chemical services · market large, expanding and exciting target: africa, australasia, chile value...
TRANSCRIPT
Chemical Services Mining Strategy Presentation to Investors
29th September 2009
Global mining production by size of operation
Global known ore reserves
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
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
Total chemical solution
SENMIN (Pty) Ltd
Group mining sales
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2003 2004 2005 2006 2007 2008 2009 H
Sale
(R m
il)
New mining projects in completion phase 2009
o Blue Ridge Q1 o Boynton/ PilanesburgQ1 o Ngezi Plats Zim Q3 o Ruashi DRC Q2o Tenke DRC Q3 o Kayalekera Malawi Q4 o Lumwana Zambia Q2
Working on new SA projects2010
� BKM Phase 2 � Chemwes � Goldfield West Wits � Uranium One (Drum) � Rand Uranium (Cooke Uranium)� Atcom coal
Working on new Africa projects2010
� Buzwagi Gold Tanzania � Unki Plats Zim � Anbatovy Madagascar� Kolwezi Tailings � Kol DRC� Benga Coal Mozambique� Nkwe plats Zimbabwe� Trekkopje
Comprehensive customer service
Integrated storage and preparation
Comprehensive customer service
Integrated storage and preparation
Introduction
� Senmin is a combination of previously Chemserve-acquired businesses
� Allied Colloids SA based in PE - 1987 � Restructured as Chemserve Colloids in 1995 � Focus on mining chemicals and tailings treatment � Pelichem - 2000 representing Ciba, now BASF
� Acquired Sentrachem mining chemicals – 2002 � Manufacturing base and technology
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
Putting the package together
Product portfolio
� Speciality liquid thio mineral collectors� Mineral froth formation chemicals� Unwanted gangue mineral depressants� Polyacrylamide thickening polymers� Tailings polymer rheology modifiers
Senmin adopting model
Technology Costs
Service
Thechemicalsolutions
provider of choice
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
Total chemical reagents “vendor management”
� Major mining companies:
� Platinum
� Diamonds
� Copper
� Coal
� Uranium
� Iron ore
Senmin speciality chemicals
� Create effects in mineral processes� Added in small quantities� Improve outcome in every stage of extraction
Extractive reagents
� Xanthates
� Secondary collectors � Dithiophosphate� Dithiocarbamate
� Depressants� Carboxymethyl cellulose� Guar gum
� Frothers
� Polyacrylamides
Senmin site: Sasolburg
Progress on projects
Guar project completed 2009
Carbon disulphide (CS2)
� Key raw material for mining chemicals� Replace existing plant and importation� New technology based on natural gas� World scale with excess capacity for growth
Advantages of natural gas
� Raw materials� Charcoal supply insecure� Methane composition stable
� Capacity� Maximum capacity of old plant = 72 00mt/a vs 20 000mt/a� Availability of electricity
� Cost effectiveness� Fully absorbed cost is lower for methane
� Much smaller environmental footprint� 140 kWh vs 1600 kWh per ton CS2� Generate steam from exothermic Claus reaction
Old charcoal technology
� In this technology charcoal is used as source of carbon as supplied by a farmer
C + 2S ↔ CS2
New methane technology
� Carbon disulphide (CS2) is formed by the endothermic reaction of methane and sulphur
CH4 + 4S ↔ CS2 + 2H2S
� The reaction takes place in the gas phase at elevated temperatureand pressure
� Sulphur is recovered from the by-product H2S
2H2S + SO2 → 3S + 2H2O
0
5000
10000
15000
20000
25000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Requirement Imports Capacity
CS2 balance
Old CS2 from Charcoal
New CS2 project site September 2008
Progress by May 2009
Progress September 2009
New CS2 methane plant
Acrylamide and polyacrylamide
� Joint venture� New biotechnology� Replace importation� Supply global partner� Local raw materials
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
Key Raw Materials
• MonomersAcrylamide converted biocatalytically from acrylonitrileAcrylic Acid
Both monomers derived from propylene
New AM PAM project site
February 2008
Project progress
August 2008
Start construction
September 2008
Seed and main fermenter
Bioconversion
Fluidised bed drier
Tank farm
Utilities
Plant nearing completion
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.
Tailings settlers
Tailings disposal
Ciba - BASF joint veture
� Nameplate capacity of the plant is 20 000 tpa dry polymer powder
� Sales from Senmin into Africa, Ciba-BASF takes some volume to distribute to the rest of the world
Flocculant global market
� Global market in 2008 for flocculants in mining: 112 000 tpa
� Africa: approx 16 500 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 26 000 tpa
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