Minerals Research Institute of Western Australia Annual Report 2015 / 2016 Contents Letter of Transmittal ............................................................................................................................... 3 Overview ................................................................................................................................................. 4 Executive Summary ............................................................................................................................. 4 Operational Structure ......................................................................................................................... 5 Functions .................................................................................................................................................................... 5 Governance and Management Structure ....................................................................................................... 6 Performance Management Framework ............................................................................................. 8 Objective ..................................................................................................................................................................... 8 Key Performance Indicators ............................................................................................................................... 9 Relation to State Science Policy ........................................................................................................................ 9 Research Priority Plan .......................................................................................................................................... 9 Agency Performance ............................................................................................................................. 11 Chair’s Report ................................................................................................................................... 11 Operations Report ............................................................................................................................ 13 Research investments ......................................................................................................................................... 14 MRIWA Strategy .................................................................................................................................................... 15 Finances .................................................................................................................................................................... 16 MRIWA Outcome-Based Management Structure: Key Performance Indicators ........................ 17 Grant Audit .............................................................................................................................................................. 18 Economic Impact Assessment ......................................................................................................................... 18 Other Functions ..................................................................................................................................................... 19 Administration ....................................................................................................................................................... 20 Research ............................................................................................................................................ 21 Advisory Committee Chair’s Report .............................................................................................................. 21 Research Project Investments ......................................................................................................................... 22 Research Projects in Progress ......................................................................................................................... 28 Research Reports Finalised .............................................................................................................................. 29 MRIWA Scholarship Program ............................................................................................................ 31 MRIWA’s Partnerships ...................................................................................................................... 34 Research Partners ................................................................................................................................................ 36 Company Partners ................................................................................................................................................ 36 Significant Issues Impacting the Agency ........................................................................................... 37 Audit and Risk Committee ................................................................................................................ 38 Disclosures and Legal Compliance ........................................................................................................ 39 Financial Statements ......................................................................................................................... 39 Certification of Financial Statements ............................................................................................................ 39 1 Opinion of the Auditor General ....................................................................................................................... 40 Statement of Comprehensive Income .......................................................................................................... 43 Statement of Financial Position ...................................................................................................................... 44 Statement of Changes in Equity ...................................................................................................................... 45 Statement of Cash Flow ...................................................................................................................................... 46 Notes to and forming part of the Financial Statements ........................................................................ 47 For the year ended 30 June 2016 ................................................................................................................... 47 Certification of Key Performance Indicators ............................................................................................. 74 Key Performance Indicators for the year ended 30 June 2016 ......................................................... 75 Outcomes Based Management ........................................................................................................................ 75 Reason for new OBM for MRIWA ................................................................................................................... 75 Desired Outcomes and Key Effectiveness Indicator ............................................................................... 75 Services and Key Efficiency Indicator .......................................................................................................... 76 Ministerial Directives .......................................................................................................................................... 78 Governance Disclosures ..................................................................................................................................... 78 Board and Committee Remuneration ........................................................................................................... 78 Other Legal Requirements ................................................................................................................................ 80 Legislation Impacting on the Institute's Activities .................................................................................. 81 Annual Estimates 2016/17 ............................................................................................................................... 82 2 Letter of Transmittal Hon. Sean L’Estrange Minister for Mines and Petroleum; Small Business 7th Floor Dumas House 2 Havelock Street WEST PERTH WA 6005 Dear Minister, I am pleased to submit the Annual Report of the Minerals Research Institute of Western Australia (MRIWA) for the period 1 July 2015 to 30 June 2016, for your information and presentation to Parliament. MRIWA's objective is to promote research for the development of the minerals industries in this State. The Board is satisfied with the performance of the Minerals Research Institute of Western Australia in achieving its objective. On behalf of the MRIWA Board, I acknowledge the valuable support given to the Institute during the reporting period by your office, by the Department of Mines and Petroleum and by the members of the MRIWA advisory committees. Dr Peter Lilly CHAIRMAN BOARD OF DIRECTORS Date: 1 September, 2016 3 Overview Executive Summary The Minerals Research Institute of Western Australia has now completed the second full year of operation since commencing on 1 February 2014, after the Minerals Research Institute of Western Australia Bill 2013 received royal assent on 18 December 2013. The Minerals Research Institute