PAUL JOURDAN: “South Africa is Chile’s largest trading partner in Africa”

THE WORLD OF MINING
Raul F. Campusano Droguett
International Editor

(Published in AREAMINERA, November 2005)

During a recent visit to South Africa, Areaminera had the opportunity to interview Paul Jourdan. Dr Paul Jourdan is the CEO of Mintek (Council for Mineral Technology) a state mineral processing and metallurgy research and development science council. He joined Mintek in 2000 from the Department of Trade & Industry where he was the Deputy Director General in charge of Special Projects, which included the Spatial Development Initiatives, or Development Corridors, and the general configuration and facilitation of investment. He has a BSc in geology and a BA in African Government from UCT (University of Cape Town), a post-grad diploma in Exploration Geophysics from the ITC in Delft, a PhD in Politics from Leeds and an MSc in Mineral Economics from Wits. His doctoral dissertation was on regional strategies for the minerals sector of southern Africa.

After leaving South Africa in 1976 to join the ANC (African National Congress), he worked as a geologist, geophysicist, teacher and manager in Mozambique, after which he joined the Institute of Mining Research in Harare as a Mineral Economist and later as a manager. After the unbanning of the ANC in 1990 he returned to South Africa where he worked for NUM (National Union of Mineworkers) on future scenarios for our mining industry and for the Industrial Strategy Project on strategies for the greater beneficiation of SA’s minerals. In 1993 he was deployed to the ANC’s Department of Economic Policy to coordinate of minerals & energy policy where he was responsible for compiling the ANCs first draft “Minerals & Energy Policy” document. He chairs the COHORT (Committee of Heads of Organisations of Research and Technology) and sits on the Board of the Coega Development Corporation, the Kgabane Jewellery Trust, and the Advisory Boards of the CSIR: Miningtek and Wits Faculty of Engineering and the Built Environment.

Areaminera: Dr. Jourdan, what is MINTEK and which line of research is MINTEK pursuing currently?

Jourdan: Mintek is one of the world’s leading technology organisations, specialising in mineral processing, extractive metallurgy and related areas of expertise. We strive to be a global leader in mineral and metallurgical research and development (R&D) and technology transfer. We are not involved in mining technology, but specialise in mineral extraction technology, in other words: ‘Give us a rock, and we will get the economic metals out of it.’ Our main mission is to add value to minerals (beneficiation) which also includes the inputs/supplier industries. Current R&D includes: cyanide analysis and monitoring for gold extraction; an initiative to develop novel industrial uses for gold and increase local beneficiation; Project AuTEK - the collaborative initiative to develop novel industrial uses for gold and increase local beneficiation - is now in its fifth year. The work on catalysts for carbon monoxide oxidation has reached product development stage. One of the potential applications is in respirators, where the AuTEK catalyst has the advantage of retaining its activity for much longer than the conventional hopcalite catalyst, as well as the ability to function in humid conditions. Prototype respirators using the AuTek gold-based catalyst will be submitted to the National Institute of Occupational Safety and Health (NIOSH) for evaluation and accreditation early in 2006, and the first commercial production is expected in 2007. Mintek now has the capacity to produce catalysts, in batches up to 20 kg, in a form suitable for a wide range of industrial applications, and is ready to collaborate with end-users in the pollution control, chemical processing and fuel cell industries to design gold-based catalysts for their specific needs. The AuTEK biomedical programme, which originally focused on anti-tumour drugs, has broadened its investigations to include anti-HIV and anti-malarial agents, in collaboration with seven local and six European universities. Screening work and toxicololgical studies are continuing, and in-vivo testing will start towards the end of 2005. Work has been initiated with Necsa on radio-labelling to investigate the mode of action of various compounds; Mintek's testwork facilities are intensively used for exploration and development work on new platinum-group metal projects in South Africa; the recovery of platinum group metals (PGM) from revert tailings and other wastes; a programme to develop PGM-based analogues of nickel-based super-alloys; the development of platinum-based jewellery alloys; Mintek is a test facility for the Smopex® technology. Smopex is a new metal scavenging system that uses polyolefin-base ion exchange fibres with high loading capabilities to recover low levels of precious metals from process streams; Mintek is conducting a Definitive Feasibility Study (DFS) on Oriel Resources' Shevchenko ferronickel project in Kazakhstan; developing a low-nickel austenitic stainless steel for structural applications; continued development and testing of a 'smart' rockbolt or SmartboltTM, which undergoes a phase transformation when strained, which can be monitored to provide warning of impending dangerous rock conditions; the characterisation of iron ore samples by means of a Mineral Density Separator (MDS); co-ordinating the bioleaching work package in the European Union's (EU) BioMinE project, part of the EU's Sixth Framework Programme (FP6); Large-scale piloting of Mintek's heap bioleaching technology for primary copper sulphide ores has begun at the Sarcheshmeh Copper Complex in southern Iran; Mintek is engaged in a major R&D project on the tank bioleaching of zinc sulphides. Various microbiological and engineering strategies have been examined with the aim of significantly reducing processing costs, and progress on the engineering side has led to a patent application for a novel bioleach process configuration; the development of a novel and effective technique for inoculating bacteria into leach heaps for rapid start-up and improved metal recoveries; R&D work on the Mintek Thermal Magnesium Process (MTMP) has been completed successfully. Technically, this process is now ready for scaling up to a demonstration - and further to an industrial size operation; Preliminary comminution and metallurgical testwork has been started on the Kalukundi copper-cobalt deposit in the DRC; Vancouver-based Formation Capital Corp. commissioned Mintek to develop a hydrometallurgical flowsheet for its Idaho Cobalt Project (ICP). The ICP, a high-grade primary cobalt deposit unique to North America, is currently in the bankable feasibility and advanced permitting stage of development; Bench-scale leaching and recovery work has started on process development for Aflease Gold and Uranium's Dominion uranium project; Mintek has undertaken laboratory-scale work for AngloGold Ashanti to assist with upgrading the uranium circuit at the company’s Vaal River Operations. AngloGold Ashanti plans to upgrade the South Uranium Plant to maintain uranium production for at least an additional 11 years by exploiting the by-product uranium reserves associated with its new Moab Khotsong Shaft; and, A major programme of testwork has begun to evaluate ore samples from CVRD's manganese exploration projects in Gabon. CVRD, which is also developing the Moatize coal project in Mozambique and exploring for diamonds and various metals in Angola, has entered into a Memorandum of Understanding (MOU) whereby Mintek will act as the 'preferred supplier' of testwork for the company's projects in Africa.

A few years ago we set up MESU (Mineral Economics & Strategies Unit) which is developing strategies for the minerals sector and is doing research on a Resource-Based Technology Strategy that looks at optimal strategies to transform our country from a mineral-based economy to an industrialised economy. We have also set up an artisanal and small-scale mining division which is developing appropriate technologies for the poor to enter the industry and we also run a small-scale mining school

Areaminera: Does MINTEK perform activities in other countries?

Jourdan: Yes, we operate internationally, particularly in Africa, Australasia, Latin America, central Asia and the Middle East. We are heavily involved in large-scale piloting of our heap bioleaching technology for primary copper sulphide ores at the Sarcheshmeh Copper Complex in southern Iran and at Oriel Resources' Shevchenko ferronickel project in Kazakhstan.

Areaminera: How do you evaluate mining activity in South Africa?

Jourdan: Mining and mineral products comprise about 60% of South Africa’s exports. This includes SASOL, our coal-based oil and basic chemicals industry. Minerals comprise only 40% of exports and the other 20% is made up by refined mineral products like ferro- alloys, including iron, steel and basic chemicals from coal, like polypropylene. The industry employs about 500 000 people directly and many more indirectly. Due to the Asian boom and higher prices, mineral production has increased, except for gold (where the price hasn’t increased much), However, the increase in output hasn’t resulted in an increase in overall employment. In addition our gold mining industry is in decline due to resource exhaustion. The hard reality is that mining exploits a finite resource and is therefore ultimately unsustainable. A worrying negative impact of the current resource boom is that it has strengthened our current account which has in turn strengthened our currency making our manufactured exports uncompetitive.

Areaminera: What are the competitive advantages of South African mining?

Jourdan: South Africa has world class resources. These include PGMs (platinum, chrome, vanadium and potentially titanium), gold (in decline), manganese and magnesium. We also have enormous reserves of iron, copper and nickel amongst others. We are the world leader in deep-level, hardrock mining. This has led to the development of very innovative mining technologies. The country has also become one of the world leaders in mineral processing. For instance, the carbon in pulp (CIP) technology, a breakthrough in the extraction of gold, was developed by Mintek. Today this technology is used by more than 90% of mines world wide.

Areaminera: Are there contacts between MINTEK and Chile?

Jourdan: Mintek values Chile as an important partner in mining and minerals technology. We have an agent in South America and our personnel regularly visit mining operations in various Latin American countries. Mintek has installed and implemented FloatStar advanced floatation process control technology at the Minera Collahuasi copper mine and Minfurn carbon regeneration technology at the Vilacollo gold mine in Chile. On the mineral processing side Mintek has done optical sorting test work on copper samples from Los Bronches. We also attend the major mining conferences in Chile and neighbouring countries. In terms of political economy, South Africa and Chile have much in common: Both economies are based on commodity exports and both aspire to industrialize, both are trying to rebuild their nations after decades of authoritarian rule and both are faced with massive social equity challenges. We believe that we have a lot to learn from each other in our mutual struggle to create a better life for our citizens.

Areaminera: President Mbeki visited Chile recently and it is possible that President Lagos will visit South Africa. Do you observe an increase of the bilateral relation between both countries?

Jourdan: South Africa is Chile’s largest trading partner in Africa. Bilateral trade between the two countries has increased dramatically in the last four years, increasing from US$85.9-million to US$133.7-million between 2001 and 2004. Official figures show that the trade balance is in South Africa’s favour, with US$85,7-million in exports from South Africa to Chile in 2004, compared with US$48-million in imports by South Africa. Bilateral trade is focused on the primary and semi-processed metals, chemicals and agricultural (herbicide and insecticide) sectors. Steel and steel products comprise 61.6% of South Africa’s total exports to Chile. The growth in investment is even more dramatic, as there have been large flows of foreign direct investment (FDI) from South African-linked companies to Chile. It is estimated that FDI flows from South African-linked companies, such as Anglo American and Liberty-Mutual, to Chile stand at US$8-billion. South Africa was listed as Chile’s third-largest investor in 1998, after Canada and the United States. Both Chile and South Africa have strong mining sectors. This has already led to trade and investment linkages, but could lead to further linkages between the mining inputs sectors.

Areaminera: Is South Africa investing in research and development in the mining sector?"

Jourdan: R&D spending in South Africa is set to increase to 1% of GDP by 2008 as the country strives to achieve greater economic growth. The mining industry is regarded as one of the premier growth areas. In the national economy, as with any business venture, innovation and continuous development are key to growth. Without them, progress stagnates. The South African government acknowledges that the country is currently under-spending on R&D. However, plans are being put in place to promote greater public and private spending on R&D. The immediate target is to boost investment from the current level of 0,81% of GDP a year ‑ which amounts to more than R10-billion ‑ to 1% of GDP by 2008. To achieve this in the public sector, the government will, among other things, increase its R2.8-billion allocation to South Africa's science councils. A number of attractive incentives will also be introduced to encourage the private sector to spend more on R&D. However, the key to further sustained economic growth is to convert the economy from a resource-based, labour-intensive economy to a more diverse, value-adding, knowledge-intensive economy. The United States , Sweden and Finland are prime examples of economies that have converted themselves from resource-based economies to become industrialised economies and global exporters. Companies in these countries that started off in the resource sector were able to re-invent themselves through lateral migration. Good examples are companies like Atlas Copco, Sandvic, Tamroc, Metso, Nokia, Scania and 3M. Because these companies are knowledge intensive, they are versatile and therefore capable of re-inventing themselves.

Very few mining companies in the world have managed to re-invent themselves. They tend to just disappear. We believe there is a very good mining inputs cluster in Northern Chile. A technological alliance with them has to the potential to generate mutually beneficial synergies. In Chile you are very lucky to mine copper at 1% or 10 000 grams per ton. In South Africa we are mining platinum at 5 grams per ton and gold at 6 grams per ton. This poses particular challenges.