1. Analysis of the DMR 2013/14 Annual Report 15 October 2014

2. Analysis of the 2013/14 Annual Report: Department of Mineral Resources Dr Martin Nicol, Research Unit, Parliament 15 October 2014

3. The analysis is strictly on the Annual Report Reference points DMR Annual Performance Plan for 2013/14 – Presented to the PC in March 2013 DMR Strategic Plan: 2011-2014. Budget 2013: Estimates of National Expenditure - Vote 32: Mineral Resources. Response of the National Treasury to the Portfolio Committees, 2014. [2013 BRRR]. DMR Annual Report 2013/14

4. Selected Performance Measures for DMR from the 2013 Estimates of National Expenditure (ENE) Outcome 4: Decent employment through inclusive economic growth

5. ENE Selected Performance Measures for DMR Outcome 10: Environmental assets and natural resources that are valued, protected and continually enhanced

6. Composite Performance 2013/14 – The Department of Mineral Resources set 166 predetermined performance targets for the year – 77% of its performance targets (ie 127) were met – 23% were not net or were only partially achieved. 2012/13 – Similar result – 79 % of targets were achieved i.e. 126 out of 160.

7. Evaluation of so many measures involves a balancing act Not all measures are of equal weight – 100% achievement on measure of whether all mining licences and closure certificates issued comply with laws and regulations. – 0% achievement on finalization of Women in Mining Strategy Different reporting order in Annual Performance Plan and Annual Report – Adjustments in measures over time – Hard to determine some baselines

8. Clear improvement in 2013/14 compared to 2012/13 Financial performance: unqualified audit Compliance with principal Act: problems identified in 2012/13 have not recurred Standards maintained in 2013/14 Department played an effective monitoring role over its five entities and agencies – Mintek, Council for Geoscience, diamond trader, precious metal regulator, health & safety council

9. Areas of repeated non-achievement STRATEGIC GOAL 5 Create an efficient, effective and development-oriented department. – Attract, develop and retain appropriate skills This is a problem across government. Staff turnover, filling of vacancies, Employment Equity objectives. Performance indicators substantially altered for 2014/2019

10. Area of concern: implementation of management plans Strategic Goal 5: Ensure the optimal utilisation of resources through implementing risk management strategies and promoting sound corporate governance. Percentage of agreed management plans implemented 100% performance in 2012/13 Uneven performance across Department in 2013/14 Target 2013/14 Corporate Services Financial Admin Mine Health & Safety Mineral Regulation Mineral promotion Risk mgt76%93%100% 94% External Audit 100%69%100% Internal Audit 50%100%33% 50%

11. Area of Concern: inspectors

12. 3 areas not well covered in Annual Report This is a comment The DMR reports are fully in line with formal requirements Reports are based on the content of the Strategic Plans and the Budget Reports are already very long indeed Future growth and impact of the mining industry – SAMRAD – Environment – Reflection of case law

13. South African Mineral Resources Administration Database (SAMRAD) The State is the custodian of SA’s mineral and petroleum resources for the benefit of all South Africans. Despite the upgrades reported upon in the Annual Report, the online system has been criticised for lacking transparency and efficiency. No performance indicators specifically reflect whether SAMRAD is adequate or not.

14. DMR and the Environment Concerns raised about the way the DMR goes about its environmental management duties in practice Increase in number of mines and prospecting = more impact on ecostsytems and communities NGO report (on coal in Mpumalanga) says there is almost total lack of compliance monitoring and enforcement by the Department of Mineral Resources

15. Legal Cases MPRDA reforms brought about a “Systemic Change in Mineral Law” Large volume of litigation since 2004, insights into the interpretation of the MPRDA from case law. Appropriate for DMR Annual Reports to reflect upon this litigation, particularly in cases where the Department is directly involved.

16. Thank you Dr Martin Nicol Researcher: Portfolio Committee on Mineral Resources Research Unit, Parliament of South Africa 021 403 8331 (Tel) 021 403 8118 (Fax) 082 554 9880 (Cell) Office location: 1/068