by Dr Paul Jourdan

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16 November 2005
Annual Report 2005Presentation to the Portfolio
Committee
by Dr Paul Jourdan
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Introduction
70th anniversary in 2004 Total revenue R254.9
million (2004 R204.4 million) Permanent staff of
490, of which 281 are professionals Independent
Institutional Review - confirmed Mintek is held
in very high regard both nationally and
internationally
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Vision and Mission
Our Vision To be a global leader in mineral and
metallurgical RD Our Mission To serve South
Africa by promoting technology, industrial growth
and human development

• Our Compact
• to add value to South Africa's mineral
  resources
• to expand the country's mineral technology
  industries
• to develop the minerals industries in SADC and
  throughout Africa
• to support the growth of SMMEs in the minerals
  sector
• to transform Mintek's business practices and
  staff profile

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RD highlights - gold
Project AuTEK - gold-based catalysts reach
product development stage, biomedical programme
broadened. Considerable support from NRF (THRIP)
and DST Cyanide monitoring on gold plants in
Africa. THRIP project on environmental aspects of
cyanide usage
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RD highlights - PGMs
Two industry-supported collaborative RD
projects THRIP project to investigate PGM
smelting Innovation Fund projects - platinum
superalloy coatings and jewellery
applications Testwork to support feasibility
studies for several new mining projects. Recovery
of PGMs from revert tailings
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RD highlights - ferrous metals
Smelting testwork for Shevchenko ferronickel
project (Kazakhstan) Industrial-scale trials of
low-nickel stainless steel (Innovation Fund
project) Negotiations to introduce smart
rockbolt in mining industry
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RD highlights - non-ferrous metals
Co-ordinator of bioleaching work package for the
EUs BioMinE Project (supported by DST) Heap
bioleach technology to be piloted in Iran Two
major BioPAD-funded projects Thermal magnesium
process development completed RD support for
copper-cobalt projects in Zambia and the DRC
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RD highlights - industrial minerals
Renewed interest in uranium - metallurgical
investigations for two projects in SA and one in
Namibia Evaluation of manganese ore samples from
Gabon (CVRD) Sample characterisation on
kimberlite ores
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Commercial activities
Participation in operating companies (Atoll,
Mogale Alloys and Tollsort) Business development
projects iron production (HBI, pig iron) Coega
ferronickel, electrolytic manganese dioxide and
autocatalyst recycling (new Innovation Fund
project) Process optimisation strategies in RSA
and West Africa, Latin America and Australia.
Carbon regeneration equipment in Latin America
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Partnerships and technology alliances
Links with professional bodies, other science
councils, government departments and SET
community (EU FP6, WSSD) Role in various
bilateral agreements (eg. Belarus, Chile,
India) Collaborative research with local and
international universities
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Mineral policy and sustainable development
MESU - mapping out the options for strategic
development of SADCs and continental mineral
resources (AMP) Policy support for the DME around
beneficiation initiatives and small-scale
mining Spatial Development Initiatives (with
RBDIP and Nepad) Mineral sector strategy for
Northern Cape Province RBTS - completed overview
of capital goods, technologies, products and
services supporting the mineral-based industries
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Support for small-scale mining
SSM Division provides RD, skills and access to
finance Management of Technical Reference Group
23 on behalf of the MQA More than 700 small-scale
miners trained - programmes supported by the MQA
and Department of Labour Community-based training
in glass-beadmaking, ceramics and alluvial
diamond mining
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Employment equity / Quality
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Human resources development

• Science, Engineering and Technology promotion
• MinQuiz
• Mintek Engineering Awareness Programme
• Internship training

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Bursary programme
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Financial Summary 2004/2005
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Quality, Environment Safety

• Integrated Minteks quality, environmental and
  safety systems
• ISO90012000 (quality) 2002 - 2005
• ISO140011996 (environment) 2003 - 2005
• OHSAS 18001 (safety) 2004 - 2005
• Lost-time Injury Frequency Rate of 0.95

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SAP System

• Problems
• Hardware failure of primary server
• Human error in doing primary backups
• Hardware failure in recovering secondary backup
• Problematic and time consuming recovery procedure
• Staffing shortage in regard to SAP expertise
• Way forward
• Better backup process and checking in place
• More appropriate form of SAP - implementation
  April 2006
• SAP to be hosted offsite - more secure less
  complex

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Sign-off of Financials

• Reasons for delay
• SAP crash delayed financials presentation by
  about three months.
• Audit changed - substantive instead of
  control-based. Significantly more samples tested
  than previously, which resulted in an extension
  of the audit.
• Mintek had to review many of its accounting
  policies, particularly relating to depreciation,
  post-retirement medical aid liability and
  accounting for prior year adjustments.
• Resource constraints - at the AG and at Mintek.
• Correction and adjustments of prior year errors -
  audit processes significantly reviewed.

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Plans for 2005-2006
Optimise balance between commercial and RD
activities Re-emphasise research as a core
competency Maintain an appropriate contribution
to wealth creation, poverty alleviation and human
capacity building Retain the Mintek brand with
respect to research and products
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Plans for 2005-2006 (continued)
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Five-year Institutional Review

• Findings
• Mintek has an excellent international reputation
  as a world class organisation in mineral and
  metallurgical RD and technology transfer.
• Minteks mission is to serve South Africa by
  promoting technology, industrial growth and human
  development.
• Mintek is committed
• To foster the establishment and expansion of
  industries in the field of minerals and products
  derived therefrom
• To contribute to wealth creation and poverty
  alleviation and,
• To develop the requisite human capital to sustain
  the mining and minerals sector.
• Mintek should be congratulated for its successful
  transformation programme.

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Institutional Review

• Conclusions Recommendations
• Manage the dynamics that shape the balance
  between commercial, RD and socio-political
  activities
• Establish enduring and robust relationship with
  the DME
• Retain high-quality DG personnel in the face of
  competition from industry
• Secure additional funds for research and human
  capital development (earmarked funds,
  international donors)
• Commercial activities - focus on licensing,
  royalties, sponsorships
• Establish expertise in environmental protection
  and sustainability
• Reward performance and offer market-related
  salaries
• DIFR should be set to zero

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Summary of Science Vote allocation 2006-2007
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Thank You
Dr Paul Jourdan CEO, Mintek