Mine Health and Safety Council Presentation to Parliamentary Portfolio Committee on Mineral Resources MHSC Annual Report for 2010/ th January 2012

Contents –MHSC Mandate –MHSC Overview –Strategic Objectives of MHSC –Monitoring and Reporting Performance –Good Governance at MHSC –MHSC in 2012 and beyond 2

Vision: A regulatory framework and climate that produces safe and healthy working conditions for mineworkers and communities affected by mining Mission : To facilitate sustained improvement of occupational health and safety at mines through focused research and guidance on best practice, effective policy advice and legislation, and the development of a pervasive culture of health and safety 3 The Mine Health and Safety Council

Advise the Minister on all occupational health and safety issues in the mining industry relating to legislation, research and promotion Review and develop legislation for recommendation to the Minister Promote health and safety in the mining industry Oversee research in relation to health and safety in the mining industry Liaise with other bodies concerned with health and safety issues 4 MHSC’s Mandate

Mine Health & Safety Council Mining Regulations Advisory Committee (MRAC) Mining Occupational Health Advisory Committee (MOHAC) Safety in Mines Research Advisory Committee (SIMRAC) Mining Industry TB & HIV/AIDS Advisory Committee(MITHAC) Audit & Risk Committee Legislation Regulations Guidelines Standards Health Policy Health information Health regulations Research input Research needs Research programmes Technology Transfer MHSC Office: Operational Execution and Implementation State Labour Employers 5 MHSC’s Composition HIV/AIDS policy TB guidelines HIV/AIDS for mining in line with NSP The main task of the MHSC is to advise the Minister of Mineral Resources on OHS legislation and research outcomes towards improving OHS performance in SA mines

MHSC’s Strategic Plan Balance Scorecard is the best way to monitor and report the organisational performance - provides an integrated view of the overall performance 1.Customer Perspective2. Internal Business Focus on customers satisfaction to ensure that do not find other suppliers who meet this need. Poor performance in this area is a leading indicator of future decline. Three key clusters that focus on day to day operations; development of products and services to meet the customer needs and customer relationship management. 3. Learning and Growth4. Financial Perspective Growth in human capital, information capital and organisational is critical to the success of any and all organisations To ensure financial sustainability through revenue collection; reducing operational costs and managing financial risks

1.Customer Perspective2. Internal Business  Provide advice to the Minister  Influence the Health and Safety Legislative environment  Promote a Health and Safety Culture  Improve Tripartite Partnership and Cooperation  Improve Efficiency  Embed & Automate processes  Review processes  Engage in purposeful OHS research  Benchmark against, Adopt & Share in OHS Best Practice  Understand current and future OHS needs  Educate and empower stakeholders  Leverage networks 3. Learning and Growth4. Financial Perspective  Attract, Develop and Retain Appropriate Staff  Embed Cored Values  Build Technology Capability  Build Accountability  Improve Revenue Collection  Align Budget with Strategy  Leverage Assets Optimally  Improve cost structure 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

Embed Core Values Attract, Develop & Retain appropriate staff Learning & Growth Build Technological Capability Customer and Stakeholder Efficient Business Processes Internal Process Knowledge Leadership Stakeholder and Customer Relationship Management Understand Stakeholder Needs & Expectations Adopt & Share Best Practice Understand Current & Future OHS Needs Engage in Purposeful Research Automate processes Review business processes & procedures Embed processes Leverage Assets optimally Improve Revenue Collection Improve Cost Structure Financial Align Budget with Strategy Influence Legislation Promote Health and Safety Culture in the mining industry Customer and Stakeholder Provide advice & reliable information on OHS Strengthen Tripartite Partnerships Regular & Timeous Feedback Improve efficiency Educate & Empower our Stakeholders Build / Leverage Networks Benchmark against best practice Build Accountability Manage Risk Strategic Plan - BSC Map

MHSC strategic objectives alignment with the BSC 1.Customer Perspective  Provide advice to the Minister  Influence the Health and Safety Legislative environment  Promote a Health and Safety Culture  Improve Tripartite Partnership and Cooperation  Drive the implementation of the Summit 2013 actions within the mining industry  Build Health and Safety Capacity in the Sector  Monitor the improvement of the lifestyle of mine workers  Build Capacity in the MHSC Office  Build Capacity in the Council to ensure knowledge of Councillors matches the MHSC strategic objective  Manage OHS research  Maintain effective Financial Management  Maintain a high level of risk management Measuring performance

Measuring performance – Objective 1 COMMENTARY The Culture Transformation was developed towards end of 2009 – lack of approval impacted negatively on implementation. Full compliance on reporting as per Ministry and Treasury requirements. Advisory notes were sent to the Minister of Mineral Resources on TB and HIV/AIDS, AMD. Mine Disaster in Chile and OHS research programme. Although no legislation was developed inputs were provided on Enforcement Guidelines as well as MHS Act Other regulations under discussion in the year were : (i) The Shafts and Winders regulations (ii)Chapter 10. Review of Legal Appointments. (iii) Further interaction with ECSA (iv)Amendments to Conveyor Belts Customer and Stakeholder Perspective OBJECTIVEMEASURETARGETACTUA L REASONS FOR DEVIATION Promote Health and Safety Culture in the Mining Industry OHS Culture framework developed Yy Approval of the Cultural Transformation framework was obtained at the Council meeting in April Stakeholders still want to discuss the framework report. % implementation of OHS culture framework plan 90%0% The Culture Transformation Framework was approved in April 2011 due to the dependency on the approval, the implementation plan was not developed. Regular & Timeous Feedback% compliance with policy requirements 100% Compliance with required timeframes for submission of plans and reports is high. The MHSC management quarterly report, business plan and budget was submitted timeously. Provide Advice & Reliable Information on OHS No of OHS advice reports submitted to Minister 44 A number of topical issues (e.g. Chilean Mine Disaster and Acid Mine Drainage) were addressed. Stakeholder Satisfaction Survey (Impact Assessment) 75% - The survey tool was approved however the survey was not undertaken due to the dependency on the website to disseminate the survey. Influence Legislation No of recommendations (legislative) submitted 60 Inputs to the Enforcement guidelines were made. Workshop held on the proposed amendments to the MHSA. Strengthen Tripartite Partnerships No of high-level stakeholder engagements to discuss issues 21 The Deputy Minister visited the MHSC Offices in February 2011 (due to the late notification not all stakeholders were able to attend.) Representation of stakeholders at scheduled meeting 40%75% The MHSC and its sub-committees met regularly for the period under review with attendance being generally good. % tripartite initiatives implemented (summit action plan) 80%70%Most of the projects on the action plan are being developed through the Culture Transformation Framework and as such have been delayed

MHSC strategic objectives alignment with the BSC 1.Customer Perspective2. Internal Business  Provide advice to the Minister  Influence the Health and Safety Legislative environment  Promote a Health and Safety Culture  Improve Tripartite Partnership and Cooperation  Drive the implementation of the Summit 2013 actions within the mining industry  Build Health and Safety Capacity in the Sector  Monitor the improvement of the lifestyle of mine workers  Manage OHS research  Maintain effective operation of the Council  Support OHS Monitoring and Evaluation Initiatives 3. Learning and Growth4. Financial Perspective  Build Capacity in the MHSC Office  Build Capacity in the Council to ensure knowledge of Councillors matches the MHSC strategic objective  Manage OHS research  Maintain effective Financial Management  Maintain a high level of risk management Measuring performance

Measuring performance – Objective 2 COMMENTARY The review of Business Processes was critical in the year and was completed Capacity constraints impacted negatively on other initiatives that lead to some only being partially completed Research projects commenced late due to lack of adequate proposals received from research providers with significant consequences. Commissioned specialised task team to investigate falls of ground in Platinum following Marikana Incident Internal Perspective - Efficient Business processes OBJECTIVEMEASURE TARGETACTUAL REASONS FOR DEVIATION Improve Efficiency % adherence to prescribed timeframes 90% The target was met however a few challenges were still experienced in the submission of the document packs. Embed Processes % adherence to processes 100%77% Changes to research management where implemented during the year. Business processes for all unites were reviewed. Automate Processes % of processes automated 90%40% Challenges in IT resourcing and staffing and Problems with website Review Business Processes & Procedures % of business processes reviewed 100% All process for MHSC activities were updated Internal Perspective - Knowledge Leadership Adopt & Share Best Practice Number of best practices identified, adopted and shared 10 Specific programmes identified were effective methods of transferring research outcomes to target audiences is needed. The programmes were identified by not rolled out to members nor the sector. Engage in Purposeful Research Champion mine project perception and rating 75%0 Survey to be developed in 2 nd half of the 2010/2011 year. This was not achieved to the capacity constraints not only the Research Department but within MHSC Offices. %age of Projects on brief, on budget,on time 70%40% Delays experienced due to late approval and was compounded by lack of submissions of pre- proposals on research questions. All new projects started but are late. Benchmark Against Best Practice Completed Best Practice Survey YY SA practices identified as leading in most areas of OHS and as a result the focus has been on utilising the services within the country and continue with the internal research processes. Understand Current & Future OHS Needs Annual OHS needs analysis report approved YYNeeds analysis for 20111/2012 completed and approved by MHSC. Internal Perspective - Stakeholder and Customer Relationship management Educate & Empower our Stakeholders %age implementation of communication plan 30 MHSC communication strategy approved. The appointment of the MHSC Communications Manager will ensure that this gets implemented. Educate & Empower our Stakeholders Number of stakeholder interactions 32 In February 2011, the MHSC conducted an Induction Programme for all the stakeholders. Presentations were given to stakeholders on the research processes as well as the research programmes and projects. Understand Stakeholder Needs & Expectations Implement Assessment Survey YNSurvey tool not rolled out

MHSC strategic objectives alignment with the BSC 1.Customer Perspective2. Internal Business  Provide advice to the Minister  Influence the Health and Safety Legislative environment  Promote a Health and Safety Culture  Improve Tripartite Partnership and Cooperation  Drive the implementation of the Summit 2013 actions within the mining industry  Build Health and Safety Capacity in the Sector  Monitor the improvement of the lifestyle of mine workers  Manage OHS research  Maintain effective operation of the Council  Support OHS Monitoring and Evaluation Initiatives 3. Learning and Growth4. Financial Perspective  Build Capacity in the MHSC Office  Build Capacity in the Council to ensure knowledge of Councillors matches the MHSC strategic objective  Manage OHS research  Maintain effective Financial Management  Maintain a high level of risk management Measuring performance

Measuring performance – Objective 3 COMMENTARY Metrics put in place to focus on training of individuals as well as corporate self improvement During the year, post graduate studies for one employee was funded. Learning & Growth OBJECTIVEMEASURETARGETACTUALREASONS FOR DEVIATION Attract, Develop & Retain Appropriate Staff No of vacancies23 The following vacancies have not been filled 1. Safety Research Programme Manager 2. IT Specialist 3. Receptionist % of payroll spend on training and development 1%2.2%The following training took place on the period under review: (1) Balanced Scorecard training. (2) Emergency training (3) SAMSHA training. (4) Emergency training; (5) Tax workshop (6) PHD registration Embed Core Values Employee opinion survey ratings 3/4N/AThe employees survey process was not completed by the end of fourth quarter under review. This will be prioritised for the first quarter of 2011/12 Build Technological Capability % implementation of integrated IT & knowledge management infrastructure 90%95% HR processes and policies have been updated, loaded SAMSHA on system effective use of SAMSHA to be enforced Build Accountability % employees with performance agreements for 2010/11 100%96% Not all the staff (1) had their assessments signed by the end of the year.

MHSC strategic objectives alignment with the BSC 1.Customer Perspective2. Internal Business  Provide advice to the Minister  Influence the Health and Safety Legislative environment  Promote a Health and Safety Culture  Improve Tripartite Partnership and Cooperation  Drive the implementation of the Summit 2013 actions within the mining industry  Build Health and Safety Capacity in the Sector  Monitor the improvement of the lifestyle of mine workers  Manage OHS research  Maintain effective operation of the Council  Support OHS Monitoring and Evaluation Initiatives 3. Learning and Growth4. Financial Perspective  Build Capacity in the MHSC Office  Build Capacity in the Council to ensure knowledge of Councillors matches the MHSC strategic objective  Maintain effective Financial Management  Maintain a high level of risk management Measuring performance

Measuring performance – Objective 4 COMMENTARY Improvement in revenue collection from levies collectable from operating mines Improvement in risk reduction for the organisation Return on Investment (ROI) was to measure development costs of staff and capital costs against the achieving of strategic objectives – however was not undertake due to capacity constraints Reporting in line with all Ministry and Treasury Requirements Unqualified audit report from Auditor General Financial Perspective OBJECTIVEMEASURETARGETACTUALREASONS FOR DEVIATION Improve Revenue Collection% Improvement on Debtors ageing30%35% Though there is improvement on collections, the challenge remains with the accuracy of the billing data supplied by DMR Align budget with strategy% Total Budget Allocated to Strategy80%79%Expenditure is in line with approved Business Plan. Leverage Assets Optimally ROI on People & Infrastructure100%0% Measure has not been developed. Improve Cost Structure Opex Ratio Savings as a result of vacancies and reduced staff costs. Manage Risks % reduction in Substantial Findings50%64% Exceeded target set. External Audit complete. Unqualified audit report was obtained from 2009/2010. Number of findings. Reduced compared to 2008/9 report

MHSC had no audit findings raised by the Auditor-General Significant focus on Stakeholder Perspective – to provide information on OHS issues to Ministry, Employers and Employees. Efficacy of MHSC Operations by introduction of new systems and processes. Financial Management and Risk Reduction ongoing and there has been significant improvement Progress reports to the Minister of Mineral Resources on a quarterly basis Summary of performance for 2010/2011

Research Projects 2010/2011 that were commissioned by the MHSC were: Impact of Dust from Tailings Dam Facilities on neighbouring communities. Development of Framework for reporting and management system for Occupational Health. Training and Awareness programme for Thermal Stress. Minimising the risk of seismicity in platinum mines. Integration of local mine seismic networks to national networks. Personal Protective Equipment for Women in Mining. Guidelines for Workers Incapacity due to Ill Health Guidelines for Fitness for Work Summary of performance for 2010/2011

19 The Audit Committee is satisfied, with the content and quality of the monthly and quarterly reporting as submitted by the Council during the year under review. The Audit Committee is satisfied with the plan to be implemented by management in addressing these challenges and the impact will be monitored continuously in the new financial year. The Committee is satisfied that the internal audit function is operating effectively and that it continues to provide assurance in relation to the risks pertinent to the MHSC in its audit. Chairperson of the Audit Committee Good Governance - Internal Audit

20 Good Governance - Auditor General

21 Good Governance - Financial Statements STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH Income 63,88359,916 Revenue from non-exchange transactions 57,020 52,903 Revenue from exchange transactions Finance income 6,500 7,235 Other income Expenditure 50,586 45,004 Research expenditure 21,459 18,462 Administrative expenses 5,8714,194 Staff costs 9,0559,937 Depreciation and amortisation 8601,095 Operating expenses 12,255 10,959 Promotion of Health And Safety 1309 Finance costs Net Surplus for the year 13,298 14,912

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 Mine Health and Safety Council

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

Thank you ZERO HARM – THE ULTIMATE