SGS Minerals Presentation


Published on

Published in: Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Good afternoon I would like to take a few moments of your time to describe the market position and services of the Minerals business both now and and in the future.
  • We estimate the global market to be CHF 1.25 BILLION so we have lots of room to grow! The market grows at about 5% per annum for which the key drivers are: Consolidation for efficiency in the large mining houses Traders are expanding up and down the value chain. Demand is increasing: Exploration spending is up 26% year on year. As a result our clients need a reliable global partner which delivers what they need anywhere in the world.
  • As a Group we focus on five main commodity areas Which I will describe individually later: These are: Energy Minerals Non Ferrous Metals and Precious Metals Fertilisers Steel and steel making raw materials Industrial Minerals
  • For each of the commodity sectors we offer a range of services, some “traditional” in the sense that they have been around for a long time and are offered trans-nationally. Here particularly we mention the Trade Related Services. Others are new and offered in response to a significant market need, especially the Trade Financing and risk minimisation Services. Yet others have stemmed from the recent acquisitions of the SSL Group in Australia and the Lakefield Research Group in Canada. Firstly, where we are now:
  • EXPLORATION AND MINE SITE SERVICES We have been involved in this business for some time but the acquisition of SSL in Australia (Analabs) gave us a truly global presence in all of the exploration markets. We have an extensive laboratory network. Some laboratories operate on a hub and spoke system and are off-site Others are attached to mine sites where we offer analytical services for both exploration and production. All of the laboratories have standardised systems and procedures and utilise a single laboratory information management system. This standardisation, effected in the last three months, will further drive the margins in the business. Four new mine-site laboratories have been added in the last two months in Mongolia, New Guinea and South America with another three being added in Q1 2004
  • TRADE RELATED SERVICES This is the “traditional” part of our business. SGS offers these services wherever custody transfer is effected between buyers, sellers and traders. The result of sampling, weight determination and analysis usually culminates in the issuance of a certificate which becomes an intrinsic part of the negotiable documents for the sale. The business grows in line with world minerals trade and capturing market share from our competitors.
  • This is a new suite of services which we have developed leveraging the existing skills within the house. All are designed to reduce risk and facilitate trade. In its simplest form, SGS monitors and controls our clients goods. This allows them to manage their inventory, avoids damage to goods and controls their stock movements. Collateral management services take this one step further where we control a pledge for trade financing. We take control of the warehouse, intake goods (where we are also involved in quality and quantity inspection) and release goods on instruction of the financier.The pledge is then used for further financing To minimise trading risks we offer a range of guarantees for weight, quality and against rejection. Our clients are then able to focus on their trades knowing that these parameters are fully covered
  • There is a general move in the industry towards outsourcing services. Many houses have reduced their technical capabilities yet still require those services on a sub-contracted basis. We offer technical consultancy in sampling and mechanical sampling; We have our own mechanical sampler design team. We provide laboratory design; the entire suite of metallurgy and mineralogy services and value chain management. In two slides I will briefly explain describe metallurgy and value chain monitoring
  • METALLURGY AND MINERALOGY Here we leverage our extensive technical competence to offer a range of high-level services aimed at supporting our clients need for technical skills. Our metallurgy and mineralogy teams provide a globally recognised suite of extractive metallurgy services. These range from the simplest hydrometallurgy flotation testing to flow sheet design to optimise extraction of the metals. The results of this testing and design culminates in the development of a pilot plant to test the theories before the final production plant is built.
  • As I mentioned earlier, our clients have a need to know what they have where, its quality and condition. Value chain monitoring and management provides for that need by integrating our services at every step in the value chain From pit to port and beyond, using sophisticated tracking software, we are able to monitor production, storage, stock-piling, and shipment as well as discharge. Each step requires our in-house expertise in sampling and analysis and gives our clients, through us the opportunity to optimise blending to increase the value of their production. It reduces the risk of incorrect delivery and allows for total control of each step of the process. We believe that this service is one of the key developments for our business for 2004. So where are we in the various commodities:
  • Energy Minerals is a broad group comprising coal, coking coal, metallurgical and petroleum coke. In recent yearS we have also included the refuse derived fuels which play an increasingly important part in energy production, particularly in Europe and North America.
  • This is one of the few commodity segments where we are not the dominant player but intend to be so before the end of 2004. The services encompass the trade of copper, gold, silver, nickel lead and other non-ferrous concentrates and precious metals In 2003 we established four centres of excellence and have expanded the team of specialists responsible for the development of this business. We deliver these services through globally recognised laboratories in the key areas of production and processing
  • Fertilisers and steel are the responsibility of our newly appointed VP who is a globally recognised expert in his field. Particular opportunities exist in value chain monitoring where we have recently signed a global contract with one of the largest producers of fertiliser. In steel, whilst we are largest player, many opportunities exist for us to expand both the service offering as well as our geographical coverage.
  • Fertilisers and steel are the responsibility of our newly appointed VP who is a globally recognised expert in his field. Particular opportunities exist in value chain monitoring where we have recently signed a global contract with one of the largest producers of fertiliser. In steel, whilst we are largest player, many opportunities exist for us to expand both the service offering as well as our geographical coverage.
  • Industrial minerals whilst a large market is very diverse in the range of products sampled and analysed. Throughout the Group SGS has a very experienced team of inspectors and analysts ????????
  • Finally, I would like to leave you with why we believe our clients choose and will continue to choose SGS as their partner in the minerals business. Clearly we are the global leader but more importantly we are able to offer the same service anywhere it is needed by our clients in a fast, efficient and accurate way. We have a great team of recognised specialists who are motivated to provide solutions for our client’s needs wherever and whenever required. Our goal is to manage their risk and optimise their returns by providing solutions to their every need Thank You
  • SGS Minerals Presentation

    1. 2. <ul><li>Minerals Services offer and industry- encompassing range of value added solutions which reduce risk, enhance value and maximise returns at each step of the value chain. </li></ul><ul><li>SGS is the leading supplier of innovative services to this sector. </li></ul>
    2. 3. GEOGRAPHIC DISTRIBUTION <ul><li>Americas </li></ul><ul><li>50 Laboratories </li></ul><ul><li>1965 Employees </li></ul><ul><li>Europe, Africa, Middle East </li></ul><ul><li>30 Laboratories </li></ul><ul><li>1867 Employees </li></ul><ul><li>Asia </li></ul><ul><li>20 Laboratories </li></ul><ul><li>1571 Employees </li></ul>
    3. 4. <ul><li>Energy Minerals </li></ul><ul><li>Non Ferrous Metals and Precious Metals </li></ul><ul><li>Fertilizers </li></ul><ul><li>Steel and steel making raw materials </li></ul><ul><li>Industrial Minerals </li></ul>
    4. 5. <ul><li>Exploration and mine site services </li></ul><ul><li>Trade and shipping related services </li></ul><ul><li>Financing and risk management services </li></ul><ul><ul><li>New approach, new markets </li></ul></ul><ul><li>Technical consulting and advisory services </li></ul><ul><ul><li>Including Metallurgy and Mineralogy </li></ul></ul><ul><ul><li>Value chain monitoring </li></ul></ul>
    5. 6. <ul><li>The leading Inspection provider </li></ul><ul><li>75 laboratories in 17 countries </li></ul><ul><ul><li>20 commercial and 55 mine site </li></ul></ul><ul><li>Commercial, third-party exploration laboratories: </li></ul><ul><ul><li>Off-site, independent exploration laboratory services operating 24 x 365 </li></ul></ul><ul><ul><li>Globally standardised and compliant </li></ul></ul><ul><ul><li>Full range of analytical services offered to multiple clients: Fire assay, aqua regia, cyanide leaching </li></ul></ul><ul><li>On-site laboratories: </li></ul><ul><ul><li>Single client, mine site based analytical services </li></ul></ul><ul><ul><li>Design, build, staff and manage laboratories </li></ul></ul><ul><ul><li>Contract usually basis “life of mine” </li></ul></ul>
    6. 7. <ul><li>Custody Transfer Services </li></ul><ul><ul><li>Sampling </li></ul></ul><ul><ul><li>Weight determination </li></ul></ul><ul><ul><li>Hatch and hold inspection </li></ul></ul><ul><ul><li>Draft survey </li></ul></ul><ul><ul><li>Tally </li></ul></ul><ul><ul><li>Stockpile inventory </li></ul></ul><ul><ul><li>Visual inspection </li></ul></ul><ul><ul><li>Laboratory testing </li></ul></ul><ul><ul><li>Witnessing </li></ul></ul>
    7. 8. <ul><li>Services to Trade Finance providers </li></ul><ul><ul><li>Leveraging existing skills within the Group </li></ul></ul><ul><ul><li>Reducing risk and facilitating trade </li></ul></ul><ul><li>Stock Monitoring and Control </li></ul><ul><ul><li>Inventory management </li></ul></ul><ul><ul><li>Stock movement monitoring and damage control </li></ul></ul><ul><li>Collateral Management </li></ul><ul><ul><li>Monitoring and control of a pledge </li></ul></ul><ul><ul><li>Warehousing, warehouse control </li></ul></ul><ul><ul><li>Goods receipt and dispatch </li></ul></ul><ul><ul><li>World wide presence </li></ul></ul><ul><li>Guarantees </li></ul><ul><ul><li>Full outturn guarantee for weight </li></ul></ul><ul><ul><li>Contained metal guarantee for quality </li></ul></ul><ul><ul><li>Rejection guarantees </li></ul></ul>
    8. 9. <ul><li>Outsourcing of services the driver and the “hollowing out” of customers technical competencies </li></ul><ul><li>Mechanical sampling: </li></ul><ul><ul><li>Performance testing </li></ul></ul><ul><ul><li>Bias testing </li></ul></ul><ul><ul><li>Mobile and fixed sampling augers </li></ul></ul><ul><li>Sampling system consultancy </li></ul><ul><li>Laboratory design and build </li></ul><ul><li>Metallurgy and Mineralogy </li></ul><ul><li>Value chain monitoring and management </li></ul>
    9. 10. METALLURGY AND MINERALOGY <ul><li>Process and flow sheet development for the recovery and purification of metals </li></ul><ul><li>Metallurgical Testing </li></ul><ul><li>Demonstrate newly-designed flow sheets </li></ul><ul><li>HIPAL: </li></ul><ul><li>Test modifications to existing flow sheets without disturbing regular plant production </li></ul><ul><li>Characterization of pilot-plant products </li></ul><ul><li>Tailings and waste-rock characterization </li></ul><ul><li>Geo-technical studies: Hydraulic conductivity, soil-water characteristic curve, grain size, moisture content </li></ul>
    10. 11. VALUE CHAIN MONITORING AND MANAGEMENT <ul><li>Track production and processing from mine face to port </li></ul><ul><li>Integrates sampling, analysis, weight determination </li></ul><ul><li>Interfaces with laboratory systems and back office </li></ul><ul><li>Product blending: Enhanced value </li></ul><ul><li>Reduces uncertainty for delivery </li></ul><ul><li>Risk minimisation for trade financing </li></ul>Image to be supplied by SGS Advance Systems and Process Control
    11. 12. <ul><li>Steam Coal </li></ul><ul><li>Coking Coal </li></ul><ul><li>Metallurgical Coke </li></ul><ul><li>Petroleum Coke </li></ul><ul><li>Bio Fuels/RDF (Refuse Derived Fuels) </li></ul><ul><li>Trade Services </li></ul><ul><li>Guarantees </li></ul><ul><li>Collateral Management </li></ul><ul><li>Value Chain Monitoring </li></ul>
    12. 13. <ul><li>Four analytical centres excellence of established </li></ul><ul><ul><li>Netherlands, Peru, Australia and Canada </li></ul></ul><ul><ul><li>LME recognised and in the process of ISO 17025 accreditation </li></ul></ul><ul><li>Party assays for trade </li></ul><ul><li>Umpire analysis for disputes </li></ul><ul><li>Team of specialists, internationally respected </li></ul><ul><li>Contained metal guarantees </li></ul><ul><ul><li>Assume responsibility for metallic content </li></ul></ul><ul><ul><li>Reduce client risks and shipping losses </li></ul></ul><ul><li>Collateral Management and monitoring </li></ul><ul><li>Value chain monitoring </li></ul>
    13. 14. <ul><li>Standard Trade Services </li></ul><ul><ul><li>Pre-shipment Inspections </li></ul></ul><ul><ul><li>Loading/Discharge Supervision </li></ul></ul><ul><ul><li>Sampling and Analysis </li></ul></ul><ul><ul><li>Weight determination / Draft Survey / Tally </li></ul></ul><ul><ul><li>Consulation </li></ul></ul><ul><li>Upsourcing </li></ul><ul><li>Collateral management </li></ul><ul><li>Guarantees </li></ul><ul><li>eReporting </li></ul>
    14. 15. <ul><li>In-Plant Services and Up*sourcing </li></ul><ul><li>Standard Trade Services </li></ul><ul><ul><li>Loading and Discharge Supervision </li></ul></ul><ul><ul><li>Damages, Rust Control </li></ul></ul><ul><ul><li>Dimensions, Tally, Draft Survey </li></ul></ul><ul><ul><li>Sampling / Testing </li></ul></ul><ul><ul><li>Witnessing, Documentation </li></ul></ul><ul><li>Global Trade Solutions ( SGS Back office ) </li></ul><ul><li>eReporting </li></ul><ul><li>Metal Track </li></ul><ul><li>Guarantee Business Solutions </li></ul><ul><li>Advanced Systems and process control </li></ul>
    15. 16. <ul><li>Standard Trade Services </li></ul><ul><ul><li>Pre-shipment Inspections </li></ul></ul><ul><ul><li>Loading/Discharge Supervision </li></ul></ul><ul><ul><li>Sampling and Analysis </li></ul></ul><ul><ul><li>Weight determination / Draft Survey / Tally </li></ul></ul><ul><ul><li>Consulation </li></ul></ul><ul><li>Upsourcing </li></ul><ul><li>Collateral management </li></ul><ul><li>Guarantees </li></ul><ul><li>eReporting </li></ul><ul><li>Advanced Systems and Process Control </li></ul>
    16. 17. WHY OUR CLIENTS CHOOSE SGS <ul><li>Global services leader </li></ul><ul><li>Ability to manage risk and add value to all aspects of the value chain </li></ul><ul><li>Comprehensive, globally standardised procedures </li></ul><ul><li>Trusted, independent, reliable, proactive partner. </li></ul><ul><li>Skilled, motivated personnel and management </li></ul><ul><li>Tailored solutions for every user’s needs. </li></ul><ul><li>Strategically located in key mining and processing regions </li></ul><ul><li>Bankable results </li></ul>
    17. 18. SGS S.A. Mineral Services, 1 Place Des Alpes, P.O. Box 2152 CH-1211 Geneva Tel. + 41(0)22 739 91 11 Fax. + 41(0)22 739 98 22 Email.