Council for Geoscience Strategy

Presentation to the Parliamentary Portfolio Committee on Mineral Resources

12 June 2013

Structure

• Five-year goals

• Vision, Mission and Values

• Mandate

• Strategy

• Budget

• Strategic performance objectives and targets

• Key programmes and projects

• Human capital

Goals

Five-year Goals

Strategic outcome-oriented goals of the CGS

• Employees view the CGS as an attractive career opportunity

• The CGS is responsive to the developmental needs of the country and is recognized among global leaders in the geological field because of its commitment to excellence

• The CGS is a financially viable and structurally robust organization catering for all stakeholders and utilizing multiple revenue streams

Vision, Mission and Values

Vision

Leading Earth-Science Solutions

Mission

To provide expert earth-science information and services to improve the management of natural resources and the environment for a better quality of life for all

Vision & Mission

The Values

• Innovate and create through teamwork

• Excel through quality and performance

• Value diversity through trust and respect

• Invest in our people

Mandate

The Mandate of the CGS

The Geoscience Act, Act 100 of 1993 • 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 • CGS also aligns its strategy and activities with

– Government programme of action – national imperatives – DMR’s strategy (Mining Growth strategy) – DST’s national research and development strategy

Geoscience Amendment Act (Act 16 of 2010)

• Changes and additions to the scope of the mandate of the CGS

Custodianship of geoscientific information

National advisory authority

Prospecting research and exploration (reconnaissance)

Additional Mandate from Amendment Act (still excluded)

The AA (Act 16 of 2010) was promulgated on 1 July 2012, subject to the exclusion of the following Articles:

• Article 4(c): serve as the national custodian of geotechnical information, prospecting information and all other geoscientific information relating to the earth, the marine environment and geomagnetic space, all of which shall be lodged with the Council;

• Article 4(eA): review and evaluate all geotechnical reports in respect of geohazards that may affect infrastructure and development at prescribed tariffs;

• Article 4(f): develop and maintain the National Geoscientific Library, the National Geoscientific Information Centre, the National Borehole Core Depository, the National Geophysical and Geochemical Test Sites, the National Geoscience Museum, the National Seismological Network and the National Geoscience Analytical Facility;

Amendment Act

• Article 5(b): by the addition after subsection (2) of the following subsection: “(3) All geotechnical reports pertaining to infrastructure and development shall be submitted to the Council in the prescribed manner.”;

• Article 8: Appointment of geotechnical appeal committee.

Other mandates

• Medium Term Strategic Framework for 2009 to 2014 - Government

• National System of Innovation - Government

• Stakeholders’ declaration on Strategy for the Sustainable Growth and meaningful Transformation of South Africa’s Mining Industry - DMR

• Grand Challenges - DST

Expenditure $$

Exploration area km2

feasibledeposit

Time >>>

Pre

co

mp

eti

tiv

e

pu

blic

Geo

-scie

nce

data

Inv

estm

en

t

pro

mo

tio

n

Pro

sp

ecti

ve

terr

ain

Pri

ori

ty

are

as

Exp

lora

tio

n

targ

ets

GSOs / public sector

(developing economies, e.g. RSA) Mining Industry / private sector

GSOs

(US, Can, Aus)Mining Industry / private sector

Oil and Gas Companies / private sectorOil Ministry

Public- versus Private-Sector Funding

Expectations gap

Strategy

Strategic planning process

• Board strategic planning workshop - 12 to 13 May 2011

• CGS management strategic planning workshop 23 to 24 June 2011

• Board approval of CGS Strategic and Performance Plans – 17 November 2011

• Ministerial approval – 1 March 2012

Strategy

Imperatives

• Speeding up economic growth

• Rural development and poverty eradication

• Increasing innovation

• Skills development

• Expediting transformation

• Development of Africa

• Addressing stakeholder needs and regulatory requirements

Strategy

CGS Strategic Objectives

• To address stakeholder needs

• To effectively promote the CGS and disseminate strategic information to the public

• To develop and implement effective policies and procedures

• To drive preferential procurement

CGS Strategic Objectives (cont.)

• To attract and retain a skilled workforce

• To enhance present levels of excellence

• To build a positive organizational culture

• To reflect and embrace South Africa’s diversity

• To generate revenue

• To manage overhead efficiency

Strategy

Strategy

Key Challenges

• Insufficient resources

• Ageing infrastructure

• Continuing with Transformation

• Refocusing and aligning the organization to address SA’s developmental challenges

Budget

Budgets for the period 2012/13 to 2015/16

INCOME (RANDS) 2012/13

x 1000

2013/14

x 1000

2014/15

x 1000

2015/16

x 1000

Government grant 223 006 265 268 297 908 319 027

Sales and contracts 72 600 79 860 87 846 96 630

Sundry income 2 756 2 894 3 039 3 191

TOTAL INCOME 298 362 348 022 388 793 418 848

EXPENDITURE

Personnel costs 147 360 160 289 172 787 186 148

Bursaries 1 900 2 090 2 300 2 530

Commercial project costs 32 670 35 937 39 531 43 484

Overheads and operating costs 105 432 128 206 147 175 147 536

SUBTOTAL 287 362 326 522 361 793 379 698

CAPITAL EXPENDITURE

Equipment 1 000 1 500 2 000 10 000

Land and buildings 10 000 20 000 25 000 29 150

SUBTOTAL 11 000 21 500 27 000 39 150

TOTAL EXPENDITURE 298 362 348 022 388 793 418 848

Surplus (Loss) -- --

Analysis of Government grant allocation for 2012/13 to 2015/16

ITEM 2012/13

R

2013/14

R

2014/15

R

2015/16

R

Baseline allocation 144.6m 155.5m 166.9m 176m

Water Ingress project 18.4m 19.8m 21m 22m

Total Government

Grant as at January

2013

163m

175.3m

187.9m

198m

Derelict and Ownerless

Mines Project

20m 20m 20m 21m

Additional Funding

(MTEF proposals)

- Stimulation of investment in the Mineral Sector

30m

50m

65m

74m

- Building & Laboratory infrastructure

10m 20m 25m 26m

TOTAL GOVERNMENT

GRANT

223m 265.3m 297.9m 319m

Strategic Performance Targets and Objectives

Economic / Financial Growth

Key Objectives Measures Target 2013/14 Target 2014/15 Target 2015/16

To generate

Revenue

Total revenue

(Rands) R348m R388,8m R418,9m

Contract revenue

(Rands) R79,9m R87,9m R96,6m

Ratio of external

revenue to total

revenue

23,8% 23,4% 23,8%

Number of large

tenders submitted

(>R1m)

24 24 24

Tender success rate 10% 10% 15%

To manage

overhead

efficiency

Ratio of overheads

to total cost 60% 60% 60%

Ratio of personnel

cost to total cost 59% 59% 55%

Stake Holder / Customer Perspective

Key Objectives Measures Target

2013/14

Target

2014/15

Target 2015/16

To contribute

towards South

Africa’s

economic

growth and

serve

stakeholders

No. of Geoscience Maps and

Publications published 16 18 20

Customer satisfaction level 85% 85% 85%

No. of Rural Development Project

reports completed 12 14 14

No. of Regional and African

Development Project reports

completed

25 27 28

No. of Environment-Related Projects

reports completed 7 8 9

Annual Technical Programme

performance index 85% 85% 85%

To integrate the Mine Seismic Network

into National Network

Number of stations installed

10 10 10

To promote the

CGS and

disseminate

information

Articles published in the popular press 2 2 2

Articles published in industry

publications 4 4 4

Effective Systems Perspective

Key Objectives Measures Target

2013/14

Target

2014/15

Target

2015/16

To develop and

implement

effective polices

and procedures

Number of audit

qualifications 0 0 0

Number of policies

written and/or

reviewed

5 7 10

To drive

Preferential

procurement

Preferential

procurement as a %

of total procurement

40% 40% 40%

World-class People Perspective

Key

Objectives Measures

Target

2013/14

Target

2014/15

Target

2015/16

To attract and

retain a

skilled

workforce

Nett staff turnover 0% 0% 0%

No. of staff funded

for MSc and PhD degrees 35 35 40

Proportion of scientists to total staff

45% 50% 50%

% of scientific staff with PhD and MSc degrees

57% 60% 60%

% Protégée satisfaction level 60% 60% 60%

To enhance

present levels

of excellence

No. of papers and articles

published 70 70 75

No. of projects with external

collaborators 50 55 60

No. of strategic science

partnerships 20 22 25

World-class People Perspective (cont.)

Key Objectives Measures Target 2013/14 Target 2014/15 Target 2015/16

To build positive

organisational

culture

Staff satisfaction

level 65% 65% 65%

To reflect and

embrace RSA

diversity

EE Stats

(Consolidated)

W:B ratio

34:66 32:68 30:70

EE Stats

(Gender) (M:F) 54:46 53:47 52:48

Key Programmes and Projects

Business Model : Seven Scientific Thrusts

Engineering

Geoscience

Environmental

Geoscience

Water /

Geohydrology

Geoscience Mapping

•Geological

•Geochemical

•Geophysical

•Remote Sensing

Mineral Resources

Development

Energy

Information

and Education

1:250 000-scale Geological Mapping

MAPS PUBLISHEDPolokwane

Pretoria

Johannesburg

Mafikeng

Kimberley

Bloemfontein

Durban

Port Elizabeth

Cape Town

INDEX MAP:- PROGRESS OF THE MAPPING ANDPUBLICATION OF 1:250 000-SCALE GEOLOGICALMAPS IN SOUTH AFRICA

REVISION MAPPINGCOMPLETED

MAP READY TO PRINT

1:50 000-scale Geological Mapping

Km

INDEX MAP:- PROGRESS OF 1:50 000-SCALE GEOLOGICAL MAPPINGIN SOUTH AFRICA

Maps published

Mapping in progress

Mapping completed

1:250 000-scale Metallogenic Mapping

Map compilation planned for2012/2013

Upington

Cape Town

Pretoria

Polokwane

Durban

Port Elizabeth

INDEX MAP:- 1:250 000-SCALE METALLOGENICMAPPING PROGRAMME FOR SOUTH AFRICA

Map compilation completed

Map published

1:50 000-scale Geotechnical Mapping

INDEX MAP:- PROGRESS OF1:50 000-SCALE GEOTECHNICALMAPPING IN SOUTH AFRICA

Maps published

Regional Geochemical Mapping

Geochemical dataavailable

Sampled

Springbok

Cape Town

Beaufort West

MafikengJohannesburg

Polokwane

INDEX MAP:- PROGRESS OF THE REGIONALGEOCHEMICAL SURVEY OF SOUTH AFRICA

High-density Airborne Geophysical Flying

Seismicity recorded by the SANSN in Southern Africa during 2012

Majority of

seismicity occurs

in the mining

regions (both

opencast and

underground)

Status of the project:

Integration of the South African National

Seismograph Network and Database with Mining

Networks as per the recommendation in chapter 1 of

the Presidential Mine Health and Safety Audit 2008

entire long-term project 1) South African National Seismograph Network (SANSN) has

been extended into the KOSH region and data is sent in real

time to the CGS,

2) The database has been established and populated by data

from the extended SANSN. MoU’s with mining companies in

place for exchange of data and integration into the database,

3) A dedicated group of seismologists is conducting research

into induced seismicity, specifically mining seismology.

Seismicity recorded by the CGS cluster networks in three mining districts

Central Basin Area

Far West Rand Area

12 stations

KOSH

25 stations 11 stations

The sensitivity of

these networks is far

better than the

national network (a

greater number of

events are recorded

and lower magnitudes

measured).

Centre of Research in Induced Seismicity (CRIS)

Consist of:

- Senior and Junior seismologists,

- Electronic Technicians and

- Seismological Analysts.

Will perform research on induced

seismology in general, but will focus on

mine seismology, such as:

- Integration of mining data with CGS

data into one database,

- Velocity models and depth estimation

for the regions for better locations,

- Provide advice on standards and

codes of practice within the mines,

- Use the database to build up a record

of how seismicity is affected after

mining and advise on mine closure

procedures.

In addition, young

scientists, electronics

technicians and

seismological analysts will

be trained in order to

expand the CGS team and

expertise into mining

seismology

Strategic Mine Water Management Project

Canalisation of the natural watercourse from Florida Lake to

Fleurhof Dam

Prevention of ingress in Central Rand

Basin

Strategic Mine Water Management Project

MONITORING OF SEISMICITY IN THE CENTRAL BASIN

PASSIVE TREAMENT TECHNOLOGIES: Princess Dam Case

SOURCE AND LIABILITY APPORTIONMENT OF POLLUTION

IDENTIFICATION OF ADDITIONAL INGRESS AREAS, ASSESSMENT AND

PRIORITISATION

OTHER ACTIVITIES IN EAST RAND BASIN

MINE WATER (AMD) RELATED GEOTECNICAL IMPACTS: Laboratory

EXPERIMENTS Of Acid Mine Drainage Attack On Engineering Materials And Structures

OTHER ACTIVITIES IN CENTRAL RAND BASIN

Project ST2012-1150 - A holistic approach towards best

management practices of AMD impacts using a catchment

approach strategy, South Africa

The Olifants River Catchment Area is

severely impacted by historical and current

gold, coal, Pt-Ni, and other mining activities.

AMD “lake” in the Witbank coalfield

Un-rehabiliated tailings deposit in Sabie gold mine

area discharging AMD into a nearby stream

Pollution atlas of the Olifants River Catchment area generated

on the basis of multidisciplinary pollution characterization –

Project ST2012-1150.

catchment-scale investigation provides a

holistic understanding of mine pollution from

source to path ways to receiving environment

19 such pollution areas have been delineated.

8 of the 19 pollution areas are within the

Witbank coalfield confirming the severity of

mining pollution in the coalfield.

The multi-disciplinary approach proved effective providing a multiple source of scientific information and integrating such multi-disciplinary scientific data.

The study provides a powerful management tool for the remediation and rehabilitation of the polluted areas which encompasses the source, the pathways and the receiving areas of pollution (source-pathways-recipient dynamics) - herein

termed as “mine pollution influence areas”.

Project ST2012-1150 - A holistic approach towards best

management practices of AMD impacts using a catchment

approach strategy, South Africa

Project Objectives: Derelict and Ownerless Mines

The objectives of the project are to:

• Update, maintain and rank the database and to improve its integration into the licensing system of the DMR.

• The database should facilitate the estimation of the contingent liability of the DMR with respect to derelict and ownerless mines.

• Rehabilitation plans must be developed and bills of quantities on identified mine sites must be developed.

• A field investigation and database ranking must be undertaken to identify priorities on an ongoing basis.

• Dangerous openings must be closed where these pose an immediate threat to human safety.

Distribution of Asbestos mines in south Africa

The Northern Cape Province has the largest number of D & O asbestos

mines (127), Limpopo (77), Mpumalanga (28), KwaZulu-Natal (9),

Gauteng (3) and North West (1). The field visit was conducted to all the 6

Provinces.

Closure of dangerous holings

CONTRACTOR LOCALITIES OF

THE

HOLINGS

NO. OF

HOLES

CLOSED

LOCAL

LABOU

RERS

CONTRACTOR S

EMPLOYEE

S

TOTAL

LABOUR

PER

SUBPROJ

ECT

EURO BLITZ 1068

CC

CULLINAN 7 12 1 13

SEFAKO/KGANTS

A JV

BRAKPAN 9 15 12 27

ELPHASH &

SKIROO JV

GIYANI 7 20 5 25

TOTAL 23 47 18 65

Stimulation of Investment in the Minerals and Energy Sectors

Global Exploration Budgets

50

Responsibilities for mineral development

Information from Survey data pool

prospective terrain

90 priority areas

16 exploration targets

Classical sector of Geological Surveys

Classical sector of mining industry

Mining industry Geological Survey (many developing countries)

Geol. Survey Mining industry (many Industrialised countries)

1 feasible deposit

Expenditure path

Exploration path

With permission:

BGR

Project schedule

• The MTEF project “Exploration and Mining Investment Stimulation in Minerals and Energy Sectors” started in the budget year 2012/13 in Tugela region in Kwazulu Natal.

Project progress (Budget Year 2012/13)

From the Total budget of R30,000,000 allocated for the Tugela (KZN) project: • R15,815258 has been or will be used for airborne TEM + magnetics and

radiometrics surveys. – Magnetics and Radioimetric Surveys have been completed

– Airborne TEM is completed.

• R6,184,742 was utilised to gathered all the available historical geological data in the follwing geological terrains: Tugela, Namaqualand, Barberton Greenstone Belt and Sabi-Pilgrim’s Rest Goldfield. – This process was completed

• R8,000,000 is to be used for airborne soil sampling in Tugela from March -September 2013.

• Around 40% of the proposed sampling has been completed.

Expected interim deliverables – Tugela (KZN) project

The deliverables of this project include:

• An integrated report accompanied by mineral prospectivity map, to be completed by March 2014

– Geophysical report – to be completed by June 2013

– Geochemical report –to be completed February 2014.

Future activities and schedule timelines – Namaqualand

Project, Northern Cape Budget Year 2013/14

• Airborne magnetics and Radiometric and geochemical surveys will be conducted in the Namaqualand region.

• The total budget is R55,000,000.

– About R35,000,000 has been estimated to be used in Airborne magnetic and radiometric surveys, and

– R20,000,000 will be used for geochemical surveys.

International Front: Key Projects

• Organisation of African Geological Surveys (SA-Secretariat; Algeria - Presidency)

• Seismotectonic map of Africa with the Commission of the Geological Map of the World

• Onegeology – Geological map of the world

• AEGOS – Develop standard data by which geoscience data can be shared across the continent

• Madagascar – geological studies

• Namibia – geological mapping

• Japan – rare-earth elements research project

• EU – sustainable mining

• Sweden – prospectivity mapping

• Tanzania – geological/geochemical mapping

Build up to 35th IGC

• 19th IGC held in Algiers in 1952 – highlight was the Mediterranean field cruise

• A number of bids were made to hold a 2nd IGC in Africa and finally won by South Africa in 2008 in Oslo with the 35th IGC to be held in Cape Town in 2016

• South Africa was chosen both for its geological superlatives and as a stepping stone for the African continent

• Bid made it clear that the IGC should be a Pan African event

• Co-operation with African Surveys and other groups is therefore essential

Organization

• Local organizing committee formed (LOC) with subcommittees responsible for various functions

• Well defined branding “Dances with Earth” established

• Section 21 company formed

• PCO appointed

• Website established – www.35igc.org

• First official function – receiving the “World Cup” of Geology at 34th IGC in Brisbane

• Full support by Government - the DMR Minister Susan Shabangu addressed the delegates at the IGC34 Closing Function

35th IGC stand

at 34th IGC Expo

Human Capital

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

39%

61%

40%

60%

43%

57%

52%

48%

53%

47%

60%

40%

59%

41%

61%

39%

64%

36%

69%

31%

0%

10%

20%

30%

40%

50%

60%

70%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Black

White

Period – 2004 to 2013

Comparative Figures Staff Profile by Race

63%

37%

63%

37%

62%

38%

57%

43%

56%

44%

60%

40%

61%

39%

61%

39%

60%

40%

59%

41%

0%

10%

20%

30%

40%

50%

60%

70%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Male

Female

Period – 2004 to 2013

Comparative Figures Staff Profile by Gender

17%

83%

22%

78%

27%

73%

40%

60%

39%

61%

48%

52%

48%

52%49%

51%53%

47%

61%

39%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Black

White

Period – 2004 to 2013: Professionals only

Comparative Figures, Professional Job Category by Race

Number of Bursars - 2004 to 2013

14

27

34

30

41

39

29

22

8

16

0

5

10

15

20

25

30

35

40

45

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

No. Bursars

.

Bursary Intake Analysis

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

Thank You