Presentation made by EPPA/ MPBIASA & SMG Technologies Africa (Pty) Ltd To Mpumalanga Provincial Government ( MPG ) Department of Economic Development & Tourism. 3 rd September 2013 Denis Verity – Head of Research & Development MPBIASA & CEO SMG Technologies Africa (Pty) Ltd. Associates- Phineas Mohlala Lot Mthombeni Sobhuza Nonyane
Agenda • Key trends in metallurgical industry • Challenges for industry • Our product • Corporate structure & offering • Supportive environment
Key trends in metallurgical industry include 1. Significant interest in the products and technology to increase profitability 2. Selling prices of nearly all core commodities and metals prices are weak 3. Significant impact of costs incurred by metals processors and recyclers to landfill waste materials 4. Increased environmental regulations imposed upon metals processors and recyclers with respect to landfill waste 5. Strong current focus on alternate sources of energy and the benefits from CO2 credits.
However growth doesn’t = jobs e.g non ferrous metal products
Further challenges • • Increasing energy costs pose a major The energy sector currently accounts threat to manufacturing, rendering for a large percentage of CO2 our historical resource-intensive, emissions, which directly contribute processing-based industrial path to climate change effects. It is clear unviable in the future. (IPAP 2) that without delay we need to implement practices that will reduce demand, choose cleaner sources and • A failure to manage waste and waste deploy the best available energy water leads to socialised costs technologies that will also create through, for example pollution. much needed jobs. (Minister of Dangerous waste (like acid mine Energy, Minister Dipuo Peters, 18 drainage) must be treated to prevent March 2011) damage to ecosystems, infrastructure and health, while the extraction of • value from waste streams improves We must forge ahead to promote a the cost-benefit of waste more inclusive economy (President management overall. (IPAP2) Zuma June 2009)
Challenges • Reuters 23 July 2012 : “ Anglo American Platinum (Amplats), the world's top platinum producer, signalled on Monday it plans to trim loss-making shafts as producers of the metal grapple with depressed prices and a rise in union militancy” • Mining Weekly 23 July 2012: “Struggling Amplats going headlong into market development, cost cutting”
Current products Explosives Products • Toxic emission reduction = carbon • The patented High-Energy credits Products are made principally • Long shelf life from recycled aluminum and aluminum oxides into end • Safe to transport and handle products • Environmentally friendly • Fast reactivity • The technologies mainly use low • Excellent flow characteristics value by-products and waste • Multiple market applications materials from landfills, resulting in low raw material costs, and giving the company a strong competitive advantage
Current products…. proven products Explosives Tests conducted by the CSIR showed Samite Prill blended with commercial explosives: • Increased energy released by +/-40% • Reduced reaction time from 144 to 11ms An international physicist reported the product: • Releases 1.91 times more energy with a resultant increase in detonation pressure of 38 – 40% These have resulted in: • Higher velocity of detonation (VOD) • Greatly improved fragmentation • Reduced drilling & blasting costs by 40% • Improved loading and haulage • Cost savings
Current products…. proven products Energy Products tested with Products have been sold to and Prill is blended with fine coal in a tested with a number of companies pre-combustion strategy for injection including: into burners to achieve the following results: – Xstrata – Anglo Platinum – Reduction in noxious gases by – Merafe Resources up to 40% – Reduction rates on kilns by – CSIR 40% – Mittal Steel – Sulphur and Phosphorous – Sasol reduction – Khumba – Low grade coal utilisation – Increased energy output and CV modification – Increased metallisation •
Corporate structure SMGTA SMGA Group Energy from Environment/ Production SGMA Trading waste waste clean up from waste Operations
SMGA Group Environment/ waste Production from Energy from waste Trading SMGA Operations clean up waste Medical Power generation Carbon Explosives Ferro Chrome High energy product Toxic metals / oxides Manganese for reducing power Metals consumption Ferro Vanadium Landfill Fertilizer Commodities Cement High energy products
Group Support Group support Group support Group support Group support Group support to JV partners to JV partners to JV partners to JV partners to JV partners includes Assistance with Presentation On going acquiring Plant design material support Licence finance Marketing Assistance with Technology & Benefits of on- material acquiring grants resources going R&D Assistance with acquiring Training incentives
Supportive environment Government supportive of green industries: • IPAP 2 will focus on the manufacturing aspects of the Green Economy; namely Green Industries and Industrial Energy Efficiency. (IPAP2) • National Sustainable Development and Action Plan • R2 billion Green Fund (MTEF 2012 – 14) administered through the DBSA • EDD & IDC Green Industrialisation Work Programme of R25 billion • Integrated Resources Plan • Tax Incentive Regulations to support Energy Efficiency Regulations once promulgated • Green Pact • Energy Efficiency Accord
Alignment between government objectives and Samtek Government policy Objectives Samtek delivery National Strategy for Clean energy & energy efficiency; Energy from waste Sustainable Development & sustainable infrastructure Action Plan Sustainable waste management Environment/ waste clean up practices Product from waste National Growth Path; Create and protect jobs Environment waste & clean up; National Strategy for Production of waste; Sustainable Development & Samtech operations; Action Plan; Either through direct operations or IPAP2 through licenced operations and joint ventures
Alignment between business objectives and Samtek Examples of business Samtek delivery objectives Reduce landfill Environment/ waste clean up Reduce costs Product from waste – explosives, energy Reduce emissions Product from waste – explosives, energy, cement product Low cost inputs Product from waste – fertilizer, ferrochrome, Ferro metals, explosives
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