1. DEPARTMENT OF MINERAL RESOURCES DISCUSSION ON THE MINERAL RESOURCES 2012 / 13 ANNUAL PERFORMANCE PLAN DATE 25 APRIL 2012 Programme 1Administration - CFO Doc Id: 421511

2. Presentation Outline 1. Budget & spending outlook • Resource plan per programme • Expenditure estimate analysis • Resource plan per economic classification • Branch strategic objectives 6. Conclusion PLEASE READ IN CONJUNCTION WITH PGS 3 – 4 and 23 – 28 OF TABLED ANNUAL PERFORMANCE PLAN Doc Id: 421511

3. DMR 2012/13 BUDGET & 2011/12 SPENDING OUTLOOK • The total budget for DMR is R1,169 billion for 2012/13 financial year. • This represents an average growth of 8.8% from 2008/9 and is projected to grow by 5.2 % on average over medium term. • The funding is shared between the departmental programmes and entities under the control of DMR ministry accounting at 55.8 % and 44.2 % respectively. • Level of under spending maintained far below 5% - 2011/12 financial year registered 0.92* % (R9,5 million) under spending. • The remaining funds have already been committed and roll over application will be made to National Treasury * unaudited Doc Id: 421511

4. DMR RESOURCE PLAN : PER PROGRAMME Doc Id: 421511

5. The overall expenditure is expected to increase in real terms from R1.169 billion in 2012/13 to R1.361 billion in 2014/15 at an average rate of 5.2% per annum. • The increase is attributable to additional funding received over the MTEF in respect of the following: • Improved conditions of service for the Department and Public Entities – R2.974 million and R11.7 million respectively • Economic support and competitiveness packages for the Council for Geoscience and Council for Mineral Technology – R350 million Expenditure estimates analysis Doc Id: 421511

6. Administration Expenditure is expected to increase from R263.579 million in 2011/12 to R270.744 million in 2014/15 at an average rate of 0.7% over the MTEF period. The budget decreased in 2012/13 due to the decentralisation of administrative budgets to the various branches. The increase in the outer years is attributable to the inflationary adjustments. Expenditure estimates analysis per programme Doc Id: 421511

7. Mine Health and Safety Inspectorate Expenditure is expected to increase from R135.289 million in 2011/12 to R175.867 million in 2014/15 at an average rate of 6.8% per annum. The increase relates to the additional allocation for inflation related adjustments. Expenditure estimates analysis per programme • Mineral Regulation • Over the MTEF expenditure is expected to increase from R184.395 million in 2011/12 to R194.813 million in 2014/15 at an average rate of 1.4%. Doc Id: 421511

8. Mineral Policy and Promotion • Expenditure is expected to increase from R446.183 million in 2011/12 to R719.744 million in 2014/15 at an average rate of 12.7% per annum. • The increase is attributable to the new allocation for economic support and competitiveness package for the Council for Geoscience and Council for Mineral Technology – R350 million. Expenditure estimates analysis per programme Doc Id: 421511

9. DMR RESOURCE PLAN: PER ECONOMIC CLASSIFICATION Doc Id: 421511

10. DMR RESOURCE PLAN: PER ECONOMIC CLASSIFICATION • Due to the under spending on Compensation of Employees in 2011/12, the budget for outer years seem to be more than the inflationary adjustment. • The decline in Goods and services budget for 2012/13 is attributable to the R15m cut and the reclassification of budget for Rehabilitation of Ownerless and Derelict Mines to subsidies and transfers. Doc Id: 421511

11. DMR RESOURCE PLAN: PER ECONOMIC CLASSIFICATION • The transfers and subsidies budget increased by 33% owing to new funding obtained for Economic support and competitiveness package. Doc Id: 421511

12. 1. Stakeholder perspective Provide reliable and timely information • Number of reports submitted within prescribed timeframes Improve service delivery • Number of defined turnaround times adhered to • Customer satisfaction index (1-5 index) on OLA Educate and empower stakeholders • % reduction in number of complaints • % reduction in non compliance with internal processes Doc Id: 421511

13. Stakeholder perspective cont’d Provide ICT Systems • % reduction in the number of calls logged due to system response time Promote transformation policies • % of suppliers’ invoice paid in 30 days Doc Id: 421511

14. 2. Internal Processes Implement Policies, processes and procedures Number of approved policies implemented Number of approved processes and procedures implemented Improve Turnaround times Number of processes with improved turnaround times % improvement in turn around times Align ICT to business objectives % implementation of MSP (Master System Plan) % reduction in licensing costs Doc Id: 421511

15. 3. Learning and growth Facilitate management and leadership development - number of managers completed management courses Fill funded vacancies % reduction in vacancies Attract, develop and retain skills - Improved numbers in terms of identified EE categories - % reduction in staff turn over rate - Number of Human Resource Development initiatives implemented Doc Id: 421511

16. 4. Financial Maximise utilisation of resources % reduction in the number of branch assets disposed prior to the end of life span Align budget to strategy % changes made to the original allocated budget Manage costs effectively % variance on allocated budget - % reduction in irregular expenditure cases Promote Corporate Governance % of fully implemented agreed upon management action plans (Internal Audit) % of fully implemented agreed upon management action plans (External Audit) % adherence to compliance framework % implementation of risk management plans Doc Id: 421511

17. THANK YOU QUESTIONS Doc Id: 421511