mintek: supporting growth & development by dr paul jourdan annual report 2005 presentation to...
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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
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
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
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
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
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
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
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
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
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
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
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
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
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
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
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
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
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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
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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
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
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
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
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
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
Human resources developmentHuman resources development
•Science, Engineering and Technology promotion
•MinQuiz
•Mintek Engineering Awareness Programme
•Internship training
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Bursary programmeBursary programme
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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
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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
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
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
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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
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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
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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
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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.
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
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.
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
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
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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
Mintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & DevelopmentMintek: Supporting Growth & Development
Dr Paul Jourdan
CEO, Mintek
Thank YouThank You