Research and Development in South Africa Presentation To Parliamentary Portfolio Committee

1. Research and Development in South Africa Presentation To Parliamentary Portfolio Committee 12 August 2015

2. CURRENT R&D INSTITUTIONS IN MINING

3. Technology Innovation Roadmapfor the South African Minerals Industry

4. Background and deliverable • The MIGDETT Declaration (2008) identified Innovation as one of its key enablers to achieve strategic objectives for sustainable growth and meaningful transformation of the mining sector. • Some effort was made to develop this commitment at the time, without any substantive outcomes. • During 2013, the Department instructed Mintek to re-initiate the process. • Timeframe through to 2030 as there is recognition that mining is a long-term business. This is also in line with the National Development Plan (NDP). • Delivered draft of final report to DMR in December 2014. • Document seeks to answer three critical questions: where are we now; where do we want to be in 2030; and how do we get there. Innovation - a key enabler for achieving sustainable growth & meaningful transformation in SA mining industry (MIGDETT Declaration, 2008)

5. The process followed • Mintek coordinated the exercise, with substantial input from CGS, CSIR, CMMS • Used Technology Roadmapping methodology • Took cognisance of previous work, both locally and internationally • Consulted with about 40 stakeholders – representing cross-section of industry Government – DMR, DST Organised labour – MIGDETT organised labour – NUM, Solidarity, UASA, Associations – Chamber of Mines, SAMDA, Coaltech, SAMMRI Science Councils – Mintek, CSIR, CGS Industry – Anglo American, Exxaro, Anglo Coal, Impala, AngloGold Ashanti, Sandvik, Lonmin, Anglo Platinum, African Barrick Gold, Coal of Africa, Sibanye Gold, Sasol Mining Universities – University of the Witwatersrand (and indirectly others)

6. Technology Roadmapping”– strategic plan describing the steps required to achieve stated outcomes & goals Study parameters • Exploration, mining, processing and cross-cutting technologies • PGMs, gold, coal and iron ore (represent over 85% of labour and sales revenue) • Emphasis on ‘low-hanging fruit’ – innovation that can be realistically implemented in next 20 years • Small teams of ‘experts’ used to identify focus areas, technology needs & strategic projects in each stage of value chain

7. SA’s mining industry is well-established & internationally competitive but requires focused approach to innovation to meet current challenges • Roadmap Vision: “In 2030, the South African mining industry will be innovative with a strong collaborative culture. The industry will share a common goal of striving to develop, acquire and employ technology which enables it to be globally competitive and commercially successful in exploiting South Africa’s mineral wealth in a sustainable, socially acceptable manner which supports meaningful growth and transformation, to the benefit of all South Africans”. • Three R&D goals prioritised: • Enhancing global competitiveness • Maximising industry sustainability • Improving investor attractiveness • ‘Cascading’ approach adopted to ensure each goal adequately addressed:

8. Taking SA Mining to 2030 – High level of specific project detail

9. Cross-Cutting technologies – R&D Goals and Innovation Needs Research goal: “Integrate, automate and optimise resources and data across the value chain” Innovation needs: • Reducing wastage and buffer stocks; • Reducing planning cycle from months to hours; • More efficient use of resources; • Reconciliation (metal accounting); • Standardisation; and • Improving capital efficiency and asset utilisation

10. Cross-cutting Technologies – Priority projects & scheduling

11. Structural recommendations • Avoid fragmentation, strive for critical mass of capacity (identify and support centres of internationally-competitive competence) • Encourage universities to develop unique, distinctive research competencies • Existing R&D structures (eg SAMMRI, Coaltech, CMMS) are effective and should be retained, expanded and supported • Strengthen mining technology collaborative structures and create exploration technology innovation structure • Support mechanisms for increased university – science council – industry collaboration (SAMMRI approach good example) • Continue to support skills development (Innovation requires skills for both development and implementation) • Longer term, consistent R&D funding

12. Taking SA Mining to 2030 – support an innovative environment! • Taking SA Mining to 2030 is as much about developing a strong research environment as it is about the industry adopting new technologies. • Three collaborative structures necessary to realise goals: • SA does not currently have any single, central entity to guide and coordinate mining industry innovation. Suggest constitution of a ‘South African Mining Innovation Council’ to drive and coordinate collaborative research as a matter of priority

13. Exploration – R&D Goals and Innovation Needs Research goal : “Extend & expand accessible ore” Innovation needs in the Exploration stage: • Finding new greenfield projects; • Finding new brownfield extensions; • Revisiting old mining dumps; • Keeping abreast of new technologies in exploration; • Creating Centres of Excellence; • Capacity development; • Promotion/attraction of junior participation, including small-scale miners; and • New geo-info using updated exploration techniques.

14. Exploration – Priority projects & scheduling

15. Mining – R&D Goals and Innovation Needs Research goal: “Excavating productively and safely” Innovation needs in the Mining stage: • Improved rock-cutting methods; • More efficient mining methodologies; • Improved material management; • Improved energy efficiency; • Improved orebody characterisation; • Improved safety; • Improved human factors and other behaviouralissues • Improved asset utilisation.

16. Mining – Priority projects & scheduling

17. MHSC Personal Protective Equipment for Women in Mining • The Department and the Mine Health and Safety Council launched the personal protective equipment for women in mining and DVD on sexual harassment during a Women Conference which was held on the 5 and 6 August 2015.

18. Processing – R&D Goals and Innovation Needs Research goal: “Getting more for less” Innovation needs: • Maximising process recoveries; • Reducing process production costs, • Reducing water and energy consumption; • Reducing plant capital cost; • Reducing environmental emissions; • Improving process reliability.

19. Processing– Priority projects & scheduling

20. Research and Development Projects • Mintek developed and commissioned a furnace that uses coal as a source of energy to assist potters who are located in rural areas in Letebejane in Limpopo and therefore do not have a steady supply of power that is critical in drying their products. • The Mintek-developed SAVMINTM technology to treat acid mine drainage has the potential to cost-effectively remove heavy metals and sulphates from acid mine drainage. • Mintek has concluded a manufacturing agreement with an international chemical producer to produce its Nicksyn™ reagent, which improves nickel recovery, on an industrial scale. • University of the Western Cape (UWC) has launched a hydrogen fuel cell powered generator. The product was funded by the Department of Science and Technology.

21. Collaborations and building partnerships in R&D. • Department convened a workshop on 18 and 19 June 2015 at the CSIR to further synchronize on mining R&D strategies. • The Roadmap as well as the Departments of Science and Technology (DST) and Trade and Industry (DTI) strategies directed at the Mining and Minerals sector were discussed. • Participants agreed that in order to enable the mining and minerals sector in South Africa to thrive, there is a need for a collaborative and directed Research and Development (R&D) focus. • A need for an overarching and integrated government strategy for the minerals and mining value chain, which identifies problems amenable to R&D interventions.

22. TO BE INTEGRATED INTO THE ROADMAP • All Interconnected Work and Strategies • DST strategy to support innovation in the mining sector • DTI strategy to support local manufacture and supply of mining equipment • Socio-economic and environmental R&D including post-mining landscapes (new /enhanced aspects). • Mechanism for integration • Mining Phakisa (already underway)

23. CONCLUSION • Whilst the Roadmap for Research and Development addresses the entire value mining chain – it will be enhanced to integrate all other initiatives, including identified specific projects. • The recommendations of the workshop on synchronization of the mining strategies will be incorporated in the Roadmap. • The Roadmap could also assist with the Mining Phakisa process. • The Department of Mineral Resources will engage with other stakeholders including Treasury, DST and DTI on the long term funding of the Roadmap.

24. Thank You.