 20090204 Anglo

Platinum

Manager: R&D Platinum In person

DAD, PGG

7 S Lambert 20090204 Retired

(Anglo

Platinum)

Adjunct

Professor,

UCT

Platinum &

Mineral

Processing

Research

In person

DAD, PGG

8 J Ndlovu 20090204 Anglo

Platinum

Technical

Director

Platinum In person

DAD, PGG

9 L Nelson 20090205 Anglo

Platinum

General

Manager:

Smelting &

Refining

Platinum In person

DAD, PGG

10 C Rule 20090206 Anglo

Platinum

General

Manager:

Concentrated

Technology

Platinum In person

DAD, PGG

11 J Gaylard 20090207 Pretoria

Portland

Cement

Group

Operations

Services

Manager

Cement In person

PGG

12 A McKenzie 20090217 Mintek Head of

Mineral

Processing

Mineral

Processing

Research

In person

DAD, PGG

13 L Simpson

20090218 Department of

Science &

Technology

Programme

Manager

Government In person

DAD, PGG,

FP

14 M Halhead 20090218 Retired (Anglo

Platinum)

Consultant

(Former

Technical

Director)

Platinum In person

PGG

15 D Power 20090219 Anglo Coal Manager: Coal

Processing

Coal In person PGG

16 M Adams 20090224 Careerwise Graduate

Development

In person

DAD, PGG


Name Date Company Position Industry Type of

Interview

17 R Baxter 20090224 Chamber of

Mines

Economist Mining

Industry

In person

DAD, PGG

18 D Kruger 20090224 Chamber of

Mines

Coaltech Mining related

research

In person (with

R Baxter)

DAD, PGG

19 R Dunne 20090225 Newcrest Vice President

Metallurgy

Gold & Base

Metals

In person

CTOC

20 R Hoan Yoon 20090225 Virginia

Polytechnic

Institute

Professor Minerals

Processing

Research

In person

CTOC

21 R Shaw 20090311 Rio Tinto General

Manager

Technology

Minerals

Processing

Research,

Aluminium,

Copper, Iron

Ore,

Magnesium,

Mineral Sands

By phone

PGG

22 J Cilliers 20090313 Imperial

College

Anglo – Rio

Professor of

Mineral

Processing

Minerals

Processing

Research

By phone

DAD

23 M du Plessis 20090317 Exxaro

Resources

Manager,

Technical

Advisory and

Innovation

Titanium,

zinc, coal

In person

PGG

24 M de Wit 20090317 UCT Director,

AEON

Geological

Research

In person

DAD

25 F Petersen 20090318 UCT Dean,

Engineering

Minerals

Processing

Research

In person

DAD

26 R Clift 20090330 University of

Surrey

Professor Environmental

Technology

In person

DAD

27 N Baartjes 20090402 Mintek Manager,

Mineral

Economics

and Strategy

Mineral

Processing

Research

In person PGG

28 R Beck 20090402 AMIRA

International

Research

Director

Mineral

Processing

Research

In person PGG

29 P Charlesworth 20090414 Anglo

Platinum

(retired)

AMIRA

International

Manager R&D

Director

Platinum

Mineral

Processing

Research

In person PGG

DAD: D Deglon

PGG: P Gaylard

CTOC: C O‟Connor


E3: Proposal Interview Questionnaire

This interview questionnaire is a copy of what was sent to all participants in the study who

agreed to be interviewed.

Introduction

A concept proposal has been developed by a group, led by representatives of the major

South African mining companies and key research providers from universities and science

councils, for the establishment of a national „virtual‟ institute, provisionally named „The South

African Minerals to Metals Research Institute‟ (SAMMRI). The aim of SAMMRI will be to

ensure that South Africa is adequately equipped with both the necessary high-level skills and

the world-class technology to ensure the long term techno-economic sustainability of its

mining industry, which represents a key sector of the national economy.

The SAMMRI conceptual proposal was presented to representatives of the Department of

Science and Technology, who supported the concept but recommended that a

comprehensive review of the status of the South African mineral processing industry be

conducted, in order to inform fully the final proposal for significant long-term funding for the

establishment of SAMMRI. The Department has provided „seed funding‟ to enable this study

to be completed, and for the preparation of a full proposal for the establishment of SAMMRI.

The funding is also to prepare a proposal for a significant pilot project to address one of the

critical research needs identified during the study, to be co-funded by government and

industry, and to serve as a demonstration project to develop an appropriate methodology for

future SAMMRI projects.

Objective of Study

The purpose of the study is to evaluate the status of the South African Mineral Processing

Industry, to identify its strengths and weaknesses and the opportunities that exist to ensure

its long-term sustainability, by ensuring that it has access to leading-edge technologies,

inherently safe processes and high level skills, to enhance the industry‟s profitability and

environmental sustainability, while reducing its demand for key resources such as energy

and water.

Scope of Study

Specific areas of investigation will include:

A survey of current mineral processing practice in the industries in which South Africa

is a world leader in terms of production, including platinum group minerals, gold, coal,

chromium, vanadium, titanium, zirconium and fluorspar.

Identification of the key processes currently used in the mineral processing industry,

including comminution, flotation, gravity separation and concentration, and bio- and

hydrometallurgical and pyrometallurgical processes.

Identification of the opportunities that exist for making significant improvements in the

industries and processes in 1 and 2 above. This will include identifying opportunities

that could provide rapid reductions in energy and water usage and those which,


through an intensive long-term national effort, could place the South African industry

in the forefront globally in terms of leading edge technology.

Development of an analysis of the value proposition associated with the SAMMRI

proposal, to illustrate the added-value investment in the Institute could yield for South

Africa.

Identification of the existing skills gaps that will need to be filled in order to achieve

the goals of SAMMRI, as the development of technological advances will need to be

accompanied by a parallel national effort to increase the number of adequately

skilled people available to both the Minerals Processing Industry and the Research

Providers.

Identification of the number of researchers involved in mineral processing research at

universities and at science councils in South Africa and globally.

Key Questions

The key questions that need to be addressed in preparing the study are:

1 A „SWOT‟ analysis of mineral processing in your segment of the industry, in South

Africa and globally.



3 What is the research area you cannot afford not to be in? What is it that you don‟t




5 What is your vision for your industry in 10 years? – In 20 years? – What will/could





E4: Outcomes of Interviews (Key Questions)

1 A ‘SWOT’ analysis of mineral processing in your segment of the industry, in South

Africa and globally

STRENGTHS

Processing

Technology, Efficiency, Operations, Expertise

Resources & Environment

Ore reserves, Energy, Water, Environment

Fine grinding

Deep level mining

Mineralogy, chemistry, hydrometallurgy,

mineral processing, platinum refining,

microwave processing

Low cost producers

Cost base lower than Australia, USA and

Canada

Technology leaders in fundamental research

(energy efficiency)

State of the art coal processing plants

Good plant physical condition

Good understanding of benchmarking

Strong management with technical focus (&

commitment to safety)

Good resource base

Primary resources and reserves (World No 1

in PGM, Mn, Au, Cr2O3, vermiculite, V &

andalusite; No 1 or 2 in Ti & titanium slag; No

5 in U reserves; No 6 in Fe ore reserves; No 8

in coal reserves)

Shallow ore reserves & long life of mine

Ore reserves (Bushveld Igneous Complex is

the best ore body in the world for quality &

accessibility)

Ore reserves, but a lot is still undiscovered.

Coal & uranium reserves

World-class ore reserves

Mineral resources

Cheap electricity (but changing)

Cement kiln energy recovery (30% reduction

in 30 years by waste heat recovery)

Skills

Technical skills, Graduates, Postgraduates

Socio-Technical

Industry, Society, Government, Economy

High quality engineering schools

Mineral expertise in South Africa (few key

individuals at research institutions)

Access to quality mineral R&D (few key

research institutions)

Best smelter technical skills in PGM industry

Strong PMR technical skills

Technical skills in concentrators and base

metals refining

Good knowledge base for processing South

African coal

Depth in mineral processing at certain

universities

Good infrastructure (power, rail, roads, banks)

Transport infrastructure

People are interested in Mining (unique to

South Africa)

Sunshine

Mining is a significant portion of the GDP

(guide government strategy)

Minerals industry is fundamental to the

economy

Resource industry is strong and supported by

the manufacturing base

Long mining history

R&D culture in mineral processing

International mining companies understand

the need for R&D

DST understands the role of the minerals

industry in South Africa (beneficiation and

value-added)

Government support (particularly from the


DST)

Active R&D participation from industry

Coordination of research and alignment

Industry capability and „can do‟ attitude

Very good SMEs supported by industry

Willingness to use new technologies

Ability to adapt to change and innovative

processes (change, develop and improve)

WEAKNESSES

Processing




Safety issues (zero harm, silicosis)

Company focus on shareholder return (fast

followers rather than innovators)

Pyrometallurgy, bioleaching (continuous and

heap leaching)

Hydrometallurgy

Tendency to work in „silos‟

Lack of systems to manage technology

Understanding of alternative (non-mainstream)

technologies (leaching technology)

Operational technical support; gaps in

understanding technology and having the right

people available to drive the technology

PMR uses old technology and better

understanding of the process is needed in the

BMR (silica entrainment, tellurium precipitation,

interaction between smelting & refining, the

effect of converter blowing practice on matte

milling and leaching kinetics, control of mineral

speciation)

Implementation of newly developed technology

and technology transfer

Pyrometallurgy is „close to dead‟

Conroast process not efficient (must be better

ways to smelt high chrome PGM concentrate)

Equipment reliability

Management of operations at plant level,

particularly plant maintenance, leading to plant

breakdowns, as well as poor cost control

Many plants are old

Innovative technologies have not been matched

to abilities of the people using them (similar

situation exists in Chile, Escondida)

Stable staff are more important to successful

operation than high technology and technical

management

Technology (energy intensive &

environmental footprint)

Industry uses too much energy and water

and doesn‟t recover enough (operates at

nowhere near the thermodynamic limit)

We grind a lot of material with no value

We use a lot of water and don‟t recycle

enough

We use water of a higher quality than

necessary


Skills


Socio-Technical


Expertise in the hands of a few individuals

Small R & D capability (need process specialists

with research competence)

B.Tech recruits lack the necessary skills

BMR technical staff levels are low

We have never had to be innovative and this

has affected our skills base

Universities of Technology with low graduation

success rates ( & graduates are not equipped to

manage modern technology)

Minimal R&D in mining and metallurgy at key

academic institutions (eg Wits)

Shortage of skills needed by the industry

(pyrometallurgy and precious metals refining are

weak)

Core of skills problem lies with education and

education policies (enough people with maths

and science?)

South Africa produces many entrepreneurs but

one doesn‟t see this entrepreneurial approach

amongst engineers

Senior mining executives around the world have

a South African background (we are developing

people but not retaining them)

Few academics in pyrometallurgy and R&D in

pyrometallurgy is weak (data is missing,

equipment and skills are not there, Mintek is

doing very little)

Graduates don‟t want to work in plants (B.Tech

graduates and diplomates do)

General scarcity of real technical skills

(particularly in process and mechanical

engineering)

Loss of experienced people through emigration

Lack of artisan training

Training of mining, mechanical and electrical

engineers and plant training of operating

personnel

Technology transfer because of inadequate

managerial and technical skills

Scarce or limited coal preparation skills and

competencies

Experienced and competent people lost through

retirement and emigration

Shortage of experienced lecturers and absence

of long-term fundamental research

R&D being outsourced to Australia

Government structures, BEE requirements,

mineral rights, new royalties bill (revenue

based)

Industry is resource-based (sells raw

commodities; SA produces 40% of the

world‟s FeCr but only 1% of the world‟s

stainless steel)

Size of the domestic consumption market &

cost of capital

Integration of value chain at a high level

Current status of Mintek and CSIR

Government legislation and compliance

(safety, environment and water)

Lack of government incentives to produce

finished products

Too many minerals linked to the steel

industry (iron ore, chromite, vanadium,

manganese, titanium and fluorspar)

Industry safety record

Unemployment from mining contributes to

social problems

Transport distances for both products and

raw materials

Dependence on coal and the rate at which

coal prices have increased recently (gas

prices are very high)

Lack of a SA roadmap for mineral industry-

related research (CSIRO prepared a

technology roadmap and the copper road

map was presented at an SME meeting)

Lack of research coordination (tend to work

in silos)

Lack of coordination between research

institutes

A bench-marking exercise is missing and

would compare the industry on the world

stage (are we leaders or are we behind the

rest of the world? If we shift our position,

what value would it create? Is there

something unique in what we are doing?)

Regulatory issues

Image of industry as a „dirty‟ industry

discouraging careers (particularly in mining,

metallurgy and geology)

Poor interaction between industry and

universities


OPPORTUNITIES

Processing




Improved concentrator extraction efficiency

Tailings retreatment

Breakthrough technology

Processing of lower grade feeds

Mechanised mining (wider mining width)

Alternatives to milling & electrowinning

Dry upgrading technologies

Improved cost effectiveness of mineral

processing, smelting and refining

Operating at lower cut-off grades

Underground processing (Gekko Systems have

introduced a process)

Treatment of complex ore bodies (Platreef, new

technology, use of HPGR)

Tapping existing value (tailings treatment, chrome

tails, toll treatment, re-vamp and re-invent parts of

operations)

Creating new value through joint ventures

Generating value by improving existing

operations

Low-cost producer (continuous improvement,

slow follower of new technology)

Production of sulphuric acid in the smelter

Better control of converting practice

Better plant optimisation

Better solid-liquid separation in BMR; Upgrade of

technology in PMR (incorporation of molecular

recognition technology); Improve first pass yields

of the OPMs

Operating at reduced furnace temperatures

Alternative UG2 treatment routes (possible

hydrometallurgical treatment of concentrate)

Dry granulation of slags

Shorten PGM refining pipelines through better

technologies

Improved process efficiencies with better reagent

usage

Technology transfer and better recoveries

through better disciplined operation

Improved reagent usage through centralised

control of reagent testing

Laboratory automation and on-line process

control (for process optimisation)

Recovery of low-grade coal resources (classify

discard dumps for fluidised bed combustion,

Renewable energy

Better ore reserve utilisation

Energy saving (upgrading of ore

underground, reducing hoisting energy

usage, waste heat recovery in smelters,

improved compression & refrigeration)

Energy savings

Improved energy efficiency (better mine

grades through improved mining methods

and ore sorting technology, higher

concentrate grades achieved by halving

mass pull)

New technology to obtain the lowest

possible thermal demand and CO2

emissions

Use of secondary fuels and waste

materials

Research into water and energy usage

Conserve energy and water by separating

the minerals from the gangue before fine

grinding (ore sorting)

Tackling the environment

Energy usage optimisation and alternative

energy sources

Clean energy from coal

CO2 sequestration


implementation of fine DMS project, drying of fine

and ultra-fine coal, develop washing processes

for low grade RSA coal e.g. slimes & dumps)

Increased R&D in comminution (HPGR, waste

removal, mineralogy in the ½” to 1” size range,

liberation data)

Coarse particle flotation

Better process control (few suppliers, 50% of

control instrumentation is either turned off or so

“out of whack” as to be useless, Aluminium

Industry is far ahead, AMIRA P902 project

surveyed Chilean copper concentrator process

control and concluded that all the money spent on

control systems had been in vain – Performance

of plants was a function of quality of workers)

Use of advanced mathematics to control grinding

mills (narrowing the spread of the operating

window could give a 5% improvement in plant

performance)

Alternative technologies to improve the way we

process ores (develop dry processes)

Diamond flotation

Coal de-watering (down to 1% with very fine

grinding and new reagents)

Hyperbaric centrifuging

Skills


Socio-Technical


Mineral industry still attracting bright black youth

and top white students (debt owed to Anglo

American as industry champions in promoting the

industry at schools & universities)

Skilled people returning from Australia

Sufficient graduates from local universities

Recovery of lost technical staff through returning

emigrants

Train engineers and retain them (Wits Chemistry

Department working with the Oxford Group to

train 4th year students in entrepreneurial skills,

starting own businesses while still studying)

Creation of teams of excellence

Encourage graduates to follow the pyrometallurgy

post-graduate training route

Attract, retain & sustain skilled people, also cross-

discipline training

People returning from Australia

Promote coal at universities and work closer with

education and training institutions to educate and

train for coal preparation skills

Easier to get project managers (people returning

from overseas)

Young people are positive about the

mining industry (often because their

parents were supported by the Industry)

Young people want to study engineering

(need the resources to train them)

Government legislation to create

investment opportunities (move away from

the „dig and ship‟ mentality to upgrading

minerals & producing finished products)

Broaden the mining base (including

uranium and coal)

Bench-marking against other industries

Use current economic crisis to ramp up

R&D and attract graduates back to South

Africa

Government requirement for downstream

processing

Opportunities arising from government‟s

policy on mineral rights („use it or lose it‟)


THREATS

Processing




Poor extraction efficiency

No new breakthrough technologies (last was

SX in the 1960s; since then efficiency

improvements achieved through leveraging

the scale of operations)

Smelter attack by labile sulfur (associated

with pyrite, on copper coolers)

Efficiency of grade-recovery in new PGM

mines (PGM are held in silica-based gangue

materials, high pyrrhotite content in

concentrate leading to furnace matte fall of

55% which impacts on converting capacity,

dumping calcium sulphite from the smelter

scrubbers)

Succession planning

Management systems (lack of structure and

focus not always there)

Management overconfidence („We think we

are a lot better than we are!”)

Burnout (people retiring at the age of 50)

Mining costs (because we mine badly)

Coal processing becoming marginalised

compared to other commodity processing

Technology doesn‟t give lengthy advantage

Power and water supply situation

Metal recycling and the „cradle to grave‟

concept

Water and energy usage and efficiencies

Electrical power (availability, cost and carbon

footprint, Lifecycle analysis should be

conducted on electrical power generation and a

case made for carbon credits on metal and

mineral exports)

Energy and water requirements in comminution

Ore bodies are getting more difficult to process

(in general)

Costs of power, steel and labour

Energy prices, the environment, carbon tax

Environmental issues (worst in tropical areas

with high rainfall)

World-wide focus on the environment (industry

must take action)

Lack of water

Lower grade ore resources

Skills


Socio-Technical


No longer attracting cream of

undergraduates to bursary schemes

Cannot retain graduates with higher degrees

(culture issue)

Quality of university graduates (lack of

experience, take longer to become useful)

Quality of technical personnel and academic

staff

Loss of competencies

Loss of personnel and university personnel

Loss of research competence and

management (eg Debtech cutting staff from

± 128 to ±55)

Skills shortage

Loss of key skills

Loss of competent people skills base in all

engineering disciplines from apprentices to

graduates (3% pass rate for mine managers‟

certificate of competency)

Mining used to be seen as a “sexy” industry (no

longer the case, seen as global industry)

Substitution of platinum and thrifting in

autocatalysts

Ability to continue to sustainably produce

metals at a price acceptable to the market

Resource wars, product custodianship (eg

recycling of autocatalysts)

Safety record

Conservatism of the banks (risk averse)

Need for capital expenditure to sustain

production

Economics and legislation (zero pollution and

zero harm to employees and the environment

will constitute our „licence to operate‟)

Retrenchments in the Industry due to the

economic downturn (affect image of industry)

Social problems

Effect of government legislation and


High loss of mining graduates from the

industry

departmental inefficiency on investment

opportunities (eg delay in mineral rights)

Government skills levies don‟t get paid out

Safety

Ageing mining workforce

Compliance with legislation (licence to operate)

Substitution and thrifting

Platinum market and tighter legislation

(particularly relating to water)

Lack of industry action (Doing nothing, by which

you ultimately undermine yourself)

Declining funding for research

Overproduction of metals leading to oversupply

(competitiveness driven by who has the best

ore bodies and who can control energy costs

and who can operate best)

Infrastructure (establishing remote mining

operations and the cost of getting the product to

the market can be higher than the cost of the

processing plant, China is good at low capital

plants and at infrastructure)

Global economic crisis in terms of developing

the mineral processing environment



Mining & Exploration

Mining, Exploration, Geometallurgy, Mine-to-Mill

Mineral Processing

Ore sorting, Size Reduction, Concentration

Mine to product optimisation

Better fragmentation in the mining area

Geometallurgy (sponsored through the Centre

for Sustainable Resource Processing)

Mining

New mining technology (cost efficient)

Automation in mining (why mine waste?)

Mining logistics (application of retail tracking

systems and the associated IP to mining)

Liberation and waste rejection (PGM industry

underground losses are 30%)

Next generation of „mine-to-mill‟ (establish the

optimal way to handle the extraction process

from blasting to comminution)

Automated mining (stop sending people

underground, „laser surgery‟ mining to provide

more sustainable extraction of minerals with a

lower energy footprint)

Instantaneous measurement of mined product

and plant feed

Milling and flotation

Vertical roller mills, more efficient forms of

screening, combination of HPGR and VRM

Ore sorting (three sensor ore sorter)

Impact of water quality on flotation

Improved milling (efficiency & energy)

Comminution, ore sorting (ahead of the

processes with high energy costs)

New comminution technologies (HPGR, fine

grinding, saving in energy and grinding media

consumption)

Tumbling mills are „unimaginative‟

Column flotation


New comminution technology (cost efficient)

Process mineralogy (chemical mineralogical

capability mainly for concentrators and

intermediate products in smelter & refineries)

Mineral processing automation (use of IT for

training e.g. play station technology)


Robust equipment (design & materials of

construction)

Intensification of process unit operations

(smaller and faster)

Liberation and ore sorting (PGM industry

processing losses are 20%)

Classification and screening (fines)

Better concentration process (liberation is key,

dry processing)

New milling technology

Flotation concentrate grade and mass pull

Fines flotation (liberated fines that don‟t float)

Control of chrome in flotation concentrates

Vertical roller mills (by Loesche) for cement

clinker grinding

On-line neutron activation analysis of

limestone feed for cement

Process control, instrumentation, stabilise

existing processes (how to run what I‟ve got

better)

Up-front processing and tailings treatment

Ore sorting and early separation of minerals

(particularly with large tonnage open cut

mining, where the cost of mining is low and

processing may cost more than discarding)

Coarse particle liberation, preferential

liberation and breakage methods (eg

shockwaves)

Metal Extraction

Leaching, Smelting, Refining

Resources, Environment & Socio-Technical

Resources, Environment, Socio-Technical

Alternative technologies (leaching for the

upgrading of low-grade concentrates)

Hot stage x-ray diffraction, speciation

modelling in the BMR and PMR

Process intensification in refineries (we use

too many processing steps, use micro

technology such as pharmaceutical industry)


construction)

Intensification of process unit operations

(smaller and faster)

Electrowinning in base metals refineries

(closed cell technology to control fume

emission and conserve energy)

Leaching of low-grade concentrates

Reduce water (flotation) and power (milling)

consumption

Improved safety

Energy efficient comminution (tumbling mills

consumes 6% of the global energy supply)

Reduced water and energy consumption

Iron ore beneficiation

Dry processing (water supply threats,

eliminating flotation)

Titanium processing and platinum refining

Research into UG2 ore processing

Ti metal production

Processing of the Waterberg and other lower

grade ore deposits to be viable (include dry

processing, a re-evaluation of reserves in

terms of matching the reserve to creating

alternative markets and deriving extra value

from existing offerings)


Water and energy usage reduction

Water treatment by reverse osmosis (dirty

mine water)

Renewable energy

Minimisation of water and energy usage

Building up new competence and the capacity

to do R&D

Water recovery from concentrate driers

(ensure water is re-used multiple times)

Encourage entrepreneurs (find more efficient

ways to beneficiate ores)

Water and water quality (we can clean the

water when necessary)

Energy efficiency and the environment (key

drivers are thermal and electrical energy and

CO2 emissions)

Develop human capital by bringing in high

level experienced research people

Water is not the driver people think it is

(unless you haven‟t got any, water is very

cheap, data on water usage is limited)

Water, energy & environment (developing

more energy efficient processing routes,

processes with zero effluent)

Disposal of wastes (disposal of gangue

products from ore sorting)

Disposal of trace elements Most important

area is comminution, then environmental, then

maybe smelting because of cost of electricity

Most important area is comminution (energy),

then environmental then maybe smelting (cost

of electricity)

3 What is the research area you cannot afford not to be in? What is it that you don’t




Mineral Processing


Mining and 3D sensing

Mine design

Geophysics, geochemistry

Mineralogy and geometallurgy (integrating

mine-to-mill with metallurgy)

Microwave pre-treatment, electrodynamic

separation

Comminution and classification (fine

screening at 100µm)

Process modelling and simulation

Water quality (impact of impurities on flotation

efficiency)

Process mineralogy (ore and mineral

characterisation)

Automation


Plant variability


construction)

Metal Extraction




Chloride metallurgy, pressure leaching

Pyrometallurgy (waste heat recovery from off

gases and sensible heat from slags)

Conroast process

Uranium extractive metallurgy (solvent

extraction in pulsed columns, ion exchange,

resin in pulp and pressure leaching)

Automation

Plant variability


construction)

Ore resource utilisation

Energy & water efficiency

Dry processing

Economic treatment of poorer ore grades (eg

nickel laterites)

Research with a global impact

Water management

Areas related to climate change and the

environment (can we continue to operate?)

Dry processing

UG2 treatment (solution with real energy,

water and CO2 savings)

PGM research (probably in applied flotation)

Coal application (downstream)

Environmental (to satisfy politicians)

Energy usage and waste management

Energy (industry must become energy

efficient)





Mineral Processing


Mine-process integration (incorporating

geometallurgy and the effect of underground

weathering, PGMs in solid solution)

Mine-to-mill and impurities

Flotation copper recoveries (greatest potential

for improvements in flotation)

Comminution (eg HPGR work)

Froth recovery

Mineralogical characterisation

Alternatives to flotation

Alternative flotation machines

Milling (particularly HPGR or alternative

comminution technologies aimed at reducing

energy costs)

Handling of waste and tailings

Project built around instrumentation and

control (particle size analysis, froth vision,

coarse particle flotation)


Efficient comminution


Metal Extraction




Industry based forum (including government

and research providers)

Energy and water utilisation (greater recycling

of water, avoid pollution, cost effective

treatment of recycled water, water reuse

without impacting on metal recovery)

Collaborative project (leading to more

effective research)

Energy (radical alternative to comminution,

combining fragmentation to give better

liberation at the mining level)

Water and energy usage efficiency

Iron ore (focus on better products as typical

current products have a grade of 64% Fe,

Chinese are feeding nickel laterite ore directly

into stainless furnaces)

High risk, high return project

Building competency in industry

Energy efficiency

Project that gets people thinking, possibly with

chemistry leading to technology

breakthroughs (e.g. General Electric R & D

budget focuses on energy, infrastructure,

water and finance)

Energy efficiency (current milling, flotation &

smelting process route is an energy inefficient

combination)

UG2 processing (possibly downstream

processing after Conroast)

Generic project (not focused on one

commodity or process, aligned with

government priorities, a „programme‟ with a

range of outputs)

Energy audit of a plant (types of energy used,

energy alternatives such as wind, solar, fuel

cells, air cons & energy storage opportunities)


5 What is your vision for your industry in 10 years? – In 20 years? – What will/could


10 to 20 Year Vision



Mineral Processing & Metal Extraction

Processing, Leaching, Smelting, Refining

Rock mechanics problems (mining more

difficult)

Total automation opencast & underground

mining (for safety, automated mining

research project needed)

Underground operations automated

Increased exploration of South Africa

(government will have to spend more)

Increased integration of processes

In situ processing

Treatment of complex PGM ores (including

hydrometallurgical processes)

Smelting route for silicious PGM ore

Implementation of molecular recognition

technology in the PMR

Commissioning of a smelter and acid plant as

well as a BMR at the new mine

Adoption of the Conroast process in the PGM

smelter (following development of a suitable

downstream process for iron removal)

Major breakthroughs in automation & IT

(particularly in on-line analysis)

Smaller and more efficient plant and equipment

(fewer people, waste disposal underground)

Plants will be controlled from remote sites

Concept of a „plant in a box‟ (can be shipped to

small mines to treat ore and then moved)

Equipment maintenance schedules should

coincide to maximise plant availability

Step change down in processing costs

Dry slag granulation

Technology leading to better automated and

controlled plants (fewer people to operate)

Containerised plants (selling ore or concentrate

to centralised processing facilities)

Processing the Waterberg coal deposits

More efficient processing (performance will be

pushed closer to the real process limits)

Significant improvements in mineral processing

(value added in the value chain mostly in

beneficiation, mineral processing playing an

increasing role, shift from mining company to

mineral processing company)

Simplification of processes (elegant, quicker,

more efficient, fewer processing steps)

Technology enabler unlocking value through

technology (eg: ferro alloy production via the

„Alloystream‟ process)




Socio-Technical


Electricity expensive

Deeper ore bodies and lower ore grades

(more expensive)

More efficient water and energy usage and

minimal environmental impact

Dry processing

Competitiveness will depend on the quality of

ore deposits

More complex ore bodies

Mine will be environmentally friendly (and

controllable)

We will have to achieve zero emissions

Increased growth in industrial minerals

Step change down in the use of water and

energy

Sustainable growth and operation in relation

to the environment (optimal energy usage)

More complex ore bodies with lower grades

Smaller deposits (companies will need to be

fleet-footed)

Develop natural resources in a manner that

we achieve long term sustainable value

Coal is a cheap commodity but this will

change as deposit grades get lower

Witbank area will have been depleted and

replaced by the Waterberg area (low grade

coal, water is scarce, logistics are problem)

Better usage of energy

Taking account of requirements of the

environment and water and energy usage

Largest producer of Ti metal (as well as a

producer of coal)

Downstream integration (production of

chemicals drugs and catalysts)

Increased demand for metal (China will have to

lift and maintain its growth rate)

Tighter environmental regulation incorporating

C footprints

Wide use of battery powered motor cars using

LiH and NiH3

More regulation and shareholder and

government intervention

Mining industry remains a vital contributor to

society (but must overcome legacies of past)

Metal demand increasing (GDP per capita is

increasing world-wide)

Recycling must increase

Industry cannot continue to rely on larger scale

operations to achieve improvements

Substitution will be an issue and so will REACH

(industry will have to be REACH compliant and

best operating practice will be beyond

compliance)

More environmental legislation

Metal demand depends on the commodity cycle

(China must keep developing)

Government needs to spend money now to

meet future infrastructure needs

Increased growth in the number of small and

medium-sized mining companies

Platinum must become affordable to avoid

substitution

Far more mining activity in Africa

Big push from mining industry for product price

increases (cover costs related to social

responsibility & adding value to communities)

Mining industry is moving to a manufacturing

approach (more control, fewer people doing

menial work, better technical decisions)

Need a few world class research groups

(companies are outsourcing their R&D)

Production of commodities in forms closer to

the final manufactured products


6 Mine of the Future



Mineral Processing & Metal Extraction

Processing, Leaching, Smelting, Refining

Highly mechanised and automated mining

(no/few people underground)

Efficient mining techniques (eg block caving)

Nuclear mining

Use of surgical mining techniques (hydraulic,

ultrasonic mining)

Minimal surface footprint (underground

processing of ores)

Increased use of chemical and biological

processes

In situ leaching

Intensification of processing (smaller more

intensive units)

Robust plant design

Plant operation by highly skilled staff

Small, high intensity processing units are

required with high separation intensities

Smelters are inefficient and inflexible to feed

grade (must improve flexibility to grades)

Retreatment of PGM dumps (perhaps by heap

leaching)

High grades and high recoveries have to be

targeted (cannot waste valuable reserves)

Improved information management and

control from mine to final customers (ore and

product management and integration across

the entire processing chain)

Significantly improved grinding

Better flotation devices

More automation & control

Heap leaching

Flexible smelters (with waste heat recovery)

Total underground operation

Increased use of thermodynamic drivers

In situ leaching

Retreatment of waste dumps

Use of microwaves/cryogenics/ultrasonics



Socio-Technical


Step-change reductions in energy, water &

effluents

Energy is priority area (major energy reduction

is in hoisting, requires underground treatment

of ores)

Low energy & water requirements

Dry processing is the ideal route (water-less

processing or processing with minimal water

consumptions is more probable)

Focus of the future will be on good earth

stewardship

Inherently safe mining operations

Real cost of production incorporated in metal

prices (mining value added is small relative to

environmental impact, externality costs need

to be internalised)

Much higher metal prices will lead to

sustainable consumption and make recycling

economically viable (industrial ecology)

Increased recycling of metals & mining

products

Behavioural and subjective drivers equally


Reduced energy in aluminium production

Mining philosophy based on earth stewardship

and resource usage & integration

Mining has to account for environmental

factors and biodiversity

Climate change and carbon legislation will

force mining industry to change operation

Geothermal gradients used to clean-up

underground water below JHB (used as a

large fresh water reservoir)

Treatment of nuclear wastes

Increased use of alternative energy source

such as solar energy (ideal solar energy is

inorganic equivalent of photosynthesis)

Major challenges facing the mining industry

include greenhouse gas production and land

and water usage

Consumers consider water footprint in

products and not just carbon footprint

Land usage is in competition with

communities, agriculture and biofuels

Use of waterless separation techniques

important to technical challenges

Mining communities have to be sustainable

(requires consultation with communities as to

what services or goods they wish to provide,

mining with the community rather than for the

community, more of a „community feel‟)

Local, provincial & national government

important stakeholders (mining likely to

employ fewer people, shift social responsibility

to government)

Socially skilling-up of local communities or

sustainable community model required (could

lead to entrepreneurs on the fringes of the

mining industry, supply goods & services)

Mining company-trade union-government

alliances required for sustainable mining

communities in South Africa

Investors and shareholders require knowledge

of sustainable mining, mining communities

and end product safety

Research should probably have about 40%

targeted at research into sustainable mining

communities, mining legislation & safety etc

Mining will thrive as billions of people are

going to require metals in the next 20 years

Mining requires integration between mine and

communities (sustainable communities, no

environmental impact)

Mining will have to focus on industrial ecology

and sustainable consumption (taking

ownership of metals produced, managing

recycling of metals, incorporating the real cost

of production into metal prices)

Metal production likely to decrease in 20 years

(increase in metal recycling)

Research team looking at socio-technical

issues in mining must include an economist,

industrial ecologist, sociologist and

behavioural psychologist




Academic Staff

Mining, Mineral Processing, Extractive Metallurgy

Educational Institutions

Universities, Universities of Technology

Industry has increased its staff subvention

through the METF

There is a cadre of long-service people in

teaching positions but they are becoming

belligerent (have to give repeat lectures

because of class sizes)

Industry salary packages are very high

compared with academia (most young

academics are post-graduate students)

METF tries to attract people into academia

with target salaries at between 66 and 80% of

those in industry

Africans from other countries are being

recruited into academia but see this as a

stepping stone to a higher paid job in industry

A number of retired people assist with the

teaching load but don‟t carry the department

Departments are sometimes dependent on

one or two key people

Key academics are near retirement

There is big gap in age and experience

between the junior and senior academics

Ageing academics

Demographic profiles of both staff and

students seen as a problem

Government money is needed to pay for

scarce skills allowances for academic staff

University tuition is not what it used to be

(reports of a decline in quality of graduates)

Graduate quality is variable

Graduate quality is satisfactory but many

rapidly move on to higher paid and more

glamorous jobs outside the industry

Student enrolments have increased

significantly (mostly in mining and geology)

There has been grade creep in matric results

and maths marks have been elevated

Engineering has high profile role models

attracting students to the field but many are

badly prepared, know little about engineering

& have social and personal problems

All institutions are suffering but mainstream

universities can weather the crisis

Some institutions have „ageing‟ departments

Institution is doing well in mining and

metallurgy but staff are overburdened

Institution has niche departments doing well

but none related to the mining industry

Institution is a “complete mess”

Institutions use old technologies and

approaches

Has a good mining department but small post-

graduate activity with ±60% staff vacancies

(lectures handled by post-graduates and

contract lecturers)

Mining department very good but over-

stretched

Metallurgy numbers are small as chemical

engineering is preferred

Large chemical engineering department with

high student numbers but ageing academics

Limited mineral processing in the chemical

engineering course (industry prefers

graduates from Gauteng region)

Good quality degree but rarified environment

(big adjustment for students going to mines)

Institution is main feed for useable people

going into mining industry (but staff are not

researchers)

Institution has well resourced staff and large

numbers of graduates but they don‟t

contribute to the industry and they don‟t stay


Institution graduates are the best stayers in

industry

BTech mining degree produces good hands-

on production people

BSc degree produces people who focus on

management and specialised technical issues

Universities of Technology have a high

undergraduate teaching load

Many top BTech students are university drop-

outs

Need transferability between universities of

tech and mainstream universities

Chemical engineers choose study route in

preference to metallurgy (career options)

We are concerned about the quality of some

BTech graduates

Graduate Engineers


Postgraduate Engineers


Need 15 per year as replacements (including

mining)

Industry approach to training new graduates

necessary

Need people who can function in a diverse

team (more than just engineers, systems

thinking approach as well as compassion)

Graduate requires 10 years of service before

making a meaningful contribution

Current graduate turnover is 6% per annum

Technology intensive have a graduate

pipeline (has to be maintained)

Graduates require 8–10 years experience

before they make a contribution

Current budget allows for 4 new metallurgists

per year (2 university, 2 university of tech)

Quality of some university of tech graduates is

a problem

Industry coordinated program of graduate

development could help

Company has lost virtually all its graduate

engineers

We need 30 metallurgists per annum (in 5

years this figure could possibly rise to 50)

Big companies get what they need (moving

away from employee bursary schemes)

We need 30 graduates per annum and the

graduate pipeline takes 7 years

We want people who are prepared to get into

the operations (more BTech and fewer BSc

graduates meet this requirement)

Masters degrees preferred (better rounded

individuals, better able to run projects)

Higher degrees needed by graduates in

research laboratory & platinum processing

Need some graduates with higher degrees but

with exposure to the operations

We need one MSc or PhD as process

specialists in the Smelter, BMR & PMR

We would like graduates to get MSc degrees

with say 5 per year obtaining PhDs

People with higher degrees are preferred but

only after obtaining initial plant experience

We will take MSc and PhD graduates but

don‟t actively recruit them

There are limited opportunities for graduates

with higher degrees

The R&D department uses almost exclusively

engineers

We fund employees‟ studies towards higher

degrees through part time study on specific

issues which are relevant to the company

We currently have a research staff of around

25, of which ±5 have PhDs and ± 7 have MSc

degrees


We have problems keeping graduates (issue

is non-technical people managing them)

We need a mixture of everything with a

centralised pool of metallurgists

We need chemists and chemical engineers

(try to retain them through pay and benefits)

We have not lost many to emigration

We try for a balance between BSc and BTech

graduates

We currently have ±20 bursars and about 30

intern trainees at any one time (quality is more

important than quantity)

I have an average intake of 6 graduates (BSc

4–5, BTech 1–2 per annum)

For the coal industry, the requirement would

be about 30 graduates/diplomates per annum

There is a global shortage of graduates and

the universities must keep going

Company has 5 times as many chemical

engineers as metallurgists

We will end up with chemical engineers with a

generic process engineering training

(companies have to look totally at internal

training of graduates to suit their operations)

We do not „pinch‟ graduates from other

companies (recruit bursars at school level)

We take in ±7 metallurgical engineers per

year and have a mentorship program on each

operation with a central coordinating mentor

BTech graduates are mostly recruited directly

by the operations

We are able to obtain sufficient graduates but

do struggle to find metallurgists in general

We look at chemical engineers in some areas

but they must have done the mineral

processing option

We start to see benefits and contributions

from young graduates after ±1 year


E5: Outcomes of Interviews (Generic)

1 Value Proposition

Adding value by growing the mining industry, by improving efficiency and sustainability while

mining depths increase, through development of breakthrough technology both upstream

and downstream of the processing stages.

The South African industry has to be globally competitive and there should be a national

agenda for a collaborative research programme with a broader vision, leading to the

optimisation of institutional capacity and the production of more and better quality graduates.

How much more efficient would all chrome mines be if each one had a graduate in the plant

on the mine?

2 Alternative Technologies (“Death of Flotation”)

Alternatives to flotation include sorting technology, DMS, leaching, and gravity separation.

The installed base of flotation plants is very large and unlikely to be changed for 30+ years.

Advantages of the flotation process include:

Less than 3% surface exposure is needed to recover a particle

Balanced recovery vs grade requirements

Selective technology for recovery of sulphides from gangue and from other sulphides

Precious metals recoveries are good to fair, depending on mineralogy and chemistry

Base metals results are excellent for simple ores and very good for more complex

sulphides

It works as a bulk separation step as the technology is capable of handling 20000+

tones per hour per unit

Disadvantages are:

Capital cost: size of equipment, its complexity, the supporting structure and footprint

required and the low energy efficiency

Operating costs: costs of reagents, spares etc

Difficulties of process control

Lack of manufacturing R&D and skilled manpower: no new technology has reached

the industry in 50 years

To replace flotation, new technology must offer equivalent or better performance at the same

scale of production. No single technology currently exists which can provide this.

The total flow of material in the process would have to be reduced:

Sorting is expensive and has the problem of ore preparation which may cost more

than the sorter itself

DMS has limitations on particle size


Gravity separation such as the Knelson and Falcon concentrators have a maximum

capacity of 100 tonnes per hour

Momentum separation uses air classification which is energy and capital intensive

Other alternative process routes include dry processing including screening, which would

require selective blasting and fragmentation; leaching and smelting: the direct smelting of

precious metal, copper and other base metal ores is not feasible with current and future

envisaged technologies.

There is little reagent test work conducted on any operating plants at present and a scientific

approach is needed to understand what is really happening when reagents are applied in

flotation processes.

3 Technology Management and Development Strategy

The company/group has a value-based management approach which aims to differentiate

between major and minor problems and to put a value to them. Everyone is trying to

conserve energy but the cost of water is still low resulting in a low drive to conserve water.

There is a major water crisis looming, caused particularly by pollution but the polluters need

to be identified: main culprits are the agricultural industry and municipal and human

activities. The authorities tend to spend effort and time on saving water in areas where it is

not needed. The mining industry needs to establish how it can contribute to water quality. It

also needs to look at upgrading concentrates so that some existing smelter furnaces can be

shut down resulting in energy savings.

Technology advances tend to come from incremental rather than step changes, as the

Industry is not good at changing the model and at change management, and needs to

understand how to implement new technology, which is often taken up by smaller concerns,

whereas step changes tend to occur through managing the incremental changes. (“A good

idea expressed badly is a bad idea”). The Industry is poor at the transfer of technology and

is not geared to making step changes on site and change does not happen quickly.

The business isn‟t equipped to challenge top class people („intelligent receivers‟) and

operational management is now largely driven by legislation: environment, industrial

relations and safety.

We are promoting a research-based culture, and provide opportunities to upgrade

qualifications at all levels from BSc to BSc (Hons) to MSc to PhD. Technology specialists

typically spend 10 years in research before moving into senior operational management on

high technology plants, so that they can understand the „big picture‟ in respect of the

operations in which they work.

4 Research Capabilities

Mining industry related research is conducted in Australia, Chile, Brazil and North America.

We have to have research in South Africa: UCT, Stellenbosch, UPE are conducting R&D.

Also UniLim, which has a good analytical facility. PUCHO has a strong chemistry department

and run a training scheme for plant supervisory staff. UJ has some of the best mineral

processing research and produces good BTech graduates. TUT originally planned to merge

their mineral processing classes with TUKs but this has not happened.


The cement industry taps into design and experience developed overseas. We are starting

to see Chinese equipment entering the local industry. The Lafarge plant at Lichtenburg

installed and commissioned a Chinese kiln and suffered 5 fatal accidents during

construction. A similar kiln has been built at Chilanga in Zambia and a further unit is planned

for Malawi. R&D is done by major equipment suppliers internationally and we can‟t compete

locally. The R&D has led to reduced NOx emissions improved refractory usage as a result of

operating with a lower heat load in the burning zone. Typical cement kilns have a thermal

efficiency of ±60% but the new Maerz kiln employs twin vertical shafts and has a thermal

efficiency of 80%.

Mintek are currently looking at water – quality of recycled water – and energy savings in

milling through waste rejection and dry processing technologies. In the last 18 months, we

have re-structured the way we use our Science Vote:

Areas where DST or DME say it‟s important, for example titanium metal production. If

this is such a good idea, why isn‟t industry prepared to put more money into it? We

have to sell them the business case in terms of financial returns, human resource

development, and through stimulating the economy.

Social responsibility exercise, eg: SMME development

70% of the expenditure of State funding is prioritised by Mintek itself, and allocated to

research areas, currently typically in

o water;

o energy: hydrometallurgical extraction of uranium, coal – most research is now

done off-shore;

o and low grade and complex ore bodies – technology breakthrough to recover the

contained values and what is needed to treat these.

o Industrial minerals

There is also the Advanced Metals Initiative, a joint venture between Mintek and the CSIR,

run by Elma van der Lingen. This covers fundamental research and costs are half covered

by the Gold Industry.

The Coal Processing Sub-Committee of Coaltech meets six times per year and is the most

active sub-committee of Coaltech. Particular areas of research include water treatment.

Members of the committee are Anglo Coal, BHP Billiton, Exxaro, Xstrata, Sasol/Sastech and

ESKOM. The Coal Processing Society, which is independent of the SAIMM, is now centred

in Witbank, while the Fossil Fuel Foundation continues to be run by the Falcons. In terms of

the Coal Strategic Roadmap, we are trying to engage Mike Moyes at Wits in the area of dry

processing. We also work with Quinton Campbell at PUCHO and Jeremy Bosman at TUKs.

There is also a student at UKZN working towards his MSc in dry processing under Dr John

Pocock. The total annual Coaltech processing research budget is ±R1.5 million. Company

specific research work is also conducted in-house.


5 SAMMRI and its Role

What are our aspirations for this country? SAMMRI must be a catalyst for the growth of the

Industry. How do we ensure that SAMMRI grows the economy and the industry becomes

better?

SAMMRI must focus on its long-term goal that will be a social transformation process. We

want the industry to be more efficient and more sustainable, and to create or generate

entrepreneurs. To do this we need to put in place the necessary building blocks and we

need to prioritise. Millennium babies have a different view of life – how can we direct the

energy and enthusiasm of young graduates?

We need to tailor our teaching toward the development of entrepreneurs.

General Electric‟s fastest growing business is in water treatment.

The SAMMRI debate started over the amount of South African research funding being spent

in Australia, which was helping to build capacity in that country at the expense of South

African universities. Was this morally defensible? SAMMRI was seen as creating a network

for cooperation between the local universities, which will be needed to make technology

breakthroughs.

The SAMMRI vision is to create an intellectual environment that is so challenging that we

can recruit and retain high skilled graduates.

Don‟t go chasing too much „blue sky‟ – the research must have a starting point. SAMMRI

should be a little less adventurous than AMSRI, barring any really bright ideas. Invest in

people, as the quality of R&D depends on the quality of the people doing it. Typically, the

cost of R&D represents 3%, and the cost of a pilot plant 5%, of the cost of the final project.

R&D people get cut to save money during economic downturns, so it is essential to keep

them relevant and in touch with the operations.

The benefit of SAMMRI to our company would lie in showing that members of the industry

are prepared to work each other and with the government and, obviously, in the research

outcomes arising from SAMMRI.

6 South African Mining Industry Status

The country has a minerals treasure trove but there are many issues and challenges: there

is not a collective strategic view, eg: there is a sufficient supply of Pt to the market and we

should be constantly involved in the value chain. However, the focus has been on

normalising the industry. The focus has also been parochial ignoring the fact that RSA has a

world-class mining industry.

There have been successes: R12 billion of Pt sold locally into the autocatalyst market,

earning export rebates for the automakers. However, the new auto industry plan provides

less export credits.

The DME is pushing beneficiation and value added beyond mining, not always competitively:

e.g. the creation of the State Diamond Trader and promotion of the local diamond cutting

industry. Local diamond cutting costs are $50–$100 per carat whereas cutting costs in India,

where 59% of the world‟s diamonds are cut, are ±$1–$2 per carat.


Because of local policies, the mining industry has been in recession over the past three

years during the peak of the commodity supercycle. During 2008, Pt production declined by

8%, gold by 13.6% and diamonds by 16%, largely because of electricity supply problems

and temporary mine closures caused by safety issues. Other factors included infrastructure

and regulatory issues. The country‟s macro-economic policy is good but the micro-economic

policy is less clear. Coal, iron ore, and manganese ore are still exported through Port

Elizabeth. Ferrochrome is exported through Richards Bay by road because of transport

issues.

Mining research and operations need people, including artisans. The MIETTB was forced to

close in 1998 and was replaced by learnerships, which have been a failure. The current

average age of artisans in the industry is 53. The mining and minerals industry is receiving

bad publicity due to the DME, high technology is not promoted. Most undergraduate

students don‟t get beyond second year. Most of those that qualify can‟t take mining work and

leave the industry, resulting in a shortage of graduates in the industry. Over the past 10

years, Coaltech has sponsored ±200 post-graduates. However, mining research is

essentially conducted by Coaltech and little else is done, with minimal work being done at

Wits and TUKs. Research programmes such as „Deepmine‟, „Futuremine‟ and „Platmine‟

have been abandoned.

Miningtek has closed down, although the CSIR is trying to re-establish its capabilities.

Water is scarce and some research is being conducted into water conservation. The cost of

water sold to mines by local authorities is a threat.

ESKOM was told to cancel its expansion plans and is currently running at a reserve margin

below 10% of available generating capacity. In October 2008, the daily electricity demand

peak was between 32 and 32.5MW. In January 2009, it was between 29 and 29.5MW.

ESKOM was given the go-ahead for a new power station in 2004 and was ready to start

procurement of Medupi by late 2008. By the end of 2010, the last of the returned-to-service

power stations will be on line. There will be no further additions to the country‟s generating

capacity until 2013.

The mining industry uses 15% of the country‟s available power, while the manufacturing

industry uses between 30% and 45%, and domestic use varies between 17% and 30% at

peak times. ESKOM is doing the right things but the policy environment has not been

completed. Over the last 20 years, electricity has been sold below its true economic value

and government has now given ESKOM a R175 billion guarantee for its expansion

programme. The old ESKOM supply collieries delivered coal on a cost plus basis but his is

no longer seen as an attractive investment. ESKOM need to spend R350 billion over the

next three years. Medupi, with a generating capacity of 10.5MW will cost R110 billion.

Constraints on the industry include lack of skilled people and the lack of new technology.

Technology development was successfully promoted by the THRIP programme for most of

the last 10 years but its impact has been reduced by the requirement over the last few years

for SMME involvement. The solutions to these problems lie in policy changes and a culture

shift. There is no complementary vision of where the industry should be. Over the last 7

years, normalisation of the industry has continued via Black Economic Empowerment deal to

the value of R150 billion. The mining charter is due to be reviewed during 2009.


Government departments are under stress. There is a 25% vacancy in the public service,

the criminal justice system and the DTI are over-loaded and education is still unsettled. (The

Treasury stands out as highly successful.) The government departments are having to deal

with complex policies but are under pressure, so that the question is asked: “Growth, elixir or

poison” illustrated by the local motor manufacturing industry, which is currently running at a

trade deficit of R20 billion per annum.

The government owns 44% of the country‟s total fixed capital. Net investment over the past

4 years has been 18%, and gross investment has been 30%, but effectively 44% of total

capital stock is closed to foreign direct investment.

7 Status of Educational Institutions

The general view on the state of educational institutions in South Africa was not positive.

Participants noted that some institutions were in „a complete mess‟ and that institutions were

„suffering‟ but should be able to „weather the crisis‟. Mainstream universities were considered

to be well-resourced and functioning reasonably well but are producing graduates who are

unlikely to pursue careers in mineral processing. Most universities of technology were

considered to be poorly resourced and virtually dysfunctional. However, some universities of

technology were viewed positively and seen to produce graduates who are both competent

and likely to remain in mineral processing. Participants noted that there should be greater

communication and „transferability‟ between universities and universities of technology.

Academic departments in mining, metallurgy and mineral processing were generally

considered to be functioning under more difficult circumstances than chemical engineering

departments. Many of these departments were noted as being „overstretched‟ with high staff

vacancy rates and correspondingly high teaching loads. Chemical engineering departments

have high student numbers but were thought to have minimal mineral processing content or

focus. Most academic departments were considered to have an ageing staff profile, often

with relatively poor demographic profiles. In addition, participants tended to regard academic

departments as either a „teaching‟ or a „research‟ department with many of the „teaching‟

departments having very high teaching loads and little if any R&D.

Student numbers in mining, mineral processing and chemical engineering are currently fairly

high and many departments have had record first-year class sizes over the past few years.

One institution currently has a first-year mining class of nearly 200 students. As discussed

previously, the mining industry is still viewed favourably by South Africans and many young

people want to study technical disciplines such as engineering. Participants also ascribed

this trend to „grade creep‟ in matriculation mathematics marks, making more students eligible

for university studies. Collectively, educational institutions probably produce about 200–300

graduates per annum in the fields of either chemical engineering or mineral processing.

However, R&D activity is low at many institutions and limited numbers of postgraduates are

produced. For example, the preferred university of technology by most participants produces

about 50 graduate mineral processing engineers per annum but only 1–2 postgraduate

engineers. Many participants were concerned about graduate quality in terms of both the

variability of quality and a perceived general decline in quality. A number of companies

indicated that they only recruited graduates from a handful of recognised institutions and

considered graduates from most universities of technology to be unemployable. However,


several companies noted that high-quality graduates from highly regarded institutions are

unlikely to remain in the mining industry.

Participants felt that many key academics in mineral processing had emigrated, moved into

highly paid positions in industry or were near retirement (or retired). This resulted in

academic departments consisting of young, inexperienced academics and ageing senior

academics, with high teaching loads and little time for R&D. Academic staff demographic

profiles was also considered to be fairly poor due to the difficulties in attracting young black

South African academics into comparatively poorly paid academic positions. Industry has

tried to rectify this situation through targeted staff subventions (e.g. METF). Some

participants felt that this should rather be addressed by government initiatives, such as a

scarce skills allowance.

8 Vision

Over the next 5 years there will be continuing regulatory pressure on mining companies to

add value locally

Risks going forward: Challenges within Transnet, delay responses to changing conditions.

Eg: Vale operates rail concessions in Brazil and the industry operated rail systems in

Australia. Mining companies are multinational and will not open new mines if the investment

climate is not amenable.

Greatest risks lie in continuing policy changes.

Coal will probably remain the major source of energy. Challenges include better ore reserve

utilisation through better mining practice and pillar extraction.

PGM should have a long-term global market.

Community response to mining

Gold: cost and technology – shallow ore reserves with grades just below economic levels.

Cost inflation over the last 5 years was 2xPPI, mainly due to increases in prices of steel and

electricity. Challenges are technology frontiers, cost and safety, and developing cheaper

mining methods.

Iron ore: risks are mainly infrastructural. We have good grades and are competitive,

exporting ±40 million tonnes per year, but could go to 60 million tonnes in the next few years.

By comparison, Australia exports 30 million tonnes per year, although Brazil is the world‟s

largest exporter.

Chromite production faces regulatory threats.

Manganese: We have 80% of the world‟s reserves and are the second largest producer.

Diamonds: the situation is similar to gold – mature industry and declining production.

Creation of the State Diamond Trader affected the market: 15 out of 185 artisanal miners are

still in operation.

Titanium minerals: we generate 20% of the world‟s production. Challenge is the production

of titaniferous magnetite from the Bushveld Igneous Complex.


Exploration: globally, 40% of new mining developments occur at greenfield sites, and 50% of

these are developed by junior mining companies. In South Africa 20% of new mines are

greenfield developments, and most are brownfield projects. The country has been well

mapped by the Council of Geoscience but there is little venture capital available and most

junior mining companies cannot handle and support the historically disadvantaged

participation requirement.

The Mining Industry Growth, Development and Employment Team (MIGDET) have

conducted a strategic foresight exercise and called for infrastructure improvement,

particularly through private involvement in infrastructure development and management. The

gold industry is expected to stabilise and a turn around from the long-term decline in the

industry is expected. However, significant capital expenditure will be required to achieve this.

Capital expenditure in 2008 was R9 billion, but 70% of this was sustaining capital

expenditure. 52 000 tonnes of gold have been mined in RSA in the last 120 years,

representing 32% of all gold ever mined.

The platinum industry needs a high level of sustaining capital expenditure. Production of

platinum in 2007 was 300 tonnes and the industry remains a growth area, provided the

government treats it as a strategic industry.

Iron ore remains a good growth area

Mn and Cr are subject to fickle markets

Coal could see a good expansion. Current production is 250 million tpa, and current capital

expenditure is R30 billion. Production could rise to 385 million tonnes by 2018. Highveld coal

production will peak during the next decade, but Waterberg production should rise to around

34 million tonnes per year with a second major power station (after Medupi) planned for the

area.

Ti is a growth area

Uranium: Vaal Reefs is the only plant currently in production, but significant ore reserves

exist in the Dominion Reefs Basin and in the Beaufort West area, which could be viable at a

metal price of $40 per pound.

The last five years have not been good for the industry, which should have been a flagship

industry for the country. However, things seem to be changing. Not much change is

expected in the next five years but, after that electricity will be less of a problem and

infrastructural constraints should be easier.

Major issues are foreseen are as the regulatory environment and the State-owned mining

company, which has already been set up.


Glossary of Terms

Amendment to section 1 of the Mineral and Petroleum Resources Act 28 of 2002

'Beneficiation' in relation to any mineral resource means the following:

(a) primary stage, which includes the process of the winning, recovering, extracting,

concentrating, refining, calcining, classifying, crushing, screening, washing, reduction,

smelting or gasification thereof;

(b) secondary stage, which includes any action of converting a concentrate or mineral

resource into an intermediate product

(c) tertiary stage, which includes any action of further converting that product into a

refined product suitable for purchase by minerals-based industries and enterprises;

Acid Mine Drainage Acid mine drainage (AMD), or acid rock drainage (ARD), is the outflow of

acidic water from (usually) abandoned metal mines or coalmines, and

waste dumps.

AMIRA An independent international association of minerals companies, created to

develop, broker and facilitate collaborative research projects

Base Metals A metal that oxidises or corrodes relatively easily, and reacts variably with

dilute hydrochloric acid (HCl) to form hydrogen. Metals falling into this

category normally include nickel, cobalt, lead and zinc. Copper is

considered a base metal as it oxidises relatively easily, although it does not

react with HCl. It is commonly used in opposition to noble metal.

Benchmarking The process of setting a basis against which any changes are measured.

Examples of benchmarks used for assessing quality, productivity, efficiency

or other performance are world‟s best practice and industry averages.

Carbon Tax An environmental tax on emissions of carbon dioxide and other

greenhouse gases. It aims to reduce emissions through process

modifications and implementation of new processes.

Comminution Size reduction of ores. See also milling

Concentrate A stream in a minerals processing operation which consists primarily of the

desired material and which has had the majority of the invaluable material

removed.

Ferro Alloy Any alloy of iron and another metal, especially one of silicon, manganese,

chromium and vanadium, used in the production of specialist steels as they

have a lower melting point than the pure metal.

Flotation The process of separating different materials, especially minerals, by

agitating a pulverised mixture of the materials with water, oil, and

chemicals. Differential wetting of the suspended particles causes unwetted

particles to be carried by air bubbles to the surface for collection.

Greenhouse Gas Gases in the atmosphere that absorb and emit radiation within the thermal

infrared range. This process is the fundamental cause of the greenhouse

effect. Common greenhouse gases in the Earth's atmosphere include water

vapour, carbon dioxide, methane, nitrous oxide, ozone, and

chlorofluorocarbons.


H-Economy Hydrogen-based economic development

Hydrometallurgy The branch of extractive metallurgy involving the use of aqueous chemistry

for the recovery of metals from ores, concentrates, and recycled or residual

materials.

Leaching Leaching has a variety of commercial applications, including separation of

metal from ore using acid. Leaching involves selectively solubilising the

desired metal or mineral from a solid into a solution, and then separating it

from the solution later on.

Leaching is widely used in extractive metallurgy since many metals can

form soluble salts in aqueous media. Compared to pyrometallurgical

operations, leaching is easier to perform and much less harmful, because

no gaseous pollution occurs. The only drawback of leaching is its lower

efficiency caused by the low temperatures of the operation, which

dramatically affect chemical reaction rates.

Metallurgy Metallurgy as used in this document refers to extractive metallurgy, which

is the practice of removing valuable metals from an ore and refining the

extracted raw metals into a purer form.

Milling Reducing particle sizes of material through grinding or pulverising

Mineral Sands Heavy mineral sands are a class of ore deposit, which is an important

source of zirconium, titanium, thorium, tungsten, rare earth elements, the

industrial minerals diamond, sapphire, garnet, and occasionally precious

metals or gemstones.

Heavy mineral sands are placer deposits formed most usually in beach

environments by concentration due to the specific gravity of the mineral

grains. It is equally likely that some concentrations of heavy minerals (aside

from the usual gold placers) exist within streambeds, but most are of a low

grade and are relatively small.

Mining Removal of ore from the ground. Can either be open cast or under ground

P9 Project A 46 year old collaborative research project with the principle aim of

optimising mineral processing operations. The P9 research institutions are

the University of Cape Town, the JK MRC at the University of Queensland,

Australia, and McGill University in Canada.

Platinum Group

Metal

Platinum, palladium, rhodium, ruthenium, osmium and iridium.

Product Stewardship A product-centred approach to environmental protection whereby any

actors in the product lifecycle – manufacturers, retailers, users, and

disposers – share responsibility for reducing environmental impacts of

products, including when it reaches the end of its useful life.

Pyrometallurgy The branch of extractive metallurgy in which processes employing chemical

reactions at elevated temperatures are used to extract metals from raw

materials, such as ores and concentrates, and to treat recycled scrap

metal.

For metal production, the pyrometallurgical operation commences with

either a raw material obtained by mining and subsequent mineral and ore

processing steps to produce a concentrate, or a recycled material such as

separated materials from scrapped automobiles, machinery, or computers.

Pyrometallurgical preparation processes convert raw materials to forms

suitable for future processing. Reduction processes reduce metallic oxides

and compounds to metal. Oxidising processes oxidise the feed material to


an intermediate or a semi-finished metal product. Refining processes

remove the last of the impurities from a crude metal.

Resource Efficiency Efficiency with which resources are used towards positive benefit

Tailings Tailings (also known as tailings pile, slickens or gangue) are the waste

materials left over after removing the minerals from ore.

Tailings and gangue represent external costs of mining. As mining

techniques and the price of minerals improve, it is not unusual for tailings to

be reprocessed using new methods, or more thoroughly with old methods,

to recover additional minerals.

In coal and oil sands mining, the word 'tailings' refers specifically to fine

waste suspended in water and the word 'gangue' is not used.

Waste Rock /

Overburden

Material overlying a useful mineral deposit.

the south african minerals to metals research institute

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