Mineral Development Studies

1
Mineral Development Studies

• NEPAD Africa-wide mineral-based SDI assessment
  To identify potential Spatial Development
  Initiatives (SDIs) across Africa (most are
  mineral-based as only minerals can fund the
  requisite infrastructure)
• SDI mineral-based RSDIP projects
• Concept study on the development of an Al
  industry based on nepheline syenites in the
  Zambezi corridor
• Conceptualisation of the Maputo Metallurgical
  Complex (MMC) and identification of potential
  investors
• Concept study on the Heavy Minerals downstream
  opportunities in the Chibuto area (Corridor
  Sands)
• Cluster study of selected projects in the
  Zambezi SDI
• Lobito and Malange SDIs. Phase I of Angolan study

2
Reasons for Audit Report

• AG report for Minteks financials for the
  financial year 2004/05 reflected non-compliance
  or non-conformance to Generally Accepted
  Accounting Practice (GAAP)
• Primary reasons for GAAP non-compliance
• Change from cash accounting to accrual accounting
• Current SAP system was designed/developed for
  cash accounting.
• Accounting as a government entity rather than a
  commercial entity.
• Secondary reasons for GAAP non-compliance
• SAP crash - influenced the preparation and levels
  of support that was offered to the external
  audit.
• Focus and relevance of the work conducted by the
  internal audit.

3
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.

4
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
• Migrating to new MySAP All In One
• HR Systems went live on 01/03/2006
• Business Systems to go live on 01/04/2006

5
Plans for 2006-2007

• Optimise balance between commercial and RD
  activities
• Re-emphasise research as a core competency, but
  broaden to encompass SMMEs
• Maintain an appropriate contribution to wealth
  creation, poverty alleviation and human capacity
  building, particularly in bridging the 1st 2nd
  economy divide.
• Retain the Mintek brand with respect to research
  and products

6
Plans for 2006-2007 (cont.)

• Progressively extend core competencies to include
• the refining stages of the mineral/metal value
  chain
• environmental protection and sustainability
• Assess expanding ferrous competency in the light
  of Iscors RD exit
• Begin a comprehensive evaluation of the southern
  and African mining scene that will provide a
  basis for setting national long-term research
  priorities and feed into Minteks own research
  strategies.

7
Technology dependency or knowledge economy?
RD Failure due to lack of funds for
demo-scale (R100-R200m) Movement of RD
overseas (relistings, take-overs)
OVERSEAS TECHNOLOGY SOURCES Research
Development Production

Technology Transfer
Activity Level Scale
Innovation Chasm
Local Industry Industrial Products
Local Research
Basic Strategic Application Design
Production/ Sales Research
Development Manufacturing
PRODUCT LIFE CYCLE
National RD Strategy 2002
8
The Mintek Campus
Corporate
Laboratories
Analytical
Pilot-plants
Engineering
THANK YOU