1. Analysis of the 2014/15 Annual Report of the Department of Mineral Resources (DMR)
Template from:
Information sourced from:
Nicol, M. (2015) Department of Mineral Resources Annual Report 2014/15 Analysis. Research Unit, Parliament. 07 October.
Draft for the Portfolio Committee on Mineral Resources (PCMR)
Martin Nicol
Parliamentary Research Unit
14 October 2015

2. Points of Reference DMR Annual Report 2014/15
Budget (Vote 32) passed in 2014
DMR Strategic Plan 2014/19

3. Achievements in year April 2014 to March 2015
Unqualified audit opinion.
DMR achieved 90% of performance targets.
Fatalities on mines at lowest level ever.
One Environmental System for mining in place.
Shale gas regulations gazetted, includes measures to manage environmental risks.
Tripartite summit to promote “Zero Harm”.
Co-ordination plan to revitalize mining R&D.

4. Challenges
Performance achievements and improvements in the Annual Report are overshadowed by a serious lack of progress on matters of legislation and policy
MPRDA
Mine Health and Safety Act amendments
DMR has not successfully tackled two particular concerns raised by the PCMR:
High level of vacancies
Retention of skilled staff, particularly inspectors.

5. Progress impression - legislation and policy for mineral resources
One Env System
Ex mine workers
MPRDA Bill
Amend MHSA
WIM strategy
SOMCO Bill
Mining Charter
Amend
Diamond Act
ODIMWA /
COIDA
Geo-science regs
Illegal mining (law)
Progress impression - legislation and policy for mineral resources
Source: 0226 and D:\MNWDx\Mar15x\MN2015\[0132 BRRR input information 2015 current.xlsx]Progress_15
Nicol, M. (2015) Vote 32: Department of Mineral Resources—Research Inputs for the 2015 Budgetary Review and Recommendation Report (BRRR): Assessment of progress with Legislative amendments and policy development for mineral resources – October Research Unit, Parliament. 12 October [0226]
Progress indicator Issue / law 1 One Environmental system for mining 1.5 Ex-mineworkers 5 Amendments to the MPRDA 6 Women in mining strategy 6 Amendments to the Mine Health and Safety Act 7 Mining Charter 7 SOMCO legislative framework 8 Amendments to the Diamond Act 9 Illegal mining (law) 9 Regulations for the Geoscience Amendment Act 9 Inferior compensation for mineworkers with lung disease 10 Liquidation of mines 10 Amendments to the Mintek Act 10 Amendments to the Precious Metals Act 11 Consequences for mining of SPLUMA 11 Beneficiation
Mine liqui-
dation
Amend
Mintek Act
Amend Precious
Metals Act
No progress evident
Work in progress
Good progress
SPLUMA .
Bene-ficiation

6. Challenges
Performance achievements and improvements in the Annual Report are overshadowed by a serious lack of progress on matters of legislation and policy
MPRDA
Mine Health and Safety Act amendments
DMR has not successfully tackled two particular concerns raised by the PCMR:
High level of vacancies
Retention of skilled staff, particularly inspectors.

7. Performance Indicators
Improvement in consistency and clarity of performance indicators
90% of indicators achieved in 2014/15
This compares with 77% in 2013/14 and 79% in 2012/13.
Number of indicators reduced from over 160 to 109.
Content of some has also changed

8. Summary of 2014/15 Performance Measures for DMR
Source: D:\MNWDx\Mar15x\MN2014\[0072 BRRR input information 2014.xlsx]AR analysis $B$37
Excellent performance across all branches
99.57% of all invoices paid within 30 days

9. Summary of 2014/15 Performance Measures for DMR
Source: D:\MNWDx\Mar15x\MN2014\[0072 BRRR input information 2014.xlsx]AR analysis $B$37
Improvement across all branches
Number of indicators reduced from over 160 to 109.
Content of some has also changed

10. Two areas of repeated non-achievement
Vacancies
DMR vacancies are at 14% vs target of <10%
Vacancy rates in all national departments is 9%
Department of Public Service and Administration has set a national target for all departments and entities of a vacancy rate less than 10%.

11. No Director: Supply chain management for 3 years 7 months
The width of the red bars illustrates the time each post has been vacant
– most are either above or below 9 months (which is the median – middle – value)
Source: H:\RESEARCH\Research Unit\Mnicol\DigitalDocs\0219 Graphic to picture DMR vacancies.pptx
Also see
Nicol, M. (2015) Analysis on vacancies and filling of posts in the Department of Mineral Resources (DMR). Research Unit, Parliament. 23 September.
No Deputy Chief Inspector of Mines for 4 ¾ years

12. MHSI vacancies: A long term problem with no improvement for five years
New source file: D:\MNWDx\Mar15x\MN2015\[0061 Mine Health and Safety tables 2015.xlsx]MHSI
Programme 2 hidden for the presentation – see 0223
And this graphic source file
D:\MNWDx\Mar15x\MN2013\0057 VACANCY TRENDS IN MINE HEALTH AND SAFETY.pptx
MHSI vacancies: A long term problem with no improvement for five years

13. DMR and entities: comparative achievement of planned targets
2014/15
2014/15 Performance Measures
Number of measures
Number achieved
% achieved
% not achieved
DMR*
107 96
90%
10%
Geoscience 29 17
59%
41%
Mintek 88
82%
18%
SDT 21 16
76%
24%
SADPMR 23 19
83%
17%
MHSC 9 7
78%
22%
MHSI* 22
86%
14%
I:\MN2015\[0132 BRRR input information 2015.xlsx]compare_15
The Auditor General has stated [0129] that a level of non-achievement of planned targets above 20 per cent is not acceptable and suggests weaknesses in the strategic planning process. CGS (2012c).
** Same as Programme 2 of DMR report
The Auditor General has stated that a level of non-achievement of planned targets above 20 per cent is not acceptable and suggests weaknesses in the strategic planning process.

14. Comparative achievement of planned targets
2013/14 performance compared with 2014/15
2013/14 Performance Measures
2014/15 Performance Measures
Number of measures
Number achieved
% achieved
% not achieved
DMR*
166
127
77%
23%
107 96
90%
10%
Geoscience 28 17
61%
39% 29
59%
41%
Mintek 91 77
85%
15% 88
82%
18%
SDT 21
81%
19% 16
76%
24%
SADPMR
100% 0% 23 19
83%
17%
MHSC 11 8
73%
27% 9 7
78%
22%
MHSI* 36 22
86%
14%
I:\MN2015\[0132 BRRR input information 2015.xlsx]compare_15
The Auditor General has stated [0129] that a level of non-achievement of planned targets above 20 per cent is not acceptable and suggests weaknesses in the strategic planning process. CGS (2012c).
* Not strictly comparable between the 2 periods due to changes in indicators
** Same as Programme 2 of DMR report

15. 3 entities had unplanned deficits/losses
Names of Entities: Mintek SA Diamond & Precious Metals Regulator (SADPMR) Mine Health and Safety Council (MHSC) Council for Geoscience (GCS) The State Diamond Trader (SDT)
Source: D:\MNWDx\Mar15x\MN2015\[0132 BRRR input information 2015 current.xlsx]compare_15 $C$42
# Auditor General (2015:4)
* "2014/15 Budget" figures are those tabled in Budget National Treasury (2014a*)
# Auditor General (2015:4)
* "2014/15 Budget" figures are those tabled in Budget 2014

16. General Concerns
Need for details on the number of section 54 and 55 orders (MHSA) in the Annual Reports, as in the past.
Policy clarity on how the mining legislation will be used to promote mineral beneficiation.
Need for performance measures on the granting of rights to minerals and SAMRAD.
Need for an annual report from the Environmental Mineral Resources Inspectorate.
This could follow the excellent model of the Mine Health and Safety Inspectorate.

17. Custodianship of mineral resources – overall assessment
Support needed
Corrective action needed
Ranked from best to “least best”
I:\MN2015\[0132 BRRR input information 2015 current.xlsx]chart-15

18. Thank you Dr Martin Nicol
Researcher: Portfolio Committee on Mineral Resources
Research Unit, Parliament of South Africa
(Tel)
(Fax)
082  (Cell)
Office location: 1/068

19. References
Nicol, M. (2015) Department of Mineral Resources Annual Report 2014/15 Analysis. Research Unit, Parliament. 07 October. [0223]
Nicol, M. (2015) Analysis on vacancies and filling of posts in the Department of Mineral Resources (DMR). Research Unit, Parliament September. [0219]
Nicol, M. (2015) Vote 32: Department of Mineral Resources—Research Inputs for the 2015 Budgetary Review and Recommendation Report (BRRR): Assessment of progress with legislative amendments and policy development for mineral resources – October Research Unit, Parliament. 12 October [0226]