DEPARTMENT OF MINERAL AND ENERGY

DEPARTMENT OF MINERAL AND ENERGY

PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE PROGRAMME 1(on 12 April 2005

MTEF ALLOCATIONS - ECONDMIC CLASSIFICATION

	2003/04- Actual	2004-05	2005-06	%	2006-07	2007-08
Compensation of employees	176 751	205 702	241 131	11.4%	262 603	277 445
Goods & Services	128 156	199 956	221 569	10.5%	239 551	252 272
Transfers& Subsidies	1 469 498	1 421350	1 647942	77.8%	556 829	583 589
Capital Assets	22 114	5 897	6 943	0.3%	6 216	6 375
TOTAL	1 796 893	1 832 905	2117 585	100%	1 061199	1 119 681
Increase/ Decrease)		36 012	284 680	(1 056 386)	58 482

MTEF ALLOCATIONS PER PROGRAMME

	2003/04-Actual-	2004-05	2005-06	% of total budget	2006-07
ADMIN	102 006	100 337	111 364	23%	119642
MHSI	87 244	100 533	108 536	22%	117162
MINDEV	117 510	161 253	185 156	37%	206115
H&EP	16 291	25 871	34 340	7%	36577
E&N	40 595	44 980	56 784	11%	57010
Total excl transfers	363 646	432 974	496180	100%

PRGRAMME 1: ADMINISTRATION 2004/05

EXPENDITURE ITEM	BUDGET 04/05	% of programme	BUDGET 05/06	%of programme
Compensation of employees	40 933	39.58%	53 416	47.9%
Goods and services	53 485	51.72%	50 064	44.9%
Transfers and subsidies	2 245	2.17%	1 313	1.1%
Capital assets	6 754	6.53%	6 571	5.9%
Total	103 417	100%	111 364	100%

PROGRAMME 2: PROMOTION OF MINE HEALTH AND SAFETY

EXPENDITURE ITEM	BUDGET 04/05	% of programme	BUDGET05/06	%
Compensation of employees	67 749	69.38%	81 553	75%
Goods and services	25 247	25.96%	22 215	20%
Transfers and subsidies	3 992	4.09%	4 396	4%
Capital assets	655	0.67%	372	0.3%
Total	97 643	100%	108 536	100%

PROGRAMME 3: MINERAL DEVELOPMENT 2004/05

EXPENDITURE ITEM	BUDGET R’000	% of programme	BUDGET R ‘000	%
Compensation of employees	63 993	39.71%	72 814	39%
Goods and services	29 891	18.55%	91 596	49%
Transfers and subsidies	66 661	41.37%	20 746	11.2%
Capital assets	608	0.38%	0	0
Total	161153	100%	185 156	100%

PROGRAMME 4: ENERGY MANAGEMENT

EXPENDITURE ITEM	BUDGET R’000	% of programme	BUDGET	%
Compensation of employees	22 272	31.48%	33 348	36.6%
Goods and services	48 031	67.88%	57 694	63.3%
Transfers and subsidies	153	0.22%	82	0.08%
Capital assets	305	0.43%	0	0
Total	70 761	100%	91 124	100%

PROGRAMME 5: ASSOCIATED SERVICES

EXPENDITURE ITEM	BUDGET R’000	% of programme	BUDGET 05/06	% of programme
Mintek	88 632	5.86%	108 880	6.71%
NECSA	179 901	11.90%	200 296	12.35%
NNR	8 067	0.53%	5 417	0.33%
Geoscience	77 606	5.13%	86 078	5.3%
EDI Holdings	54 000	3.57%	59 240	3.65%
Electrification	1 070 562	70.79%	1 126 269	69.4%
Assistance to mines	33 401	2.21%	35 225	2.17%
TOTAL	1 512 169	100%	1 621 405	100%

DEPARTMENTAL REVENUE

	2003/04 -Actual	2004-05 -Actual	2005-06	2006-07	2007-08
TOTAL	297452	109 610(budget) 139 856 Actual)	115 085	120 832	126 873
Increase/Decrease		(187 842)	5 475	5 747	6 041

AREAS FOR IMPROVEMENT

ALIGNMENTOFBUDGET TO WORKPLANS TO BE IMPROVED
INPUTS RECEIVED TO BE STANDARDISED

ITEMISED BUDGET

ANALYSIS OF THE DME BUDGET DONOR FUNDING

DONOR	2002/03 R,’000	2003/04 R,000	2004/05 R,000
European Union	678	0	438
Norway	14 390	2 731	2 672
Germany	0	1 257	0
The Netherlands	675	0	10 867
TOTAL	15 743	3 988	13 977

OVERVIEW OF THE PRESENTATION

AIM AND FUNCTIONS OF DME
ORGANISATION AND ESTABLISHMENT STRUCTURE
EMPLOYMENT EQUITY WITHIN DME
HUMAN RESOURCE DEVELOPMENT:INTERNALLY &EXTERNALLY
GOVERNANCE OF PUBLIC ENTITIES

Aims and functions

Aim: To formulate and implement an overall minerals and energy policy in order to ensure the optimum utilisation of minerals and energy resources.

Functions;

Conduct Internal and external investigations to promote control over Departmental assets and objectives.
Render a communication and and international co-ordinating service;

Render a management support service;
Ensure the provisioning of a financial, Supply chain and Information management support service;

Promote the orderly continuous mining and utilisation of mineral resources;
Regulate hydrocarbon energy carriers and ensure energy planning;
Manage the electricity sector and the nuclear industry;

Ensure the co-ordination of the national rural development strategy;
Ensure the overall co-ordination of the HIV/Aids and other programs/projects in the Department as well as in the Mining and Energy industries; and

Ensure alignment of departmental policies/programs with the National Economic and Development Strategy

[DEPARTMENT OF MINERALS AND ENERGY: 2004/2005-

PROGRAMMES

CORPORATE SERVICES BRANCH
MINERAL REGULATION BRANCH
MINERAL POLICY & INVESTMENT PROMOTION BRANCH
HYDROCARBONS & ENERGY PLANNING BRANCH
ELECTRICITY &NUCLEAR BRANCH
MINE HEALTH AND SAFETY INSPECTORATE
FINANCIAL, INFORMATION AND SUPPLY CHAIN MANAGEMENT & AUXILIARY SERVICES CHIEF DIRECTORATE

ASSOCIATED INSTITUTIONS

SOUTH AFRICAN NUCLEAR ENERGY CORPORATION (NECSA)
NATIONAL NUCLEAR REGULATOR
CENTRAL ENERGY FUND(CEF)
(PTY) LTD
ELECTRICITY DISTRIBUTION INDUSTRY HOLDINGS
S.A DIAMOND BOARD
COUNCIL FOR GEOSCIENCE
NATIONAL ELECTRICITY REGULATOR
THE MINE HEALTH &SAFETY COUNCIL
COUNCIL FOR MINERAL TECHNOLOGY (MINTEK)

VACANCIES IN THE DEPARTMENT AS AT 12 APRIL 2005

Status and Component	Number of vacancies	Number in progress	Still to be processed
Mineral Development	60	53	7
Mine Health and Safety	42	30	12
Hydrocarbons & Energy Planning	12	10	2
Electricity and Nuclear	10	10	0
Corporate Services	39	26	13
Total	163	1`29	34

EMPLOYMENT EQUITY IN DME

As at 31 March 2005,employment equity in terms of race stood at 72% black and 28% White
In total males represent 53% against 47% females.
At both Senior and Middle Management Levels, female representation is at 22%.
Employment Equity cont..
Disabled persons represent only 1% against the National target of 2%.
Departmental policy and strategy has been finalised and implementation is ongoing.
DME is unable to retain and recruit employees with scarce skills ( staff turn-over=9%)
We developing a Departmental Scarce Skills Retention strategy in line with the National Framework.
A submission in this regard will be submitted to the DPSA and National Treasury for endorsement and funding respectively.

HUMAN RESORCE DEVELOPMENT

Annually a skills audit and a training needs analysis is conducted to ensure that whatever training takes place is in line with DME's vision and Priorities-
Training interventions are informed by individual development plans as agreed to between employees and supervisors.
Individual development plans are inter-linked with employees' Performance Agreements/ Workplans.
This process enables DME to develop a comprehensive and aligned Workplace Skills Plan.

Partnerships with International organizations are also established for the provision of relevant HRD and training programmes.
The department also coordinates management development programmes, that are offered by SAMDL

DME also participates in the PSLDP that aims at providing senior management with both management and leadership skills.
Two employees have graduated from the programme in February 2005 and more will be graduating in October 2005.
The training budget as allocated by National Treasury is solely intended for serving employees, so as to better equip them to deliver services as expected.
Other interventions/initiatives that are embarked upon are funded mainly from other sources other than the budget as allocated by National Treasury

THE INTERNSHIP PROGRAMME

The aim of the programme is to equip students and graduates with experience and on the job training so as to enable them to participate fully in the South African labour market.
The programme was commenced in 1997 with the so-called first Generation of Interns.
DME's policy provides that each Directorate should at least have two interns for a period of 18 months.

STATUS	NUMBER
Total interns enrolled	230 (since inception of programme
Interns absorbed permanently by DME	58
Interns currently contracted at DME as employees	23
Interns offered employment elsewhere(i.e other government departments or private sector)	41
Interns currently in the system	108

BURSARIES (PSBS)

Employees are offered bursaries to study for careers that are in line with the core functions of the department in any institution of choice that is accredited.
Below is a reflection of the status as at 12 April 2005:

Status	Number
Bursary contract cancellations	23
Study obligations transferred	13
Completion of studies in 2004	21
Current bursary holders	258

HRD : lnternally & Externally

Malaysian Scholarship Programme (UTP)
To bridge the gap on scarce skills in IT and Engineering
29- Engineering,?- Information Technology and 6 - Information Systems
This programme commenced in 1999 as a joint venture between S.A (DME) and Malaysian Government PETRONAS annually offers ten scholarships to matriculants who intent to study Engineering and IT/IS.

10 graduated in August 2004 and are all employed.
Additional 4 completed their studies in December 2004 and are due to graduate in August 2005. Two of these have been placed at PetroSA, one is employed in the private sector and one is at the University for a supplementary exam.
PetroSA currently employs majority of these students. However, negotiations are underway with other institutions for placement opportunities.

Electricity Regulatory Initiative.

Electricity Regulatory Initiative [NEV(OSLO)].
The initiative is aimed at providing capacity for DME employees within the Electricity Sector and is funded through the Norwegian assistance to DME.
There is an intake of 3 employees/participants p/a
Three employees from the Electricity component participated in the programme from June 2004.

Masters in International Technology and Innovation (DaVinci with UTP)

The aim of the programme is to bridge the gap in IT and Project Management and to build capacity within DME.
This is a Ministerial project.
2 female employees commenced with the programme in September 2004.

Petrad (Norway)

Programme aims at developing employees in the management and administration of petroleum-
In total 37persons across the globe have participated and 1 was from the DME
Application forms are currently being processed for the next intake.

Women in Nuclear Training (France)

Aim is to expose South African candidates to nuclear courses to uplift their knowledge base.
The focus of the is mainly on Reactor theory, accident analysis, simulation codes and insight into European radiation protection.
Negotiations are currently underway with the provider to have the programme presented in S.A and the likelihood is that it will be provided at NECSA.
So far, 4 DME employees have been trained on Nuclear through this programme.

Summary of HRD and Budget 2004/2005

Occupational Category	Male	Female	Total	Budget
Senior Officials and Managers	62	30	92	872592.77
Professionals	133	48	181	1028334
Clerks	21	66	87	321219.36
Elementary Occupations	1	2	3	8610

Governance of public entities

Establishment of the Compliance office
Funding provided for 2005/06 onwards
Main functions

Alignment of the P/Es to government policy
Monitor entities performance and compliance
Provide governance and oversight support and advise the Minister as the Accounting Authority

Other Government structures

Ministerial level: meetings
Accounting officers forum(FOMEH)
Sub committees of FOMEH
MECOF linked to the compliance office