Mine Health and Safety Council Presentation of the 2006/ 2007 Annual Report Date:15/10/2007 Version 2 Mine Health and Safety Council Your partner in mine health and safety

Vision A regulatory framework and climate conducive to safe and healthy working conditions for mineworkers and communities affected by mining. Mission Facilitate sustained improvement of occupational health and safety at mines through focused research, development of policy advice and effective legislation, and the provision of guidance to achieve best practice and a pervasive culture of health and safety. Mine Health and Safety Council Your partner in mine health and safety

CONTENTS OVERVIEW STRATEGIC OBJECTIVES: Key Issues PROFILE STRUCTURE HEALTH AND SAFETY RESEARCH STRATEGIC OBJECTIVES: Key Issues FINANCIAL STATEMENTS GOVERNANCE FINANCE COUNCIL REPORT Mine Health and Safety Council Your partner in mine health and safety

MINE HEALTH & SAFETY COUNCIL STRATEGIC OVERVIEW PROFILE COMPOSITION Tripartite Council 5 government, 5 labour and 5 employer representatives MANDATE OF THE MHSC Advise Minister on occupational health and safety; Review, develop and recommend legislation to the Minister; Promote health and safety in the mining sector; Advise on health and safety research; Liaise with other bodies concerned with health and safety issues. Mine Health and Safety Council Your partner in mine health and safety

Minister of Minerals and Energy Stakeholder participation Mine Health and Safety Council SIMRAC MOHAC MRAC Input from consultants and advisers Audit/Risk Committee HR/Remuneration Legislation Regulations Standards Guidelines Research programme Communication Research needs Levy criteria Health policy Research input Health information Health regulations Financial, administration, communication and secretarial support Mine Health and Safety Council Your partner in mine health and safety

HEALTH AND SAFETY RESEARCH PROGRAMME Needs: Accident bends : Occupational exposures and disease Accident clarifications (fatalities) Falls of ground } (28%) Rockburst and Seismicity } (28%) Transportation systems and machinery – (28%) General – (44%) Mine Health and Safety Council Your partner in mine health and safety

HS RESEARCH PROGRAMME (CONTINUED) OCCUPATIONAL DISEASES Silicosis Noise Induced Hearing Loss Tuberculosis HIV and AIDS Mine Health and Safety Council Your partner in mine health and safety

Strategic Objectives: Key Issues Objective 1:Achievement of the Industry Milestones as set at the 2003 Summit The Issue: Industry target – Zero fatalities and injuries Industry target – Elimination of Silicosis Industry target – Elimination of Noise Induced Hearing Loss (NIHL) MHSC Interventions: Programmes on rockburst management : R5.8m Elimination of rockfalls : R1.5m Transportation and Machinery R8.7m Programme on Silicosis elimination: R8.7m Noise and dust baseline: R3.4m Programme for the elimination of Noise Induced Hearing Loss (NIHL): R3.0m It is expected that the research outcome will provide detail and guidance on accurate and timeous information and data for the evaluation of OHS performance, to the MHSC and Committees, data and information centres, OHS information centers, the DME, OHS practitioners and representatives, mine management and industry users. Results on this project are expected as from September 2005 until September 2006. The MHSC has concluded project SIM 03 09 02 entitled ‘Web-based mining industry data base for audiograms’ (Rand Mutual Association), which is available to the mining industry and which was promoted through national and regional workshops to the industry. ( Not complete we are awaiting the final report since Dec 2004) Screening audiograms performed by the mining industry (including baseline audiograms) will be electronically stored in the Noise Induced Hearing Loss (NIHL) Repository at Rand Mutual Association through the electronic download of a flat file from the audiometry testing booths at the mines or through their occupational medical surveillance systems. Mines without the ability to download baseline audiograms can submit hard copies to the RMA to be electronically captured on the database. Mine Health and Safety Council Your partner in mine health and safety

Strategic Objectives: Key Issues Objective 2:Promote and drive legislative review The Issue: Developing a strategic legislative agenda Completing the current legislative programmes MHSC Interventions 5 regulations and amendments to MHSA were promulgated 9 regulations relating to various mining activities were completed 5 Guidelines for mandatory code of practice for different operations were completed 4 genetic topic outstanding It is expected that the research outcome will provide detail and guidance on accurate and timeous information and data for the evaluation of OHS performance, to the MHSC and Committees, data and information centres, OHS information centers, the DME, OHS practitioners and representatives, mine management and industry users. Results on this project are expected as from September 2005 until September 2006. The MHSC has concluded project SIM 03 09 02 entitled ‘Web-based mining industry data base for audiograms’ (Rand Mutual Association), which is available to the mining industry and which was promoted through national and regional workshops to the industry. ( Not complete we are awaiting the final report since Dec 2004) Screening audiograms performed by the mining industry (including baseline audiograms) will be electronically stored in the Noise Induced Hearing Loss (NIHL) Repository at Rand Mutual Association through the electronic download of a flat file from the audiometry testing booths at the mines or through their occupational medical surveillance systems. Mines without the ability to download baseline audiograms can submit hard copies to the RMA to be electronically captured on the database. Mine Health and Safety Council Your partner in mine health and safety

Strategic Objectives: Key Issues Objective 3:Advice the Minister on mining health and safety issues: The Issue: Identify priority issues: Rockburst and Seisimicity To review the state of health and safety MHSC Interventions Rockburst and Seismicity Mini-Indaba held on September 7, 2007 Mini- Indaba report to be submitted to the Minister 5th Biennial Summit for 2007 Theme: Working Together Towards Zero Harm Summit Report It is expected that the research outcome will provide detail and guidance on accurate and timeous information and data for the evaluation of OHS performance, to the MHSC and Committees, data and information centres, OHS information centers, the DME, OHS practitioners and representatives, mine management and industry users. Results on this project are expected as from September 2005 until September 2006. The MHSC has concluded project SIM 03 09 02 entitled ‘Web-based mining industry data base for audiograms’ (Rand Mutual Association), which is available to the mining industry and which was promoted through national and regional workshops to the industry. ( Not complete we are awaiting the final report since Dec 2004) Screening audiograms performed by the mining industry (including baseline audiograms) will be electronically stored in the Noise Induced Hearing Loss (NIHL) Repository at Rand Mutual Association through the electronic download of a flat file from the audiometry testing booths at the mines or through their occupational medical surveillance systems. Mines without the ability to download baseline audiograms can submit hard copies to the RMA to be electronically captured on the database. Mine Health and Safety Council Your partner in mine health and safety

Strategic Objectives: Key Issues Objective 4: Advice to the Minister on mining health and safety issues: TB, HIV and AIDS The Issue: TB continue to be a major challenge and is increasing HIV prevalence is high in the industry MHSC Interventions The HIV and Aids research A development of performance tool for active case finding for tuberculosis commenced Thibela TB project Prevention The MHSC has been adopting policies that include effective management of OHS risks, pro-active enforcement policies that empower all stakeholders equally, and monitoring and intervention programmes. Outcomes are accomplished by research needs analyses, and legislation and promotion of strategies that are aimed at the prevention of occupational accidents and diseases, for implementation by all stakeholders in the mining industry. OHS Culture During the period of review, the MHSC has researched and promoted occupational health and safety strategies focused on behavioural interventions in the South African mining industry, and have approved project SIM 03 01 01, ‘Health and safety culture intervention programmes for SA mines’. It is planned to undertake a project on the ‘Promotion of a OHS culture in the SA mining industry’, based on outcomes of the preceding project. Capacity The Council considers within Strategic Goal F, the competency and capacity of resources to ensure the required levels of research capacity, competency training, monitoring of OHS management, development and enforcement of legislation, and governance and skills development. This includes efforts to increase and maintain the capacity and competency of the Mining Inspectorate, and advising on initiatives to increase the reach and capacity of the Inspectorate by 2006. To this end, the DME has established task teams to address organisational structures, employment recruitment and retention, and work practices. The work is planned for completion by July 2005 and results are to be implemented, after approval, by October 2006. During April 2004, the MHSC had advised the Minister on the effective use of administrative fines by the Inspectorate in order to promote occupational health and safety. MRAC has also reviewed legislatory guidelines to make enforcement effective. Governance During this review period, policy issues relating to transparency, accountability and sound management have been vigorously addressed by the MHSC. Governance policies are twofold: Within the Council, the achievement of efficient corporate management and functioning that includes conformance to statutory frameworks, such as the MHSA and the PFMA. Within the mining sector, efforts to promote effective governance of OHS within the South African mining industry have been accomplished through advice on appropriate policies and legislation. Compliance During January 2005, the Inspectorate has developed and published a booklet entitled ‘Guideline for the Enforcement of the Mine Health and Safety Act’ to promote and enforce legislation in terms of the MHSA, and as guidance document to its inspectors. Reports, guidelines on the regulatory framework and any relevant occupational health and safety compliance information are made available on the MHSC website www.simrac.co.za The DME websites www.dme.gov.za and Intranet include the following documentation: Mine Health and Safety Council Your partner in mine health and safety

Strategic Objectives: Key Issues Objective 5:Promote and Facilitate the Development of a Preventative Culture to Drive the Health and Safety Agenda The Issues: Develop and implement a promotional strategy for improved health and safety awareness MHSC Interventions Policies: Approval and implementation of a Communications Plan Written Communications: Distributions of books, booklets and information resource packages Distribution of MHSC Newsletters (4000 copies) Distribution of the Ten Tick Guide on Health and Safety Strategies It is expected that the research outcome will provide detail and guidance on accurate and timeous information and data for the evaluation of OHS performance, to the MHSC and Committees, data and information centres, OHS information centers, the DME, OHS practitioners and representatives, mine management and industry users. Results on this project are expected as from September 2005 until September 2006. The MHSC has concluded project SIM 03 09 02 entitled ‘Web-based mining industry data base for audiograms’ (Rand Mutual Association), which is available to the mining industry and which was promoted through national and regional workshops to the industry. ( Not complete we are awaiting the final report since Dec 2004) Screening audiograms performed by the mining industry (including baseline audiograms) will be electronically stored in the Noise Induced Hearing Loss (NIHL) Repository at Rand Mutual Association through the electronic download of a flat file from the audiometry testing booths at the mines or through their occupational medical surveillance systems. Mines without the ability to download baseline audiograms can submit hard copies to the RMA to be electronically captured on the database. Mine Health and Safety Council Your partner in mine health and safety

Strategic Objectives: Key Issues Objective 6:Promote and facilitate the development of a preventative culture to drive the health and safety agenda Electronic Communications Distristribution of more than 800 informative CDs and DVDs Events: The MHSC Promoted a culture of Occupation health and safety at the following events: Mines Safety EXPO, Orkney – 3 November 2006 Noshcon, Sun City – 15/17 November 2006 and Tripartite HIV and AIDS Summit, Randburg – 21 November 2006 Thibela TB Project Launched by Minister. It is expected that the research outcome will provide detail and guidance on accurate and timeous information and data for the evaluation of OHS performance, to the MHSC and Committees, data and information centres, OHS information centers, the DME, OHS practitioners and representatives, mine management and industry users. Results on this project are expected as from September 2005 until September 2006. The MHSC has concluded project SIM 03 09 02 entitled ‘Web-based mining industry data base for audiograms’ (Rand Mutual Association), which is available to the mining industry and which was promoted through national and regional workshops to the industry. ( Not complete we are awaiting the final report since Dec 2004) Screening audiograms performed by the mining industry (including baseline audiograms) will be electronically stored in the Noise Induced Hearing Loss (NIHL) Repository at Rand Mutual Association through the electronic download of a flat file from the audiometry testing booths at the mines or through their occupational medical surveillance systems. Mines without the ability to download baseline audiograms can submit hard copies to the RMA to be electronically captured on the database. Mine Health and Safety Council Your partner in mine health and safety

MHSC Safety Achievement Flag Ultra Deep Gold and Platinum Mines Blyvooruitzicht Gold Mines (DRD Gold Mines) Shallow to Deep Gold and Platinum Mines Fairview Gold Mine Coal Mines Greenside Colliery (Anglo Coal, Anglo American) Other Mines Assmang Manganese Mine Health and Safety Council Your partner in mine health and safety

MHSC Safety Awards Gold mine Coal Mines Other Mines 8 Mines: 1-9 Million Fatality Free Shifts Platinum Group Metals Mine 21 Mines: 1-5 Million Fatality Free Shifts Coal Mines 5 Mines: 1-5 Million Fatality Free Shifts Other Mines 3 Mines: 2-5 Million Fatality Free Shifts Mine Health and Safety Council Your partner in mine health and safety

Strategic Objectives: Key Issues Objective 7:Ensure effective and operation of the MHSC The Issue: MHSC to comply with MHSA and other relevant legislation, policies and national and international standards MHSC Interventions Consulting Company was appointed in September 2007 Objectives: To review the functioning of MHS To Propose functions, business process and structure It is expected that the research outcome will provide detail and guidance on accurate and timeous information and data for the evaluation of OHS performance, to the MHSC and Committees, data and information centres, OHS information centers, the DME, OHS practitioners and representatives, mine management and industry users. Results on this project are expected as from September 2005 until September 2006. The MHSC has concluded project SIM 03 09 02 entitled ‘Web-based mining industry data base for audiograms’ (Rand Mutual Association), which is available to the mining industry and which was promoted through national and regional workshops to the industry. ( Not complete we are awaiting the final report since Dec 2004) Screening audiograms performed by the mining industry (including baseline audiograms) will be electronically stored in the Noise Induced Hearing Loss (NIHL) Repository at Rand Mutual Association through the electronic download of a flat file from the audiometry testing booths at the mines or through their occupational medical surveillance systems. Mines without the ability to download baseline audiograms can submit hard copies to the RMA to be electronically captured on the database. Mine Health and Safety Council Your partner in mine health and safety

Governance Qualified Audit by Auditor General Basis for Qualified Opinion Accounting system Property, Plant and Equipment Useful lives and residual values of assets Research assets Fixed assets register Emphasis of Matters Fruitless and wasteful expenditure Governance Mine Health and Safety Council Your partner in mine health and safety

Council Financial Report OPERATING RESULTS 2007 (2006) Council posted a surplus of R4.4m in 2007(2006: R4.4m) 0%y/y REVIEW OF OPERATIONS Research Account Levies amounted to R43.1m in (R37.6m) 15% y/y Research Expenditure amounted to R34.6m in (R29.4m) 18%y/y Contribution to administration R5.7m in (R5.1m) 12% Administration Account State funding amount R4.4m (R4.2m) 5% y/y Levy funding amount to R5.7m (R5.1m) 12% y/y Expenditure amounted to R12.8m (R14.5m) – 12% y/y Administrative Fine Fund Fines received amounted to R0.6m (R0.6m) 0% y/y Expenditure amounted to R0.3m (R0.6m) -50%y/y Review of ops Levies increased by 10% in line with guidelines Research expenditure decreased by 23% due to contracts entered into not yet commenced. Mine Health and Safety Council Your partner in mine health and safety