The Council for Geoscience Annual Presentation to the Minerals and Energy Parliamentary Portfolio Committee 7 November 2005 leading earth science solutions

OUTLINE OF THE PRESENTATION Mandate Background on Governance and Management New Strategy CGS Scientific Thrusts Key Programs Challenges

THE MANDATE OF THE CGS The Geoscience Act, Act 100 of 1993 The Mandate derived from Geoscience Act, Act 100 of 1993 Mandates the CGS to do: Systematic mapping, reconnaissance and documentation of the geology of the earth's surface both on shore and off shore Basic geoscience research on the nature and origin of rocks and the earth The collection and curation of all geoscience data

MANDATE (continued) The rendering of geoscience knowledge services and advice to the State The management of a number of National Geoscience facilities on behalf of the country National Geoscience Library National Core Library (Information lodged by exploration companies) National Geoscience Museum National Seismological Network (Monitoring Earthquakes) Mandate allows us to render commercial geoscience services and products to national and international clients

BACKGROUND ON GOVERNANCE AND MANAGEMENT New Board (Chairperson: Prof Ngoepe) and Executive Management appointed in 2003 A new strategy was developed and implemented in 2003 and 2004

NEW STRATEGY

VISION: leading earth-science solutions MISSION: To provide expert earth-science information and services to improve the management of natural resources and the environment

Six Scientific Thrusts The organization is structured around the following Six Scientific Thrusts: Geoscience Mapping Geological Mapping Geophysical Mapping Geochemical Mapping Marine Mapping Mineral Resources Development Water Geosciences

Six Scientific Thrusts Engineering Geoscience Dams (DWAF) and land planning (DME- mine ramous, DoH, NHBRC, DPLG and various local governments) Environmental Geosciences and Chemical Geohazards Information and Education

Key 2004/5, Current and Future Programs

Geoscience Mapping Why Geoscience Mapping? Important in; Identifying new mineral potential areas in South Africa Users: Private Sector & DME for small-scale and large-scale mining promotion Identifying ground water resources especially in Rural Communities Users: DWAF & Private Sector

Geoscience Mapping Land Planning and Infrastructure Development Users: Department of Housing (National Home Builders Registration Council – Especially in Dolomitic Areas) Eskom for Location of New Power Stations DWAF for Location of Dams Mitigation of Environmental Pollution and Degradation DME, DWAF and other government departments Education Universities and other Educational Institutes to train geoscientists

Engineering Geosciences – Research Program Focus on Dolomites and Sink Holes (Working on a National Strategy to Manage Dolomites) Risk Management System to manage and monitor natural disasters – needed for land planning

Sink Hole – A Danger to Society & Infrastructure - Laudium [PMG note: picture not included, please email docs@pmg.org.za]

GEOCHEMISTRY – Research Program Geochemistry Program in the last year resulted in a number of mineral anomalies that are potential mineral targets. Further research will be undertaken

GEOPHYSICS – Research Program The Geophysical Program has also resulted in the identification of new mineral anomalies and ground water targets Further research will be undertaken

Environmental & Water Geosciences Witwatersrand Basin Water Pollution and Ingress Project Objectives: Reduce ingress of surface water into underground gold mines in Gauteng & North West Province Minimize cost of pumping to facilitate continued access to gold reserves Manage and mitigate polluted water Addressing unsafe abandoned mines and mine workings

Wits Water Project Identified areas of water ingress Identified existing decanting points Finalizing the geohydrological modeling - provide understanding of underground water flow regime Engineering solutions will be implemented after completion of modeling

Mineral Resources Development Small scale mining New framework has been put in place A Board has been appointed CGS appointed by the DME to be the Implementing Agency and provide support

Mineral Resources Development - continue Mineral Resources/ “Reserves” Assessment Assessing Resources of major minerals Completed on Gold, PGM and Diamonds report will presented to the Minister

INTERNATIONAL COLLABORATIVE PROJECTS : AFRICAN FRONT Southern African Development Community - SADC Geological Map of the SADC region SADC – Water Sector very interested in the map

INTERNATIONAL COLLABORATIVE PROJECTS : AFRICAN FRONT Tripartite Program: Research on Karroo Supergroup. SA, Botswana & Namibia (Malawi indicated interest to join the research group) Provide a better understanding of mineral deposits such as coal and oil shales

INTERNATIONAL COLLABORATIVE PROJECTS: AFRICAN FRONT NEPAD Mineral Investment Database- Identification of Minimum Standards Collaborate with other African States on the assessment to extend the Maritime Exclusive Economic Zone of African States Participating in the establishment of the Association of Geological Surveys of Africa (Chair is Tanzania and SA is Secretariat)

OTHER INTERNATIONAL COLLABORATIVE PROJECTS Mozambique Morocco Mauritania Madagascar – Started 3 months ago Ghana – Started last month (3 yrs project) Gabon – Starting Next Month (3 yrs project) India – Stratigraphic correlation

INTERNATIONAL COLLABORATIVE PROJECTS: AFRICAN FRONT AfricanArray Objectives: To develop a seismic network across the continent Develop and train scientists on Geophysics - emphasizing on seismology and earthquakes Partnership between CGS, Penn State University and Wits University Other African countries are currently joining USA has just donated 10 instruments – we will installed in Namibia, Ghana and other countries One of our young Black scientist already left two months ago for the State to do Phd

Financials (R’000) 2004/5 B 2004/5 A 2005/6 B 2006/7 B Govern. grant – core funds 72,606 77,606 86,078 93,099 Earmarked funding 5,000 - 6 000 Contracting revenue 26,000 35,452 25,000 40,000 Publication revenue 500 483 Sundry Income 11,000 7,303 8,500 6,000 Total revenue 115,106 120,844 120,078 145,599 Cost of sales (8,800) (24,023) (11,605) (16,800) Administrative expenditure (95,050)) (89,520) (101,473) (121,197) Other operating expenditure (244) Total operating expenditure (103, 850) (113,787) (113,078) (137,997) Net surplus for the year 56 7,057

CGS BUDGET Government grant Personnel Costs Operating Expense Actual 2004/2005 Budget 2005/2006 Budget 2006/2007 Government grant 77,606,000 86,078,000 93,099,000 Personnel Costs 68,000,000 69,241,000 72,000,000 88,110,000 Operating Expense 9,606,000 8,365,000 12,375,000 14,938,000 Percentage of salaries to Grant 87.62% 83.65% 94.6%

Growth - progress Annual Technical Program – Audited for Quality and Completion Commercial Income - R millions

Cash and Cash Equivalents vs Total Assets R’000

Property and Equipment vs Total Asset

Overall Demographic Profile by Race… Blacks = 40%

Bursary Intake Analysis… Number of Bursars - 2000 to 2005 Our strategy is to target a set number of students on a yearly basis. The success of this approach is supported mainly by availability of funds.

Demographic Composition of Bursars by Race… Period - 2004/2005 Blacks = 88.89%

Demographic Composition of Bursars by Gender… Period - 2003 to 2005

KEY CHALLENGES : INTERNAL AGEING EQUIPMENT Average age of equipment = 15 YEARS Some instruments are 30 years old – Need to be replaced at huge costs Recapitalization is needed FUNDING More funds are needed to expedite critical program

KEY CHALLENGES : INTERNAL RETENTION OF SKILLS AND EXPANDING THE SKILLS BASE HUMAN CAPITAL DEVELOPMENT DEVELOPMENT OF BLACK & WOMEN GEOSCIENTISTS

KEY CHALLENGES – EXTERNAL Reactivating exploration in South Africa The notion that SA is over explored is not true There are still many mineral potential areas What is needed is continued and accelerated investment into geoscience infrastructure Addressing Environmental Issues Associated with Socio-economic Development eg mining & land usage KEY CHALLENGES – EXTERNAL

Actions to Address Internal Challenges We have started to address these challenges through implementation of several programs: A 10 year strategy for the organisation is currently being developed: Should be completed by February 2005 It contain proposals on how to address these challenges especially iro reactivating the exploration sector through geological infrastructure

THANK YOU