the effectiveness of models such as “amira”** in public ... colloboration... · the...

The Effectiveness of Models such as “AMIRA”** in Promoting Industry‐Public Sector Collaboration

Wayne Stange, MD (2010 –Richard Davies, CEO (1994 ‐ 2003)

ATSE: Strengthening Links Between Industry and Public Research Organizations, g g y g ,17‐18th May 2011

Leading Industry Innovation

** AMIRA International Ltd

Agenda

• Overview of AMIRA International Ltd

• Collaboration Case Studies

• Challenges…


AMIRA’s birth: An innovative solution to Industry’s needs

AMIRA’s founders had a broad vision for the Organisation:“To promote and facilitate in every possible way a research and development service for promoting the development of

i l d i t d i d t i f A t li l h ”mineral and associated industries of Australia or elsewhere”

Original company members of A.M.I.R.A.:• The Broken Hill Pty Co. Ltd

• Colonial Sugar Refining Co. Ltd

• Western Mining Corporation Limited

• Mount Isa Mines Ltd

• Imperial Chemical Industries of Australia and New Zealand• Electrolytic Zinc Co. of Australasia Ltd

• Mary Kathleen Uranium Limited

• Consolidated Zinc Pty Ltd

L f i h Si M i M b I l Ch i f AMIRA 1959 72

y

• Cyanamid Australia Pty Ltd

• Associated Pulp and Papers Mills Ltd


Left to right ‐ Sir Maurice Mawby – Inaugural Chairman of AMIRA 1959‐72Dr J C Nixon – Honorary Executive Officer from 1959 to 1968 and President from 1974 to 1979

5

AMIRA International – Current Status

• Members: 87 explorers, producers and suppliers; membership growth is occurring (recognition of value plus AMIRA’s ongoing globalisation )

• AMIRA is a member-based not-for-profit international organisation• Strive to maximise Industry funds directed into R&DStrive to maximise Industry funds directed into R&D

• AMIRA has an international presence (Australia, Canada, Chile, South Africa and USA)

• Business Model: Projects are developed with Member and Research Organization input globally andBusiness Model: Projects are developed with Member and Research Organization input globally and then marketed and executed via an international network regardless of where the project is developed.

• Current Portfolio: 34 projects worldwide across the value chain

• Portfolio Value: $80M (industry cash) as of 30 Dec 09 with $15-20M new projects commencing each year

• Research Collaborators: Over 200 researchers from some 62 Research Organisations around the world

• In its 50+ years of innovation AMIRA has developed and executed over 1,000 projects


y p , p j

Projects are developed across the value‐chain; there is an increasing emphasis on integration

Exploration G S i

MiningMineral Processing

d E t tiSustainability

$8.0m $3.4m $35.4m $1.4m

g p g

GeoScienceg

and Extraction

DiscoveryOre genesis

Comminution energy useFlotation recovery

EnvironmentOH&S

ProductivityMine Safety

$19.8m

Ore identification at depth

Extraction selectivityReagent and Water Recovery

Energy ConsumptionWater Quality and Use

Reduced Operating Costs

Multi‐Disciplinary

Increased Revenue from improved product quality and improved product recoveryI t ti f Mi i d b t iIntegration of Mining and subsequent processingOptimisation of resource characterisation for optimal production and recovery

l & j i d $ $ l d


Large Scale R&D Projects, 2‐4 year Duration and $0.5m‐$1m Annual Budgets

Projects are developed and executed globally

40

20

25

30

35 No. of members

% of membership revenue

0

5

10

15

Africa Australia Europe N. America S. America

AMIRA Offices

Countries with Research Providers

Countries with Sponsors/Members


AMIRA has a strong value proposition for all stakeholdersfor all stakeholders


AMIRA International creates value by:

• Improve the profitability of their existing businessesFinding and delivering on collaborative opportunities for its Members to:• Improve the profitability of their existing businesses,

• Be better positioned for future access to capital as well as more productive use of capital, and

• Identify and make economical new and complex mineral resources

by engaging world class researchers to carry out collaborative projects that create value for the companies that support them.

This leads to significant impact and improvement of industry practice over time

Leading Industry Innovation 8

AMIRA’s Value‐delivery Framework

• Understand industry needs and value drivers

• High impact R&D projects: with potential to make a significant difference to a business

Inputs Outputs

• Identify technology gaps (value chain and/or commodity sector)

• Collect & screen ideas from all stakeholders: focus on value

• Leverage: substantial multiplier (typically ~10:1) to the funds from individual project Sponsors

• Develop collaborative R&D projects that address needs, challenges and opportunities for all the project’s Sponsors

• Risk reduction: multiple Sponsors, proven researchers, AMIRA project oversight

• Technology Transfer: plans are p j p

• Take advantage of access to a global pool of proven quality industry-savvy researchers

gy pin place from project inception, and monitored for effectiveness

• Communication: all facets of project management reported

• Involve supplier companies where appropriate (accelerated technology transfer)

• Effective project oversight and a

project management reported regularly to project Sponsors

• Technical archives: access for all AMIRA members after the confidentiality period expires


p j gcontinuous improvement program

confidentiality period expires

AMIRA develops high‐impact, collaborative R&D projects that meet Sponsor needsMembers AMIRA “signature” projects

shape Industry Practice

AMIRA International• Synthesise Member Needs

• Develop Projects

Member Needs

AMIRA: Brokering a V l B d R&D

Research Providers

p j

• Manage Programs

• Global Technology Programs

• Technology TransferResearch Ideas

• Many more..Value‐Based R&D

Culture

Research Ideas

Projects

CENTRE FOR MINERALS RESEARCHCENTRE FOR MINERALS RESEARCH • Large Scale R&D Projects• 2‐4 year Duration and • $0 5m $1m Annual Budgets


• Many more…. • $0.5m‐$1m Annual Budgets

AMIRA’s know‐how around IP and commercial management of collaborative research is a key enable

S

Research Contracts

COS(Confirmation of Support)

ResearchOrg 1

Sponsor1

AMIRAResearchOrg 2

Sponsor 2

Org 2

ResearchOrg N

Sponsor N

Pragmatic approach to IP


AMIRA’s Stakeholders

• Resource Companies– Explorers / Developers

AMIRA Members– Operators / Producers

• Suppliers– Reagents and equipment

S i E i i & T h l

Members

– Services: Engineering & Technology

• R&D organisations Our ServiceR&D organisations– Universities– Industrial R&D providers– Technology developers and suppliers– Consultants and other Service Providers

Our Service Providers are Partners

– Consultants and other Service Providers


Value Proposition: Resource Companies

• Participate in high-impact, global collaborative R&D

P j t d li d b l b l t k f hi h lit• Projects delivered by a global network of proven, high quality minerals industry researchers and organisations

• Leverage and risk-sharing of R&D investments

A f k f d l i i d d li i• A proven framework for developing, managing and delivering projects reduces risk and cost

– Legal, administrative, confidentiality, IP, Project Management tools


Value Proposition: Supplier Companies

• Insights into the potential and the limitations of existing and new technology

• Demonstrate new technology to an engaged audience

• Negotiate access to the innovations and IP from collaborative R&D projects

• Participate in forums that identify new business opportunities

• Build better networks with resources industry specialists, current and potential clients


Innovations from AMIRA ProjectsExploration Mineral mapping: B Hobbs AMIRA

F 2003

Ground breaking research that has led to routine exploration applications in regolith geochemistry, image processing, mineral mapping, advanced EM modelling, ore deposits models and

Forum 2003

instrumentation

MiningResearch in mine planning, geomechanics, blasting,

Vastly improved conductivity-depth imaging with layer boundary picking: Jim Macnae EMC 2005

equipment optimisation and automationLHD negotiating Y junction at artificial mine tunnel

Mineral ProcessingDevelopment of many innovative technologies such as Dry-Stream Analyser for representative sampling & presentation of dry free-flowing material: QEMxSEM an automated quantitative system for the identification of mineral components; JkJetLiftpulp lifters for removal of slurry for large grinding mills

A pilot scale version of

Pushed the envelope in the fundamental understanding of flotation, comminution and thickener technology which have significantly improved operational efficiencies.


A pilot scale version of JKJetLift which has improved mill throughput in Alcoa mills by 15% and has reduced capital costs

Leverage: Geomet Mapping Project P843A14000

• 4 year project

• Total project budget

12000

p j g$12,614k (average of $3,153k/a)

• Likely to increase by $1‐2

3170

8000

10000

k, A

UD

)

y y $million (case studies)

• Individual sponsorship $314k (operators);

10422000

1157212614

6000

otal

bud

get (

$k

$314k (operators); $471k for new sponsors

• Current leverage is 42:1

• AMIRA’s fee for Project

71444000

To

• AMIRAs fee for Project Development / Project Management is 8.3% of total project budget

3140

2000

Individual Additional AMIRA's Researcher External Budget for Budget for


total project budget

16

Sponsor Industry Funds

PD & PM In‐kind Fundsg

Researchg

Overall Project

Leverage: Mineral Processing Project P9O16000

• 3 year project (average of $4,564k/a)

T t l j t b d t1904

14000

• Total project budget $13,691k

• Individual sponsorship $1 046k ( t )

10000

12000

$k, A

UD

)

$1,046k (operators)

• Leverage of 13.1:1

• AMIRA’s fee for Project

12645

11787

13691

6000

8000

Tota

l bud

get (

$

Development / Project Management is 13.9% of total project budget

2000

4000

T

10460

IndividualSponsor

Additional Industry F d

AMIRA'sPD & PM

Researcher In‐kind

ExternalFunds

Budget for Research

Budget for Overall P j t


Funds Project

Value Proposition: Service Providers

• Develop and market targeted project proposals through AMIRA’s global network

Gl b l d t• Global exposure and access to– Resource Companies with R&D funds, priorities & culture– R&D collaborations with other researchers and organisations

• Access to long-term, significant funding

• Leverage industry funding through grant funding e.g. access t h h ARC CRC CORFUgovernment schemes such as ARC, CRC, CORFU

• Build networks with companies for future 1:1 projects

Att t/ t i ld l h & t d t• Attract/retain world-class researchers & students

• Develop additional career pathways for students


Agenda



• Challenges…


Case Study: P9 – “Optimisation of Mineral Processes by Modelling and Simulation”DescriptionP9 is the world's largest university‐based mineral processing research program. In its 45‐year history it has re‐shaped the practice f d i i d ti i i i l i l tof designing and optimising mineral processing plants,

using mathematical modelling and computer simulation.

Key Achievements (Industry Practice Perspective)B k h t i ti t h i d i ht t t JK R t B k T t• Breakage characterisation techniques : drop‐weight tester, JK Rotary Breakage Tester

• Models of crushers, AG/SAG mills, ball mills, rod mills, screens and hydro‐cyclones

• Power predictions for crushers and mills

• Complete methodology for design and optimisationComplete methodology for design and optimisation

of comminution circuits by computer simulation

• Methodology for designing and optimising flotation circuits

• Computer products for practicing engineers (with JKTech)CENTRE FOR MINERALS RESEARCHCENTRE FOR MINERALS RESEARCH

JKSimMet, JKSimFloat, JKSimDM, JKMBal, DMS Workbook

University of


University of Rio de Janeiro

Case Study: P9 – Mineral ProcessingValue Created over 49 YearsValue Created over 49 Years…

The industry has captured benefits from the program worth many hundreds of millions of dollars, through the application of software arising from the project plus specialist methodologies, new products, instruments and expertise

il bl i i f Th b fit h d ithi th tiavailable in various forms. These benefits have accrued within the operations of all sponsors worldwide

International Research Providers

CENTRE FOR MINERALS RESEARCHCENTRE FOR MINERALS RESEARCH

U i it f

Leverage of Funding• In the comminution area, leverage through parallel projects funded

University of Rio de Janeiro

g g p p jby (Australian) Centre for Sustainable Resource Processing (CSRP)(South African) Technological Human Resources for Industry Programme (THRIP) and (Canadian) National Science Energy Research Council (NSERC)

• In the flotation area, additional leverage obtained through THRIP and NSERC


g gand an ARC (Australian Research Council) Linkage Project

P9: Modelling & Simulation of Mineral Processing Circuits

Long‐term, incremental improvement leading to substantial reform of industry practicessubstantial reform of industry practices delivered by modelling and simulation of Mineral Processing circuits

Fundamental improvements in design and p goperations capability


P9: What about the “Quality” of Research?

• World‐leading infrastructure & technology that allows particles and their interactions to be observedallows particles and their interactions to be observed

• Micron‐level 3D liberation measurements – cracks a• Micron‐level 3D liberation measurements – cracks a 40 year old problem…

• PEPT (Positron Emission Particle Tracking) in flotation and comminution…and comminution…


P934A: West African Exploration Initiative (WAXI‐2)

• Builds off WAXI‐I which assessed exploration potential of the Precambrian Leo‐Man Shield across West African countries

• Assists exploration companies in focusing their activities• Assists exploration companies in focusing their activities

• Builds on WAXI‐I by developing a new geological framework to generate new exploration insights

• Help local Geological Surveys in the region in their role of providing pre‐• Help local Geological Surveys in the region in their role of providing pre‐competitive data and information.

• A key outcome of the project is trained African Geophysicist in exploration geology.


P934A: WAXI is innovative and represents a “template” for future AMIRA projects where similar regional issues existp j g

• A strong and diverse funding base including major and minor explorers, AusAIDand ARC.

– Awarded $1 6M ARC Linkage funding– Awarded $1.6M ARC Linkage funding

– Awarded $500,000 AusAID funding

• An integrated approach to development of local capability (the training of local Geophysicists in exploration geology) whilst simultaneously conducting high quality science‐based research

St ll b ti b t di h i ti l t d i A t li• Strong collaboration between diverse research organisations located in Australia, Czechoslovakia, France (several Universities), South Africa and Burkina Fasso as well as several local Geo Surveys.


P1004: CRC for Deep Exploration Technologies

• Response to need to improve discovery rate, particularly under deep

cover.

I d l d h i i i i i h i ifi l l f i d f di• Industry‐led research initiative with significant levels of industry funding

and funding leverage >30:1 facilitated by AMIRA.

• The CRC was successfully developed through an AMIRA project led by y p g p j y

Tom Whiting (ex VP Exploration, BHP Billiton), Joe Cucuzza of AMIRA and

Graham Carr of CSIRO.

AMIRA i i i l i hi i h DET i h AMIRA• AMIRA maintains an ongoing relationship with DET with AMIRA– Developing additional projects to be undertaken by DET

– Recruiting DET participants


P1004: Research Themes

DEEPER DISCOVERY BY INCREASING THE SEARCH SPACE AT DEPTH &THROUGH COVER

Decrease Cost, make Safer & Improve Value of Drilling

More Efficient Discovery thru Improved Targeting

Improve Drilling Technologies Real Time Data Fusion Deep Targeting

3D Inversion Deep probing El t i l

Seismic for h d k

Increasing the h

Geochemical Drilling3D HoleO i i Capability Electrical

Methodshard rock

environmentssearch space

around drill holesVectors forExploration

through Cover

OptimisationOrientation

Sensors & Rock Characterisation

Data integration for Mineral / lith l i lLighter & Faster

Deep Capacity DrillingSystems

Reduce Drilling Environmental

Footprint & Safety Impact

Fundamentals ofRock Fragmentation

lithologicalidentification


P1024: Australian Mineral Science Research Institute (AMSRI)

A blue‐sky, ambitious project with a focus on step‐change innovationstep change innovation

Total funding of $22 5M over 5 yearsTotal funding of $22.5M over 5 years

• ARC $8.5M

• AMIRA Members $7 5M• AMIRA Members $7.5M

• Government $2.5M

U i iti $4M• Universities $4M


P1024: AMSRI Project Overview

• 5 year project 2006‐2010 “Identify opportunities for step‐change in minerals processing by undertaking fundamental science & engineering studies”

• Funded 50:50 by ARC and 7 global companies, and managed by AMIRAby AMIRA

• Lead research centres– The Wark (Univ. of South Australia) Australian Mineral Science ( )

– JKMRC (Univ. of Queensland)

– University of Newcastle

U i it f M lb

Research Institute (AMSRI)

– University of Melbourne

• Also, various international collaborations


P1024: AMSRI Emerging Concepts

Energy Efficiency

• Coarse Particle Flotation

• Electro‐pretreatment

Improving Recovery

R fl Cl ifi• Reflux Classifier

• Fine Particle Beneficiation

Reducing Water UsageReducing Water Usage

• Fluidized Bed Dry Processing

• Strategies for Fine Claysg y

Process Intensification

• Microfluidics SX


• Property‐switching Reagents

P1050: Microfluidics Solvent Extraction

• Microfluidics technology is used commercially in some high value chemical & biological applicationsvalue chemical & biological applications

• Univ. of South Australia has demonstrated that SX processes can be performed

• The two phases do not mix – they pass by one another

Left: Schematic of the microchip. Right: Images of the (a) inlet and (b) outlet y-junctions; black dots represent the extracted species


dots represent the extracted species

P1050: Microfluidics SX benefits

• Handles particulates extremely well

• Seems amenable to all SX chemistries

• Phases don’t mix• Phases don t mix– No settlers required

– Eliminates crud &entrainment problems

– Organic inventory issubstantially lowered

• Can design chips to be self‐contained for extract & strip– Further shrinks the organic inventory

Enables use of reagents that are more selective but more costly


– Enables use of reagents that are more selective but more costly

P1056: Electro‐pretreatment

• High voltage pulsing is known to bring benefits in liberation and pre‐weakening

– Mineral‐specific responses leads to fracturing at grain boundaries

• Operability issues have been l dsolved

– Commercialisation achieved in high value, low volume applications

– 1t/h pilot plant in Switzerland

• The opportunity now is to capture the benefits in high volume mineral processing applicationsvolume mineral processing applications

• Univ. of Queensland is working with the equipment manufacturer


– Combines expertise in comminution & electrical engineering

P1056: Results

• Weakening of ores has been verified

k d50

60

70

80

ftnes

s (A

*b)

Crusher selFrag

– 10‐50% weakened using JKMRC index of softness

• Increased liberation has 0

10

20

30

40

Prod

uct o

re s

of

been demonstrated– ~35% more particles that are

at least 50% liberated

Cu ore Cu ore Pb/Zn ore Cu/Au ore

80

100

on (%

)

at least 50% liberated

• Fundamentals studied usingimaging techniques

0

20

40

60

Cum

. dis

trib

utio

CrusherselFrag

• Energy requirement established: ~1 kWh/t0

05-1

015

-2025

-3035

-4045

-5055

-6065

-7075

-8085

-9095

-100

Liberation class (%)


P1056: Benefits

Existing Operations

• No grinding circuit capex required for expansions (up to 30% additional throughput could be enabled)additional throughput could be enabled)

• Preferential liberation at grain boundaries is likely to bring substantial benefits for heap leaching– Possibly at <<1 kWh/t

Future Operations

• Replace SAG mill in circuit– 30‐40% less comminution energy

(overall NPV benefit is estimated to be >$300M at present energy costs)

– Improvements to recovery/throughput also expected, due to better liberation


p1 t/h pilot plant

And the “steak knives”…


Agenda



• Challenges…


Context: Industry challenges… • Substantially increased demand• Substantially increased demand…

• Declining grades…

• Increases in waste rock volume…

• Declining discovery rates…g y

• Rising energy and water usage…

• Declining productivity…

• Skills shortages…

• Regulatory uncertainty…


As a Member driven organization in a rapidly evolving industry AMIRA faces a number of challenges and threatsg

• Is technology and technical performance a Strategic issue?– From MD/CEO’s to Technical & Operations Managers…

• Relevance of AMIRA projects to Industry – understanding needs and opportunities…

• Globalisation, industry growth, skills shortage– Makes Member engagement complex: Local AND Global…

– May result in ineffective technology transfer and thus limited “ROI” (Return on y gy (Innovation)

– Operating internationally as a small organization with complex legal requirements

• The “supply side” – our Research Partners– Competitors, allies or both?

– Cost:value of Australian Minerals Research diminishing – offshoring becoming a threat / i


opportunity

– Sustainability: Who will teach the teachers?

As a Member driven organization in a rapidly evolving industry AMIRA faces a number of challenges and threats

• Key to Industry funding is engagement around understanding of needs and challenges and developing “bright ideas” from credible researchers in response…

– Leverage, tax benefits etc. secondary…

AMIRA faces a number of challenges and threats

• Moving from a “project” perspective to a long‐term innovation portfolio structured to meet industry needs and challenges

• Focus on “Value‐Delivery” not “Commercialization”– Commercialization may / may not be part of the Pathway…

• Moving from an Industry‐focused organization to a Member‐focused organizationMoving from an Industry focused organization to a Member focused organization

• Industry is moving from “Global best” to “Global Best” AND “Local Capability”…

• Reducing “cycle time”…

• Engaging with CRC’s….


Thank You!

Questions / Comments?Questions / Comments?


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