MINTEK ANNUAL REPORT – 2008

Human Capital Development &

Management

"To achieve a good commercial result over time, Mintek depends on

competent and motivated employees."

Mr Muzi Ngcobo,Manager: Human

Resources and Training.

The mineral resources boom has resulted in a world-wide skills shortage throughout the extractive industries and allied sectors. Attracting, developing, and retaining skilled technical personnel has become Mintek’s most critical challenge – this is reflected in the total staff turnover, which this year reached 25 per cent, far higher than the figure of 20 per cent for the previous reporting period. Overcoming this requires a comprehensive and ongoing approach at all levels to solve the challenges of the future, and Mintek Management is currently working on approaches to ameliorate these challenges.

MINTEK ANNUAL REPORT – 2008

Mintek conducted a survey, through 21st Century, to identify how its remuneration packages track those of the open market. Owing to the unique nature of its business, there is no single sector of comparison, but rather a range of sectors that Mintek has to compete with, including: mining, industrial, finance, and scientific R&D. Analysis showed that Mintek’s median packages are in line with the market at the levels up to junior management and professionals, but lag the market at management and executive grades.

During 2007/08, two "climate surveys" of staff were conducted – one by the National Productivity Institute

and the other being Deloitte’s nationwide Best Company to Work For survey, in which Mintek

participated for the first time as a virtual participant. The results of the two surveys were in broad agreement,

with positive scores in the dimensions of management style, corporate culture, and job satisfaction, but negative scores in the areas of remuneration, communication, and leadership. These two exercises have enabled Mintek to identify its strengths and weaknesses, and to take

corrective measures.

MINTEK ANNUAL REPORT – 2008

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MINTEK ANNUAL REPORT – 2008

Top left: A team building exercise at the Mintek Imbizo.

Middle: Celebrating South Africa’s National Heritage Day.

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A new organisational development unit, headed by a high-level specialist has been formed, and the Human Resources division is working closely with Mintek’s other divisions to ameliorate the areas of concern.

An improved performance management system, which is better aligned with the Compact and the corporate and strategic business unit plans, will be implemented from the beginning of financial 2008. The first assessment using the new system will be carried out in the last quarter of 2008.

From April 2008 changes in the organisational structure will be made that will include separating the reporting lines of the research-intensive divisions and the more commercially-oriented divisions. This is designed to bring about increased focus towards the attainment of Mintek’s strategic objectives, as well as a more effective management function.

Employment equity

Although Mintek has exceeded its Board-designated target of 77 per cent Designated Group (DG) representation among the total permanent workforce, DG individuals remain under-

represented at the technical, professional, and managerial levels. This is due to the general shortage of DG engineers and scientists (those trained by Mintek are frequently head-hunted) and

the very diverse market for the specialised skills that Mintek requires, which offers remuneration benefits that Mintek cannot match.

Procurement policy

Mintek’s procurement spending with BEE-accredited suppliers in 2007/08 amounted to 17.6 per cent of the total, compared with the target of 22 per cent.

SAP and Human Resources

The SAP system was upgraded in December 2007 from MySAP-All-in-one (version 4.7) to the latest SAP release version, ECC6.

Wellness

ICAS South Africa provides Employee Assistance Programme services to Mintek as a partner in behavioural risk management, and provides counselling and advisory services on matters such as financial management, relationships, and legal issues. Only about 3 per cent of employees

Left: HIV peer-counselling training session.

MINTEK ANNUAL REPORT – 2008

Top right: Learners view a demonstration at MINQUIZTM, Mintek.

Middle: NSTF Award winner Robert Tshikhudo (right) with Minister of

Science and Technology Dr Mosibudi Mangena.

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reported difficulties that appear to have a significant impact on their work performance, compared with 5 per cent at other companies.A "Wellness Week" that was held during September 2007 was well attended by staff at all levels. All Mintek’s medical aid providers participated, and routine health screenings were offered by Mintek’s nurses and locums. ICAS offered advice on stress and financial issues.

HIV/AIDS

Mintek maintains a high level of AIDS education by means of outreach programmes, awareness events, and a dedicated team of peer educators and peer counsellors. All employees are encouraged to make use of the voluntary counselling and testing services that are provided through the Mintek Medical Clinic, in association with the Randburg Municipality.

An HIV/AIDS prevalence survey was conducted in July 2007 by AIDS Management and Support of Johannesburg. The survey indicated that, among permanent staff, the level of HIV prevalence was 8.8 per cent, compared with 7.8 per cent in the last survey in 2004. Although this is not a statistically significant change, the level of prevalence may be rising, and preventative and intervention measures are being put in place to guard against a possible rise in prevalence in the future. A Knowledge, Attitudes and Practices (KAP) survey linked to the prevalence survey will be carried out in mid-2008.

Mintek also continues to support the Itireleng/Ikageng HIV/AIDS Ministry through the quarterly collection of clothing and non-perishable foodstuffs.

AcAdemic Support And trAiningBursary programme

Mintek’s bursary programme is the nexus of Mintek’s skills development activities, and all Science, Technology, Engineering and Mathematics (STEM) promotion activities and Human Capital Development (HCD) activities either lead to or result from the bursary programme. The aim of the bursary programme is to ensure a steady supply of trained and highly skilled technical people to meet a major portion of Mintek’s operational, research and development manpower intake needs, and also to provide appropriately-skilled graduates to the broader South African minerals and metallurgy sector.

Undergraduate bursars are required to undertake vacation work for seven weeks at the end of the academic year, and Mintek hosted 26 of its bursars in 2007 for "vac work". Students are exposed to real-world projects at Mintek’s campus in Randburg under the supervision of experienced staff,

and also visit industrial projects.The bursary programme, which

is financed through state funding, supported 39 undergraduate and 41 postgraduate students in 2007.

The bursary programme was restructured in late 2007 to bring the bursary values in line with actual Higher Education costs, particularly at postgraduate level. This change also aims to stimulate interest in postgraduate studies.

The bursary pipeline numbers will be ramped up in 2008.

In-Service Training programme

Students studying towards their national diploma are required to complete one year of compulsory practical experience at an industrial host in order to graduate. In-service or practical training formally integrates a student’s academic studies with relevant work experience at Mintek. Mintek supported 42 trainees in 2007, mostly in the disciplines of chemical and metallurgical engineering.

The programme will be streamlined in 2008, with Mintek partnering with the Southern

Right: Mintek vacation students visit a platinum mine.

MINTEK ANNUAL REPORT – 2008

Top left: "Job shadowing" in Mintek’s biomedical laboratory.

Middle: Installing the detectors in a new X-ray fluorescent instrument.

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African Society for Co-operative Education (SASCE). The SASCE is an association of co-operative education departments at comprehensive universities and universities of technology (former technikons). These departments assist the university’s students in finding learnerships, internships, and practical training. Partnering with SASCE will streamline the intake of students into Mintek’s in-service training programme, and ensure that only eligible and top-quality students with a good fit into the organisation are placed at Mintek.

Internship/Learnership programmes

Internships at Mintek offer graduates the opportunity of

gaining relevant experience within a science council environment. Mintek benefits by offering permanent employment to outstanding interns at the end of their training period, where possible.

The Department of Science and Technology (DST) funds

"mintek has been actively developing its human capital in order to be able to

compete effectively in the development

of its intellectual property."

two initiatives at Mintek. The Research Professional Development Programme (RPDP) aims to address the accelerated development of a group of scientists and research professionals at postgraduate level, specifically those who are poised to contribute to South Africa’s innovation platforms as identified in the National Research and Development Strategy. Mintek is currently hosting four Fellows in the areas of nanotechnology (two projects), HIV inhibition, and subsistence farming. There are plans to expand the programme in 2008, as well as to increase the number of participating Mintek divisions.

The DST/National Research Foundation (NRF) Internship programme, which involved one BSc Geology Honours graduate in 2007, aims to provide valuable work experience, accelerated and practical learning opportunities at Mintek to the graduate over the course of twelve months in order to build essential workplace competencies.

In the past, Mintek participated to a much greater extent in this programme, but unfortunately in late 2007 events led to the reduction of the intake from the initial five positions to only one. It is hoped that the intake will be increased in the next programme cycle (2009).

Mintek is taking part in the Mining Qualification Authority (MQA) Graduate Development Programme (GDP) in 2008 via the placement of seven graduates (a combination of electrical, electro-mechanical, and mechanical engineers) in Mintek’s Engineering Support Division. This cycle of the GDP internship programme is supported jointly by the National Skills Fund and the MQA, and runs for a period of two years.

The GDP is aimed at increasing the number of technical graduates with the necessary training and qualifications required for professional employment in the

Left: Vacation students prepare to go underground during a visit to a platinum mine.

MINTEK ANNUAL REPORT – 2008

Mining and Minerals Sector. Mintek will continue to participate in the GDP in future as a means to address its skills needs and to provide a much-needed training ground for unemployed Science and Engineering graduates.

Technology and Human Resources Industry Programme (THRIP)

Mintek participates in the Technology and Human Resources Industry Programme (THRIP), a programme of the DTI administered by the NRF. The programme aims to promote increased interaction and diffusion of technology between industry, higher education institutions and science, engineering and technology institutions, and to provide an enhanced educational experience through customised participation by students in collaborative projects. Mintek uses the programme to conduct commercially-focused research and development while at the same time exposing students to industry-relevant activities. Mintek had two THRIP projects in 2007, in the areas of bioleaching of silicates and the development of gold technology.

Mintek’s participation in THRIP has reduced over the years, because the funding ratios have become less favourable for participants who do

not partner with SMMEs and only partner with large entities. In the minerals and metallurgy sector, it is very difficult to find SMMEs who are willing to participate in, and also contribute financially to, a research programme. Nevertheless, Mintek will continue to participate in THRIP for as long as research programmes that involve students directly are undertaken with industry.

Girl-learner programmes

Mintek has established

relationships with the education departments of the Western Cape and the Limpopo provincial governments, whereby 25-30 grade 11 and 12 girl learners from each province are provided with an opportunity to undertake a limited period of job shadowing at Mintek during the school holidays. The programme encourages black girl learners to take up studies in the area of minerals and metallurgy, thereby addressing transformation in the sector. The top performers are provided with Mintek bursaries, and six girl learners, as recommended by the MEC’s office of the Western Cape Education Department, received bursaries in 2008.

The programme will be expanded in 2008 to the Western Cape, where the focus will be on the coloured community, and a relationship will be established with the MEC’s office of the Western Cape Education Department in this regard.

Mintek also hosted a group of girl learners from schools in the greater Johannesburg area for a tour of Mintek and its facilities, as part of the national "bring-a-girl-child-to-work" day in May 2007.

Top right: Demonstrating Science and Technology to keen learners, at

Mintek.

Middle: Girl learners in the Fire Assay laboratory.

Mintek Staff Demographics

Designatedgroup

Non-designatedgroup

200

180

160

140

120

100

80

60

40

20

0

415

131

Total = 546

Right: CEO, Mr Abiel Mngomezulu (right), chats to some of Mintek’s

bursars.

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MINTEK ANNUAL REPORT – 2008

Top left: St Barnabas College, winners of the Gold Category in the MINQUIZ 2008 Gauteng regional competition.

Middle: "Hands on" display of Mineralogy techniques.

Adopt-a-School Programme

Mintek has adopted the Mathematics and Science departments of three under-resourced schools in greater Johannesburg, specifically in the areas of Ferndale, Diepsloot and Soweto. The aim of the intervention is to improve the level of teaching of Mathematics and Science at the schools.

In 2007, Mintek entered into an agreement with Mindset Learn, an operational unit of Mindset Network, whereby Mintek would sponsor the installation of a Mindset Datacast Solution in the schools. Mindset Network is a non-profit organisation that develops and delivers quality educational resources through appropriate media to underdeveloped and under-resourced schools, while Mindset Learn focuses on learners and educators in the FET band, with a focus on Mathematics, Physical Science and English. The Datacast Solution is an on-demand multimedia learner-support and educator-facilitated resource package, delivered by satellite broadcast technology into the classroom or laboratory.

However, due to severe operational constraints (short-

staffing) in the latter half of 2007, the package was not rolled out to the schools. The installation is now scheduled to take place in mid-2008, and due to budget constraints, this will unfortunately be rolled out to only two of the schools during the financial year. Mintek will investigate alternative interventions for the third school.

Science, Technology, Engineering & Mathematics (STEM) Promotion

Mintek participates regularly in a broad suite of STEM promotion activities throughout the year, including learner-focused exhibitions like SciFest Africa, Sasol TechnoX, the National Science Week, INSITE, Science Unlimited, university open days and in-bound tours of learners in the FET (Further Education and Training) band to Mintek. The aims of STEM promotion activities are to generate an excitement and interest in Mathematics and Science amongst learners so that they take these subjects at school (and excel at them), then study towards a career in Science, Engineering and Technology at the Higher Education level, and finally take up a career in these fields.

Minquiz™ is Mintek’s primary annual STEM promotion event and

coincides with the National Science Week.

Minquiz™

Minquiz has been running since 1988, and is regarded as South Africa’s premier annual national Science competition for Grade 12 learners. The aims are to encourage interest in careers in Science, Engineering and Technology, particularly (but not exclusively) in minerals and metallurgy, and to promote an awareness of the importance of minerals and metallurgy to South Africa. The competition is entertaining for the participating learners, while at the same time conveying the importance of Mathematics and Science as foundational subjects to a career in the minerals and metallurgy industries.

Approximately 350 schools from all of South Africa’s nine provinces took part in Minquiz 2007, which was held at provincial semi-final and national final levels.

In 2007 the prestige of the national final competition was boosted through a slight format change, professional staging, and more exciting team-building events. Importantly, the questions were developed by an education professional for the first time, which ensured that they were aligned with the school syllabus.

Mintek has begun talks with the Department of Education at a national and provincial level to broaden the participation of schools in Minquiz by establishing working partnerships. Already these talks have resulted in a significant increase in the registration figures for the provincial finals as a result of the Department of Education’s efforts. Talks at the national level have resulted in the department making schools aware of Minquiz via its Thuthong Education Portal and also via its network of provincial Mathematics, Science and Technology subject advisors.

Left: Intense concentration during the MINQUIZ written competition.

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