2010/11 Annual Report Briefing Presentation to the Parliamentary Portfolio Committee 22 February 2012
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2010/11 Annual Report BriefingPresentation to the
Parliamentary Portfolio Committee
22 February 2012
Sources of Information
q Mintek Annual Report
q Performance against objectives
qReview of operations
qCorporate governance
qAnnual (Audited) Financial Statements
TECHNOLOGYPeter Craven
Mintek Executive Management
CEOMr Abiel Mngomezulu
RESEARCH &DEVELOPMENT
Vacant
FINANCESakhi Simelane
BUSINESS DEVELOPMENT
Dr Roger Paul
CORPORATESERVICES
Vacant
RESEARCH &DEVELOPMENT
Dr Makhapa Makhafola
BUSINESS DEVELOPMENT
Peter Craven
CORPORATESERVICES
Adv Mamokete Ramoshaba
TECHNOLOGYAlan McKenzie
“Despite the negative economic climate, Mintek remains a
solid company and has been able to score some major
achievements during the year. The fundamentals are
consequently starting to normalise and the organisation is
geared towards recovery and profitability. The encountered
challenges could not have been overcome without sacrifice
and tough decisions, especially with regard to finances and
staff.”
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1968-2011 Annual income
HeadingThe ConRoast- Bay 2
Slide 6 of 45
2007 2008 2009 2010 2011
Mintek compliment
531 546 780 769 688
Total Employees resigned
103 84 35 56
% Males resigned 16.8 10.2 3.6 9.1
% Female resigned
22.6 12.0 6.8 6.4
Av Length of stay(years)
4,5 3.4 2.4 4.5
Turnover rate 18.9 10.8 4.6 8.1
Annual resignations
Slide 7 of 45
Progress on rehabilitation of derelict and ownerless mines
D J F M A M J J A S O N D J F M A M
2008 - 2009 DMR Contract
Strelley 4.8
Jebolo 4.5
Owendale 0.4
Prieska Mill 3.4
Prieska wall 2.7
2010Allocation (R million)
2011
2010 /11 Financial Year
Slide 8 of 45
Strelley Dump – Before, During and After
Lusikisiki quarry, Prieska wall and drain, Osizweni
Financial Performance
Slide 11 of 45
Financial summary
Per sources of funding
R million
2011 2010 2009
Income 337.159 374.378 421.631
Core funding 128.702 123.561 105.778Earmarked funding 53.892 53.515 40.590
Own income 154.565 197.302 275.263
Expenditure -339.881 -372.945 -382.864
Staff costs -227.158 -228.709 -216.433Overheads and operating expenditure -112.723 -144.236 -166.431
(Deficit)/Surplus -2.722 1.433 38.767
Financial summary
Per nature of workR million
2011 2010 2009Income 337.159 374.378 421.631Core funding 128.702 123.561 105.778
Contract research 92.138 53.515 40.590
Products and services 116.319 197.302 275.263Expenditure -339.881 -372.945 -382.864Staff costs -227.158 -228.709 -216.433
Overheads and operating expenditure -112.723 -144.236 -166.431
(Deficit)/Surplus -2.722 1.433 38.767
Financial position analysis as at March 2011
q Revenue decrease by R37.2m (10%) (2010: R42.6m (11%)
q Cash generated from operations significantly higher that previous year due to increase in deferred income
q Volatility of foreign currency resulting in exchange loss
q Gross margin on commercial projects maintained at 25%
q Reduced trade receivables due to improved collections.
q Revaluation of land and buildings resulted in increase of R24.5m
q Expanded asset base by R63.8m (2010: R25.1m) of which R59.8m was funded externally.
Slide 14 of 45
Improved asset management and controls
2007/08 Inadequate internal controls over project management system
Emphasis of Matter – fraudulent payments of R3.6m over the past 2 yearsQualified Audit Report
2008/09 Unqualified Audit Report
2009/10 Unqualified Audit Report
2010/2011 Unqualified Audit Report
Slide 15 of 45
Total income from research
Slide 16 of 45
State grant application
Slide 17 of 45
TECHNOLOGY DIVISIONSR & D DIVISIONS
Technology divisions focus on products and services
NanotechCatalysis
Asbestos Mine
HPGRUranium
Slide 18 of 45
Research and development
Slide 19 of 45
CynoprobeCynoprobe
q ICMI Complianceq Tailings Dam dischargeq Range: 0.5 – 3000 ppmq Commercialised 2005q 65+ Installationsq APEX Award -Commercialisation
Cyanide measurement and control
High temperature heap bioleaching
Slide 21 of 45
Diversification to mine waters and wastes
Slide 22 of 45
q MNL has explored the potential application of X-ray micro-computed tomography for 3D mineral characterisation
q Collaborations have been established with the Nuclear Energy Corporation of South Africa (NECSA)
q International relations have been established with the University of Utah, a leader in the technology, thus adding value to Mintek’s endeavours in this field
q A variety of ores are being characterised using the technology, including PGM, gold, uranium and base metal ores, with respect to geological and processing applications.
3D X-Ray computed tomography – Necsa facility
Slide 23 of 45
q Identiplat™ PGM identificationsystem has been developed by MNL
q Identiplat™ is based ondetectors with high count rate can acquire a 50 000 count spectrum in < 1 second
q Smart Particle Investigator
q Full SEM control, via single user interface
q Integrated image analysis
q Output to MS Access database
Smart PI™ user interface
Slide 24 of 45
q 4 new SMME’s started
q 77 jobs created
q 33 learners trained in glass beads & jewellery
q 86 learners trained in pottery (40 disabled)
q 99 learners trained in Small Scale Mining
PotteryPottery
JewelleryJewellery
Glass BeadsGlass Beads
Small scale mining and beneficiation
Membrane electrode assembly (MEA)
Nanoparticles
Diagnostic devices
Advanced materials
Pre-clinical phaseTherapeutic system
HySA Catalysis Competence Centre
q Commissioned fuel cell test standards
q Developed MEA test protocols
q Produced platinum catalyst with equal or better activity than commercial materials (ex-situ from fuel cell)
Nanotechnolog Innovation Centre
q Produced novel Nano therapeutic and targeted delivery systems (pre-clinical stage)
q Developed advanced diagnostic prototype devices for both animal and human diseases
q Leading sponsor for gold Nanoparticles studied within the OECD
Slide 26 of 45
Advanced materials
In silicon compound screeningAuroPureTM Integrate Assay Kit
Cytotoxicity evaluation
High Temperature Corrosion
Rail Wheel Fabrication
Foundry Technology
Biomedical Researchq Computer-aided design of metal-based
inhibitors
q Assay development
q Biological identification and HIT identification
Physical Metallurgyq Service providers for the Foundry Industry
Technology Assistance Programme (DST-TAP)
q DST-AMI (FMDN) – Research on Rail Steel Technology and High Temperature Corrosion
q DST Internship Programme – Coordination of the placement of foundry technology graduates for Work Integrated Learning (WIL) opportunities at foundry companies
Slide 27 of 45
Technology – Bay2
qNo work since March 2010– Unfortunately Mintek was forced to retrench 39 staff. – No prospect of the Bay 2 operating before April 2012,
could not afford to carry staff for +2 years with no work.
qNovember 2010– Board approval R44m capital upgrade– AngloAmerican Platinum contract negotiated, 2 year
contract– Design and construction initiated.– Operations to commence May 2012– Much more versatile facility
Slide 28 of 45
Bay 2
Slide 29 of 45
Metrix
The Metrix development programme culminated with the running of the Metrix pilot plant at the Harmony site, recovering uranium from Wits gold ores
Savmin
Development of the SAVMIN water treatment process continued with assistance from Veolia. The main effort was to reduce capital and operating costs.
Slide 31 of 45
Cliffs Resources
q Successful commercial project
q Requested at PDAC conference 2010.
q Chromite project in Canada.
qMineral processing and pyrometallurgical work in excess of R15 million
Slide 32 of 45
Conroast commercialisation
Site acquired for proposed 5MW DC furnace in Middelburg
Gas-cleaning equipment underConstruction to accommodate furnace
Slide 33 of 45
Support to beneficiation policy – Rare Earth Refining
SACREF
Mine 2
Mine 3
Concentrator Plant 1
Mine 1
Concentrator Plant 2
Concentrator Plant 3
ORE
ORE
ORE
CONC
CONC
CONC
Full range
of Rare
Earths
Southern Africa has valuable Rare Earth resources, which should be refined locally. Mintek is developing a concept for a South African Cooperative Refinery (SACREF), using technology developed under state funding
Slide 34 of 45
q Human Capital Development
q Enhance the Transformation Agenda
qMaintain a World-Class R&D Competency
qManage Occupational Health, Safety and Wellbeing of employees
q Research Information Management System (RIMS Project)
Corporate services
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DEMOGRAPHIC PROFILE
§ Designated groups make up 83% of total staff compliment§ Core make up 75% of the compliment
MAP 20 employees graduated out of the Wits Business School’s Management Advanced Program (MAP), bringing the total MAP output for Mintek to 60 since inception in 2009
Coaching and Mentoring Programme has been implemented in all Mintek divisions.
Science, Technology, Engineering and Mathematics Promotion: Minquiz, a nationwide Science contest for Grade 12’s
q Registrations: 2009 (398) 2010 (500)
Full-Time Bursary Programmes: 100% absorption rate
Internship Programmesq DST/NRF Professional Development Programme: 5 Masters Graduatesq DST/NRF Professional Development Programme: 3 Doctoral Graduatesq DST/NRF Interns: 13q MQA Graduate Development Programme : 11
Partnerships with HEI Institutes and other similar organizationsqFour new partnerships (SASOL; FESTOC; SAASTA; Leoben)q4 events: Provincial Minquiz; UP Open Day; National Science Week qDMR Learner Focus Week
Human capital development management
Slide 37 of 45
PART-TIME BURSARSBlacks Females Total (males included)
Undergraduate 45 22 45Postgraduate masters 18 10 23Postgraduate doctoral 5 1 5TOTAL 68 33 73
FULL-TIME BURSARSBlacks Females Total (Males included)
Undergraduate 53 32 61Postgraduate masters 14 7 18Postgraduate doctoral 5 3 7TOTAL 72 42 86
Bursary program participation
Slide 38 of 45
Financial year Black Trainees Females only (all races)
Total intake
2008/9 20 8 20
2009/10 45 24 45
2010/11 45 23 45
The WIL intake has increased from 2009 to 2010 but has again stabilised in 2011
Work integrated learning: trainee intake
Slide 39 of 45
q Retrenchments: 39
q Shopstewards trained on the LRA
q Consultative meetings with the Union introduced
q Recognition Agreement still in place and in force
q HIV/AIDS Education continues to improve testing, knowledge and behavioral change
q Participation in the HIV prevalence survey over the three periods (2004, 2007 and 2007) is as follows:
Participation in the survey 2004 to 2011
Year No. of permanent employees tested Total staff compliment % HIV positive in the survey % of permanent workforce
tested
2004 463 498 7.8 93%
2007 480 517 8.8 93%
2011 416 687 6.8 61%
Employer/Employee relations climate
q There is still under-representation of designated groups at the technical, professional and managerial levels
q This is due to the general shortage of designated DG engineers and scientists
q We continue investing in our pipeline development initiatives tominimise the impact now and in future
q School system not producing enough Maths and Science graduates
q International competition for skills
q “Younging” workforce
q Salaries of professionals are not competitive
q Limited budget to attract key and critical talent e.g. absence of shares, international vacation, etc.
Hurdles
Slide 41 of 45
q In 2009, Mintek was one of the first Science Council to implement the RIMs project.
q Mintek is currently making use of GENIUS Researcher Database, SPIN, and the Research Output modules
q Current plans include the maintenance of these modules and roll-out of GENIUS so that researchers can keep their CV data current
Research information management (SARIMS)
Slide 42 of 45
Conclusion
Conclusion contd,
q A difficult year:q No revenue from Bay2q Project delays from the customers on larger projectsq Absorbed increased electricity tariffs
q Mintek is still healthy and the forecast for 2012 is goodq Developing a demonstration-scale atomiser plantq Establishing an ‘African REE Refinery’q Leveraging the Savmin process to address AMD
q Building on implemented 2011 improvements
q Growing awareness of environmental consequences
q Collaborative research
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www.mintek.co.za
Mintek – your partner in unlocking mineral wealth
Slide 45 of 45
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