Parliamentary Portfolio Committee on Mineral Resourcespmg-assets.s3-website-eu-west-1.amazonaws.com/141017cgs.pdfBSC Perspective: Market (Stakeholder/Customer) Focus Measure Baseline

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

Chief Executive Officer &

Executive Management

3

Minister

Board

GOVERNANCE & OPERATIONAL REPORTING

Department of Mineral Resources

SCIENTIFIC RESEARCH REPORTING

Department of Science and Technology

Private and public sector representatives

Prof. P E Ngoepe

Chairperson of the

Board University of

Limpopo

Mr M W Kota

CEO

Council for Geoscience

Mr B A Gerryts

Department of Science

and Technology

The Board of the Council for Geoscience

Prof. M A Hermanus

Council for Scientific

and Industrial

Research

Mr M Mabuza

Department of Mineral

Resources

Dr H Mathe

Tranter Resources

(Pty) Limited

Dr J E McGill

Council for Scientific

and Industrial

Research

Ms K R Mthimunye

Bluewaves

Consulting Services

Dr M Mayekiso

Department of

Environmental Affairs

Mr M P Nepfumbada

Department of Water

Affairs

Ms S Ngxongo

Department of Human

Settlements

Mr M Riba

Department of Rural Development and

Land Reform 4

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

Measure Baseline

2012/13

Target

2013/14

Performance

2013/14

Annual Technical

Programme

performance index

91.58% 85% 96,83%

% satisfied

customers 88,4% 85% 90,6%

No. of geoscience

maps, map

explanations and

related

manuscripts

published in-

house

34

16

19

9

Corporate Performance (continue)


Measure Baseline

2012/13

Target

2013/14

Performance

2013/14

# of rural

development

project reports

completed

29 12 29

# of Regional and

African

Development

Project reports

completed

20 25 16

# of Environment

related project

reports completed

21 7 23

10


Measure Baseline

2012/13

Target

2013/14

Performance

2013/14

Number of seismic

stations installed 2 10 5

Articles published

in the popular

press

7 2 3

Articles published

in industry

publications

5 4 1


11

BSC Perspective: Economic (Financial) Growth

Measure Baseline

2012/13

Target

2013/14

Performance

2013/14

Total Revenue R289,9m R348m R314,3m

Contract Revenue R86,5 m R79,8m R40,5m


12



Measure Baseline

2012/13

Target

2013/14

Performance

2013/14

Ratio of External

Revenue to Total

Revenue

36,11% 23,8% 20,34%

# of large tenders

and proposals

submitted (>R1m)

15 24 24

Tender success

rate # 40% 10% 20,83%

13



Measure Baseline

2012/13

Target

2013/14

Performance

2013/14

Ratio of overhead

costs to total cost

(%)

56,8% 60% 53,3%

Ratio of personnel

costs to total

costs

58,9% 59% 51,27%

14


BSC Perspective: Effective Systems (Organizational)

Measure Baseline

2012/13

Target

2013/14

Performance

2013/14

Preferential

(BEE/HDI)

procurement as %

total procurement

34% 40% 18,03%

# of audit

qualifications 0 0 0

# of policies

written and/or

reviewed

New measure 5 3

15


BSC Perspective: World Class People (Learning and Growth)

Measure Baseline

2012/13

Target

2013/14

Performance

2013/14

Net staff turnover 12,3% 0% -2,88%

# of staff funded

for MSc and PhD

degrees

46 35 42

# of papers and

articles published 115 70 145

16



Measure Baseline

2012/13

Target

2013/14

Performance

2013/14

# of projects with

external

collaborators

45 50 50

# of strategic

science

partnerships

33 20 29

17



Measure Baseline

2012/13

Target

2013/14

Performance

2013/14

Scientists as a %

of total staff 41,12% 45% 35,53%

% of scientific

staff wit PhD and

MSc degrees

48,92% 57% 47,22%

% satisfied

protégées 62% 60% Project stopped

18


BSC Perspective: World Class People

Measure Baseline

2012/13

Target

2013/14

Performance

2013/14

EE Statistics

(Consolidated)

(W:B)

31:69 34:66 31:69

EE Statistics

(Gender) (M:F) 59:41 55:45 56:44

% 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

• 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).

• To understand the extractability of uranium

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)

Ms Valerie Nxumalo

(PhD candidate)

CGS PhD and MSc Studies in the Springbok Flats Coalfield

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)

oReport 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

• 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.

Geological Storage of Carbon Dioxide

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

3872(65%)

2128(35%)

D&O Mines (Visited vs still to be visited) 2013/14

Status of the visited sites

152 (7%) 130 (6%)

217 (10%)

887 (42%)

335 (16%)

407 (19%)

Ranking status of all visited D&O mines 2013/14

High Priority

Moderate Priority

Low Priority

No rehabilitation appearsnecessary

Operational/Owned

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

56

Finance

56

57

Actuals and Budgets for the Period 2013/14 to 2015/16

57

ACTUALS AND BUDGETS FOR THE PERIOD 2013/14 TO 2015/16

INCOME (RANDS) 2013/14

Audited Actual

x 1000

2013/14

Budget

x 1000

2014/15

Budget

x 1000

2015/16

Budget

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

58

Total Asset Acquisitions

58

R 1

6 7

60

R 1

6 8

33

R 1

5 3

44

R 3

1 2

33

R 3

0 2

12

R 3

1 3

22

R 2

015

R 9

776

R 2

1 2

23

R 1

9 7

41

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

200

4/0

5

200

5/0

6

200

6/0

7

200

7/0

8

200

8/0

9

200

9/1

0

201

0/1

1

201

1/1

2

201

2/1

3

201

3/1

4

59

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

Financial management and audit

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

61

ITEM 2013/14 R

2014/15 R

2015/16 R

2016/17 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 Mines Project

20m 20m 20.9m 21.9m

Additional Funding (MTEF proposals) - Stimulation of

investment in the Mineral Sector

50m

65m

68m

71.1m

- Building & infrastructure (AC)

20m 25m 26.1m 27.3m

Total Government Grant 271.2m 287.8m 309.1m 336.1m

Ring-fenced Funds

61

62

PROJECTS 2015/16 2016/17 2017/18 TOTAL

OPTION 1:

HOSTING THE 35th INTERNATIONAL

GEOLOGICAL CONGRESS IN SOUTH

AFRICA IN 2016

R10m

R10m

-

R20m

OPTION 2:

IMPLEMENTATION OF THE

GEOSCIENCE AMENDMENT ACT

R25.4m

R38.8m

R50. 6m

R114.8m

OPTION 3:

RESOURCING SOUTH AFRICA TO

SECURE FUTURE MINERAL-, WATER-

AND ENERGY RESOURCES

R247m R261. 8m R277. 5m R786.3m

OPTION 4:

CREATING A COUNCIL FOR

GEOSCIENCE COMPETENCY TO

PERFORM CERTAIN FUNCTIONS TO BE

TRANSFERRED FROM THE

PETROLEUM AGENCY OF SOUTH

AFRICA

R32.5

R84.3m

R39.1m R155. 9m

OPTION 5:

EXPLORING THE UNKNOWNS OF

HYDRAULIC FRACTURING

R22m

R39.4m

R24.5m R85.9m

New MTEF Proposals

62

63

PROJECTS 2015/16 2016/17 2017/18 TOTAL

OPTION 6:

AGGREGATE QUALITY ASSESMENT

FOR NATIONAL INFRASTRUCTURE

DEVELOPMENT IN SOUTH AFTRICA

REGIONAL CASE STUDY OF

DURBAN,FREESTATE AND GAUTENG

CORRIDOR.

R10.7m

R9m

R10.6m-

R30.3m

OPTION 7:

BENEFICIATION OF MINERAL WEALTH

IN SOUTH AFRICA ( RESOURCEFUL

WASTE )

R13m

R16m

R15m

R44m

OPTION 3:

INVESTIGATING RISK ASSOCIATED

WITH SINKHOLE FORMATION IN AREAS

UNDERLAIN BY DOLOMITE IN SOUTH

AFRICA.

R6.7m R100.6m R117.7m R225m

TOTAL R376.3M R559.9M R535M R1 471.2M

New MTEF Proposals

63

64

Human Capital

64

Our Employees

65

66

• 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

Human Resources

66

67 Staff Profile as at 31 March 2014

59%

4%2%

29%

6%

0%

10%

20%

30%

40%

50%

60%

Africans Coloured Indian White FN

Race

Overall Demographic Profile by Race

67

68 Period – 2010 to 2014

53%

39%

6%

2%

54%

38%

7%

1%

61%

31%

7%

1%

62%

30%

6%

1%

65%

29%

5%

1%0%

10%

20%

30%

40%

50%

60%

70%

2010 2011 2012 2013 2014

Black

White

Staff Profile by Race

68

69

Period – 2010 to 2014

55%

38%

6%

1%

54%

38%

7%

1%

53%

39%

7%

1%

53%

40%

6%

1%

52%

42%

5%

1%0%

10%

20%

30%

40%

50%

60%

2010 2011 2012 2013 2014

Male

Female

Staff Profile by Gender

69

Female Scientists in the CGS

71 Staff Profile as at 31 March 2014

76%

0%

6%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Africans Coloured Indian White

Race

Demographic Composition of Bursars by Race

71

72

Period - 2010 to 2014

45%

55% 55%

45%

37%

63% 62%

38%

59%

41%

0%

10%

20%

30%

40%

50%

60%

70%

2010 2011 2012 2013 2014

Male

Female

Demographic Composition of Bursars by Gender

72

73

Number of Bursars - 2010 to 2014

29

22

8

1617

0

5

10

15

20

25

30

2010 2011 2012 2013 2014

No. Bursars

Bursary Intake Analysis

73

74

Budget – 2010 to 2014

2600000

1200000 1200000

1900000

2090000

0

500000

1000000

1500000

2000000

2500000

3000000

2010 2011 2012 2013 2014

Budget

Budget: Fulltime Bursars

74

75

Number of Interns – 2010 to 2014

7

16

23

40

56

0

10

20

30

40

50

60

2010 2011 2012 2013 2014

No. of Interns

Internship Programme

75

Interns employed as part of the Internship Programme of the Council for Geoscience

76

77

Gender Profile 2013-2014 Internship

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

Documents

Parliamentary Portfolio Committee on Mineral Resourcespmg-assets.s3-website-eu-west-1.amazonaws.com/141017cgs.pdfBSC Perspective: Market (Stakeholder/Customer) Focus Measure Baseline