Council for Geoscience briefing to the Parliamentary Portfolio Committee on Mineral Resources
Annual Report for 2013/14
1 Presentation Structure
• Governance Structure • Board of Directors • Mandate • Operational Footprint • Corporate Performance • Key Geoscience Programme Activities • CGS Facilities • National and International Collaboration • Audited Financial Statements & Multi Year Budgets • Human Capital • 35th IGC
2 CGS Governance Structure
GOVERNANCE & OPERATIONAL REPORTING Department of Mineral Resources Minister SCIENTIFIC RESEARCH REPORTING Department of Science and Technology
Board Private and public sector representatives
Chief Executive Officer & Executive Management
3 The Board of the Council for Geoscience
Prof. P E Ngoepe Mr M W Kota Mr B A Gerryts Prof. M A Hermanus Mr M Mabuza Chairperson of the CEO Department of Science Council for Scientific Department of Mineral Board University of Council for Geoscience and Technology and Industrial Resources Limpopo Research
Dr H Mathe Dr J E McGill Ms K R Mthimunye Dr M Mayekiso Mr M P Nepfumbada Tranter Resources Council for Scientific Bluewaves Department of Department of Water (Pty) Limited and Industrial Consulting Services Environmental Affairs Affairs Research
Ms S Ngxongo Mr M Riba Department of Human Department of Rural Development and 4 Settlements Land Reform
The Geoscience Act (Act 100 of 1993) The Geoscience Amendment Act (Act 16 of 2010)
• The systematic onshore and offshore geoscientific mapping of South Africa • Basic geoscience research into the nature and origin of rocks • The collection and curation of all geoscience data and act as a National Geoscience Repository • Rendering of geoscience knowledge services and advice to the State • Manage a number of national geoscience facilities on behalf of the country • Render commercial geoscience services and products to national and international clients
Operational Footprint Overview of Corporate Performance
7 Historic Statutory and Commercial Performance
8 Corporate Performance
BSC Perspective: Market (Stakeholder/Customer) Focus
Baseline Target Performance Measure 2012/13 2013/14 2013/14
Annual Technical Programme 91.58% 85% 96,83% performance index
% satisfied 88,4% 85% 90,6% customers
No. of geoscience maps, map explanations and 34 16 19 related manuscripts published in- house
9 Corporate Performance (continue)
BSC Perspective: Market (Stakeholder/Customer) Focus
Baseline Target Performance Measure 2012/13 2013/14 2013/14
# of rural development 29 12 29 project reports completed # of Regional and African Development 20 25 16 Project reports completed # of Environment related project 21 7 23 reports completed
10 Corporate Performance (continue)
BSC Perspective: Market (Stakeholder/Customer) Focus
Baseline Target Performance Measure 2012/13 2013/14 2013/14
Number of seismic 2 10 5 stations installed
Articles published in the popular 7 2 3 press Articles published in industry 5 4 1 publications
11 Corporate Performance (continue)
BSC Perspective: Economic (Financial) Growth
Baseline Target Performance Measure 2012/13 2013/14 2013/14
Total Revenue R289,9m R348m R314,3m
Contract Revenue R86,5 m R79,8m R40,5m
12 Corporate Performance (continue)
BSC Perspective: Economic (Financial) Growth
Baseline Target Performance Measure 2012/13 2013/14 2013/14
Ratio of External Revenue to Total 36,11% 23,8% 20,34% Revenue
# of large tenders and proposals 15 24 24 submitted (>R1m)
Tender success 40% 10% 20,83% rate #
13 Corporate Performance (continue)
BSC Perspective: Economic (Financial) Growth
Baseline Target Performance Measure 2012/13 2013/14 2013/14
Ratio of overhead costs to total cost 56,8% 60% 53,3% (%)
Ratio of personnel costs to total 58,9% 59% 51,27% costs
14 Corporate Performance (continue)
BSC Perspective: Effective Systems (Organizational)
Baseline Target Performance Measure 2012/13 2013/14 2013/14
Preferential (BEE/HDI) 34% 40% 18,03% procurement as % total procurement
# of audit 0 0 0 qualifications
# of policies written and/or New measure 5 3 reviewed
15 Corporate Performance (continue)
BSC Perspective: World Class People (Learning and Growth)
Baseline Target Performance Measure 2012/13 2013/14 2013/14
Net staff turnover 12,3% 0% -2,88%
# of staff funded for MSc and PhD 46 35 42 degrees
# of papers and 115 70 145 articles published
16 Corporate Performance (continue)
BSC Perspective: World Class People (Learning and Growth)
Baseline Target Performance Measure 2012/13 2013/14 2013/14
# of projects with external 45 50 50 collaborators
# of strategic science 33 20 29 partnerships
17 Corporate Performance (continue)
BSC Perspective: World Class People (Learning and Growth)
Baseline Target Performance Measure 2012/13 2013/14 2013/14
Scientists as a % 41,12% 45% 35,53% of total staff
% of scientific staff wit PhD and 48,92% 57% 47,22% MSc degrees
% satisfied 62% 60% Project stopped protégées
18 Corporate Performance (continue)
BSC Perspective: World Class People
Baseline Target Performance Measure 2012/13 2013/14 2013/14
EE Statistics (Consolidated) 31:69 34:66 31:69 (W:B)
EE Statistics 59:41 55:45 56:44 (Gender) (M:F)
% satisfied staff 71,9% 65% 72,5%
19 Key Geoscience Programme Activities
20 Scientific/Business Thrusts
21 Prospecting for Strategic Minerals in South Africa (REE)
22 Prospecting for Strategic Minerals in South Africa (REE) (Continue) Inventory of Uranium Resources
24 Detailed Uranium Exploration in the Springbok Flats Coalfield
Part of V. Nxumalo’s PhD study 25 CGS PhD and MSc Studies in the Springbok Flats Coalfield
• To understand the distribution, form and concentration of Uranium present in the coals of the Springbok Flats.
• Evaluate the chemical and physical properties of coal (coal quality).
Ms Valerie Nxumalo • To understand the extractability of uranium (PhD candidate) from coal using acid medium leaching methods.
• To determine whether the Springbok Flats hosts economically extractable quantities and qualities of both uranium and coal.
Mr Mpumelelo Ndhlalose (MSc candidate) Platinum-Group Elements in the Merensky Reef, Eastern Bushveld Complex
27 Prospecting for “Black Granite” (Dolorite) Dimension Stone
28 South African Coal Database
29 CGS’ new Coal Laboratory
Dr. Nandi Malumbazo busy analysing samples 30 Stimulating Investment in the Minerals Sector – Aim of the Programme
.By conducting semi-regional airborne and geochemical surveys and obtaining higher quality data in mineral belts and districts
.By developing conceptual mineral deposits models and integrating multi-disciplinary data in GIS
31 Stimulating Investment in the Minerals Sector – The Products
• Mineral prospectivity maps o Showing mineral prospective areas (targets) o Report explaining the targets potentiality
32
Stimulating Investment in the Minerals Sector – The Target Areas
1 = Tugela (KZN)
2 = Barbeton greenstone belt (Mpumalanga)
3 = Sabi-Pilgrim’s Rest Goldfield (Mpumalanga)
4 = Musina Copper District (Limpopo)
5 = Thabazimbi (Northwest Province)
6 = Kheis Terrane (Northern Cape)
7 = Namaqualand Terrane (Northern Cape
8 = Karoo Basin
33 Stimulating Investment in the Minerals Sector - Tugela, KZN Stimulating Investment in the Minerals Sector – Namaqualand, Northern Cape Geology of the Augrabies National Park Regional Geochemical Mapping Geophysical Mapping and Modeling Remote Sensing
39 Geological Storage of Carbon Dioxide
• Possible deep saline formation storage opportunities onshore and offshore in Mesozoic basins along the coast of South Africa. The storage capacities of the basins and coalfields are indicated by the round black symbols.
40 Engineering Geology – Soil Sampling and Soil Testing
41 Geohazards - Sinkholes
42 Seismic Activity
43 D&O Project Objectives and Deliverables- 2013/4
• Field Investigations-continuous improvement on the database
• Closure of mine holings in Limpopo and Gauteng.
• Designs and BoQs of highly prioritised As sites.
• Annual Review of DMR’ s liability
Progress on visited
D&O Mines (Visited vs still to be visited) 2013/14
2128(35%)
3872(65%) Status of the visited sites
Ranking status of all visited D&O mines 2013/14
152 (7%) High Priority 130 (6%) 407 (19%) Moderate Priority 217 (10%) Low Priority
335 (16%) No rehabilitation appears necessary Operational/Owned
887 (42%) Visited but no access Holings/Shafts closure
• There are 27 holings that were sealed in the financial year 2013/4 in Gauteng and Limpopo.
• The Department officials had an opportunity to undertake a field visit in December 2013 with some of the CGS officials to go and see some of these sealed shafts in Gauteng and also to have an idea of the mega-shafts that are still open in Gauteng.
• The risk they are posing to the communities and the security challenges with regard to the presence of illegal miners in such sites. Laela Gold mine infrastructural demolition and site clearance
Note: the proximity of this mine to settlement Demolition in progress Sloping and levelling on the site Closed South West Shaft in Gauteng Groundwater - serving the Community
52 CGS Facilities
53 National and International Collaborations
• Botswana – Research & Institutional reform • Tri-nations project – Botswana/Namibia/South Africa • SADC Geological and Hydrogeological map • Inkaba ye Africa – Italy, Germany • One Geology • AEGOS • Namibia Geological Mapping • Tanzania Geology and Geochemistry • Malawi – Overseeing Airborne Hydrogeology and institutional reform scoping • Haiti-Metallogenic Mapping • Burkina Faso – Geological, geochemical and geophysical mapping supervision in Burkina Faso • OAGS • Zambia - Institutional reform scoping
54 International Delegation from Cameroon
55 Finance
56 56 Actuals and Budgets for the Period 2013/14 to 2015/16
ACTUALS AND BUDGETS FOR THE PERIOD 2013/14 TO 2015/16
INCOME (RANDS) 2013/14 2013/14 2014/15 2015/16 Audited Actual Budget Budget Budget x 1000 x 1000 x 1000 x 1000
Government grant 250 345 271 232 287 839 309 114 Sales and contracts 40 453 79 860 87 846 96 630
Sundry income(including interest income) 23 477 2 894 3 039 3 191 TOTAL INCOME - A 314 275 353 986 378 724 408 935 EXPENDITURE Personnel costs 159 358 162 289 172 787 186 148 Bursaries 2 034 2 090 2 300 2 530 Commercial project costs 25 202 39 937 39 531 43 484 Overheads and operating costs 126 231 128 170 137 106 137 623 SUBTOTAL - B 312 825 332 486 351 724 369 785
CAPITAL EXPENDITURE *19 741 21 500 27 000 39 150
TOTAL EXPENDITURE = B 332 567 353 986 378 724 408 935
Surplus (Loss) 1 450 ------
* Balance Sheet
57 57
Total Asset Acquisitions
35 000
30 000
25 000
20 000
15 000
R 31 31 R 322
R 31 31 R 233
R 30 30 R 212
R 9 9 R 776
10 000
R 21 21 R 223
R 19 19 R 741
R 16 16 R 833 R 16 16 R 760
5 000 R 15 344 R 2 2 R 015
0
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
58 58 Financial management and audit
Audit • The Council for Geoscience has obtained unqualified audit opinion from the Auditor General for a period longer than twelve years. • In the reported year irregular expenditure to the amount of R4.9m is disclosed in the Annual Financial Statement. - A forensic investigation revealed irregular practices by the Procurement Manager. - A disciplinary hearing was conducted and the Manager was dismissed for irregular practices. i. Not declaring interest ii. Unfair award of tenders
59 59
Financial Future Outlook
Liquidity Ratio
• Current Asset : Current Liabilities 2.5:1
• The Council is able to meet its financial obligations as they become due.
60 Ring-fenced Funds
ITEM 2013/14 2014/15 2015/16 2016/17 R R R R Baseline allocation 154.7m 156.0m 171.3m 192.0m
Water Ingress Project 26.5m 21.8m 22.8m 23.8m
Derelict and Ownerless 20m 20m 20.9m 21.9m Mines Project
Additional Funding (MTEF proposals) 50m 65m 68m 71.1m - Stimulation of investment in the Mineral Sector - Building & 20m 25m 26.1m 27.3m infrastructure (AC) Total Government Grant 271.2m 287.8m 309.1m 336.1m
61 61
New MTEF Proposals
PROJECTS 2015/16 2016/17 2017/18 TOTAL
OPTION 1: R10m R10m - R20m HOSTING THE 35th INTERNATIONAL
GEOLOGICAL CONGRESS IN SOUTH
AFRICA IN 2016
OPTION 2:
IMPLEMENTATION OF THE R25.4m R38.8m R50. 6m R114.8m GEOSCIENCE AMENDMENT ACT
OPTION 3: RESOURCING SOUTH AFRICA TO R247m R261. 8m R277. 5m R786.3m SECURE FUTURE MINERAL-, WATER- AND ENERGY RESOURCES
OPTION 4: CREATING A COUNCIL FOR R155. 9m GEOSCIENCE COMPETENCY TO R32.5 R84.3m R39.1m
PERFORM CERTAIN FUNCTIONS TO BE
TRANSFERRED FROM THE
PETROLEUM AGENCY OF SOUTH AFRICA
OPTION 5: EXPLORING THE UNKNOWNS OF R22m R39.4m R24.5m R85.9m HYDRAULIC FRACTURING
62 62
New MTEF Proposals
PROJECTS 2015/16 2016/17 2017/18 TOTAL OPTION 6: AGGREGATE QUALITY ASSESMENT FOR NATIONAL INFRASTRUCTURE R10.7m R9m R10.6m- R30.3m DEVELOPMENT IN SOUTH AFTRICA REGIONAL CASE STUDY OF DURBAN,FREESTATE AND GAUTENG CORRIDOR. OPTION 7: BENEFICIATION OF MINERAL WEALTH IN SOUTH AFRICA ( RESOURCEFUL R13m R16m R15m R44m WASTE ) OPTION 3: INVESTIGATING RISK ASSOCIATED WITH SINKHOLE FORMATION IN AREAS R6.7m R100.6m R117.7m R225m UNDERLAIN BY DOLOMITE IN SOUTH AFRICA.
TOTAL R376.3M R559.9M R535M R1 471.2M
63 63 Human Capital
64 64 Our Employees
65 Human Resources
• Strategy anchored on the following pillars: – Continue to transform the organisation – Retaining skilled scientists – Fast tracking the training of young scientists especially previously disadvantaged – Training Programmes are: • Bursaries (Part-time and fulltime) • Internship Programme (In collaboration with MQA) • Mentorship Programme • Geological Mapping Field School
66 66 Overall Demographic Profile by Race
60% 59%
50%
40%
30% 29% Race
20%
10% 6% 4% 2% 0% Africans Coloured Indian White FN
67 Staff Profile as at 31 March 2014 67 Staff Profile by Race
70% 65% 62% 60% 61%
53% 54% 50%
40% 39% 38%
31% Black 30% 30% 29% White
20%
10% 7% 7% 6% 6% 5% 2% 0% 1% 1% 1% 1% 2010 2011 2012 2013 2014
Period – 2010 to 2014 68 68 Staff Profile by Gender
60% 55% 54% 53% 53% 52% 50%
42% 40% 40% 38% 38% 39%
30% Male Female 20%
10% 7% 7% 6% 6% 5% 1% 1% 1% 1% 1% 0% 2010 2011 2012 2013 2014
Period – 2010 to 2014 69 69 Female Scientists in the CGS Demographic Composition of Bursars by Race
80% 76%
70%
60%
50%
40% Race
30%
20% 18%
10% 6%
0% 0% Africans Coloured Indian White
Staff Profile as at 31 March 2014 71 71
Demographic Composition of Bursars by Gender
70%
63% 62% 60% 59% 55% 55%
50% 45% 45% 41% 40% 37% 38% Male
30% Female
20%
10%
0% 2010 2011 2012 2013 2014
Period - 2010 to 2014
72 72
Bursary Intake Analysis
30 29
25
22
20
17 16 15 No. Bursars
10 8
5
0 2010 2011 2012 2013 2014
73 Number of Bursars - 2010 to 2014 73
Budget: Fulltime Bursars
3000000
2600000 2500000
2090000 2000000 1900000
1500000 Budget 1200000 1200000
1000000
500000
0 2010 2011 2012 2013 2014
Budget – 2010 to 2014 74 74
Internship Programme
60
56
50
40 40
30 No. of Interns 23
20 16
10 7
0 2010 2011 2012 2013 2014
75 Number of Interns – 2010 to 2014 75 Interns employed as part of the Internship Programme of the Council for Geoscience
76
Gender Profile 2013-2014
Internship
77 77 Geological Field School
Initiated in 2005, based in Limpopo Now a one-year modular programme: • CGS trainees full-time for one year •Introductory short course •In the process of acquiring accreditation from MQA
78 Outreach Activities - A School visiting the National Geoscience Museum
79 35th International Geological Congress (IGC) Cape Town, South Africa 27 August – 4 September 2016
80 THANK YOU
81