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

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

3. 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

4. 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

5. 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

6. NEW STRATEGY

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

8. 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

9. 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

10. Key 2004/5, Current and Future Programs

11. 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

12. 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

17. 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

18. Sink Hole – A Danger to Society & Infrastructure - Laudium [PMG note: picture not included, please

20. 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

22. 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

23. 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

24. 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

26. 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

27. 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

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

29. 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

30. 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)

31. 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

32. 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

33. 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

34. 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%

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

36. Cash and Cash Equivalents vs Total Assets
R’000

37. Property and Equipment vs Total Asset

38. Overall Demographic Profile by Race…
Blacks = 40%

39. Bursary Intake Analysis…
Number of Bursars 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.

40. Demographic Composition of Bursars by Race…
Period /2005
Blacks = 88.89%

41. Demographic Composition of Bursars by Gender…
Period to 2005

42. 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

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

44. 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

45. 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

46. THANK YOU