Mintek: Supporting Growth & Development by Dr Paul Jourdan Annual Report 2005 Presentation to the Portfolio Committee 16 November 2005

Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development

by Dr Paul Jourdan

by Dr Paul Jourdan

Annual Report 2005Presentation to the Portfolio Committee

Annual Report 2005Presentation to the Portfolio Committee

16 November 200516 November 2005


70th anniversary in 2004

Total revenue R254.9 million (2004: R204.4 million)

Permanent staff of 490, of which 281 are professionals

Independent Institutional Review - confirmed Mintek is held in very high regard both nationally and internationally

IntroductionIntroduction


Vision and MissionVision and Mission

Our Vision

To be a global leader in mineral and metallurgical R&D

Our Mission

To serve South Africa by promoting technology, industrial growth and human development

Our Compact• to add value to South Africa's mineral resources

• to expand the country's mineral technology industries

• to develop the minerals industries in SADC and throughout Africa

• to support the growth of SMMEs in the minerals sector

• to transform Mintek's business practices and staff profile


R&D highlights - goldR&D highlights - gold

Project AuTEK - gold-based catalysts reach product development stage, biomedical programme broadened. Considerable support from NRF (THRIP) and DST

Cyanide monitoring on gold plants in Africa. THRIP project on environmental aspects of cyanide usage


R&D highlights - PGMsR&D highlights - PGMs

Two industry-supported collaborative R&D projects

THRIP project to investigate PGM smelting

Innovation Fund projects - platinum superalloy coatings and jewellery applications

Testwork to support feasibility studies for several new mining projects.

Recovery of PGMs from revert tailings


R&D highlights - ferrous metalsR&D highlights - ferrous metals

Smelting testwork for Shevchenko ferronickel project (Kazakhstan)

Industrial-scale trials of low-nickel stainless steel (Innovation Fund project)

Negotiations to introduce ‘smart’ rockbolt in mining industry


R&D highlights - non-ferrous metalsR&D highlights - non-ferrous metals

Co-ordinator of bioleaching work package for the EU’s BioMinE Project (supported by DST)

Heap bioleach technology to be piloted in Iran

Two major BioPAD-funded projects

Thermal magnesium process development completed

R&D support for copper-cobalt projects in Zambia and the DRC


R&D highlights - industrial mineralsR&D highlights - industrial minerals

Renewed interest in uranium - metallurgical investigations for two projects in SA and one in Namibia

Evaluation of manganese ore samples from Gabon (CVRD)

Sample characterisation on kimberlite ores


Commercial activitiesCommercial activities

Participation in operating companies (Atoll, Mogale Alloys and Tollsort)

Business development projects: iron production (HBI, pig iron) Coega ferronickel, electrolytic manganese dioxide and autocatalyst recycling (new Innovation Fund project)

Process optimisation strategies in RSA and West Africa, Latin America and Australia. Carbon regeneration equipment in Latin America


Partnerships and technology alliancesPartnerships and technology alliances

Links with professional bodies, other science councils, government departments and SET community (EU FP6, WSSD)

Role in various bilateral agreements (eg. Belarus, Chile, India)

Collaborative research with local and international universities


Mineral policy and sustainable developmentMineral policy and sustainable development

MESU - mapping out the options for strategic development of SADC’s and continental mineral resources (AMP)

Policy support for the DME around beneficiation initiatives and small-scale mining

Spatial Development Initiatives (with RBDIP and Nepad)

Mineral sector strategy for Northern Cape ProvinceRBTS - completed overview of capital goods, technologies, products and services supporting the mineral-based industries


Support for small-scale miningSupport for small-scale mining

SSM Division provides R&D, skills and access to finance

Management of Technical Reference Group 23 on behalf of the MQA

More than 700 small-scale miners trained - programmes supported by the MQA and Department of Labour

Community-based training in glass-beadmaking, ceramics and alluvial diamond mining


0

10

20

30

40

50

60

70

80

90

2001 2002 2003 2004 2005 2006(projection)

% D

G

Technicians

Total DG

Professionals

Management

Employment equity / QualityEmployment equity / Quality


Human resources developmentHuman resources development

•Science, Engineering and Technology promotion

•MinQuiz

•Mintek Engineering Awareness Programme

•Internship training


Bursary programmeBursary programme


Financial Summary 2004/2005Financial Summary 2004/2005

5 796

108 222

140 879

249 101

156 644

9 621

88 632

254 897

Surplus

Overheads and Operating Expenditure

Staff Costs

Expenditure

Own Income

Earmarked funding

Core funding

Income

R ’000


Financial trendsFinancial trends

Total income and income per employee 1993 - 2005(2005 Rand adjusted using PPI, SARB)

Inc

om

e,

R M

illi

on

Inc

om

e p

er

em

plo

ye

e R

‘0

00

Total Income (1.5X)

Income/Employee (2.4X)

0

100

200

300

400

500

600

0

50

100

1993 1995 1997 1999 2001 2003 2005

150

200

250

300


Quality, Environment & SafetyQuality, Environment & Safety

• Integrated Mintek’s quality, environmental and safety systems

• ISO9001:2000 (quality) 2002 - 2005

• ISO14001:1996 (environment) 2003 - 2005

• OHSAS 18001 (safety) 2004 - 2005

• Lost-time Injury Frequency Rate of 0.95


Problems

• Hardware failure of primary server• Human error in doing primary backups• Hardware failure in recovering secondary backup• Problematic and time consuming recovery procedure• Staffing shortage in regard to SAP expertise

Way forward

• Better backup process and checking in place• More appropriate form of SAP - implementation April 2006• SAP to be hosted offsite - more secure & less complex

SAP SystemSAP System


Reasons for delay

• SAP crash delayed financials presentation by about three months.

• Audit changed - substantive instead of control-based. Significantly more samples tested than previously, which resulted in an extension of the audit.

• Mintek had to review many of its accounting policies, particularly relating to depreciation, post-retirement medical aid liability and accounting for prior year adjustments.

• Resource constraints - at the AG and at Mintek.

• Correction and adjustments of prior year errors - audit processes significantly reviewed.

Sign-off of FinancialsSign-off of Financials


Plans for 2005-2006Plans for 2005-2006

Optimise balance between commercial and R&D activities

Re-emphasise research as a core competency

Maintain an appropriate contribution to wealth creation, poverty alleviation and human capacity building

Retain the Mintek brand with respect to research and products


Plans for 2005-2006 (continued)Plans for 2005-2006 (continued)

Progressively extend core competencies to include

• the refining stages of the mineral/metal value chain

• environmental protection and sustainability

Begin a comprehensive evaluation of the Southern African mining scene that will provide a basis for setting national long-term research priorities and feed into Mintek’s own research strategies.


Five-year Institutional ReviewFive-year Institutional Review

Findings•Mintek has an excellent international reputation as a world class organisation in mineral and metallurgical R&D and technology transfer.•Mintek’s mission is to serve South Africa by promoting technology, industrial growth and human development. •Mintek is committed:

•To foster the establishment and expansion of industries in the field of minerals and products derived therefrom;•To contribute to wealth creation and poverty alleviation; and,•To develop the requisite human capital to sustain the mining and minerals sector.

•Mintek should be congratulated for its successful transformation programme.


5-year Institutional Review5-year Institutional Review

Conclusions & Recommendations

•Manage the dynamics … that shape the balance between commercial, R&D and socio-political activities

•Establish enduring and robust relationship with the DME

•Retain high-quality DG personnel in the face of competition from industry

•Secure additional funds for research and human capital development (earmarked funds, international donors)

•Commercial activities - focus on licensing, royalties, sponsorships

•Establish expertise in environmental protection and sustainability

•Reward performance and offer market-related salaries

•DIFR should be set to zero


Summary of Science Vote allocation 2006-2007Summary of Science Vote allocation 2006-2007

TOTAL

BASELINE

REVISED VAT ADJUSTMENT

TECHNICAL DIVISION R

Analytical Services

Small Scale Mining

Biotechnology

Advanced Materials

High Temperature Technology

Mineralogy

Hydrometallurgy

MESU

Measurement & Control

Pyrometallurgy

Minerals Processing

Information & Communications

Science, Engineering & Technology Promotion

Business Development

Engineering Support

3 453 800

3 700 000

3 199 040

10 900 000

3 205 800

2 430 000

5 512 000

5 810 000

13 100 000

11 000 000

14 092 079

3 382 198

8 640 000

2 900 000

2 130 000

93 453 917

Research Infrastructure 10 146 083

103 600 000

15 064 000

GRAND TOTAL 118 664 000

For complete list of projects per division with allocated amounts, please see the handout


Dr Paul Jourdan

CEO, Mintek

Thank YouThank You

Documents

Mintek: Supporting Growth & Development by Dr Paul Jourdan Annual Report 2005 Presentation to the Portfolio Committee 16 November 2005