mintek ar 2011

contents

Contents

ifc MINTEK MANDATE, VISION AND MISSION

2 MINTEK GLOBAL ACTIVITIES

3 MINING VALUE CHAIN

4 CHAIRMAN’S OVERVIEW 4 & 5 Mintek Board

6 CEO’S REPORT 7 Management Organogram

10 PERFORMANCE AGAINST OBJECTIVES

16 AWARDS AND RECOGNITION

18 MINTEK IN BRIEF

REVIEW OF OPERATIONS

20 RESEARCH, DEVELOPMENT AND TECHNOLOGY

21 Gold Industry Water and waste management Nanoscience and Nanotechnology Metallomed™ Catalysis BacoxTM process

23 Platinum Industry Improved grinding media Catalysis Analytical Services Symposium Tomography PGM Processing software ConRoast development

25 Ferrous Metals Industry Technical support for the foundry industry Ferrous metals R&D The Metals Technology Centre (MTC) Power generation

26 Base Metals Industry Copper and cobalt electrowinning

Heap leaching of uranium and copper ores

27 Industrial Minerals, Uranium, New Metals and Diamonds Industry

Uranium processing Diamond provenance Rare Earths and other “green” minerals Titanium tetrachloride plant

COMMERCIALISATION

28 OPERATIONS AND DEVELOPMENT Equipment and laboratories Lab-scale work DC Arc technology High Temperature Bio-leaching MeTRIX resin-in-pulp SAVMIN New fibre technology Rados X-ray Sorter Cynoprobe

30 MINERAL POLICY AND SUSTAINABLE DEVELOPMENT

Derelict and ownerless mines International partnerships Phosphogypsum Indigenous Knowledge Systems Training Pottery, jewellery and glass bead projects

– business development

32 HUMAN CAPITAL DEVELOPMENT AND MANAGEMENT

Labour relations Developing and managing Human Capital MAP Programme Skills development Employment Equity Human resources administration Wellness HIV/AIDS Academic support and training Bursary programme for full-time students Bursary programme for part-time studies Work-integrated learning Internship Science, technology, engineering and

mathematics (STEM) promotion Corporate social responsibility R&D personnel data collection New programmes for 2011

36 STAFF PAPERS, PUBLICATIONS AND CONFERENCES

39 CORPORATE GOVERNANCE Board of Directors Audit Committee Internal Control Internal Audit Risk Management Human Resources Committee Technical Committee Fraud Committee Management Operational Performance Going Concern Quality, environment, safety and health

(QESH) Radiation protection programme

43 ANNUAL FINANCIAL STATEMENTS Audit Committee Report Directors Report Report of the Auditor-General Financial Statements and Notes

ibc MINTEK CONTACTS

ibc ACRONYMS AND ABBREVIATIONS

1

mintek annual report 2011 mintek global activities

Process Control Strategies

� Advanced process control and optimisation strategies for milling, flotation, and gold leaching circuits, and submerged-arc furnaces.

� Online cyanide measurement and control.

� Heap leach operator guidance software and in-heap instrumentation.

Ferrous Metals� DC arc smelting processes

for chromite, ilmenite, nickel laterites, magnetite, magnesium metal production, and metal recovery from slags and dusts.

� Iron ore beneficiation.

� Materials characterisation (physical, mechanical and corrosion properties), and failure investigations.

Uranium� Ambient, pressure, and heap

leaching, solvent extraction, fixed bed and countercurrent (NIMCIX) ion exchange, resin-in-pulp, and ADU precipitation.

� Mintek is registered as a uranium testwork facility with South Africa’s National Nuclear Regulator (NNR) and the Department of Mineral Resources.

PGMs� Design and optimisation of

integrated comminution and flotation circuits.

� ConRoast smelting technology for high-chromium low-sulphur PGM materials.

� Catalyst development for automotive, fuel cell, and industrial applications.

� Novel PGM-containing alloys, and powder metallurgical processes.

Industrial Minerals� Physical beneficiation -

comminution, flotation, gravity, dense media, electrostatic and magnetic separation, and optical sorting.

� SAVMINTM process for acid mine drainage purification. Acid-base accounting.

� Kimberlite indicator mineral investigations. Alluvial diamond provenance studies.

Mintek Global Activities Gold� Evaluation and design of

recovery circuits, carbon/resin adsorption, elution, electrowinning. Leach optimisation and heap leach/ bio-leaching amenability.

� Cyanide speciation monitoring, online cyanide measurement and control, cyanide destruction. Assistance with ICMI gap or full certification audits.

� MinfurnTM technology for granular activated carbon regeneration.

� MinataurTM all-hydrometallurgical gold refining process.

� New industrial uses for gold – catalysis, biomedicine, and nanotechnology.

�

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Base Metals� Bioleaching of copper, nickel,

and polymetallic concentrates. Heap bioleaching of low-grade chalcopyrite-bearing materials.

� Integrated circuit design for metal recovery and purification by leaching/heap leaching, precipitation, ion exchange, and SX/EW.

Capital Equipment� MinfurnTM regeneration furnace

for activated carbon in the gold processing, water treatment, and food industries.

� Gold electrowinning cell.

� DC arc furnace.

� AtomijetTM atomiser for base and precious metals.

Economic and Regional Studies

� Regional commodity-based mineral economic studies.

� Resource-based technology strategies.

� Sustainable development studies.

2

the mining value chain

The Mining Value ChainTechnologies and services developed by Mintek

1. Exploration� Geochemical sample analysis;

� Mineral/ore characterisation;

� Certified Reference Materials; and,

� Artisanal and small-scale mining (ASSM).

2. Mining� ASSM technology;

� ASSM training assistance; and,

� Mining inputs economic studies.

3. Concentration

a. Comminution/Flotation� Flowsheet design and optimisation,

and piloting;

� Plant audits;

� Ultrafine milling; and,

� Control and optimisation strategies.

4. Pyrometallurgy� Pelletisation and briquetting;� Pre-heating and pre-reduction;� DC arc process development and

piloting;� Modelling and simulation;� Submerged-arc furnace (SAF) control

strategy;� Fluidised bed and condenser

technologies;� Refractories performance

investigations;� High-temperature solid state and

phase equilibrium investigations; and,� Ore, slag, matte and alloy

characterisation.

5. Hydrometallurgy and Biotechnology

� Atmospheric and pressure leaching;� Bioleaching (refractory gold and base

metals);� Solvent extraction and ion exchange;� Electrowinning;� Process simulation;� Reagent development and evaluation;� Gold recovery by CIP/RIP;� Activated carbon regeneration;� Uranium processing expertise, and U

3O

8 recovery;

� Cyanide measurement, monitoring and auditing; and,

� Leach circuit control.

6. Refining� Gold refining and value-added

products/chemicals;

� Pyrometallurgical refining of zinc (PWG to SHG),and off-grade ferro-alloy fines; and,

� Titanium chlorination technology.

7. Value addition� New industrial applications for

gold: Catalysis; Biomedical; and Nanotechnology;

� “Smart” materials and sensors;� PGM-based superalloys;� Low-nickel stainless alloys;� Jewellery fabrication;

� Gold and platinum jewellery alloys; and,

� Identification of downstream, metals-based, economic development opportunities.

8. General� Ore characterisation, analytical and

process mineralogy;

� Certified Reference Materials;

� Materials characterisation, testing and development;

� Engineering design, manufacturing, installation and commissioning;

� Project management services; and,

� Regional minerals-based studies.

1 2 3 4

5 6 7 8

b. Physical separation� Bulk sample preparation;

� Gravity, magnetic, electrostatic and dense-media separation; and,

� Pneumatic jigging, and Mineral Density Separation.

TMr Abiel Mngomezulu

CEO, MintekMs Matshediso Ndlovu

NPC Cimpor (Pty) Ltd.Adv Derick Block

Masana Technologies (Pty) Ltd.Ms Salminah Maja

Jacques van der Merwe Maja Inc.

Mr Mohau Mphomela, Mintek Chairman of the Board.

mintek annual report 2011

Chairman’s Overview During the year, the government adopted the New Growth Path

(NGP), which forms part of its renewed efforts to create more jobs

and eradicate poverty. The NGP has identified the sector in which we

operate – mining, mineral processing and beneficiation – as one of the

six key areas in which jobs can be created. Under this new initiative

the government intends to adopt the minerals beneficiation strategy,

which aims to extract more value out of South Africa’s minerals before

they are exported, as its policy. This puts Mintek at the core of the

NGP’s priorities and it is our duty as a state-owned entity to develop

implementation plans to demonstrate how this value can be extracted.

Our strategic review process, implemented during the year, was

designed to respond to such issues.

This strategic review process also allowed us to look at the public

profile and credibility of Mintek as a research institution. We are

therefore supportive of management’s decision to streamline

Mintek’s functions to include more marketing of the organisation

and its innovations, products, services and technologies. This will

no doubt improve on the organisation’s visibility and credibility

to all stakeholders. In this regard Mintek has maintained a high

profile through presentations and papers at major research and

development, technology and mining conferences locally and

internationally.

Crucial to Mintek’s success in the implementation of our strategy,

in response to the NGP as well as to organisational and economic

challenges, is a strong political, strategic and technological

leadership.

Technical skills development is of crucial importance if Mintek is to

continue on its growth trajectory. We should also take into account,

as the year under review has shown, that skills are increasingly

becoming short in supply due to the economic upswing experienced

in industry.

Since the economic crisis, African governments such as the

Democratic Republic of Congo, Zambia and other emerging markets

THE RESPONSE TO THE GLOBAL ECONOMIC CRISIS remained a defining factor in Mintek’s

activities throughout the year. Despite the challenges we faced during that period, we are pleased that Mintek has weathered the storm and the worst seems to be over. However, we are mindful that more still needs to be accomplished to ensure that the company remains not only afloat but that it grows in strength and returns to profitability.

The Mintek board is entering its second year,

faced with the task of steering the organisation

through an exciting period in its history.

Having assumed office at a time when a

new parliament and government had just

been sworn in, our role was to ensure that

Mintek is strategically aligned with the new

government administration’s economic

imperatives and strategic direction.

Mr Paul StrengIndependent Management

Consultant

Ms Nomusa Qunta ZBQ Consulting

Mr Paul WhiteVenmyn Techno-Consulting

chairman’s overview

are aggressively pursuing investment opportunities in the mining

sector, and are also beneficiating minerals before they are exported.

This offers a window of opportunity for Mintek, using the advantage of

our global position, to offer novel technologies and methodologies for

export.

With general market conditions improving, we expect demand for

metallurgical testwork to increase, resulting in more commercial work

at Mintek, and some divisions are already working at full capacity.

Our researchers and scientists have continued to expend energy

to come up with innovative processes which will enable the mining

industry to overcome challenges posed by acid mine drainage. Such

work is at an advanced stage and adjustments were made to process

flow charts of the pilot plant during the year to achieve economic

viability of the methods used. Substantial work is being undertaken

on technologies such as sensor-based ore sorting as part of our

innovation to bring to the industry energy and water efficient mineral

processing technologies.

Taking into account Mintek’s historical capabilities in the processing

of uranium and that nuclear energy can be a cleaner and more

viable alternative to electricity generated from coal, Mintek has also

renewed its focus on the research of uranium extraction for power

generation in collaboration with the private sector. The research’s

environmental benefits also include the reduction of uncontrolled

leakage of uranium from existing gold dumps into the environment

as the technology is also designed to extract uranium from such low-

grade sources.

Our work to rehabilitate derelict and ownerless mines continued

during the year. This forms part of the Department of Mineral

Resources’ (DMR) multi-million rand effort to rehabilitate the sites to

alleviate their impact on the environment and communities that live

around them.

In spite of the challenges, the Mintek board exercised its

responsibilities effectively during the year ensuring that controls

were in place and effected for good governance. Our financial, audit,

procurement and risk management processes remain sound, and, as

such, we have received an unqualified audit report from the Auditor-

General.

In conclusion, I wish to thank the Minister of Mineral Resources, the

Honourable Susan Shabangu, and her deputy, the Honourable Godfrey

Oliphant, for their availability and political stewardship. Our gratitude

goes to our predecessors, under the chairmanship of Mr Harold

Motaung, from whom we inherited an ethical and sound organisation.

We are also grateful to the Mintek CEO, and his executive and

management team who, together with the rest of the staff, are doing

a sterling job, steering the company towards its vision to be a global

leader in mineral and metallurgical innovation.

Mohau Mphomela

Chairman

Mr Tseko NellDepartment of Mineral Resources (alternate)

Mr Mosa MabuzaDepartment of Mineral

Resources

Ms Simangele SekgobelaMugamusi Consulting


Dr Roger Paul GM: Business Development

Mr Peter CravenGM: Technology

Mr Sakhi SimelaneGM: Finance

VacantGM: Corporate Services

Mr Abiel Mngomezulu, Mintek CEO

TCEO’s Report

THE YEAR 2010/11 HAS BEEN ONE OF THE CHALLENGING YEARS in Mintek’s existence as the

effects of the global economic recession continued unabated. Despite the negative economic climate, Mintek remains a solid company and has been able to score some major achievements during the year. The fundamentals are consequently starting to normalise and the organisation is geared towards recovery and profitability. The encountered challenges could not have been overcome without sacrifice and tough decisions, especially with regard to finances and staff.As our business is mostly downstream in the mining value chain, it is obvious

that our recovery will be delayed compared to that already enjoyed by the

mining sector. It is only now that we are beginning to see an upturn in interest

and enquiries for our services and technologies from potential clients.

The demand for commercial work in the Minerals Processing (MPD) and

Hydrometallurgy (HMD) divisions, for instance, continues to increase from

the low levels experienced during the early recession and both divisions are

working at full capacity on both research and commercial work.

Financial Summary

We have seen a significant improvement in the Mintek financials during the

fourth quarter of the financial year and we believe that the trend will continue

well into next year. At the end of the financial year, our revenue was at R337-

million, reflecting a R10-million decrease compared to the previous year and

13% lower than in 2009. A concerted effort in reducing our costs resulted in

VacantGM: Research and

Development

us achieving a 2,4% saving compared to the previous year, resulting in a loss of R2,1-million this year, a first for us after the mining industry’s downturn due to the financial meltdown. Owing to the renewed interest in exploration activities, especially in the African mining sector, we can be optimistic about the future prospects.

Marketing Mintek

In our pursuit of repositioning Mintek, which is in line with our key objectives, we continued to streamline our marketing function by merging the Business Development Division (BDD), with the Minerals Economics and Strategy Unit (MESU). We hope that this will allow the restructured BDD to enhance Mintek’s visibility and credibility to all stakeholders while strengthening our sustainable development efforts and marketing Mintek’s innovations, technologies and services.

Technical Highlights

Water and energy efficiency are at the core of mineral processing technology. As a research organisation that supplies technology, services, products and know-how for the benefit of the mining and mineral processing industries, it is a Mintek imperative to come up with solutions, technologies and processes that consume less energy and water than the

current ones.

CEO’s report

In this regard Mintek sees sensor ore sorting as one of the most important

future technology shifts because of the benefits it offers to resource utilisation

as well as reduced energy and water consumption.

By physically separating the valuable and the gangue minerals upfront before

undergoing other processes, water, energy and costs can be saved. Some

ore types are low grade in their feed due to waste dilution, and therefore not

always cost-effective to process. By disposing of the waste upfront, this ore

may then become economically viable to treat.

Mintek offers a variety of separation services, such as heavy liquid separation

and dense media separation, gravity separation technologies, magnetic

separation, and sensor-based sorting.

The sensor-based sorting units stationed at Mintek are sourced from

Commodas/Ultrasort and from RADOS and are currently at pilot scale. This

robust technology is well suited for operation in more remote areas where

high-tech back-up is not readily available. An added advantage is that it

does not require water to operate. These units have generated significant

commercial interest following successful testing of samples of iron, uranium

and manganese ores.

In spite of the scarcity of water, one of the unintended legacies of extensive

mining and other downstream activities in South Africa’s mining landscape is

the phenomenon of acid mine drainage (AMD). If left untreated, contaminated

water from old mining operations will have a major negative impact on the

potable water supply and the environment if this is allowed to seep through

unmanaged into ground water supplies. In an effort to treat the AMD water,

Mintek developed the SAVMIN process in the late 1990s. This culminated

in the commissioning of a demonstration plant in 2007. However, like all the

other AMD technologies, the viability of the SAVMIN process was put into

question by high capital and operational costs. During the year under review,

Mintek re-engineered the SAVMIN process to include certain changes to the

flowsheet to overcome deficiencies in the technology encountered during

on-site, large-scale trials conducted during the preceding year. Preliminary

studies have indicated that these modifications could result in capital and

operational cost savings of up to 50 per cent. Mintek continues to work with a

Mintek Organogram 2010

CEOAbiel Mngomezulu

TECHNOLOGYPeter Craven

RESEARCH & DEVELOPMENTVacant

FINANCESakhi Simelane

CORPORATE SERVICESVacant

ANALYTICAL SERVICESMonde Mtakati

PYROMETALLURGYTom Curr

INFORMATION & COMMUNICATIONSHaveline Michau

FINANCEHester Pretorius

SMALL-SCALE MINING & BENEFICIATIONNirdesh Singh

MINERALS PROCESSING Alan McKenzie

BIOTECHNOLOGY Petrus van Staden

HUMAN RESOURCES & TRAINING Makgomo Umlaw

MINERAL ECONOMICS & STRATEGYDr Marian Lydall (acting)

BUSINESS DEVELOPMENTVacant

MEASUREMENT & CONTROLPaul Brereton-Stiles

ADVANCED MATERIALSDr Elma van der Lingen

HYDROMETALLURGYDr Dave Hulbert

ENGINEERING SUPPORTPaul Rannachan (acting)

MINERALOGYNosiphiwo Mzamo

ESTATE MANAGEMENT SERVICES Muzi Ntombela

BUSINESS DEVELOPMENTDr Roger Paul

French-based leader in water and waste water treatment technologies, Veolia

Water Solutions and Technologies, to improve and optimise SAVMIN process

to a level that will enable economically viable commercial applications. Plans

are to complete a large pilot plant campaign before the end of 2011.

The supply of electricity remains one of the major issues affecting the mining

and mineral processing industries and it is likely to remain so for some years

to come. In early 2010, Eskom announced that the margin between electricity

supply and demand is going to be very slim at times over the next five years.

The power utility states that the most critical period is the next two years,

before the first units of the new Medupi Power Station become operational.

On the other hand, the cost of electricity continues to soar and has a

major impact on how Mintek – and industry at large – runs its business

and processes. Mintek is in discussion with a company interested in the

generation of electric power from the energy of molten slags from the

ferroalloy industry in South Africa. Considerable potential exists in this area

in that typically 30% of the electric power supplied to a ferroalloy furnace is

lost in the form of molten slag which is simply dumped and allowed to air-

cool or, worse, is water-cooled.

South Africa is currently rethinking the way it generates electricity. Mintek

views nuclear energy as a viable alternative to future energy generation.

It is against this background that we have renewed our focus on uranium

processing for nuclear power generation. The primary target is to develop

more cost effective technologies to extract uranium that would render more

South African deposits and existing gold slimes dams economically viable.

The focus is also on low-grade sources such as gold dumps in order to reduce

the uncontrolled leakage of uranium into the environment. In this regard,

the pilot plant of the MetRIX continuous resin-in-pulp (RIP) process for

recovery of uranium was commissioned at Harmony’s No1 Shaft near Welkom

in the Free State Province towards the end of the financial year. Mintek,

in collaboration with Bateman, developed the process and preliminary

feasibility studies that have indicated that this route would be much more

cost effective than the conventional treatment options. The process is also

generally more cost effective for uranium recovery from lower grade ores and

large throughput. The project is currently being reviewed by Harmony.


Mintek continues to pursue toll smelting opportunities for the Bay 2 furnace, which was shut down in March 2010 with the conclusion of the successful ConRoast DC arc smelting campaign. Jubilee Platinum, Mintek’s partner in the development of the technology, is forging ahead with its plans to construct a 5 MW smelter in Middelburg, Mpumalanga, and Mintek will continue providing technical advice to Jubilee as and when needed. Jubilee has demonstrated a huge potential for job creation during the construction and commissioning phase of the smelter. It is expected that during the latter part of 2011 at least sixty people will be employed at the smelter site alone. Mintek is currently looking for partners to further improve the product derived from this technology.

As the effects of the recession are seen to be wearing off, Mintek is beginning to experience an upturn in the request for commercial work, products and services. Here are some of the examples.

� Following successful small-scale work on a Canadian chromite project, the project developers commissioned Mintek to undertake additional large scale mineral processing and pyrometallurgical extensions to this work, worth over R10-million.

� Work on the EN403 fire escape mask, that uses gold based catalysts, has brought the prototype product to near completion. AngloGold Ashanti has signed up for sponsorship for 2011 to continue with Project AuTEK Catalysis.

� Mintek’s Xanthoprobe online Xanthate measurement instrument which has been under development for the past few years, has been undergoing a trial at an industrial site since early 2010. During the course of the year several improvements were made to the system, including a software upgrade and an improved filtration system.

� A continuous pilot plant test, to demonstrate the feasibility of DC open-arc operation with a self-baking electrode was successfully completed. This has the potential to substantially reduce the electrode costs of DC arc furnaces as well as increase its operating efficiency. Mintek is participating in a project which proposes to scale this concept up to a 10 MW furnace.

� The Analytical Services Division developed a method for analysing rare

earths with a quicker turnaround time using inexpensive consumables.

Sustainable Development

The Small-Scale Mining and Beneficiation (SSMB) division’s training

efforts were successfully concluded and culminated in various graduation

ceremonies across the country. A total of 86 learners, including learners with

disabilities, received certificates at the conclusion of eight pottery projects

funded by the North West provincial government’s Department of Education.

Eighty-nine learners, who were trained in modules related to small-scale

mining and funded by the Mining Qualifications Authority (MQA), also

received certificates of competency in five provinces.

The NRF-funded research that forms part of the South Africa-Kenya bilateral

partnership, was strengthened with a visit by two senior SSMB staff to the Moi

University in Kenya. The objective of the research undertaken is to improve

agricultural productivity using low cost native phosphate rock sources,

increase local output, nutrition and agricultural competitiveness.

The construction of a wall at Prieska, in the Northern Cape Province, under

the Department of Mineral Resources’ (DMR) derelict and ownerless mine

project, has been completed and five further projects have been identified

for rehabilitation in the next financial year, while continuing with work at

Penge, Osizweni, Heuningvlei and Lusikisiki. This is after Mintek was awarded

a follow-up contract with the DMR to the value of R30-million to cover the five

sites. A further R60-million has been allocated for similar projects over the

next two years.

Mintek, in partnership with Szent István University, in Hungary, intends to

extend the study period and launch the renewable energy applied research

programme designed to focus on mining applications. This is part of the South

Africa–Hungary Renewable Energy Research programme, that is funded

by the NRF to promote the substitution of fossil fuel-based energy with an

alternative source of energy for equipment used in mining applications.

People

At the end of the period under review, our total staff complement is slightly

higher at 779, compared to the previous year at 769. However, the staff

turnover rate increased to 12 per cent from 7.3 per cent in 2009/10.

050,00 0

100,000150,000200,000250,000300,000350,000400,000450,000500,000

2010

Year

R000

Total income (real)

Total expenditure, (real)

Income trends, 2001 - 2011

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

CEO’s report

The increase in the staff turnover rate can be attributed to resignations

of skilled personnel taking advantage of the upturn in the economy –

contributing a third (4 percentage points) of the total turnover – and the Bay 2

retrenchments effected during the year.

The MPD, HMD and MESU divisions were the most adversely impacted by

resignations from relatively experienced staff. The temporary stoppage of

tolling in Bay 2 furnace has created redundancies in the Pyrometallurgy

division (PPD). Following extensive negotiations with the National Union of

Mineworkers (NUM), Mintek took the very difficult decision to retrench 39

workers. The retrenchments were effected after taking into consideration

the financial loss and the fact that the affected employees, at the time, had no

alternative work to do at Mintek. However, several measures continue to be

undertaken to return these ex-staff members to service at Mintek.

Mintek participated in the Deloitte’s “Best Company to Work For” survey,

which is conducted every three years. Mintek will leverage off the strengths

identified and take advantage of opportunities for improvement by

streamlining human resources processes and procedures.

Quality, Environment, Safety and Health (QESH)

We understand that accidents, illnesses, and off-sick days directly affect

the business efficiency, morale and profit and that maintaining a healthy

workforce translates into more productive employees and a greater well-

being for the company. During August 2010, QESH management systems

underwent a combined surveillance audit against the requirements of

ISO 9001:2008 (Quality), ISO 14001:2004 (Environmental Management)

and OHSAS 18001:2007 (Safety and Health) and has been recertified by

accredited independent external auditors to meet the requirements of

quality, environmental management, safety and health. A Radiation Protection

Programme (RPP) has been incorporated as part of the overall Safety,

Health, and Environment programme, and an internal audit schedule has

been implemented to ensure that the RPP remains relevant and is updated

as approved by the National Nuclear Regulator (NNR). The Lost Time Injury

Frequency Rate (LTIFR) remained below the target of 1 for the year.

HIV/AIDS

We conducted an HIV/AIDS prevalence survey, the results of which will assess

whether Mintek has been able to prevent the spread of HIV in the company.

Similar surveys in 2004 and 2007 indicated a prevalence rate of 7.8 per cent

and 8.7 per cent respectively.

Acknowledgements

In conclusion, I would like to thank the Honourable Minister Susan Shabangu

for always making herself available when we need her and for her guidance

with her team. A special welcome to the Honourable Deputy Minister Godfrey

Oliphant who we hope will bring fresh ideas with him. I would also like to

thank Mr Mohau Mphomela and the entire Board for the effort they have put

in trying times. To customers, suppliers and all Mintekkers, I can only say

let us remember that indeed we are running a marathon, which demands

endurance, stamina, a refusal to be defeated even by the most difficult parts

of the course, and the need to always keep our eyes on the noble goal we are

pursuing.

Abiel Mngomezulu

CEO, Mintek

7% 4%

24%

11% 19%

20%

15%

Occupational Categories

Clerks

Craft and related trades workers

Elementary occupations

Legislators, senior officials and managers

Plant and machine operators and assemblers

Professionals

Technicians and associate professionals

Business Development

Estate Managment Services

Executive Management

Finance

Hydrometallurgy

Information and Communications

Minerals Economics and Strategy Unit

Small-Scale Mining and Beneficiation

Advanced Materials

Analytical Services

Biotechnology

Engineering Services

Human Resources

Information Technology

Measurement and Control

Mineralogy

Minerals Processing

Pyrometallurgy

Quality, Safety, Health and Enviroment

Employment by Mintek Divisions

Awards and Recognition

DURING 2010 A NUMBER OF MINTEK RESEARCHERS received national and international recognition for their work. They were also recognised at Mintek for their contribution in making the organisation a research centre that can be reckoned with the best in the global R&D industry.

Mintek recognised and awarded outstanding

achievements of its staff through its Apex Awards

in five categories as follows:

� Technical Innovation — could ultimately lead

to commercial application.

� Procedural Innovation — improved quality

and cost-effectiveness.

��Development — successful demonstration that

could lead to technology transfer.

� Commercialisation — income well above

budgeted targets.

� Technology Transfer — product or process

successfully transferred to industry.


Dg

DURING 2010 A NUMMINTE REnational anrecognitiwere

SONESTIE JANSE VAN

RENSBURG received

Mintek’s Apex Award for

her work on the Advanced

Leach Facility, which uses a

technique that is set to form a

key part of the gold testwork

service due to be expanded

at Mintek.

THE PYROMETALLURGY DIVISION’S CONROAST

TEAM — (from left to right) Rodney Jones, Quinn

Reynolds, Tom Curr, Isabel Geldenhuys and Glen Denton

— were finalists at the National Science and Technology

Forum (NSTF) Awards 2010. Rodney Jones, Quinn

Reynolds and Isabel Geldenhuys were awarded a SAIMM

Certificate of Merit for their paper entitled “Recovery of

base metals and PGMs in a DC alloy-smelting furnace”.

Rodney Jones was also awarded Honorary Life Fellowship

by the SAIMM.

THE ADVANCED MATERIALS (AMD) AUTEK BIOMED TEAM — comprising (from

left) Dr Salerwe Mosebi, Telisha Traut, Dr Judy Coates and Dr Raymond Hewer — received

Mintek’s Apex Awards for its work on the development of an HIV-1 integrase assay kit.

Telisha Traut also participated in the 2010 SA Akademie vir Wetenskap en Kuns (SAAWK)

Student Symposium and her presentation titled, “The design and synthesis of promising

pyrole-carbaldehydes as potential HIV-1 integrase inhibitors”, was adjudged the third best

under the Chemistry Section.

THE AMD-DST/MINTEK NANOTECHNOLOGY INNOVATION

CENTRE (NIC) TEAM — comprising (from left) Dr Ndabenhle Sosibo,

Dr Rory Brimecombe, Dr Phumlane Mdluli, Busiswa Dyan and Dr Robert

Tshikhudo — received Mintek’s Apex Award for its development of

nanotechnology-based TB and Malaria point-of-care diagnostics kits.

THE CYNOPROBE TEAM AT MEASUREMENT AND CONTROL

DIVISION — comprising (from left) Waseem Ahmed, Stefan Smit, Vikash

Arjun, Wendy van der Merwe, Bart Groeneveld and Aobakwe Motlhake

— received a Mintek Apex Award for commercialisation of Cynoprobe

units, which accurately and reliably measures concentration of free

cyanide in gold leaching circuits.

MORORE MPHAHLELE’s work entitled “Inhibition of HIV-1 reverse transcriptase activity by gold-based compounds”, scooped one of the two Chairman’s Poster Awards at the HIV DART Conference 2010, an international HIV and Aids research conference in Mexico.

CHRIS FLETCHER from the AMD received a Merit Award on behalf of Mintek from Vaal University of Technology for “consistent attainment of a standard of excellence in Mintek’s participation in and practice of Cooperative Education”.

awards and recognition

JOHN NEALE, MARIEKIE GERICKE AND PETRUS VAN STADEN

(from left to right) from the Biotechnology Division received a silver-

category award from the Southern African Institute of Mining and

Metallurgy (SAIMM) for their paper entitled “A Mintek perspective of

the past 25 years in minerals bioleaching”, published in The Journal

of The Southern African Institute of Mining and Metallurgy Vol. 109 of

October 2009.


Mintek in Brief

Profiles of the operating divisions

THE ADVANCED MATERIALS DIVISION (AMD) develops cost-effective metal-

based materials through value-addition to South Africa’s most strategic metals and minerals (precious,

ferrous and base) for use in the fields of biomedical, catalysis, nanotechnology and metallurgy. AMD is

a research orientated division with more than seventy per cent of the permanent staff holding post-

graduate degrees. The division has strong interactions with local and international higher education

institutes (HEIs), and a healthy bursary pipeline. The division’s funding is primarily derived from large

governmental programmes as well as projects in collaboration with industrial partners.

THE ANALYTICAL SERVICES DIVISION (ASD) provides analytical support to the

other technical divisions at Mintek, as well as high calibre analytical services to external clients in the

mining and minerals processing sectors. The division comprises three main service groups, based

on different analytical techniques. These are the PGM Group (milling, fire assay and trace-ICP, geared

around the determination of the platinum group metals), the Sample Preparation Group (including ICP-

OES, ICP-MS and AAS), and the Chemistry and X-Ray Fluorescence Group.

BIOTECHNOLOGY (BIO) seeks to apply microbial processes to address minerals related

industrial challenges. A prominent and internationally recognised position has been established in the

field of bioleaching of sulphide minerals in agitated media, and in heaps. The division has historically

had a strong international focus dictated by the location of sulphide ores, but has more recently

involved itself to a greater extent with South African and southern African applications of minerals

biotechnology. To this end the research base is being expanded to include topics of more generic

interest such as the bioremediation of effluents from mines and processing plants, and the biosynthesis

of new value-added minerals products and environmentally friendly minerals processing chemicals.

This involves greater interaction with other local institutions and broadens the research funding base.

THE ENGINEERING SUPPORT DIVISION (ESD) primarily supports the other

Mintek technical divisions by providing engineering support services which are outside the

competency of the routine maintenance function. In addition to providing this internal support, ESD

also designs and fabricates engineered equipment and systems based on Mintek technology for

external clients. ESD has the responsibility for marketing and implementing a specialised range of

Mintek technologies. The division maintains a core group of specialised skills which it supplements

with external resources when necessary.

THE HYDROMETALLURGY DIVISION (HMD) develops and tests appropriate

flowsheets for the recovery and refining of metals from ores and concentrates. General market

developments provide the trigger for the development work done. Currently the biggest industry

demand for hydrometallurgical test work is around uranium, base metals and gold, which provides a

strong stimulus for further development of novel technologies in these areas. Strategic development

focuses on areas considered to be important for the future of sustainable development of South Africa’s

mineral wealth, for example novel rare earth recovery techniques, the recovery of uranium from low

grade ores and acid mine water treatment.

mintek in brief

MEASUREMENT AND CONTROL (MaC) strives to assist the mineral industry in

addressing the challenges of increasingly low grade and complex ores, cost effectiveness, energy

efficiency, and minimising impact on the environment through the development of specialised

instruments, intelligent process monitoring tools, and dynamic process optimisation control products.

MaC develops, demonstrates, and implements advanced process control technology to enhance the

competitiveness and sustainability of flotation, milling, leaching and smelting mineral processes where it

is regarded as the world leader. Apart from South Africa, the division has a particularly strong presence

in South America (Brazil, Chile, and Mexico), India, and Australia.

THE MINERAL ECONOMICS AND STRATEGY UNIT (MESU) provides a selection

of services to local industry and state departments, as well as to the other Mintek divisions. The knowledge

and skills within the division allows MESU to continue providing support services to international agencies,

and where required, governments and companies which operate elsewhere on the continent. MESU continues

to provide insight into all parts of the mining and minerals value chain and is establishing competence in

facilitating the rehabilitation of derelict and ownerless mines across South Africa.

THE MINERAL PROCESSING DIVISION (MPD) undertakes desktop, laboratory and

pilot plant scale studies to develop detailed flowsheets for the effective comminution and upgrading of

ore to a concentrate or final product. The work falls into the three main disciplines, namely comminution

(crushing and milling), physical separation and flotation. The work of the division can be described as

falling into two main categories; feasibility tests and incremental improvements to existing plants and

flow sheets.

MINERALOGY (MNL) applies the principles of mineral characterisation to understand the

processing behaviour of those minerals, thus empowering metallurgists and engineers to obtain

optimum recovery and grade in mineral beneficiation. Further to this, mineralogical characterisation is

applied to geological exploration, mine planning and remediation efforts, such that the entire spectrum

of the minerals industry is served by the discipline of applied mineralogy. The division’s commercial

activities focus on identifying minerals or materials, and interpreting the data with respect to evaluating

a deposit, beneficiating the ore, providing vital information for process design, as well as on-going

support with mineral industry trouble shooting, analysing metallurgical products, and dealing with

environmental issues.

THE PYROMETALLURGY DIVISION (PDD) develops new and improved high

temperature processes using theoretical calculations, laboratory and pilot plant equipment. A particular

area of expertise is the use of DC arc furnaces for the smelting of ores and concentrates. This expertise is

supported by a range of pilot plant DC arc furnaces capable of smelting at up to 3 MW continuously over

periods exceeding a year and treating up to 20 000 tonnes per annum of feed materials.

SMALL-SCALE MINING AND BENEFICIATION (SSMB) is a diverse division of

multi-skilled professionals that address issues related to the small-scale mining industry. Areas covered

are extractive technologies in small-scale mining, beneficiation of resources, training, sustainability

and environmental matters. SSMB’s beneficiaries include both existing and aspirant small-scale mining

operators and crafters that use mineral and metallurgical resources as a raw material. SSMB supports

Small, Medium and Micro Enterprises (SMMEs) in the mineral sector by identifying economically viable

opportunities, providing access to appropriate technologies, and providing training and incubation.

mintek annual report 2011mintek annual report 2011

Mintek is strongly committed to delivering high-quality results within

strict schedules irrespective of budgetary constraints. To this end, our

engineers, scientists and technicians work in close liaison with clients

and their engineering contractors, who are encouraged to actively

participate in project planning and testwork. This interaction enables

clients to discuss issues as development work moves forward, and

increases Mintek’s own capabilities by drawing attention to areas that

require focused and applied R&D. The newly acquired knowledge is

then fed back into client-oriented services.

Mintek also undertakes medium- and long-term strategic applied R&D, which is aimed at building the organisation’s science and technological base and developing new technologies and products for the benefit of the mining industry. This activity is funded mainly by the State Science Vote (Parliamentary Grant) to Mintek as a Science Council, and also through supplementary sources such as bilateral agreements and other funding and donor agencies. Most of the projects in this category are undertaken as joint ventures or in collaboration with other research institutions, universities, professional

bodies and industry partners locally and internationally.

MResearch, Development and Technology

MINTEK PROVIDES WORLD-CLASS RESEARCH AND DEVELOPMENT (R&D) expertise, testwork, and process optimisation for the precious and base metals, ferrous metals and alloys, industrial minerals,

rare metals and uranium sectors in South Africa and internationally. The activities range from initial bench-top investigations to full process flowsheet development and the design, construction, commissioning, and optimisation of industrial plants.

2

research , development and technology

AuAGold IndustryWater and waste management

With an improvement in the gold price and the long term positive view of the market, Mintek has initiated development work around sustainable processing of refractory ores, through the Hydrometallurgy Division (HMD). This requires a fresh look at current operational developments that include environmental sustainability issues, energy consumption as well as normal operational requirements. The work to be undertaken is aimed at reinforcing South Africa as a leader in gold metallurgy. This will help the local gold mining industry to obtain approval for and develop projects based on sound water and waste management and optimised energy efficiency whilst still maintaining the best achievable process efficiency. As the projects are situated across the world, this work will also boost the technology export sector.

Nanoscience and nanotechnology

The Biolabels Unit, within DST/Mintek Nanotechnology Innovation Centre (NIC), which is hosted in the Advanced Materials Division (AMD), has synthesised a number of bioconjugate systems as anti-angiogenesis agents for a collaborative project with the University of Pretoria (UP). These gold nanoparticle-therapeutic systems have been successfully tested at the pre-clinical phase as anti-angiogenesis agents. The group also prepared several systems as agents for

the obesity research programme with the University of the Western Cape/Medical Research Council (MRC). Some of these systems have been scaled up to reach a 1L scale. Towards the development of lateral flow point-of-care (POC) tests, the group has been successful in developing tuberculosis (TB) and malaria test kits which passed the internal validation stage using real samples.

Gold nanoparticles produced at Mintek have been added to the Organisation for Economic Co-operation and Development’s (OECD) global list of manufactured nanoparticles to be considered for detailed risk assessment both nationally and internationally. The gold nanoparticles have become the centre for the Department of Science and Technology’s (DST) Health Safety and Environment (HSE) risk assessment programme led by Mintek and the National Institute for Occupational Health (NIOH). The Biolabels team received a 2010 Mintek’s Apex Award, under the development category and was a finalist in the National Science and Technology Forum (NSTF) awards.

MetallomedTM

MetallomedTM, which originated from AuTEK Biomed, includes the expansion of research activities to other metal centers in addition to gold. Since inception, AuTEK Biomed, a joint venture between Mintek and Harmony Gold Mining Company Limited, has grown

2

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from a programme focused on gold-based

therapies for cancer to a diverse research

team investigating metal-based therapies for

cancer, HIV, and malaria. The core team at

Mintek focuses research efforts on anti-HIV

therapies, and is supported by five university

groups, which are the University of Kwazulu-

Natal, the University of the Witwatersrand, the

University of Johannesburg, Rhodes University

and the University of Pretoria, while the

majority of the cancer and malaria research

takes place at four local universities,i.e.

University of Kwazulu-Natal, the University

of the Western Cape, the University of Cape

Town and the University of Johannesburg.

Further to local efforts the team collaborates

with eleven research groups abroad, including

the University of Birmingham, the University

of Sassari, the University of Zaragoza, the

University of Heidelberg, the University of

Jena, Emory University, London School of

Hygiene and Tropical Medicine, the University

of Central Florida, the Department of

Medicine San Francisco, Lund University, and

Oakland University.

A number of bioconjugate systems have been been synthesized by the Nanotechnology team.

Metallomed TM launched two products under the tradename AuroPure.

79

AuGold

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MetallomedTM launched two products into

the market in September 2010 under the

trade name AuroPureTM in partnership with

the local distributor Biocom Biotech. This

achievement was recognised through Mintek’s

annual excellent achievement awards where

members of the team received Mintek’s 2010

APEX Award in the category Technology

Transfer for the development of an HIV-1

AuroPureTM integrase assay kit, and was

also nominated for a National Science and

Technology Forum (NSTF) award. The launch

of the products was closely followed by the

commissioning of a commercial HIV screening

service in October 2010.

The research team at Mintek continues to

focus on developing new assays, the rational

design of novel inhibitors for specific HIV

targets, elucidating the mechanism of action

of gold-based compounds and screening of

compounds for potential activity.

Biological assays are used to evaluate novel

compounds and provide decision-enabling

data. Due to the increasing complexity and

scientific advancements in the field of HIV-1 drug

discovery, it remains necessary to continually

implement new assays. To this end, the in-

house research team has optimised several

assays to be used for the identification

of inhibitors of enzyme activity and viral

replication. Notably, an assay to identify

inhibitors of resistant HIV-1 integrase mutants

has been developed which will enhance

in-house capabilities and will extend the

AuroPureTM range of products. Additionally, a fluorescence cell-based infectivity assay has been developed which is amenable to high throughput and will expedite the process of evaluating potential inhibitors.

Catalysis

In Project AuTEK Catalysis, the aim of the research work is the increased industrial usage of gold through application of gold-based catalysts. AuTEK Catalysis has been in existence since 2000 as a joint venture between Mintek and AngloGold Ashanti. In 2009/2010, the AuTEK gold catalyst production plant was fully commissioned and the automated pH control system installed. In addition a rotary kiln was installed as one of the unit operations in the production process. This year (2010/2011) approximately 50 kg gold catalyst was produced and sold to industrial application developers and several kilograms were sold to STREM Chemicals Inc. in the USA, Mintek’s distribution partner for small (less than 2 kg per customer per year) quantities of the AuTEK AUROliteTM range of gold catalysts. The in-house product development of an EN403 compliant fire escape gas mask has brought the gas mask cartridge, that contains a gold-based catalyst, to the point where it meets the performance specification. However, final modification of the gas mask design is required to meet the storage specifications before the mask is sent for independent certification.

Commercialisation of the gas mask will

proceed in collaboration with Spirotek,

which is a local small, medium, and micro

enterprise (SMME). Other areas of application

development include glycerol (a by-product of

bio-diesel production) and ethanol oxidation

to more valuable products using gold

catalysts. Here the technical feasibility of the

processes has been demonstrated, but certain

process variables must be optimised to fully

construct a conceptual plant design that will

complete the techno-economic evaluation of

these processes. Once a more complete value

proposition is obtained, industrial partners

will be sought.

A research project under the DST’s Advanced

Metals Initiative (AMI) involves a three-

way collaboration between Mintek, Sasol,

and Cardiff University, where each partner

is investigating different aspects of a gold

catalysed process for the epoxidation of

propene to propene oxide, which is a highly

valuable intermediate chemical in the

chemicals industry. At this stage both gas

phase and liquid phase processes are being

studied.

BacoxTM process

Exploration activities are generally expected

to increase in the coming financial year

compared to 2011, and given the recent

upward trend in the gold price it is no

surprise that the number of enquiries for the

Bacox™ technology for treating refractory

gold ores has also increased lately.

22

An AuTEK AUROlite TM gold catalyst solution. �� The Metallomed TM��continues to focus on development of new assays.


PtPPlatinum Group Metals (PGM) Industry Improved Grinding Media

In the 2010 annual report, Mintek stated that the project sponsored by the DST-Technology Innovation Agency (TIA) to develop a cheaper and more cost-effective grinding ball for use in the PGM industry had progressed to the Marked Ball Test (MBT) experiments. This year, the tests were carried out in one of the grinding mills at Anglo Platinum’s Union Mine concentrator in the North West Province. The MBT experiments commenced in July 2010 and were completed in January 2011. The results are currently being evaluated in order to select one or two best performing alloys, one of which will proceed to Full Mill Charge (FMC) trials. Efforts are already in progress in preparing the technology for commercialisation in partnership with a consortium partner, Prima Foundries.

Catalysis

The development of platinum-based catalysts for fuel cell application remains the area of focus for the Catalysis Group at AMD. In this programme the Catalysis Group was appointed as a Centre of Competence in Hydrogen Catalysts -- Hydrogen South Africa (HySA)/Catalysis -- co-hosted with University of Cape Town (UCT) as part of the

DST’s national flagship project in hydrogen and fuel cell technologies development. In 2010, a high resolution transmission electron microscope (HRTEM) that is used to characterise catalysts and other nano-materials, was installed and a fuel cell testing laboratory which will be used for the development of fuel cell electrodes and stacks, was completed. Development work

has produced “bench top” quantities (~50 g) of catalyst per batch that match, at least in standard electrochemical characterisation tests, the performance of commercially available catalysts. These materials will now be validated in both hydrogen and direct methanol fuel cells before scale-up of the production to more relevant commercial quantities per batch is undertaken.

A programme, which falls within the Precious Metals Development Network (PMDN) of the AMI, is also underway. Here one project is aimed at the scaled-up production of PGM-based catalysts and PGM bimetallic catalysts. Catalyst development and marketing will be a collaborative effort between Mintek and Platinum Beneficiation Technologies, which is a local SMME. To date Mintek has commissioned two industrial sized rotary evaporators used in catalyst production and has developed a process for the scaled-up

2

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production of a proprietary palladium-gold catalyst. More than 11 kg of this catalyst has been supplied to a USA-based institute, Rice University, for in-field evaluation of the catalyst for hydrodechlorination at a chloro-organics contaminated ground water site in the USA.

Analytical Science Symposium

In February 2011, Mintek’s Analytical Science Division (ASD) successfully hosted a symposium on analytical science, specifically focused on PGMs and base metals. A number of South African and international academics, scientists, university students, equipment suppliers and various other players in the

mining technology sector attended the event.

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78

PtPlatinum

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Taking into account that Mintek -- as the

centre of technological innovation for the

mining industry -- is constantly faced with

analytical challenges on a wide variety of

PGM ore types, the symposium aimed to

bring together the different fraternities

of the mining sector to share and equate

analytical procedures. The event will be

hosted annually, and although the first one

was dedicated to PGMs, future symposia

will be on various other topics of interest to

analytical science as related to mining and

metallurgy.

This is in line with ASD’s commitment and

objective to provide a fast and effective

analytical service to Mintek, as well as to

grow the number of the external clients it

services. Currently about half of all service

work is directly carried out for external

customers and Mintek intends to grow

this figure significantly in the coming few

years.

Tomography

The Mineralogy division (MNL) has

explored the potential application of

X-ray micro-computed tomography for 3D

mineral characterisation, with the aim to

provide this expertise at Mintek in the next

two to three years. Collaborations have

been established with the Nuclear Energy

Corporation of South Africa (NECSA)

and commercial clients towards building

MNL’s competency in this relatively

new technique in the minerals industry.

Furthermore, international relations have

been established with the University of

Utah, a leader in the technology, thus

adding value to Mintek’s endeavours

in this field. A variety of ores are being

characterised using the technology,

including PGM, gold, uranium and base

metal ores, with respect to geological and

processing applications.

PGM processing software

Mintek has also developed a new software

application that predicts the response

of PGM samples to froth flotation using

the results from an automated SEM. The

application examines the mineralogical

data on a grain-by-grain basis, taking

into consideration mineral flotability

parameters that are set in the user

interface before the calculation is begun.

It then produces an output that highlights

the metallurgical properties of the PGM-

bearing particles in tabular and graphical

format, including quantitative information

on the potential recovery, the reasons for

recovery losses, particle size distribution,

and grouping of valuable species.

ConRoast Development

Jubilee Platinum, Mintek’s partner

in the development of the ConRoast

process to smelt high-chromium PGM-

bearing materials, is forging ahead with

the building of a 5 MW smelter. The

company has already identified a site for

construction of the smelter in Mpumalanga

and the Pyrometallurgy Division (PDD)

continues to provide technical advice or

laboratory scale amenability testing as and

when required.

2

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FeFFerrous Metals Industry

Technical support for the foundry

industry

In the 2010/11 financial year Mintek was

selected by the Department of Science

and Technology (DST) as an implementing

agency for its Technology Assistance

Programme (TAP). The programme forms

part of the government’s localisation

strategy where the broader South African

industry is being encouraged to benefit

from the major capital equipment projects

that are currently going on in some of the

key sectors of the economy. The DST-TAP

programme aims to specifically assist the

South African foundry industry in closing

some of the key technology gaps that were

found to undermine its competitiveness, in

comparison to the global industry. Against

this background, Mintek was awarded a

funding of R13-million to assist 27 selected

foundries in resolving the technical

challenges.

Ferrous Metals Research and

Development

Mintek, through AMD is the co-ordinator of

the Ferrous and Base Metals Development

Network of the DST’s Advanced Metals

Initiative (AMI). The FMDN aims to promote

R&D in ferrous and base metals with the

ultimate aim of adding value to several

of South Africa’s minerals. The R&D

programmes are executed in collaboration

with industry, academia and other science

councils. Two sub-programmes — metal

dusting corrosion and lightweight steels for

cost-effective transportation — are on-going,

and includes three Ph.D. students and one

M.Sc. student.

The Metals Technology Centre (MTC)

Mintek is continuing to expand its

capabilities around materials-related issues

in the petrochemical industry. The aim is to

establish reliable test methods to assess the

structural integrity (engineering properties

and performance) of aged plant materials

exposed to elevated temperature service.

The outcomes from these studies will be

used to help meet today’s most advanced

concepts in design and service, life

assessment, fitness-for-service, reliability as

well as safety. In addition, the MTC continues

to be the only facility in South Africa that

offers service in the investigation of the

susceptibility of alloys to corrosion and

hydrogen-induced cracking (HIC) under

the “sour” environment that are commonly

encountered in the petrochemical industry.

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Power generation

Discussions are in progress with a company

interested in the generation of electric

power from the energy of molten slags

from the ferroalloy industry in South Africa.

Considerable potential exists in this area

in that typically 30% of the electric power

supplied to a ferroalloy furnace is lost in the

form of molten slag which is allowed to cool

to room temperature by air or water – the

latter posing a challenge in relation to water

efficiency and possible contamination issues.

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26

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CuCBase Metals IndustryCopper and cobalt electrowinning

An important research area for Mintek is

the processing of ores and concentrates

containing copper, nickel and cobalt.

Almost all of this work supports projects

in Botswana, Zambia, and the Democratic

Republic of Congo (DRC), and more recently

Tanzania. These ores are often complex

and difficult to treat for reasons relating

to grade, mineralogical occurrence, the

chemistry of the host minerals and others.

The current market trend is to produce an

intermediate concentrate in Africa, which is

shipped to refineries in Europe and China.

This is mainly due to challenges relating

to complexity of the refining technologies,

high consumption of the reagents and the

poor transportation infrastructure. Taking

into account that it is undesirable to export

raw materials, Mintek is developing more

cost-effective technologies to produce value-

added cobalt products, and to recover and

recycle reagents. This is aimed at alleviating

the transport challenges and reduction of the

environmental impact of the residues.

Direct cobalt electrowinning from dilute

leach liquor might be significantly more

cost effective than producing intermediate

products, such as carbonate or hydroxide

salts. Preliminary work at Mintek indicates

that this might be a viable option as

there would be major savings on reagent

consumptions as well as the transport costs

of the final product, although the energy

consumption would be higher. In the case of

direct electrowinning a product of greater

than 95% cobalt can be produced. This is

significant since the highest cobalt content

that a salt can produce is around 42%. Mintek

is currently conducting some optimisation

testwork and a preliminary feasibility study

will then be conducted with the currently

preferred processing route. Furthermore

in the DRC, a major producer of cobalt

and copper in Africa, a salt is no longer

considered as a final product and companies

are required to produce a metal product for

export. Reagent recycling will become more

widely studied in future to limit operating

costs, and also the liabilities created by

plant effluents. Mintek has done some initial

work on the recycling of hydrochloric acid

(HCl) and magnesium oxide (MgO) for base

metal flowsheets, with promising preliminary

results.

Heap leaching of uranium and copper

ores

A strong focus of the Biotechnology

Division (BIO) has been the heap leaching

of uranium- and copper-bearing ores. For

the high-temperature heap bioleaching of

copper ores, the biology of heap-bioleaching

2

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has been studied extensively, and BIO

holds proprietary equipment and software

for the simulation and management of the

process. In order to place heap leach design

on a more fundamental footing (for any of

the relevant metals), specialist equipment

is being procured for geomechanical

measurements on tall crushed ore piles.

Furthermore the gangue chemistry of

whole ores is under study with the aim of

providing calculated estimates of long-

term reagent consumption, drainage liquor

composition and in-heap precipitation from

small-scale tests that can be conducted at

the earliest stages of a feasibility study. To

this end discussions have been extended

to local universities – and in particular the

Tshwane University of Technology (TUT),

with whom the signing of a memorandum of

understanding (MOU) is being negotiated.

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29

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UUIndustrial Minerals, Uranium, New Metals and Diamond IndustryUranium processing

In the developments around uranium

processing, it is one of Mintek’s priorities

to develop cost effective technologies for

uranium extraction from southern African

sandstone-hosted deposits, and from the

existing gold slimes dams. Although South

Africa holds about 7 per cent of the world’s

uranium resources, it only produces around

1 per cent of total global production. Urgent

attention to the reprocessing of the gold

dumps is required to reduce the uncontrolled

leakage of uranium into the environment —

the contamination of the Wonderfonteinspruit

is a case in point. Mintek was a world leader

in uranium hydrometallurgy during the 1970-

80s, and has recently been re-establishing its

reputation. A few breakthrough technologies

(in areas such as ion exchange and direct

precipitation) are under development around

the extraction of uranium and its recovery to

yellow cake product.

Diamond provenance

Of major importance among the 13 diamond

parcels received by the Mineralogy division

(MNL), are three parcels of diamonds from the

South African Diamond and Precious Metals

Regulator (SADPMR), which originated from the

small-scale mining and beneficiation - Council

of Geoscience study from Welverdiend in

the 2002/3 Welverdiend Community Project.

These diamonds will increase the scope of

the research on diamond provenance. The

research project, which is funded by the

SADPMR is aimed at developing a method for

determining the geological source of rough

alluvial diamond, based on a combination of

their physical characteristics and trace element

signatures. The SADPMR-Mintek Diamond

Provenance laboratory opened in 2009.

Rare Earths and other “green minerals”

A market intelligence research work

involving silica and other “green minerals”

such as rare earths, lithium and their

availability for production is being

undertaken by the Mineral Economics and

Strategy Unit (MESU) at Mintek. Of particular

interest is the researching of the availability

of solar-grade silicon and its sources in

KwaZulu-Natal Province (KZN). MESU is

also undertaking a study of the Mambulu

titanium deposits, working with various

departments in the province through Trade

and Investments KZN and the Ilembe District

Municipality. The unit is also working with the

Department of Trade and Industry (DTI) to

look at steel demand forecasting.

Two senior Small-Scale Mining and

Beneficiation (SSMB) staff visited Moi

University as part of the Kenya-South Africa

bilateral partnership funded by the National

Research Foundation (NRF). The objective

of the research undertaken is to improve

agricultural productivity using low cost

native phosphate rock sources to increase

local output, nutrition and agricultural

competitiveness.

Titanium tetrachloride plant

The test chlorination reactor for production

of titanium tetrachloride (TiCl4) has

been modified to overcome problems of

blockages in the product line. The Kroll

reactor, with a capacity of 1 kg per batch,

was successfully operated to produce

titanium sponge, and has subsequently

been modified to improve the feed system

with respect to better control of feed rates.

Mintek also plans to test other reductants for

producing titanium sponge, in addition to

liquid magnesium usually employed in the

Kroll process.

2

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The diamond research project is aimed at developing a method to identify the geological source of diamonds.

92

UUranium238,03


MOperations and development

MINTEK TRANSFERS ITS UNIQUE TECHNOLOGIES AND PRODUCTS to industry by way of sales and technology licensing agreements through joint-venture partners and operating companies. These

technologies and products include DC arc smelting, gold and base metal bioleaching, MinataurTM Process -- the hydrometallurgical refining of gold, various capital equipment items such as the MinfurnTM carbon regeneration furnace, Mintek’s extensive range of metallurgical process control and optimisation strategies based on the StarCSTM platform, the South African Reference Materials (SARM) series, the MetRIXTM resin-in-pulp (RIP) process, the Cynoprobe, Xanthoprobe and many others.

Equipment and laboratories

The Hydrometallurgy Division (HMD), ISO 17025 accredited laboratory conducts analysis on process and environmental samples, with the latter being of national significance as no other laboratory in South Africa can assist the mining industry with compliance focused cyanide data generation. Mintek intends to add arsenic data generation in the near future. The laboratory was re-certified in November 2010. Laboratories in the Analytical Services Division (ASD) division also underwent similar audits, comprising surveillance assessments of various equipment and practices in February 2011, and Mintek has also retained the ISO 17025 accreditation.

Advanced Materials Division (AMD) took delivery of a new state-of-the art high resolution transmission electron microscope (HRTEM), which is ideally suited for crystallographic and chemical analyses at a sub-nanometer scale.

ASD has developed a method for analysing rare earths samples with quicker turn-around times using equipment that uses inexpensive consumables, which is expected to improve the service Mintek offers for its clients. Mintek also experienced a power surge, ascribed to lightning, which caused considerable damage to equipment. Although this equipment has been repaired and brought back into service, the shut-down resulted in delays in some services at ASD.

Most of the equipment, pilot plants, rigs, smelters and other equipment is manufactured in-house and installed on various sites by the Engineering Support Division (ESD) at Mintek. These include various rigs and cascade systems deployed locally and internationally, the MetRIXTM RIP plant -- which has been commissioned by Mintek at Harmony’s No 1 Shaft -- and the SAVMIN pilot plant.

Lab-scale work

Mintek has undertaken research to look into uses and commercial viability of some of the biotechnology bi-products from mineral bio-leaching. The results are promising prompting the institution to start looking for consortia for the commercialisation of bacterial materials and products such as bacterial nano-particles with unique properties

(this in itself is a new innovation) and bacterial excretions that can be useful for flotation reactions.

The recycling of automobile catalytic converters to recover the PGMs is a steadily increasing trend, in response to environmental concerns worldwide. Three different companies have approached Mintek to assist with generation of data, which they hope to use to improve their recycling processes, grades and recoveries.

Another project, for a major US-based mining company working on a chromite ore body in Canada, has been in progress at a laboratory scale in both the Minerals Processing Division (MPD) and Pyrometallurgy Division (PDD) since September 2010.

DC Arc technology

Enquiries related to two new potential applications for DC arc furnace technology have been received from major steel companies to address the treatment of waste products. The size of the steel industry makes these possible applications very significant. Similar consulting work is also underway in the ferroalloy field, for DC arc furnace treatment of solid wastes from gas cleaning equipment.

Two pilot scale tests have been conducted to probe and compare the behaviour of a DC self-baking electrode with that of the well established AC self-baking (Soderberg) electrode. The findings of the second test confirmed the earlier results while a lot more data on the baking behaviour of the electrode was collected. A high speed photographic study of the electric arc behaviour from a Söderberg electrode with a standard pre-baked DC electrode was undertaken. More work will be carried out to see why and how the behaviour is different and whether the use of a self-baking electrode can reduce the operating costs of the DC arc furnace and improve its profitability.

In another development to highlight the increasing interest in the DC arc technology for direct smelting of chromite ores, Mintek conducted a pilot-plant test which smelted 86 tonnes of chromite concentrate in a DC arc furnace in order to produce ferrochrome alloy. The purpose of the exercise was to demonstrate the feasibility of using the DC arc furnace to process this particular chromite ore cost-effectively and to provide engineering design data. The results are being used as part of the client’s bankable feasibility study.

2

research, development and technology

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High temperature bio-leaching

The commercialisation of the high temperature heap bioleaching project, which was being undertaken in conjunction with NICICO in Iran, has been called off by the Iranian client. One of the factors leading to this step has been the rising copper price which redefines what constitutes low-grade copper ore. This is of course a disappointment, but Mintek is still involved in other high-temperature heap bioleaching projects that could eventually lead to commercialisation of the technology.

MetRIX resin-in-pulp

Mintek, in collaboration with Bateman , developed the MetRIXTM continuous resin-in-pulp (RIP) process for the direct recovery of uranium from dense slurries. Preliminary feasibility studies conducted by Bateman indicated that this route would be much more cost-effective than the more conventional treatment options. A government grant over the past three years has allowed HMD to make a number of processing improvements, which would further allow the MetRIXTM technology to become even more cost effective. A demonstration plant on the MetRIXTM technology has been successfully commissioned at Harmony Gold Mine’s No. 1 plant near Welkom in the Free State Province. The RIP technology is applicable not only to uranium but also to base metals.

SAVMIN

Mintek developed the SAVMINTM process during the 1990’s for the treatment of acid mine drainage. The recent focus on acid mine drainage stimulated re-evaluation of the technology. A demonstration plant campaign undertaken during 2007 identified areas requiring improvement, and Mintek undertook a complete re-engineering of the technology, with very successful outcomes. Mintek is currently working with an international water company, Veolia Water Solutions & Technologies, to conduct preliminary feasibility studies for three separate types of acid mine drainage water to get an indication of the cost comparison of this process with other treatment options. A demonstration plant is planned for 2011.

New fibre technology

Use of ion exchange fibres for the removal of impurities from electrolytes and low grade solutions indicated that this type of material might reduce capital expenditure and operational expenditure significantly. A supplier of these materials has been identified, and a preliminary feasibility study was done for the removal of copper (Cu) from cobalt (Co) electrolyte. Mintek has also developed a technique for the impregnation of commercially available organic extractants on fibre matrices that are available in South Africa, with an end objective of facilitating commercial production in the country.

Rados X-Ray Sorter

Mintek regards sensor ore sorting as one of the most important future technology shifts because of the benefits it offers to more complete resource utilisation and reduced energy and water consumption. Mintek offers both the Commodas and Radotechnology options for client testwork. Samples of iron, uranium and manganese ores have been tested with a view to reducing water consumption within various plant flowsheets by upfront dry waste rejection and reducing size of existing plants by reducing plant feed tonnages.

Cynoprobe

Mintek has unveiled a prototype Cynoprobe analyser that extends the range of online cyanide measurement down to levels previously reached only with sophisticated laboratory techniques. Promising laboratory results have been achieved with the new prototype, with readings on standard samples producing a relative standard deviation of generally less than 10 per cent, and an error of less than 5 per cent, for free cyanide concentrations in the range of 10 to 500 parts-per-billion. No other online instrument is capable of measuring such low cyanide concentrations accurately.

The Matrix Cynoprobe uses a measurement technique based on the ASTM D7237-06 standard test method for the measurement of aquatic free cyanide. The technique involves separating cyanide from the matrix using gas diffusion across a Teflon membrane, followed by amperometric detection. The prototype Matrix Cynoprobe has undergone field testing at Sasol Polymers in Sasolburg, and is also undergoing testing at a local gold producer.

2


TMineral Policy and Sustainable Development

THE REALIGNMENT OF BUSINESS UNITS AT MINTEK has necessitated that the Minerals Economics Strategy Unit (MESU) be merged with the Business Development Division (BDD) function in order to strengthen

the institution’s sustainable development efforts and commercialisation of Mintek’s innovations. Market development work throughout the mining value chain will therefore be done jointly under BDD.

Derelict and ownerless mines

An asbestos project that started in the 2008/9 financial year has been completed, with the completion of construction of a wall enclosing an old mining area in Prieska, in the Northern Cape Province, in the last quarter of this financial year. However, a further R30-million has been granted by the Department of Mineral Resources (DMR) for the next phase and this brings the total grant to R90-million over a period of three years. Five further projects have been identified for rehabilitation in the next financial year in addition to ongoing projects at Penge, Osizweni, Heuningvlei and Lusikisiki. The National Empowerment Fund (NEF) has also been working with MESU to conduct a study on the alternative uses for disused mines.

International partnerships

The international partnership that has been formed between Mintek and Szent Istvan University, in Hungary, as part of the NRF South Africa-Hungary partnership programme on the research of renewable energy has been extended. The Mpumalanga provincial

government has expressed interest in the programme as a funding partner. The aim of the project is to promote the substitution of fossil fuel-based energy by alternative energy sources for equipment used in mining applications in order to reduce the industry’s dependency on the international crude oil market. It is also hoped that the programme’s interventions will help address issues in relation to the lowering of operational costs, amelioration of climate change and improvement of energy supply and availability in mining operations in South Africa. This partnership is part of the NRF’s broad intergovernmental science and technology co-operation agreement between South Africa and Hungary.

The Small-Scale Mining and Beneficiation (SSMB) division has started a partnership with a Namibian company, Native Geosciences, looking at some of the resources that could be utilised by artisanal and small-scale miners (ASMs) in Namibia. Testwork was performed on various samples of clays and sands received from Namibia.

Phosphogypsum

The production of bricks using phosphogypsum will have a large number of positive impacts on the environment and humans. These include the lessening of harmful compounds from the hydrosphere, biosphere and atmosphere as well as the increasing of housing capacities of poor communities, providing employment and assisting fertilizer producing companies with an efficient and effective way to discard their waste.

The research conducted has shown that by varying the proportions of raw materials and water content, a brick with variable strength characteristics can be manufactured. More research needs to be done with respect to improving the strength characteristics in order to meet South African National Standards (SANS) for masonry bricks. This research will be continued in the next year as the benefits far outweigh the challenges that may arise.

Training

A total of 89 learners were trained in introduction to small-scale mining courses in Welkom (Free State), Ogies (Mpumalanga),

0

Quarry at Lusikisiki earmarked for rehabilitation.

View over Osizweni coal and clay mine – earmarked for rehabilitation.

Public meeting at Penge in planning rehabilitation project.

mineral policy and sustainable development

Nyanga (Western Cape), Botha’s Hill (KwaZulu-Natal) and Wakkerstroom (Mpumalanga). This training which was funded by the Mining Qualifications Authority (MQA) culminated in graduation ceremonies, held in the same provinces where the learners were presented with their certificates.

Indigenous Knowledge Systems

The 2010 Indigenous Knowledge Systems (IKS) exhibition and conference, which is organised by the DST, was held from 26 to 30 July 2010 at the International Convention Centre in Durban. SSMB attended and did a presentation on the “Commercialisation and Beneficiation of IKS”.

Pottery, jewellery and glass bead projects business development

A contract was signed with Small Enterprise Development Agency (Seda) to assist a small business called Bead IQ with training in the manufacture of glass beads. The business is situated in Bela Bela, Limpopo Province. Two learners received training at the Amaso Beads Incubator according to the Mining Qualifications Authority (MQA) accredited unit standards – the first time this has been done on glass beads.

A memorandum of understanding was signed between Mintek and the eThekwini Municipality for the set-up of a glass bead manufacturing business for a women’s co-operative in KwaZulu-Natal. This partnership serves to empower the co-operative by providing equipment and training on the

production of glass beads.

Training at a pottery site in Siga, North West Province, was completed. A group of ten learners (including learners with disabilities) received training from 19 July to 23 July 2010 and also from 6 to 17 September 2010. This was the last of the four pottery sites (second phase) funded by the Department of Education in the North West Province. The other three sites, which received training earlier, continued to receive technical assistance during this period. A total of 86 learners graduated and received certificates. Four of the eight groups received training according to the requirements of the MAPPP Seta Skills Program: Craft Production at NQF 2 Level. A new contract was then signed to continue with further training and support of the eight pottery units. The training has progressed well and 62 learners were trained at an intermediate level in pottery manufacturing. The project will also involve organising a workshop that will bring together the learners, crafters, designers, specialists, funders, government departments and other stakeholders to discuss the issues facing the pottery & craft sector and develop ways to overcome these to ensure the sustainability of the groups established. The workshop is planned for the first month of the new financial year.

Training in pottery manufacturing was successfully completed at another site in Port St Johns, Eastern Cape Province.

The National Development Agency (NDA) accepted a Mintek proposal to provide the

LeRata Bonono NPO (Thumbs Up) pottery

project, situated in Phuthaditjhaba, Free

State Province, with funds to assist with the

testing of clays, mentoring, design, technical

assistance and pottery wheel training.

A contract has been signed with the Mogale

City Local Municipality for the set-up of

a new pottery unit in Magaliesburg. The

project implementation will commence in the

new financial year.

SSMB through the Seda Platinum Incubator

arranged a trip for one member of the

Bethanie jewellery project to attend the

International Jewellery Exhibition held in

London. The feedback received was very

positive and the leads made in London are in

contact with the group. In October the entire

group attended a graduation ceremony

having completed a course in Macro MBA

provided by Business Place in Rustenburg.

The Pixley ka Seme District is richly

endowed with vast amounts of mineral-

resources. SSMB was invited to attend a

three day conference arranged by the

district municipality where the stakeholders

looked at the challenges faced in the area

and ways to stimulate economic growth,

social development and help alleviate

poverty. Mining was one of the major sector-

strategies addressed at the conference in

addition to discussions on the promotion of

mineral beneficiation and value-addition,

to further address the challenges of

unemployment and underdevelopment.

1

Jewellery trainee at Bophadiphadi Centre

Pottery and ceramic training at Mintek.Ipopeng pottery trainees.Jewellery set made at Bophadiphadi Jewellery Training school.


Human Capital Development and ManagementLabour relations

Mintek concluded wage negotiations with the National Union of Mineworkers (NUM) in October 2010 and the salary increases were implemented in November, backdated to October 2010, after a dispute was resolved by the Council for Conciliation, Mediation and Arbitration (CCMA).

In September 2010 Mintek entered into retrenchments consultation with the NUM on 46 possible redundant positions in the Pyrometallurgy Division. In December the parties agreed to enter into formal consultations facilitated by the CCMA. Only 39 retrenchments were finally affected.

The retrenchments were effected after taking into consideration the year-to-date loss that Mintek had suffered. Discussions were held with NUM and a number of possible options weighted to ameliorate the situation. But in the final analysis, an inevitable conclusion was that the institution had no option but to lay off the workers. However, several measures continue to be undertaken to return these members to service at Mintek. These include seven affected members who were temporarily deployed to the Mintek MetRIX RIP pilot plant, which was commissioned at Harmony’s No1 Shaft near Welkom in the Free State Province towards the end of the last quarter of the financial year. In another effort to assist the situation, Mintek has negotiated a research and development project with Anglo Platinum which may result in a long duration smelting test.

Mintek will continue to pursue avenues to create work that will result in long-term sustainability of the company. In recognition of the retrenched workers’ experience and contribution the institution over the years that they have been employed at Mintek, the workers will be given priority for re-employment should the financial situation improve. This is even more positive considering that the effects of the recession have begun wearing off and Mintek is beginning to experience an upturn in the request for commercial work.

Demand for commercial work in the Mineral Processing and Hydrometallurgy Divisions continued to increase from the low levels experienced during the recession. These divisions are working to full capacity on both research and commercial work. However, both divisions have been adversely impacted by resignations from relatively experienced engineers, for whom there is a strong demand from industry.

After a long accident-free period, Mintek unfortunately suffered a minor Lost Time Incident when a worker suffered a tendon

injury and this increased the Lost Time Injury Frequency Rate (LTIFR) to 0.3, still well within the target of less than 1. The Health Incident Frequency Rate (HIFR) remained at 0. The External Client Dissatisfaction Frequency Rate (CDFR) has increased to 14.3, exceeding the target of 10. Any causes for client dissatisfaction are receiving attention.

Developing and Managing Human Capital

Mintek’s strategy is to ensure that the organisation is a world class research and development facility. Our excellence lies in continuously strengthening and building a skilled, motivated, high-performing and diverse workforce. In the past year the Human Resources Division (HRD) continued to drive effective implementation of its human resources strategy by ensuring that Mintek grows talent from within, especially from its pipeline development initiatives, and aggressively recruiting and retaining staff.

MAP Programme

During 2010/11, HRD implemented all the identified drivers of the shareholders’ compact. Specifically, Mintek continued the implementation of Management Advanced Programme for managers and employees in supervisory positions, in partnership with Wits Business School, which resulted in twenty employees graduating from the programme. The programme started in 2008, with an aim to introduce supervisors, heads of departments and management at Mintek to a mini-MBA programme. The 2010 graduation brought a total number of employees at Mintek to have gone through the programme to 60.

Skills Development

The Human Resources Division (HRD) established a skills development committee that included employees’ representatives, the Diversity Forum and the National Union of Mineworkers (NUM). Through that we continued to invest in the training and development contribution towards transformation and growing our own talent. We further introduced the coaching and mentorship strategy that will focus on developing skills by mentoring and coaching employees with potential and expose them to opportunities within Mintek.

In 2010, Mintek participated in the Deloitte’s “Best Company to Work For” survey, which is conducted by the company every three years. Mintek will leverage off the strengths identified and take advantage of opportunities for improvement by streamlining human resources processes and procedures.

2

human capital development and management

Mintek’s total staff turnover this year fell to just over 12 per cent. Although this is higher than the 7 per cent at the closing of the previous reporting period, it remains lower than the 15 per cent reported in 2009. The current reporting period also showed an increase in the turnover of professionals and associate professionals, which is a third of the total labour turnover percentage. A manpower planning process was conducted to ensure consistency in job grades and classifications across all Mintek staff.

Employment Equity

Mintek’s current Designated Group (DG) representation among the total permanent workforce is 83 per cent. However, DG individuals remain under-represented at the technical, professional, and managerial levels. This is due to the general shortage of DG engineers and scientists, which results in extreme competition between prospective employers to recruit such people. We are currently focusing on our pipeline development initiatives to minimise the impact in future.

Human Resources Administration

Mintek continues to develop, improve and streamline its human resource information systems to meet the demands of the company and its staff. A manpower planning process was conducted to ensure consistency in job grades, classifications, and titles across the organisation. The following policies were reviewed: leave policy, retrenchment policy, working time procedure and the recruitment policy.

Wellness

Mintek is convinced that the wellbeing of the company is imperative to the health of its employees. The company understands that accidents, illnesses, and sick days directly affect the business efficiency, profit and the general morale. Maintaining healthy employees translates into a more productive workforce.

�� awareness campaign.

�� local public and private hospitals to address injury on duty and primary health activities.

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HIV/AIDS

Mintek maintains a high level of AIDS education by means of outreach programmes, awareness events, and a dedicated team of peer educators and counsellors. All employees are encouraged to make use of the voluntary counselling and testing services that are provided through the Mintek Medical Clinic, in association with the Randburg municipal clinic and the Olive Leaf Foundation.

��'��!��*��!��#��$��+<=�employees participated in the survey. The results of the survey – where employees were invited to voluntarily provide a saliva ��*��>�� #��$� �� !�� in the company. Two similar campaigns were conducted at Mintek in 2004 and 2007, the results of which have respectively indicated � ��?"@[��@"?[��*��"

Academic Support and Training

The activities of the Academic Support Unit within the Human Resources Division include:

�� \��!��!��!��*��!]time science and engineering students;

�� \��!��!��!��*��Mintek staff for part-time science, engineering and non-technical studies;

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Occupational CategoriesMale Female Foreign

Nationals Total

A C I W A C I W Male Female

Legislators, senior officials and managers 5 2 0 7 2 0 0 3 0 0 19

Professionals 30 2 9 50 21 2 14 25 23 6 182

Technicians and associate professionals 59 1 5 22 44 0 6 9 4 3 153

Clerks 25 1 0 2 40 3 2 22 0 0 95

Service and sales workers 1 0 0 0 4 0 0 0 0 0 5

Craft and related trades workers 49 6 0 14 23 0 0 0 1 0 93

Plant and machine operators and assemblers 114 9 0 3 2 0 0 0 2 0 130

Elementary occupations 93 5 0 2 2 0 0 0 0 0 102

TOTAL PERMANENT 376 26 14 100 138 5 22 59 30 9 779


� Work-integrated learning (WIL) – formerly In-Service Training – for diploma students;

�� ̀�� *̀ �� programmes (including Minquiz, a national science competition for Grade 12 learners);

�� {��*��|� ��]�]School programme and the black Grade 10 to Grade12 girl learner job shadowing programme); and,

�� }��!�� and infrastructure funding opportunities for Mintek’s operating divisions.

Bursary programme for full-time students

In order to ensure that only the best full-time students are offered Mintek undergraduate bursaries, Mintek hosted 15 of the students who were interviewed for a one-week on-site assessment in December 2010 and January 2011. This additional assessment step was conducted formally for the first time at Mintek in order to make a better informed decision concerning awarding bursaries based on the output of small projects given to the students during their five-day sojourn as well as their conduct. This ensures that Mintek’s decision to award bursaries is informed not only by academic performance and potential as assessed during the bursary interview, but also that the students are also the right fit for Mintek based on the one-week assessment period.

Mintek hosted all of its full-time first to third year undergraduate bursars at the end of November for approximately seven and a half weeks so that the students could undertake industry-based vacation work as required by their university, and also so that their host divisions can assess the quality of their work and conduct. Mintek also hosted 11 MQA-funded students for vacation work as well as three non-bursars during the same period.

Unfortunately Mintek’s full-time postgraduate degree cohort continued to decline in 2010. However, Mintek plans to review the postgraduate bursary values via a benchmarking exercise in 2011, and also implement a studentship programme in 2011 which would entail hosting full-time masters and doctoral students at Mintek on a fixed-term basis so that the students conduct their research using Mintek equipment and resources, and are also paid at a more market-related rate.

Black Female Total

Undergraduate 53 87% 32 52% 61

Postgraduate

masters14 78% 73 9% 18

Postgraduate

doctoral57 1% 34 3% 7

TOTAL 72 84% 42 49% 86

Bursary programme for part-time studies

The aim of this new programme was to centralise bursaries for

technical (science and engineering) and non-technical (e.g.

human resources, administration, business administration and

management) studies for full-time employees (for diploma

or degree studies) at both undergraduate and postgraduate

levels, and also to augment Mintek’s retention and development

imperatives. The programme will also assist in upgrading

employees with National Diploma and B.Tech. qualifications so that

they are eligible to undertake further science and engineering

degree studies. It also aims to address the decline in the number

of full-time postgraduate bursars at Mintek.

A training course in hydrometallurgy involving approximately

twenty candidates was held on site at Mintek in August 2010 and

January 2011 in collaboration with the University of Cape Town’s

Department of Chemical Engineering. The course also led to one

of the attendees undertaking a part-time M.Sc. in hydrometallurgy.

Overall the intention to offer bursaries to Mintek staff at both

undergraduate and postgraduate levels has been quite successful

on a number of fronts. Firstly the programme has allowed Mintek

to accurately quantify the number of its staff undertaking part-time

studies, especially those studying towards a degree or diploma in

science or engineering. Secondly the programme has augmented

Mintek’s bursary programme for full-time studies quite well, and

has assisted in balancing out the decline in the number of full-time

postgraduate bursars.

Black Female Total

Undergraduate 45 100% 22 49% 45

Postgraduate masters 18 78% 10 43% 23

Postgraduate doctoral 5 100% 1 20% 5

TOTAL 68 93% 33 45% 73

Work Integrated Learning (WIL)

Unfortunately the MQA withdrew funding support for the July 2010

Work-Integrated Learning intake. In addition, Mintek was not able

to participate in the January 2011 intake because the MQA issued

a call for applications for this intake only a few weeks before the

programme was due to commence. This discontinuity had quite

a disruptive effect within participating Mintek divisions who

relied on a steady stream of technical students to assist in project

work. However, the programme will resume in July 2011 after

the MQA confirmed that funding was indeed available, although

the intake will be substantially less than before due to the above

discontinuities.

human capital development and management

Black Female Total

WIL students 45 100% 23 51% 45

Internship

Subsequent to Mintek submitting an expression of interest for 37 interns in the DST-NRF Internship Programme in the second quarter, Mintek obtained approval for 25 interns. After interviews 22 of the candidates accepted the NRF’s offer of a one-year internship at Mintek commencing in April 2011. Concerning the DST-PDP, Mintek nominated two candidates (one Ph.D. student and one post-doctoral fellow) to the NRF (the administrators of the programme). Subsequently one of the candidates withdrew, and the remaining candidate will commence his fellowship at Mintek in the nanotechnology group in the first quarter of the 2011/12 fiscal year.

Black Female Total

DST/NRF PDP (Masters)

5 100% 1 20% 5

DST/NRF PDP (Doctoral)

1 33% 2 67% 3

DST/NRF interns11 85% 7 54% 13

MQA GDP interns 11 100% 2 18% 11

Total28 88% 12 38% 32

Science, technology, engineering and mathematics (STEM) promotion

Mintek scaled back its schools-focused STEM promotion activities considerably in 2010, and in future most of Mintek’s STEM promotion activities will be focused at the university level. The main reason for this is that it is generally accepted that the transition from high school to university represents the greatest risk to Mintek due to school-leavers not being adequately prepared for the rigours of university life.

The Minquiz annual national science competition enjoyed great success in 2010, both in terms of an expanded footprint as well as greater financial support from the corporate community. School registrations have grown from 281 in 2007, 333 in 2008, 398 in 2009 to 500 in 2010.

The provincial leg of the competition took place at fourteen sites around the country. Four sites were newly established provincial Minquiz centres, specifically the Walter Sisulu University in Mthatha, the University of Fort Hare in Alice, the Boitjhorisong Education Centre in Sasolburg, the Sci-Enza Science Centre in Pretoria, and the Osizweni Resource Science Centre in Secunda. Additional centres were established in 2010 with funding from Sasol and the DST.

Corporate Social Responsibility

Mintek’s Adopt-a-School programme was rationalised from

three to one school, primarily as a cost-saving measure. Only

Kwadedangendlale High School in Zola North, Soweto will

continue to be supported in future as the better-performing school

and also since the school was the first school to be adopted by

Mintek. Mintek’s other corporate social investment programme,

the Girl Learner Job Shadowing Programme, was also shelved for

the year due to budget cuts.

R&D personnel data collection

A study was commissioned by Mintek’s executive management

in order to implement an R&D personnel classification and data

collection framework for reporting purposes. The literature

revealed that the Organisation for Economic Co-operation

and Development’s (OECD) “Frascati Manual” represented

international best practice concerning an occupation-based R&D

personnel classification method. A standard operating procedure

was developed based on the resulting report in order to classify

Mintek employees as either “researchers”, “technicians in support

of R&D” and “other R&D support staff”, as well as a guide for data

collection and reporting. The procedure, which was accepted by

Mintek’s executive management, will be implemented in the first

quarter of the coming fiscal cycle.

New programmes for 2011

In addition to the Studentship Programme, Mintek plans to

implement two new programmes in 2011, which are the Graduate

Development Programme and the Researcher Development

Programme. The Graduate Development Programme entails a

structured soft skills training programme, but the primary focus

is to place scientists and engineers on a structured development

programme for them to gain and upgrade their professional

registration with the South African Council for Natural Scientific

Professions (SACNASP) and the Engineering Council of South

Africa (ECSA).

The Researcher Development Programme builds on the Graduate

Development Programme and aims to fast-track the production

of researchers via tailored development programmes including

niche training to develop research competence. Both programmes

would have strong links with the Coaching and Mentoring

Programme, and aims to plug the 5 to 10 year experience gap.

In addition, Mintek is working closely with the MQA to establish

an on-site Artisan Learnership Programme in 2011. The first intake

will seek to strike a balance between recruitment of potential

apprentices from Mintek’s ranks, as well as recruiting from Further

Education and Training (FET) colleges.


Staff Papers, Publications and Conferences

Abdelatiff M. DC arc smelting of silicon: Is it technically feasible?. Southern African Pyrometallurgy. Southern African Institute of Mining and Metallurgy, Johannesburg, South Africa, 6-9 March 2011. pp.103-115.

Adenkule A.S., Agboola B.O., Pillay J. and Ozoemena K.I. Electrocatalytic detection of dopamine at single-walled carbon nanotubes - iron (III) oxide nanoparticles platform. Sensors and Actuators B 148, 2010. pp. 93-102.

Agboola B.O., Pillay J., Makgopa K., Ozoemena K.I. Electrochemical characterisation of mixed self-assembled films of water-soluble single-walled carbon nanotube-poly(m-aminobenzene sulfonic acid) and iron(II) tetrasulfophthalocyanine. J. Electrochem. Soc., Volume 157, Issue 11. 2010 pp. F159-F166.

Beeming B., Tembe S., Ntho T., McPherson J., Pattrick G. and Van der Lingen E. Gold catalysed ethanol oxidation: A techno-economic study. CATSA 2010. Bains Game Lodge, Bloemfontein, South Africa, 7-10 November 2010. p.61.

Brennan J.L., Kanaras A.G., Nativo P., Tshikhudo T.R., Rees C., Fernandes L.C., Dirvianskyte N., Razumas V., Skjot M., Jorgensen C.I., Schweins R., Zackrisson M., Nylander T., Brust M. and Barauskas J. Enzymatic activity of lipase-nanoparticle conjugates and the digestion of lipid liquid crystalline assemblies. Langmuir, 2010, 26(16) pp. 13590 - 13599.

Brimecombe R. and Limson J. Electro-chemical sensor development: Application in the pharmaceutical sector. 40th South African Chemical Institute (SACI) National Convention and Federation of African Chemical Societies (FACS) Meeting. University of the Witwatersrand, Johannesburg, South Africa, 16-21 January 2011.

Bushell C. A new SEM-EDS based automated mineral solution for the PGM-bearing ores and flotation. Process Mineralogy 2010. Vineyard Hotel, Cape Town, South Africa, 10-12 November 2010.

Chetty D. and Gutzmer J. Geometallurgy of the Northern Kalahari manganese deposit, with respect to smelting operations. 20th General Meeting of the International Mineralogical Association. Budapest, Hungary, 21-27 August 2010.

Chetty D. 3D computed tomography as a tool for ore characterisation in process mineralogy.¬ 23rd Colloquim of African Geology Proceedings, University of Johannesburg, Johannesburg, South Africa. 8-12 January 2011. p.77

Chown L.H., Smit M. and Van der Lingen E. Structure and corrosion resistance of Ti-Fe-Pd alloys. 48th Annual Conference of the Microscopy Society of Southern Africa. Bela Bela, Warmbath, South Africa, 26-29 October 2010. p.55.

Clark W and Thompson W. African Turquoise, The “Real Deal”? Proceedings of the 3rd Southern African Mineral Symposium, Council for Geoscience, Pretoria, South Africa, 20 November 2010.

Coyanis E.M., Bowen R.J., Fernandes M.A., Layh M. and Meijboom R. Synthesis, characterisation and structures of rhodium carbonyl complexes bidentate phosphines. 40th South African Chemical Institute (SACI) National Convention and Federation of African Chemical Societies (FACS) meeting. University of the Witwatersrand, Johannesburg, South Africa, 16-21 January 2011.

Coney L. and Moila AV. A combined forensic approach to discriminating diamonds. 23rd Colloquium of African Geology Proceedings.University of Johannesburg, Johannesburg, South Africa, 8-12 January 2011.23 coll.

Coyanis E.M., Cinellu M.A., Coates J., Hewer R. and Mphahlele M.K. Binding studies of gold compounds utilising NMR. 40th South African Chemical Institute (SACI) National Convention and Federation of African Chemical Societies (FACS) meeting. University of the Witwatersrand, Johannesburg, South Africa, 16-21 January 2011. 1p.

Craven P. Eco-efficient processing: Fantasy or reality? Euromine Expo - International Trade Fair and Conference. Skelleftea, Sweden, 8-10 June 2010.

Fish M.Q., Hewer R., Wallis C.L., Venter D.F., Stevens W.S., Papathanasopoulos M.A. Natural polymorphisms of integrase among HIV type 1-infected South African patients. AIDS Research and Human Retroviruses, Vol 26 (4), 2010. pp. 489-493.

Fonteh P.N., Keter F.K. and Meyer D. HIV therapeutic possibilities of gold compounds. Biometals 2010, Vol. 23, pp. 185-196.

Fotoyi N.Z. and Eric R.H. Interaction of MgO-MgR2

O4 (R:Al,Cr,Fe) refractories with

SO2-containing gases. Southern African Pyrometallurgy. Southern African Institute of Mining and Metallurgy, Johannesburg, South Africa, 6-9 March 2011. pp.373-388.

Fourie E., Pattrick G. and Van der Lingen E. Characterisation and synthesis of PtRu/C catalysts for possible use in fuel cells. 2nd International Workshop for Young Scientists. Berlin, Germany, 31 Aug.-3 Sept., 2010. pp.1-9.

Fourie E., Pattrick G. and Van der Lingen E. Platinum and ruthenium on carbon catalysts for use in direct methanol fuel cells (DMFC). CATSA 2010. Bains Game Lodge, Bloemfontein, South Africa, 7-10 November 2010. pp. 84.

Fredericks N., McPherson J., Pattrick G. and Van der Lingen E. Investigation into the effect of synthesis variables on the preparation of Au/TiO2 catalysts. CATSA 2010. Bains Game Lodge, Bloemfontein, South Africa, 7-10 November 2010. p.85.

Gericke M and Govender Y. Bioleaching strategies for treatment of nickel-copper sulphide concentrates. Minerals Engineering, doi:10.1016/j.mineng.2011.02.006 (peer reviewed).

Gericke M. and Govender Y. Bioleaching strategies for the treatment of nickel-copper sulphide concentrates.Bio- and Hydrometallurgy’10, Vine Yard Hotel, Cape Town, South Africa, 8-9 November 2010.(peer-reviewed).

Gericke M., Govender Y. and Pinches A. Tank bioleaching of low grade chalcopyrite concentrates using redox control. The 12th International Ferroalloys Congress Sustainable Future. Helsinki, Finland, June 6-9 2010.

Gericke M., Govender Y. and Pinches A. Tank bioleaching of low-grade chalcopyrite concentrates using moderate thermophiles and redox control. Hydrometallurgy, vol 104, 2010 pp. 414–419. (peer-reviewed)

Govender V., Bergmann C. and Chetty D. Evaluation of Fe ore particle shape, density and size using MLA technology to determine their influence on gravity separation methods. 23rd Colloquium of African Geology, University of Johannesburg, Johannesburg, South Africa, 8-12 January 2011.p. 165

Goso X. and Kale A. Production of titanium metal powder by the HDH process. The Southern African Institute of Mining and Metallurgy: Advanced Metals Initiative. Light Metals Conference. Misty Hills, Muldersdrift, Johannesburg, South Africa, 27-29 October 2010. pp. 292-305.

MINTEK MAINTAINED A HIGH INTERNATIONAL PROFILE by presenting papers at the 12th International Ferroalloys Congress (Finland), Physical Beneficiation Conference (South Africa), the Fines Beneficiation Conference (South Africa), the Platinum Conference (South Africa), the Canadian Conference of Metallurgists (Canada), Automining (Chile), First International Brazilian Conference on Tribology (Brazil), 48th Annual Conference of the Microscopy Society of Southern Africa (South Africa), AMI Light Metals Conference (South Africa), Process Mineralogy 10 (RSA), Africa Down Under Conference (Australia), ALTA Conference (Australia) and the International Mineralogical Association (IMA) 2010 Conference (Hungary). Mintek was also represented at the Japan International Co-operation Agency (JICA) course in Japan. A paper on Mintek’s earlier work on DC arc photography was also presented at a conference in Japan.

The nanotechnology and nanoscience group hosted three academics -- Prof Alvarez and Prof Rotello (both from the USA) and Prof Brust (UK) -- who gave lectures on the environmental and health impact of nanotechnology. Members of the group were asked to give invited, keynote and plenary lectures at different international conferences and were also invited for a CRC Press book chapter contribution. A number of local and international visitors visited the Nanotechnology Innovation Centre (NIC) at Mintek. The third Annual NIC Workshop, with approximately seventy delegates, was successfully hosted by the University of the Western Cape. The NIC has approximately 45 registered postgraduate students (7 Honours, 16 M.Sc., 17 Ph.D. and five Post Doctorate) who are actively involved in the nanoscience research. In addition, about 84 students have access to the NIC facilities at the research nodes. During the first half of 2010/11, approximately 106 papers were already produced.

staff papers, publications and conferences

Govender Y. and Gericke M. Extracellular polymeric substances (EPS) from bioleaching systems and its application in bio-flotation. Bio- and Hydrometallurgy 2010. Vine Yard Hotel, Cape Town, South Africa, 8-9 November 2010.

Gryffenberg L. Beneficiation and mineralogical control of iron content in nepheline concentrate, Fanspoort nepheline syenite: South Africa. Process Mineralogy 2010. Vine Yard Hotel, Cape Town. South Africa, 10-12 November 2010.

Harris A., Van der Lingen E., Paul D.F., Swart H.C. and Terblans J.J. Monte Carlo simulation and AES characterisation of phase formation in Pt-Al thin films. Surface & Interface Analysis. 2010 Vol. 42. pp.1180-1183.

Harris R.A., Terblans J.J., Swart H.C. and Van der Lingen E. Monte Carlo simulation of Pt-AL thin film diffusion. The Southern African Institute of Mining and Metallurgy: Advanced Metals Initiative. Light Metals Conference 2010. Misty Hills, Muldersdrift, Johannesburg, South Africa, 27-29 October 2010. pp. 80-88.

Harrison A., Mosebi S., Nkosi N., Byth-Illing H., Coates J. and Hewer R. Investigation into the interaction between HIV-1 Vpu,gold and MHC-II. The NRF/DST Internship Research Presentation Day. Pretoria, South Africa, 25 February 2011.

Hewer R and Papathanosopoulous M.A. ICAR in South Africa. 23rd ICAR, San Francisco, United States, April 2010.

Hockaday S.A.C. and Bisaka K. Some aspects of the production of ferrochrome alloys in pilot DC arc furnaces at Mintek. INFACON X11 Proceedings 2010. Helsinki, Finland, 6-9 June 2010.

Hockaday S.A.C. and Bisaka K. Experience and results from running of a 1 kg Ti scale Kroll reactor. The Southern African Institute of Mining and Metallurgy: Advanced Metals Initiative. Light Metals Conference. Misty Hills, Muldersdrift, Johannesburg, South Africa, 27-29 October 2010. pp. 265-280.

Islam R.U., Witcomb M.J., Scurrell M.S., Van Otterlo W. and Mallick K. In situ synthesis of a Pd-poly(1.8 diaminaphathlene) nanocomposite: An efficient catalysts for Heck reactions under phosphine-free conditions. Catalysis Communications. 2010. Vol 12. pp.116-121.

Jogalekar A.S., Kriel F.H., Shi Q., Cornett B., Cicero D. and Snyder P. The discodermolide hairpin structure flows from conformationally stable modular motifs. Journal of Medical Chemistry. 2010. Vol.53. pp. 155-165.

Jonck J., Slabbert D. and Du Toit M. Investigating the characteristics of hydrogen induced cracking of forgings in H

2S environments. Southern African

Institute of Mining & Metallurgy. Light Metals Conference. Student Seminar. Misty Hills, Muldersdrift, Johannesburg, South Africa, 27-29 October 2010. pp. 1-14.

Jones R.T. and Geldenhuys I.J. The pros and cons of reductive matte smelting for PGMs. Precious Metals 2010. Falmouth Beach Hotel, Falmouth, United Kingdom, 15-16 June 2010.

Jones R.T., Reynolds Q.G. and Curr T.R. Some myths about DC arc furnaces. Southern African Pyrometallurgy. Southern African Institute of Mining and Metallurgy, Johannesburg, South Africa, 6-9 March 2011. pp.15-32

Jooste G.M., Kotze M.H. and Auerswald D. The advantages of true continous counter current elution in uranium processing. ALTA 2010 Nickel-Cobalt-Copper, Uranium & Gold Conference. Perth, Western Australia, 24-29 May 2010.

Kale A. and Bisaka K. Fluid bed chlorination pilot plant at Mintek. The Southern African Institute of Mining and Metallurgy: Advanced Metals Initiative. Light Metals Conference. Misty Hills, Muldersdrift, Johannesburg, South Africa, 27-29 October 2010. pp281-291.

Kalala J.T., Shabalala N. and Moloane T. A study of the influence of study wear on the performance of a laboratory high pressure grinding roll (HPGR). Mineral Processing 2010. The Southern African Institute of Mining and Metallurgy, Johannesburg, South Africa. 5 August 2010.

Keter F.K., Fonteh P., Little T., Liles D., Meyer D. and Darkwa J. Synthesis and structure of palladium (II) and platinum (II) complexes of bis (thiosemicarbazozones): solvatochromism and some biological data.11th International Chemistry Conference in Africa (ICCA). Luxor, Egypt, 20-23 November 2010.

Keter F.K., Fonteh P.N., Little T., Liles D.C., Darkwa J. and Meyer D. Preparation, structures, solvatochromism and anti-viral investigation of palladium (II) platinum(II) and gold(III) bis(thiosemicarbazones) compounds. 40th South African Chemical Institute (SACI) National Convention and Federation of African Chemical Societies (FACS) Meeting. University of the Witwatersrand, Johannesburg, South Africa, 16-21 January 2011.

King E.C., Du Preez N. and Moses S. Implementation of an Advanced Process Control System at a Lead-Zinc concentrator. Automining 2010: II International Congress on Automation in the Mining Industry. Santiago, Chile, 10-12 November 2010.

Kotze M. Application of gold IX. ALTA 2010 Gold Symposium. Perth, Australia, 27-28 May 2010.

Kotze M. Gold ion exchange. ALTA 2010 Gold Symposium. Perth, Australia, 27-28 May 2010.

Kriel F.H., Fernandes M.A. and Coates J. [u-1,2-Bis (diphenylphosphanyl)-1,2 dimethylhydrazine-k2P:P] [chloridogold](1)]. ACTA Crystallographica Section E 67, m42, December 2010.

Kriel F.H., Fernandes M.A. and Caddy J. 1,2 bis(diphenylphosphino)-1,2 diethylhydrazine. ACTA Crystallographica. Section E. vol 66 Part 6. June 2010.

Kriel F.H., Fernandes M.A. and Coates J. [u-1,2-bis(diphenylphosphanyl)-1,2- dimethylhydrazine-k2P:P’]bis[chlorido-gold(I)].¬ Acta Crystallographica Section E67. M42 2011.

Kriel E. and Coates J. Biological activity of gold and silver (phosphino) hydrazine complexes. AUTEK Biomed ISBOMC’10. 7 July 2010.

Kriel F.H., Fernandes MA and Coates J. Poly [[u2-1.,2 bis(diphenylphosphanyl}-1,2-diethylhydrazine]-u4-nitrato-u2nitrato-silver (I)]. Acta Crystallographica. Section E. vol 66 Part 6 June 2010.

Kriel F.H., Horvath U.I.E, Raubenheimer H.G. and Coates J. Biological activity of gold phosphine complexes. EUROBIC10. Thessaloniki, Greece, 22-26 June 2010.

Kriel F.H., Horvath U.E.I., Raubenheimer H.G. Biological activity of gold phosphine complexes. 40th South African Chemical Institute (SACI) National Convention and Federation of African Chemical Societies (FACS) meeting. University of the Witwatersrand, Johannesburg, South Africa. 16-21 January 2011.

Lagendijk H., Xakalashe B., Ligege T., Ntikang P. and Bisaka K. Comparing manganese ferroalloy smelting in pilot-scale AC and DC submerged arc furnaces. INFACON X11. Helsinki, Finland, 6-9 June 2010.

Lekgetho T.B., Chetty D. and Tredoux M. Can base metal sulphides be used as a proxy for platinum group mineral flotation of UG2 ore? 7th Inkaba yeAfrica Workshop. GFZ Potsdam, Germany, 1-5 November 2010.

Li F., Pattrick G., Moutloali R and van der Lingen E. Pyrolyzed carbon supported Co-N

4 electrocatalysts using

hexamethylenetetramine as nitrogen source. Rare Metals. 2011. Vol 30. pp 68-70.

Lombard A. and Thompson W.P. Rare earth element mineralogy: Seeing is believing. 23rd Colloquim of African Geology. University of Johannesburg, Johannesburg, South Africa, 8-14 January 2011.

Lopis A.S., Reynolds Q.G. and Bisaka K.Computational simulation of molten titanium-aluminium metal and alloys. Proceedings of the 49th Conference of Metallurgists. Vancouver, British Columbia, Canada, 3-6 October 2010.

Mallick K., Witcomb M., Scurrell M. and Strydom A. Paramagnetic polyaniline nanospheres. Chemical Physics Letters 2010. 494. pp.232-236.

Mallick K., Coyanis M., Witcomb M., Erasmus R. and Strydom A. In-situ generation of paramagnetism during polymerisation. Nano Science & Technology Institute (NSTI) 2010. Anaheim, California, United States, 21-24 June 2010.

Mallick K., Witcomb M., Erasmus R., and Strydom A. Electrical and optical properties of polyaniline with a web-like morphology. Journal of Applied Polymer Science, 2010, vol 116, pp. 1587-1592.

Mallick K.In-situ polymerization and composite formation (IPCF): an important synthesis route in advanced materials science. Nanotech 2010 Vol. 1, Nanotechnology 2010: Advanced Materials, CNTs, Particles, Films and Composites. 978-1-4398-3401-5. p.976

Mashazi P., Togo C., Limson J., Nyokong T. Applications of polymerised metal tetra-amino phthalocyanines towards hydrogen peroxide detection. Journal of Porphyrins Phthalocyanines, 2010, vol 14, pp1-12.

Mashazi P. and Nyokong T. Electrocatalytic studies of covalently immobilised metaltetra-amino phthalocynines onto derivatized screen-printed gold electrodes. Microchimica ACTA 2010. Vol 171. no. 3-4 . pp321-332.

Mashazi P., Antunes E. and Nyokong T. The use of titanium hydride in blending and mechanical alloying of Ti-Al alloys. Light Metals Conference. Misty Hills Muldersdrift, Johannesburg, South Africa, 27-29 October 2010.

Mashazi P., Antunes E. and Nyokong T. Probing electrochemical and electrocatalytic properties of cobalt(II) and manganese(III) octakis(hexylthio) phthalocyanine as self-assembled monolayers. Journal of Porphyrins Phthalocyanines. 2010. Vol 14. pp. 932 -947.

Mbonambi M., Becker M., Franzidis J-P., Bryson M. and Bradshaw D. Improving pentlandite selectivity over pyrrhotite using reagents. XXV International Mineral Processing Congress (IMPC) 2010 Proceedings. Brisbane, QLD, Australia, 6-10 September 2010. pp.2169-2176.

McCullough S., Hockaday S., Johnson C. and Barcza N.A. Pre-reduction and smelting characteristics of Kazakhstan ore samples. 12th International Ferroalloys Congress: Sustainable Future. Helsinki, Finland, 6-9 June 2010.

McPherson J. An update in heterogenous catalysis from the Catalysis Society of South Africa. Platinum Metals Review. 2010. Vol 54 (3). pp. 147-151.

Modise R., Mosebi S., Coates J. and Hewer R. Assay development to identify HIV inhibitors and enhance drug discovery. NRF/DST Internship Research Presentation Day. Pretoria, South Africa, 25 February 2011.

Moema J.S., Papo M.J., Stumpf W.E. and Slabbert D. The role of retained austenite on performance of grinding media. First International Brazilian Conference on Tribology TriboBr-2010 and ITS-IFToMM 2010. 2nd International Tribology Symposium of IFToMM. Rio Othon Palace Hotel, Capacabana, Rio de Janeiro, Brazil, 24-26 November 2010.

Moila A. and Coney L. Morphology and fourier transform infrared spectrometry studies of GEM quality diamonds. 23rd Colloqium of African Geology. University of Johannesburg, Johannesburg, South Africa, 8-14 January 2011.


Mogoru T.J., Verryn S.M.C. and Kruger R.A. Utilisation of perlite and waste slag from the South African steel and copper industry as cement extenders. Proceedings of the 20th General Meeting of the International Mineralogical Association, Budapest, Acta Mineralogica-Petrographica Abstract Series. Vol 6. p.5.

Mphahlele M.K., Papathanasopoulos M.A., Cinellu M.A., Coyanis M. and Hewer R. Inhibition of HIV-reverse transcriptase (RT) activity by gold-based compounds. Global Antiviral Journal, Vol 6, Supplement 1. Hilton Los Cabos, Mexico, 7-10 December 2010.

Mukadi J.J.N and Pistorius P.C. Mould flux residues aid descaling of reheated austenic stainless steel. Ironmaking and Steelmaking 2010. Vol. 37 No 1. pp.57-62.

Mulaudzi F.M.L., Cornish L.A. and Papo M.J. An investigation of industrial metal dusting of alloy 800. 48th Annual Conference of the Microscopy Society of Southern Africa (MSSA). Bela Bela, Warmbaths, South Africa, 26-29 October 2010. pp. 45.

Mwamba A. and Süss R. Microstructural evolution of TiFe intermetallic compound with alloying. Microscopy Society of Southern Africa: Proceedings. Vol.40 2010. Warmbaths, Bela Bela, South Africa, 26-29 October 2010. pp.49.

Mwamba I.A. and Chown L.H. The use of titanium hydride in blending and mechanical alloying of Ti-Al alloys. Light Metals Conference 2010. Misty Hills, Muldersdrift, Johannesburg, South Africa, 27-29 October 2010.

Odera B.O., Cornish L.A., Süss R. and Rading G.O. A study of the AS-cast alloys of the Pt-Cr-V system. 48th Annual Conference of the Microscopy Society of Southern Africa. Warmbath, Bela Bela, South Africa, 26-29 October 2010. p.52.

Odusote J.K., Cornish L.A., Chown L.H. and Pruessner. Oxidation behaviour of a precipitation hardened Pt-based superalloy Pt84:Al11:Cr3:Ru2 in air at 1350 degrees Celsius. Microscopy Society of Southern Africa: Proceedings. Vol 40. Warmbaths, Bela Bela, Limpopo: South Africa, 26-29 October 2010. p.51.

Paul R. Increased production of uranium in Southern Africa. Mine Africa 8th Annual Investing in African Mining Seminar. Toronto, Canada, 9 March 2010.

Paul R. NSTF: Commercialisation of research partnerships with industry. Symposium of the Science Councils and Statutory Bodies Sector of the NSTF on Commercialisation of Research Outputs and Partnerships with Industry. Agricultural Research Council, Hatfield, 22 September 2010.

Paul R. The impact of risk analysis on the adoption of new technology. Southern African Institute of Mining and Metallurgy Mineral Processing. Vineyard Hotel, Cape Town, South Africa, 5- 6 August 2010.

Pillay J., Ozoemena K.I., Tshikhudo R.T. and Moutloali R.M. Monolayer-protected clusters of gold nanoparticles: Impacts of stabilising ligands on the heterogeneous electron transfer dynamics and voltammetric detection. Langmuir 2010, Vol 26 (11). pp.9061-9068

Pillay K., Becker M. and Chetty D. The effect of gangue mineralogy on the pre-processing of low grade nickel ore. UCT Centre for Minerals Research (CMR). University of Cape Town, Cape Town, South Africa, 19 October 2010.

Pillay K., Becker M. and Chetty D. Mineralogical effects on the gravity concentration of low grade Selkirk nickel ore. 23rd Colloquium of African Geology, Geological Society of Africa. University of Johannesburg, Johannesburg, South Africa, 8-14 January 2011. p 334.

Pillay J. Mixed oxide-sulphide copper deposits. A process mineralogy case study. MINSA Analytical Techniques Symposium. Council for Geoscience, Pretoria, South Africa, 12-14 May 2010.

Pillay J., Tshikhudo R.T., Moutloali R.M. and Ozoemena K.I. Characterisation and electrocatalytic properties monolayer protected gold nanoparticles. Nano2010 International Conference on Nanomaterials and Nanotechnology. KSR Campus, Tiruchengode, Coimbatore, India, 13-16 December 2010.

Ramlall N. and Bryson M. Effect of water quality on the flotation response of UG2 and Merensky ore. Southern African Institute of Mining and Metallurgy Mineral Processing Conference. Vineyard Hotel, Claremont, Cape Town, 5 August 2010.

Ramlall N., Loveday B.K. and Bryson M.A.W. UG2 metallurgical variability. Beneficiation and mineralogical control of iron content in nepheline concentrate, Fanspoort nepheline syenite: South Africa. Process Mineralogy 2010. Vine Yard Hotel, Cape Town. South Africa, 10-12 Nov., 2010.

Raphulu M., Gqogca P., Moma J., McPherson J., Pattrick G., Louis C. and Van der Lingen E. Characterisation of Au/FeOx- for CO oxidation. CATSA 2010. Bains Game Lodge, Bloemfontein, South Africa, 7-10 November 2010.

Raphulu M.C., McPherson J., Van der Lingen E., Anderson J.A. and Scurrell M.S. Investigation of the active site and the mode of Au/TiO2 catalyst deactivation using Diffuse Reflectance Infrared Fourier Transform Spectroscopy (DRIFTS). Gold Bulletin, 2010, Vol 43 (1). pp 20-27.

Raphulu M., Gqogca P., Moma J., McPherson J., Pattrick G., Louis C. and Van der Lingen E. Characterisation of Au/FeOx- for CO oxidation. CATSA 2010. Bains Game Lodge, Bloemfontein, South Africa, 7-10 November 2010.

Reynolds Q.G., Jones R.T. and Reddy B.D. Mathematical and computational modeling of the dynamic behaviour of direct current plasma arcs. The Twelfth International Ferroalloys Congress Sustainable Future. Helsinki, Finland, 6-9 June 2010.

Reynolds Q.G. The dual electrode DC arc furnace: Modelling insights. Southern African Pyrometallurgy 2011. Southern African Institute of Mining and Metallurgy, Johannesburg, South Africa, 6-9 March 2011. pp.33-46.

Reynolds Q.G. and Jones R.D. High-speed photography and modelling of direct-current plasma arcs. 29th International Congress on High Speed Imaging and Photonics Proceedings 2010. Iwate Medical University, Morioka, Japan, 20–24 September 2010.

Riddin T.L. A biological template for the synthesis of anisotropic, gold nanoparticles. Microscopy Society of Southern Africa (MSSA) 2010. Warmbaths, Bela Bela, South Africa, 26-29 October 2010.

Robertson S., Seyedbagheri A. and Van Staden P. Advances in heap leach research and development. ALTA 2010. Metallurgical Conference, Perth, Australia. 23-26 May 2010.

Sebola P., Kinnaird J. and Chetty D.. Characterisation of uranium mineral-bearing samples in the Vaal Reef; Klerksdorp Goldfield, Witwatersrand Basin. 23rd Colloquium of African Geology, Energy Resources: Petroleum, coal and uranium. University of Johannesburg, Johannesburg, South Africa, 8-12 January 2011. p.364

Sepeng T.W.A., Chili J.N. and Sithole G. Rhodium determination by ICP-OES after pressure dissolution of the fire assay lead collection prills.

Shongwe M.B., Odera B., Samal S., Ukpong A.M., Watson A., Süss R., Chown L.H., Rading G.O. and Cornish L.A. Assessment of microstructures in the development of Pt-based superalloys. Southern Institute of Mining and Metallugy, Light Metals Conference. Misty Hills, Muldersdrift, Johannesburg, South Africa, 27-29 October 2010. pp. 184-202.

Shumbula P.M., Moloto N.J., Tshikhudo R.T. and Fernandes M. Dichloro bis[diphenylthiourea] cadmium complex as a precursor for HAD-capped CdS nanoparticles and their solubility in water. South African Journal of Science. Vol. 106, no7/8.

Stevenson M., Pattrick G. and Van der Lingen E. Techno-economic analysis of sustainable solar hydrogen production by photocatalytic water-splitting. M. CATSA 2010. Bains Game Lodge, Bloemfontein, South Africa, 7-10 November 2010. p.147.

Thiele H. and Da Corte C. The evaluation of the SLon as a beneficiation tool for processing fine hematite ores. SAIMM Mineral Processing Conference. Vineyard Hotel, Claremont, Cape Town, 5 August 2010.

Thompson W. Ore microscopy and its application in the physical separation of minerals. Minsa Analytical Workshop. Council for Geoscience, Pretoria, South Africa, 12-15 May 2010.

Tshikhudo R. Advanced gold and silver nanoparticle systems for diagnostics and therapeutics. Nano-2010. International Conference on Nanomaterials and Nanotechnology. KSR Campus, Tituchengode, Coimbatore, India, 13-16 December 2010.

Traut T., Hewer R., Coates J. and Williams D.B.G. In silico models of HIV-1 integrase: Application in the design and discovery of anteretroviral agents. Z7: computer aided drug design, Fairmont Chateu Whistler, Whistler, British Columbia, Canada, 20-25 April 2010.

Traut T., Coates J., and Williams D.B.G. The design and synthesis of a pyrolle-carbaldehyde hit family as HIV-1 integrase inhibitors. 40th SACCI Convention 2011. University of the Witwatersrand, Johannesburg, South Africa, 16-21 January 2011.

Traut T., Hewer R. and Coates J. Die ontwerp en sintese van ‘n belowende reeks pirool-karbaldehiede as potensiele miv-1 integrase inhibeeders. SAAWK Symposia. Pretoria, South Africa, 5 November 2010.

Ukpong A.M., Cornish L., Süss R. and Watson A. Semi empirical study of the thermochemical properties of intermetallic phases in Nb-Pt and Nb-Ru systems. Southern African Institute of Mining and Metallurgy. Light Metals Conference 2010. Student Seminar. Misty Hills, Muldersdrift, Johannesburg, South Africa, 27-29 October.

Van der Merwe W. and Smit S. Cyanide monitoring, control and destruction facilitated by an online weak acid dissociable (WAD) cyanide measurement device. Automining 2010: II International Congress on Automation in the Mining Industry, Santiago, Chile, 10-12 November 2010.

Van der Walt H, and Chown L. Synthesis and characterisation of tween stabilised Fe

3O

4 and Fe

3O

4@Au nanoparticles.

Proceedings of the International Conference on Nanotechnology: fundamentals and applications. Ottawa, Ontario, 4-6 August 2010.

Van der Walt H., Chown L., Harris R., Sosibo N. and Tshikhudo R. Fe

3O

4 and

Fe3O

4@Au: Synthesis and functionalisation

for biomolecular attachment. World Academy of Science, Engineering and Technology 68, 2010. pp. 1038-1042.

Van Staden P. Base metals in South and Southern Africa. Mining and Geoscience Research and Development in Africa: Consultative Conference. Mintek, Johannesburg, South Africa, 19-21 April 2010.

Vardy J. and Smit S. Carbon management in a carbon counter current adsorption circuit. Automining 2010: II International Congress on Automation in the Mining Industry. Santiago, Chile, 10-12 November 2010.

Xakalashe B.S. and Tangstad M. Silicon processing: From quartz to crystalline silicon solar cells. Southern African Pyrometallurgy 2011. Southern African Institute of Mining and Metallurgy, Johannesburg, South Africa, 6-9 March 2011. pp.83-99.

corporate governance

Corporate Governance

MINTEK IS COMMITTED TO THE PRINCIPLES OF OPENNESS, integrity and accountability in its dealings with all stakeholders. It endorses the Code of Corporate Practice and Conduct as set out in the King

Reports and the Public Finance Management Act, and believes that the primary objective of the corporate governance system is to ensure that both the Board and Management carry out their responsibilities ethically and effectively.

Board of Directors

The Board of Directors consists of one executive member and nine non-executive members who were independently appointed by the Minister of Mineral Resources in terms of the Mineral Technology Act No. 30, 1989. In addition, the Executive Authority has appointed an alternate member, giving a total Board complement of eleven. Board members, excluding the Chief Executive Officer, hold office for a maximum of three years, but are eligible for re-appointment. The current Board has been in office since March 2010 and complete its term in 2013. Board members are appointed based on their business acumen, experience and knowledge as well as other skills. Mintek has a Board Secretariat that is responsible for ensuring that Board procedures are followed in line with the various corporate governance frameworks.

Attendance of Board Members at Board Meetings

Name 14/05/10 13/08/10 18/10/10* 26/11/10 18/02/11

Mr Mohau Mphomela (Chairperson)

Y Y Y Y Y

Mr Abiel Mngomezulu (Ex-officio & CEO)

Y Y Y Y Y

Ms Salminah Maja (Deputy Chairperson)

Y Y Y N Y

Ms Joy Ndlovu** Y Y N/A N/A N/A

Adv Derick Block Y Y Y Y Y

Ms Zethu Qunta Y Y Y Y N

Ms Simangele Sekgobela Y Y Y Y Y

Mr Paul Streng Y Y Y Y Y

Mr Paul White Y Y Y Y Y

Mr Mosa Mabuza N/A Y Y N N/A

Mr Tseko Nell*** Y Y N/A N Y

Y = In attendance N = Absent NA = Absent with apology N/A = Not applicable*Special Board Meeting**Member unable to attend due to maternity leave***Appointed as Mr. Mabuza’s alternate

The responsibilities of the Mintek Board are governed by the Mineral

Technology Act. The Mintek Board has the following committees: the

Audit Committee, the Human Resources Committee and the Technical

Committee. These committees are selected by the Board according to

the skills sets required for the committees to fulfil their functions.

The Board considers Mintek’s annual financial statements to be a fair

representation of its financial position at year-end in terms of the South

African Statements of Generally Accepted Accounting Practice (GAAP).

Audit Committee

The Audit Committee is established to assist the Board in discharging

its duties relating to the effectiveness and efficiency of operations;

safeguarding of the company’s tangible and intangible assets; compliance

with applicable laws, regulations and supervisory requirements;

supporting business sustainability under normal as well as adverse

operating conditions; the operation of adequate systems and control

processes; and the preparation of accurate financial reporting and

statements in compliance with all applicable legal requirements and

accounting standards. The committee provides a forum for discussing

business, risk, fraud and control issues for developing relevant

recommendations to the Board. It has direct and unobstructed lines of

communication to the Board, the executive management and the external

and internal auditors.

Attendance at Audit Committee meetings

Name 30/07/10 29/10/10 27/01/11

Mr Paul Streng (Chairperson) Y Y Y

Mr Abiel Mngomezulu (Ex-officio & CEO) Y Y Y

Ms Salminah Maja NA Y Y

Ms Zethu Qunta Y Y Y

Ms Simangele Sekgobela Y Y NA

Mr Edson Ragimana (DMR representative) Y Y Y

Dr Jan Bredell (Independent member)* N/A Y Y

Ms Nopasika Lila (Independent member)** Y Y N/A

Y = In attendance N = Absent NA = Absent with apology N/A = Not applicable*Appointed 15 August 2010** Resignation effective 27 January 2011


The Audit Committee has eight members consisting of four Board

members, two Independent members, one member representing the

Executive Authority and Mintek’s CEO. In addition standing invitations

to all Audit Committee meetings are issued to the General Manager:

Corporate Services, General Manager: Finance, Head of Internal Audit,

the Chairperson of the Risk Committee, and the Auditor General.

During the past year, the Committee considered various reports from the

internal auditor, while the audit report on the financial statement from

the external auditor was considered by the newly appointed Board. The

Auditor-General expressed an unqualified audit opinion on Mintek’s

annual financial statements for the year ended 31 March 2011.

Internal Control

Mintek maintains internal controls and systems, designed to provide

reasonable assurance as to the integrity and reliability of its financial

statements and to safeguard, verify and maintain the accountability of

assets. The effectiveness of these controls is monitored by the internal

auditors, who report to the Audit Committee. The Audit Committee also

reviews the following in terms of Internal Control:

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taken by Mintek management in ensuring that the weaknesses are

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recommendations and management’s plans for their implementation;

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internal audit function.

Internal Audit

Mintek’s independent Internal Audit (IA) function assists the

organisation to accomplish its objectives by adopting a systematic,

disciplined approach to evaluating and improving the effectiveness of

risk management, control and governance. The IA function has direct

access to the Audit Committee and regular meetings are held with the

Chairperson of the Audit Committee.

Risk Management

The Risk Management Committee continually reviews the risk

management process, internal controls, and significant risks facing the

organisation. The Committee provides the Audit Committee with a risk

assessment report at appropriately scheduled intervals. Meetings are

held on a quarterly basis or as required, and Mintek’s Risk Plan and

Risk Management Framework are updated as required. Mintek utilises

the services of insurance brokers on an annual basis to analyse and

assess the risks associated with its assets, which are insured, together

with public liability and professional indemnity, for the risk assessed.

Attendance at Corporate Risk Management meetings

Name 24/06/10 23/09/10 09/12/10 23/03/11

Mr Abiel Mngomezulu - CEO Y Y Y Y

Dr Roger Paul – Chairperson and GM: Business Development

Y Y NA Y

Mr Sakhi Simelane – GM: Finance Y NA NA NA

Ms Shokie Bopape - GM: Corporate Services Y NA NA N/A**

Mr Peter Craven – GM: Technology Y Y Y Y

Dr Molefi Motuku – GM: R&D N/A* Y Y N/A***

Ms Hester Pretorius - Finance Y Y Y Y

Ms Makgomo Umlaw – Human Resources Y Y Y Y

Mr Muzi Ntombela – Site & Security Y NA Y Y

Mr Elias Lesunyane - Security Y Y Y Y

Mr Mpho Mathose – Internal Audit Y Y NA Y

Ms Kedibone Mokgalaka – Internal Audit Y NA Y Y

Mr Hennie Venter – Information Technology and Corporate Safety, Health & Environment

Y Y Y Y

Mr Leon Swanepoel – Corporate Safety, Health & Environment****

N/A N/A N/A Y

Mr Paul White***** N/A N/A Y NA

Y = In attendance N = Absent NA = Absent with apology N/A = Not applicable

*Joined the Committee after 24/06/10** Had left services of the organisation*** Had left services of the organisation**** Assumed responsibilities for Corporate Safety, Health & Environment in 2011 only***** Joined the committee in December 2011 only

IT Governance

The Board, through the Audit Committee, is responsible for information

technology (IT) governance. The Audit Committee places it on

the Audit Committee agenda and ensures that: an IT charter and

policies are established and implemented, an ethical IT governance

culture is promoted, an IT internal control framework is adopted

and implemented, and receives an independent assurance on the

effectiveness of the IT internal controls.

The Audit Committee also ensures that IT is aligned with the

performance and sustainability objectives of Mintek, the IT strategy

is integrated with Mintek’s strategic and business processes and

that there is a process in place to identify and exploit opportunities

to improve the performance and sustainability of Mintek through

the use of IT. The Audit Committee delegates to management

0

corporate governance

the responsibility for the implementation of an IT governance

framework and ensures that IT forms an integral part of Mintek’s risk

management.

Compliance and Performance Management

The Audit Committee reviews the effectiveness of the system for

monitoring compliance with laws and regulations and the results of

management’s investigation and follow-up (including disciplinary

action) of any instances of non-compliance, review of the findings of

any examinations by regulatory agencies or any auditor and review,

and considers any legal matter, contingencies and reports from

Mintek’s legal advisors as may be required.

The Committee is also responsible for advising the Board on the

adequacy of the assessment by internal audit of the performance

management system. This includes the assessment of the functionality

of Mintek’s performance management system, the compliance of the

performance and the extent to which the performance measurements

are reliable in measuring the performance of Mintek against its Key

Performance Indicators.

Human Resources Committee

The Human Resources (HR) Committee consists of four Board

members and the CEO. The Committee reviews and determines the

remuneration and terms of employment for Mintek, and as part of this

process, gives consideration to the annual review of remuneration

packages based on independent surveys. The Committee also looks

into HR policies, internal controls, circumstances, conditions and

activities that affect material changes to policies and procedures and

conditions of service for all employees in compliance with demands

and vested interests of Mintek’s stakeholders.

Attendance at Human Resources Committee meetings

Name 29/07/10 04/11/10 03/02/11

Ms Salminah Maja (Chairperson)

Y Y Y

Mr Abiel Mngomezulu (Ex-officio & CEO)

Y Y Y

Adv Derick Block Y Y Y

Ms Joy Ndlovu NA Y N/A*

Mr Paul White Y Y Y

Y = In attendance N = Absent NA = Absent with apology N/A = Not applicable

*Candidate unable to attend due to maternity leave.

Technical Committee

The main purpose of the Technical Committee is to assist the Board

in discharging its duties relating to the legal mandate of Mintek

in as far as its core business is concerned. It provides a forum for

discussing technical issues for developing relevant recommendations

for consideration by the Board in informing strategy development

and implementation at Mintek. Furthermore, the Committee advises

on utilisation of expertise, project proposals and financing thereof,

looking into various co-operatives and related strategies and the

possible expansion of Mintek business within the said mandate.

The Committee consists of four Board members and the CEO.

Attendance at Technical Committee meetings

Name 15/07/10 20/10/10 19/01/11

Mr. Paul White (Chairperson) Y Y Y

Mr. Abiel Mngomezulu (Ex-officio and CEO) Y Y N/A

Ms. Simangele Sekgobela Y Y Y

Mr. Mosa Mabuza (DMR representative) N/R N/R N/R

Mr. Tseko Nell (DMR alternate representative) Y Y N/A

Y = In attendance N = Absent N/A = Absent with apology N/R = Not Required.

Fraud Committee

Mintek has adopted a fraud prevention plan that incorporates

principles contained in the Public Sector Anti-Corruption Strategy,

which focuses particularly on creating awareness and promoting

ethical business conduct. The Fraud Committee, which consists

of standing members with roles in Finance and Security as well

as a neutral Chairperson, is tasked with an ongoing review of the

effectiveness of internal controls.

Management

Mintek is managed by a Chief Executive Officer assisted by five

General Managers. This team, together with the Head: Internal Audit,

makes up Mintek’s Executive Management Committee and meets on a

weekly basis to review strategic and operational issues.

Executive Management is supported by sixteen formally appointed

Divisional Managers who are in charge of Mintek’s operating divisions

and centralised support functions.

Operational Performance

Mintek reports to the Department of Mineral Resources (DMR) and

is also accountable to the Department of Science and Technology

(DST) for its technology-related Research and Development (R&D)

activities. Various Key Performance Indicators (KPIs), encompassing

financial, organisational, innovation and learning, human resources

and transformation perspectives, provide Mintek with a basis for

evaluating its activities in the identified Key Performance Areas.

Each KPI is supported by a set of identified measures, that provide

1


A groundwater quality assessment indicated that the overall

groundwater quality underlying the site is good with no significant

impact from any potential contamination sources.

Radiation Protection Programme

Mintek is registered as a uranium testwork facility with the National

Nuclear Regulator (NNR) and the Department of Energy (DoE).

Mintek has been issued with the following authorisations from the

Department of Energy:

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Thorium.

The Radiation Protection Programme (RPP) has been incorporated as

part of the overall Safety, Health, and Environment programme, and an

internal audit schedule has been implemented to ensure that the RPP

remains relevant and is updated as approved by the NNR.

a more specific and consistent base from which to assess progress.

There is also a framework for peer review should the need arise.

While Mintek’s Executive Committee meets on a weekly basis, the

Management Committee convenes on a monthly basis where both

the business plans and financial results are presented. The budget for

the current year is reviewed in September by Executive Management

in order to keep track of and ensure overall sound financial

management.

Going Concern

The Mintek Board reviewed the entity’s financial budgets for the period

from 1 April 2011 to 31 March 2012 and is satisfied that adequate

resources exist to continue business for the foreseeable future.

Quality, Environment, Safety and Health (QESH)

During August 2010, Mintek’s QESH management systems underwent

a combined surveillance audit against the requirements of ISO

9001:2008 (Quality), ISO 14001:2004 (Environmental Management)

and OHSAS 18001:2007 (Safety and Health). Mintek has been

certified by accredited independent external auditors to meet the

requirements of quality (ISO 9001), environmental management (ISO

14001), and safety and health (OHSAS 18001).

The Lost Time Injury Frequency Rate (LTIFR) remained below

the target of 1 for the year. During April 2010, Mintek’s Client

Dissatisfaction Frequency Rate (CDFR) increased to 15, thus not

meeting the target of less than 10 anymore. The main causes of

client dissatisfaction was due to invoicing and ordering of related

administrative issues, as well as not meeting delivery deadlines on

certain projects. Every client survey that indicated a measure of

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the necessary corrective action taken, the Environmental Incident

Frequency Rate (EIFR) was zero throughout the year.

The Public Dissatisfaction Frequency Rate (PDFR) averaged 1.5

while the target has been set at 1, for the reporting period. Each

public complaint is addressed as a matter of urgency by Mintek

Management. All the public complaints were nuisance-noise-related

(i.e. noise not exceeding the legal limits).

in k u i Di i ion u n y D D

0.7 0.7 0.8 0.8 0.8 0.8 0.6 0.7 0.9

1.2 1.2 1.2 1.1 0.9 0.7 0.8 0.7 0.9 0.9 0.7 0.6

0.1 0.1 0.4 0.4 0.4 0.4

0.0 0.5 1.0 1.5 2.0 2.5 3.0

Jan-

09

Feb-

09

Mar

-09

Apr-0

9

May

-09

Jun-

09

Jul-0

9

Aug-

09

Sep-

09

Oct

-09

Nov

-09

Dec

-09

Jan-

10

Feb-

10

Mar

-10

Apr-1

0

May

-10

Jun-

10

Jul-1

0

Aug-

10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

in k o i n u y u n y

2

annual financial statements and notes

Annual Financial Statements and Notes

FOR THE YEAR ENDED 31 MARCH 2011

Contents

AUDIT COMMITTEE REPORT 44

DIRECTORS' RESPONSIBILITIES AND APPROVAL 45

DIRECTORS' REPORT 46

REPORT OF THE AUDITOR-GENERAL 48

STATEMENT OF FINANCIAL POSITION 49

STATEMENT OF COMPREHENSIVE INCOME 50

STATEMENT OF CHANGES IN EQUITY 51

STATEMENT OF CASH FLOWS 52

ACCOUNTING POLICIES 53

NOTES TO THE FINANCIAL STATEMENTS 57

GENERAL INFORMATION

Country of incorporation South Africaand domicile

Group Directors M Mphomela (Chairperson) MA Mngomezulu (Ex-officio) N Qunta P Streng D Block P White S Sekgobela S Maja (Deputy Chairperson) J Ndlovu M Mabuza T Nell (Alternate to M Mabuza)

Registered office 200 Malibongwe Drive Randburg South Africa 2125

Business address 200 Malibongwe Drive Randburg South Africa 2125

Postal address Private Bag X3015 Randburg South Africa 2125

Bankers Absa Bank Limited

Auditors Auditor-General


Audit Committee ReportTHE AUDIT COMMITTEE has adopted formal terms of reference, which have been confirmed by the Mintek Board, and has performed its responsibilities as set out in the terms of reference. In understanding its responsibilities, the Audit Committee has reviewed the following:

� The effectiveness of the internal control system;

� The effectiveness of the internal audit function;

� The risk areas of the entity to be covered in the internal and external audits;

� The adequacy, reliability and accuracy of the financial information provided to management and other users of such information;

� The accounting or auditing concerns identified as a result of the external and internal audits;

� Compliance with legal and regulatory provisions;

� The activities of the internal audit function;

� The independence, objectivity and effectiveness of the external auditors; and,

� The scope and results of the external audit function.

The Audit Committee is also responsible for:

� Reporting to the Executive Authority and the Auditor-General where the report implicates any members of the accounting authority in fraud, corruption or gross negligence;

� Communicating any concerns it deems necessary to the Executive Authority;

� Confirming the internal auditor’s charter and audit plan;

� Encouraging communication between members of the Mintek Board, senior executive management, the internal auditors and external auditors;

� Conducting investigations within the terms of reference;

� Approving the internal audit work plan; and,

� Defining a policy for non-audit services provided by the external auditor and approving the contracts for non-audit services.

The Audit Committee is satisfied that internal controls and systems have been put in place during the year under review and that controls have functioned effectively during the period. The Audit Committee considers Mintek internal controls and systems to be appropriate in all material respects to:

� Reduce the entity’s risk to an acceptable level;

� Meet the business objectives of the entity;

� Ensure the entity’s assets are adequately safeguarded; and,

� Ensure that the transactions undertaken are recorded in the entity’s records.

The Mintek Board has evaluated the group and the company financial statements for the year ended 31 March 2011 and concluded that they fully comply, in all material aspects, with the requirements of the Public Finance Management Act (PFMA) No.1 of 1999, as amended, and South African Statements of Generally Accepted Accounting Practices (SA Statements of GAAP).

The Audit Committee agrees that the adoption of the going concern premise is appropriate in preparing the annual financial statements.

Paul Streng Chairperson of the Audit Committee. 31 March 2011

Audit Committee members: Mr P Streng Ms D Maja Mr E Ragimana Ms S Sekgobela Ms Z Qunta Ms N LilaDr J Bredell


Directors' Responsibilities and ApprovalTHE DIRECTORS ARE REQUIRED IN TERMS OF THE PUBLIC FINANCE MANAGEMENT ACT to maintain adequate accounting records and are responsible for the content and integrity of the financial statements and related financial information included in this report. It is their responsibility to ensure that the financial statements fairly present the state of affairs of the group as at the end of the financial year and the results of its operations and cash flows for the period then ended, in conformity with South African Statements of Generally Accepted Accounting Practice and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates. The external auditors are engaged to express an independent opinion on the financial statements.

The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the group and place

considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the directors set

standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the proper delegation of

responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable

level of risk. These controls are monitored throughout the group and all employees are required to maintain the highest ethical standards in ensuring

the group’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the group

is on identifying, assessing, managing and monitoring all known forms of risk across the group. While operating risk cannot be fully eliminated, the

group endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within

predetermined procedures and constraints.

The directors are of the opinion, based on the information and explanations given by management, that the system of internal control provides

reasonable assurance that the financial records may be relied on for the preparation of the financial statements. However, any system of internal

financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss.

In the opinion of the directors the group has adequate resources to continue in operational existence for the foreseeable future. This opinion is based

on the 2012 budget and the current financial position of the group.

The external auditors are responsible for independently reviewing and reporting on the group's financial statements. The financial statements have

been examined by the group's external auditors and their report is presented on page 48.

The group financial statements set out on page 49 to 71, which have been prepared on the going concern basis, were approved by the directors on

29 July 2011 and were signed on their behalf by:

M Mphomela MA Mngomezulu


Directors' ReportTHE DIRECTORS OF MINTEK take pleasure in submitting their 2010/2011 report together with the Annual Financial Statements as at 31 March 2011.

PROFILE

Mintek was established by the Mineral Technology Act 30 of 1989 and is listed as a national government business enterprise in schedule 3B of the Public Finance Management Act (PFMA), 1999, as amended.

FINANCIAL RESULTS

The financial statements represent the financial result of Mintek and the consolidated results of its subsidiary, Mindev (Pty) Ltd, for the year ending 31 March 2011.

REPORTING STANDARDS

The Mintek Group’s Annual Financial Statements comply with South African Statements of Generally Accepted Accounting Practice (GAAP) and the PFMA.

ORGANISATIONAL STRUCTURE

Mintek’s organisational structure is shown on page 7 of the annual report.

PRINCIPAL ACTIVITIES

Mintek, South Africa’s national mineral research organisation, is a state-owned enterprise established to ensure the sustainability and growth of the minerals industry through technology development and transfer. In terms of its mandate under the Mineral Technology Act 30 of 1989, Mintek’s main objectives are to promote mineral technology and to foster the establishment and expansion of industries in the field of minerals and products derived therefrom through research.

Specific aims include to:

� Develop efficient mineral processing technologies and sustainable value added products and services.

� Play a significant role in second economy interventions by developing technologies appropriate to the local jewellery, artisanal and small-scale mining (ASSM) industries;

� Support government regional and continental initiatives;

� Develop human and organisational skills whilst transforming its internal and external business processes and the workforce; and,

� Uphold good governance practices.

FINANCIAL AFFAIRS

The effects of the economic recession continued to affect the financial position of Mintek. The net loss for the period was R2,1 million compared with a profit of R1,7 million in the comparable period. The revenue decreased by 3% from the previous year due to lower demand for product and services while contract research work was higher than expected. The Research and Development phase of the ConRoast process was concluded in the previous financial year and since then there was no toll smelting in the upgraded 3,2 MW Bay 2 furnace resulting in lost revenue of more than R40 million while fixed costs had to be incurred. As a result of the completion of the developmental phase, with Braemore focusing on the rapid commercialisation of the technology, Braemore Resources handed over to Mintek ownership of the full investment made in the design, construction and commissioning of the upgraded smelting operation in Bay 2 worth about R30 million. The ownership of this equipment gives Mintek the opportunity to undertake toll smelting services for other clients or modify, adapt or further develop this technology. Negotiations are at advanced stages with other companies who may be interested in utilising this upgraded facility. It has become evident that the full utilisation of the Bay 2 facility is key in improving Mintek revenue. The current year commercial work was also characterised by the lack of big pilot plants which were substituted by smaller test work. Notwithstanding these difficulties, gross margin on commercial related projects was maintained at an average of 20%, slightly lower than the previous year.

The Government grant on the other hand, reflects an inflationary increase of 5.2% from the previous year. A slight decrease in the baseline alloca-tion is expected over the MTEF while an increase of about R60 million is expected in the project specific allocation such as the water treatment technologies and the rehabilitation of ownerless and derelict mines. Interest income continued to be a strong source of revenue for Mintek with an


increasing number of clients paying for work in advance. It was however slightly lower than last year due to the decrease in interest rates.

The company is carefully conserving its cash reserves through appropriate measures. These measures include amongst others the freezing of certain posts, granting inflation-linked increments and deferring certain expenditures. Mintek is of the view that the difficulties experienced in the commercial work are short term and therefore no drastic decisions were taken to reduce the fixed cost and this resulted in a minor decrease in expenditure compared to the previous financial year.

Cash flow

Cash generated from operations increased to R33,3 million, from R2,7m generated in 2010. This increase is mainly due to a significant increase in cash received in advance (deferred income). Cash used in investing activities consisted primarily of capital expenditure of R62.6 million and an increase in investments held.

Outlook

Overall, Mintek expects better financial results in the foreseeable future. There are strong indications that the sales pipeline will strengthen as the new financial year progresses and Bay 2 is expected to resume operations towards the end of the 2012financial year.

JUDICIAL PROCEEDINGS

The directors are not aware of any significant judicial proceedings against Mintek, except those as disclosed in note 25 of the Annual Financial Statements.

POST-BALANCE SHEET EVENTS

There were no material post-balance sheet events that the directors are aware of.

SUBSIDIARIES

The information relating to the entity’s financial interest in its subsidiary is disclosed in note 4 of the Annual Financial Statements.

THE GROUP DIRECTORS OF MINTEK AS AT 31 MARCH 2011

Executive Director: Mr MA Mngomezulu Non-Executive Directors: Mr M Mphomela – Chairperson Ms N Qunta Mr P Streng Adv D Block Mr P White Ms S Sekgobela Ms S Maja - Deputy Chairperson Ms J Ndlovu Mr M Mabuza Mr T Nell (Alternate to Mr M Mabuza)

The acting board secretary is Mr H Michau, and the business and postal addresses are as follows:200 Malibongwe Drive Private Bag X3015Randburg Randburg2125 2125

1. Interest in subsidiaries

Mindev (Proprietary) Limited

The subsidiary is 100% owned by Mintek and was dormant in the current year.

Details of the company's investment in subsidiaries are set out in note 4.

2. Auditors

Auditor-General will continue in office in accordance with section 4 of the Public Audit Act, and will conduct the audit in

terms of section 8(2) of the Public Finance Management Act No.1 of 1999.


Report of the Auditor-GeneralREPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE COUNCIL FOR MINERAL TECHNOLOGY REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

Introduction

1. I have audited the accompanying consolidated and separate financial statements of the Council for Mineral Technology (MINTEK), which comprise the consolidated and separate statement of financial position as at 31 March 2011, and the consolidated and separate statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information as set out on pages 49 to 71.

Accounting authority’s responsibility for the consolidated financial statements

2. The accounting authority is responsible for the preparation and fair presentation of these consolidated and separate financial statements in accordance with South African Statements of Generally Accepted Accounting Practices ( SA Statements of GAAP) and the requirements of the Public Finance Management Act of South Africa, 1999 ( Act No. 1 of 1999) ( PFMA ) and the Mineral Technology Act, 1989 ( Act No. 30 of 1989), and for such internal control as management determines necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s responsibility

3. As required by section 188 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), section 4 of the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and section 12(2)(a) of the Mineral Technology Act, 1989 (Act No. 30 of 1989), my responsibility is to express an opinion on these financial statements based on my audit.

4. I conducted my audit in accordance with International Standards on Auditing and General Notice 1111 of 2010 issued in Government Gazette 33872 of 15 December 2010. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated and separate financial statements are free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated and separate financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated and separate financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal

control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated and separate financial statements.

6. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

7. In my opinion, the consolidated and separate financial statements present fairly, in all material respects, the financial position of MINTEK and its subsidiary as at 31 March 2011, and their financial performance and cash flows for the year then ended in accordance with the South African Statements of Generally Accepted Accounting Practice (SA Statements of GAAP) and the requirements of the PFMA and the Mineral Technology Act.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

8. In accordance with the PAA and in terms of General Notice 1111 of 2010 issued in Government Gazette 33872 of 15 December 2010, I include below my findings on the annual performance report as set out on pages 10 to 15 and material non-compliance with laws and regulations applicable to the public entity.

Predetermined objectives

9. There were no material findings on the annual performance report concerning the presentation, usefulness and reliability of the information.

Compliance with laws and regulations 10. There were no findings concerning material non-compliance

with applicable laws and regulations regarding financial matters, financial management and other related matters.

INTERNAL CONTROL

11. In accordance with the PAA and in terms of General Notice 1111 of 2010 issued in Government Gazette 33872 of 15 December 2010, I considered internal control relevant to my audit, but not for the purpose of expressing an opinion on the effectiveness of internal control. There are no significant deficiencies in internal control that resulted in a qualification of the auditor’s opinion on the financial statements or findings on predetermined objectives or material non-compliance with laws and regulations.

Pretoria29 July 2011


GROUP COMPANY

Figures in Rand(s) Note(s) 2011 2010 2011 2010

Assets

Non-Current Assets

Property, plant and equipment 2 208,615,438 191,850,928 208,615,438 191,850,928

Intangible assets 3 2,948,386 3,457,152 2,948,386 3,457,152

Investments in subsidiaries 4 - - 100 100

Long term loans and advances 5 - 4,636 - 4,636

211,563,824 195,312,716 211,563,924 195,312,816

Current Assets

Inventories 7 5,722,346 6,538,871 5,722,346 6,538,871

Current tax receivable 502,469 - - -

Trade and other receivables 8 43,914,841 60,242,726 43,914,841 60,242,726

Short term investments 9 246,809,439 222,888,020 246,809,439 222,888,020

Cash and cash equivalents 20,702,546 3,760,522 20,702,546 3,760,522

317,651,641 293,430,139 317,149,172 293,430,139

Total Assets 529,215,465 488,742,855 528,713,096 488,742,955

Equity and Liabilities

Equity

Reserves 132,945,675 109,358,306 132,945,675 109,358,306

Retained income 231,536,476 232,698,048 191,561,711 193,386,058

364,482,151 342,056,354 324,507,386 302,744,364

Liabilities

Non-Current Liabilities

Finance lease obligation 10 - 422,532 - 422,532

Retirement benefit obligation 11 28,287,105 30,545,000 28,287,105 30,545,000

28,287,105 30,967,532 28,287,105 30,967,532

Current Liabilities

Loans from group companies 6 - - 39,472,396 39,472,396

Current tax payable - 160,306 - -

Trade and other payables 12 35,007,518 38,820,531 35,007,518 38,820,531

Deferred income 13 100,870,259 76,373,594 100,870,259 76,373,594

Provisions 14 568,432 364,538 568,432 364,538

136,446,209 115,718,969 175,918,605 155,031,059

Total Liabilities 164,733,314 146,686,501 204,205,710 185,998,591

Total Equity and Liabilities 529,215,465 488,742,855 528,713,096 488,742,955

STATEMENT OF FINANCIAL POSITION AT 31 MARCH 2011


GROUP COMPANY


Continuing operations

Revenue 15 337,160,039 346,795,197 337,160,039 346,795,197

Other operating income 16 6,342,094 6,049,878 6,342,094 6,049,878

Loss on exchange differences (2,192,525) (3,718,463) (2,192,525) (3,718,463)

Investment income 17 16,324,384 21,895,534 16,324,384 21,532,951

Employee costs (227,157,971) (228,709,077) (227,157,971) (228,709,077)

Operating expenses (79,976,062) (82,985,888) (79,976,062) (82,985,888)

Finance costs 18 (3,534,993) (3,328,922) (3,534,993) (3,328,922)

Auditors remuneration 19 (1,651,364) (2,556,579) (1,651,364) (2,556,579)

Fees for services 20 (39,300,384) (37,910,666) (39,300,384) (37,909,466)

Depreciation, amortisation and impairments 21 (12,424,447) (14,163,772) (12,424,447) (14,163,772)

Profit/(Loss on) sale of assets and liabilities 265,324 (69,467) 265,324 (69,467)

Actuarial Gains 3,423,769 496,520 3,423,769 496,520

(Loss)/profit before taxation (2,722,136) 1,794,295 (2,722,136) 1,432,912

Taxation 31 662,775 (101,187) - -

(Loss)/profit for the year (2,059,361) 1,693,108 (2,722,136) 1,432,912

Gains on property valuation 24,485,158 - 24,485,158 -

Total comprehensive income 22,425,797 1,693,108 21,763,022 1,432,912

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2011

0


Figures in Rand(s) Revaluation reserve Retained income Total equity

GROUP

Balance at 31 March 2009 110,256,095 230,107,151 340,363,246

Changes in equity

Total comprehensive income for the year - 1,633,108 1,693,108

Depreciation on valuation of buildings (897,789) 897,789 -

Total changes (897,789) 2,590,897 1,693,108

Balance at 31 March 2010 109,358,306 232,698,048 342,056,354

Changes in equity

Total comprehensive income for the year 24,485,158 (2,059,361) 22,425,797


Total changes 23,587,369 (1,161,572) 22,425,797

Balance at 31 March 2011 132,945,675 231,536,476 364,482,151

MINTEK

Balance at 31 March 2009 110,256,095 191,055,357 301,311,452

Changes in equity

Total comprehensive income for the year - 1,432,912 1,432,912


Total changes (897,789) 2,330,701 1,432,912

Balance at 31 March 2010 109,358,306 193,386,058 302,744,364

Changes in equity

Total comprehensive income for the year 24,485,158 (2,722,136) 21,763,022


Total changes 23,587,369 (1,824,347) 21,763,022

Balance at 31 March 2011 132,945,675 191,561,711 324,507,386

STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2011

1


GROUP COMPANY


Cash flows from operating activities

Cash receipts from customers 385,296,486 376,288,632 386,005,016 372,843,557

Cash paid to suppliers and employees (351,974,019) (373,496,106) (352,682,549) (373,572,555)

Cash generated from operations 22 33,322,467 2,792,526 33,322,467 (728,998)

Interest received 14,556,425 19,283,636 14,556,425 18,921,053

Provision utilised (1,053,229) (1,616,568) (1,053,229) (1,616,568)

Finance costs (44,594) (93,668) (44,594) (93,668)

Net cash from operating activities 46,781,069 20,365,926 46,781,069 16,481,819

Cash flows from investing activities

Additions to property, plant and equipment 2 (62,575,991) (25,119,794) (62,575,991) (25,119,794)

Additions to intangible assets 3 (1,212,571) (533,633) (1,212,571) (533,633)

Funding received towards purchasing of property, plant and equipment 2 59,416,858 20,381,777 59,416,858 20,381,777

Funding received towards purchasing of intangible assets 3 410,736 46,000 410,736 46,000

Increase in investments (23,921,419) (86,681,872) (23,921,419) (86,681,872)

Net cash from investing activities (27,882,387) (91,907,522) (27,882,387) (91,829,873)

Cash flows from financing activities

Receipts for subsidiary - - - 3,806,458

Long-term creditor payments (422,532) (244,848) (422,532) (244,848)

Post-retirement health care - settlement (1,534,126) (4,070,977) (1,534,126) (4,070,977)

Net cash from financing activities (1,956,658) (4,315,825) (1,956,658) (509,367)

Total cash movement for the year 16,942,024 (75,857,421) 16,942,024 (75,857,421)

Cash at the beginning of the year 3,760,522 79,617,943 3,760,522 79,617,943

Total cash at end of the year 20,702,546 3,760,522 20,702,546 3,760,522

STATEMENTS OF CASH FLOW FOR THE YEAR ENDED 31 MARCH 2011

2


ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2011

1. Presentation of Financial Statements

The financial statements have been prepared in accordance with South African Statements of Generally Accepted Accounting Practice, the Public Finance Management Act and Treasury Guidelines. The financial statements have been prepared on the historical cost basis, and incorporate the principal accounting policies set out below. They are presented in South African Rand.

These accounting policies are consistent with the previous period.

For purposes of these financial statements, all references to 'Company' refers to Mintek, the public entity.

1.1 Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and all entities, controlled by the company.

Control exists when the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

1.2 Property, plant and equipment

The cost of an item of property, plant and equipment is recognised as an asset when:

� it is probable that future economic benefits associated with the item will flow to the company; and

� the cost of the item can be measured reliably.

Property, plant and equipment are initially measured at cost.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.

Land and buildings are carried at revalued amount, being the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are made with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of the revaluation is restated proportionately with the change in the gross carrying amount of the asset so that the carrying amount of the asset after revaluation equals its revalued amount.

Any increase in an asset’s carrying amount, as a result of a revaluation, is recognised to other comprehensive income and accumulated in the revaluation surplus in equity. The increase is recognised in other comprehensive income to the extent that it reverses a revaluation decrease of the same asset previously recognised in the Statement of Comprehensive Income.

Any decrease in an asset’s carrying amount, as a result of a revaluation, is recognised in the Statement of Comprehensive Income in the current period. The decrease is recognised in other comprehensive income to the extent of any credit balance existing in the revaluation surplus in respect of that asset. The decrease recognised in other comprehensive income reduces the amount accumulated in the revaluation surplus in equity.

The revaluation surplus in equity related to a specific item of property, plant and equipment is transferred directly to retained earnings when the asset is derecognised.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Average useful life

Buildings 50 years

Plant and machinery 5 - 10 years

Furniture and fixtures 5 years

Motor vehicles 5 years

Office equipment 3 - 10 years

IT equipment 3 - 5 years

The residual value, useful life and depreciation method of each asset are reviewed at the end of each reporting period. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate.

The depreciation charge for each period is recognised in the Statement of Comprehensive Income unless it is included in the carrying amount of another asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in the Statement of Comprehensive Income when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

1.3 Intangible assets

An intangible asset is recognised when:

� it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity; and,

� the cost of the asset can be measured reliably.

Intangible assets are initially recognised at cost.

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.

Intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of comprehensive income when the asset is derecognised.

Amortisation is provided to write down the intangible assets, on a straight-line basis, to their residual values as follows:

Item Useful lifeComputer software 3 - 4 years

1.4 Investments in subsidiaries

In the Mintek financial statements, investments in subsidiaries are carried at cost less any accumulated impairment.

The cost of an investment in a subsidiary is the aggregate of:

��the fair value, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the company; plus,

� any costs directly attributable to the purchase of the subsidiary.

An adjustment to the cost of a business combination contingent on future events is included in the cost of the combination if the adjustment is probable and can be measured reliably.

1.5 Financial instruments

Classification

The group classifies financial assets and financial liabilities into the following categories:

� Financial assets at fair value through the Statement of Comprehensive Income - held for trading;

� Held-to-maturity investment;

� Loans and receivables; and,

� Financial liabilities measured at amortised cost.

Classification depends on the purpose for which the financial instruments were obtained/ incurred and takes place at initial recognition. Classification is re-assessed on an annual basis, except for derivatives and financial assets designated as at fair value through the Statement of Comprehensive Income, which shall not be classified out of the fair value through the Statement of Comprehensive Income category.

Initial recognition and measurement

Financial instruments are recognised initially at cost when the group becomes a party to the contractual provisions of the instruments.


The group classifies financial instruments, or their component parts, on initial recognition as a financial asset or a financial liability in accordance with the substance of the contractual arrangement.

For financial instruments which are not at cost through the Statement of Comprehensive Income, transaction costs are included in the initial measurement of the instrument.

Subsequent measurement

Financial instruments at cost through the Statement of Comprehensive Income are subsequently measured at fair value, with gains and losses arising from changes in fair value being included in profit or loss for the period.

Loans and receivables are subsequently measured at amortised cost, using the effective interest method, less accumulated impairment losses.

Held-to-maturity investments are subsequently measured at amortised cost, using the effective interest method, less accumulated impairment losses.

Gains and losses arising from changes in fair value are recognised in other comprehensive income and accumulated in equity until the asset is disposed of or determined to be impaired.

Financial liabilities at amortised cost are subsequently measured at amortised cost, using the effective interest method.

Derecognition

Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the group has transferred substantially all risks and rewards of ownership.

Impairment of financial assets

At each reporting date the group assesses all financial assets, other than those at fair value through the Statement of Comprehensive Income, to determine whether there is objective evidence that a financial asset or group of financial assets has been impaired.

For amounts due to the group, significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy and default of payments are all considered indicators of impairment.

Impairment losses are recognised in the Statement of Comprehensive Income.

Impairment losses are reversed when an increase in the financial asset's recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the financial asset at the date that the impairment is reversed shall not exceed what the carrying amount would have been had the impairment not been recognised.

Reversals of impairment losses are recognised in theStatement of Comprehensive Income except for equity investments classified as available-for-sale.

Impairment losses are also not subsequently reversed for available-for-sale equity investments which are held at cost because fair value was not determinable.

Where financial assets are impaired through use of an allowance account, the amount of the loss is recognised in the Statement of Comprehensive Income within operating expenses. When such assets are written off, the write-off is made against the relevant allowance account. Subsequent recoveries of amounts previously written off are credited against operating expenses.

Loans to/(from) group companies

These include loans to and from the holding company and the subsidiary.

Loans to group companies are classified as loans and receivables.

Loans from group companies are classified as financial liabilities measured at amortised cost.

Trade and other receivables

Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in the Statement of Comprehensive Income when there is objective evidence that the asset is impaired. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that the trade receivable is impaired. The allowance recognised is


measured at the carrying amount.

The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the Statement of Comprehensive Income within operating expenses. When a trade receivable is uncollectable, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against operating expenses in the Statement of Comprehensive Income.

Trade and other payables

Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.

Cash and cash equivalents

Cash and cash equivalents comprise cash-on-hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially and subsequently recorded at fair value.

Derivatives

The Group does not use derivative financial instruments including forward rate agreements and forward exchange contracts to hedge exposure rate and foreign fluctuations. It is the Group's policy not to hedge its exposure from foreign currency fluctuations, as it does not consider the impact to be significant. It is the policy of the Group not to trade in derivative financial instruments for speculative purposes.

1.6 Investments

Investments consist of short-term money market instruments initially recorded at cost, which is fair value of the cash placed with the institution. These investments are held-to-maturity financial assets. Interest is accrued using the effective interest rate method and included in the statement of comprehensive income on an accrual basis.

1.7 Taxation

Current tax assets and liabilities

Current tax for current and prior periods is, to the extent unpaid, recognised as a liability. If the amount already paid in respect of current and prior periods exceeds the amount due for those periods, the excess is recognised as an asset.

Current tax liabilities/(assets) for the current and prior periods are measured at the amount expected to be paid to/ (recovered from) the tax authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The company is exempt from paying Income Tax in terms of section 10(1) cA(i) of the Income Tax Act no.58 of 1962, but registered for VAT. Mindev is registered for Income Tax.

The tax currently payable is based on taxable profit for the financial year. Mindev's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

1.8 Irregular, fruitless and wasteful expenditure

Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement of any applicable legislation, including:

� The Public Finance Management Act; or,

� Any provincial legislation providing for procedures in that state owned entity.

Fruitless and wasteful expenditure means expenditure that was made in vain and could have been avoided had reasonable care been exercised. All irregular, fruitless and wasteful expenditure is charged against income in the period in which they are incurred.

1.9 Financing costs

Financing costs are recognised in the statement of comprehensive income in the period in which they are incurred.

1.10 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer


substantially all the risks and rewards incidental to ownership.

Finance leases – lessee

Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the company's incremental borrowing rate.

The lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate on the remaining balance of the liability.

Operating leases - lessor

Operating lease income is recognised as an income on a straight-line basis over the lease term.

Initial direct costs incurred in negotiating and arranging operating leases are added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as the lease income.

Income for leases is disclosed under other operating income in the statement of comprehensive income.

Operating leases – lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset. This liability is not discounted.

1.11 Inventories

Inventories are measured at the lower of cost and net realisable value on the weighted average cost method.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

The cost of inventories comprises of all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

The cost of inventories of items that are not ordinarily interchangeable and goods or services produced and segregated for specific projects is assigned using specific identification of the individual costs.

When inventories are sold, the carrying amounts of those inventories are recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of inventories to net realisable value and all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value, are recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

1.12 Impairment of assets

The group assesses at each end of the reporting period whether there is any indication that an asset may be impaired. If any such indication exists, the group estimates the recoverable amount of the asset.

Irrespective of whether there is any indication of impairment, the group also:

� tests intangible assets with an indefinite useful life or intangible assets not yet available for use for impairment annually by comparing its carrying amount with its recoverable amount. This impairment test is performed annually.

If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is determined.

The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount


of the asset is reduced to its recoverable amount. That reduction is an impairment loss.

An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately in the Statement of Comprehensive Income. Any impairment loss of a revalued asset is treated as a revaluation decrease.

An impairment loss is recognised for cash-generating units if the recoverable amount of the unit is less than the carrying amount of the units. The impairment loss is allocated to reduce the carrying amount of the assets of the unit in the following order:

� first, to reduce the carrying amount of any goodwill allocated to the cash-generating unit; and,

� then, to the other assets of the unit, pro rata on the basis of the carrying amount of each asset in the unit.

The company assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for assets may no longer exist or may have decreased. If any such indication exists, the recoverable amounts of those assets are estimated.

A reversal of an impairment loss of assets carried at cost less accumulated depreciation or amortisation other than goodwill is recognised immediately in the Statement of Comprehensive Income. Any reversal of an impairment loss of a revalued asset is treated as a revaluation increase.

1.13 Employee benefits

Defined contribution plans

Payments to defined contribution retirement benefit plans are charged as an expense as they fall due.

Payments made to retirement benefit schemes are dealt with as defined contribution plans where the group’s obligation under the schemes is equivalent to those arising in a defined contribution retirement benefit plan.

For defined contribution plans, the Group pays contribution to privately administered pension insurance plans on a contractual basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due.

Defined benefit plans

Actuarial valuations are conducted on an annual basis by independent actuaries separately for each plan.

Actuarial gains and losses are recognised in full in the reporting period it relates to and is the excess over the greater of the present value of the past service obligation at the reporting period before deducting the present value of assumed assets at the same date.

Valuations of these obligations are carried out annually by independent, qualified actuaries using the appropriate mortality tables, long-term estimates of increases in medical costs and appropriate discount rates.

Consideration is given to any event that could impact the funds up to the end of the reporting period where the interim valuation is performed at an earlier date.

Past service costs are recognised immediately to the extent that the benefits are already vested, and are otherwise amortised on a straight line basis over the average period until the amended benefits become vested.

The liability recognised in the balance sheet in respect of the defined benefit pension plans is the present value of the defined obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised past-service costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method.

Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payment is available.

The Group has an obligation to fund the medical aid benefits of all its past employees and dependents of past employee who retired or were in the employment of the Group prior to 31 December 1999. The plan liability is unfunded and fully provided for in the financial statements. The Group uses the projected unit credit actuarial method to determine the


present value of its past service cost. General increases to medical aid contributions were estimated taking into account the projected future changes in the cost of medical services resulting from both inflation and specific changes to medical costs.

1.14 Provisions and contingencies

Provisions are recognised when:

� the group has a present obligation as a result of a past event;

� it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and,

� a reliable estimate can be made of the obligation.

The amount of a provision is the present value of the expenditure expected to be required to settle the obligation.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, thebreimbursement shall be recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset. The amount recognised for the reimbursement shall not exceed the amount of the provision.

Provisions are not recognised for future operating losses.

If the company has a contract that is onerous, the present obligation under the contract shall be recognised and measured as a provision.

After their initial recognition contingent liabilities recognised in business combinations that are recognised separately are subsequently measured at the higher of:

� the amount that would be recognised as a provision; and

� the amount initially recognised less cumulative amortisation.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 25.

1.15 Government grants

Government grants are recognised at fair value when there is reasonable assurance that:

� the group will comply with the conditions attaching to them; and,

� the grants will be received.

Government grants are recognised as income over the periods necessary to match them with the related costs that they are intended to compensate.

A government grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs is recognised as income of the period in which it becomes receivable.

Government grants related to assets, including non-monetary grants at fair value, are presented in the statement of financial position by setting up the grant as deferred income or by deducting the grant in arriving at the carrying amount of the asset.

Grants related to income are presented as a credit in the Statement of Comprehenive Income (separately).

Where a loan is received from government at below market interest rate, the difference between the fair value of the loan and the amount received is recognised as a government grant.

1.16 Revenue

Revenue from the sale of goods is recognised when all the following conditions have been satisfied:

� the group has transferred to the buyer the significant risks and rewards of ownership of the goods;

� the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

� the amount of revenue can be measured reliably;

� it is probable that the economic benefits associated with the transaction will flow to the group; and,

� the costs incurred or to be incurred in respect of the transaction can be measured reliably.


When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the end of the reporting period.

The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:

� the amount of revenue can be measured reliably;

� it is probable that the economic benefits associated with the transaction will flow to the group;

� the stage of completion of the transaction at the end of the reporting period can be measured reliably; and,

� the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue shall be recognised only to the extent of the expenses recognised that are recoverable.

Service revenue is recognised by reference to the stage of completion of the transaction at the end of the reporting period. Stage of completion is determined by the actual costs in relation to the plan cost of a project.

Service fees included in the price of the product are recognised as revenue over the period during which the service is performed.

Contract revenue comprises:

� the initial amount of revenue agreed in the contract; and

� variations in contract work, claims and incentive payments:

- to the extent that it is probable that they will result in revenue; and

- they are capable of being reliably measured.

Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods and services provided in the normal course of business, net of trade discounts and volume rebates, and value added tax.

Interest is recognised, in the Statement of Comprehensive Income, using the effective interest rate method.

1.17 Translation of foreign currencies

Foreign currency transactions

A foreign currency transaction is recorded, on initial recognition in Rand, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

At the end of the reporting period:

� foreign currency monetary items are translated using the closing rate;

� non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction; and

� non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are recognised in profit or loss in the period in which they arise.

Cash flows arising from transactions in a foreign currency are recorded in Rand by applying to the foreign currency amount the exchange rate between the Rand and the foreign currency at the date of the cash flow.


GROUP and COMPANY

2011 2010

Cost/Valuation

Accumulated depreciation

Carrying value

Cost/Valuation Accumulated depreciation

Carrying value

2. Property, plant and equipment

Land 91,747,897 - 91,747,897 83,944,108 - 83,944,108

Buildings 85,547,329 (15,767,809) 69,779,520 67,983,708 (14,302,844) 53,680,864

Plant and machinery 37,952,849 (27,388,410) 10,564,439 40,775,883 (27,772,320) 13,003,563

Furniture and fixtures 3,890,526 (2,004,401) 1,886,125 3,416,056 (1,823,222) 1,592,834

Motor vehicles 990,581 (935,762) 54,819 990,581 (858,400) 132,181

Equipment 158,711,523 (126,784,316) 31,927,207 105,457,973 (67,153,075) 38,304,898

Capital assets under construction 2,655,431 - 2,655,431 975,148 - 975,148

Finance lease assets - - - 2,012,248 (1,794,916) 217,332

Total 381,496,136 (172,880,698) 208,615,438 305,555,705 (113,704,777) 191,850,928

Reconciliation of the carrying value of property, plant and equipment GROUP and COMPANY - 2011

Opening balance Additions Disposals Funded

Assets Transfers Revaluation Adjustments Depreciation Total

Land 83,944,108 - - - - 7,803,789 - - 91,747,897

Buildings 53,680,864 113,714 - - 768,538 16,681,369 - (1,464,965) 69,779,520

Plant and machinery 13,003,563 - (9,849) - - - (104,015) (2,325,260) 10,564,439

Furniture and fixtures 1,592,834 709,360 (1,634) - 7,653 - 90,995 (513,083) 1,886,125

Motor vehicles 132,181 - - - - - - (77,362) 54,819

Equipment 38,304,898 59,100,593 (116,240) (59,416,858) 195,850 - 385,750 (6,526,786) 31,927,207

Capital assets under construction

975,148 2,652,324 - - (972,041) - - - 2,655,431

Finance lease assets 217,332 - (10,942) - - - - (206,390) -

Total 191,850,928 62,575,991 (138,665) (59,416,858) - 24,485,158 372,730 (11,113,846) 208,615,438

Reconciliation of the carrying value of property, plant and equipment GROUP and COMAPNY - 2010

Opening balance Additions Disposals Funded

Assets Transfers Reclassification Depreciation Total

Land 80,300,908 - - - - 3,643,200 - 83,944,108

Buildings 46,385,277 79,690 (2) - (136,726) 8,815,608 (1,462,983) 53,680,864

Plant and machinery 15,694,750 7,932 (3,041) - (137,334) - (2,558,744) 13,003,563

Furniture and fixtures 1,262,642 664,234 (420) - - - (333,622) 1,592,834

Motor vehicles 239,824 - - - - - (107,643) 132,181

Equipment 42,567,303 23,410,556 (39,234) (20,381,777) 795,685 - (8,047,635) 38,304,898

Capital assets under construction

536,942 957,382 - - (519,176) - - 975,148

Finance lease assets 744,518 - (38,705) - - - (488,481) 217,332

Total 187,732,164 25,119,794 (81,402) (20,381,777) 2,449 12,458,808 (12,999,108) 191,850,928

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

Other information Funding received during the current financial year for the purchase of assets is R59,051,842 (R20,381,777 for 2010). Included in this is R30,609,067 capitalised on 1 April 2010 for ConRoast Capital upgrade funded by an external party.Fully depreciated assets and funded assets with a total net value of R99,722,873 (2010 - R39,483,401) are still in use. These assets are recorded at R1 in the asset register. During the verification of assets, assets with a total net book value of R3,316,973 were added to the asset register and assets with a total net book value of R2,944,243 were written-off. The net value of this adjustment is R372,730.


GROUP COMPANY

Figures in Rand(s) 2011 2010 2011 2010

2. Property, plant and equipment (continued)

Carrying value

Land 91,747,897 83,944,108 91,747,897 83,944,108

Buildings 69,779,520 53,680,864 69,779,520 53,680,864

Plant 10,564,439 13,003,563 10,564,439 13,003,563

Equipment 31,927,207 38,304,898 31,927,207 38,304,898

Vehicles 54,819 132,181 54,819 132,181

Furniture and fittings 1,886,125 1,592,834 1,886,125 1,592,834

Finance lease assets - 217,332 - 217,332

Capital work in progress 2,655,431 975,148 2,655,431 975,148

208,615,438 191,850,928 208,615,438 191,850,928

Freehold land and buildings comprise:

Land and buildings original cost 11,759,900 11,759,900 11,759,900 11,759,900

Revaluation until 31 March 2006 75,373,132 75,373,132 75,373,132 75,373,132

Revaluation 31 March 2008 49,324,836 49,324,836 49,324,836 49,324,836

Additions and transfers 2009 3,068,180 3,068,180 3,068,180 3,068,180

Additions and transfers 2010 12,401,768 13,078,036 12,401,768 13,078,036

Additions and transfers 2011 882,252 - 882,252 -

Revaluation 31 March 2011 6,049,830 - 6,049,830 -

Revaluation at cost 158,859,898 152,604,084 158,859,898 152,604,084

Directors' valuation 158,859,898 152,604,084 158,859,898 152,604,084

Portion 175 and portion 226 of the farm Klipfontein, 203-IQ Johannesburg, with buildings thereon and the sectional land and titled units at Malnshof Heights, located at Erf 560 Malanshof. The value of the building complex was estimated at R158 859 898 by Resurgent Projects (Pty) Ltd., an independent valuator, during the finan-cial year ending 31 March 2011. The latest valuation report was issued on 25 May 2011. The key assumptions used were that the value of the property be based as sale of vacant land for rental investment using various rental income figures for different areas of the Mintek property. These calculated rentals were then capital-ised at 13%.The estimated useful lives of depreciable property, plant, equipment and vehicles are as follows:Buildings 50 yearsPlant 5 - 10 yearsEquipment 3 - 10 yearsVehicles 5 yearsFurniture and fittings 5 years



GROUP and COMPANY

Figures in Rand(s) 2011 2010

3. Intangible assets Cost /Valuation Accumulated amortisation

Carrying value Cost /Valuation Accumulated amortisation

Carrying value

Computer software 7,748,441 (4,800,055) 2,948,386 6,946,606 (3,489,454) 3,457,152

Reconciliation of intangible assets - Group and Mintek - 2011

Opening balance Acquisitions Funded assets Transfers Amortisation Total

Computer software 3,457,152 1,212,571 (410,736) _ (1,310,601) 2,948,386

Reconciliation of intangible assets - Group and Mintek - 2010

Opening balance Acquisitions Funded assets Transfers Amortisation Total

Computer software 4,135,480 533,633 (46,000) (1,299) (1,164,662) 3,457,152

Funding received during the current financial year is R410,736 (2010:R46,000)The estimated useful lives of depreciable intangible assets are as follows: 3 - 5 years


Figures in Rand(s) 2011 2010 2011 2010

4. Investments in subsidiaries Held by Mintek % holding % holding carrying amount carrying amount

Mindev (Pty) Ltd 100% 100% 100 100

Mindev is engaged in the commercialization of Mintek's patents and technology through the identification of suitable partners to advance such interests by way of direct investment in equity and through joint ventures.Mintek holds 100% of the issued share capital of Mindev (Propriety) Limited. The carrying amounts of the subsidiaries are shown net of impairment losses.

Figures in Rand(s) GROUP MINTEK

5. Long term loans and advances

Staff loans

Advances to staff for vehicle loans - 267,116 - 267,116

Less short term portion of staff loans - (262,480) - (262,480)

- 4,636 - 4,636

The staff loans were advanced to qualifying staff to finance the purchase of motor vehicles. The monthly instalments were deducted from the employees' salaries. These loans bore interest at prime overdraft rates less 3% and repayable within 36 months. All loans were settled in the current financial year.

6. Loans from group companies

Subsidiaries

Mindev (Pty) Ltd

Non-interest bearing loan - - 39,472,396 39,472,396

The loans granted are unsecured and do not have fixed repayment terms. The carrying amount of the loan to Mintek is denominated in Rands.

7. Inventories

Consumables 3,354,975 3,255,147 3,354,795 3,255,147

Finished goods 2,322,749 3,283,724 2,322,749 3,283,724

Work-in-progress 44,622 - 44,622 -

5,722,346 6,538,871 5,722,346 6,538,871

Carrying value of inventories carried at fair value less costs to sell 5,722,346 6,538,871 5,722,346 6,538,871

Consumables are held in stock for daily business requirements. Finished goods relate to products manufactured by the MAC division.


GROUP COMPANY

Figures in Rand(s) 2011 2010 2011 2010

8. Trade and other receivables

Trade receivables 29,528,087 45,427,417 29,528,087 45,427,417

Prepayments 4,154,278 4,050,517 4,154,278 4,050,517

Short term portion of staff loans - 262,480 - 262,480

Unearned interest on fair value debtors (discounting) 74,739 511,635 74,739 511,635

Project work-in-progress 10,008,397 8,449,085 10,008,397 8,449,085

Other receivables 450,665 3,877,480 450,665 3,877,480

Less: Provision for impairment (301,325) (2,335,888) (301,325) (2,335,888)

43,914,841 60,242,726 43,914,841 60,242,726

Projects work-in-progress relates to projects where work has been executed, but not yet billed.

Age analysis

The following is an age analysis of trade receivables at balance sheet date:

0-30 days 24,758,849 26,606,315 24,758,849 26,606,315

31-60 days past due 1,753,317 1,615,891 1,753,317 1,615,891

61-90 days past due 931,097 1,896,241 931,097 1,896,241

90+ days past due 2,084,824 15,308,970 2,084,824 15,308,970

29,528,087 45,427,417 29,528,087 45,427,417

The age analysis reflects the categories of overdue debts.

Fair value of trade receivables

Trade and other receivables 43,914,841 60,242,726 43,914,841 60,642,726

Provision for impairment

Included in the trade receivable balance are debtors which are past the original expected collection date at the reporting date, with a carrying amount of R2 714 596 (2010:R14 869 323) for which the company has not provided as there has not been a significant change in credit quality and the amounts are still considered recoverable. The company does not hold any collateral over these balances. The average age of these balances is 93 days (2010: 76 days). A summarised age analysis of due debtors is set out below.

The ageing of amounts due but not impaired is as follows:

60 - 90 days 931,097 1,896,241 931,097 1,896,241

More than 90 days 1,783,499 12,973,082 1,783,499 12,973,082

2,714,596 14,869,323 2,714,596 14,869,323

Trade and other receivables impaired

As of 31 March 2011, trade receivables of R3 544 737 of which R1 933 713 was provided for in the prior year (2010:R3 420 045) were impaired and written-off.

The amount of the provision was R301 325 as at 31 March 2011 (2010:R2 335 888). The ageing of these trade receivables is as follows:

More than 120 days 301,325 2,335,888 301,325 2,335,888


0


GROUP COMPANY

Figures in Rand(s) 2011 2010 2011 2010

8. Trade and other receivables (continued)

Reconciliation of provision for impairment of trade receivables

Opening balance 2,335,888 1,052,910 2,335,888 1,052,910

Provision for impairment 301,325 1,282,978 301,325 1,282,978

Amounts written off as uncollectable (1,933,713) - (1,933,713) -

Amounts settled (402,175) - (402,175) -

301,325 2,335,888 301,325 2,335,888

In determining the recoverability of a trade receivable, the company considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. Accordingly, the directors believe that there is no further credit provision required in excess of the provision for doubtful debts.The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable. The group does not hold any collateral as security.

Currencies

The carrying amount of trade receivables are denominated in the following

currencies

Rand 27,134,267 43,778,099 27,134,267 43,778,099

USD 551,429 1,111,838 551,429 1,111,838

GBP 6,597 - 6,597 -

EUR 225,696 92,284 225,696 92,284

AUD 1,610,098 445,196 1,610,098 445,196

29,528,087 45,427,417 29,528,087 45,427,417

9. Short term investments

Short term investments - Current Portion 246,809,439 222,888,020 246,809,439 222,888,020

Investments in short-term fixed deposits are held with various reputable financial institutions at market value and interest has been earned at prime overdraft rates less a varied percentage over the year.Fixed investments held with various public financial institutions are partly earmarked for the financing for the post-retirement medical aid liability.A cession of R 2,154,481 is held over these investments. Refer to note 25.

10. Finance lease obligation

Amount due for financial lease obligation - 650,461 - 650,461

Less: current portion of financial lease obligation - (227,929) - (227,929)

Net lease liability - 422,532 - 422,532

Capitalised leased assets

- payable within one year - 227,929 - 227,929

- payable within 2-5 years - 422,532 - 422,532

- 650,461 - 650,461

All finance leases expired in the current financial year. The corresponding assets have been removed from the asset register. Refer to note 2.


1


GROUP COMPANY

Figures in Rand(s) 2011 2010 2011 2010

11. Retirement benefits

Carrying value

Post-retirement medical aid 26,933,679 29,300,000 26,933,679 29,300,000

Pension benefit liability 1,353,426 1,245,000 1,353,426 1,245,000

28,287,105 30,545,000 28,287,105 30,545,000

Number of employees 135 150 135 150

Post-retirement medical benefits

Medical cover is provided through a number of different schemes. Post-retirement medical cover in respect of qualifying employees is recognised as an expense over the expected remaining service lives of the relevant employees. Mintek has an obligation to provide medical benefits to certain pensioners and dependents. These liabilities have been provided for in full, calculated on an actuarial basis. These liabilities are unfunded. Periodic valuation of this obligation is carried out by an independent actuaries every year, the latest one being 31 March 2011.

The amounts included in the balance sheet arising from Mintek's obligation in respect of post-retirement medical benefits are as follows:

Present value of obligations as at 31 March, 2011 26,933,679 29,300,000 26,933,679 29,300,000

Post-retirement benefit obligation

Fixed investment held with various public financial institutions is partly earmarked as financ-ing for post-retirement medical aid liability. Mintek has not assigned a specific fund to hedge the post-retirement medical aid liability.

Movement in the net liability recognised in the balance sheet

Net-past service benefit liability: Beginning of the year 29,300,000 31,400,000 29,300,000 31,400,000

Interest costs 2,700,000 2,600,000 2,700,000 2,600,000

Contributions paid to service providers (112,782) (72,503) (112,782) (72,503)

Net actuarial gain (3,419,413) (556,520) (3,419,413) (556,520)

Settlements (1,534,126) (4,070,977) (1,534,126) (4,070,977)

Net-past services benefit liability: End of the year 26,933,679 29,300,000 26,933,679 29,300,000


2


GROUP COMPANY

Figures in Rand(s) 2011 2010 2011 2010

11. Retirement benefits (continued)

Key assumptions

Expected rate of return on assets 9.20 % 9.30 % 9.20 % 9.30 %

Expected increase in salaries health care costs 7.30 % 7.00 % 7.30 % 7.00 %

Amounts recognised in the statement of comprehensive income are as follows:

Current costs 2,700,000 2,600,000 2,700,000 2,600,000

Benefits paid

Contributions paid 112,782 72,503 112,782 72,503

Expected average remaining life of employees (years) 25 25 25 25

Sensitivity analysis on past service cost

Discount rate increased by 1% p.a. 22,300,000 25,390,000 22,300,000 25,390,000

Discount rate decreased by 1% p.a. 30,200,000 34,180,000 30,200,000 34,180,000

Subsidy inflation increased by 1% p.a. 30,300,000 34,320,000 30,300,000 34,320,000

Subsidy inflation decreased by 1% p.a. 22,200,000 25,220,000 22,200,000 25,220,000

Retirement age 58 28,600,000 32,470,000 28,600,000 32,470,000

Pension benefit liability

Pension benefits are provided to members of the Mintek Retirement Fund (MRF).

Movement in the net-liability recognised in the balance sheet

Employer liability at beginning of year 1,245,000 1,185,000 1,245,000 1,185,000

Actuarial loss 108,426 60,000 108,426 60,000

Net employee liability at end of year 1,353,426 1,245,000 1,353,426 1,245,000

Current cost 108,426 60,000 108,426 60,000

At inception of the Fund a Retirement Reserve was allocated to certain members which will become payable at the time of the member's death or withdrawal. The employer also funds a minimum guaranteed pension for a member who entered the fund as at 1 January 1995. For purpose of calculating the valuation, investment returns are expected to exceed salaryincreases by 3%.

These payments are made from within the MRF and Mintek has no direct control over it.



GROUP COMPANY

Figures in Rand(s) 2011 2010 2011 2010

12. Trade and other payables

Trade payables 16,933,039 15,717,455 16,933,039 15,717,455

SA Revenue Services - Other 891,888 3,335,608 891,888 3,335,608

Other payables 4,793,468 3,661,940 4,793,468 3,661,940

Accrued leave pay 8,977,123 10,380,283 8,977,123 10,380,283

Accruals 3,437,805 5,545,459 3,437,805 5,545,459

Current portion of lease creditor - 227,929 - 227,929

Unpaid interest - creditors (25,805) (48,143) (25,805) (48,143)

35,007,518 38,820,531 35,007,518 38,820,531

Fair value of trade and other payables

Trade payables 35,007,518 38,820,531 35,007,518 38,820,531

13. Deferred income

Deferred income 85,951,848 59,666,422 85,951,848 59,666,422

Advance client billing (Unearned income) 14,918,411 16,707,172 14,918,411 16,707,172

100,870,259 76,373,594 100,870,259 76,373,594

Deferred income arises as a result of contracts undertaken for several government departments and institutions in respect of amounts received in cash not yet accounted for as revenue.

Advance client billing income arises as a result of contracts undertaken in terms of commercial work where invoices are raised based on work that has not been done. The quantum of costs incurred provides the basis for the level of revenue recognised in the period.

14. Provisions

Reconciliation of provisions - Group and Company - 2011

Opening balance

Additions Reversed during

the year

Total

Product warranties 364,538 1,257,123 (1,053,229) 568,432

Reconciliation of provisions - Group and Company- 2010

Opening balance

Additions Reversed during

the year

Total

Product warranties 847,840 1,156,816 (1,640,118) 364,538

The provision for product warranties arises from Mintek recognising its probable liability for meeting its obligation in terms of products and services as stipulated in its contracts with its customers.



GROUP COMPANY

Figures in Rand(s) 2011 2010 2011 2010

15. Revenue

Rendering of services 337,160,039 346,795,197 337,160,039 346,795,197

Components of revenue

Government grants 128,702,236 123,561,047 128,702,236 123,561,047

State Grant 145,473,684 136,637,372 145,473,684 136,637,372

Less:

Portion of grant utilised to acquire fixed assets (10,795,866) (10,244,537) (10,795,866) (10,244,537)

Portion of grant carried over for committed fixed asset purchases (5,975,582) (2,831,788) (5,975,582) (2,831,788)

Other revenue streams 208,457,803 223,234,150 208,457,803 223,234,150

Products and services 116,319,477 169,718,635 116,319,477 169,718,635

Contract research 92,138,326 53,515,515 92,138,326 53,515,515

337,160,039 346,795,197 337,160,039 346,795,197

16. Other operating income

Other income 6,342,094 6,049,878 6,342,094 6,049,878

Components of operating income

Library services 42,670 36,578 42,670 36,578

Breach of contract (employees) 367,114 3,000 367,114 3,000

Breach of contract (bursary/learnerships) 12,332 1,357,361 12,332 1,357,361

Bad debts recovered - 64,935 - 64,935

Sundry income 3,304,635 2,852,464 3,304,635 2,852,464

Rental income - properties 2,615,343 1,735,540 2,615,343 1,735,540

6,342,094 6,049,878 6,342,094 6,049,878

17. Investment income

Short term deposits 14,519,715 18,772,285 14,519,715 18,772,285

Loans to associates - 362,583 - -

Bank balances 2,345 84,590 2,345 84,590

Interest charged on trade and other receivables 14,370 11,092 14,370 11,092

Fair value interest on debtors 1,767,959 2,611,898 1,767,959 2,611,898

Loans to employees 19,995 53,086 19,995 53,086

16,324,384 21,895,534 16,324,384 21,532,951

Total interest income, calculated using the effective interest rate, on financial instruments not at fair value through the Statement of Comprehensive Income amounted to R14,519,715 (2010: R18,772,285).Interest income on impaired financial assets amounted to R14,370 (2010: R11,092) .

18. Finance costs

Finance leases 36,673 93,668 36,673 93,668

Trade creditors 7,921 - 7,921 -

Fair value interest on creditors 790,399 635,254 790,399 635,254

Retirement benefits 2,700,000 2,600,000 2,700,000 2,600,000

3,534,993 3,328,922 3,534,993 3,328,922



GROUP COMPANY

Figures in Rand(s) 2011 2010 2011 2010

19. Auditors' remuneration

External audit fees 1,571,370 2,208,601 1,571,370 2,208,601

Other audits 79,994 347,978 79,994 347,978

1,651,364 2,556,579 1,651,364 2,556,579

20. Fees for services

Outsourced services 39,300,384 37,910,666 39,300,384 37,909,466

Components of fees for services

Outsourced services 37,187,897 36,206,007 37,187,897 36,204,807

Legal fees 2,112,487 1,704,659 2,112,487 1,704,659

39,300,384 37,910,666 39,300,384 37,909,466

21. Depreciation, amortization and impairments

Depreciation, amortisation and impairments 12,424,447 14,163,772 12,424,447 14,163,772

Components of depreciation, amortization and impairments

Buildings 1,464,965 1,462,983 1,464,965 1,462,983

Plant 2,325,259 2,558,744 2,325,259 2,558,744

Equipment 6,526,788 8,047,635 6,526,788 8,047,635

Vehicles 77,361 107,643 77,361 107,643

Finance lease assets 206,390 488,481 206,390 488,481

Furniture and fittings 513,083 333,622 513,083 333,622

Computer software (intangible assets) 1,310,601 1,164,664 1,310,601 1,164,664

12,424,447 14,163,772 12,424,447 14,163,772

22. Cash generated from operations

(Loss)/profit for the year (2,722,136) 1,693,108 (2,722,136) 1,432,912

Adjustments for: Depreciation and amortisation 12,424,447 14,163,772 12,424,447 14,163,772

Loss on sale of assets 138,665 69,467 138,665 69,467

Actuarial gains (3,423,769) (496,520) (3,423,769) (496,520)

Taxation - 101,187 - -

Interest received (16,324,384) (21,895,534) (16,324,384) (21,532,952)

Finance costs 3,534,993 3,328,922 3,534,993 3,328,922

Provision for impairment (2,034,563) 1,282,978 (2,034,563) 1,282,978

Provisions raised 1,257,123 1,133,267 1,257,123 1,133,267

Fair value adjustment - debtors 1,767,959 2,611,898 1,767,959 2,611,898

Fair value adjustment - creditors (790,399) (635,253) (790,399) (635,253)

Assets adjustment (372,730) - (372,730) -

Changes in working capital: Decrease/(increase) in inventories 816,525 (1,450,297) 816,525 (1,450,295)

Decrease in trade and other receivables 18,362,448 20,835,399 18,362,448 17,312,674

Decrease in trade and other payables (3,813,013) (15,894,223) (3,813,013) (15,894,223)

Increase/(decrease) in deferred income 24,496,665 (2,136,699) 24,496,665 (2,136,699)

Decrease in staff loans 4,636 81,054 4,636 81,054

33,322,467 2,792,526 33,322,467 (728,998)



GROUP COMPANY

Figures in Rand(s) 2011 2010 2011 2010

23. Insurance and Risk Management

The insurance and risk management policies adopted by Mintek are aimed at obtaining sufficient cover at the minimum cost to protect its asset base, earning capacity and legal obligations against acceptable losses.

All property, plant and equipment are insured at current replacement value. Risks of a possible catastrophic nature are identified and insured at acceptable risks.

24. Commitments

Authorised capital expenditure

Authorised and contracted for

� Property, plant and equipment 8,340,058 14,000,058 8,340,058 14,000,058

This committed expenditure relates to property, plant and equipment and will be financed by existing cash resources, and funds internally generated.

Operational expenditure

Contracted for 2,224,493 7,788,092 2,224,493 7,788,092

Operating leases for vehicles – as lessee (expense)

Minimum lease payments due

� within one year 72,938 293,094 72,938 293,094

Operating leases for office equipment

Minimum lease payment due

� within one year 414,262 120,224 414,262 120,224

� in second to fifth year inclusive 839,621 30,258 839,621 30,258

1,253,883 150,482 1,253,883 150,482

25. Contingencies

Mintek has disputed employment termination contracts with former employees, the aggregate of which is not expected to exceed R 3,793,970. None of these cases are considered probable.

Cessions in favour of Absa Bank for R2,154,481 to meet requirements for credit card and other banking facilities has been registered.



GROUP COMPANY

Figures in Rand(s) 2011 2010 2011 2010

26. Related parties

Controlling entity

The Group comprises of Mintek and its wholly owned subsidiary Mindev (Proprietary) Limited. Mindev is engaged in the commercialisation of Mintek patents and technology through the identification of suitable partners. The Group, in the ordinary course of business, enters into various sale and purchase transactions with related parties.

None of the directors, officers or major shareholders of the Mintek Group or, to the knowledge of Mintek, their families, had any interest , direct or indirect, in any transactions which has affected or will materially affect Mintek or its investment or subsidiary.

Related party transactions

Related party transactions exist within the Group. During the year all sales transactions were concluded at arm's length.

Details of material transactions with related parties not disclosed elsewhere in the financial statements are as follows:

Relationships

Subsidiary Mindev (Pty) Limited

National Department Department of Mineral Resources

Other Government Departments Other Government Departments

National Public Entity National Research Foundation

National Public Entity CSIR

Related party balances

Loan accounts - Owing to related parties

Mindev (Pty) Ltd - - 39,472,296 39,472,296

Amounts included in Deferred Income regarding related parties

Department of Mineral Resources 22,108,121 8,362,453 22,108,121 8,362,453

Other Government Departments 4,110,865 7,774,161 4,110,865 7,774,161

Department of Science and Technology 53,114,027 37,397,632 53,114,027 37,397,632

National Research Foundation 6,618,834 6,132,176 6,618,834 6,132,176

Amounts included in Trade receivables regarding related parties

Other Government Departments - 511,564 - 511,564

CSIR - 3,986,095 - 3,986,095

Department of Science and Technology 329,538 - 329,538 -

Related party transactions

Sales to related parties

Department of Mineral Resources 9,326,367 11,430,292 9,326,367 11,430,292

Department of Science and Technology 32,942,428 24,969,689 32,942,428 24,969,689

Other Government Departments 9,740,560 8,598,375 9,740,560 8,598,375

National Research Foundation 664,380 2,067,024 664,380 2,067,024

CSIR 1,218,143 5,450,135 1,218,143 5,450,135




Figures in Rand(s) Entity Basic salary Performance bonus and other expenses

Total

27. Board members and executive management remuneration

2011 Executive Management

Mr MA Mngomezulu Mintek 1,690,673 5,372 1,696,045

Dr RL Paul Mintek 1,501,568 6,858 1,508,426

Dr M Motuku (Resigned 31/10/2010) Mintek 890,864 12,477 903,341

Mr P Craven Mintek 1,091,079 2,202 1,093,281

Mr SA Simelane Mintek 1,127,115 - 1,127,115

Ms S Bopape (Terminated 13/12/2010) Mintek 831,938 218 832,156

7,133,237 27,127 7,160,364

2010 Executive Management

Mr MA Mngomezulu Mintek 1,559,250 54,404 1,613,654

Dr RL Paul Mintek 1,390,895 54,406 1,445,301

Dr M Motuku Mintek 1,135,591 44,350 1,179,941

Mr P Craven (Appointed 01/10/2009) Mintek 529,650 - 529,650

Mr SA Simelane Mintek 1,039,500 22,894 1,062,394

Ms S Bopape Mintek 1,034,550 25,960 1,060,510

6,689,436 202,014 6,891,450

2011 Non-Executive Board members

Fees for services as directors Other expenses Total

Mr M Mphomela (Chairperson) Rand Merchant Bank 65,188 1,305 66,493

Ms N Qunta ZBQ Consulting 42,072 7,503 49,575

Mr P Streng Independent Management Consultant 64,668 5,506 70,174

Adv D Block Masana Technologies (Pty) Ltd 63,056 1,745 64,801

Mr P White Venmyn Techno Consulting Firm 85,756 4,166 89,922

Ms S Sekgobela Mugamusi Consulting 62,251 1,942 64,193

Ms S Maja Jacques vd Merwe Maja Inc 72,470 3,264 75,734

455,461 25,431 480,892

2010 Non-Executive Board members

Mr H Motaung (Chairperson) Anooraq Resources Corporation 33,718 - 33,718

Ms L Mhlabeni Bali Engineering Consultants 24,640 - 24,640

Mr MA Ntilane Kwane Mineral Processing 40,320 - 40,320

Dr J Bredell Minerals Development Consultants 45,571 - 45,571

Mr R Havenstein Norilsk Nickel International 68,888 - 68,888

Ms G Mthethwa Standard Bank 26,880 - 26,880

Mr B Mbewu Self Employed 8,960 - 8,960

Ms N Lila Astute Intellect 17,920 - 17,920

Mr B Sehlapelo Rand Water Services (Pty) Ltd 40,466 - 40,466

Mr M Mphomela Rand Merchant Bank 57,688 - 57,688

365,051 - 365,051

All non-executive board members were appointed to the Mintek Board on 1 March 2010

Messrs. M Mabuza, T Nell, J Ndlovu and GL Rapoo were not paid any directors' emoluments during the year under review.


GROUP COMPANY

Figures in Rand(s) 2011 2010 2011 2010

28. Financial Instruments

Foreign currency risk

The Group undertakes certain transactions in foreign currencies, hence exposures to exchange rate fluctuations arise. The Group does not enter into forward foreign exchange contracts to buy and sell amounts of various currencies at predetermined exchange rates, as foreign currency amounts are not significant in relation to Mintek's income. As a matterof principle, the Group does not enter into currency exchange contracts for speculative reasons.

Credit risk management

Financial assets that could subject the group to credit risk consist principally of bank balances and cash, deposits, trade and other receivables, and short-term investments. The Group bank balances and short-term investments are placed with several financial institutions with at least BBB credit ratings as rated in terms of the Fitch Global Rating system. The Group reviews its trade and other receivables at each balance sheet date to ensure adequate allowances for doubtful receivables or loan write-offs are made, the level of this provision is disclosed in note 8 Credit risk with respect to trade receivables is limited to the large number of customers comprising the Group's customer base and their dispersion across different industries and geographical areas. Accordingly the Group does not have significant concentration of credit risk.

The Group considers its short-term investments to be secured and readily available as cash should the need arise for the conversion of the investments.

The carrying amounts of financial assets included in the balance sheet represent the Group's exposure to credit risk in relation to these assets. The Group does not have any significant exposure to any customer or counter party.

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash resources to meet cash flow requirements.

Management monitors forecasts of liquidity reserve on the basis of expected cash flow. Analysis of the various requirements is disclosed in note 9 of the financial statements.

Fair values

As at 31 March 2011 the carrying amount of bank balances and cash, deposits, trade and other receivables, trade and other payables, contracts in progress, advances received and short-term borrowings approximated their fair values due to the short-term nature of these assets and liabilities.

The group does not hedge foreign exchange fluctuations.

Interest risk

The valuation of interest rate exposure and investment strategies is done by management on a regular basis. The risk arises from substantial interest-bearing assets at variable interest rates. To minimise exposure to this risk, the Group uses a mixture of variable and fixed interest rates.

29. Fruitless, wasteful and irregular expenditure

Fraud and theft expenses - 4,494 - 4,494

No fruitless, wasteful and irregular expenditure was identified during the current financial year.


0



1

GROUP COMPANY

Figures in Rand(s) 2011 2010 2011 2010

30. Fifa World Cup expenditure

Mintek did not incur any expenditure in relation to the Fifa World Cup.

31. Taxation

Major components of the tax (income)/expense

Current

Local income tax - recognised in current tax for prior periods (662,775) 101,187 - -

Reconciliation of the tax expense

Reconciliation between applicable tax rate and average effective tax rate.

Applicable tax rate 28.00 % 28.00 % 28.00 % 28.00 %

No provision for income tax was made for the company during the current financial year as Mintek is exempt in terms of section 10(1)(CA)(i) of the Income Tax Act,No. 58 of 1962; and Mindev is a dormant company. Tax provisions and liabilities are with respect to Mindev and are payable through those entities.


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2

inside back cover (ibc) ContactsOffice Contact Person Tel. No.

CEO’s Office Ms Lentheng Letsholo 011-709 4900

Internal Auditor Mr Mpho Mathose 011-709 4796

External Auditors Auditor General (AG) 012-426 8000

GM’s Secretary Ms Christa Scheepers 011-709 4908

GM’s Secretary Ms Bongi Nthini 011-709 4906

Switchboard 011-709 4111

General Managers Contact Person Tel. No.

Business Development Dr Roger Paul 011-709 4934

Research and Development Dr Makhapa Makhafola 011-709 4485

Corporate Services Adv Mamokete Ramoshaba 011-709 4680

Technology Mr Peter Craven 011-709 4165

Finance Mr Sakhi Simelane 011-709 4328

Divisions Contact Person Tel. No.

Advanced Materials Dr Elma van der Lingen 011-709 4471

Analytical Services Mr Monde Mtakati 011-709 4053

Biotechnology Mr Petrus van Staden 011-709 4205

Business Development VACANT -

Engineering Support Mr Khulekani Ngcobo 011-709 4094

Estate Management Services Mr Muzi Ntombela 011-709 4140

Finance Ms Hester Pretorius 011-709 4698

Human Resources and Training Ms Makgomo Umlaw 011-709 4373

– Bursars and SET promotions Dr Judy Coates 011-709 4490

Hydrometallurgy Dr Leon Kruger 011-709 4656

Information and Communications Mr Haveline Michau 011-709 4256

– Communications Mr Lesego Mashigo 011-709 4251

– Conferences and Events Ms Zinhle Dennison 011-709 4321

– Library Ms Manil Moodley 011 709 4277

Information Technology Mr Hennie Venter 011-709 4103

Measurement and Control Mr Paul Brereton-Stiles 011-709 4355

Minerals Economics and Strategy Unit Dr Marian Lydall 011-709 4195

Minerals Processing Mr Alan McKenzie 011-709 4736

Mineralogy Ms Nosiphiwo Mzamo 011-709 4163

Pyrometallurgy Mr Tom Curr 011-709 4642

Quality Mr Hennie Venter 011-709 4103

Safety, Health and Environment Mr Leon Swanepoel 011-709 4747

Small-Scale Mining and Beneficiation Mr Nirdesh Singh 011-709 4335

RP16/2011ISBN: 978-0-621-39888-5

Compiled by the Information and Communications Division, Mintek.Printed by Ultra Litho (Pty) Ltd.

Acronyms and Abbreviations AMD Advanced Materials Division AMI Advanced Metals Initiative ASSM Artisanal and Small-Scale Miners/Mining ASD Analytical Services Division BDD Business Development Division CCMA Council for Conciliation, Mediation and Arbitration CDFR Client Dissatisfaction Rate DG Designated Group DMR Department of Mineral Resources DoL Department of Labour DoE Department of Energy DRC Democratic Republic of Congo DST Department of Science and Technology DTI Department of Trade and Industry ECSA Engineering Council of South Africa EIFR Environmental incident frequency rate ESD Engineering Support Division FET Further Education and Training FMC Full Mill Charge FMDN Ferrous and Base Metals Development Network GAAP Generally Accepted Accounting Practices GDP Graduate Development Programme GM General Manager HEI higher Education Institute HIC Hydrogen-induced cracking HIV Human Immunodeficiency Virus HMD Hydrometallurgy Division HR Human Resources HRTEM High-Resolution Transmission Electron Microscope HSE Health, Safety and Environment HySA Hydrogen South Africa IA Internal Audit IFRS International Financial Reporting Standards IKS Indigenous Knowledge Systems KPI Key Performance Indicator LED Local Economic Development LTIFR Lost-Time Injury Frequency Rate MBT Marked Ball Test MESU Mintek’s Mineral Economics and Strategy Unit MgO Magnesium oxide MOU Memorandum of understanding MQA Mining Qualifications Authority MPD Minerals Processing Division MRC Medical Research Council MTC Metals Technology Centre MTEF Medium Term Expenditure Framework MW Megawatts NEF National Empowerment Fund NCI National Cancer Institute NDA National Development Agency Necsa South African Nuclear Energy Corporation NFTN National Foundry Technology Network NGP New Growth Path NIC Nanotechnology Innovation Centre NIOH National Institute of Health NNR National Nuclear Regulator NRF National Research Foundation NSTF National Science and technology Forum NUM National Union of Mineworkers OECD Organisation for Economic Co-operation and Development OHSAS Organisation for Health & Safety PFMA Public Finance Management Act PGMs The Platinum Group Metals (platinum, palladium ruthenium rhodium, iridium and osmium) PMDN Precious Metals Development Network POC Point Of Care PPD Pyrometallurgy Division QESH Quality, Environment, Safety and Health R&D Research and Development RIP Resin-In-Pulp RPP Radiation Protection Programme RPDP Research Professional Development Programme SACNASP South African Council for Natural Scientific Professions SADPMR SA Diamond And Precious Metals Regulator SE Secondary Electron (image) SEDA Small Enterprise Development Agency SSMB Mintek’s Small-Scale Mining and Beneficiation division TIA Technology Innovation Agency TiCl Titanium Tetrachloride WIL Work Integrated Learning

200 Malibongwe Drive, Randburg, South Africa.Private Bag X3015, Randburg 2125, South Africa.

Tel: +27 (0)11 709 4111 Fax: +27 (0)11 793 2413 www.mintek.co.za

A global leader in mineral and metallurgical innovation

mintek ar 2011

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