Mine Health and Safety Council Presentation to Parliamentary Portfolio Committee on Mineral Resources MHSC Annual Report for 2011/2012 7th November 2012

Contents Introduction of MHSC Team Overall Performance Performance on Pre-determined Objectives Issues raised by the Auditor General Conclusions and way forward

The Mine Health and Safety Council Vision “A world-class health and safety performance for mine workers and affected communities” Mission “To promote health and safety culture in the mining industry and provide current advice on mine health and safety issues through tripartite partnership” . 3

Monitoring MHSC’s Strategic Plan MHSC Strategic plan is a 3 year rolling plan – based on stakeholder needs, mining industry opportunities and challenges; outcomes of industry initiatives and plans in relation to OHS

Performance per Objective 1.CUSTOMER PERSPECTIVE 89% Provide advice and reliable information on OHS (report to the minister + stakeholder survey) 96% Influence the Health and Safety performance (legislation + research advice) 75% Promote a Health and Safety Culture (Culture Transformation Framework) 77% Improve Tripartite Partnership and Cooperation (Summit Plan + principal engagements) 97% Regular and Timeous Feedback (compliance) 100% COMMENTARY Under this objective – significant delivery. Advisory Reports to the Minister on Summit Commitments, Establishment of a Centre of Excellence, HIV/AIDS &TB 5

Performance per Objective 2. INTERNAL BUSINESS 80% Business Efficacy (policies, processes and timeframes) 95% Understanding current and future OHS needs 100% Engage in Focussed Research (projects, deliverables and survey) 67%  Adopt and share best practices (survey & adoption) 75% Understanding Stakeholder needs COMMENTARY For the financial year, 12 research projects were completed. This is the largest number of projects completed in a financial year for a long time at MHSC. As result of improvements in research project management processes. Challenge was in champion mines reporting on the projects that were completed. New initiative under the Mining Charter has addressed this aspect of involvement and implementation of research. 6

Financial Performance   Actual R’000 Budget Variance Income 69 275 68 233 1 042 Revenue from non-exchange transactions 60 583 62 024 (1441) Finance income 7 905 6 209 1 696 Other income 787 Expenditure 48 500 59 463 (10 963) Research expenditure 22 261 28 020 (5 759) Administrative expenses 13 010 14 718 (1 708) Staff costs 12 157 14 411 (2 254) Depreciation and amortisation 1 945 2 301 (356) Finance costs (873) 13 (886) Surplus for the year 20 775 8770 12 005 Commentary Performance against budget There was improvement in revenue collection where 90% was collected in 2012 in comparison to 88% in 2011. 7

Findings of the Auditor General The Auditor General in the assessment of the MHSC found following areas of concern: Adherence to Supply Chain Management Processes HR related matters Changes to the Annual Financial Statement

Supply Chain Management Findings of the Auditor General Supply Chain Management Entity Finding Mitigation Action Mine Health and Safety Council (MHSC) Errors in applying the evaluation criteria to be used in awarding preference points, All staff involved in procurement process have been retrained on SCM. Built into the performance contracts. SCM Policy reviewed by ARC SCM personnel recruited to address challenges and provide supervision   Errors in applying the preference point system Errors in applying the terms of reference were not clearly stated on the request for quotations Goods and services with a transaction value between R30 000 and R500 000 were procured without inviting at least three written price quotations For goods and services with a transaction value of between R30 000 and R500 000, quotations were not evaluated in two stages

Performance Information Findings of the Auditor General Performance Information Entity Finding Mitigation Action Mine Health and Safety Council (MHSC) Although no material findings concerning the usefulness and reliability of the performance information were identified in MHSC performance report, attention was drawn to the level of non-achievement of the planned targets:   Of the total number of planned targets, only 20 targets were achieved during the year under review. The targets have been reviewed to ensure SMART. Office structure has been reviewed to ensure resourced adequately.

Findings of the Auditor General Human Resources Entity Finding Mitigation Action Mine Health and Safety Council (MHSC)   The following vacancies were not filled:  Committee Administrator IT Controller IT Specialist Safety Research Programme Manager no HR plan in place  MHSC have established HR committee Review of controls on bonus payments to ensure no errors. Money being recovered. New research management processes in place Over payment on bonus no deductions were made for PAYE for experts

Annual Financial Statements Findings of the Auditor General Annual Financial Statements Entity Finding Mitigation Action Mine Health and Safety Council (MHSC) Annual financial statements submitted for audit purposes were not prepared in all material respects in accordance with the requirements of section 55(1)(b) of the PFMA. Material misstatements identified by the auditors were subsequently corrected.   Stricter controls introduced. Mock Financials done to ARC Review on research commitments done monthly.

Remedial Actions on AG findings CORRECTIVE MEASURES SCM On the issue of the SCM processes, policies were reviewed and revised. Appointment of a senior SCM person to assist in controls. Training of all senior staff involved in SCM Processes Major focus area for Internal Audit Material changes in AFS Increase controls on policies and processes Focus in commitment schedules Mock Financials submitted to Audit and Risk Committee

Performance in 2011/2012 For the 2011/2012 year the MHSC made significant contributions towards achieving Zero harm in the mining sector. A two day summit was held in November DAY 1 focussed on the OHS Summit DAY 2 was dedicated to HIV/AIDS and TB initiatives for the Mining Sector There was a reaffirmation on the establishment of the Centre of Excellence The Launch of the Culture Transformation Framework

MHSC Initiatives- OHS Summit Health and Safety Culture Implement culture transformation framework Improve tripartite relations Ensure implementation of summit commitments Learning industry Establish Centre of Excellence for research, research implementation and capacity-building focusing on: Improve OHS capacity Reduce illiteracy in the mining sector Increase scarce skills that are critical to OHS Improve monitoring of occupation diseases Healthy and Safe Workplaces Eliminate Silicosis Eliminate NIHL Eliminate falls of Ground Eliminate transport and machinery accidents Improve lifestyle of mine workers Integrate and simplify compensation system 15 15

MHSC Initiatives- OHS Summit Health and Safety Culture Implement culture transformation framework Over the years, MHSC focus has been to control workplace risks through technical aspects or the design of systems and controls.   MHSC undertook the project Changing Minds, Changing Mines to develop a framework into making a revolutionary change towards attaining zero harm in the sector.   16 16

MHSC’s Culture Transformation Vision We, the Tripartite Stakeholders of the South African Mining Sector, see a future in which every mine employee shall return home unharmed every day.   Mission Through the individual and collective efforts, each member of the South African Mining Sector, shall (led by the leaders and principals), adhere to the values of care and dignity towards respect for each other; not blaming but applying fair sanction through honesty, integrity and transparency, ensuring trust; equity and equality to attain ZERO HARM.

TRANSFORMING THE SOUTH AFRICAN MINING INDUSTRY Initiatives – Activities TRANSFORMING THE SOUTH AFRICAN MINING INDUSTRY

TRANSFORMING THE SOUTH AFRICAN MINING INDUSTRY MHSC Initiatives- Culture Transformation At the Summit in November 2011, the principals launched the Culture Transformation Framework 11 pillars were identified Each focussing on various aspects that would improve the attitude and approach to OHS in the sector. Stakeholder prioritised 5 of the pillars. Focus is on promotion and implementation of the CTF Initiatives – Activities TRANSFORMING THE SOUTH AFRICAN MINING INDUSTRY 19 19

MHSC’s Culture Transformation PILLAR INTENTION Bonus and Performance System We will ensure that ZERO HARM is prioritised ahead of production Risk Management We will seek to eliminate risks at their source and investigate root causes Leadership Leaders will lead by example in walking the ZERO HARM talk Leading Practice We will take a common approach to identifying and facilitating the adoption of leading OHS practices and research outcomes Elimination of Discrimination There will be no racism, genderism and any forms of unfair discrimination

MHSC’s Culture Transformation For each pillar: Minimum Standards Clearly outlines the intent

MHSC’s Culture Transformation For each pillar: Minimum Standards Clearly outlines the intent 2. Action Plan Roles and Responsibilities Timeframes

MHSC’s Culture Transformation Performance against each pillar identified will be reported using a scoring system described as follows: PILLAR 1 2 3 4 Leadership 2. Risk Management 3. Elimination of discrimination 4. Bonuses and Performance Incentives 5. Leading Practices X X X X X 0 = no system/programme in place that meets the min stds. 1 = a new system/programme or a révision of existing is PLANNED to meet the min stds. 2 = a new system/programme or a révision of existing is DEVELOPED to meet the min stds. 3 = a new system/programme or a révision of existing is IMPLEMENTED to meet the min stds. 4 = a new system/programme or a révision of existing is IMPLEMENTED AND REVIEWED for suitability

MHSC Initiatives- HIV/AIDS & TB Summit At the Summit in November 2011, the principals agreed to work to the three pillars on HIV/AIDS, TB and Silicosis in the mining sector PREVENTION TREATMENT, CARE AND SUPPORT RESEARCH, MONITORING & SURVEILLANCE In total there are 22 areas focus. 24 24

MHSC’s Culture Transformation

MHSC Initiatives- Centre of Excellence The MHSC will fund the Centre of Excellence in line with an approved Business Plan for the Centre. The MHSC will ensure that leadership of the Centre implement a strategic plan in a coordinated and comprehensive manner in line with the mandate of the MHSC and purpose of the Centre. The MHSC will consider the Centre of Excellence as a provider of choice for research and capacity building as the Centre develops its own capacity to deliver. 26 26

MHSC Initiatives- Research Projects The MHSC completed the following projects in the year Integration of National and Local Mine Seismic Networks Post Traumatic stress disorders in the South African mining Industry Evaluation of shotcrete performance Extension - Improved (Alternative) ventilation of CM headings in coal mines NIHL Elimination Programme – Other Noise Sources Rockfall Elimination Programme –Managing rockfall risk & the value of spending Minimising the seismic risk in the platinum sector NIHL & silicosis prevention audit tools for use in all commodities in the SAMI Thermal Stress Awareness Requirements for Occupational Health Information management systems Personal Protective Equipment Falls of Ground Improving Awareness on Noise Induced Hearing Loss 27 27

MHSC Initiatives- Research Projects PPE for women: Mining - male-dominated sector. Introduction of Women in mining have special health and safety needs resulting from their unique anatomical and physiological makeup. The provision of appropriate PPE Results indicate the need for greater focus on the health needs of WIM. Need to redesign PPE for WIM to accommodate their anatomical and physiological body structures. Review of MHSA required to enforce “employers are obliged to ensure and promote the health and safety of their employees.” 28 28

MHSC Initiatives- Research Projects Rockfalls and rockbursts in platinum mines A Risk Evaluation model has been developed, to assess support system in a given geotechnical environment. Using seismic data show fluctuations over recent years, but not necessarily an alarming trend for the near future. Guidelines were developed to assist platinum mining operations to mitigate seismic risk. Risk model clearly shows the expected frequency of injuries and economic losses for each support system, which enables a fair comparison of each support system. Outcomes of both projects are being tested for implementation. 29

MHSC Initiatives- Research Projects Issues impacting on Small Scale Mining Mining super imposed against Health Facilities Need to understand what the issues are? Then develop programmes based on needs. Project just commenced. Mines Health Care Facilities 30

Mine Health and Safety Council Strengths Tripartism Uniformed voice by all towards ZERO HARM Sound Risk Management Challenges The need for proactive/leading indicators Lack of research capacity – nationally Research Implementation Reporting of data Opportunities The MHSC OHS Summit The Centre of Excellence The Cultural Transformation Framework Focus on Technology Transfer Reporting on OHS in mining charter

Zero Harm Attaining ZERO HARM Skills, capacity and training Relevant knowledge and information Health and Safety Culture Each set is critically important to the reach the target… The right mind set…. Doing the right things…. With the right support…. 32

Attaining ZERO HARM The MHSC continues to work tirelessly to make a meaningful contribution towards the realisation of ZERO HARM at South African mines. Reaching the industry’s 2013 milestones is indeed a mammoth task that calls for dedication and co-operation from all

Attaining ZERO HARM Supported by Driven by Towards

ZERO HARM – THE ULTIMATE Thank you Thank you 35