1. Dr Paul Jourdan Wednesday, 29th March 2006 Briefing to the Portfolio Committee on Science & Technology

2. Earliest use of minerals - Homo habilis (Sterkfontein and Kromdraai, 1.7 - 2 million years BP) Oldowan chopper cores and flake tool, Olduvai Gorge, Tanzania Earliest recorded “quarrying” by hominids History of Mining in Southern Africa

3. Engraved plaque of ochre (hematite) from Blombos Cave (Cape Province), 75 000 years BP The earliest know example of symbolic art? The first human “writing”? History of Mining in Southern Africa

4. Underground ochre mine, Lion Cavern, Ngwenya, Swaziland, 20 000 - 43 000 years BP (Middle Stone Age). The world’s first underground mine (San people)! History of Mining in Southern Africa

5. Iron and copper mining and smelting, from c. 200 AD 1000’s of smelting sites across southern Africa! Venda-type iron smelting furnace, 1888 For axe heads, hoes, arrow heads, assegais, etc. History of Mining in Southern Africa

6. Gold trade via the eastern seaboard to the Middle East and Asia well- established by c. 900 AD Mapungubwe, c. 1220 -1270 trading dhow History of Mining in Southern Africa

7. Alienation of land and minerals Mining integrated into European economy (export-oriented) Local entrepreneurs excluded from the industry except as labour Racial exploitation intensified under “apartheid” Liberation 1994 Minerals for development of all South Africans? Alienation of land and minerals Mining integrated into European economy (export-oriented) Local entrepreneurs excluded from the industry except as labour Racial exploitation intensified under “apartheid” Liberation 1994 Minerals for development of all South Africans? : Colonial period: History of Mining in Southern Africa

8. SA Minerals Transvaal System Manganese HG 80% Iron 5% Wits System Gold 40% Uranium 9% Bushveld Complex PGMs 85% Chromium 70% Vanadium 45% (Titanium pot 60%) Plus: Fe, Ni, Cu, Co, S COAL Ti Ti Ti Ti COAL Mining Service Industries

9. Exploration Licences Surveys Skills Feasibility studies Mining Support services Labour Energy Consumables Capital equipment Construction Mine Development Surveys Mine planning Shaft/pit development Project management Finance Construction Process engineering & development Capital equipment Mining Value Chain & Inputs

10. Products Milling & Concentrating Construction Consumables Energy Capital equipment Process engineering & development Smelting & Refining Scrap Labour Energy Consumables Capital equipment Process engineering & development Mining Value Chain & Inputs MINTEK

11. 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

12. Mintek was 70 years old in 2004; Permanent staff of about 500 (+150 outsourced), of which about 300 are professionals with tertiary education; 2005/6 projected annual turnover of R277 million: –R95 m provided by the State Science Vote; –R170 m earned by the sales of products, IP, and services; –R12,0 m via competitive government R&D grants Comes under the Mintek Act: Board appointed by Minister of Minerals & Energy 2004 Independent Institutional Review: confirmed that Mintek is held in very high regard both nationally and internationally IntroductionIntroduction

13. Findings of the Five-year Institutional Review: 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. Institutional Review

14. 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

15. MINTEK Income

16. Science Vote Allocation TECHNICAL DIVISION 2005/06, Rm 2006/07, Rm

17. Financial Summary, 2004/5 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. Income 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

20. MANAGERS 0 2 4 6 8 10 12 14 16 20002003200420062008 NON-DG DG Projected Transformation NON-DG DG EXECUTIVE 0 2 4 6 8 10 12 14 16 2000200320042006 2008

21. Employment Equity

22. Quality, Environment & Safety Integrated Mintek’s quality, environmental and safety systems ISO 9001:2000 (quality) 2002 - 2006 ISO 14001:2004 (environment) 2003 - 2006 OHSAS 18001:1999 (safety) 2004 - 2006 Lost-time Injury Frequency Rate of 1.7

23. QualityQuality

24. MINQUIZ ADOPT-A-SCHOOL Science Support Programmes EDUMAP HIV/AIDS programme (Itereleng/Ikageng) SET Week