MINE HEALTH AND SAFETY AMENDMENT BILL, 2008

MINERALS SECTOR PROFILE The “bed rock” of SA’s industrialisation Contribution to GDP Direct 7% Indirect 15% Significant contributor to employment: 460 000 employees JSE market capitalisation: 30% Major global producer of Gold, PGM, Manganese, Coal, Diamond, etc South Africa’s industrialisation commenced in the latter 1800 following the discovery of massive diamond bearing kimberlitic deposits in the Northern Cape and later the gold bearing deposits of the Witwatersrand. It is therefore fitting to refer the minerals and mining sector as the bed rock of South Africa’s industrialisation. Today, the sector’s contribution to the economy has diminished due to the development of other sectors, it however is still a significant contributor to the GDP at 7% direct contribution and 15% indirect contribution. The industry employes approximately half a million people.

MINERALS SECTOR PROFILE (CONT.) Operations: High Risk-Large, deep, labour intensive Au & Pt u/g mines Medium Risk-Mechanised Base Metal and Coal Mines Low Risk-Surface mines

INTRODUCTION Compensation Legal Sanctions Regulatory Capacity Bill

COMPENSATION ODMWA COIDA Administered by DoH Limited occupational lung diseases Free benefit medical examinations Lump Sum compensation MHSI involved in the Risk Committee that determines the levy payable by mines. Administered by DoL No fault compensation Trade-off of rights No civil claims Pension payments to workers with serious permanent disablement.

Occupational Diseases Interpretation of the graph: Silicosis: The results suggests that Silicosis is increasing in the Gold and Platinum mines, whereas it appears that it is constant in the Coal mines. Pulmonary TB: The results suggests that TB is decreasing in all commodities. Noise: The results suggest that Noise is decreasing in Gold, Platinum and Coal mines. DME Challenges and Solutions: The reliability and validity of the latter statistical report are not quantifiable. DME is currently developing a data base strategy to improve the reporting, recording and analysis of the Annual Medical Report. This systems will improve and increase the number of mines that report to DME.

ENFORCEMENT PROVISIONS Action DME Justice Minor Breach Improvement Notice Repeat Breaches Administrative Fine Serious Breaches Stoppage Order, Fine Serious Injury Stoppage order, Investigation & Fine Death Stoppage order, Investigation and Inquiry/Inquest

IMPROVEMENT NOTICES Region 2005/2006 2006/2007 2007/2008 Gauteng 289 272 208 Free State 247 489 303 North West 67 42 209 Eastern Cape 118 64 256 Western Cape 3 11 Northern Cape 43 57 Limpopo 437 8 Mpumalanga 131 229 210 KZN 2 6 72 Total 1 147 1 607 3 187

ADMINISTRATIVE FINES 2005/ 2006 Region Recommended Set Aside Value issued R ‘000 Value Paid Gauteng 8 Free State 5 1 25 North West Eastern Cape 3 Western Cape 50 40 Northern Cape 20 12 59,5 7.5 Limpopo Mpumalanga 7 540 35 KZN Total 56 34 674.50 107.50

ADMINISTRATIVE FINES 2006/ 2007 Region Recommended No Set Aside Value issued R ‘000 Value Paid Gauteng 2 1 10 Free State 6 3 53 83* North West Eastern Cape Western Cape 50*** Northern Cape 3** Limpopo Mpumalanga 8 820 420 KZN 23 Total 54 43 993 566 *R 50 000 for fine from 2005/ 2006 ** R 3000 from 2005/ 2006 *** R40 000 from 2005/ 2006

ADMINISTRATIVE FINES 2007/ 2008 Region Recommended No Set Aside Value issued R ‘000 Value Paid Gauteng 15 588 50 Free State 7 3 156 56 North West 4 1 200 Eastern Cape Western Cape 9 8 Northern Cape 19 295 120 Limpopo 30 Mpumalanga 10 2000 KZN 60 Total 68 17 3346 256

STOPPAGE ORDERS Region 2005/2006 2006/2007 2007/2008 Issues Gauteng 302 236 365 Poor thermal conditions; dangerous gasses; airborne pollutants in harmful quantities; poor ventilation; poor rigging; dangerous use of rolling stock; poor explosives control; Unguarded machinery; failure to use PPE; Support; poor mining practice Free State 403 661 589 North West 109 186 309

STOPPAGE ORDERS Region 2005/2006 2006/2007 2007/2008 Issues Eastern Cape 18 25 9 Unsafe TMM equipment; lack of guarding; Non compliance with instructions Western Cape 1 7 36 Lack of guarding; risk assessments; poor housekeeping; Non-submission of medical and hygiene reports and Excessive dust Northern Cape 90 102 Unguarded Pulleys No risk assessment No training No explosives control

STOPPAGE ORDERS Region 2005/2006 2006/2007 2007/2008 Issues Limpopo 54 107 92 Support; Poor Barring;Ventilation; Stonedust; Refuge bays; Dangerous Highwalls; Unlicenced TMM operators; Explosive control and declarng unsafe working places safe Mpumalanga 108 139 171 Same as KZN KZN 67 49 21 Conveyorbelts; Support; Change house and toilet facilities; statutory reports; risk assessments; brushing of travelling roads; legal appointments

STOPPAGE ORDERS & FINES Section 54 Instructions Region 2005/2006 2006/2007 2007/2008 Total 1 152 1 512 1 694 vs Administrative fines 2005/2006 2006/2007 2007/2008 Total 22 11 54 R ‘000 107 566 256

REGULATORY CAPACITY DATE NUMBER OF VACANCIES NUMBER OF POSTS 31 March 2006 38 310 31 March 2007 76 336 31 March 2008 92 338

REGULATORY CAPACITY ADVERTISEMENTS 283 posts were advertised in the past 27 months (01 March 2006 to 30 June 2008). R3 207 697.46 utilised for advertisements in this period. Number of posts filled in the process: Mine Health and Safety = 84 A, 31 F = V 20 Mine Equipment = 107 A, 16 F = V 29 Mine Survey = 07 A, 0 F = V 7 Occupational Medicine = 05 A, 5 F = V 0 Occupational Hygiene= 26 A, 21 F =V 5 2 YEAR CONTRACT APPOINTMENTS 17 candidates were recommended for appointment. 10 accepted. 7 declined. 2 who accepted had already left the Department.

REGULATORY CAPACITY PERCENTAGES MINE EQUIPMENT: Only 15% of the advertised posts were filled. MINE SURVEY: No post was filled MINE SAFETY: Only 36 % of the advertised posts were filled. MEDICINE: 100% (all advertised posts were filled) HYGIENE: 81% was filled

REGULATORY CAPACITY Mine Health and Safety – has the highest termination rate Biggest reasons why people are living is Salaries and benefits =42% Supervisors and Managers = 27% Lack of Career Path = 26% Lack of Recognition = 16%, Working conditions = 12% No opportunities for decision making = 12%

Training and Development Plan Interventions Programme Program Details Impact/Duration Status 1 MDP (SAMDI) Training Programme Short term Short to medium 4 officials attended AMDP @ SAMDI 2 Mentorship Experiential Training Medium term Medium to long 23 HDI graduates undergoing experiential training at GFA 3 Student Long term 7 bursaries allocated to HDI for mining related studies Training and Development Internship Programme Bursary Scheme

AMENDMENT BILL Section Provision Page s10 3 s13 4 s17 s20 Section 10 of the principal Act is hereby amended by the addition of the following subsection: “(4) The employer must keep a record of all formal training provided in respect of each employee in terms of subsection (2).” 3 s13 The employer must inform the Principal Inspector of Mines in writing within 7 days of the appointment of the occupational medical practitioner; “(4B) The information submitted to the Principal Inspector of Mines in terms of subsection (4A) must include- (i) the name of a occupational medical practitioner; (ii) practice number (iii) whether the occupational medical practitioner is engaged on full time or part time basis. 4 s17 Section 17 of the principal Act is hereby amended by the substitution for subsection (2) of the following subsection: "(2) The examination referred to in subsection (1) must be held before, or [as soon as possible] within 30 days after, termination of employment.". s20 Section 20 of the principal Act is hereby amended by the insertion after subsection (6) of the following subsection: “(7) An employee who is entitled to appeal in terms of subsection (1)(a) may not be dismissed by reason of that employee's unfitness to perform any category of work until the appeal process in terms of this section has been exhausted

AMENDMENT BILL Section Provision Page S98 s55D Fine s55E Insert a new paragraph 98(zP) as follows- (zP) minimum standards for the establishment, functioning, training, equipping and staffing of rescue services at mines and reporting by employers in respect of rescue services. s55D Chief Inspector of Mines to issue guidelines The Chief Inspector of Mines must issue guidelines by notice in the Gazette regarding the recommendation of fines by an inspector in terms of section 55A.". Fine The maximum fine that can be imposed in terms of section 55B may not exceed an amount of R2 000 000.”. s55E Determination of employer’s liability 55E. (1) In determining for the purposes of sections 55A and 55B whether or not an employer has contravened or failed to comply with any provision contemplated in section 91 (1B), the obligations placed on the employer by –

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