Briefing Portfolio Committee on Mineral  Resources by Council for Geoscience on  Strategic Plan 2012/2013

16 May 2012

Structure

• Five‐year goals• Vision, Mission and Values

• Mandate

• Strategy• Budget • Strategic performance objectives and targets

• Key programmes and projects

• Human capital

Goals

Five‐year Goals

Strategic outcome‐oriented goals of the CGS•Employees view the CGS as an attractive career 

opportunity

•The CGS is responsive to the developmental needs of  the country and is recognized among global leaders in  the geological field because of its commitment to 

excellence

•The CGS is a financially viable and structurally robust  organization catering for all stakeholders and utilizing  multiple revenue streams

Vision, Mission and Values

Vision

Leading Earth‐Science Solutions

Mission

To 

provide 

expert 

earth‐science 

information  and 

services 

to 

improve 

the 

management 

of 

natural 

resources 

and 

the 

environment 

for 

a  better quality of life for all

Vision  &  Mission

The Values

• Innovate and create through teamwork

• Excel through quality and performance

• Value diversity through trust and respect• Invest in its people

Mandate

The Mandate of the CGS

The Geoscience Act, Act 100 of 1993•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•CGS also aligns its strategy and activities with 

– Government programme of action – national imperatives– DMR’s strategy (Mining Growth strategy)– DST’s national research and development strategy 

Other mandates

• Medium Term Strategic Framework for 2009 to 2014  ‐

Government

• Stakeholders’

declaration on Strategy for the Sustainable 

Growth and meaningful Transformation of South Africa’s 

Mining  Industry  ‐

DMR

• Grand Challenges  ‐

DST

Strategy

Strategic planning process

• Board strategic planning workshop ‐

12 to 13 May  2011

• CGS management strategic planning workshop 23 to  24 June 2011

• Board approval of CGS Strategic and Performance  Plans – 17 November 2011

• Ministerial approval – 1 March 2012

Strategy

National Imperatives• Speeding up economic growth

• Rural development and poverty eradication

• Increasing innovation

• Skills development

• Expediting transformation

• Development of Africa

• Addressing stakeholder needs and regulatory  requirements

Strategy

CGS Strategic Objectives

•To manage overhead efficiency

•To address stakeholder needs•To effectively promote the CGS and disseminate 

strategic information to the public

•To implement the Geoscience Amendment Act (Act  No. 16 of 2010)

•To develop and implement effective policies and  procedures

CGS Strategic Objectives (cont.)

•To drive preferential procurement

•To attract and retain a skilled workforce•To enhance present level of excellence•To build a positive organizational culture•To reflect and embrace South Africa’s diversity

•To  generate revenue

Strategy

Strategy

Key Challenges

•Insufficient resources•Ageing infrastructure•Continuing with Transformation

•Refocusing and aligning the organization to address  SA’s developmental challenges

Budget

Budgets for the period 2011/12 to 2014/15

INCOME (RANDS) 2011/12x 1000

2012/13x 1000

2013/14x 1000

2014/15x 1000

Government grant 154 405 221 150 260 668 291 708

Sales and contracts 66 000 72 600 79 860 87 846

Sundry income 2 625 2 756 2 894 3 039

TOTAL INCOME 223 030 296 506 343 422 382 593

EXPENDITURE

Personnel costs 131 312 140 504 150 339 160 863

Bursaries 1 200 1 900 2 090 2 300

Commercial project costs 29 700 32 670 35 937 39 531

Overheads and operating costs 59 318 110 432 133 556 152 899

SUBTOTAL 221 530 285 506 321 922 355 593

CAPITAL EXPENDITURE

Equipment 1 500 1 000 1 500 2 000

Land and buildings ‐‐ 10 000 20 000 25 000

SUBTOTAL 1 500 11 000 21 500 27 000

TOTAL EXPENDITURE 223 030 296 506 343 422 382 593

Surplus (Loss) ‐‐ ‐‐ ‐‐

Analysis of Government grant allocation  for 2011/12 to 2014/15

ITEM 2011/12x 1000

2012/13x 1000

2013/14x 1000

2014/15x 1000

Baseline allocation 154 405 161 150 170 668 181 708

Derelict and Ownerless Mines Project

20 000 20 000 20 000

Additional Funding (MTEF proposals) ‐

Stimulation of investment in 

the Mineral   Sector

‐ 30 000 50 000 65 000

‐

Building & Laboratory  

infrastructure

‐ 10 000 20 000 25 000

TOTAL GOVERNMENT GRANT

154 405 221 150 260 668 291 708

Strategic Performance Targets and  Objectives

Economic / Financial Growth

Key Objectives Measures Target 2012/13 Target 2013/14 Target 2014/15

To generate Revenue

Total revenue (Rands) R296,5m R343,4m R382,6m

Contract revenue (Rands) R72,7m R79,9m R87,9m

Sundry income R2,7m R2,9m R3,0m

Ratio of external revenue to total

revenue24% 24% 24%

Number of large tenders submitted

(>R1m)30 30 30

Tender success rate 10% 10% 10%

To manage overhead efficiency

Ratio of overheads to total cost 55% 55% 55%

Ratio of personnel cost to total cost 59% 59% 59%

Stake Holder / Customer Perspective

Key Objectives Measures Target 2012/13

Target 2013/14

Target 2014/15

To contribute towards South Africa’s economic growth and serve stakeholders

No of Maps and Publications focusing on attracting exploration

investment6 7 8

No. of Maps and Publications Published focusing on other

resources and thrusts 40 40 40

Percentage Satisfied Customers 85% 85% 85%

No. of Rural Development Projects in progress 10 12 14

No. of Regional and African Development Projects 22 25 27

No. Environment-Related Projects in progress 6 7 8

Annual Technical Programme performance index 85% 85% 85%

To integrate the Mine Seismic Network into National Network

Number of stations installed10 10 10

Effective Systems Perspective

Key Objectives Measures Target 2012/13

Target 2013/14

Target 2014/15

To develop and implement

effective polices and procedures

Percentage ISO implementation in accordance with reference report

100% ----- ------

Number of audit qualifications 0 0 0

To implement the Geoscience

Amendment Act

Progress according to implementation

plan

Waiting for resubmission to National Treasury

------- -------

To drive Preferential

procurement

Preferential procurement as a % of total procurement

40% 40% 40%

World‐class People Perspective

Key Objectives Measures Target

2012/13 Target

2013/14Target

2014/15

To attract and retain a skilled

workforce

Nett staff turnover 0% 0% 0%

No. of staff enrolledfor MSc and PhD degrees 35 35 35

Scientists as a % of total staff 44% 45% 50%

% of scientific staff with PhD and MSc degrees 56% 57% 60%

% satisfied protégées 60% 60% 60%

To improve on Research

& Development

and Innovation

No. of papers and articles published 70 70 70

No. of declared projects with intellectual property value 1 1 1

No. of projects with external collaborators 58 60 62

No of strategic science partnerships 16 20 22

World‐class People Perspective (cont.)

Key Objectives Measures Target 2012/13 Target 2013/14 Target 2014/15

To build positive organisational

structure% satisfied staff 65% 65% 65%

To reflect and embrace RSA

diversity

EE Stats (Consolidated)

(W:B)36:64 34:66 32:68

EE Stats (Gender) (M:F) 54:46 53:47 52:48

Key Programmes and Projects

Business Model : Seven Scientific Thrusts

EngineeringGeoscience

Environmental Geoscience

Water / Geohydrology

Geoscience Mapping•Geological

•Geochemical

•Geophysical

•Remote Sensing

Mineral Resources Development

Energy

Information and Education

1:250 000‐scale Geological Mapping

MAPS PUBLISHED Polokwane

Pretoria

Johannesburg

Mafikeng

KimberleyBloemfontein

Durban

Port ElizabethCape Town

INDEX MAP:- PROGRESS OF THE MAPPING ANDPUBLICATION OF 1:250 000-SCALE GEOLOGICALMAPS IN SOUTH AFRICA

REVISION MAPPINGCOMPLETED

MAP READY TO PR INT

1:50 000‐scale Geological Mapping

Km

INDEX MAP:- PROGRESS OF 1:50 000-SCALE GEOLOGICAL MAPPINGIN SOUTH AFRICA

Maps published

Mapping in progress

Mapping completed

1:250 000‐scale Metallogenic Mapping

Map compilation planned for2012/2013

Upington

Cape Town

Pretoria

Polokwane

Durban

Port Elizabeth

INDEX MAP:- 1:250 000-SCALE METALLOGENICMAPPING PROGRAMME FOR SOUTH AFRICA

Map compilation completed

Map published

1:50 000‐scale Geotechnical Mapping

INDEX MAP:- PROGRESS OF1:50 000-SCALE GEOTECHNICALMAPPING IN SOUTH AFRICA

Maps published

Regional Geochemical Mapping

Geochemical dataavailable

Sampled

Springbok

Cape Town

Beaufort West

MafikengJohannesburg

Polokwane

INDEX MAP:- PROGRESS OF THE REGIONALGEOCHEMICAL SURVEY OF SOUTH AFRICA

High‐density Airborne Geophysical Flying

Seismicity in Southern Africa (3 months)

Mine seismology projects

A) Integration of the South African National Seismograph Network and Database

with Mining Networks as per the recommendation in chapter 1 of the Presidential

Mine Health and Safety Audit 2008 - which aims to 1) extend the South African

National Seismograph Network (SANSN) into the mining districts, 2) integrate

available seismological information from SANSN and mining networks, 3)

investigate the link between seismic events and injury / deaths of miners.

B) Fluid-Induced Seismicity in the Central Basin Area – which aims to predict

strong ground motion for the maximum expected magnitude of earthquake,

evaluate the damage potential, as it is defined by the South African Building

Codes, and develop an Early Warning System for risk reduction.

Integration of SANSN with the mining  networks

During 2011/12:- 25 seismograph stations were installed in the KOSH mining region

Data from these stations are being sent to the CGS in near real time and automatically located where possible.

In the future, the CGS plans to install seismograph stations in:- the Bushveld region and eventually - in the Welkom region.

The CGS also plans to create a:- Centre for Research in Induced Seismicity (CRIS) at which research into seismicity at the mines and dams/reservoirs is conducted.

In support of these activities:- 10 stations were installed in the Carletonville region and - 12 stations already exist in the Central Rand region.

Stations are to be installed in the  Bushveld region

Central Basin Area

Far West Rand Area

12 stations

11 stations

KOSH

Bushveld - 2013/14

25 stations

Eskom New Build Project

• CGS was appointed by Eskom to perform a Probabilistic 

Seismic Hazard Assessment for Eskom’s potential nuclear site

• The characterization of the ground‐motion hazard at the site 

should ultimately lead to a license to build and operate a 

nuclear power plant

• The study conducted by the CGS is an industry gold standard 

and may become the benchmark for international best 

practice

• Investigations to be extended to more than one site

• Further study on Algoa basin in Eastern Cape– Establishing GIS database– Effective capacity assessing the porosity

• Compiling specifications for a drilling and seismic  profiling programme for the Zululand basin

Geological Storage of Carbon Dioxide

Strategic Water Management Programme

Status of Recommendations in the IMC Report

Stimulation of Investment in the Minerals  and Energy Sectors

Global Exploration Budgets

Mining Exploration

Importance of the Project

• Mining contributes about 8% of the GDP, and therefore the backbone of the economy.

• South Africa’s share of expenditure in mineral exploration has declined from 5% in 2004 to 3% in 2009

• Job creation is an important factor – each small to medium operation creates 20 to 50 new jobs. These operations cannot explore on their own

• Medium to large size gold mining operations employ on average 400-500 people

Availability of national exploration data will lead to: •Improved Exploration and Mining Investment (FDI)•Job creation and poverty alleviation•Tax rebates•Infrastructure development•Beneficiation

Examples in countries like Canada indicate that for every $1M spent by government on geoscience results in :

•$5M in exploration expenditure•Mineral discovery worth $125 M•About 50% of the exploration expenditure is directly into job creation

Importance of the Project (cont.)

Management of derelict and ownerless  mines

• Previous work by the  Council for Geoscience 

(2005‐2008) identified  around 6000 D&O mine 

sites

Strategic recommendation

• Adopt a two‐pronged approach to rehabilitation– Address simple sites which can be rehabilitated at low cost 

in a relatively short time frame

– Simultaneously address large complex sites which will 

require multi‐year rehabilitation programmes

Current status

• A three year proposal for 2012/13‐2014/15– A budget of approximately R20 million per annum has 

been prepared– The CGS proposal includes

• Closure of dangerous mine openings• Environmental assessment and preparation of rehabilitation plans

for identified high‐risk coal and asbestos mines

• Maintenance and updating of the database, including ranking to 

identify high‐risk sites

• Updating the estimate of the State’s potential contingent liability

International Front:  Key Projects

• Organisation of African Geological Surveys (SA‐Secretariat; 

Algeria ‐

Presidency)

– Seismotectonic map of Africa with the Commission of the 

Geological Map of the World– Onegeology – Geological map of the world 

• SADC (Geological Committee)• AEGOS –

Develop standard data by which geoscience data can 

be shared across the continent• Uganda – geochemical and geological mapping• Madagascar series of different projects• Namibia –

establishing a geophysical data processing centre

• Japan – rare‐earth elements research project• EU –

sustainable mining

• Sweden –

prospectivity mapping

• Botswana –

institutional review

International Geological Congress (IGC) 2016

• The bid to host the 35th IGC  (IGC35) in 2016 was awarded  to South Africa with a 

majority of votes by delegates  to IGC33 held in Oslo, Norway  in 2008

• The CGS is taking a leading role in the Local  Organizing Committee for IGC35

• Preparations for the Congress are progressing  smoothly

Human Capital

Human Resources

• 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 

Staff studying part‐time

Full‐time students

Geological Field School

Initiated in 2005, based in LimpopoNow a one-year modular programme:• CGS trainees full-time for one year •Introductory short course•In the process of acquiring accreditation from MQA

Thank You