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

2. Mintek: Supporting Growth & Development 70 th 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 Introduction

4. Mintek: Supporting Growth & Development Vision 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

5. Mintek: Supporting Growth & Development R&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

6. Mintek: Supporting Growth & Development R&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

7. Mintek: Supporting Growth & Development R&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

8. Mintek: Supporting Growth & Development R&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

9. Mintek: Supporting Growth & Development R&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

10. Mintek: Supporting Growth & Development Commercial 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

11. Mintek: Supporting Growth & Development Partnerships 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

12. Mintek: Supporting Growth & Development Mineral 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 Province RBTS - completed overview of capital goods, technologies, products and services supporting the mineral-based industries

13. Mintek: Supporting Growth & Development Support 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

14. Mintek: Supporting Growth & Development Employment equity / Quality

15. Mintek: Supporting Growth & Development Human resources development Science, Engineering and Technology promotion MinQuiz Mintek Engineering Awareness Programme Internship training

16. Mintek: Supporting Growth & Development Bursary programme

17. Mintek: Supporting Growth & Development Financial 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

18. Mintek: Supporting Growth & Development Financial trends Total income and income per employee 1993 - 2005 (2005 Rand adjusted using PPI, SARB) Income, R Million Income per employee R ‘000 Total Income (1.5X) Income/Employee (2.4X) 0 100 200 300 400 500 600 0 50 100 1993199519971999 2001 20032005 150 200 250 300

19. Mintek: Supporting Growth & Development Quality, 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

20. Mintek: Supporting Growth & Development 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 System

21. Mintek: Supporting Growth & Development 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 Financials

22. Mintek: Supporting Growth & Development Plans 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

23. Mintek: Supporting Growth & Development 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.

24. Mintek: Supporting Growth & Development Five-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.

25. Mintek: Supporting Growth & Development 5-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

26. Mintek: Supporting Growth & Development Summary of Science Vote allocation 2006-2007 TOTAL BASELINE REVISED VAT ADJUSTMENT TECHNICAL DIVISIONR 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 Infrastructure10 146 083 103 600 000 15 064 000 GRAND TOTAL118 664 000 For complete list of projects per division with allocated amounts, please see the handout

27. Mintek: Supporting Growth & Development Dr Paul Jourdan CEO, Mintek Thank You