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FINANCIAL STATEMENTS AND NOTES 2007NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007such assets so as to bring them to the location and condition necessary for it to be capable of operating in the manner intended by management.Interest costs are not capitalised.Depreciation is calculated so as to write off the cost of property, plant and equipment on a straight-line basis, over the estimated useful lives to theestimated residual value. Useful lives and residual values are reviewed on an annual basis. Residual values are measured as the estimated amountcurrently receivable for an asset if the asset were already of the age and condition expected at the end of its useful life.expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease. All assets under construction are carriedat cost and depreciation only commences once the asset is commissioned and ready for its intended use.The gains and losses arising on the disposal or retirement of an item of property, plant, equipment and vehicles is determined as the difference1.11 Investment propertyprofessional valuer based on market evidence of the most recent prices achieved in arms length transactions of similar properties in the samearea.1.13 Post-retirement health care costsThe Group uses the project unit credit actuarial method to determine the present value of its past service cost.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 thepast service obligation at the end of the reporting period before deducting the present value of assumed assets at the same date. Valuations of theseobligations are carried out annually by independent actuaries using appropriate mortality tables, long-term estimates of increases in medical costsand appropriate discount rates. General increases to medical aid contributions were estimated taking into account the projected future changes inan increased estimated liability.1.14 InventoriesInventories are valued stated at the lower of cost or net realisable value. Costs comprise direct materials and, where applicable, direct labour costsand those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the weightedaverage method. Net realisable value represents the estimated selling price in the ordinary course of business less any costs of completion and coststo be incurred in marketing, selling and distribution.1.15 ProvisionsThe Group recognises its obligation for guaranteeing its product and services for periods as stipulated in its contracts with the Group’s customers.The Group is exposed to certain environmental liabilities relating to its operations. Provision for the cost of environmental and other remedial worksuch as reclamation costs, close down and restoration costs and pollution control is made when such expenditure is probable and the cost can bereasonably estimated.1.16 Financial instrumentsFinancial instruments recognised on the balance sheet include derivative instruments, investments, investments in debt securities, accountsreceivable, cash and cash equivalents, accounts payable and interest bearing debt. Financial instruments are initially measured at cost includingwith in the subsequent notes. When the Group can legally do so and the Group intends to settle on a net basis, or simultaneously, related positiveannual report 200768
FINANCIAL STATEMENTS AND NOTES 2007NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 20071.16.1 Derivative instruments1.16.2 InvestmentsInvestments consist of long-term money market instruments initially recorded at cost, which is the fair value of the cash placed with the institution.Interest is accrued using the effective interest rate method and included in the income statement on an accrual basis.1.16.3 Trade and other receivablesTrade and other receivables are stated at cost less an allowance for doubtful debts. The allowance raised is the amount needed to reduce the1.16.4 Cash and cash equivalentsCash and cash equivalents comprise cash on hand, demand deposits and investment in short-term money market instruments. The carrying amountof cash is measured at its fair value.1.16.5 Financial liabilitiesFinancial liabilities other than derivative instruments are amortised at their original debt value less principal payments and amortisation. Derivativesare subsequently measured at fair value and gains and losses are included in the income statement for the period.then the recoverable amount is estimated and an impairment loss is recognised in accordance with AC133. Financial Instruments and Recognition.1.17 Government grantsrecognised as income in the period in which it is received. These funds are utilised in accordance with a shareholders’ compact that is entered into1.18 Revenue recognitionRevenue is recognised when the sale transactions giving rise to such revenue is concluded and risks and rewards of ownership and title passis recognised based on the percentage of completion determined by reference to the physical amount of work performed in relation to the totalproject.Advance income arising as result of contracts undertaken in terms of commercial work in respect of invoices raised and paid for in advance but forwhich no substantial work has been made to justify the recognition of any revenue, is deferred until the income is earned based on the percentagework completed.Revenue arising from licence fees is recognised on an accrual basis in accordance with the terms of the applicable contracts. Revenue from royaltiesis accrued-based on the nature of the applicable contracts.Interest income is accrued on a time proportion basis recognisng the effective yield on the underlying assets.Dividend income from investments is recognised when the right to receive payment has been established.substance of the relevant agreements.1.19 Contracts in progressWhere the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contractactivity at the balance sheet date. The stage of completion is determined by the proportion of contract costs incurred in relation to the estimated totalcontract costs. Variations in contract work, claims and incentive payments are included to the extent that they have been agreed to the customer.69annual report 2007
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MINTEKANNUALREPORT2007
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MINTEKANNUAL REPORT2007CONTENTSMint
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THE MINING VALUE CHAINTechnologies
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CHAIRMAN’S REVIEWI am pleased to
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Mr Harold Motaung, and new members
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CEO’S REPORTAs a result of the ph
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income grew frommillion in 2006/07,
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of the Mineral Development Branch a
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Organisational perspective Measure
Page 19 and 20: TECHNICAL REVIEWGOLD INDUSTRYAuTEK
Page 21 and 22: expected to be complete by the four
Page 23 and 24: of ore types and concentrate compos
Page 25 and 26: vast resources of iron, vanadium, a
Page 27 and 28: partitioned into several operating
Page 29 and 30: The recent interest shown in this t
Page 31 and 32: oute to remove the quartz and hemat
Page 33 and 34: COMMERCIALACTIVITIESMintek’s comm
Page 35 and 36: Heap leaching of nickel lateritesHe
Page 37 and 38: CAPITAL EQUIPMENTA 125 kilogram per
Page 39 and 40: MINERAL POLICYAND SUSTAINABLEDEVELO
Page 41 and 42: REACHAt the beginning of 2006, MESU
Page 43 and 44: KGABANE JEWELLERY INITIATIVEThe Kga
Page 45 and 46: PEOPLEHUMAN CAPITAL MANAGEMENTMinte
Page 47 and 48: management, relationships, and lega
Page 49 and 50: Science, engineering and technology
Page 51 and 52: Jourdan PP. Links with Domestic Ind
Page 53 and 54: ANNUALFINANCIAL STATEMENTSFOR THE Y
Page 55 and 56: INTERNAL CONTROLMintek maintains in
Page 57 and 58: AUDIT COMMITTEE REPORTThe Audit Com
Page 59 and 60: DIRECTORS’ REPORTThe directors ta
Page 61 and 62: REPORT OF THE AUDITOR-GENERALREPORT
Page 63 and 64: OTHER REPORTING RESPONSIBILITIESRep
Page 65 and 66: FINANCIAL STATEMENTS AND NOTES 2007
Page 69: FINANCIAL STATEMENTS AND NOTES 2007
Page 87 and 88: AfDB - African Development BankAMI
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