2. NCOP PRESENTATION OF THE MINERAL RESOURCES 2010 / 11 BUDGET DATE 12 MAY 2010 DEPARTMENT OF MINERAL RESOURCES

3. Presentation Outline 1.DMR Budget per Programme 2.Programme 1 – Administration 3.Programme 2 - Mine Health and Safety 4.Programme 3 – Mineral Regulation 5.Programme 4 – Mineral Policy and Promotion 6.Conclusion

4. Department of Mineral Resources Structure Minister Director General Administration 1.Corporate Services 2.Office of CFO Mine Health and SafetyMineral Regulation Mineral Policy & Promotion Audit Services

5. DMR 2010 MTEF BUDGET Summary of expenditure estimates by programme 2010/112011/122012/13 R thousand 1. Administration 239,042 265,263 271,765 2. Promotion of Mine Safety and Health 145,865 159,613 168,887 3. Mineral Regulation 215,925 233,071 245,949 4. Mineral Policy and Promotion 429,184 454,199 481,393 Departmental total 1,030,016 1,112,146 1,167,994 *Change to 2009 Budget Estimate (4,076,472) (4,326,863) 32,527 *This relates to the former DME allocation

6. 2010 ALLOCATON PER CLASSIFICATION 2010/11CURRENTCAPITALTRANSFERS VOTE R’000 Administration239,042224,39413,5931,055 MHSI145,865140,0284795,358 Mineral Regulation 215,925175,282-40,643 Mineral Policy and Promotion 429,18467,559-361,625 TOTAL1,030,016607,26314,072408,681

7. Key activities from Operational Plans Programme 1  Implement accommodation plan  Implement ICT infrastructure maintenance plan (ICT technology refresh)  Develop and implement disaster recovery plan  Review and implement Masters Systems Plan  Acquisition of office supplies (furniture, equipment, consumables etc)  Annual Financial Statements

8. Key activities from Operational Plans Programme 1cont’ Develop and implement HR plan and retention strategy  Capacitate DMR (talent management plan)  Establish governance structures  Develop HRD strategy  Conduct core values and code of conduct awareness workshop  Implement enterprise risk management and fraud prevention strategies  Monitor State owned Enterprises  Develop and implement a communication strategy

9. ADMINISTRATION MTEF ALLOCATION PER CLASSIFICATION 2010/112011/122012/13 VOTE R’000 Compensation of employees 109,221 123,337130,104 Use of goods and services 115,173 131,266130,468 Payment of capital assets 13,593 9,54210,019 Transfers 1,055 1,1181,174 TOTAL 239,042 265,263 271,766

10. ADMINISTRATION MTEF PER (sub- programme) 2010/112011/122012/13 VOTE R’000 Minister 1,816 1,9162,012 Management 25,889 28,21727,917 Corporate services 188,737 211,028216,410 Office accommodation 22,650 24,10225,426 TOTAL 239,042 265,263 271,766

11. Key activities from Operational Plans Programme 2 Promotion of Health and Safety  Audit of Health and Safety management systems of mines  Conduct investigations and enquiries  Implement amendments of Mine Health & Safety Act Community issues  Develop comprehensive strategy on vibrations, blasting, and dust control Research and Development  implementation of a national seismic network system  Focused annual research programme

12. PROMOTION OF MINE HEALTH AND SAFETY 2010 MTEF ALLOCATION PER CLASSIFICATION 2010/112011/122012/13 VOTE R’000 Compensation of employees 114,007124,367131,396 Use of goods and services 26,02129,05831,003 Payment of capital assets 479508533 Transfers 5,3585,6905,986 TOTAL 145,865 159,613168,887

13. PROMOTION OF MINE HEALTH AND SAFETY 2010 MTEF ALLOCATION PER (sub- programme) 2010/112011/122012/13 VOTE R’000 Governance Policy and Oversight 46,904 52,73255,864 Mine Health and Safety (Regions) 98,961 106,881113,023 TOTAL 145,865 159,613168,887

14. Key activities from Operational Plans Programme 3 Monitor and Enforce Compliance  Social and Labour plan inspections  Mining Charter inspections  Mining and prospecting work programme inspections  Environmental management plan inspections Reduce State’s Environmental Liability  Identify and prioritise unsafe and un-rehabilitated ownerless and derelict mines  Implementation of identified ownerless and derelict mine rehabilitation projects  Ensure adequacy of current provisions for rehabilitation

15. MINERAL REGULATION 2010 BUDGET PER CLASSIFICATION 2010/112011/122012/13 VOTE R’000 Compensation of employees 91,318100,431106,253 Use of goods and services *83,96490,34795,275 Payment of capital assets --- Transfers 40,64342,29344,421 TOTAL215,925233,071245,949 *Includes funds for rehabilitation for Derelict & Ownerless mines

16. MINERAL REGULATION 2010 BUDGET PER (sub-programme) 2010/112011/122012/13 VOTE R’000 Management 5,7886,1326,440 Mineral Regulation and Administration 169,494184,646195,088 South African Diamond and Precious Metal Regulator 40,64342,29344,421 TOTAL 215,925233,071245,949

17. Key activities from Operational Plans Programme 4 Mine Environmental Management  Finalise detailed rehabilitation action plan for derelict and ownerless mines  Finalise and implement rehabilitation procedures  Assistance to marginal mines – water pumping of marginal mines  Contribute to the UNCSD proceedings to enhance the image of the mining industry – “Greening the mining industry” Promote investment in Minerals sector  Finalise the strategy for growth and sustainability of the mining industry  Increase levels of investment in mining, exploration and beneficiation  Facilitate access for BEE coal miners to the RBCT for export quality grade Transform the mining industry  Finalise the review of the mining charter  Amend the Geoscience Act  Review the Diamond Amendment Act  Review the MPRDA  Conduct frequent Regulatory Impact Assessment

18. MINERAL POLICY AND PROMOTION 2010 ALLOCATION PER CLASSIFICATION 2010/112011/122012/13 VOTE R’000 Compensation of employees 37,79843,91546,910 Use of goods and services 29,76130,93533,457 Payment of capital assets --- Transfers361,625 379,349 401,026 TOTAL429,184454,199481,393

19. MINERAL POLICY AND PROMOTION 2010 ALLOCATION PER (sub-programme) 2010/112011/122012/13 VOTE R’000 Management 16,62921,58124,686 Mineral Policy 9,0619,75810,246 Mineral Promotion 55,87556,98659,585 Assistance to Mines *35,67137,48038,917 Council for Geoscience 136,505137,512144,516 *Assistance to mines iro pumping of water

20. MINERAL POLICY AND PROMOTION 2010 ALLOCATION PER (sub-programme) cont’ 2010/112011/122012/13 VOTE R’000 Council for Mineral Technology 165,840 179,332191,316 Economic Advisory Services 4,628 4,9795,228 Mine Environmental Management 4,975 6,5716,899 TOTAL 429,184 454,199481,393

21. DEPARTMENTAL SPENDING PRIORITIES AREAS  R52 million on Rehabilitation of Ownerless and derelict mines  R302 million on research and development conducted by the Council for Geoscience and Council for Mineral Technology  R145 million on health and safety programmes, and  R174 million on implementation of Mineral and Petroleum Resources Development Act  R67 million policy development / review & investment promotion

22. CONCLUDING REMARKS This presentation should be read together with the DMR Medium Term Strategic Plan and the Estimates of National Expenditure, chapter 31 The Budget as presented contains expenditure estimates for the medium term including transfer payments for the implementing entities Excluding transfers the budget is R621,335m – R683,706m – R715,408m over the medium term The Operational Plan identifies the key tasks to be carried out in the first year of the MTEF The challenge for DMR will be to continue with the DME legacy on administrative support matters

23. THANK YOU