Analysis of the 2014/15 Annual Report of the Department of - PowerPoint Presentation

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Analysis of the 2014/15 Annual Report of the Department of Mineral Resources (DMR)

Martin Nicol

Parliamentary Research Unit

14 October 2015

1Slide2

Points of Reference

Budget (Vote 32) passed in 2014

DMR Strategic Plan 2014/19

DMR Annual Report 2014/15 2Slide3

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.

3Slide4

Challenges

Performance achievements and improvements in the Annual Report are

overshadowed by a serious lack of progress on matters of legislation and policyMPRDAMine Health and Safety Act amendmentsDMR has not successfully tackled two particular concerns raised by the PCMR:High level of vacanciesRetention of skilled staff, particularly inspectors.

4Slide5

Progress impression - legislation and policy for mineral resources

Work in progress

5

No progress evident

Good progress

Illegal mining (law)

Geo-science

regs

ODIMWA /

COIDA

Mine

liqui

-

dation

Amend

Mintek Act

Amend Precious

Metals Act

Amend

Diamond Act

Mining Charter

SOMCO Bill

Amend MHSA

WIM strategy

MPRDA Bill

One

Env

System

Ex mine workers

Bene-

ficiation

SPLUMA .Slide6

Challenges

Performance achievements and improvements in the Annual Report are

overshadowed by a serious lack of progress on matters of legislation and policyMPRDAMine Health and Safety Act amendmentsDMR has not successfully tackled two particular concerns raised by the PCMR:

High level of vacanciesRetention of skilled staff, particularly inspectors.6Slide7

Performance Indicators

Improvement in consistency and clarity of performance indicators

90% of indicators achieved in 2014/15This compares with 77% in 2013/14 and 79% in 2012/13.7Slide8

Summary of 2014/15 Performance Measures for DMR

Excellent performance across all branches

99.57% of all invoices paid within 30 days

8Slide9

Summary of 2014/15 Performance Measures for DMR

Improvement across all branches

Number of indicators reduced from over 160 to 109.

Content of some has also changed9Slide10

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%.

10Slide11

11

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)

No Director: Supply c

hain

m

anagement

for 3 years 7 months

No Deputy Chief Inspector of Mines for 4 ¾ yearsSlide12

MHSI vacancies:

A long term problem with

no improvement for five years12Slide13

13

MHSI vacancies

:

A

long term problem with no improvement for five yearsSlide14

DMR and entities: comparative achievement of planned targets

2014/15 Performance Measures

Number of measures

Number achieved

% achieved

% not achieved

DMR*

107

96

90%

10%

Geoscience

29

17

59%

41%

Mintek

107

88

82%

18%

SDT

21

16

76%

24%

SADPMR

23

19

83%

17%

MHSC

9

7

78%

22%

MHSI*

22

19

86%

14%

** 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.

2014/15

14Slide15

Comparative achievement of planned targets

2013/14 Performance Measures

2014/15 Performance Measures

Number of measures

Number achieved

% achieved

% not achieved

Number of measures

Number achieved

% achieved

% not achieved

DMR*

166

127

77%

23%

107

96

90%

10%

Geoscience

28

17

61%

39%

29

17

59%

41%

Mintek

91

77

85%

15%

107

88

82%

18%

SDT

21

17

81%

19%

21

16

76%

24%

SADPMR

21

21

100%

0%

23

19

83%

17%

MHSC

11

8

73%

27%

9

7

78%

22%

MHSI*

36

29

81%

19%

22

19

86%

14%

* Not strictly comparable between the 2 periods due to changes in indicators

** Same as

Programme

2 of DMR report

2013/14 performance compared with 2014/15

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3 entities had unplanned deficits/losses

# Auditor General (2015:4)

* "2014/15 Budget" figures are those tabled in Budget 2014

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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.

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Custodianship of mineral resources –

overall assessment

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Support neededCorrective action neededRanked from best to “least best”Slide19

Thank you

Dr Martin Nicol

Researcher:

Portfolio Committee on Mineral ResourcesResearch Unit, Parliament of South Africa

021 403 8331 (Tel)

021 403 8118 (Fax)

082 554 9880 (Cell)

Office location: 1/068

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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. 23 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 2015. Research Unit, Parliament. 12 October [0226]20