Chemical Services · Market Large, expanding and exciting Target: Africa, Australasia, Chile Value...
Transcript of Chemical Services · Market Large, expanding and exciting Target: Africa, Australasia, Chile Value...
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Chemical Services Mining Strategy Presentation to Investors
29th September 2009
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Global mining production by size of operation
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Global known ore reserves
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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
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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
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Total chemical solution
SENMIN (Pty) Ltd
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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)
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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
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Working on new SA projects2010
� BKM Phase 2 � Chemwes � Goldfield West Wits � Uranium One (Drum) � Rand Uranium (Cooke Uranium)� Atcom coal
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Working on new Africa projects2010
� Buzwagi Gold Tanzania � Unki Plats Zim � Anbatovy Madagascar� Kolwezi Tailings � Kol DRC� Benga Coal Mozambique� Nkwe plats Zimbabwe� Trekkopje
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Comprehensive customer service
Integrated storage and preparation
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Comprehensive customer service
Integrated storage and preparation
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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
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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
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Putting the package together
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Product portfolio
� Speciality liquid thio mineral collectors� Mineral froth formation chemicals� Unwanted gangue mineral depressants� Polyacrylamide thickening polymers� Tailings polymer rheology modifiers
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Senmin adopting model
Technology Costs
Service
Thechemicalsolutions
provider of choice
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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
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Total chemical reagents “vendor management”
� Major mining companies:
� Platinum
� Diamonds
� Copper
� Coal
� Uranium
� Iron ore
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Senmin speciality chemicals
� Create effects in mineral processes� Added in small quantities� Improve outcome in every stage of extraction
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Extractive reagents
� Xanthates
� Secondary collectors � Dithiophosphate� Dithiocarbamate
� Depressants� Carboxymethyl cellulose� Guar gum
� Frothers
� Polyacrylamides
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Senmin site: Sasolburg
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Progress on projects
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Guar project completed 2009
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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
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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
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Old charcoal technology
� In this technology charcoal is used as source of carbon as supplied by a farmer
C + 2S ↔ CS2
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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
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0
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Requirement Imports Capacity
CS2 balance
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Old CS2 from Charcoal
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New CS2 project site September 2008
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Progress by May 2009
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Progress September 2009
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New CS2 methane plant
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Acrylamide and polyacrylamide
� Joint venture� New biotechnology� Replace importation� Supply global partner� Local raw materials
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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
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Key Raw Materials
• MonomersAcrylamide converted biocatalytically from acrylonitrileAcrylic Acid
Both monomers derived from propylene
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New AM PAM project site
February 2008
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Project progress
August 2008
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Start construction
September 2008
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Seed and main fermenter
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Bioconversion
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Fluidised bed drier
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Tank farm
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Utilities
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Plant nearing completion
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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.
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Tailings settlers
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Tailings disposal
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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
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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
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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