Chemical Services. Mining Strategy Presentation to Investors. September th

Transcription

1 Chemical Services Mining Strategy Presentation to Investors 29th September 2009

2 Global mining production by size of operation

3 Global known ore reserves

4 Strategy Market Large, expanding and exciting Target: Africa, Australasia, Chile Value added minerals Au, Diamonds, Cu, PGM s Value added model Total chemical reagent package High technical service Capital investment at customer sites Supply chain Strategic raw material supply and production capability Technology

5 Concerns Mining projects cancelled, frozen or delayed Copper belt (Zambia /DRC ) demands have diminished (coming back) Diamond mines production halved (coming back) Platinum and other major customers are pushing back on suppliers for better pricing and cutting out reagents Sulphur prices have collapsed

6 Total chemical solution SENMIN (Pty) Ltd

7 Group mining sales 2,500,000 2,000,000 Sale (R mil) 1,500,000 1,000, , H

8 New mining projects in completion phase 2009 o o o o o o o Blue Ridge Q1 Boynton/ PilanesburgQ1 Ngezi Plats Zim Q3 Ruashi DRC Q2 Tenke DRC Q3 Kayalekera Malawi Q4 Lumwana Zambia Q2

9 Working on new SA projects 2010 BKM Phase 2 Chemwes Goldfield West Wits Uranium One (Drum) Rand Uranium (Cooke Uranium) Atcom coal

10 Working on new Africa projects 2010 Buzwagi Gold Tanzania Unki Plats Zim Anbatovy Madagascar Kolwezi Tailings Kol DRC Benga Coal Mozambique Nkwe plats Zimbabwe Trekkopje

11 Comprehensive customer service Integrated storage and preparation

12 Comprehensive customer service Integrated storage and preparation

13 Introduction Senmin is a combination of previously Chemserve-acquired businesses Allied Colloids SA based in PE Restructured as Chemserve Colloids in 1995 Focus on mining chemicals and tailings treatment Pelichem representing Ciba, now BASF Acquired Sentrachem mining chemicals 2002 Manufacturing base and technology

14 Success factors Known brand Operated in SA for 40 years Key markets Diamonds Uranium Platinum and base metals Producer in Africa based in Sasolburg Platform for further investment

15 Putting the package together

16 Product portfolio Speciality liquid thio mineral collectors Mineral froth formation chemicals Unwanted gangue mineral depressants Polyacrylamide thickening polymers Tailings polymer rheology modifiers

17 Senmin adopting model Service The chemical solutions provider of choice Technology Costs

18 Senmin s business model Supply and cost World class production and supply chain Back integration into raw materials Service Investment in bulk and automated storage and handling of chemicals on mine sites On site technical service and reporting Benefit/gain sharing on improvements Technology Developed and licensed

19 Total chemical reagents vendor management Major mining companies: Platinum Diamonds Copper Coal Uranium Iron ore

20 Senmin speciality chemicals Create effects in mineral processes Added in small quantities Improve outcome in every stage of extraction

21 Extractive reagents Xanthates Secondary collectors Dithiophosphate Dithiocarbamate Depressants Carboxymethyl cellulose Guar gum Frothers Polyacrylamides

22 Senmin site: Sasolburg

23 Progress on projects

24 Guar project completed 2009

25 Carbon disulphide (CS 2 ) Key raw material for mining chemicals Replace existing plant and importation New technology based on natural gas World scale with excess capacity for growth

26 Advantages of natural gas Raw materials Charcoal supply insecure Methane composition stable Capacity Maximum capacity of old plant = 72 00mt/a vs mt/a Availability of electricity Cost effectiveness Fully absorbed cost is lower for methane Much smaller environmental footprint 140 kwh vs 1600 kwh per ton CS 2 Generate steam from exothermic Claus reaction

27 Old charcoal technology In this technology charcoal is used as source of carbon as supplied by a farmer C + 2S CS 2

28 New methane technology Carbon disulphide (CS 2 ) is formed by the endothermic reaction of methane and sulphur CH 4 + 4S CS 2 + 2H 2 S The reaction takes place in the gas phase at elevated temperature and pressure Sulphur is recovered from the by-product H 2 S 2H 2 S + SO 2 3S + 2H 2 O

29 CS 2 balance Requirement Imports Capacity

30 Old CS 2 from Charcoal

31 New CS 2 project site September 2008

32 Progress by May 2009

33 Progress September 2009

34

35 New CS 2 methane plant

36 Acrylamide and polyacrylamide Joint venture New biotechnology Replace importation Supply global partner Local raw materials

37 Overview Bio plant: manufacture of bio-acrylamide from acrylonitrile Powder plant: polymerisation of bio-acrylamide and subsequent processing Joint venture technology agreement with Ciba - BASF

38 Key Raw Materials Monomers Acrylamide converted biocatalytically from acrylonitrile Acrylic Acid Both monomers derived from propylene

39 New AM PAM project site February 2008

40 Project progress August 2008

41 Start construction September 2008

42 Seed and main fermenter

43 Bioconversion

44 Fluidised bed drier

45 Tank farm

46 Utilities

47 Plant nearing completion

48 Products Polyacrylamide flocculants Thickening: solid liquid separation in the mining industry Clarification Enhanced tailings disposal Primary use is to recover water and reduce the circulating volume Almost all mineral processing plants have to use flocculants: uranium, gold, platinum, copper, coal, iron ore, diamonds etc.

49 Tailings settlers

50 Tailings disposal

51 Ciba - BASF joint veture Nameplate capacity of the plant is tpa dry polymer powder Sales from Senmin into Africa, Ciba-BASF takes some volume to distribute to the rest of the world

52 Flocculant global market Global market in 2008 for flocculants in mining: tpa Africa: approx tpa Growth in uranium, gold, copper, iron ore, coal on the African continent will increase this to over 20,000 tons per annum within the next three years Australasia: approx tpa

53 Strategic investment Local producer with total reagent suite Market focus in the extractive industries Supply and application of flotation reagents Strategically aligned for market growth