performance against objectives - mintek

mintek annual report 2011

Performance against Objectives1. Stakeholder PerSPective

10

Key Performance Area/Objective: Develop efficient mineral processing technologies and sustainable value added products and services

Programmes Measures/Outcome Performance Indicator Target Actual Comments

a. Competitive technologies, products and services for optimal resource utilisation

Develop Analytical & Mineralogical Methods and Services

# of methods 12 16Work was unexpectedly generated at the Min-eralogy division which compensated for less work done in the Analytical Services division.

# of samples 65020 64664

Rand Value 22,000,000 28,933,315

Develop new technologies

# of internal reports 31 50

The targets for internal and external reports were set based on final reports. However, many progress reports were compiled during the development of the various technologies, a number of which had patent possibilities.Fewer technologies were developed than planned due to adverse market conditions and delays in securing suitable demonstration sites have led to products not being fully demonstrated.

# of external reports 1 3

# of new technologies 5 2

# of prototypes evidenced by reports 4 2

Sales of products, plant and equipment

# of plants units 4 2Plant equipment produced was less due to lack of appetite. However the value of control system and that of CRM sales were as planned.

Rand Value of control system sales

18,000,000 18,236,165

# of CRM sales and R Value 3,000,000 3,012,198

Investigations and feasibility studies:Conduct laboratory and pilot scale test work to obtain the metallurgical parameters necessary for the preparation of pre- or full-feasibility studies for the ore samples supplied by clients to Mintek


Some divisions experienced unforeseen requests for additional internal work during the last quarter, resulting in a higher number of internal reports produced. In addition, some divisions received more requests for smaller projects and additional laboratory scale work and as such produced more external reports for smaller projects vis-à-vis an expected smaller number of bigger projects.


Enhancing Mintek Reputation

# of journal papers 10 4 In one of the divisions, a journal article on prototype demonstration results could not be published due to delays in finding a suitable demonstration site.

# of conference papers 20 21

b. Beneficiation to value added products.

Develop applications for precious metals in the areas of:• Biomedicine (HIV, Cancer, Malaria)• Catalysis (Chemical Processing,

Fuel Cells, Environmental)• Nanotechnology (Water, Health)

# of potential inhibitors 10 14

The system was automated enabling faster development of potential inhibitors. The group was also asked to develop more nano systems than was predicted.

# of catalyst technologies 2 3

# of nano systems developed

10 16

Develop metallurgical processes and products for base-, light-, (Titanium, Magnesium), and ferrous metals

# of reports 4 7Alloy development work rescheduled to 2011/12 due to furnace breakdown.# of processes and products 3 0

Enhancing Mintek reputation

# of journal reports 21 19

An adequate number of journal papers was submitted, but awaiting approval.


performance against objectives 11

Key Performance Area/Objective: Develop efficient mineral processing technologies and sustainable value added products and services (continued...)


c. Sustainable Resource Management

Water in Minerals Processing: Development of water efficient flow-sheet to optimise water consumption and enable processing of ore bodies in water stricken areas


# of external reports 3 0 Report done under feasibility studies.

# of stakeholder workshops 1 1 FP7 workshop attended.

Energy in Mineral Processing Development of an energy efficient flowsheet & control technologies that minimises energy consumption, opex, capex, and carbon emissions by incorporation of novel technologies into flowsheet design


# of external reports 0 0 Reports will only be done from year 2011/12

# of prototypes 1 2 Demonstration site could not run at full capacity due to poor economic conditions, hence prototype could not be fully demonstrated.

Waste management and recycling (Extending reserves of mineral resources)

# of waste management and recycling initiatives 1 2

Initiatives and reports are within the planned range.



# of prototypes 1 1

Mineral Scans: Industrial Minerals for LED support, Spatial Development Programme

# of reports 2 5

The target was exceeded due to the categorisation of output.# of stakeholder workshops 0 2

Side stream and downstream development of mineral value chain

# of reports on value chain relocation and development

2 1

Studies revolved around the use of underground mine spaces for commercial development.

Mineral Infrastructure and Logistic Studies: Steel Infrastructure Study, Energy Infrastructure, Jewellery Manufacturing Precincts

# of mineral infrastructure and logistical studies 1 4

Enhancing Mintek Reputation

# of journal papers 2 0 The work done supported the publication of more papers, instead of planned journal articles.


d. Support the development of Junior Resource Companies (JRC)

Technical Assistance # of reports 23 9

An unexpected decline in requests for work, due to unfavourable economic climate, from Junior Resource Companies resulted in the target not reached.


Key Performance Area/Objective: Second Economy Interventions


a. Development of technologies relevant to SMME’s

High Value Minerals: Precious and semi-precious gems, diamonds, coltan # of methods 1 3

Low value (bulk) Minerals: establish small scale technologies suited to SMME operations in Industrial Minerals and transferred to communities

# of technologies adapted 3 2

The target of 3 was not met due to the research on one of the technologies being adapted (water recovery on a diamond plant) not being complete. Further research is still required.

# of technologies developed 2 3

# of technologies transferred 3 0

The implementation of Biomin in Marble Hall is not complete and no other projects funding was received for technology transfer during the year.

b. Support SMME development using Mintek technologies/service

Development and support of SMME’s: New business started, jobs created, sustainability

# of new start-up SMME’s that are Mintek supported 14 4

Funding could not be sourced for more new start-ups but continued training and support of already established SMME’s in both ceramics and jewellery. Projects were extensions of existing contracts. The focus was to provide additional support to existing groups and SMME’s to ensure sustainability of these groups and all 9 SMME’s established in 2009/10 are still in operation. In addition, a higher percentage than expected is still in existence after 2 years.

# of jobs created through start-ups 168 77

% of SMME’s still in existence after 1 year 71% 100%

% of SMME’s still in existence after 2 years 57% 78%

2nd Economy Strategy: Knowledge acquired from research done around SMME’s in the mineral sector and the development and implementation of a strategy for the support of the 2nd economy

# of research reports 3 10 More emphasis was placed on research into the ASM sector for providing strategic direction of R&D activities. Work received from client (Native Geoscience) in Namibia which was not planned for caused the target to be exceeded. However, insufficient projects were obtained for the set-up of new groups and SMME’s due to funding and the focus was therefore to provide additional support to existing groups and SMME’s to ensure sustainability of these groups.

Implementation of a Ceramic Strategy for SA (report, establishment of new ceramic units)

6 new units 4

Development and Implementation of a Strategy that incorporates Indigenous Knowledge Systems (IKS) into jewellery

1 Strategy Report 1

12

Key Performance Area/Objective: Support of regional interventions


a. Policy Support

Alluvial Diamond Finger Printing Competency: Develop methods and establish infrastructure to identify the source of diamonds through trace element analysis, diamond morphological characterisation and setting up diamond database

# of parcels characterised 4 9Positive response, especially locally was received in sourcing diamond parcels and the program is still ongoing to be able to confidently identify source area.

# of source areas identified 1 0

# of source areas identified 1 0

Socio - Economic Research and Analysis as per DMR Request

Annual summary report on policy support work undertaken

1 0

There was no work requests from the DMR.# of publications / journal papers 1 0

Socio-Economic Management: Assist companies in understanding and monitoring the impact of Mining on women.

# of companies assisted 0 1Due to staff resignations most of the projects were cancelled.

# of reports 3 1

performance against objectives

2. FiNaNcial PerSPective

13

Key Performance Area/Objective: Good Governance


a) Compliance

IFRS Compliance: Timely and accurate processing of all valid transactions, addressing all audit matters raised in external and internal audits

Status of Audit Report Unqualified Unqualified

b) Financial Management

BEE procurement as a % of total discretionary spend

BEE procurement as a % of total discretionary spend 25% 43% BEE spend was better than the target as a result

of focusing on accredited suppliers.

Strengthening Internal Financial Controls

Strengthening Internal Financial Controls Unqualified Unqualified

Zero tolerance on fraud R0 R0 No fraud detected during the year

Actual debtors write off (% of total revenue)

Actual debtors write-off (% of total revenue) <0.8% 1,1%

Average Debtors Days <75 days 93 days

Total Income Rand Value 416 687 359 826

Income derived from products and services is significantly below budget. Significant PDD budgeted revenue did not materialise due to discontinuance of Bay 2 projects.

Total State Grant Revenue Rand Value 130 385 128 702

State grant research revenue is slightly below budget; resulting mostly from significant budget deficit in ESD and ASD. Most divisions have met their targets.

Net result Rand Value 667 -2 722

The loss resulted from significantly lower than expected income, however it was mitigated by operating expenditure which is significantly lower than the budget; as well as sharp decrease of Bay 2 fixed costs.

Return on Investment % margin 5 5,9%

Return on investments is slightly higher than budget, as a result of more funds being placed in interest yielding securities, despite the decrease in the interest rates.

Total Capital Expenditure Rand Value (Including State Grant Funding) 39 140 63 788 48% of Capex was the ConRoast capital

upgrade.

c) Efficiencies

Maintained balance between R&D and Products and services Revenue streams

Ratio of Science Vote over Total Revenue expressed as a %

>20% & <40% 38%The State Grant ratio to total revenue is at the upper end of the range due to lower than expected commercial revenue.

Total of overhead costs to total costs % overhead costs over total costs 25% 36%

Total overheads’ ratio to total costs is slightly above target for the quarter year and the year, due to lower than expected total expenditure.

Liquidity Ratio >1 1,8

Revenue per headTotal revenue over total # of employees expressed in R’000 per employee

R500 R490Revenue is slightly lower than the anticipated annual target due to lower than expected revenue for the financial year.

TCTC Salary bill over total expenditure expressed as % Ratio expressed as a % 55% 62%

The ratio is slightly higher than the budget for the financial year due to the overall lower than expected total expenditure.


Key Performance Area/Objective: Human and organisational development


a. Human Capital Development

Skills Development

WSP Compliance 1 report 1 report

Achievement within the required range.Total spend on training expressed as a % of total revenue

1.50% 1.44%

Science, Technology, Engineering and Mathematics (STEM) Promotion

# of Science Events 10 2 Under target due to reduction in learner-focused science-promotion events due to Mintek finance constraints.Annual Minquiz

competition 1 event 1 event

Under-graduate Bursary Programme

# of bursars 80 106 Over target due to good uptake by Mintek staff for part-time bursaries and centralised administration. A few bursaries were cancelled due to poor performance.

% Under-graduates Absorption Rate 90% 79%

Post-graduate Bursary Programme (MSc & PhD)

# of bursars 50 42Slight improvement in numbers due to good uptake by Mintek staff to undertake part-time studies; but still below target for the year due to low full-time postgraduates

% MSc graduates Absorption Rate 100% 80%

% PhD graduates Absorption Rate 100% 100%

Work-based learning Programme# of Trainees employed 50 45 Slightly more students than planned were

given fixed-term contracts after completion of their WIL contracts.% Trainee Absorption Rate 5% 13%

Interns Programme

# of Interns employed 33 32 2 interns out of 26 exiting interns (contract completion) given full-time jobs; 1 intern converted from fixed-term to permanent employment% Intern Absorption Rate 5% 11%

Local SMME and Jewellery Training and Development: People trained in bead making, brick making, ceramics, introduction to small scale mining, and partnerships developed on skills programme. Establish new partnerships, train new beneficiaries at NQF level 2, train learners in gemstone cutting and polishing.

# of people trained in jewellery and beads 210 119 The full year targets were not achieved due

to insufficient external funding for training related to small scale mining. No new contracts received from the MQA in 2010/11.

Other targets were not achieved due to insufficient projects obtained for the set-up of new groups and SMME’s. The focus was to provide additional support to existing groups and SMME’s to ensure sustainability of these groups.

# of people trained in small scale mining 450 99

Accreditation Status as a training provider maintained maintained

SMME Development # of SMME’s developed 14 4

3. learNiNG aNd GroWth PerSPective

14

Key Performance Area/Objective: Good Governance (continued...)


d. Quality, Environment and Safety

Maintain QES standards: Ensure that Mintek maintains its ISO 9001, 14001, 170025 OHSAS 18001 quality, environment, and safety accreditations, and meets or exceeds its targets for Fatalities, Lost Time Injury Frequency Rate (LTIFR), and Client Dissatisfaction Frequency Rate (CDFR).

Achieved Target for fatalities 0 0

All targets were achieved except for the CDFR which is receiving service attention.Achieved Target for LTIFR <1 0.4

Achieved Targets for CDFR <10 14

e. Energy Efficiency

Continual improvement in Energy Efficiency-achieve energy saving initiative targets

Strategy for Enhanced DSM (demand side management)

1 report 1 report

f. Corporate Governance and Compliance

Compliance with appropriate regulations and legislation

Status of PFMA compliance checklist Complied Complied

More audits than planned were executed due to Internal Audit having identified areas of high risk where reviews were necessary.

More fraud awareness workshops were conducted as Internal Audit adopted an approach of wrapping up audits with a fraud awareness presentation to staff of the audited divisions.

Internal audits conducted Number of Audits 17 23

Eradicate fraud through awareness campaigns Number of Workshops 4 12

performance against objectives 15

Key Performance Area/Objective: Human and organisational development (continued...)


b. Transformation Employment Equity Report and PlanCompliance with DoL 1 1 Report 1 Report

Target achieved.Targets achieved 80% 82.8%

c. Performance Management Performance Management System

% Performance Contracts done and signed (for each employee)

100% 100% Target achieved.

% Performance Assessment done and signed (for each employee)

100% 100% Target achieved.

d. Talent Leadership

Experience Profile of “SCIENTISTS”

Average years of experience at Mintek of “Scientists”

5.0 years 2.4 yearsThis is influenced by the high turnover experienced at the professional level.

Average Age of “Scientists” at Mintek 35 31.5

Retention & Succession % Staff Turnover 10% 12% More resignations in service divisions

% Staff Turnover of Professionals 5% 4% Within target range

Coaching and Mentoring Plan and Implementation Implement plan 0

The Coaching and Mentorship intervention will be addressed as a subset of the overall Corporate skills development plan in the new financial year.

Leadership Development Programme # of employees 30 20 Less appetite than expected.

Employee Health # of Employee Wellness Programme interventions 4 (1 per quarter) 5

In addition to the HIV Prevalence survey, Mintek also participated in the Cansa Shavathon, which was not included in the initial target of 4 interventions.

e. Maintain World Class R&D Competence

Promote Scientific & Innovation Excellence

Implementation of the information Knowledge Management Strategy

Implement Research

Management Strategy

0Target not met. Strategy to implement National Intelligence Agency requirements to roll over into the new financial year. The Research Output module was implemented. An audit must still be performed on the record keeping practices.

Implementation of Research Information Management System

1 0

Audit findings on record keeping practices Unqualified Audit Unqualified Audit

Proportion of Researchers to Total Staff Proportion expressed as a % 35 31.2

The higher than expected turnover rate at the professional level resulted in the targets for researchers as a percentage of total staff, not met.

# of Staff enrolled for MSc and PhD # of staff 24 12

% of staff with MSc % 20 6.65

% of staff with PhD % 3.50 5.01

Papers and Articles Published # of papers published 100 66

International collaborations # of International collaborations 25 49

f. Integrated approach to Marketing and Communications

Integrated approach to marketing and communication

Business and marketing plan Develop plan 0 The priority was reassessed. Will be a

necessity to be renewed next year.

performance against objectives - mintek

Documents