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MINTEK
ANNUAL
REPORT
2007
OUR MANDATEMintek’s mandate is to serve the national interestthrough high-calibre research, development, and technology transfer
that promotes mineral technology, and fosters the establishment and
and products derived from them.
OUR VISIONTo be a global leader in mineral and metallurgical R&D and
technology transfer.
OUR MISSIONTo serve our stakeholders by promoting technology, industrial growth
and human development.
OUR COMPACT• add value to South Africa’s mineral resources;
• expand the country’s mineral technology industries;
• develop the minerals industries in the SADC and throughout Africa;
• support the growth of SMMEs in the minerals sector; and,
annual report 2007annual report 2007
MINTEK
ANNUAL REPORT
2007
CONTENTS
Mintek Mandate, Vision, Mission and Compact..................inside front cover
Highlights 2006 - 2007..........................................................................2
The Mining Value Chain.........................................................................3
Chairman’s Review................................................................................4Board Structure...............................................................................................................4
CEO’s Report.........................................................................................8Management Structure...................................................................................................8
Performance against objectives...........................................................14
Technical Review................................................................................16Gold................................................................................................17
PGMs..............................................................................................20
Ferrous metals..........................................................................................................22
Non-ferrous metals.................................................................................................24
Industrial minerals.................................................................................................28
Quality, Environment and Safety........................................................................29
Commercial Activities..................................................................30Participation in operating companies............................................................31
Mintek business development projects........................................................31
Process control products..............................................................................33
Capital equipment........................................................................................35
South African Reference Materials............................................................35
Minerals Policy and Sustainable Development....................36Mineral Economics and Strategy...............................................................37
Resource-Based Sustainable Development............................................38
Kgabane Jewellery Initiative....................................................................41
People................................................................................42Human Capital Managment..................................................................43
Transformation and Employment Equity................................................43
Black Economic Empowerment (BEE)...............................................44
Participative Approach: Mintek and NUM................................................44
HIV and AIDS..........................................................................................44
Wellness................................................................................44
Diversity.................................................................................................45
SAP and Human Economics...................................................................45
Human Capital Development..................................................................45
Mintek Publications.............................................................48
Financial Statements 2007..................................................51Corporate Governance..............................................................................52
Audit Committee Report..............................................................................55
Directors’ Report.........................................................................................57
Report of the Auditor-General.......................................................................59
Financial statements and notes....................................................................62
Glossary..............................................................inside back cover
Contact details.......................................................inside back cover
annual report 2007 2annual report 2007
HIGHLIGHTS OF
2006-2007
• Independence Platinum agreed to fund a three-year work
technology.
preliminary in vitro
in 2007/08.
®
annual report 20073 annual report 2007
THE MINING VALUE CHAIN
Technologies and services developed by Mintek
Exploration• Geochemical sample analysis;
• Mineral/ore characterisation;
• Artisanal and small-scale mining (ASSM) project evaluation.
Physical separation
• Bulk sample preparation;
•
•
Separation.
Pyrometallurgy• Pelletisation and briquetting;
• Pre-heating and pre-reduction;
• Modelling and simulation;
• SAF control strategy;
• Fluidised bed and condenser technologies;
• High-temperature solid state and phase
Hydrometallurgy and Biotechnology• Atmospheric and pressure leaching;
metals);
• Solvent extraction and ion exchange;
• Electrowinning;
• Process simulation;
• Activated carbon regeneration;
3O
8
recovery;
• Leach circuit control.•
– zinc (PWG to SHG)
• Titanium chlorination technology.
Value addition•
– Catalysis;– Biomedical;– Nanotechnology;
• “Smart” materials and sensors;
• PGM-based superalloys;
• Low-nickel stainless alloys;
General
process mineralogy;
and development;
installation and commissioning;
.
Concentration
Comminution/Flotation
•
• Plant audits;
•
• Control and optimisation strategies.
Mining• ASSM technology;
• Mining inputs economic studies.
annual report 2007 4
Mzi Khumalo
Chairman of the Board
Chairman: Mawenzi
Resources Ltd. and
Metallon Corporation Ltd.
Dr. Paul Jourdan
of Mintek
Abe Mngomezulu
Chief Director: Mineral
Investment and Policy,
Department of Minerals and
Energy
Dr. Nozibele Mjoli
Managing Director:
Hlathi Development
Services
Dr. Frank Crundwell
Consultant:
Crundwell
Management Solutions
Prof. Phuti Ngoepe
Director: Materials
Modelling Centre,
School of Physical
and Mineral Sciences,
University of Limpopo
Gugu Mthethwa
Manager: Acquisitions
Finance Group,
Standard Bank
Ralph Havenstein
CEO: Anglo American
Platinum Corporation Ltd.
Vinogaren Pillay
Executive Director: CSIR
Mining Technology
Mintek Board of Directors
annual report 2007
annual report 20075
Mr Mzi Khumalo,
Chairman of Board.
CHAIRMAN’S REVIEW
I am pleased to report another year of above-average
growth – the second such year in succession - for Mintek’s core
research and development (R&D) business. Total income for the
to R322.02 million, a year-on-year increase of 13.2 per cent, to which the
Science Vote (core funding) contributed 32.4 per cent. Total expenditure
R13.48 million in the sale of an associated company, as well as earned a share
million.
Fuelled by the resources boom, which shows little sign of abating, global
spending on mineral exploration reached a new high estimated at US$7.5 billion
This windfall has seen substantial investment in mineral exploration and
a long time, and have required relatively little exploration investment, but
have required resolution of technical problems, a change in commodity
price, or changes in political environment, to make them commercial
opportunities. Late-stage exploration, which involves a substantial
component of metallurgical test work, has also become increasingly
decision.
The market for minerals technology is strongly dependent on capital
spending in the mining and metals industries. The current strength
of the market is due to the increasing consumption of metals and
the tight supply-and-demand balance. Supply is constrained by
grade (higher-cost) ore bodies and increased environmental and
technological requirements.
During the year under review, Mintek experienced substantial
growth in its activities related to the platinum-group metals
(PGMs), as a result of the continuing high level of interest in new
on the optimisation of gold circuits, cyanide auditing and consulting,
cyanide analyser and LeachStar advanced process control strategy
have been rapidly adopted by industry.
annual report 2007 6
particularly in the areas of PGMs and non-ferrous metals,
has focused on the smaller companies, who do not have the
believe that our ongoing efforts in this regard have made a
considerable contribution to increasing the competitiveness of
of industrial minerals is usually fairly low-intensity, owing to the
relatively small size of the market. However, this year there
was considerable activity in our new diamond characterisation
facility.
Mintek is growing its capacity to lead and support multiple
employment in mining, manufacturing, and agriculture at the local
and rural levels. Substantial growth was experienced in the area
of sustainable development, due to strong support from the DME,
although this activity is expanding rapidly off a low base, and there
must be some caution in future years regarding the potential for
continued increases.
Mintek is playing an increasingly important role in developing the minerals
based organisation, it is important for Mintek to grow sustainably by
the development of future technologies. In this regard, our biggest challenge
is attracting and retaining experienced scientists and engineers in the face of
Mintek also initiated a programme to recruit a small number of highly-skilled,
experienced engineers from overseas.
growth will depend on upgrades to existing technical and pilot-plant infrastructure.
Perhaps the most critical bottleneck in operations is our analytical capacity, which
services the pilot-plant operations as well as external contract work. During the year
but still approximately twice that of preceding years.
annual report 2007
Mr Harold Motaung, and new members Mr Simon Sikhosana, Mr
Mohlomi Ntilane, Ms Lindiwe Mhlabeni, Dr
The current period is a tremendously exciting time to be involved in the
minerals and metals industries. Mintek is well positioned as a premium
provider of services, products, and technology to the minerals industry
worldwide. It has a comprehensive set of strategies that should enable it to
maintain, if not grow, its market share in a highly competitive environment.
both realistic and attainable, and adequate provision has been made to cover
therefore to be secure. Following its strategic R&D framework, Mintek will
continue to invest in long-term applied R&D, contributing to the technologies
of the future to underpin the future competitiveness of our minerals sector and
his contribution to strengthening and growing Mintek into the globally
like to wish him well in his future endeavours.
Mr Mzi Khumalo
7
annual report 2007 8
Dr Paul Jourdan
Dr Roger Paul
Vimlan Govender
Petrus Fusi
annual report 2007
annual report 20079
CEO of Mintek.
Main pic:
An aerial view
of the Mintek
campus.
CEO’S REPORT
As a result of the phenomenal global commodities
boom,
remains a major producer of the world’s most strategic minerals, and
Africa, as well as projects in Zambia and the Democratic Republic of the
have been started around applications for fuel cells and diesel
under our wing, and new projects are planned for the automotive
issues at all levels in South Africa, including participation in the
New Partnership for Africa’s Development (NEPAD) and the African
annual report 2007 10
Dr Paul Jourdan
Dr Roger PaulVimlan Govender Petrus Fusi
Dr Nellie Mutemeri
Agit Singh Muzi Ncgobo
Busi NtuliDr Elma van der
Lingen
Dr Johan Nell
Amanda QuadlingDr Johan Nell as at 31 March 2007
economic growth and development issues around mining and
resources” for United Nations Economic Commission for Africa
where a large number of potential new projects are being
plan was also formulated for the national and international craft
Pics from top
to bottom:
The Atomic Force Micro-
scope.
The bioleach-ing mini-
plant.
Beadmakingfrom recycled
glass.
Samplepreparation.
of granite waste.
annual report 200711
Inc
om
e,
RM
illi
on
Inc
om
ep
er
em
plo
ye
eR
‘00
0income grew from
million in 2006/07,
incurring as income from
the Compact, which I signed with the then Minister of Minerals and
both fundamental and applied research, which has led to a number
Pics from top
to bottom:
Visitors from the Gambian GeologicalSurvey.
Olive spoons made by rural women of South Africa.
Testing precious-metal catalystsfor cleaning up diesel emissions.
A sample of AUROliteTM
gold-basedcatalyst.
annual report 2007 12
success, and plans to scale up the process to a commercial level
the SADC but also in the rest of the African continent and
and products and have provided process development and
assisted NEPAD, UNECA and the AfDB in developing coherent
great potential for creating sustainable livelihoods, it has been our
Science Vote, decentralised divisions into strategic business units (SBUs), and
Our concerted drive towards internal transformation has made the organisation much
more
Pics from top
to bottom:
An industrial CIL gold
plant.
Minfurncarbon-
regeneration furnaces.
Potterymaking.
Trans-formation in the industry.
SSM training at Giyane.
annual report 200713
Pics from top
to bottom:
The Biomedical screening laboratory.
APIC jigging technology.
Harold Motaung,new board chairmanand CEO of Anooraq Resources.
Morake Abiel Mngomezulu,the newly appointedCEO of Mintek, as per 1 September 2007.
The Diamond character-isationlaboratory.
Magnesiummetalproduction.
of the Mineral Development Branch at the Department of Minerals and
combines a little focus, a lot of heart, and a pool of talented
annual report 2007 14
Mandate
Financial perspective
annual report 2007
Sources of income 2005/2006 2006/2007
R million Income, R million Target
Ratio of contract/ total income 53.6% 52.4%
PERFORMANCE AGAINST OBJECTIVES
Stakeholder perspective
Critical objective KPA Target Summary Performance results
}
annual report 200715
Organisational perspective
Measure 2005/2006 2006/2007
Learning and growth perspective
output
Transformational perspective
Employment equity demographics
annual report 2007
annual report 2007 16annual report 2007
annual report 200717
Main pic:
Solvent drying
in the AuTEK
biomedical
screening
laboratory.
TECHNICAL REVIEW
GOLD INDUSTRY
AuTEK – extending the industrial uses of gold
Project AuTEK, the joint R&D initiative between Mintek and the three major
South African gold producers to develop new industrial uses for gold, is now
nanotechnology and biomedical applications.
AuTEK Biomedical
Biomedical research under Project AuTEK, jointly funded by Harmony Gold
and Mintek, focuses on developing new types of metal-based therapeutic
agents, with the emphasis on cancer, malaria, and HIV/AIDS. The past year
in the in-house team. Mintek’s HIV BSL II biomedical laboratory was fully
commissioned, and funding received
from the Technology and Human
Resources for Industry Programme
(THRIP) allowed for the acquisition
of a Nuclear Magnetic Resonance
(NMR) instrument, which will be
commissioned in early 2008. New
development opportunities are being
investigated through networking
and collaborative approaches
to the large pharmaceutical
companies, with the emphasis
on HIV.
More than 170 compounds
have been screened so far for
anti-tumour activity, with 30
per cent showing promising
results. Structure-based
design has resulted in an increase in the “hit rate” (activity plus
selectivity) to 10 per cent. The pharmacological work is largely
undertaken at the universities of Cape Town, Western Cape, and
Pretoria, with synthetic efforts taking place in-house and at three
local universities (Cape Town, Johannesburg, and KwaZulu-
USA for possible assistance with the further development of the
most promising compounds.
Under the HIV programme, more than 100 compounds were
screened in the past year (the majority of them in-house), with an
inhibitor rate of 16 per cent. Advanced studies on 19 interesting
candidates are under way, and it is planned to submit samples to
partners in the USA for further evaluation as a step towards pre-
clinical trials.
Steady progress has also been made in the anti-malarial
programme, which like the cancer programme is also largely
university-based. More than 40 ligands have been prepared, and
“Biomedical research
under Project AuTEK,
jointly funded by Harmony
Gold and Mintek, focuses
on developing new types
of metal-based therapeutic
agents, with the emphasis
on cancer, malaria, and
HIV/AIDS.”
annual report 2007 18
Pics from
top to
bottom:
The
biomedical
laboratory –
preparation
of in vitro
cell assays.
The Atomic
Force
Microscope
in the nano-
technology
centre.
A respirator
canister and
AUROliteTM
gold-based
catalyst.
Evaluating
precious-
metal-based
catalysts
for diesel
exhaust
after-
treatment
applications.
complexation studies are in progress. Initial data from screening
tests are expected in the last quarter of 2007.
To date, the AuTEK biomedical programme has produced two
PhD and three MSc graduates, and a further eight PhD, six MSc,
and four post-doctoral candidates are currently registered. Work
under the programme has won seven awards, and resulted in
100 contributions to professional journals and conferences, with
49 being international.
AuTEK Nanotechnology
The AuTEK nanotechnology programme, which is co-funded by
electrochemistry, molecular recognition (biolabelling), and
drug delivery systems. A novel method has been developed
for producing anisotropic precious-metal nanoparticles, and
further work is being carried out to control product quality, particle
size distribution, and reproducibility with the aim of imparting
desirable electronic, magnetic, optical, and catalytic properties.
Certain systems are being investigated for their possible use in
electrochemical sensors for the detection of glucose and other
biological structures.
The production of organically stabilised gold nanoparticles
for application in molecular recognition (biolabelling) has been
successfully scaled up to 2 litre batches. These will be stabilised and
functionalised by attaching bio-molecules, with the goal of developing
malaria, HIV, and diabetes. Similar technology involving multiplexing of the
underlying structure will be utilised to adapt the particles for drug delivery a
well as diagnostics.
To ensure that South Africa remains internationally competitive in this fast-
ordinated at national level by the Department of Science and Technology (DST)
through its National Nanotechnology Strategy. One of the main pillars of this
initiative is establishing a number of innovation centres around the country. Two
centres will be established in 2007, one at Mintek and the other at the CSIR. The
primary aims of the centre at Mintek are to train young scientists who will stimulate
the growth of an emerging nanotechnology industry in South Africa, develop
prototype products, and add value to the precious metals being produced locally.
The DST, the Medical Research Council, and the Water Research Commission
will be participating in the initiative, which will initially have three focal areas around
sensors, molecular recognition, and nanotechnology for the water industry.
AuTEK Catalysis
The AuTEK catalysis programme, which is co-sponsored by AngloGold Ashanti,
seeks to develop gold catalysts for industrial applications. One of the major hurdles to
establishing a gold catalyst market has been a lack of commercially viable quantities
of material for product testing and screening. Large-scale production of gold catalysts
is not easy, owing to issues such as gold particle size, reproducibility, and deactivation,
and involves synthesis techniques that are completely different to those currently
employed in PGM catalyst production. Research at AuTEK has been directed at
overcoming these hurdles and has led to the development of the AUROliteTM range of
gold catalysts.
Under the AuTEK catalysis programme, the current production capacity of 20 kg
per batch is currently being further scaled-up to the 65 kg scale to meet demand.
Construction of the plant, which is sponsored by the DST’s Precious Metals Initiative, is
annual report 200719
Pics from top to
bottom:
AUROliteTM
gold-based
catalyst.
Inspecting
emergency
equipment
during an ICMI
audit of a gold
plant.
Cyanide
speciation by
segmented
analysis.
Calibrating
a Cynoprobe
before
installation on a
gold plant.
expected to be complete by the fourth quarter of 2007.
AuTEK, in conjunction with the World Gold Council (WGC), is
actively marketing these gold-based catalysts under the trademark
AUROliteTM, and supplying end-users. The typical AUROlite
product range includes Au/Al2O3, Au/Fe2O3, Au/TiO2, Au/ZnO. Joint
marketing displays have been held at the North American Catalysts
Conference and Europacat – generating much interest, which has
translated into further orders. AUROlite materials have been supplied to
petrochemicals, oleochemicals, and respirators and other safety equipment.
Gold catalysts are unique in terms of their ability to catalyse oxidation
reactions at low temperature and/or by the use of molecular oxygen.
Examples of such reactions include:
• Carbon monoxide oxidation.
• Oxidation/selective oxidation of organics – e.g. glucose to gluconic acid,
cyclohexane to nylon precursors.
• Epoxidation – e.g. propene to propene oxide.
Gold catalysts have also been found to be suitable for the removal of mercury
from coal power plant emissions, and the hydrodechlorination (destruction) of
ground water pollutants such as trichloroethene.
Gold catalysts also offer the ability to oxidise the carbon monoxide in
hydrogen feedstock for fuel cells, converting it to “inert” carbon dioxide and
thereby preventing degradation of the cell’s performance. Mintek is still
seeking commercial partners to assist in the further development of this
technology, which has been tested at Johnson Matthey’s laboratories
and subsequently trademarked and patented under the name
AUROPureH2TM.
Cyanide services
Mintek took part in full compliance audits of Sasol Polymers’
Sasolburg sodium cyanide plant and of Sasol Infrachem to assess
for compliance with the Producers’ and Transportation codes of the
International Cyanide Management Institute (ICMI). ICMI-based
“gap” audits were also undertaken at the Navachab gold mine in
Namibia and Geita in Tanzania. The audits planned for Iduapriem
and Bibiani in Ghana were re-scheduled, and will now take
place in 2007. Mintek takes the role of technical Expert Auditor
accreditation as Lead Auditor.
At the end of the year under review, the Cyanide Centre
Laboratory underwent an audit in terms of ISO 17025 (Testing
Laboratories), and Mintek expects to achieve full compliance with
this standard in mid-2007.
Mintek has built a solid foundation in soil, solution, and gas-phase
analysis and mass-balancing of cyanide, and is currently looking
at extending this expertise to other metals. As part of this process,
an advance gold-leach reactor is being commissioned that will
enable conditions such as agitation intensity, shear characteristics,
temperature, pressure, pH value, and redox potential to be
carefully monitored and controlled. The pulp can be sampled during
operation, with sub-samples taken for analysis and returned to the
leach without distorting the mass balance. Cyanide concentration and
species are monitored using the Cynoprobe on-line analyser, and a
SCADA system is used for data capture and trending. The new reactor
annual report 2007 20
Pics from top
to bottom:
Apparatus
for
determining
the rate
of oxygen
uptake
during gold
leaching.
Elution
the MINIXTM
gold-selective
resin.
The control
room in
Mintek’s
DC arc
demonstration
smelting
facility.
will initially be used in development work on high-arsenic gold
ores, incorporating arsenic speciation and mass-balancing. The
equipment will eventually form part of a comprehensive facility
for characterisation and problem-solving on gold leach and
adsorption circuits, from both the process and the environmental
aspects.
Process development
An extensive suite of testwork, including mineralogy,
comminution and gravity concentration, leaching, adsorption,
and carbon-in-pulp/carbon-in-leach (CIP/CIL) modelling, was
Gold’s Modder East project. On the commercial plant, which is
being designed by Bateman, about 40 per cent of the gold will
be extracted in a gravity circuit, with the remainder recovered by
CIL. The work showed that recoveries of between 87 per cent and
new gold mine on the East Rand in almost 30 years, is scheduled
to start production in the third quarter of 2009, and will reach a level
of 110 000 ounces (3.42 tons) a year at full output.
Laboratory testwork was conducted to evaluate processing options as
part of the feasibility study, carried out by MDM Engineering, for Mano
River Resources’ New Liberty gold project in Liberia. This project is
production targeted for the latter part of 2007.
A visit was paid to CVG Minerven in Venezuela to carry out a basic
Recommendations were made regarding options for upgrading the plants’
capacities and introducing new technology, as well as for tailings re-
treatment and cyanide management. Further work, including testing of a bulk
sample for process development, is anticipated in 2007.
The MINIXTM gold-selective resin was tested in a resin-in-leach (RIL) pilot plant
at Fairview gold mine, which was run by Gold Fields in collaboration with the
then owners of the mine. Gold Fields, who supply the Biox® technology used at
Fairview, are continuing work with Mintek to reduce the thiocyanate concentration
in the tailings. The MINIX resin was also tested successfully for scavenging
dissolved gold from slimes-dam return water at a Witwatersrand gold mine.
A number of service projects were carried out for projects in Botswana, the DRC,
Ghana, Mali, Romania, Zambia, and Zimbabwe, as well as South Africa. Ongoing
testing of surfactants (wetting agents) for application in heap leaching was conducted
in collaboration with the manufacturer. A new CIP/CIL and resin-in-pulp/resin-in-leach
(RIP/RIL) computer modelling programme was developed to interface with standard
Microsoft®Windows-based processes.
PLATINUM-GROUP METALS (PGM) INDUSTRY
Demonstration of the smelting step of the proposed ConRoast process for recovering
PGMs from high-chromium low-sulphur concentrates continued until the end of the year
under review. Four major DC furnace campaigns have now been conducted, treating a
total of 28 000 tons of revert tailings and other materials with Cr2O
3 contents of up to 5
per cent, at feed rates exceeding 1 000 tons per month. During the last campaign, which
ran continuously for 17 months, the availability of the furnace was 91 per cent.
The full ConRoast process involves the smelting of dead-roasted sulphide concentrates,
with recovery of the PGMs and base metals into an iron-based alloy rather than a sulphide
annual report 200721
Pics from top to
bottom:
A furnace tap
during the
ConRoast
smelting
campaign.
Flotation pilot
Pilanesberg
Pics 3 and 4:
The QEMSCAN
and Mineral
Liberation
Analyser
are used
extensively for
PGM process
development.
of ore types and concentrate compositions - it removes the limits
on the minimum quantities of contained base metals or sulphur, and
can tolerate the high chromite levels in concentrates characteristic
of UG2 ores without the necessity for copper cooling elements in the
furnace sidewalls.
of material was smelted in a 200 kilovolt-ampere DC arc furnace. A high
recovery was obtained, with 98% of the platinum, palladium, and rhodium
reporting to the iron alloy phase. An engineering feasibility study of the
process is under way, with Mintek providing design inputs for the proposed
commercial furnace.
Laboratory and pilot-plant testwork was carried out in support of the
feasibility study, by SRK Consulting, on Platmin’s Pilanesberg project. The
bench-scale testwork was conducted on diamond drill core samples and
the silicate and UG2 ores in industry-standard primary and secondary circuits,
were performed using ore from a trial pit excavated at the Tuschenkomst
property. The data generated during this work will be used to design the
processing plant, which will consist of separate concentrators for the silicate
ore and UG2.
A 60-ton representative sample from Ridge Mining’s Sheba’s Ridge project
was piloted to provide metallurgical design data for the feasibility study.
towards the pre-feasibility study (Annual Report 2006), with recoveries
of 86 per cent for copper, 69 per cent for nickel, and 73 per cent for
is scheduled for completion at the end of calendar 2007. According to
the pre-feasibility study, completed in March 2005, Sheba’s Ridge will
produce 24 000 ton of nickel, 12 000 tons of copper, and 390 000
ounces of PGMs and gold per annum.
Three pilot runs, plus extensive laboratory-scale work, were
completed on different ore types for Barrick Gold’s Sedibelo
project, and this work is continuing into 2007. Other investigations
were carried out for Sylvania Resources on the recovery of PGMs
from chromite tailings, and for AfriOre’s Akanani project (now
owned by Lonmin).
A considerable number of quantitative mineralogical
investigations, using the QEMScan and Mineral Liberation
characteristics of the PGMs, were carried out in conjunction with
the process development work. Mintek also worked closely with
the suppliers of both these technologies to increase the accuracy
of the results from rapid, automated scans of PGM-bearing
samples. This is a particular issue with the PGMs, because of the
overlap in spectral windows. In a new development, a quantitative
scanning electron microscope was set up on site at Mintek for
one of the major PGM producers. Mintek has been running the
instrument on the client’s behalf to provide prioritised mineralogical
support during studies of the various plant streams for mass-balance
purposes and other research projects.
As part of its research into more cost-effective comminution
technologies, Mintek commissioned a pilot-scale high-pressure grinding
annual report 2007 22
Pics from top
to bottom:
A pilot-scale
high-pressure
grinding
roll .
Pouring
molten
metal into
atomiser
cup.
Product from
roll (HPGR). This is a relatively new technology, which uses the
principle of interparticle crushing between two counter-rotating
conventional crushing in certain applications, the HPGR generates
a product with very favourable characteristics for downstream
processing, from incipient crack formation to complete particle
disintegration.
Testwork has been carried out on a number of ore types, mainly
from the PGM sector. While UG2 ores are generally too abrasive
for effective processing, considerable success has been realised
with Merensky ores. The results show that incorporating a HPGR
before the primary milling stage could lead to lower comminution
costs and enhanced metallurgical performance. Locked-cycle tests
to investigate whether the HPGR could in some instances replace
the primary milling circuit have indicated that a grind of 100 per cent
passing 600 micrometres can be achieved with a circulating load of
70 per cent. Mintek is planning to install a second, larger HPGR during
2007.
Phase 1 of a study in minor element deportment in PGM smelting,
which was conducted as part of the AMIRA P671 Project, was
completed. The results showed the need for further development of
analytical techniques, which would form a basis for the likely extension
of the project.
The Platinum Development Initiative (PDI) is a collaborative programme,
supported by the three major platinum producers, to develop new industrial
uses for platinum. The initial work of the programme focused on developing
platinum-based analogues of nickel-based superalloys. Experimental
phase-diagram work on the platinum-aluminium-chromium and platinum-
nickel-ruthenium systems has been completed, while the establishment of a
thermodynamic database for the platinum-aluminium-chromium-ruthenium alloy
system is almost complete. The outstanding phase diagram work will be done
at the University of the Witwatersrand under the Centre of Excellence in Strong
Materials.
The DST-funded programme for fast-tracking the commercialisation of platinum-
base superalloys has progressed according to plan. Three projects were initially
envisaged – the glass industry, coatings, and powder metallurgy. After a review, the
glass component was terminated, since it was felt that this project could not compete
with the well-established technology offered by the major players in the sector. A R2
million physical vapour deposition system has been commissioned for the coatings
work, which is being undertaken in collaboration with the University of the Free State
alloyed buttons produced at Mintek, and are being characterised at UFS as part of a
PhD study.
An Atomijet atomisation rig, capable of producing platinum powders in the size range
from 30 to 150 micrometres has been commissioned, and an uniaxial compaction press
is being re-furbished and should be delivered in the second half of 2007.
In September, six members of the PDI research team gave presentations at the
Japanese-South African-German Workshop and Summer School in Bayreuth, Germany.
This comprised a gathering of scientists from Germany, Japan, Russia and South Africa
FERROUS METALS INDUSTRY
The titaniferous magnetite layers in the Upper Zone of the Bushveld Complex contains
annual report 200723
Pics from top
to bottom:
Small-scale
smelting
titaniferous
magnetite.
Conducting
a ferronickel
smelting
campaign at
Mintek for
Oriel Resources
Plc.
A grinding ball
sectioned for
metallurgical
analysis.
SmartboltTM
austenitic
stainless steel.
vast resources of iron, vanadium, and titanium, but to date no
process has been developed that can economically recover
all three of these metals. The high titania levels make the ore
unsuitable for smelting in a traditional blast furnace, and the
and Vanadium, which operate the Mapochs Mine, processes the ore for
iron and vanadium, but discards the low-grade titanium slag.
Veremo Holdings has begun an evaluation of the feasibility of utilising
part of the titaniferous magnetite ore from the Bushveld Complex to
produce iron units that could be used as feed for foundries and steel plants.
The initial feasibility study includes the potential recovery of titania and
vanadium from the slag.
Approximately 5 tons of concentrate was produced from 14 tons of trenched
material and smelted in Mintek’s 200 kilovolt-ampere DC arc furnace.
The testwork was aimed at producing slag that could be used in further
development work, as well as evaluating the deportment of iron, titanium,
and vanadium under varied reducing conditions.
additions, the process could be controlled to produce good-quality iron with
high recoveries and a wide range of titania-containing slag compositions.
Further development work will investigate the feasibility of upgrading
2 and
recovering the vanadium from the slag.
Oriel Resources Plc (Oriel) has been engaged in developing its
Shevchenko Nickel project in Kazakhstan since 2004, and conducted a
major ferronickel smelting campaign at Mintek in 2005 (Annual Report
2005). Bateman was appointed in late 2004 to conduct a feasibility
study that was completed at the end of 2005 based on the work at
Mintek . The process includes an Aerofall mill and Polcal calciner
from Polysius, Germany, and the twin electrode DC arc furnace
is similar to the approach envisaged for the Koniambo ferronickel
project in New Caledonia, now owned by Xstrata.
Oriel has continued to develop the Shevchenko project and
to evaluate the selected process options so that the most
appropriate approach can be chosen for the project to proceed.
Mintek has been conducting additional testwork on these process
options for Oriel to assist with the project development.
In 2005, Mintek began a major collaborative project, funded
by the Innovation Fund and supported by Anglo Platinum, the
University of Pretoria, and an industrial partner, to develop
a more cost-effective grinding ball for the minerals industry.
Samples produced in laboratory-scale melts are undergoing
screening, and in parallel with this, reference balls are being
produced so that the casting methods can be optimised. Batch
tests of balls cast from the most promising materials are planned
Trials of the “smart” rockbolt, or SmartBoltTM, are continuing in
“highly critical” areas on two deep-level gold mines. Mintek is
working with a team of specialists towards the commercialisation of
both the SmartBolt and the HerculesTM low-nickel austenitic stainless
steel, and the Innovation Fund has indicated that it will support
commercialisation if the two projects merit it.
annual report 2007 24
Pics from top
to bottom:
Spiral
separation of
chromite.
Density
fractions of
an iron-ore
sample.
The
Sarcheshmeh
mine in Iran.
The project proposals and funding agreements for the ferrous
and base metals pillars of the Advanced Metals Initiative, which
quarter of 2007. Three projects have been proposed under this
initiative, all of which are aligned strongly with the automotive
industry.
An investigation was begun on the pre-reduction of manganese
ore and the possibility of recovering energy from the liquid slag.
These processes hold potential for reducing the carbon dioxide
emissions produced during smelting, and possibly for the
production of hydrogen.
Work continued on iron ore characterisation for Kumba
Resources in support of the Sishen Expansion Project. In
addition, investigations were carried out on the upgrading of
elutriation, and magnetic separation.
Metallurgical testwork, involving investigations of the size
distribution, comminution characteristics, washability using heavy
liquid separation, and gravity separation using tables and spirals,
was conducted on material from Chromex Mining’s Mecklenburg
chromite project. The results were used as input for the detailed
design and costing exercise, and to forecast the product split into
chemical, and foundry grade).
NON-FERROUS METALS INDUSTRY
The bioleaching work package under the European Union’s BioMinE
project, which is co-ordinated by Mintek, has continued to progress well.
During the year under review, a number of project partners investigated
the process engineering development, as well as the more fundamental
technology, related to the bio-hydrometallurgical treatment of two low-grade
Integrated pilot campaigns on the complex polymetallic concentrates from both
of these deposits is scheduled to begin at Mintek in the second half of 2007,
and will run through to mid-2008. It is anticipated that a number of our European
colleagues in BioMinE will participate in this programme, which, if successful, will
lead to pre-feasibility studies. Although the resources are of European origin, the
outcome of the work will be directly relevant to similar deposits in southern Africa
and in other parts of the world. BioMinE is funded under the EU’s Sixth Framework
Programme (FP6), and is also supported by a major strategic investment by the
DST.
Large-scale piloting of Mintek’s heap bioleaching technology for chalcopyrite-
bearing copper ores continued at the Sarcheshmeh Copper Complex in southern
2005, a further three 20 kt heaps were commissioned at approximately three-monthly
Copper Industries Company (NICICO) has decided to proceed with the development
of a commercial plant, with a capacity of 12 kt of copper metal per annum, at the
Dahrezar copper mine. Mintek will be contributing to the feasibility study for the project,
which is scheduled for completion towards the end of 2007, and will remain closely
involved in the engineering and commissioning of the planned commercial plant.
The successful heap bioleaching of chalcopyritic ores depends on the generation and
preservation of heat of chemical reaction in the heap, and prolonging the permeability
of the heap. These objectives have been realised by a combination of certain heap
construction features and operational tactics, and the life cycle of each heap has been
annual report 200725
Pics from top
to bottom:
Heap bio-
leaching at
Sarcheshmeh.
• Pregnant
leach solution
ponds.
• Pond under
construction.
• Inoculum
preparation
plant.
• Auger
sampling of
heap.
partitioned into several operating stages, each with its own targets
and criteria for completion. This approach has required a new
level of sophistication in heap leaching. For the Iranian pilot plant,
a spreadsheet-based operator advisory and administration system
has been developed, which tracks the life cycle of each individual cell
within a heap, and provides operator support for the most essential daily
decisions. These include the allocation of irrigant (intermediate leach
or to intermediate leach solution), and adjustment of the irrigation and
aeration rates to satisfy the stoichiometry of the reaction and maximise
heat accumulation within the heap. For commercial applications, a more
sophisticated package with additional features is being developed, that will
integrate with current industry-standard SCADA and database software.
As a result of the success at NICICO, Mintek has undertaken a considerable
amount of heap-bioleaching amenability testwork, which could lead to this
technology being further evaluated for application to low-grade copper, nickel
(sulphides and laterites), and uranium deposits in southern and central Africa.
Development continued on a novel technique for inoculating bacteria into
leach heaps, with the aim of obtaining a more rapid start-up and enhanced
oxidation rates, which will lead to higher heap temperatures and faster
copper leaching. A set of 6 m column leach tests were conducted on a low-
grade chalcopyrite ore, and further work is being conducted on techniques
to monitor the process. This project is being carried out with an industrial
partner, with funding from the Biotechnology Partnership and Development
(BioPAD) initiative.
Mintek is continuing with research on the development and optimisation
of molecular techniques for identifying the micro-organisms involved in
tank and heap leaching, in order to gain an improved understanding
vice
versa. Work at the University of the Free State and Rhodes University
on the production of precious-metal nanoparticles by biosynthesis
is focusing on the isolation of the proteins and enzymes involved,
with the aim of linking these to the varios sizes and shapes of
particles that are produced. A second round of THRIP funding has
been received for investigations into the bioleaching of silicate
minerals. Two MSc projects are under way, on nickel laterites (at
the University of KwaZulu-Natal) and the bio-assisted weathering
of kimberlites (at the University of the Witwatersrand), and will
be completed in March 2008. Two BTech projects are being
undertaken at Tshwane University of Technology on the biological
degradation of cyanide species.
In support of a study of a major expansion at the Nkomati
nickel mine, an 80 ton bulk sample of the Chromititic Peridotite
Mineralised Zone (PCMZ) was processed in Mintek’s milling and
The plant incorporated a scavenger cleaner circuit and employed
optimised residence times to enhance the recovery of the slow-
undertaken on a sample from the Main Mineralised Zone (MMZ).
ore, previously regarded as uneconomic, can be processed to
yield a saleable concentrate. This, together with improved metal-
price forecasts, made it possible to lower the cut-off grade applied to
portions of the resource, thus increasing the open-pit reserves.
As a result of applying the lower cut-off grades and including the
annual report 2007 26
Pics from top
to bottom:
Flotation
pilot-plant
campaign on
Nkomati ore.
The Nkomati
Nickel Mine
(photo
courtesy
Nkomati
Nickel).
Pilot-plant
operators
take samples
from the
manganese
solvent-
extraction
circuit
to purify
the cobalt
electrolyte
before
electro-
Copper
electro-
the KOV
PCMZ, Nkomati’s nickel reserves have increased by 50 per
cent – to 485 377 tons. The by-product reserves have also
43 per cent, and 4.181 million ounces of PGMs, a 70 per cent
increase. Based on these positive results, LionOre and ARM
commissioned DRA to proceed with a bankable feasibility study
for the large-scale expansion of the concentrator plants.
The proposed large-scale expansion, planned for 2010, will
incorporate mining of the PCMZ, increasing annual production
to approximately 20 000 tons of nickel and extending the life of
the mine to beyond 2020. An interim expansion exploiting the
disseminated MMZ will maintain nickel production at its current
level of about 5 000 tons per year after the massive sulphide
mineralisation is depleted in 2008.
Mintek has carried out process development work for a number
of copper-cobalt projects in Zambia and the DRC. Among these
a South African mining company in the DRC for many years. The
started up in September 2006. The second phase, which will involve
cobalt metal on-site at Ruashi, is under construction.
Mintek began bench and pilot work, which would be used in the bankable
feasibility study for phase II of the project, in April 2006. Three campaigns
were conducted, and the work was completed during March 2007.
In the design of the solvent-extraction and electrowinning circuit, Mintek
worked closely with Metorex’s design company, TWP Matomo Process
Plant. The plant has been designed for a capacity of 120 000 tons of ore per
month. When the phase II expansion is completed, production at Ruashi is
expected to increase to 45 000 tons of copper cathode and approximately 3
500 tons of cobalt metal and cobalt carbonate per annum.
A major process development campaign was conducted for the KOV copper-
cobalt project, also in the DRC. A total of 27 tons of material was delivered to
laboratory tests to determine the optimum leach conditions, integrated piloting of the
leaching, copper solvent extraction and electrowinning circuit, and Aspen simulation
LME Grade A standard (higher than 99.95 per cent copper), were produced. The KOV
complex, which contains one of the world’s largest high-quality copper and cobalt
resources, is being re-developed by Nikanor plc. The project will include a major
27 500 tons per year of cobalt products.
Dense-media separation, milling, and leaching testwork were carried out to investigate a
Green Team Consultants International.
Mintek has been involved in numerous projects to remove iron and manganese from
dilute cobalt sulphate solutions by oxidative precipitation using air/SO2. This technology
is attractive as it can be done at ambient temperature, relatively low pH, and ferrous
iron is quantitatively removed within 1-2 hours. In order to produce cobalt cathode of the
desired quality, iron, manganese, copper, zinc, and aluminium must generally be removed
from the feed to electrowinning. The requirements to produce an intermediate cobalt salt
are generally less stringent, but usually iron, aluminium, and manganese still need to be
removed.
annual report 200727
Pics from top to
bottom:
The Outotec
high-shear
impeller.
Laboratory
NicksynTM
reagent in
support of the
at Tali Nickel.
The thermal
Magnesium
Process demon-
stration plant.
The recent interest shown in this technology by emerging
copper-cobalt producers in central Africa has encouraged Mintek
to do some work to identify potential scale-up issues. Various
agitators and gas induction systems were investigated, and a high-
shear impeller designed and supplied by Outotec was selected for
further testwork on a 2 m3 scale to examine the effects of parameters
such as SO2
and temperature on the process. Optimisation tests remain to be done
on power consumption and various aspects around gas induction.
Two smelting campaigns were conducted on discard slag from BCL in
Botswana to compare the use of AC and DC furnaces for recovering
nickel and copper. The results showed that both technologies were equally
effective, and that the company could substantially improve the recoveries
in its slag-cleaning operation by adding reductant to the existing settling
furnaces.
The Mintek-developed nickel synergist (Nicksyn™) was evaluated to
optimise nickel recovery and nickel-calcium separation at Tati Nickel in
Botswana. Laboratory test work was conducted at Mintek on the feed to the
nickel solvent-extraction circuit to optimise the combination of the synergist
and the Versatic 10 commercial extractant, and the results applied on the
Activox® hydrometallurgical demonstration plant at Tati using a 0.5 ton
commercial batch of Nicksyn.
on the organic phase, which could result in gypsum formation in
the extraction circuit if the feed becomes saturated with calcium.
Previously, Tati Nickel minimised the problem by diluting the feed
stream with fresh water, but this would increase the size of the
production. Furthermore, with Versatic 10, the pH of extraction
cannot be increased as this causes higher calcium loadings -
extraction stages).
With the synergistic system, the calcium loading was about
one-tenth that obtained previously, and gypsum formation can
be completely avoided. The Versatic-Nicksyn combination also
achieved higher nickel recoveries (99.7 per cent compared
with about 99.3 per cent) using only four stages. In addition,
lower reagent losses were experienced, which can be ascribed
to the much lower pH of operation and the reduction in crude
formation.
Work continued on the production of titanium-aluminium master
alloys by aluminothermic reduction, and a project is in progress
at the University of Cape Town on the fundamental aspects of the
titanium-aluminium-oxygen-carbon-nitrogen system to determine
the best criteria for scale-up.
Following a review of the economics of the Mintek Thermal
Magnesium Process, Anglo American has decided not to pursue
commercialisation, since it is felt that it would not be able to
compete with the low-cost Chinese producers. Mintek will continue to
look for opportunities for applying the technology.
annual report 2007 28
Pics from top
to bottom:
Small-scale
pressure
leaching of
a uranium
contentrate.
uranium
leach liquor.
Uranium
oxide
precipitation.
Hydro-
phobicity
a diamond-
bearing
concentrate.
INDUSTRIAL MINERALS
ambient and pressure leaching, gold diagnostic leaching,
and CIL adsorption, was done for the Buffelsfontein tailings
recovery project owned by First Uranium, the gold and uranium
subsidiary of Simmer and Jack Mines. Based in this preliminary
to recover an uranium concentrate, then pressure leaching,
solvent extraction and ion exchange using NIMCIX continuous
leach residues would be treated in a CIL plant for gold recovery.
Also for First Uranium, pilot-scale leaching was conducted on a
bulk underground sample from the Ezulweni project to produce
a feed for solid-liquid separation, countercurrent decantation,
and ion-exchange testwork. The results will be used to generate
design criteria for a possible NIMCIX plant. Both these projects
are continuing into 2007.
Testwork was completed on the development of the process
Malawi, as part of the bankable feasibility study by GRD Minproc.
Paladin gave the go-ahead for the development of the project in
February 2007, and commissioning is scheduled for the third quarter
of 2008. Kayelekera will be Paladin’s second uranium mine in southern
Africa – Langer Heinrich in Namibia, for which Mintek conducted
2007.
Mintek’s uranium business continues to grow, and an increasing number
of approaches are being received concerning proposed projects on
Witwatersrand-type materials, particularly tailings re-processing for both
uranium and gold. Some of these are potentially very large projects. Mintek’s
strength in this area is the comprehensiveness of the services it can provide,
from initial investigations up to large scale piloting.
During the year, a new laboratory facility for characterising diamonds according
to their hydrophobicity (response to grease-table recovery) and luminescence
(recovery by X-ray methods) was fully commissioned. The laboratory has met with
an extremely favourable response form major industry players, including De Beers,
SouthernEra, and Bateman, and work on optimising recovery processes has been
done for a number of projects in South Africa and overseas. Mintek has engaged
an internationally recognised expert in kimberlite petrology and diamond studies,
and this project will be expanded in 2007/08 to include diamond characterisation for
purposes of marketing valuation and population discrimination.
Ongoing heavy-liquid separation testwork was carried out for De Beers to evaluate
Mintek’s capabilities in chlorination technology were further developed with the
can handle kilogram-size samples, resulting in a much-improved mass balance.
A suite of testwork, including sample characterisation, heavy-liquid separation, shaking-
conducted on a sample of bauxite. The aim of the work was to simulate a processing
annual report 200729
Pics from top
to bottom:
Personal
Protection
Equipment
(PPE) for
radiation
Monitoring a
bulk sample of
uranium ore.
Mintek’s HIV
Committee.
Access to
potentially
hazardous
areas is
restricted
to trained
personnel.
route to remove the quartz and hematite/goethite from the
material. It was found that around two-thirds of the total silica,
and more than half of the Fe2O
3, could be removed, which as well
as resulting in a higher-quality product, would reduce the formation
of “red mud” in the Bayer process.
QUALITY, ENVIRONMENT AND SAFETY
Mintek’s Environmental Management System underwent a successful
audit, for OHSAS 18001 (Occupational Health and Safety), will take place
in 2007, and that for IS0 9001 (Quality) the following year. Re-assessment
The Analytical Services laboratories underwent a successful surveillance
audit for ISO 17025 compliance in 2006.
At the end of the period under review, the Lost Time Injury Frequency Rate
(LTIFR) was 2.0, compared with the target of 1.0. The Client Dissatisfaction
Frequency Rate (CDFR), after consistently achieving the target of less
than 10, rose sharply in the second half of the year. This was due to late
delivery of results, and communication problems with the clients, on
several minor projects undertaken by one of Mintek’s divisions. Steps
have been taken to remedy these problems.
During 2006, two new indices were established: the Major
Environmental Incidents Frequency Rate (MEIFR) and Public
Dissatisfaction Frequency Rate (PDFR). Mintek’s MEIFR is above the
target of 5 at the moment. The upward trend is possibly the result of
as corrective action is implemented. The PDFR (which is a subset
of the MEIFR) is also above the target – however, the public
Mintek is registered as a uranium testwork facility with the NNR
and the Department of Minerals and Energy (DME). A Radiation
Protection Programme (RPP) has been incorporated as part of
the overall Safety, Health, and Environment programme, and
an internal audit schedule, incorporating site inspections by the
NNR, has been implemented.
“During the year, a new laboratory facility
for characterising diamonds according to their
hydrophobicity (response to grease-table recovery)
and luminescence (recovery by X-ray methods) was
fully commissioned.”
annual report 2007 30annual report 2007
annual report 200731
Main pic:Tapping
PGM-bearing
alloy during
a Consmelt
campaign.
annual report 2007
COMMERCIAL
ACTIVITIES
Mintek’s commercial activities comprise participation in operating
companies and joint ventures, sales of equipment and technology licensing
agreements. Mintek also actively promotes the establishment of mineral-
based development projects that could utilise its technologies.
PARTICIPATION IN OPERATING COMPANIES
Mindev (Pty) Ltd. (Mindev) is a wholly owned local holding company that
was established by Mintek in 2002 to support the commercialisation of its
technologies via partnerships in operating business ventures.
Mogale Alloys (Pty) Ltd. was formed in
2003 to recover nickel and chromium
from furnace dust produced by Columbus
Stainless at Middelburg, using the DC
arc furnace at Samancor Ferrochrome’s
Krugersdorp facility. During the period
under review, Mindev concluded the sale
of its 25 per cent interest in Mogale and
a licence agreement for the DC smelting
technology to PGR 17 Investments (Pty)
Ltd., the existing management team,
for a total consideration of R43.15
from the premium that the remaining
shareholders were prepared to
pay in order to gain control of the
company.
Mindev is in the process
of divesting its 25 per cent
shareholding in TollSort (Pty) Ltd., to MikroSort (Pty) Ltd. the
vendors of the optical sorting technology, following a decision
been made in the optical sorting of low-grade gold, PGM, and
other ores, it was decided that the additional investment and
time required to fully develop the technology to a point where it
unacceptably high risk.
MINTEK BUSINESS DEVELOPMENT PROJECTS
Mintek’s Business Development group is pursuing several
opportunities for commercialisation of the organisation’s
intellectual property.
Independence ConRoast PGM Project
In June 2006, Mintek and Independence Platinum Ltd. (IPt), a
subsidiary of Braemore Resources plc, entered into an exclusive
agreement for the commercial development and implementation
of the ConRoast process. In terms of the agreement, IPt will fund a
“Several independent
analyses have concluded
that, depending on the
implementation of smelter
expansions by the major
producers and the number
of new PGM projects that
come on stream, the South
African PGM sector will
require additional smelting
capacity within the next
”
annual report 2007 32
Pics from top
to bottom:
tion testwork.
The SAVMIN
pilot plant
at Grootvlei
gold mine.
Metallo-
graphic
character-
isation of
grinding
balls.
annual report 2007
US$15 million work programme over three years, including a
emerging PGM producers in South Africa.
Several independent analyses have concluded that, depending
on the implementation of smelter expansions by the major
producers and the number of new PGM projects that come on
stream, the South African PGM sector will require additional
than half of the new production will come from UG2 ores,
which pose technical challenges for conventional six-in-line
particularly for nickel, will be needed to enable the processing
of Platreef ores.
As part of the development programme, IPt will continue with the
demonstration work at a commercial scale (from 1 000 - 2 000
tons per month) at Mintek, using a range of high-chromium PGM
concentrates.
IPt is evaluating the project in terms of a smelter with a target
capacity of 360 000 tons of concentrate per annum. The feasibility
annum), which is being conducted by engineering project house TWP
SAVMIN development and licence agreements
Mintek’s SAVMIN process for purifying sulphate-polluted mine drainage
has undergone two highly successful large-scale demonstrations,
Negotiations are now underway to license the technology, on a non-
satisfy the environmental obligations of the mining companies in the area, and
pilot plant is currently underway.
Iron and steelmaking projects
A study was completed for the IDC on cataloguing iron-ore resources in South
The results indicated that an expansion of South Africa’s steelmaking capacity to
supply some of the requirements of the increased world demand for steel could
be feasible.
testing and feasibility study services. These include:
• Maputo Metallurgical Complex - a plant to produce 3 million tons per annum of
steel and 1.5 million tons per annum of iron ore pellets using Palabora magnetite.
• Coega Steel Complex - a plant to produce 3 million tons per annum of steel and 5
million tons per annum of iron ore pellets using Kumba concentrate.
• Northern Cape Steel - a plant to produce 3 million tons per annum of steel using
• A plant to produce around 1 million tons of steel per annum using Foskor magnetite.
• A plant to produce around 1 million tons per annum of iron or steel using Bushveld
Complex magnetite.
annual report 200733
Pics from top
to bottom:
Columns for
heap bioleach
process devel-
opment.
The FloatStar
and optimisa-
tion strategy
is installed on
the majority of
South Africa’s
PGM concen-
trators.
An industrial
milling circuit.
annual report 2007
Heap leaching of nickel laterites
Heap leaching of low grade nickel laterite ores is receiving
considerable attention from nickel producers internationally. If
technically and commercially viable, it will represent a paradigm shift
in the industry. Mintek is drawing on its experience in heap leaching in
other areas to develop expertise in nickel laterite processing, under the
auspices of a project with an industry partner. The Mintek technology,
at this stage, is not unique - it is rather a general competency in this
work in this exciting area.
Thermal magnesium
Following a review of the economics of the Mintek Thermal Magnesium
Process, Anglo American has decided not to pursue commercialisation,
since it is felt that it would not be able to compete with the low-cost Chinese
producers. Mintek will continue to look for opportunities for applying the
technology.
PROCESS-CONTROL PRODUCTS
than expected, mainly as a result of timing problems at various clients’
sites. FloatStars were implemented on a trial basis at Aquarius Platinum’s
Everest operation, and at a major nickel producer in Australia. At the
which set the limits within which the level setpoints can be moved, were
incorporated into the Grade-Recovery Optimiser. Five more banks of
cells were incorporated into the FloatStar control scheme at Tati Nickel
in Botswana, and a successful re-installation was undertaken at
the Crocodile River PGM plant. Service contracts were concluded
major copper producer in Chile.
of minerals in a sample. Such a technique, if successfully
developed, could be used to assist in the design and
of control schemes.
MillStar milling control was implemented on two ball mills at a
zinc producer in Mexico, and this will probably be followed by a
FloatStar installation during 2007. Following a successful trial
period, MillStar stabilising control was installed on the 3 000
ton-per-hour SAG mill - one of the world’s largest - in Chile. The
company has requested Mintek to investigate the feasibility of
installing stabilising control on two further SAG mills.
A new version of the mill power optimiser, which uses dynamic
data to optimise the load setpoint, was implemented at the Mixed
and UG2 plants at Lonmin’s Karee operations, and at Eastern
Platinum C Stream. The optimiser previously underwent trials in
terms of the corporate service contract with Lonmin (Annual Report
2006), which as well as the servicing of all current process-control
installations and software upgrades, includes an agreement for
Mintek to trial-install new technology at Lonmin’s plants in return for
reduced prices on purchases.
annual report 2007 34annual report 2007
Pics from top
to bottom:
A Cynoprobe
was installed
at Polymetall
in Russia, and
this will be
followed by
a LeachStar
controller in
2007.
The measure-
ment cell in
the Cyno-
probe.
Mintek’s Arc
Monitor, or
Arcmon, is
an adjunct to
the FurnStar
Minstral
system that
provides
additional
information
about the
conduction
behaviour
within the
burden in sub-
merged-arc
furnaces.
AngloGold Ashanti’s Mponeng gold mine, which installed the
purchased a Cynoprobe online cyanide analyser to complement
the control strategy. Four WAD Cynoprobes, which are able
to measure the concentration of both “free” and weak-acid-
dissociable cyanide, were installed at local gold plants – two
at Beatrix and two at Driefontein. A unit was purchased by
AngloGold Ashanti’s Siguiri gold mine in Guinea and will
be commissioned in 2007, and a very successful trial was
concluded at Geita in Tanzania.
A Cynoprobe was installed at Polymetall in Russia, and this
will be followed by a LeachStar controller in 2007. Cynoprobes
were purchased by Newmont Mining Corporation’s Midas
operation in Nevada and (together with a LeachStar controller)
at Waihi in New Zealand. A trial installation was begun at the
Newmont/Peñoles La Herradura joint venture in Mexico, and
Barrick’s Henty gold mine in western Tasmania, which previously
had an older version installed on a trial basis, purchased an
upgrade.
Further development of the Cynoprobe is under way, with
measurement range of the instrument to both higher and lower
concentrations while retaining the accuracy across the range. In
particular, the monitoring of “post-mixing” aquatic systems requires the
measurement of free cyanide at parts-per-billion levels.
The latest version of the FurnStar MinstralTM control strategy for
submerged-arc furnaces, which includes power optimisation and
resistance optimisation modules, was released. FurnStar control was
implemented at South Africa’s two newest ferrochromium producers – the
Xstrata-Merafe Lion project and International Ferro Metals’ Buffelsfontein
smelter – which have a combined annual capacity of 627 000 tons of
ferrochromium. Lion Ferrochrome, near Steelpoort in Mpumalanga, which
began production in September 2006, utilises two 63 MVA furnaces. The
in mid-January, and the second of the two 66 MVA furnaces came on line in early
February.
New FurnStar installations were also completed on a further two furnaces at
upgraded with the latest version of the software.
Mintek’s Arc Monitor, or Arcmon, is an adjunct to the FurnStar Minstral system that
provides additional information about the conduction behaviour within the burden in
submerged-arc furnaces. Arcmon makes it possible to study the detailed behaviour
of the electrical circuit in a submerged-arc furnace in real time. Its ability to distinguish
between arcing and resistive conduction provides useful information about the burden
of a furnace within its reactive zone, including the carbon balance and the metal
bath level. Arcing information can also be used to improve the regulation of electrode
Extensive Arcmon studies have been undertaken on the electrical conduction in silicon
metal, ferrosilicon and ferrochromium furnaces, and during 2006 a further trial was
2007.
annual report 200735 annual report 2007
Pics from top to
bottom:
A 125 kilogram
per hour
Minfurn carbon-
regeneration
furnace was
commissioned at
Compañia
Minera San
Simon SA in
Peru.
The latest
version of
the Atomijet
atomiser was
installed and
commissioned at
Impala Platinum
Springs.
Four new
standards in the
series of South
African Refer-
ence Materials
(SARMs) were
manufactured
Metallurgical
accounting
and geological
resource evalu-
ations depend to
a large degree
on the qual-
ity of analytical
results. Mintek
is seeking op-
portunities to
grow its SARMs
business.
CAPITAL EQUIPMENT
A 125 kilogram per hour Minfurn carbon-regeneration furnace was
commissioned at Compañia Minera San Simon SA in Peru. This
was the second installation of the higher-capacity Minfurn, which was
in a larger unit. The larger furnace has a capacity comparable with
conventional regeneration equipment such as rotary kilns, while retaining
the advantages of the unique resistive-heating technology employed in the
Minfurn. A 75 kilogram per hour furnace was installed at Yamana Gold’s São
Francisco operation in Brazil. Orders were received for a further 75 kilogram
per hour unit (Mineração Turmalina, Brazil) and a 125 kilogram per hour unit
(COMARSA, Peru), and these will be commissioned early in 2007. These two
furnaces are the latest PLC-based models, with the ability to allow remote
access via Ethernet if the appropriate hardware is installed.
hopes to break into this market shortly.
The latest version of the Atomijet atomiser was installed and commissioned
capacity of 50 kilograms per batch, can operate at temperatures up to more
than 1 600°C, compared with 1 100°C in earlier models. This extends the
range of materials that can be processed.
SOUTH AFRICAN REFERENCE MATERIALS
Four new standards in the series of South African Reference Materials
– a ferrochromium metal, a ferrochromium slag, a low-grade nickel-
PGM sulphide, and a feed-grade Merensky Reef material. In addition,
four uranium standards were produced for a consulting company. A
uranium ore standard and a UG2 PGM standard will be released
Further gold, uranium, and rock reference materials are planned
to replenish stock levels, as well as new materials for copper,
cobalt, nickel, and tantalite ores, Toxicity Characteristic Leaching
Procedure (TCLP) standards, and polluted soils and sediments. A
vertical stirred mill has been purchased for the fast production of
micrometres) and a small standard deviation.
Metallurgical accounting and geological resource evaluations
depend to a large degree on the quality of analytical results,
and Mintek is seeking opportunities to grow its SARMs business.
The SARM programme has joined the recently formed South
African branch of the ISO Committee on Reference Materials
(REMCO), whose aim is to co-ordinate a broad international effort
“Further development of the Cynoprobe is under
circuitry to extend the measurement range of the
instrument to both higher and lower concentrations
”
annual report 2007 36annual report 2007
annual report 200737
Main pic:Hand-sortingmagnesiteore at a small-scaleoperation in the Limpopo province.
MINERAL POLICY
AND SUSTAINABLE
DEVELOPMENT
MINERAL ECONOMICS AND STRATEGY
Mintek’s Mineral Economics and Strategy Unit (MESU) conducts
regional commodity-based mineral economic studies to promote value
addition and sustainable development through the minerals industry, both in
South Africa and elsewhere in Africa.
Regional Mineral Economics
Strategic regional minerals scans are undertaken to highlight infrastructure
requirements, advantages of ordered development and clustering of
projects, preliminary economic analysis, and identify downstream and value
added developmental opportunities from
mineral-based projects. Two detailed
scans investigated the mineral
potentials of Limpopo and KwaZulu-
Natal.
The Limpopo scan will be used to
develop a mineral strategy for the
year. The KwaZulu-Natal project
re-investigated the remaining
coal mining potential for
the province, reviewed the
industrial minerals sector,
that could be exploited. A key feature of both projects was the
use of GIS software that allowed for different scenarios to be
evaluated. Interactive GIS-based datasets formed an integral
part of the deliverables for these projects.
MESU played a central role in studies of a number of iron
and steel projects in southern Africa. MESU also acted as
secretariat in Maputo Metallurgical Corridor Project, which
investigated the potential to establish a steel complex in Maputo
that would utilise magnetite resources from the Palabora Mining
Company dumps.
RESOURCE BASED SUSTAINABLE DEVELOPMENT
The Resource Based Sustainable Development (RBSD) strategy
has three principal themes.
• A capital equipment and services focus that supports
“Mintek also contributed to the strategy for sustainable development in mining, of development, indicators for and the development of guidelines for various aspects of the environmental impacts of mining operations.”
annual report 2007 38
Pics from top to bottom:MESU is developinga strategy for Limpopo Province for supportingindustrialclusteringof supplier industries.
TheSustainableDevelopment(SD) unit continuedwith the DME’s “SustainableDevelopmentthrough Mining”programme. With water and energy becomingincreasingly scarce, not only in South Africa but across the Africancontinent,these could prove major constraintsto new mininginvestments.
The SD programme alsoundertooka study tour to the EU to engage with the EU mineralsand metals community, including the European Commission.
technology equipment and services solutions to mining
customers around the globe.
• Encouraging the lateral migration of technology from the
minerals sector to elsewhere in the economy.
products, RBSD brings a perspective of opportunities
for industrial, technological, and trade development
“upstream” and “side-stream” to the mining industry.
MESU is developing a strategy for Limpopo Province for
supporting industrial clustering of supplier industries. The
client in this project needs to develop a set of responses and
incentives to create sustainable industries in some of its mining
nodes to ensure that a manufacturing industrial cluster can be
established that is able to outlive the mining sector. The project
advice to industry and government on strategies to maximise
economic linkages and growth.
Economics Support
MESU conducted various empirical analytical studies of mining
commodities, and tracked and evaluated commodity prices cycles.
A diagnostic approach was used to identify key challenges facing the
sector and design appropriate responses. Models that predict and explain
the current commodities booms were developed. MESU was represented
at the G20 Energy and Resources Meeting in Banff, Canada.
Sustainable Development
Sustainable Development through Mining programme
The Sustainable Development (SD) unit continued with the DME’s
“Sustainable Development through Mining” programme. One of the major
projects completed was the development of an auditable checklist for
programming into the Site Inspection Assistance tool being developed for DME
for sustainable development in mining, and the development of guidelines for
various aspects of the environmental impacts of mining operations.
The SD unit is actively pursuing links with various local and international
processing. The Unit started preliminary work on a project funded by the DST that
investigates new technology mixes to conserve water during mining and processing.
becoming increasingly scarce, not only in South Africa but across the African continent,
these could prove major constraints to new mining investments.
annual report 2007
Pics from Top to bottom:MESUconductedvariousempiricalanalyticalstudies of mining sector data such as supply and demand analysiscommodities,and tracked and evaluated commodityprices cycles. A wood-fuelled pottery kiln was designed and commissionedfor the potters at Mapuve village in Limpopo, under the project sponsored by the WF Kellogg foundation.A crusher and mill were set up in Giyani, Limpopoprovince, and tests on vegetable plots have started.A small iGoli (mercury-free gold-recovery) plant was set up near Springs on the East Rand to recover gold from concentratesproduced by a small-scale operator.Mintekparticipated in the planning of the technical programme for the CASM (World Bank) annualconference in Madagascar.
39
REACH
At the beginning of 2006, MESU started investigating the impact
of the European Union’s (EU) REACH policy on South Africa’s
and Africa’s mining industry. South African mineral exports into
the EU were analysed in terms of REACH and other trade policies.
The SD programme also undertook a study tour to the EU to engage
with the EU minerals and metals community, including the European
Commission.
SMALL-SCALE MINING AND BENEFICIATION
the artisanal and small-scale mining sector through researching and
developing appropriate technologies, and by providing training and
support to ensure that development can be as sustainable as possible,
even when based on limited resources.
A wood-fuelled pottery kiln was designed and commissioned for the
potters at Mapuve village in Limpopo, under the project sponsored by
resulting in a higher-quality, more durable product.
A pilot plant was installed at the Lyttelton dolomite mine in Marble Hall
trials, in which the product was compared with commercial fertiliser
on a number of farms in the area, showed this material to be very
successful at improving the growth of a variety of vegetables.
These trials are continuing into 2007.
and mill were set up in Giyani, Limpopo province, and tests
on vegetable plots have started. Acidulation trials are being
carried out to test the release of phosphorus from mixtures of
A small iGoli (mercury-free gold-recovery) plant was set
up near Springs on the East Rand to recover gold from
concentrates produced by a small-scale operator. A pilot-
sized plant has been commissioned at Mintek to demonstrate
the process to potential users. A small group of artisanal
miners from Tanzania were trained in the process, and
a small iGoli plant will be commissioned and an on-site
demonstration will be conducted in Tanzania towards the end
of 2007.
Mintek participated in the planning of the technical programme
Mintek technology for the manufacture of glass has been
transferred to groups of rural people in Limpopo, Kwa Zulu Natal,
Gauteng and Mpumalanga.
annual report 2007 40
Pics from top to bottom:Almost 800 learnersreceived training at Mintek’s Randburg campus and at satellite sites around the country. Women pot-ters were helped to improve their pottery-mak-ing skills and to market their goods, at Letsopa Artwork in and Timbita Pottery in Bushbuck-ridge.
Other spe-cialisedtraining in-cluded craft work (glass beads, jew-ellery, and pottery), soil ameliorantproduction, brickmaking,and orna-mental stone carving.Three glass-beadmakingunits were set up, at Ulundiin Kwa-Zulu-Natal,Hazyviewin Mpuma-langa, and the Cradle of Human-kind World HeritageSite, with training and equipmentsupplied.
A strategic marketing plan was formulated for the national
and international craft market segments. A feasibility study
was conducted to assess the potential of reviving the
sandstone industry in Qwa-Qwa. Business and marketing
plans were drawn up for a number of individual small-scale
operations, and assistance given with sourcing funds.
The MQA has continued Mintek’s accreditation as a skills
provider. During the period under review, 789 learners
received training at Mintek’s Randburg campus and at
satellite sites around the country. The modules included an
introduction to small-scale mining, legislation, exploration
geology, mining survey, minerals processing, health and
adding, and business skills and leadership. The commodities
Other specialised training included craft work (glass beads,
jewellery, and pottery), soil ameliorant production, brickmaking,
and ornamental stone carving. Three glass-beadmaking
units were set up, at Ulundi in KwaZulu-Natal, Hazyview in
with training and equipment supplied. Under the DME’s sustainable
development programme, work on training in ornamental stone
processing using waste material from commercial dimension-
were helped to improve their pottery-making skills and to market
Bushbuckridge.
The Timbita ceramics incubator based at Mintek is in the process
of registering with the MAPPP-SETA, the industry Skills Education
Training Authority (SETA) responsible for facilitating education and
training in the media, advertising, publishing, printing and packaging
sector, as a service provider for the Unit Standard: Craft Production,
according to registered unit standards and nationally recognised
new ceramic items to test the market. Timbita conducts tests on clays
from different localities for their suitability for ceramics or brickmaking, and
a clay database has been set up to record the geographical location of
suitable deposits.
received support from the following organisations:
CASM (Communities and Small-Scale Mining); the DME; the DST; Eskom;
the MQA; Marble Hall Municipality; the seda Technology Programme of the
annual report 200741
Pics from top to bottom:The Kgabane jewellerytrainingprogramme focuses on the manufacture of jewellery in South Africa, using indigenousskills and traditionaldesigns.Swizzle sticks designed with an African theme.Crocheted handbags made by the rural African women. A further seven new workshop facilities – two of which will be funded by mining companies as part of their social offsets programmes - and six upgrades, are planned for 2007.
KGABANE JEWELLERY INITIATIVE
The Kgabane jewellery training programme focuses on the
manufacture of jewellery in South Africa, using indigenous
skills and traditional designs. It also provides manufacturing and
marketing support, as well as training, to poor rural and urban
communities. Eight new jewellery workshops were set up at in
Mpumalanga,
Cape. The workshop at Mopumolo in KwaZulu-Natal is notable for
at Steelpoort was funded by Xstrata as one of their social development
initiatives surrounding the Project Lion ferrochromium-smelting joint
venture.
Eight existing workshops were upgraded during the year. A further seven
new facilities – two of which will be funded by mining companies as part
of their social offsets programmes - and six upgrades, are planned for
2007.
As part of a DME initiative, Kgabane facilitates a skills exchange
programme with the People’s Republic of China. Two teams totalling
scheme to date.
Mintek also facilitated a platinum casting exhibition, in conjunction
with the DME and Lonmin Platinum, at the bi-annual Electra Mining
exhibition in Johannesburg.
“Mintek’s Mineral Economics and Strategy Unit (MESU) conducts regional commodity-
based mineral economic studies to promote value addition and sustainable development through
the minerals industry, both in South Africa and elsewhere in Africa.”
annual report 2007 42annual report 2007
annual report 200743
Main pic:Transformation of Mintek’s work force of highly skilled engineers,scientists and technologistshas improved steadily.
PEOPLE
HUMAN CAPITAL MANAGEMENT
Mintek attributes its position as one of the world’s leaders in mineral and
metallurgical technology to its workforce of highly skilled engineers, scientists
and technologists, who have been developing groundbreaking technologies,
products and services for the local and international mining and minerals
industries since 1934.
For the past few years, the global shortage of hard-core technical skills,
such as engineers, scientists and technical personnel has also become
increasingly evident in the South African labour market. Here the shortage is
companies in the mining, minerals and related industries competing for the
same pool of human capital and expertise in order to survive.
through competition from local and international companies. To offset
these losses the organisation embarked on a successful recruitment drive,
simultaneously developing and formulating a retention strategy to arrest
employee turnover. As one of the most important measures to retain
strategic human capital, the organisation has made every effort to close
the salary gap with the open market, however this is still a challenge for
Mintek. Strong focus has also been placed on succession planning.
TRANSFORMATION AND EMPLOYMENT EQUITY
Despite the great
shortage of engineers,
scientists and
technologists from
the historically
disadvantaged
groups at
managerial and
professional level,
Mintek’s workforce
transformation has improved steadily with the percentage
of historically disadvantaged individuals in all categories
exceeding the 50 per cent mark. The organisation has reached
its Board-approved target of 77 per cent designated group
(DG) representation. Transformation in the group’s technical
business units has also improved, and multilateral initiatives are
being employed to induce scarce scientists, engineers and highly
specialised technical staff from the historically disadvantaged group
to join the organisation.
The table above, extracted from Mintek’s Employment Equity
Report, which was accepted by the Department of Labour during
transformation in respect of previously disadvantaged persons at
management and professional levels.
annual report 2007 44
Pics from top to bottom:TheEmploymentEquity and DiversityForum, which represents all categories of employees,endeavoursto create an environment whichembracesdiversity and employmentequity.
Mintek will be providing intensive in-house labour relations trainingworkshops,which will includeNUM shop stewards.A high level of HIV/AIDS awareness is maintainedby the regular distributionof posters andpamphlets.
BLACK ECONOMIC EMPOWERMENT
A joint survey by Mintek and an independent accredited
consulting organisation to verify the DG-status of the
companies in Mintek’s preferred supplier base found that the
vast majority of suppliers, including recruitment agencies and
labour brokers, were BEE compliant. Mintek has set itself
clear targets, as contained in the Compact with the Minister of
Minerals and Energy, for suppliers’ BEE compliance and will
seek alternative suppliers if these targets are not met.
PARTICIPATIVE APPROACH: MINTEK AND NUM
Mintek’s working relationship with the National Union of
Mineworkers (NUM) remains positive and NUM continually
interacts and consults with Mintek on issues that affect its
members in the workplace. With both parties aspiring to create
a more participative environment, Mintek will be providing
intensive in-house labour relations training workshops, which
will include NUM shop stewards. This will enable both Mintek and
organised labour to effectively engage on the same level in terms
of knowledge and skills in employee relations.
HIV AND AIDS
Mintek’s HIV/AIDS Committee consists of representatives from
management, the NUM, the Staff Association, Health and Safety, and
Mintek’s operating divisions.
A high level of HIV/AIDS awareness is maintained by the regular
distribution of posters and pamphlets. During the year Mintek held
a tuberculosis (TB) awareness campaign. The focus on TB is very
important, since HIV/AIDS usually manifests itself through this disease.
The Occupational Health Clinic distributes the Haart Bulletin News on a
weekly basis to all Mintek peer educators in order to keep them abreast
of the latest information and developments on HIV/AIDS matters. Peer
group counselling training has also been conducted by peer educators
from various divisions at Mintek to develop skills and provide an in-depth
understanding of HIV/AIDS issues.
A dedicated HIV/AIDS site on the Mintek website and intranet is being
developed so that up-to-date information is available at all times.
The Mintek Medical Clinic, in association with the Randburg Municipality,
also offers voluntary HIV/AIDS testing and counselling. The Mintek HIV/
AIDS Committee continues to support the Ikaneng/Itireleng AIDS Outreach
Programme.
The “Know Your Status” campaign is an ongoing initiative and approximately 18
per cent of all Mintek employees know their HIV/AIDS status and efforts are being
made to de-stigmatise HIV/AIDS in the workplace.
WELLNESS
To promote and encourage the wellness of its employees, Mintek, in conjunction
with a well-known behavioural risk management partner, has been providing its
workforce with Employee Assistance Programme (EAP) services. As can be seen
from the growing utilisation of EAP services across various levels of the organisation,
employees are appropriately using the EAP to diminish the potential negative impact of
behavioural risk factors.
Despite the healthy state of the South African economy, statistics have shown that money
annual report 200745
Pics from top to bottom:Mintek has set itself clear targets, as contained in the Compact with the Minister of Minerals and Energy, for suppliers’ BEE complianceand will seek alternativesuppliers if these targets are not met. Minteksupported 44 trainees by providing on-site in-service training to enable students at universities of technology to complete their compulsory one year of practical experience.A total of 335 staff members, as well as an additional 57 non-permanentmembers of staff, received diversetraining and developmentinterventions.
management, relationships, and legal issues were the most
important matters dealt with over this period. As such issues
ultimately increase stress, Mintek will provide stress management
year to assist employees in dealing with matters of this nature.
Counselling services are offered in all of the most commonly spoken
South African languages, which enhances the EAP service considerably.
The EAP services have been well received by a diverse range of Mintek
callers, who are all aware of the multilingual nature of the service and are
comfortable making use of it.
DIVERSITY
The Employment Equity and Diversity Forum which represents all
categories of employees, endeavours to create an environment which
embraces diversity and employment equity. By nurturing diversity and
eliminating equity barriers, while conforming to legislation and best practice,
the Forum strives to ensure that Mintek’s environment is conducive to
meeting strategic and operational goals. The Forum will consult with
management as well as staff with regard to, amongst others matters, the
new Employment Equity Plan 2009.
In the past year, the Forum has actively increased the awareness of
appreciating differences across the organisation. This was initiated
and implemented through a series of activities, beginning with the
short project called “In someone else’s shoes”, which was aimed at
increasing understanding of how people with disabilities have to
function within a work environment.
The Forum, in collaboration with the HIV/AIDS Committee, also
supported the orphans at the Itireleng Home in Soweto.
SAP AND HUMAN RESOURCES
Phase 1 of the SAP HR module, including payroll administration,
year. Phase 1 comprised the upload, set-up and training of all
users, as well as the piloting of the system. It is anticipated that
Mintek will implement Phase II of the SAP HR Module in the new
HUMAN CAPITAL DEVELOPMENT
Staff
Mintek has been actively developing its human capital in order
to be able to compete effectively in the development of its
intellectual property. A total of 335 staff members, as well as an
additional 57 non-permanent members of staff, received diverse
training and development interventions.
Bursary programme and scholarships
Parliamentary Grant, supported 41 undergraduate and 37
supported 44 trainees by providing on-site in-service training to
enable students at universities of technology to complete their
compulsory one year of practical experience. Ten scholarships were
also awarded to students at universities of technology.
annual report 2007 46
Pics from top to bottom:The Mining
Authorityalso supports six graduates completinga one-year internship at Mintek.Pics 2 and 3: Mintekpartici-pates in the Technology and Human Resources for Industry Programme (THRIP), an initiative of the Depart-ment of Trade and Industry adminis-tered by the NationalResearch Foundation.
Mintek hosted a group of girl-learnersfrom schools in and around the greater Johannesburg area as part of the na-tional “bring-a-girl-childto-work” day.
The aim of the bursary programme is primarily to meet the
skills needs of Mintek’s operating technical divisions, and also
to provide appropriately-skilled graduates to the broader South
African minerals and metallurgy sector, as per Mintek’s Mission
Mintek’s bursary programme.
Mintek’s collaboration with the University of Cape Town (UCT)
has led to the awarding of a UCT/Mintek Prestige Scholarship,
granted on the basis of academic merit to a doctoral student
Mintek.
The Department of Science and Technology (DST) funds two
initiatives at Mintek. The Research Professional Development
Programme, comprising eight Fellows at postgraduate level,
aims to address the accelerated development of a group of
poised to contribute to the South African innovation platforms as
Internship Programme, involving seven graduates, aims to provide
valuable practical experience at Mintek to graduates over the course
supports six graduates completing a one-year internship at Mintek.
Where possible, Mintek offers permanent employment to outstanding
interns at the end of their training period.
Mintek participates in the Technology and Human Resources for Industry
Programme (THRIP), an initiative of the Department of Trade and Industry
administered by the
National Research
Foundation. The
programme aims to
promote increased
interaction and
diffusion of technology
between industry, higher
education institutions,
and science, engineering
and technology institutions,
and to provide an enhanced
educational experience
through customised participation by students in collaborative projects. Three of
Mintek’s divisions - Advanced Materials, Hydrometallurgy, and High-temperature
Technology - make extensive use of this programme as a means to conduct
commercially-focused research and development while at the same time exposing
students to industry-relevant activities.
Promoting the engineering profession to girl learners
Mintek hosted a group of girl-learners from schools in and around the greater
Johannesburg area as part of the national “bring-a-girl-child-to-work” day.
In addition, Mintek hosted a number of secondary schools on tours of its facilities during
the course of the year.
annual report 200747
Pics from top to bottom:Minquiz is South Africa’s premier national science competitionfor Grade 12 learners.Learnersattendingthe Gauteng events were given tours of Mintek’s divisionaloperations.A total of 60 schools from all nine of South Africa’s provinces took competition.MinquizFinalists 2006.
Science, engineering and technology (SET) awareness and promotions
Mintek participated in various SET-promotion activities during the
course of the year based on its own awareness and promotion
programme, and also in collaboration with the DST and the Department
of Minerals and Energy (DME). The aim of such engagements is to
promote SET among the general public, and also to generate an interest
in SET-related careers among learners. Events included the DST’s INSITE
exhibition, the Sasol Techno-X exhibition, the DME’s Learner Focus Week,
the Sci-Bono Discovery Centre’s Careers Week, the Rand Easter Show, the
National Science Week, and many university open days.
Adopt-a-School
Kwadedangendlale High School
in Zola North, Soweto, in 2003,
and following the success of
this initiative, extended the
programme to the Itirele-Zenzele
Comprehensive High School at
Waterford Farm, Hartebeespoort,
and Ferndale High School in
Randburg. These schools are
assisted with facilities such as
teaching aids, library facilities,
and computer and laboratory
equipment, with the aim of
improving the teaching of
mathematics and science.
Students are also exposed
to “hands on” science-
related activities during
visits to Mintek, including Mintek’s exciting annual Minquiz
competition.
Minquiz
Minquiz is South Africa’s premier national science competition
for Grade 12 learners. The competition aims to encourage
and to promote an awareness of the importance of minerals
to South Africa. Minquiz started as a local competition for
schools located close to Mintek in 1988, and due to the
popularity of the competition this has now become a national
event.
Mintek aims to continually enhance the prestige and
awareness of the event. About 350 schools from all of South
were given tours of Mintek’s divisional operations. A total of
team-building exercises as well as a motivational talk, directed at
encouraging and motivating both learners and educators.
“Mintek attributes its position as one of the world’s leaders in mineral and metallurgical technology to its workforce of highly skilled engineers, scientists and technologists, who have been developing groundbreaking technologies, products and services for the local and international mining and minerals industries since 1934.”
annual report 2007 48
PUBLICATIONS
1 April 2006-31 March 2007
Abdel-Latif M. Pilot Plant Demonstration of the Mintek Thermal Magnesium Process (MTMP). Proceedings of the International Symposium on Magnesium Technology in the Global Age. Conference of the Metallurgist, Montreal, Quebec, Canada, 1-4 October 2006.*
Barker IJ, Rennie, MS, Hockaday CJ, Brereton-Stiles PJ.Measurement and Control of Arcing in a Submerged-arc Furnace. XI International Conference on Innovations in the Ferro Alloy Industry (Infacon XI), Delhi, 18-20 Feb 2007. pp 685-694.*
Barkhuizen D, McPherson J and Van der Lingen E. Catalysis of the CO Oxidation Reaction by Au/TiO
2, Au/Al
2O
3 & Au/ZnO. Conference:
Catalysis Society of South Africa 2006, Mossel Bay, November 14-20 (2006).
Basson J. Curr TR and Gerricke WA. South Africa’s Ferro Alloys Industry: Present Status and Future Outlook. XI International Conference on Innovations in the Ferro Alloy Industry (Infacon XI), Delhi, 18-20 Feb 2007. pp 4-24.*
Bennett C, Knoblauch J, Foggo C, Strobos PJJ, Van der Spuy
Automation of the Kimberley Nickel Mine Flotation Operation using an Advanced Control System. Metallurgical Plant Design and Operating Strategies (MetPlant 2006), Perth, Australia, 18-19 September 2006.
Bis[bis(diphenylphosphino)ethane]rhodium(I) tetraphenylborate. Acta
Cryst. (2006), E62, m101–m102.*
Introduction of Phosphine-
Part of Solid Phase Peptide Synthesis. Z. Naturforsch. (2007), 62b, pp 460 – 466.*
Butyldiphenylphosphine oxide. Acta Cryst. (2007), E63, pp 1032–1033.*
B. cis-1,2-Bis(diphenylphosphino)ethylene Oxide. Acta Cryst. (2007), E63, pp1387-1389.
Gold (I) Complexes of Cys-Enkephalin. GOLD2006: New Industrial Applications for Gold, Limerick, Ireland, 2-8 September (2006).*
KineticMonte Carlo Simulation of Gold Nanoparticle Growth. GOLD2006: New Industrial Applications for Gold, Limerick, Ireland, 2-8 September (2006).*
Nucleation and Growth of Gold Nanoparticles on Graphite. GOLD2006: New Industrial Applications for Gold, Limerick, Ireland, 2-8 September (2006).*
Experimental and Computational Investigation of Gold Nanoparticle Growth on Graphite. GOLD2006: New Industrial Applications for Gold, Limerick, Ireland, 2-8 September (2006).*
HG. Crystalising gold(I), gold(II) and gold(III) with tetrahydrothiophene. OATA, August (2006), Cape Town, South Africa.
, New Pt-based Alloys for High Temperature Application in Aggressive Environments: The Next Stage. “Platinum Surges Ahead”, 2nd International Platinum Conference, Sun City, 8
– 12 October 2006. South African Institute of Mining and Metallurgy,
Symposium Series S45, pp 57-66.*
Cornish LA, Süss R, Building
a Database for the Prediction of Phases in a Pt-based
Superalloys. “Platinum Surges Ahead”, 2nd International
Platinum Conference, Sun City, 8 – 12 October 2006.
South African Institute of Mining and Metallurgy,
Symposium Series S45, pp 91-102.*
JH. Crystal Structure Changes in Pt-based Superalloys
During in-situ Heating, Microscopy Society of Southern
Africa Conference, Volume 36, p. 8, Port Elizabeth, 28
November – 1st December (2006).
D, Cornish LA. Unexpected Ordering Behaviour of
Pt3Al Intermetallic Precipitates, J. Alloys Compounds
432 (2007) 96–102.*
Iron Redox-Equilibria and Sulphide Capacity of PGM
Smelter-type Slags. Miner. Eng. vol. 19 (2006). pp.
212-218.
J. Critical Assessment of the Quartz Crystal
Microbalance with Dissipation as an Analytical
Tool for Biosensor Development and Fundamental
Studies: Metallo phthalocyanine-Glucose Oxidase Bio-
Composite Sensors, Biosensors Bioelectronics (2007)
in press.*
The
First Tetrazolylidene Complexes of gold(I), ICCC Cape
Town, South Africa, August (2006).
Utilisation
of Various Bonding modes of N-rich Heterocycles in gold(I)
chemistry, OATA, Town, South Africa, August (2006)
Utilisation
of Various Bonding Modes of N-rich Heterocycles in gold(I)
Chemistry, GOLD2006: New Industrial Applications for Gold,
Limerick, Ireland, September (2006).*
Gericke M. SPL8: Application of Biotechnology in the Mining
and Metallurgical Industries. 14th Biennial Congress of the South
African Society for Microbiology.
Glaner L. Cornish, LA and Joja B. The 1000 deg C Isothermal
Section of the Ni-Pt-Ru phase diagram, Microscopy Society of
Southern Africa Conference, Volume 36, p. 9, Port Elizabeth, 28
November – 1 December (2006).
Green BR.
Alternative Flow Sheets Determined by Ore characteristics.
Uranium Africa 2007. 28 –30 March 2007, Balalaika, Sandton.
Hewer R, Vorster J, Steffens FE, Meyer D. 1H NMR-based
Metabolic Disorders in HIV Positive / AIDS Patients. IUBMB, Kyoto,
Japan, June (2006). Paper no. 5P-B-195,
Jones RT and Curr, TR. Pyrometallurgy at Mintek. Southern African
Pyrometallurgy Conference 2006, South African Institute of Mining
and Metallurgy, Johannesburg, 5-8 March 2006, pp 127-150. 2006.*
annual report 200749
McEwan JJ, Scott M and Goodwin FE. The Optimisation of
Hexadecanethiol Coatings to Improve the Tarnish Resistance of
Sterling Silver. South African Institute of Mining and Metallurgy, 8th
International Corrosion Conference, Saxonwold, Johannesburg, 14-
15 November 2006.*
McEwan JJ, Scott M and Goodwin FE. Coatings to Retard the
Formation of Tarnish on Silver and Silver Alloys. South African Institute
of Mining and Metallurgy, 8th International Corrosion Conference,
Saxonwold, Johannesburg, 14-15 November 2006.
Dramatic
Promotion of Gold/titania for CO Oxidation by Sulphate Ions. Chem.
Commun., (2007), pp 1044-1046.*
Effects of Incorporation
of Ions into Au/TiO2 Catalysts for Carbon Monoxide Oxidation Topic
Catal., 44, (2007), pp. 167-172.*
The Synthesis
and Characterization of Gold/polymer Composites. GOLD2006: New
Industrial Applications for Gold, Limerick, Ireland, 2-8 September
(2006).*
Mugonda M. The Socio-economic Implications of Mine Closure - A
South African and Zimbabwean Scenario. First International Seminar
on Mine Closure, Perth, Australia, 13-15 September 2006 and at Hard
Rock 2006 conference, Sustainable Modern Mining Applications,
Tucson, Arizona, USA, 14 Nov 2006.
Muwila A and Papo MJ. A More Corrosion Resistant Hercules(TM)
Alloy South African Institute of Mining and Metallurgy, 8th International
Corrosion Conference, Saxonwold, Johannesburg, 14-15 November
2006.*
Using SLASH to Improve Agricultural
Productivity in the Greater Marble Hall Area. A Presentation of the
Work in Progress. International Coal Ash Conference, CSIR, Pretoria,
2-4 Oct 2006 and The First All-Africa Technology Diffusion Conference,
Birchwood Hotel, Benoni, 12-14 June 2006.*
Soil Properties and Processes
Driving the Leaching of Nitrate in the Forested Catchments of the
Eastern Escarpment of South Africa. 2006. Forest Ecol. Mgmt. J.
Characterisation of Pt-rich Alloys in the Pt-Al-Nb system. Microscopy
Society of Southern Africa Conference, Volume 36, p. 11, Port
Elizabeth, 28 November – 1 December (2006).
A Study of the Ternary Phases in the Pt-Al-Ru system. Microscopy
Society of Southern Africa Conference, Volume 36, p. 12, Port
Elizabeth, 28 November – 1 December (2006).
Paul RL. Gold Research to Industrial Products (AuTek). GOLD2006:
New Industrial Applications for Gold, Limerick, Ireland, 2-8 September
(2006).*
Independence Platinum
Limited (IPt) - Formation and Objectives. “Platinum Surges Ahead”,
2nd International Platinum Conference, Sun City, 8th – 12th October
2006. South African Institute of Mining and Metallurgy, Symposium
Series S45, 231-236, (2006).*
Reinecke IJ and Lagendijk. H. A Twin Cathode DC Arc Smelting
Test at Mintek to Demonstrate the Feasibility of Smelting FeNi from
Calcine Prepared from Siliceous Laterite Ores from Kazakhstan for
Oriel Resources PLC. XI International Conference on Innovations in
the Ferro Alloy Industry (Infacon XI), (2007). pp 781-797.*
Kriel FH and Van Rensburg CEJ. 6-
Thioguanine Derivatives as Potential Anti-Cancer Agents, GOLD2006:
New Industrial Applications for Gold, Limerick, Ireland, 2-8 September
(2006).*
Jourdan PP. Links with Domestic Industry, Downstream Processing and the Provision
of Inputs. Resource based industrialisation in South Africa, Mozambique, March 2006.
Kalala JT. and Hinde AL. Development of Improved Laboratory and Piloting Test Procedures
at Mintek for the Design of AG/SAG Milling Circuits. In: Mular et al., Editors, Proceedings of
International Autogenous and Semiautogenous Grinding Technology 2006. vol. IX, pp 222-239, CIM,
Vancouver, Canada.*
Khanye DS, Caddy J, Layh M. Gold(I) Phosphine Complexes Incorporating Alkyl Substituents with Ethane and Ethylene Backbones. Gold Bull., (2007), 40 (1),pp45-51.*
Khanye DS, Caddy J, Layh M, Marques HM, and
Fernandes MA. Gold(I) Phosphine Complexes Incorporating Alkyl Substituents with Ethane and Ethylene Backbones. GOLD2006: New Industrial Applications for Gold, Limerick, Ireland, 2-8 September (2006).*
Kriel FH, Layh M, Caddy J and Fernandes. M.A.
SAAWK (Suid Afrikaanse Akademie vir Wetenskap en Kuns) Studentesimposium 2006, University of the North West, Potchefstroom, Nov (2006).
Kriel FH, Caddy J, Layh M, Marques HM and
Fernades MA. Gold(I) Phosphine Complexes Incorporating a Hydrazine Bridge. GOLD2006: New Industrial Applications for Gold, Limerick, Ireland, 2-8 September (2006).*
Luckos, A. Denton, G and Den Hoed P.
Current and Potential Applications of Fluid-bed Technology in the Ferroalloy Industry. XI International Conference on Innovations in the Ferro Alloy Industry (Infacon XI), Delhi, 18-20 Feb 2007. pp. 124-132.*
Cornish LA, Chown LH and Süss R.
Hot Corrosion Behaviour of Pt-alloys for Application in the Next Generation of Gas Turbines. “Platinum Surges Ahead”, 2nd International Platinum Conference, Sun City, 8th – 12th October 2006. South African Institute of Mining and Metallurgy, Symposium Series S45, pp 81-90, (2006).*
R. Synthesis and Characterisation of Dialkyl Tin Bis(diphenylphosphino)-Maleic Acid Adducts, the Molecular Structure of Two Polymorphs. J.
Organometall. Chem. (2006), pp 691,717.*
Marsland S. Importance and Method of Using Reference Materials in Measuring
Reliability of Analytical Results and Why Customers Should Use Them. South African Institute of Mining and Metallurgy,
23-24 November 2006. Vol. 107 February 2007.pp 75-78.
Surface Chemistry and Electrocatalytic Behaviour of Tetra-Carboxy
Substituted Iron, Cobalt and Manganese Phthalocyanine Monolayers on Gold Electrode.
Electrochim. Acta (2007) accepted.*
annual report 2007 50
Development of an Effective
Method for Inoculation of Heap Leach Operations. South African
Microbiology Society Congress (SASM 2006), CSIR, Pretoria, 10-12
April 2006.
Slabbert GA and McEwan JJ.
the SMME Industry, 1st All Africa Technology Division Conference, 12-
14 June. pp. 1-13. Tshumisano Trust, June (2006).
Advancements and Applications in Milling Control.
SAIMM/SACAC Colloquium: State of the Art of Automation and
Control in the Metals and Minerals Processing Industries. Rand Water
Board, Rietvlei, SA, 2006.
. Investigation of As-Cast
Alloys in the Pt-Cr-Ru System. J. Alloys Compounds, 416 (2006) pp.
80-92 2006.*
Süss R and Cornish LA. Microstructural Evolution in the Pt-Al-Cr
System. Microscopy Society of Southern Africa Conference, Volume
36, p. 14, Port Elizabeth, 28th November – 1st December (2006).
Traut T, The Application
of Synchrotron Radiation Techniques in the Development of Novel
Gold-Based Anti-HIV Compound. Science@Synchrotron: Cape Town,
February 2007.
Tshikhudo TR. Monolayer Protected Clusters (MPCs) of Gold
and Silver: Preparation and Potential Bio-Analytical Applications.
NanoAfrica Conference, Cape Town, South Africa, 29 November, 2006
and Nanotrends Conference, Midrand, South Africa, 19-21 February,
(2007).*
Tshikhudo RT, Brennan JL, Wang Z and Brust M. Development
Applications. GOLD2006: New Industrial Applications for Gold,
Limerick, Ireland, 2-8 September (2006).*
Tshikhudo RT, Brennan JL, Wang Z and Brust M. Engineering
of Easily Functionalised Water-soluble Gold Monolayer Protected
Clusters (MPCs) for Potential Bioanalytical Applications,
GOLD2006: New Industrial Applications for Gold, Limerick,
Ireland, 2-8 September (2006).*
Van Hege, B, Van Tonder, D, Bell R, Wyethe J and Kotze M.
Recovery of Base Metals Using MetRIX(TM). Conference:
Alta 2006, May, 2006, Perth, Australia (2006).*
Van Staden PJ. Progress at Mintek in Heap Bioleaching.
Proceedings of HydroCopper 2007, IV International
Copper Hydrometallurgy Workshop, 16-18 May 2007,
Viña del Mar, Chile. Menacho, J.M. and Casas De
Prada, J.M. (eds.), pp 17-22.*
Watson A, Cornish LA and Suss R. Development of
a Database for the Prediction of Phases in Pt-based
Superalloys: Cr-Pt-Ru. Rare Metals, Vol.25 No. 5,
October 2006.*
Bidentate Amino- and Iminophosphine Ligands in
Mono- and Dinuclear Gold (I) Complexes: Synthesis,
structures and AuCl displacement by AuC6F5. Inorg.
Chem. Comm. (2007), 10, pp 358-342.*
MA, Layh M, Coyanis M and Van Rensburg CEJ.
Determination of the Biodistribution of Au-compounds
(intended as potential chemotherapeutics) by the
Use of Radiolabelled Tracers - Imaging in Pre-clinical
& Clinical Drug Development. Boston, USA March
2007.
* These papers were peer-reviewed.
annual report 200751
ANNUAL
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2007
CONTENTS
Corporate Governance.......................................................................52
Audit Committee Report.....................................................................55
Directors’ Report.................................................................................57
Report of the Auditor-General .............................................................59
Statements of Financial Position.........................................................62
Statements of Financial Performance..................................................63
Cash Flow Statements.........................................................................64
Statements of Changes in Net Assets.................................................65
Notes to the Annual Financial Statements...........................................66
annual report 2007 52
CORPORATE GOVERNANCE
Mintek is committed to the principles of openness, integrity and accountability in
its dealings with all stakeholders. It endorses the Code of Corporate Practices and Conduct as set out in
the King Report and the Public Finance Management Act, and believes that the primary objective of the
corporate governance system is to ensure that the Board and Management carry out their responsibilities
faithfully and effectively.
BOARD OF DIRECTORS
Mintek’s Board of Directors consists of one executive member and eight non-executive members who
are independently appointed by the Minister of Minerals and Energy in terms of the Mineral Technology
three years, but are eligible for re-appointment. The Board members are chosen for their business
acumen and skills, and bring individual judgement to Board decisions. The Board Secretary is
responsible for ensuring that Board procedures are followed.
The Board met twice to review Mintek’s operational performance and to address issues of strategic
importance.
Table 1. Attendance of Board Members at Board Meetings
Name Jul
2006
Dec
2006
Mr. Mzilikazi Godfrey Khumalo (Chairman) Y Y
Mr. Morake Abiel Mngomezulu Y Y
Dr. Frank Crundwell Y N
Prof. Phuti Esrom Ngoepe Y N
Dr. Nozibele Pauline Mjoli N N
Ms. Gugu Mthethwa Y Y
Mr. Ralph Havenstein Y Y
Mr. Vinogaren Pillay Y N
Note: All the above are non-executive members
Y: Attended meeting. N: Did not attend meeting. A: Alternate attended meeting.
AUDIT COMMITTEE
The Audit Committee meets quarterly. It consists of one Board member and two independently appointed
non-executive members. The Committee operates in terms of a formal charter, and assists the Board in
appropriate accounting policies, internal controls and compliance with laws and regulations are in place. Both
the internal and external auditors have unrestricted access to the Audit Committee.
During the past year, the Committee considered various reports from the internal auditor, as well as the audit report
of residual lives/values of assets, asset impairment and revenue recognition. For the year ended 31 March 2007, the
the South African Statements of Generally Accepted Accounting Practice (GAAP).
Table 2. Attendance of Audit Committee Members at Audit Committee Meetings
Name Apr
2006
Jul
2006
Sep
2006
Nov
2006
Dr. Frank Crundwell (Chairperson) Y Y Y Y
Ms. Gugu Mthethwa (alternate) Y Y Y Y
Mr. Vinogaren Pillay (alternate) Y Y Y Y
Mr. Pieter Taljaard Y Y Y Y
Mr. Tofara Dube Y Y Y Y
Y: Attended meeting. N: Did not attend meeting.
annual report 200753
INTERNAL CONTROL
Mintek maintains internal controls and systems designed to provide reasonable assurance as
accountability of assets. The effectiveness of these controls is monitored by the internal auditors,
who report to the Audit Committee. The Audit Committee has requested management to review and
evaluate Mintek’s existing internal controls to identify areas that can be improved upon.
INTERNAL AUDIT
Mintek’s independent Internal Audit (IA) function has been established in-house and has been capa-
assists Mintek to accomplish its objectives by adopting a systematic, disciplined approach to evaluate
and improve the effectiveness of risk management, control and governance processes. The IA function
has direct access to the Audit Committee.
RISK MANAGEMENT
risks facing the organisation. The Committee provides the Audit Committee with a risk assessment report
at appropriately scheduled intervals. Mintek utilises the services of insurance brokers on an annual basis
to analyse and assess the risks associated with Mintek’s assets, which are insured, together with public
liability and professional indemnity, for the risk assessed.
Table 3. Attendance of Corporate Risk Management Committee at Board Meetings
Name Sep
2006
Mar
2007
Dr. Roger Paul (Chairman and GM representing technology activities) Y Y
Mr. Vimlan Govender (Business and GM representing corporate services) Y Y
Mr. Nick Maritz (Site services and facilities) Y Y
Ms. Hester Pretorius (Finance) Y Y
Ms. Salwa Duyver (Human Resources) Y Y
Dr. Dave Hulbert (Information Technology) Y Y
Mr. Doctor Gule (Information Technology) Y Y
Mr. Hennie Venter (Secretary and QES) Y Y
Mr. Afzal Patel (Security) Y Y
Mr. Jaques Fourie (Internal Audit) Y Y
Y: Attended meeting. N: Did not attend meeting.
HUMAN RESOURCES COMMITTEE
three members of Mintek’s Executive Management. The Committee reviews and determines
the remuneration and terms of employment for Mintek, and as part of this process, gives
consideration to the annual review of remuneration packages based on independent
surveys. The Committee also looks into HR policies, internal controls, circumstances,
conditions and activities that affect material changes to policies and procedures and
conditions of service for all employees and compliance with demands and vested interests of
Table 4. Attendance of Human Resources Committee Members at Human Resources
Committee Meetings
Name Jul
2006
Dec
2006
Mr. Morake Abiel Mngomezulu N Y
Dr. Frank Crundwell N N
Prof. Phuti Esrom Ngoepe N N
Dr. Nozibele Pauline Mjoli Y N
Ms. Gugu Mthethwa N Y
Y: Attended meeting. N: Did not attend meeting.
annual report 2007 54
FRAUD COMMITTEE
Mintek has instituted a fraud prevention plan that incorporates principles contained in the Public Sector Anti-
Corruption Strategy, and which focuses particularly on creating awareness and promoting ethical business
conduct. The Fraud Committee, which consists of standing members with roles in Finance and Security as
well as a neutral Chairperson, is tasked with an ongoing review of the effectiveness of internal controls.
MANAGEMENT
Mintek is managed by a CEO assisted by four General Managers. Together, they make up Mintek’s
Executive Management team, which meets on a regular basis to review strategic and operational issues.
Executive Management is supported by 16 formally appointed divisional managers who are in charge of
Mintek’s operating divisions and centralised support functions.
OPERATIONAL PERFORMANCE
Mintek reports to the Department of Minerals and Energy (DME) and is also accountable to the
Department of Science and Technology (DST) for its Research and Development (R&D) and
organisational, innovation and learning, human resources and transformation perspectives, determined
by the National Council for Innovation (NACI), provide Mintek with a basis for evaluating its activities.
should the need arise.
Mintek’s Executive Committee meets on a weekly basis and the Management Committee convenes
November and presented at the December Board meeting for approval.
GOING CONCERN
SAFETY, OCCUPATIONAL HEALTH AND ENVIRONMENTAL MANAGEMENT
As a responsible corporate citizen, Mintek acknowledges its obligation to its employees and the communities
it serves to conform in its operations to safety, health and environmental laws and the internationally accepted
standards and practices.
annual report 200755
AUDIT COMMITTEE REPORT
The Audit Committee has adopted appropriate formal terms of reference, which have
reference.
In undertaking its responsibilities, the Audit Committee has reviewed the following:
• The effectiveness of the internal control systems;
• The effectiveness of the internal audit function;
• The risk areas of the entity to be covered in the scope of the internal and external audits;
users of such information;
• Compliance with legal and regulatory provisions;
• The activities of the internal audit function;
• The independence and objectivity of the external auditors; and,
• The scope and results of the external audit function.
The Audit Committee is also responsible for:
• Reporting to the Mintek Board and the Auditor-General where the report implicates any members of
the accounting authority in fraud, corruption or gross negligence;
• Communicating any concerns it deems necessary to the Mintek Board;
• Encouraging communication between members of the Mintek Board, senior executive
management, the internal auditors and the external auditors;
• Conducting investigations within the terms of reference;
• Concurring with the appointment of the in-house internal audit function;
• Approving the internal audit work plan; and,
• Setting the principles for recommending the use of the external auditor for non-audit
services.
during the year under review and that these controls have functioned effectively during
the period. The Audit Committee considers Mintek’s internal controls and systems to be
appropriate in all material respects to:
• Reduce the entity’s risks to an acceptable level;
• Meet the business objectives of the entity;
• Ensure the entity’s assets are adequately safeguarded; and,
• Ensure that the transactions undertaken are recorded in the entity’s records.
statements for the year ended 31 March 2006 due to non-compliance of generally accepted
accounting practice in the determination of residual lives/values of assets, asset impairment
and revenue recognition. The audit opinion expressed stated that, except for the effect of
balance sheet date.
annual report 2007 56
management and supported by the Auditor-General:
• The accounting policies and standard operating procedure were reviewed during the course of 2006 and
updated to comply with South African Statements of Generally Accepted Accounting Practice (GAAP).
and is expected to improve the respective internal audit control and reporting measures.
undertaken and the appropriate skills have been sourced from other service providers to ensure that the
accounting recording and reporting issues will be resolved in the short term.
Fraud and theft amounting to R2.9 million was detected ranging from February 2006 to June 2007.
A forensic audit was performed to quantify the full extent of the loss. The employees in question are
loss that Mintek suffered. Full disclosure of this was made under note 34 in the Annual Financial
Statements.
March 2007 and concluded that they fully comply, in all material respects, with the requirements of the
Public Finance Management Act, 1999 (Act No. 1 of 1999), as amended, and GAAP.
The Audit Committee has requested management to review and evaluate Mintek’s existing internal
controls to identify areas that can be improved upon.
The Audit Committee agrees that the adoption of the going concern premise is appropriate in preparing the
which will provide a sound basis for Mintek to meet its obligation to its stakeholders. The Audit Committee
Mr. M Mphomela – Chairman of the Audit Committee
Dated: 31 August 2007
Audit Committee Members:
Dr. PP Jourdan
Dr. J Bredell
Ms. L Mhlabeni
Ms. FG Mthethwa
Mr. S Sikhosana
annual report 200757
DIRECTORS’ REPORT
The directors take pleasure in submitting their report and the Annual Financial Statements for the year ended 31 March 2007.
PROFILE
Mintek is incorporated as a public company in South Africa in terms of the Companies Act, 1973, as amended, and is listed as a national government business enterprise in schedule 3B of the Public Finance Management Act (PFMA), 1999, as amended.
The Board of Directors acts as the accounting authority in terms of the PFMA.
FINANCIAL RESULTS
Mindev, for the year 31 March 2007.
REPORTING STANDARDS
The Mintek Group’s Annual Financial Statements comply with South African Statements of Generally Accepted Accounting Practice and the PFMA.
ORGANISATIONAL STRUCTURE
Mintek’s organisational structure is shown on page 8 of the annual report.
PRINCIPAL ACTIVITIES
Mintek, South Africa’s national mineral research organisation, is an autonomous statutory organisation established to ensure the sustainability and growth of the minerals industry through technology development and transfer. In terms of its mandate under the Mineral Technology Act 30 of 1989, Mintek’s major goals are:
• to contribute to wealth creation and poverty alleviation; and,
• to develop the requisite human capital to sustain the mining and minerals sector.
developing competitive and innovative processing technology and equipment;
• strengthening South Africa’s international position as a supplier of mineral technologies, capital goods and services; and,
• developing regional strategies for the mineral processing sector, concentrating on value-addition, capacity-building and broad-based development.
FINANCIAL AFFAIRS
Review of operations
Revenue
million compared to the previous year.
• The increase is due mainly to growth in commercial and earmarked income. This growth can be attributed to Mintek having adopted a strong commercial focus with an aggressive marketing effort and the commodities boom.
annual report 2007 58
Assets
Capital Expenditure
Capital expenditure for the year amounted to R19.3 million (2006: R19.8 million). The Group disposed of assets with
a net book value of R0.4 million during the year under review.
Property
The reassessment of the useful life of all assets resulted in a reversal of R21 063 of previous year’s excess
prior to 2005/2006.
Investments
During the year under review, the Group disposed of its entire shareholding in Mogale Alloys (Proprietary)
Limited for a consideration of R33 million inclusive of a loan amount of R7 million. This amount is payable in
two installments by 30 April 2008.
JUDICIAL PROCEEDINGS
The directors are not aware of any judicial proceedings against Mintek.
POST BALANCE SHEET EVENTS
February 2006 to June 2007 amounting to R2.9 million. The employees in question are no longer in the
suffered. Full disclosure was made in Note 34 of the Annual Financial Statements.
SUBSIDIARIES
Annual Financial Statements.
THE DIRECTORS OF MINTEK
Dr. PP Jourdan
Mr. MG Khumalo – Chairperson
Mr. MA Mngomezulu
Dr. F Crundwell
Prof. PE Ngoepe
Ms. FG Mthethwa
Mr. R Havenstein
Mr. VP Pillay
Dr. NP Njoli
Mr. TY Dube
Mr. P Taljaard
As at 1 March 2007, the newly appointed directors of Mintek are:
Mr. H Motaung – Chairperson
Ms. FG Mthethwa
Mr. R Havenstein
Mr. S Sikhosana
Mr. M Ntilane
Ms. L Mhlabeni
Dr. J Bredell
Mr. M Mphomela
Dr. B Sehlapelo
The secretary of Mintek is Ms. V Moonsamy, and her business and postal addresses are as follows:
200 Hans Strijdom Drive Private Bag X3015
Randburg Randburg
2125 2125
annual report 200759
REPORT OF THE AUDITOR-
GENERAL
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE GROUP FINANCIAL
STATEMENTS AND PERFORMANCE INFORMATION OF THE COUNCIL FOR MINERAL
TECHNOLOGY (MINTEK) FOR THE YEAR ENDED 31 MARCH 2007.
REPORT ON THE FINANCIAL STATEMENTS
Introduction
and other explanatory notes, as set out on pages 62 to 84.
statements in accordance with SA GAAP and in the manner required by the Public Finance Management
Act, 1999 (Act No. 1 of 1999) (PFMA) [Auditor-General Audit Circular 1 of 2005 and the Companies Act of
South Africa] Mineral Technology Act, 1989 (Act No.30 of 1989). This responsibility includes:
• designing, implementing and maintaining internal control relevant to the preparation and fair
error ;
• selecting and applying appropriate accounting policies; and,
• making accounting estimates that are reasonable in the circumstances.
Responsibility of the Auditor-General
As required by section 188 of the Constitution of the Republic of South Africa, 1996 read with
section 4 of the Public Audit Act, 2004 (Act No. 25 of 2004) and section 12(2) of the Mineral
Technology Act, 1989 (Act No.30 of 1989), my responsibility is to express an opinion on these
I conducted my audit in accordance with the International Standards on Auditing and General
Notice 645,647 and 648 of 2007, issued in Government Gazette No. 29919 of May 2007 on
PFMA or unlisted entities as applicable and General Notice 646 of 2007, issued in Government
Gazette No. 29919 of May 2007 on auditing of performance information. Those standards
require that I comply with ethical requirements and plan and perform the audit to obtain
An audit involves performing procedures to obtain audit evidence about the amounts and
statements, whether due to fraud or error. In making those risk assessments, the auditor
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
An audit also includes evaluating the:
• appropriateness of accounting policies used;
• reasonableness of accounting estimates made by management; and,
annual report 2007 60
Basis of accounting
Opinion
ended, in accordance with Generally Accepted Accounting Practices (GAAP) and in the manner required by the PFMA
and Companies Act of South Africa and the Mineral Technology Act, 1989 (Act No.30 of 1989).
Emphasis of Matter
Without qualifying my audit opinion, I draw attention to the followiing matter:
contributed to these incidents.
Other Matters
Internal control
Various standard operation procedures were not complied with thereby compromising the internal control environment.
Furthermore, the following monitoring controls were not always adhered to:
• Certain incompatible duties were not always segregated.
documents were processed.
• Creditors reconciliations were not performed.
Material non-compliance with applicable legislation
• Contrary to the requirements of section 28 of the Value Added Tax Act, 1991 (Act No 89 of 1991), Value Added
Tax (VAT) returns for the periods April to October were only submitted to SARS at the end of October 2006.
Consequently fruitless and wasteful expenditure amounting to R263 019 as disclosed in note 34 of the AFS was
incurred.
• Property, plant and equipment was understated by R6 446 055 for the current year and R11 433 757 was
processed.
• Intangible assets were understated by R 4 260 735 and were not separately disclosed as required by IAS 38 (AC
129).
• Investment Property was not revalued at year-end as required in line with the accounting policy adopted by
management. As a result the balance was adjusted by R2 941 266.
• Accounts receivable were not disclosed at fair value as required by IAS 21 (AC 112) resulting in an adjustment of
R443 382.
• Deferred income was understated by R669 545.
• Provisions were overstated by R3 782 698.
• Retained earnings were understated by R11 510 529 due to the revision of useful lives of property plant, and
equipment.
• Performance guarantees of R5 332 807 were not accounted for.
annual report 200761
OTHER REPORTING RESPONSIBILITIES
Reporting on performance information
I have audited the performance information as set out on pages 14 to 16.
Responsibilities of the accounting authority
The accounting authority has additional responsibilities as required by section 55(2)(a) of the PFMA to ensure that
the public entity.
Responsibility of the Auditor-General
I conducted my engagement in accordance with section 13 of the Public Audit Act, 2004 (Act No. 25 of 2004) read
with General Notice 646 of 2007, issued in Government Gazette No.29919 of May 2007.
appropriate evidence about the performance information and related systems, processes and procedures. The
procedures selected depend on the auditor’s judgement.
reported below.
APPRECIATION
The assistance rendered by the staff of the Council for Mineral Technology during the audit is sincerely appreciated.
M.A Masemola
for Auditor-General
Johannesburg
31 August 2007
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
2007 2006 2007 2006
Notes R R R R
2007 2006 2007 2006
Notes R R R R
Non-current assetsGROUP GROUP MINTEK MINTEK
Property, plant and equipment 11.1 142,338,891 142,639,489 142,338,891 142,639,489
Intangible assets 11.2 4,260,735 – 4,260,735 –
Investment property 12 11,776,682 8,835,416 11,776,682 8,835,416
Equity accounted investments 13 – 12,285,939 – –
Investment in subsidiary 14 – – 100 100
Long-term loans and advances 15 25,143,191 1,151,611 1,877,191 1,151,611
Total non-current assets 183,519,499 164,912,455 160,253,599 152,626,616
Current assets
Inventory 16 3,279,036 2,744,373 3,279,036 2,744,373
Loans and advances to subsidiary 14 – – 7,385,486 –
Trade and other receivables 17 84,224,481 46,227,992 63,920,923 47,920,700
Short-term investments 18 89,491,480 102,830,270 89,491,480 102,830,270
Cash and cash equivalents 30,522,665 30,937,858 30,522,665 30,937,858
Total current assets 207,517,662 182,740,493 194,599,590 184,433,201
Total assets 391,037,161 347,652,948 354,853,189 337,059,817
Equity
Non-distributable reserves 62,794,971 63,046,831 62,794,971 63,046,831
Retained earnings 180,849,632 159,935,184 145,178,332 141,922,781
Total equity 243,644,603 222,982,015 207,973,303 204,969,612
Liabilities
Non-current liabilities
22 62,700,000 61,235,000 62,700,000 61,235,000
Long-term creditors 23 1,351,778 1,792,727 1,351,778 1,379,915
64,051,778 63,027,727 64,051,778 62,614,915
Current liabilities
Loans and advances to subsidiary 14 – – – 8,277,896
Trade and other payables 19 41,105,245 27,324,092 40,592,573 26,878,280
Deferred income 20 24,666,118 21,674,053 24,666,118 21,674,053
Provisions 21 17,569,417 12,645,061 17,569,417 12,645,061
Current liabilities 83,340,780 61,643,206 82,828,108 69,475,290
Total equity and liabilities 391,037,161 347,652,948 354,853,189 337,059,817
Non-current assetsGROUP GROUP MINTEK MINTEK
Property, plant and equipment 11.1 142,338,891 142,639,489 142,338,891 142,639,489
Intangible assets 11.2 4,260,735 – 4,260,735 –
Investment property 12 11,776,682 8,835,416 11,776,682 8,835,416
Equity accounted investments 13 – 12,285,939 – –
Investment in subsidiary 14 – – 100 100
Long-term loans and advances 15 25,143,191 1,151,611 1,877,191 1,151,611
Total non-current assets 183,519,499 164,912,455 160,253,599 152,626,616
Current assets
Inventory 16 3,279,036 2,744,373 3,279,036 2,744,373
Loans and advances to subsidiary 14 – – 7,385,486 –
Trade and other receivables 17 84,224,481 46,227,992 63,920,923 47,920,700
Short-term investments 18 89,491,480 102,830,270 89,491,480 102,830,270
Cash and cash equivalents 30,522,665 30,937,858 30,522,665 30,937,858
Total current assets 207,517,662 182,740,493 194,599,590 184,433,201
Total assets 391,037,161 347,652,948 354,853,189 337,059,817
Equity
Non-distributable reserves 62,794,971 63,046,831 62,794,971 63,046,831
Retained earnings 180,849,632 159,935,184 145,178,332 141,922,781
Total equity 243,644,603 222,982,015 207,973,303 204,969,612
Liabilities
Non-current liabilities
22 62,700,000 61,235,000 62,700,000 61,235,000
Long-term creditors 23 1,351,778 1,792,727 1,351,778 1,379,915
64,051,778 63,027,727 64,051,778 62,614,915
Current liabilities
Loans and advances to subsidiary 14 – – – 8,277,896
Trade and other payables 19 41,105,245 27,324,092 40,592,573 26,878,280
Deferred income 20 24,666,118 21,674,053 24,666,118 21,674,053
Provisions 21 17,569,417 12,645,061 17,569,417 12,645,061
Current liabilities 83,340,780 61,643,206 82,828,108 69,475,290
Total equity and liabilities 391,037,161 347,652,948 354,853,189 337,059,817
STATEMENTS OF FINANCIAL POSITION AT 31 MARCH 2007
PP JOURDAN V GOVENDERCEO, Mintek General Manager, Mintek Corporate ServicesRandburg, 31 August 2007
62
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
63
STATEMENTS OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2007STATEMENTS OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2007
Notes
2007
R
2006
R
2007
R
2006
R
Continuing operations GROUP GROUP MINTEK MINTEK
Revenue 2 299,145,738 256,514,904 297,453,030 257,296,154
Cost of sales 3 (269,593,895) (242,161,677) (269,590,775) (242,161,677)
29,551,843 14,353,227 27,862,255 15,134,477
Other operating income 4 10,411,752 18,162,113 10,571,654 18,224,316
828,669 (81,735) 828,669 (81,735)
Investment income 5 12,463,899 9,817,025 12,043,342 9,817,025
Finance expenses 6 (526,035) (597,395) (457,487) (502,814)
Audit fees 7 (1,518,846) (1,924,160) (1,414,526) (1,884,479)
Fees for services 8 (26,856,271) (11,999,983) (26,268,410) (11,999,983)
Depreciation 9 (14,884,848) (10,640,635) (14,884,848) (10,640,635)
Loss on disposal of property, plant and equipment (387,313) (1,131,011) (387,313) (1,131,011)
28.2 13,483,971 (653,037) – –
10 (4,889,645) (12,828,438) (4,889,645) (12,828,438)
13 9,400,750 2,645,536 – –
27,077,926 5,121,507 3,003,691 4,106,723
Taxation 26 (6,415,338) (330,241) – –
20,662,588 4,791,266 3,003,691 4,106,723
Notes
2007
R
2006
R
2007
R
2006
R
Continuing operations GROUP GROUP MINTEK MINTEK
Revenue 2 299,145,738 256,514,904 297,453,030 257,296,154
Cost of sales 3 (269,593,895) (242,161,677) (269,590,775) (242,161,677)
29,551,843 14,353,227 27,862,255 15,134,477
Other operating income 4 10,411,752 18,162,113 10,571,654 18,224,316
828,669 (81,735) 828,669 (81,735)
Investment income 5 12,463,899 9,817,025 12,043,342 9,817,025
Finance expenses 6 (526,035) (597,395) (457,487) (502,814)
Audit fees 7 (1,518,846) (1,924,160) (1,414,526) (1,884,479)
Fees for services 8 (26,856,271) (11,999,983) (26,268,410) (11,999,983)
Depreciation 9 (14,884,848) (10,640,635) (14,884,848) (10,640,635)
Loss on disposal of property, plant and equipment (387,313) (1,131,011) (387,313) (1,131,011)
28.2 13,483,971 (653,037) – –
10 (4,889,645) (12,828,438) (4,889,645) (12,828,438)
13 9,400,750 2,645,536 – –
27,077,926 5,121,507 3,003,691 4,106,723
Taxation 26 (6,415,338) (330,241) – –
20,662,588 4,791,266 3,003,691 4,106,723
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
CASH FLOW STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
GROUP MINTEK
2007 2006 2007 2006
Notes R R R R
Cash receipts from customers 178,018,488 180,821,671 178,018,488 180,638,217
Parliamentary grant received 118,664,000 108,880,000 118,664,000 108,880,000
Cash paid to suppliers and employees (294,510,679) (276,272,026) (282,646,376) (275,412,646)
Cash generated from operations 28 2,171,809 13,429,645 14,036,112 14,105,571
Payment of taxation 26 (3,689,088) – – –
Investment income 12,826,322 9,817,025 12,405,765 9,817,025
Finance costs (526,035) (337,424) (457,487) (242,843)
Long term creditor payments (985,622) (595,696) (523,622) (133,697)
Provisions utilised 21 (894,508) (5,783,361) (894,508) (5,783,361)
8,902,878 16,530,189 24,566,260 17,762,695
Additions to property, plant and equipment (19,274,096) (19,823,232) (19,274,096) (19,823,232)
Decrease/(increase) in investment deposits 13,338,790 (1,150,757) 13,338,790 (1,150,757)
(Cash advanced to)/receipts from subsidiary – – (15,663,382) 16,767,494
41,880 3,616 41,880 3,616
Proceeds from disposal of associate 28.2 – 18,000,000 – –
Post-retirement health care payments 22 (3,424,645) (3,022,438) (3,424,645) (3,022,438)
(9,318,071) (5,992,811) (24,981,453) (7,225,317)
Net (decrease)/ increase in cash
and cash equivalents 28.1 (415,193) 10,537,378 (415,193) 10,537,378
Cash and cash equivalents at beginning of year 30,937,858 20,400,480 30,937,858 20,400,480
Cash and cash equivalents at end of year 30,522,665 30,937,858 30,522,665 30,937,858
64
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
65
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 MARCH 2007
Non-
Distributable
Note Retained Earnings Reserve Total
R R R
GROUP
Balance at 31 March 2005 as previously reported 150,716,855 – 150,716,855
Restatements 4,427,063 – 4,427,063
Useful life adjustment 3,902,825 _ 3,902,825
Capitalisation of an asset received by way of donation at book value 524,238 _ 524,238
Restated Balance as at 31 March 2006 155,143,918 _ 155,143,918
Prior Year adjustments
5,072,300 – 5,072,300
Fair value adjustment (259,971) – (259,971)
Depreciation (21,063) – (21,063)
– 4,791,266
Revaluation of property 11 – 63,046,831 63,046,831
Restated Balance as at 31 March 2006 159,935,184 63,046,831 222,982,015
Land and Buildings 251,860 (251,860) –
20,662,588
Balance as at 31 March 2007 180,849,632 62,794,971 243,644,603
MINTEK
Balance at 31 March 2005 as previously reported 133,388,995 – 133,388,995
Restatements 4,427,063 – 4,427,063
Useful life adjustment 3,902,825 _ 3,902,825
Capitalisation of an asset received by way of donation at book value 524,238 _ 524,238
Restated Balance at 31 March 2005 137,816,058 – 137,816,058
Prior year adjustments
4,387,757
Fair value adjustment on trade debtors (259,971) – (259,971)
Depreciation (21,063) – (21,063)
– 4,106,723
Revaluation of property 11 – 63,046,831 63,046,831
Restated Balance at 31 March 2006 141,922,781 63,046,831 204,969,612
Land and Buildings 251,860 (251,860) –
3,003,691
Balance as at 31 March 2007 145,178,332 62,794,971 207,973,303
annual report 2007
the following principal accounting policies, which conform to South African Statements of General Accepted Accounting Practice, and in the manner
Rands (R). The accounting policies are consistent with those applied in the previous year, except for certain restatements and changes in accounting
policies.
1.1 Basis of consolidation
respectively.
1.2 Foreign currency transactions and balances
Foreign currency transactions are recorded at the exchange rate ruling at the date of the transaction.
At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are translated into South African Rand at exchange
rates ruling at the balance sheet date. Exchange differences arising on the settlement of transactions at rates different from those at the date of
the transaction and unrealised foreign
Exchange differences on unsettled foreign currency monetary assets and liabilities, are recognised in the income statement and included in income
1.3 Investment in subsidiary
Foreign currency transactions are recorded at the exchange rate ruling at the date of the transaction.
At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are translated into South African Rand at exchange
rates ruling at the balance sheet date. Exchange differences arising on the settlement of transactions at rates different from those at the date of the
transaction and unrealised foreign exchange differences on unsettled foreign currency monetary assets and liabilities are recognised in the income
1.4 Investment in associates
statements by using the equity method of accounting, from the effective dates of their acquisition until the effective dates of their disposal.
Investments in associates are carried in the balance sheet at cost as adjusted by post-acquisition changes in the group’s share of the net assets
of the associate, less any impairment in the value of individual investments. Losses of the associate in excess of the group’s investments in those
the associate at the date of acquisition is recognised according to the group’s accounting policies on goodwill. Where a group enterprise transacts
unrealised losses provide evidence of an impairment of the asset transferred.
1.5 Goodwill
entity at the date of acquisition. Goodwill is capitalised as an asset reviewed annually for impairment. At each balance sheet date goodwill is reviewed
carrying amount of goodwill is fully recoverable. An impairment charge is recognised to the extent that the carrying amount exceeds the recoverable
amount.
1.6 Intangible assets
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
66
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
1.7 Research and development costs
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally generated intangible asset arising from the Group’s research and development is recognised only if all of the following conditions are
met:
• The development cost of the asset can be measured reliably;
• It is technically feasible to complete the intangible asset so that it will be available for use or sale;
• The ability to use or sell the intangible asset; and,
• It is the intention to complete the intangible asset so that it will be available for use or sale.
Where no internally generated intangible asset can be recognised, development expenditure is recognised as an expense in the period in which it is
incurred. Internally generated intangible assets are amortised on a straight-line basis over their useful lives.
1.8 Impairment
of, then the recoverable amount is estimated and an impairment loss is recognised. Where it is not possible to estimate the recoverable amount for
an individual asset, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
whether there is any indication that the assets may be impaired.
The recoverable amount is the higher of fair value less costs to sell and value in use. Value in use represents the present value of the future cash
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of
its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had
no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised as income
immediately, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation
increase. Impairment losses for goodwill are not reversed in subsequent periods.
1.9 Leases
of the leases. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease.
Capitalised leased assets are depreciated to their estimated residual values over their estimated useful lives. Finance lease payments are allocated
the liability to the lessor.
line basis over the term of the lease.
1.10 Property, plant and equipment
Properties comprise general purpose land and buildings held by the Group for its own use and investment property and buildings for purposes
of generating rental income or held for capital appreciation. Properties are initially valued at historical cost and subsequently revalued every two
appropriate.
The cost of property, plant and equipment includes all directly attributable expenditure incurred in the acquisition, establishment and installation of
67
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
such assets so as to bring them to the location and condition necessary for it to be capable of operating in the manner intended by management.
Interest costs are not capitalised.
Depreciation is calculated so as to write off the cost of property, plant and equipment on a straight-line basis, over the estimated useful lives to the
estimated residual value. Useful lives and residual values are reviewed on an annual basis. Residual values are measured as the estimated amount
currently receivable for an asset if the asset were already of the age and condition expected at the end of its useful life.
expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease. All assets under construction are carried
at cost and depreciation only commences once the asset is commissioned and ready for its intended use.
The gains and losses arising on the disposal or retirement of an item of property, plant, equipment and vehicles is determined as the difference
1.11 Investment property
professional valuer based on market evidence of the most recent prices achieved in arms length transactions of similar properties in the same
area.
1.13 Post-retirement health care costs
The Group uses the project unit credit actuarial method to determine the present value of its past service cost.
Actuarial gains and losses are recognised in full in the reporting period it relates to and is the excess over the greater of the present value of the
past service obligation at the end of the reporting period before deducting the present value of assumed assets at the same date. Valuations of these
obligations are carried out annually by independent actuaries using appropriate mortality tables, long-term estimates of increases in medical costs
and appropriate discount rates. General increases to medical aid contributions were estimated taking into account the projected future changes in
an increased estimated liability.
1.14 Inventories
Inventories are valued stated at the lower of cost or net realisable value. Costs comprise direct materials and, where applicable, direct labour costs
and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the weighted
average method. Net realisable value represents the estimated selling price in the ordinary course of business less any costs of completion and costs
to be incurred in marketing, selling and distribution.
1.15 Provisions
The Group recognises its obligation for guaranteeing its product and services for periods as stipulated in its contracts with the Group’s customers.
The Group is exposed to certain environmental liabilities relating to its operations. Provision for the cost of environmental and other remedial work
such as reclamation costs, close down and restoration costs and pollution control is made when such expenditure is probable and the cost can be
reasonably estimated.
1.16 Financial instruments
Financial instruments recognised on the balance sheet include derivative instruments, investments, investments in debt securities, accounts
receivable, cash and cash equivalents, accounts payable and interest bearing debt. Financial instruments are initially measured at cost including
with in the subsequent notes. When the Group can legally do so and the Group intends to settle on a net basis, or simultaneously, related positive
68
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
1.16.1 Derivative instruments
1.16.2 Investments
Investments consist of long-term money market instruments initially recorded at cost, which is the fair value of the cash placed with the institution.
Interest is accrued using the effective interest rate method and included in the income statement on an accrual basis.
1.16.3 Trade and other receivables
Trade and other receivables are stated at cost less an allowance for doubtful debts. The allowance raised is the amount needed to reduce the
1.16.4 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits and investment in short-term money market instruments. The carrying amount
of cash is measured at its fair value.
1.16.5 Financial liabilities
Financial liabilities other than derivative instruments are amortised at their original debt value less principal payments and amortisation. Derivatives
are subsequently measured at fair value and gains and losses are included in the income statement for the period.
then the recoverable amount is estimated and an impairment loss is recognised in accordance with AC133. Financial Instruments and Recognition.
1.17 Government grants
recognised as income in the period in which it is received. These funds are utilised in accordance with a shareholders’ compact that is entered into
1.18 Revenue recognition
Revenue is recognised when the sale transactions giving rise to such revenue is concluded and risks and rewards of ownership and title pass
is recognised based on the percentage of completion determined by reference to the physical amount of work performed in relation to the total
project.
Advance income arising as result of contracts undertaken in terms of commercial work in respect of invoices raised and paid for in advance but for
which no substantial work has been made to justify the recognition of any revenue, is deferred until the income is earned based on the percentage
work completed.
Revenue arising from licence fees is recognised on an accrual basis in accordance with the terms of the applicable contracts. Revenue from royalties
is accrued-based on the nature of the applicable contracts.
Interest income is accrued on a time proportion basis recognisng the effective yield on the underlying assets.
Dividend income from investments is recognised when the right to receive payment has been established.
substance of the relevant agreements.
1.19 Contracts in progress
Where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract
activity at the balance sheet date. The stage of completion is determined by the proportion of contract costs incurred in relation to the estimated total
contract costs. Variations in contract work, claims and incentive payments are included to the extent that they have been agreed to the customer.
69
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
Where the outcome of the contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred and probably
recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When it is probable that total contract costs will
exceed total contract revenue, the expected loss is immediately recognised as an expense to the income statement.
deductible in other years and it further excludes items that are not taxable or tax deductible. The company’s liability for current tax is calculated using
tax rates that have been enacted or substantively enacted by the balance sheet date.
available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary differences
arise from the initial recognition (other than a business combination) of other assets and liabilities in a transaction that affects neither the taxable
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interest in joint
ventures, except where the company is not able to control the reversal of the temporary difference and it is probable that the temporary difference
will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised. Deferred tax is
with in equity.
Deferred tax assets and liabilities are off-set when there is a legally enforceable right to set off current tax assets against current tax liabilities and
when they relate to income tax levied by the same taxation authority and the company intends to settle its current tax assets and liabilities on a net
basis.
Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement of any applicable legislation,
including:
- The PFMA; or,
- Any provincial legislation providing for procurement procedures in that provincial government.
Fruitless and wasteful expenditure means expenditure that was made in vain and could have been avoided had reasonable care been exercised. All
irregular, fruitless and wasteful expenditure is charged against income in the period in which it is incurred.
1.22 Financing costs
Financing costs are recognised in the income statement in the period in which they are incurred.
this regard.
70
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
GROUP MINTEK
2007 2006 2007 2006
R R R R
2. REVENUE
Government grants
State Grant 104,120,123 95,508,772 104,120,123 95,508,772
Less:
Grants received for projects started before year end but not completed – – – –
Add:
Grant received in prior year for projects completed this year – – – –
– – – –
Commercial income
Contract research 147,868,051 109,099,645 147,868,051 109,880,895
Manufactured products 6,281,941 11,659,357 6,281,941 11,659,357
Service income 27,627,810 32,331,773 27,627,810 32,331,773
Material sales 8,950,938 7,130,364 8,950,938 7,130,364
Royalty income 4,296,875 784,993 2,604,167 784,993
299,145,738 256,514,904 297,453,030 257,296,154
3. COST OF SALES
Staff costs 180,063,646 156,364,750 180,063,646 156,364,750
Consumables 35,276,814 33,921,978 35,276,814 33,921,978
General running expenses 44,177,053 45,277,850 44,173,933 45,277,850
Theft and fraud costs 1,800,579 – 1,800,579 –
Repairs and maintenance 8,273,802 5,847,596 8,273,802 5,847,596
Bad debts written off 6,066,250 – 6,066,250 –
Provision for bad debts (6,064,249) 749.503 (6,064,249) 749,503
269,593,895 242,161,677 269,590,775 242,161,677
4. OTHER OPERATING INCOME
Operating Income
Library services 141,114 137,913 141,114 137,913
Breach of contract 58,772 351,723 58,772 351,723
Bursary learnerships 1,526,281 3,895,852 1,526,281 3,895,852
Commission 467 26,651 467 26,651
Conferences 3,500 1,491,139 3,500 1,491,139
Mintek cafeteria 628,580 712,467 628,580 712,467
Sundry income 1,441,667 209,063 1,441,557 209,063
Bad debts recovered 6,000 4,168,421 6,000 4,168,421
Refund from Skills Development levies 162,984 – 162,984 -–
Other 80,269 137,889 240,171 200,092
4,049,634 11,131,118 4,209,536 11,193,321
Rental income - properties 1,959,640 1,604,068 1,959,640 1,604,068
Investment Property
Rental income 1,461,212 1,528,731 1,461,212 1,528,731
Fair value adjustment 2,941,266 3,898,196 2,941,266 3,898,196
4,402,478 5,426,927 4,402,478 5,426,927
10,411,752 18,162,113 10,571,654 18,224,316
5. INVESTMENT INCOME
Financial income
9,684,028 7,476,604 9,684,028 7,476,604
Loans to subsidiary – – 1,329,589 813,178
Loans to associates 1,329,589 813,178 – –
Interest earned: bank balances 333,281 822,553 333,281 822,553
Interest earned: staff debtors 200,898 704,690 200,898 704,690
Fair value interest on debtors 495,546 – 495,546 –
Long-term debtors 420,557 – – –
12,463,899 9,817,025 12,043,342 9,817,025
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annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2007
6. FINANCE EXPENSES
Interest paid guaranteed liability 68,548 94,581 – –
Interest other 148 129,279 148 129,279
South African Revenue Services - interest and penalties 263,019 – 263,019 –
Fair value interest on debtors – 259,971 – 259,971
194,320 113,564 194,320 113,564
526,035 597,395 457,487 502,814
7. AUDIT FEES
Audit fees 1,375,658 1,083,000 1,325,658 1,050,000
Underprovided prior year 143,188 841,160 88,868 834,479
1,518,846 1,924,160 1,414,526 1,884,479
8. FEES FOR SERVICES
Consultants 25,141,713 11,287,396 24,553,852 11,287,396
Legal 1,714,558 712,587 1,714,558 712,587
26,856,271 11,999,983 26,268,410 11,999,983
9. DEPRECIATION
Buildings 577,199 325,339 577,199 325,339
Manufactured items 1,776,586 – 1,776,586 –
Plant 3,018,379 2,380,174 3,018,379 2,370,174
Equipment 8,426,722 7,409,759 8,426,722 7,409,759
Computer software 433,146 – 433,146 –
Vehicles 167,604 225,117 167,604 225,117
Low value assets 6,163 – 6,163 –
Leased assets 332,636 198,801 332,636 198,801
146,413 101,445 146,413 101,445
14,884,848 10,640,635 14,884,848 10,640,635
10. POST-RETIREMENT BENEFIT OBLIGATIONS
Actuarial loss - post-retirement medical obligation 3,645,790 8,729,894 3,645,790 8,729,894
Interest on post-retirement medical obligation 3,278,855 3,692,544 3,278,855 3,692,544
Actuarial (loss)/gain pension fund (2,035,000) 406,000 (2,035,000) 406,000
4,889,645 12,828,438 4,889,645 12,828,438
Number of employees 498 524 498 524
GROUP MINTEK
2007 2006 2007 2006
R R R R
72
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
GROUP MINTEK
Opening Closing Opening Closing
Balance Additions Disposals Balance Balance Additions Disposals Balance
2007 R R R R R R R R
11.1 PROPERTY, PLANT
AND EQUIPMENT
Cost
Land 55,408,800 – – 55,408,800 55,408,800 – – 55,408,800
Buildings 28,859,940 66,167 – 28,926,107 28,859,940 66,167 – 28,926,107
Plant 32,578,228 2,107,171 (114,795) 34,570,604 32,578,228 2,107,171 (114,795) 34,570,604
Equipment 91,422,171 11,074,533 (9,170,246) 93,326,458 91,422,171 11,074,533 (9,170,246) 93,326,458
Vehicles 990,581 – (1) 990,580 990,581 – (1) 990,580
Finance-leased assets 1,995,394 317,250 – 2,312,644 1,995,394 317,250 – 2,312,644
Capital work in progress 1,462,886 862,239 – 2,325,125 1,462,886 862,239 – 2,325,125
214,670,339 14,580,215 (9,485,837) 219,764,717 214,670,339 14,580,215 (9,485,837) 219,764,717
Accumulated Opening Depreciation Disposals Closing Opening Depreciation Disposals Closing
Depreciation R R R R R R R R
Land – – – – – – – –
Buildings 9,760,176 577,199 – 10,337,375 9,760,176 577,199 – 10,337,375
Plant 12,627,878 3,018,379 (106,126) 15,540,131 12,627,878 3,018,379 (106,126) 15,540,131
Equipment 48,519,881 10,209,470 (8,773,619) 49,955,732 48,519,881 10,209,470 (8,773,619) 49,955,732
Vehicles 592,516 167,604 (1) 760,119 592,516 167,604 (1) 760,119
Finance-leased assets 198,801 332,636 – 531,437 198,801 332,636 – 531,437
Capital work in progress – – – – – – – –
72,030,851 14,451,701 (9,056,727) 77,425,826 72,030,851 14,451,701 (9,056,727) 77,425,826
GROUP MINTEK
2007 2007
Net book value R R
Land 55,408,800 55,408,800
Buildings 18,588,732 18,588,732
Plant 19,030,473 19,030,473
Equipment 43,370,726 43,370,726
Vehicles 230,461 230,461
Finance-leased assets 1,781,207 1,781,207
Capital work in progress 2,325,125 2,325,125
142,338,891 142,338,891
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
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annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
GROUP MINTEK
Opening Closing Opening Closing
Balance Additions Revaluation Disposals Balance Balance Additions Revaluation Disposals Balance
2006 R R R R R R R R R R
11.1 PROPERTY, PLANT
AND EQUIPMENT
Cost
Land 4,927,776 – 50,481,024 – 55,408,800 4,927,776 – 50,481,024 – 55,408,800
Buildings 16,266,961 27,172 12,565,807 – 28,859,940 16,266,961 27,172 12,565,807 – 28,859,940
Plant 32,795,382 413,341 – (630,495) 32,578,228 32,795,382 413,341 – (630,495) 32,578,228
Equipment 86,949,799 17,631,643 – (13,159,271) 91,422,171 86,949,799 17,631,643 – (13,159,271) 91,422,171
Vehicles 2,322,637 – – (1,332,056) 990,581 2,322,637 – – (1,332,056) 990,581
Finance-leased assets – 1,995,394 – – 1,995,394 – 1,995,394 – – 1,995,394
Capital work in progress 24,344 1,438,542 – – 1,462,886 24,344 1,438,542 – – 1,462,886
145,201,776 21,818,626 63,046,831 (15,396,894) 214,670,339 145,201,776 21,818,626 63,046,831 (15,396,894) 214,670,339
Accumulated Opening Depreciation Transfers Disposals Closing Opening Depreciation Transfers Disposals Closing
Depreciation R R R R R R R R R R
Land – – – – – – – – – –
Buildings 9,434,837 325,339 – – 9,760,176 9,434,837 325,339 – – 9,760,176
Plant 10,705,079 2,380,174 – (457,375) 12,627,878 10,705,079 2,380,174 – (457,375) 12,627,878
Equipment 53,101,894 7,409,759 180,511 (12,172,283) 48,519,881 53,101,894 7,409,759 180,511 (12,172,283) 48,519,881
Vehicles 1,470,673 225,117 – (1,103,274) 592,516 1,470,673 225,117 – (1,103,274) 592,516
Finance-leased assets – 198,801 – – 198,801 – 198,801 – – 198,801
Capital work in progress – – – – – – – – – –
75,211,974 10,640,635 180,511 (14,002,268) 72,030,851 75,211,974 10,640,635 180,511 (14,002,268) 72,030,851
GROUP MINTEK
2006 2006
Net book value R R
Land 55,408,800 55,408,800
Buildings 19,099,764 19,099,764
Plant 19,950,350 19,950,350
Equipment 42,902,290 42,902,290
Vehicles 398,065 398,065
Finance-leased assets 1,796,593 1,796,593
Capital work in progress 1,462,886 1,462,886
142,639,489 142,639,489
Freehold land and buildings comprise: GROUP AND MINTEK
2007 2006
R R
Acquired in the prior year - Land and Buildings 11,759,900 11,759,900
Land revalued 50,481,024 50,481,024
Buildings 12,565,807 12,565,807
Revaluation 74,806,731 74,806,731
Directors’ Valuation 74,806,731 74,806,731
Portion 175 and portion 226 of the farm Klipfontein, 203-IQ Johannesburg, with buildings thereon.
year ending 31 March 2006. The latest valuation report was issued on 7 February 2006.
The estimated useful life of depreciable property, plant, equipment and vehicles are as follows:
Buildings and investment property 50 years
Plant 10 years
Equipment 5 -10 years
Vehicles 5 years
74
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
GROUP and MINTEK 2007 GROUP and MINTEK 2006
Opening Closing Opening Closing
Balance Additions Revaluation Disposals Balance Balance Reversal Revaluation Disposals Balance
R R R R R R R R R R
11.2 INTANGIBLE
ASSETS
Cost
Computer software – 4,693,881 – – 4,693,881 – – – – –
– 4,693,881 – – 4,693,881 – – – – –
Current Year Current Year
Accumulated Opening Depreciation Revaluation Disposals Closing Opening Depreciation Revaluation Disposals Closing
depreciation R R R R R R R R R R
Computer software – 433,146 – – 433,146 – – – – –
– 433,146 – – 433,146 – – – – –
Value as at 31 March 2007 4,260,735 Value as at 31 March 2006 –
The estimated useful lives of depreciable intangible assets are as follows:
Computer software 3 years
GROUP and MINTEK 2007 GROUP and MINTEK 2006
Opening Closing Opening Closing
Balance Reversal Revaluation Disposals Balance Balance Reversal Revaluation Disposals Balance
R R R R R R R R R R
12. INVESTMENT PROPERTY
Buildings - Billiton 8,835,416 – 2,941,266 – 11,776,682 7,190,526 (2,253,306) 3,898,196 – 8,835,416
8,835,416 – 2,941,266 – 11,776,682 7,190,526 (2,253,306) 3,898,196 – 8,835,416
FairValue as at 31 March 2007 11,776,682 Fair Value as at 31 March 2006 8,835,416
Portion of portion 175 of the farm Klipfontein, 203-IQ Johannesburg, with buildings thereon. The value of the building complex was estimated at R11 776 681 by
Lyons Financial Solutions (Proprietary) Limited, an independent valuer during the year ended 31 March 2007. The latest valuation report was issued on
18 June 2007.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
75
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
13. EQUITY ACCOUNTED INVESTMENTS
Details of associates are as follows:
Portion
Place of Portion of of voting Financial 2007 2006
Name of associate incorporation ownership power held year end R R
– 12,285,939
– 12,285,939
The Group disposed of its shareholding
in Mogale Alloys (Pty) Limited for an amount
of R33 000 000 effective 1 December 2006.
GROUP
2007 2006
R R
Cost of unlisted investments
Mogale Alloys (Proprietary) Limited – 250
Share of acquisition reserves: Mogale Alloys (Proprietary) Limited – 5,715,831
Fair value of net assets acquired – –
Interest bearing loans
Mogale Alloys (Proprietary) Limited – 6,569,858
– 12,285,939
Directors’ valuation – 12,285,939
Reconciliation between opening and closing balance:
Carrying value at the beginning of year 12,285,939 27,945,059
Loans to associates 14,039,561 678,622
Disposal of associate (33,000,00) (18,653,037)
9,400,750 2,645,536
Taxation (2,726,250) (330,241)
Carrying value at the closing of year – 12,285,939
Long-term assets – 108,138,022
Investment – –
Current assets – 78,390,473
Total Assets – 186,528,495
Current liabilities – 67,622,011
Long-term liabilities – 96,042,164
Total liabilities – 163,664,175
Income – 247,516,635
– 5,216,118
– 3,898,048
14. INVESTMENT IN SUBSIDIARY
Details of subsidiary are as follows:
Place of Portion of Financial Shares at cost Shares at cost Indebtness Indebtness
Name of subsidiary incorporation ownership year end 31 March 2007 31 March 2006 31 March 2007 31 March 2006
R R R R
Mindev (Proprietary) Limited 100 100 7,385,486 (8,277,896)
100 100 7,385,486 (8,277,896)
way of direct investments in equity and through joint ventures.
DISCONTINUED OPERATIONS: TOLLSORT (PROPRIETARY) LIMITED
Tollsort (Proprietary) Limited ceased its operations at the end of September 2004. Mindev (Proprietary) Limited has included the operating losses from Tollsort (Proprietary)
Limited. The total amount outstanding as at 31 March 2007 is R 1 726 692 and the amount recognised by Mindev (Proprietary) Limited as R432 173 at 31 March 2007.
76
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
GROUP MINTEK 2007 2006 2007 2006 R R R R
15. LONG-TERM LOANS AND ADVANCES
LONG-TERM DEBTOR
PGR 17 investments (Proprietary) Limited 33,000,000 – – –
Less:
Short-term portion (Note 17) (16,500 000) – – –
16,500,000 – – –
LONG-TERM DEBTOR
Mogale Alloys (Proprietary) Limited 10,569,558 – – –
Less:
Short-term portion (Note 17) (3,803,558) – – –
6,766,000 – – –
STAFF LOANS
Advances to staff 3,070,751 1,979,876 3,070,751 1,979,876
Less:
Short-term portion of staff loans (Note 17) (1,193 560) (828,265) (1,193,560) (828,265)
1,877,191 1,151,611 1,877,191 1,151,611
25,143,191 1,151,611 1,877,191 1,151,611
Staff loans are granted to qualifying staff in terms of schemes approved by the Board of Mintek.
GROUP MINTEK 2007 2006 2007 2006 R R R R
16. INVENTORY
Consumables 1,626,776 1,625,333 1,626,776 1,625,333
Finished goods – 32,052 – 32,052
Contracts in progress 1,949,902 1,086,988 1,949,902 1,086,988
Inventories written off during the year (297,642) – (297,642) –
3,279,036 2,744,373 3,279,036 2,744,373
17. TRADE AND OTHER RECEIVABLES
Trade debtors 61,872,651 51,073,604 61,872,651 52,766,312
Short-term portion of long-term debtors (Note 15) 20,303,558 – – –
Short-term portion of staff loans (Note 15) 1,193,560 828,265 1,193,560 828,265
Other receivables 2,810,839 2,346,499 2,810,839 2,346,499
Less:
Provision for doubtful debts (1,956,127) (8,020,376) (1,956 127) (8,020,376)
84,224,481 46,227,992 63,920,923 47,920,700
18. SHORT-TERM INVESTMENTS
Short-term investments 89,491,480 102,830,270 89,491,480 102,830,270
GROUP MINTEK 2007 2006 2007 2006 R R R R19. TRADE AND OTHER PAYABLES
Trade creditors 32,283,410 10,782,867 32,283,410 10,782,867
Other payables 2,963,834 2,528,345 2,883,334 2,495,345
Current portion of lease creditor 283,126 221,785 283,126 221,785
Current portion of guaranteed liability 432,172 412,812 – –
SARS (VAT) 745,574 6,578,183 745,574 6,578,183
Other creditors and accruals 4,397,129 6,800,100 4,397,129 6,800,100
41,105,245 27,324,092 40,592,573 26,878,280
20. DEFERRED INCOME
Deferred income 20,463,394 18,917,629 20,463,394 18,917,629
Advanced client billing 4,202,724 2,756,424 4,202,724 2,756,424
24,666,118 21,674,053 24,666,118 21,674,053
Deferred income arises as a result of contracts undertaken in terms of the National Research Fund and Innovation Fund administered by the Department of
Science and Technology in respects of amounts received in cash not yet accounted for as revenue.
Advance client billing income arises as a result of contracts undertaken in terms of commercial work where invoices are raised based on work that has been done.
The quantum of cost incurred provides the basis for the level of revenue recognised in the period.
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annual report 2007
21. PROVISIONS Opening Additional Utilised and Closing
Balance provisions reversed Balance
R R R R
GROUP AND MINTEK – 31 March 2007
Provision for leave pay 11,750,553 2,962 – 11,753,515
Product warranties 894,508 5,815,902 (894,508) 5,815,902
12,645,061 5,818,864 (894,508) 17,569,417
GROUP AND MINTEK – 31 March 2006
Provision for leave pay 12,873,411 – (1,122,858) 11,750,553
Provision for bonus 4,000,000 – (4,000,000) –
Product warranties 1,555,011 – (660,503) 894,508
18,428,422 – (5,783,361) 12,645,061
The provision for leave pay relates to vested leave pay to which employees become entitled upon leaving the employment of the entity. The provision
arises as employees render a service that increases their entitlement to future compensated leave. The provision is utilised when employees who are
entitled to leave pay, leave the employment of the entity or when the accrued leave due to an employee, is utilised.
The bonus accrual consists of a portion of the employees remuneration cost elected by the employee for payment annually in November each year.
The provision for product warranties is the entity recognising its probable liability for meeting its obligations in terms of products and services as
stipulated in its contracts with its customers.
GROUP MINTEK
2007 2006 2007 2006
R R R R
22. LONG-TERM RETIREMENT BENEFIT
Post-retirement medical aid 61,800,000 58,300,000 61,800,000 58,300,000
900,000 2,935,000 900,000 2,935,000
62,700,000 61,235,000 62,700,000 61,235,000
The amounts included in the balance sheet arising from Mintek’s
Present value of obligations as at 31 March 61,800,000 58,300,000 61,800,000 58,300,000
Fair value of plan assets as at 31 March – – – –
61,800,000 58,300,000 61,800,000 58,300,000
GROUP MINTEK
2007 2006 2007 2006
R R R R
Movement in the net-liability recognised in the balance sheet
58,300,000 48,900,000 58,300,000 48,900,000
Interest cost 3,278,855 3,692,544 3,278,855 3,692,544
Contributions paid to service providers (3,424,645) (3,022,438) (3,424,645) (3,022,438)
Net-actuarial loss recognised 3,645,790 8,729,894 3,645,790 8,729,894
61,800,000 58,300,000 61,800,000 58,300,000
Key assumptions
Expected long-term rate of return on plan assets 8.0% 8.0%
Expected increase in health care costs 6.5% 6.5%
Amounts recognised in income in respect of the scheme are as follows:
Current cost 6,924,645 12,422,438 6,924,645 12,422,438
Contributions paid 3,424,645 3,022,438 3,424,645 3,022,438
Expected average remaining life of employees (years) 16 16 16 16
Medical cover is provided through a number of different schemes.
Post-retirement medical cover in respect of qualifying employees is recognised as an expense over the expected remaining service lives of the relevant
These liabilities have been provided in full, calculated on an actuarial basis. The liabilities are unfunded. Periodic valuation of this obligation is carried
out by independent actuaries every two years, the latest one being 31 March 2007.
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
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annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
GROUP MINTEK
2007 2006 2007 2006
R R R R
22. ( )
Movement in the net-liability recognised in the balance sheet
Employer liability 2,935,000 2,529,000 2,935,000 2,529,000
Movement in guaranteed liability – 400,000 – 400,000
Actuarial (gain)/loss (2,035,000) 6,000 (2,035,000) 6,000
Net-employer liability at end of year 900,000 2,935,000 900,000 2,935,000
Current cost (2,035,000) 406,000 (2,035,000) 406,000
At inception of the Fund a retirement reserve was allocated to certain members which will become payable at the time of the members death or with-
drawal. The employer also funds a minimum guaranteed pension for members who entered the fund as at 1January 1995.
Employer contributions are charged against income in the period in which they are incurred. Contributions so charged were as follows:
GROUP MINTEK
2007 2006 2007 2006
R R R R
MRF and MERF 8,267,727 8,814,634 8,267,727 8,814,634
Employee contributions to the funds were as follows:
MRF and MERF 4,400,771 4,863,246 4,400,771 4,863,246
2007 2006 2007 2006
Current service costs 6,924,645 12,422,438 12,668,498 13,677,880
Interest obligation 3,278,855 3,692,544 – 400,000
Actuarial loss/(gain) 3,645,790 8,729,894 (2,035,000) 6,000
Total included in employee costs 13,849,290 24 844,876 10,633,498 14,073,880
23. LONG-TERM CREDITORS
Finance lease obligation
Amoun 1,634,904 1,601,700 1,634,904 1,601,700
(283,126) (221,785) (283,126) (221,785)
1,351,778 1,379,915 1,315,778 1,379,915
Guarantee liability
Long-term liability 432,171 825,624 – –
Less: Current portion of long term liability (432,171) (412,812) – –
– 412,812 – –
1,351,778 1,792,727 1,351,778 1,379,915
23.1 FINANCE LEASE OBLIGATION
Capitalised leased assets
Payable within one year 283,126 221,785 283,126 221,785
Payable within 2-5 years 1,351,778 1,379,915 1,351,778 1,379,915
Net-lease liability 1,634,904 1,601,700 1,634,904 1,601,700
As of 31 March 2007 the aggregate amounts of minimum lease payments and the related imputed interest under capitalised lease contracts payable
Minimum Interest Present
lease value of minimum
payments lease payments
Payable in the years ended 31 March:
2008 464,078 180,952 283,126
2009 464,078 145,045 319,033
2010 444,858 103,003 341,855
2011 667,787 35,468 632,319
2012 59,157 586 58,571
2,099,958 465,054 1,634,904
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annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
GROUP MINTEK
2007 2006 2007 2006
R R R R
23.2 GUARANTEED LIABILITY
Associate company liability 432,173 825,624 – –
Less: Current portion included in accounts payable (432,173) (412,812) – –
– 412,812 – –
The Group has assumed its share of the guaranteed liability of an associate company which will be repaid by 15 March 2008.
GROUP MINTEK
2007 2006 2007 2006
R R R R
24. FUTURE LEASE LIABILITY
Future operating lease charges for vehicles
- Payable within one year 195,353 362,672 195,353 362,672
195,353 544,008 195,353 544,008
- Payable within one year 102,370 – 102,370 –
294,237 – 294,237 –
396,607 – 396,607 –
25. CONTINGENT LIABILITIES
Legal liabilities
Mintek has various legal claims relating to disputed performance in sales and supply contracts. The amounts of the disputes are not expected to
exceed R 38 100. Mintek also has disputed employment termination contracts with former employees, the aggregate is not expected to exceed
R 233 867.
Guarantees
A cession in favour of ABSA for R 5 000 000 to meet requirements for credit card and other banking facilities has been registered.
GROUP MINTEK
2007 2006 2007 2006
R R R R
26. TAXATION
Taxation on entity share in associate post-acquisition reserves 2,726,250 330,241 – –
Capital gains taxation on disposal of shares in associate 3,689,088 – – –
6,415,338 330,241 – –
No deferred taxation is raised on the assessed losses of Mindev (Proprietary) Limited due to the uncertainty regarding taxable income to utilise the
assets in the foreseeable future.
No provision for income tax was made as Mintek is exempted in terms of section 10(1)(CA)(i) of the Income Tax Act, No. 58 of 1962.
Tax provision liabilities are with respect to Mindev and its associated companies and are payable through those entities.
GROUP MINTEK
2007 2006 2007 2006
R R R R
27. COMMITMENTS
Contracted for:
Capital expenditure 1,640,173 338,276 1,640,173 338,276
Authorised and not contracted for – – – –
1,640,173 338,276 1,640,173 338,276
Internal funds will be provided to meet the expenditure in respect of these commitments, which have been approved and contracted for.
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annual report 2007
28. CASH GENERATED FROM OPERATIONS
Notes
20,662,588 4,791,266 3,003,691 4,106,723
Adjusted for:
Investment income (12,826,322) (9,817,025) (12,405,765) (9,817,025)
Finance expenses 526,035 337,424 457,487 242,843
Non-cash items
Investment property fair value adjustment 4 (2,941,266) (3,898,196) (2,941,266) (3,898,196)
Depreciation 9 14,884,848 10,640,635 14,884,848 10,640,635
Fair value adjustment - debtors 362,423 (259,971) 362,423 (259,971)
Fixed asset correction – 180,510 – 180,510
387,313 1,131,011 387,313 1,131,011
(13,483,971) 653,037 – –
Provisions raised 20 5,818,864 – 5,818,864 –
Increase in post-retirement obligations 21 4,889,645 12,828,438 4,889,645 12,828,438
Share of associates’ income (9,400,750) (2,645,536) – –
Taxation in associates 6,415,338 330,241 – –
Increase in loan to associates (11,125,147) (678,622) – –
(1,692,709) – – –
Long-term liability raised 262,868 (142,335) 194,319 (221,785)
2,739,757 13,450,877 14,651,559 14,933,183
Working capital changes:
(Increase)/decrease in loans (725,580) 121,842 (725,580) 121,842
Increase in inventories (534,663) (671,502) (534,663) (671,502)
Increase in accounts receivables (16,000,223) (7,211,637) (16,000,223) (7,732,914)
Increase in payables 13,700,453 8,859,873 13,652,954 8,574,770
Increase/(decrease) in deferred income 2,992,065 (1,119,808) 2,992,065 (1,119,808)
(567,948) (21,232) (615,447) (827,612)
2,171,809 13,429,645 14,036,112 14,105,571
28.1 (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
Cash on hand (11,222,531) 4,929,673 (11,222,531) 4,929,673
Cash on deposit 10,662,244 5,617,008 10,662,244 5,617,008
Foreign currency 145,094 (9,303) 145,094 (9,303)
(415,193) 10,537,378 (415,193) 10,537,378
28.2 DISPOSAL OF SHARE IN ASSOCIATE
Cost of investment 250 1,600 – –
Fair value at acquisition – 5,212,452 – –
Post-acquisition reserves 12,390,331 8,438,985 – –
Loans and advances 7,125,448 5,000,000 – –
Carrying value at disposal date 19,516,029 18,653,037 – –
Proceeds (33,000,000) (18,000,000) – –
(13,483,971) 653,037 – –
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
GROUP MINTEK
2007 2006 2007 2006
R R R R
81
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
29. RESTATEMENTS AND RECLASSIFICATIONS
GROUP
Balance as
reported and error restated
R R R
Income statement
Fair value adjustment on debtors – 259,971 259,971
Depreciation 10,619,572 21,063 10,640,635
Balance sheet
Capital and reserves
Retained earnings at beginning of the year 150,716,855 4,427,063 155,143,918
Non-current assets
Property, plant and equipment 138,233,487 4,406,002 142,639,489
Trade and other receivables 46,487,963 (259,971) 46,227,992
Income statement
Finance expenses (337,424) (259,971) (597,395)
Depreciation (10,619,572) (21,063) (10,640,635)
Cash Flow
Cash generated from operations
5,072,300 (281,034) 4,791,266
Depreciation 10,619,572 21,063 10,640,635
Company reconciliation 2006
Income statement
Fair value adjustment on debtors – 259,971 259,971
Depreciation 10,619,572 21,063 10,640,635
Balance sheet
Capital and reserves
Retained earnings at beginning of the year 133,388,995 4,427,063 137,816,058
Non-current assets
Property, plant and equipment 138,233,487 4,406,002 142,639,489
Trade and other receivables 48,180,671 (259,971) 47,920,700
Income statement
Finance expenses (242,843) (259,971) (502,814)
Depreciation (10,619,572) (21,063) (10,640,635)
Cash generated from operations
4,387,757 (281,034) 4,106,723
Depreciation 10,619,572 21,063 10,640,635
Retained earnings
The entity restated retained earnings reversing depreciation as a result of a change in the estimated residual lives of the underlying assets. As a result
prior years’ depreciation was increased by R3 902 825 while capitalised equipment that was donated in prior years with a net book value of R524 238
accounts recievable .
Property, Plant and Equipment
The entity restated retained earnings reversing depreciation as a result of a change in the estimated residual lives of the underlying assets. As a result
prior years’ depreciation was decreased by R 3 902 825 while capitalised equipment that was donated in prior years with a net book value of R524 238
and the depreciation charge in F2006 increased by R21 063.
82
annual report 2007
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
30. INSURANCE AND RISK MANAGEMENT
earning capacity and legal obligations against acceptable losses.
31. FINANCIAL INSTRUMENTS
Credit risk
Financial assets that could subject the Group to credit risk consist principally of bank balances and cash, deposits, trade and other receivables
to associates are presented net of the allowance for doubtful receivables or loan write-offs. Credit risk with respect to trade receivables is limited due to the large number of customers comprising the Group’s customer base and their dispersion across different industries and geographic areas.
Interest risk
The valuation of interest rate exposure and investment strategies is done by management on a regular basis. Interest-bearing investments are held witn reputable banks to minimise exposure.
Fair value
As at 31 March 2007 the carrying amount of bank balances and cash, deposits, trade and other receivables, trade and other payables, contracts in progress, advances received and short term borrowing approximated their fair values due to the short-term natures of these assets and liabilities.
Foreign currency risk
currently enter into forward foreign exchange contracts to buy and sell amounts of various currencies at predetermined exchange rate, as the foreign
denominated in foreign currency. As a matter of principle, the Group does not enter into foreign currency exchange contracts for speculative reasons.
The estimated fair value gain/(loss) per income statement was determined by comparing the contracted value rate to an equivalent spot rate on the settlement or at year-end rate for outstanding foreign currency.
32. BOARD MEMBERS AND EXECUTIVE MANAGEMENT REMUNERATION
2007 2006
GROUP AND MINTEK R R
Entity Basic Salary Fees for Performance services as bonus and director other expenses TOTAL TOTAL
MINTEK
Dr. PP Jourdan Mintek 1,266,717 – 4,880 1,271,597 1,193,917
Dr. RL Paul Mintek 1,242,433 – 9,912 1,252,345 1,033,879
Dr. NA Barcza (Resigned) Mintek & Mindev – – – – 763,700
Dr. M Motuku Mintek 838,768 – 8,949 847,717 782,429
Mr. P Fusi Mintek 860,227 – – 860,227 828,478
Mr. V Govender Mintek 845,352 – 280 845,632 821,450
Ms. K Mzondeki (Resigned) Mintek – – – – 127,166
– 24,021 5,077,518 5,551,019
MINTEK
Mr. M Khumalo (Chairman) Metallon Corporation – 7,000 – 7,000 9,108
Dr F. Crundwell CM Solutions – 10,546 – 10,545 18,668
Ms.T Mosery-Eboka (Resigned Jan 2006) Standard Bank – – – – 1,691
Dr. NP Mjoli Hlathi Development – 2,976 – 2,976 15,286
Ms. L Mojela (Resigned December 2005) WIPHOLD – – – – 5,659
Mr. R Havenstein Anglo American Platinum – 5,198 – 5,198 6,764
Ms. G Mthethwa Standard Bank – 11,759 – 11,759 15,219
Mr. V Pillay CSIR – 5,621 – 5,621 12,423
Mr. P Taljaard – 6,889 – 6,889 –
Prof. PE Ngoepe University of the North – 1,268 – 1,268 10,146
Mr. TY Dube – 5,621 – 5,621 –
MINDEV
Mr. N Morrison Mindev – 1,690 – 1,690 3,382
Mr. G Mosinyi Mindev – – – – 5,073
5,053,497 58,568 24,021 5,136,086 5,654,438
83
annual report 2007
33. RELATED PARTY
Controlling entity
The Group comprises of Mintek and its wholly owned subsidiary Mindev (Proprietary) Limited. Mindev is engaged in the commercialisation of Mintek
and Tollsort (Proprietary) Limited. The Group, in the ordinary course of business, enters into various sale and purchase transactions on an arm’s length
basis at market rates with related parties.
indirect, in any transactions which has affected or will materially affect Mintek or its investment interest or subsidiaries.
Associates GROUP MINTEK
2007 2006 2007 2006
R R R R
During the year the Group advanced interest bearing loans to associates.
Interest bearing loans
Mogale Alloys (Proprietary) Limited – 6,569,858 – –
Apic Toll Treatment (Proprietary) Limited – – – –
Tollsort (Proprietary) Limited – 762,500 – 762,500
Tollsort (Proprietary) Limited ceased its operations at the end of September 2004.
Mindev’s portion of the loan guarantee made to Standard Bank on behalf of Tollsort (Proprietary) Limited.
Related party transactions
Related party transactions exist within the Group. During the year all selling transactions were concluded at arm’s length. Details of material
GROUP MINTEK
2007 2006 2007 2006
R R R R
Mintek sales to:
Department of Minerals and Energy 7,425,132 6,933,125 7,425,132 6,933,125
Department of Science and Technology 10,481,138 3,154,516 10,481,138 3,154,516
Mogale Alloys (Proprietary) Limited 2,604,167 6,250,000 2,604,167 6,250,000
Mindev (Proprietary) Limited – – 1,519,662 875,381
20,510,437 16,337,641 22,030,099 17,213,022
34. FRUITLESS AND WASTEFUL EXPENDITURE
Theft and fraudulent costs 1,800,579 – 1,800,579 –
2,063,598 – 2,063,598 –
The theft and fraud related to various incidents:
A staff member of Mintek produced fraudulent documentation on which payments to various suppliers were based. A total of R2 708 947 was paid
also here criminal proceedings were initiated.
The waste and fruitless expenditure was in repect of interest and penalties paid to SARS for the late payment of VAT, PAYE, SDL and UIF. The
35. CONTINGENT ASSETS
Mintek is covered by a Fidelity Guarantee Insurance policy, which covers theft of the company’s assets and a claim has been lodged for the possible
recovery of the stolen funds.
However, the possible outcome of the claim cannot be determined as the claim is still under review.
GROUP MINTEK
2007 2006 2007 2006
R R R R
1,800,579 – 1,800,579 –
36. EVENTS AFTER BALANCE SHEET DATE
Theft and fraud amounting to R1 800 579 was detected after the balance sheet date.
Details relating to this are disclosed in Note 34 under the subheading of theft and fraud.
FINANCIAL STATEMENTS AND NOTES 2007
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
84
CONTACTSInternal auditor Jacques Fourie 011-709 4796External auditors Auditor General (AG) 011-276 1800Company Secretary Ms Vanessa Moonsamy 011-709 4906
General Managers Contact NumberTechnology Dr Roger Paul 011-709 4934
Corporate Services Mr Vimlan Govender 011-709 4328Mineral Policy & Sustainable Development Mr Petrus Fusi 011-709 4779
Division Contact NumberAdvanced Materials Dr Elma van der Lingen 011-709-4471
Biotechnology Dr Tony Pinches 011-709 4397
Conferences & Events Mr Muzi Ntombela 011-709 4140 ? Engineering Support Mr Nick Maritz 011 709 4094
Estate Management Mr Muzi Ntombela 011 709-4140Finance Ms Hester Pretorius 011-709 4698
High Temperature Technology Mr Alan McKenzie 011-709 4736Human Resources Mr Muzi Ngcobo 011-709 4373Hydrometallurgy Dr Dave Hulbert 011-709 4382
– Bursars & SET promotions Mr Garth Williams 011-709 4476
– Library Ms Manil Kanniappen 011 709-4277 Information Technology Mr Doctor Gule 011-709 4282
Kgabane Ms Busi Ntuli 011-709 4034
Minerals Economics & Strategy Unit Mr Sodhie Naicker 011-709-4414Minerals Processing Mr Agit Singh 011-709 4339
Mineralogy Ms Amanda Quadling 011-709 4163Pyrometallurgy Mr Tom Curr 011-709 4642
Quality, Environment and Safety Mr Hennie Venter 011-709 4103
ACRONYMSAfDB – African Development Bank
AMI – Advanced Metals Initiative
AMP – African Mining Partnership
ASSM – Artisanal and Small-Scale Mining
BEE – Black Economic Empowerment
BioPAD – Biotechnology Partnership and Development
CASM – Communities and Small-Scale Mining
CDFR – Client Dissatisfaction Frequency Rate
CIL – Carbon-in-Leach
CIP – Carbon-in-Pulp
DC – Direct Current
DG – Disadvantaged Group
DME – Department of Minerals and Energy
DRC – Democratic Republic of Congo
DST – Department of Science and Technology
DTI – Department of Trade and Industry
EAP – Employee Assistance Programme
ERP – Enterprise Resource Planning
EU – European Union
GAAP – General Accepted Accounting Practice
GIS – Geographic Information System
HPGR – High Pressure Grinding Roll
IA – Internal Audit
ICMI – International Cyanide Management Institute
IFRS – International Financial Reporting Standards
KPI – Key Performance Indicators
LME – London Metal Exchange
LTIFR – Lost Time Injury Frequency Rate
MLA – Mineral Liberation Analyser
MQA
MESU – Mineral Economics and Strategy Unit
NACI – National Council for Innovation
NEPAD – New Partnership for Africa’s Development
NICICO – National Iranian Copper Industries Company
NMR – Nuclear Magnetic Resonance
NNR – National Nuclear Regulator
NRF – National Research Foundation
NUM – National Union of Mineworkers
PDI – Platinum Development Initiative
PFMA – Public Finance Management Act
PBC
PGMs – Platinum-Group Metals (platinum, palladium, ruthenium, rhodium, iridium, and osmium)
PLC – Programmable Logic Controller
PWG – Prime Western Grade (zinc)
QES – Quality, Environment and Safety
QEMSCAN – Qualitative Evaluation of Minerals by Scanning Electron Microscope
RBTS – Resource-Based Technology Strategy
R&D – Research and Development
REACH – Registration, Evaluation, Authorisation and Restriction of Chemicals
RIL – Resin In Leach
RIP – Resin In Pulp
RPP – Radiation Protection Programme
SADC – Southern African Development Community
SAG – Semi-Autogenous Grinding
SARM – South African Reference Material
SARS – South African Revenue Service
SCADA – Supervisory Control and Data Acquisition
SD – Sustainable Development
SETA – Skills Education Training Authority
SET – Science, Engineering, and Technology
SETI – Science, Engineering, and Technology Institute
SHG – Special High Grade (zinc)
SMMEs – Small, medium, and micro-enterprises
S&T – Science and Technology
THRIP – Technology and Human Resources for Industry Programme
UNECA – United Nations Economic Commission for Africa
WGC – World Gold Council
WAD – Weak Acid Dissociable (cyanide)
Specialists in mineral and metallurgical technology
200 Hans Strijdom Drive, Randburg 2194, South Africa
Telephone: +27 11 709 4111 Fax: +27 11 793 2413 www.mintek.co.zaProduced by the Information and Academic Support Division of Mintek
Printed by Remata iNathi Communications and Printers (Pty) Ltd.ISBN 978-0-621-37198-7
RP 109/2007