1

PRESENTATION OF THE2008/9 MTEF STRATEGIC

PLAN

2

DME TEAM

DIRECTOR-GENERAL Adv S Nogxina

DDG:MINE HEALTH AND SAFETY Mr T Gazi

DDG: MINERAL REGULATION Mr J Rocha

DDG: MINERAL POLICY & PROM Ms F Zikalala

DDG: ELECTRICITY & NUCLEAR Ms N Magubane

DDG: HYDROCARBONS & E. PLANNING Mr N Gumede

DDG: CORPORATE SERVICES Ms T Zungu

CHIEF FINANCIAL OFFICER Mr S Simelane

CD: MANAGEMENT SERVICES Mr G Mnguni

CHIEF DIRECTOR: ELECTRICITY Mr O Aphane

CHIEF DIRECTOR: NUCLEAR Mr T Maqubela

ACTING CHIEF DIRECTOR: COMMUNICATION Mr B Khumalo

3

PRESENTATION OUTLINE

1. INTRODUCTION

2. THE DEPARTMENT’S 2008/09 POLICY / LEGISLATIVE PROGRAMME

3. ENERGY ( Electricity, Nuclear, Hydrocarbons and Renewable Energy)

4. MINING (Mine Health and Safety, the MPRDA, Rehabilitation and Beneficiation)

5. INTERNAL ENVIRONMENT

6. YOUTH AND WOMEN EMPOWERMENT

7. FINANCIAL PLANNING

4

POLICY/LEGISLATIVE FRAMEWORK

1. The Electricity Industry Restructuring Bill

- Focuses on the establishment, ownership and governance of the RED’s.

2. The National Energy Bill

- provides for the creation of a law to regulate energy security and sustainable development of the country’s energy sector

5

POLICY/LEGISLATIVE FRAMEWORK cont…

3. The Radioactive Waste Management Agency Bill

- Sets a framework for the establishment of an agency that will be responsible for the disposal of radioactive waste, and also be responsible for all research and development work relating to radioactive waste management.

4. The Mine Health and Safety Amendment Bill

- Review and strengthen enforcement provisions of the MHS Act and removes ambiguities in certain definitions and expressions; effects certain amendments necessary to ensure consistency with the MPRDA

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ENERGY

1. ELECTRICITY CHALLENGES

- Energy saving

- Energy Summit

- Electricity price increase

- Pricing policy

7

2. INTEGRATED NATIONAL ELECTRIFICATION PLAN (INEP) cont..

ENERGY Cont…

2007/8 Planned

Planned Actual 2008/9 Planned

Schools 700 876 2500

Houses 150 000 149 212 150 000

Clinics All (187) Completed 0

Bulk Infrastructure

10 9 10

8

ENERGY cont…

3. HYDROCARBONS

- Petroleum licensing

- Liquid Fuels Masterplan

4. CLEAN ENERGY

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ENERGY cont…..

5. SECURITY OF ENERGY SUPPLY- Liquid fuels

- Diversification of energy resources

- Nuclear

- 2010 World Cup

6. ENERGY EFFICIENCY

- Efficiency campaign

- NEEA

10

MINING

MHS Compliance Audits (Presidential Audits)

MHS and Capacity Challenges

The MPRDA

- Licensing process

- Strategic minerals Rehabilitation

Beneficiation

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INTERNAL ENVIRONMENTINTEGRATED HR PLAN

Programme Number of posts

Number of posts filled

Vacancy rate

Number of posts filled additional to the establishment

Administration, permanent 397 342 13.9 22Hydrocarbons and Energy, permanent

131 94 28.2 0

Electricity and Nuclear 88 77 12.5 2Mine Health and Safety 327 242 26 11Mineral Policy and Promotion 97 83 14.4 1Mineral Regulation 365 300 17.8 9

TOTAL 1405 1138 19 45

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INTERNAL ENVIRONMENTINTEGRATED HR PLAN cont…

Salary Band Number of posts

Number of posts filled

Vacancy rate

Number of posts filled additional to the establishment

Skilled (levels 3-5), permanent 332 292 12 4Highly skilled production (levels 6-8), permanent

310 250 19.4 15

Highly skilled supervision (levels 9-12), permanent

602 459 23.8 7

Senior management (levels 13-16), permanent

117 93 20.5 1

Contract (levels 3-16) 44 44 0 18

TOTAL 1405 1138 19 45

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YOUTH AND WOMEN EMPOWERMENT

• Youth Empowerment Programmes

- Youth in Energy and Mining

- Career guidance programmes

• Women Empowerment Programmes- SAWIMA

- WOESA

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FINANCIAL PLANNING

15

THANK YOU

SUMMARY OF EXPENDITURE ESTIMATES BY PROGRAMME

2007/08ActualR'000

Medium-term estimates

2008/09BudgetR'000

2009/10BudgetR'000

2010/11BudgetR'000

1. Administration 185,794 209,498 231,602 253,292

2. Promotion of Mine Safety and Health 104,283 129,753 135,407 146,254

3. Mineral Regulation 143,402 167,161 172,658 190,675

4. Mineral Policy and Promotion 73,554 57,535 60,193 64,735

5. Hydrocarbons and Energy Planning 52,453 65,097 72,915 79,057

6. Electricity and Nuclear 69841 61 991 64 040 83 474

7. Associated Services 2318043 2 904 388 3 581 410 3 771 701

Departmental Total 2,947,370 3,595,423 4,318,225 4,589,188

OVERALL BUDGET PER PROGRAMME

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** Not audited* Average number of employees for 2007/8 is 1124

OVERALL BUDGET PER ECONOMIC CLASS

SUMMARY OF ECONOMIC CLASSIFICATION OF

PAYMENTS 2007/08ActualR'000

Medium-term estimates

2008/09BudgetR'000

2009/10BudgetR'000

2010/11BudgetR'000

CURRENT PAYMENTS 566,987 645,584 688,706 766,935

Compensation of employees 290,561 360,221 388,946 414,788

Goods and services 276,426 285,363 299,760 352,147

TRANSFERS AND SUBSIDIES 2,366,513 2,939,959 3,618,761 3,810,956

TOTAL PAYMENTS 2,947,370 3,595,423 4,318,225 4,589,188

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TREND ON UTILISATION OF FUNDS

UTILISATION OF VOTED FUNDS  2007/08 2006/07 2005/06 2004/05COMPENSATION OF EMPLOYEES

290,561 246,154 217,070 190,783

NUMBER OF EMPLOYEES

1124 1053 968 919

GOODS AND SERVICES

276,426 254,665 181,577 134,878

PAYMENT FOR CAPITAL ASSETS

8,268 6,804 5,342 5,084

TRANSFER AND SUBSIDIES

2,366,513 2,099,917 1,768,372 1,527,719

THEFT AND LOSSES

5,602 135 44 204

UNSPENT 27,567 27,425 79,966 86,475

TOTALS (BUDGET)

2,974,937 2,635,100 2,252,371 1,945,143

% UNDER SPENDING OF VOTE

0.93% 1.04% 3.55% 4.45%

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MTEF ALLOCATION PER PROGRAMMEPROGRAMME 1: ADMINISTRATION

SUMMARY OF ECONOMIC CLASSIFICATION OFPAYMENTS 2007/08 2008/09 2009/10 2010/11

COMPENSATION OF EMPLOYEES 68,868 82,024 92,213 102,592

GOODS AND SERVICES 107,785 116,805 127,803 138,498

TRANSFERS AND SUBSIDIES 982 1,223 1,284 1,384

PAYMENTS FOR CAPITAL ASSETS 8,159 9,446 10,302 10,818

TOTAL PAYMENTS 185,794 209,498 231,602 253,292

ANALYSIS PER PROGRAMMEPROGRAMME 1: ADMINISTRATION

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2007/08 2008/09 2009/10 2010/11

MTEF PERIOD

R'0

00

COMPENSATION OF EMPLOYEES GOODS AND SERVICES

TRANSFERS AND SUBSIDIES PAYMENTS FOR CAPITAL ASSETS

19

MTEF ALLOCATION PER PROGRAMMEPROGRAMME 2: MINE HEALTH AND SAFETY

SUMMARY OF ECONOMIC CLASSIFICATION OFPAYMENTS 2007/08 2008/09 2009/10 2010/11

COMPENSATION OF EMPLOYEES 79,604 100,054 104,783 109,681

GOODS AND SERVICES 19,848 24,356 25,014 30,682

TRANSFERS AND SUBSIDIES 4,788 4,909 5,154 5,412

PAYMENTS FOR CAPITAL ASSETS 43 434 456 479

TOTAL PAYMENTS 104,283 129,753 135,407 146,254

ANALYSIS PER PROGRAMMEPROGRAMME 2: PROMOTION OF MINE HEALTH AND SAFETY

-

20,000

40,000

60,000

80,000

100,000

120,000

2007/08 2008/09 2009/10 2010/11

MTEF PERIOD

R'0

00

COMPENSATION OF EMPLOYEES GOODS AND SERVICES

TRANSFERS AND SUBSIDIES PAYMENTS FOR CAPITAL ASSETS

20

MTEF ALLOCATION PER PROGRAMMEPROGRAMME 3: MINEREAL REGULATION

SUMMARY OF ECONOMIC CLASSIFICATION OF PAYMENTS

2007/08 2008/09 2009/10 2010/11

COMPENSATION OF EMPLOYEES 66,512 81,045 84,854 88,853

GOODS AND SERVICES 70,355 86,116 87,804 101,822

TOTAL PAYMENTS 136,867 167,161 172,658 190,675

ANALYSIS PER PROGRAMMEPROGRAMME 3: MINERAL REGULATION

-

20,000

40,000

60,000

80,000

100,000

120,000

2007/08 2008/09 2009/10 2010/11

MTEF PERIOD

R'0

00

COMPENSATION OF EMPLOYEES GOODS AND SERVICES

21

MTEF ALLOCATION PER PROGRAMMEPROGRAMME 4: MINEREAL POLICY AND PROMOTION

SUMMARY OF ECONOMIC CLASSIFICATION OF PAYMENTS 2007/08 2008/09 2009/10 2010/11

COMPENSATION OF EMPLOYEES 22,084 25,211 26,396 27,640

GOODS AND SERVICES 12,996 8,291 8,562 10,598

TRANSFERS AND SUBSIDIES 38,462 24,033 25,235 26,497

TOTAL PAYMENTS 73,542 57,535 60,193 64,735

ANALYSIS PER PROGRAMMEPROGRAMME 4: MINERAL POLICY AND PROMOTION

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2007/08 2008/09 2009/10 2010/11

MTEF PERIOD

R'0

00

COMPENSATION OF EMPLOYEES GOODS AND SERVICES TRANSFERS AND SUBSIDIES

22

MTEF ALLOCATION PER PROGRAMMEPROGRAMME 5: HYDROCARBONS AND ENERGY PLANNING

SUMMARY OF ECONOMIC CLASSIFICATION OF PAYMENTS 2007/08 2008/09 2009/10 2010/11

COMPENSATION OF EMPLOYEES 26,357 45,510 53,083 57,103

GOODS AND SERVICES 22,760 14,181 14,154 15,992

TRANSFERS AND SUBSIDIES 3,313 5,406 5,678 5,962

TOTAL PAYMENTS 52,430 65,097 72,915 79,057

ANALYSIS PER PROGRAMMEPROGRAMME 5: HYDROCARBONS AND ENERGY PLANNING

-

10,000

20,000

30,000

40,000

50,000

60,000

2007/08 2008/09 2009/10 2010/11

MTEF PERIOD

R'0

00

COMPENSATION OF EMPLOYEES GOODS AND SERVICES TRANSFERS AND SUBSIDIES

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MTEF ALLOCATION PER PROGRAMMEPROGRAMME 6: ELECTRICITY AND NUCLEAR

SUMMARY OF ECONOMIC CLASSIFICATION OF PAYMENTS 2007/08 2008/09 2009/10 2010/11

COMPENSATION OF EMPLOYEES 27,136 26,377 27,617 28,919

GOODS AND SERVICES 42,682 35,614 36,423 54,555

TOTAL PAYMENTS 69,818 61,991 64,040 83,474

ANALYSIS PER PROGRAMMEPROGRAMME 6: ELECTRICITY AND NUCLEAR

-

10,000

20,000

30,000

40,000

50,000

60,000

2007/08 2008/09 2009/10 2010/11

MTEF PERIOD

R'0

00

COMPENSATION OF EMPLOYEES GOODS AND SERVICES

24

MTEF ALLOCATION PER PROGRAMME PROGRAMME 7: ASSOCIATED SERVICES

SUMMARY OF ECONOMICCLASSIFICATION OF PAYMENTS 2007/08 2008/09 2009/10 2010/11

Council for Mineral Technology Research 124,569 135,834 152,379

159,2

48

National Nuclear Regulator 18,029 20,333 23,915

25,11

1

Council for Geoscience 107,755 122,672 127,821

134,2

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Electricity Distribution Industry HoldingsCompany 65,934 69,250 72,723

76,35

9

Assistance to Mines 39,006 41,178 43,438

45,61

0

South African Diamond and PreciousMetals Regulator 20,000 40,000 40,000

42,00

0

TOTAL PAYMENTS 375,293 429,267 460,276

482,5

40

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MTEF ALLOCATION PER PROGRAMMEPROGRAMME 7: ASSOCIATED SERVICES

ANALYSIS PER PROGRAMMEPROGRAMME 7: ASSOCIATED SERVICES

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2007/08 2008/09 2009/10 2010/11

MTEF PERIOD

R'0

00Council for Mineral Technology Research National Nuclear Regulator

Council for Geoscience Electricity Distribution Industry Holdings Company

Assistance to Mines South African Diamond and Precious Metals Regulator

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MTEF ALLOCATION PER PROGRAMMEPROGRAMME 7: ASSOCIATED SERVICES (NECSA)

SUMMARY OF ECONOMIC CLASSIFICATION OF PAYMENTS 2007/08 2008/09 2009/10 2010/11

NECSA Activities 284,383 445,797 461,584 487,663

NECSA Decommissioning Projects 80,033 84,053 82,212 86,323

NECSA Security 10,217 10,659 10,951 11,499

NECSA SAFARI Reactor Conversion 13,623 14,217 14,609 15,339

TOTAL PAYMENTS 388,256 554,726 569,356 600,824

ANALYSIS PER PROGRAMMEPROGRAMME 7: ASSOCIATED SERVICES

-

100,000

200,000

300,000

400,000

500,000

600,000

2007/08 2008/09 2009/10 2010/11

MTEF PERIOD

R'0

00

NECSA Activities NECSA Decommissioning Projects NECSA Security NECSA SAFARI Reactor Conversion

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MTEF ALLOCATION PER PROGRAMMEPROGRAMME 7: ASSOCIATED SERVICES (INEP)

SUMMARY OF ECONOMIC CLASSIFICATION OF PAYMENTS 2007/08 2008/09 2009/10 2010/11

ESKOM (NATIONAL PORTION) 1,018,083 1,240,758 1,570,770 1,649,309

CONDITIONAL GRANTS (DORA) 462,492 595,637 897,008 950,828

NON-GRID SERVICE PROVIDERS 73,919 84,000 84,000 88,200

TOTAL PAYMENTS 1,554,494 1,920,395 2,551,778 2,688,337

ANALYSIS PER PROGRAMMEPROGRAMME 7: ASSOCIATED SERVICES (INTEGRATED NATIONAL

ELECTRIFICATION PROGRAMME

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2007/08 2008/09 2009/10 2010/11

MTEF PERIOD

R'0

00

ESKOM (NATIONAL PORTION) CONDITIONAL GRANTS (DORA) NON-GRID SERVICE PROVIDERS

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MTEF ALLOCATION PER PROGRAMMEPROGRAMME 7: ASSOCIATED SERVICES (INEP)

SUMMARY OF ECONOMIC CLASSIFICATION OF PAYMENTS 2007/08 2008/09 2009/10 2010/11

ESKOM (NATIONAL PORTION) 1,018,083 1,240,758 1,570,770 1,649,309

CONDITIONAL GRANTS (DORA) 462,492 595,637 897,008 950,828

NON-GRID SERVICE PROVIDERS 73,919 84,000 84,000 88,200

TOTAL PAYMENTS 1,554,494 1,920,395 2,551,778 2,688,337

ANALYSIS PER PROGRAMMEPROGRAMME 7: ASSOCIATED SERVICES (INTEGRATED NATIONAL

ELECTRIFICATION PROGRAMME

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2007/08 2008/09 2009/10 2010/11

MTEF PERIOD

R'0

00

ESKOM (NATIONAL PORTION) CONDITIONAL GRANTS (DORA) NON-GRID SERVICE PROVIDERS

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THANK YOU