Mine Health and Safety Council Presentation to P P C: Mineral Resources MHSC Annual Report for 2012/ th MARCH 2014

Contents –Introduction of MHSC Team –Vision & Mission –Strategy Map –Overall Performance –Performance on Pre-determined Objectives –Issues raised by the Auditor General –Conclusions and Way Forward 2

The Mine Health and Safety Council Vision “Trusted advisor to the Minister of Mineral Resources and to Stakeholders for the South African Mining Sector, as Knowledge Leader in Occupational Health and safety issues, towards the Achievement of Zero Harm to Mine Workers, Communities and the Environment” Mission “To promote the Culture of Occupational Health and Safety (OHS) in the Mining Industry, by striving towards Zero Harm, on all Health and Safety Issues and Legislation” 3 VISION AND MISSION

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 culture 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 MHSC Mandate 4

Occupational Safety – Fatalities and Injuries – Milestones Industry Target: Zero rate of fatalities and injuries In the Gold Sector: By 2013, achieve safety performance levels equivalent to at least current international benchmarks for underground metalliferous mines In the Platinum, Coal and Other Sectors: By 2013, achieve constant and continuous improvement equivalent to at least current international benchmarks Occupational Health – Milestones Industry Target: Elimination of Silicosis By December 2008, 95% of all exposure measurement results will be below the occupational exposure limit for respirable crystalline silica of 0.1mg/m3 (these results are individual readings and not average results) After December 2013, using present diagnostic techniques, no new cases of silicosis will occur amongst previously unexposed individuals (Previously unexposed individuals = individuals unexposed prior to 2008, i.e. equivalent to a new person entering the industry in 2008) Industry target: Elimination of Noise Induced Hearing Loss (NIHL) After December 2008, the hearing conservation programme implemented by the industry must ensure that there is no deterioration in hearing greater that 10% amongst occupationally exposed individuals By December 2013, the total noise emitted by all equipment installed in any workplace must not exceed a sound pressure level of 110dB(A) at any location in that workplace (includes individual pieces of equipment) MILESTONES

STRUCTURE OF MHSC Human Resources & Remuneration Advisory Committee (HRRAC)

Strategic Objectives on a Strategy Map Enhance knowledge and information management to support staff and clients Ensure adequate capacity and skills to deliver on mandate Ensure appropriate financial resources fro all MHSC programmes in order to deliver on objectives Ensure financial sustainability of MHSC Achieve operational excellence through efficient core business process Provision of advice reports that influences mining Health and Safety Performance Become a knowledge leader in mine health and safety through conducting focused research IPO1 LO1 LO2 FO2 FO1 Promote Improvement of Culture of Health and Safety IPO3 CO1 Strengthen tripartite partnerships through communication and promotions of the MHSC programmes Implement the MHSC initiatives from the Summit action plans CO4 CO2 CO3

8 Customer Perspective Objectives Performance OBJECTIVESTATUS 1. Promote a Health and Safety Culture (Culture Transformation Framework) ACHIEVED 2. Provide advice and reliable information on OHSNOT ACHIEVED 3. Strengthen Tripartite Partnership through communication and promotion ACHIEVED 4.Implement summit agreementsACHIEVED COMMENTARY Under this perspective – significant delivery in all areas except on the advisory notes. Reason for non-delivery on Provision of Advisory notes was due to AG not recognising approvals by the Board in April. To avoid re-occurrence - the new workplan was approved that the target will be achieved by the 3 rd quarter of the financial year.

9 Customer Perspective Objectives Performance COMMENTARY Workshops on women in mining – PPE Driving the Culture Transformation Framework Workshops on Fitness for work, guidelines for workers incapacity due to ill health Workshop on developing a framework for reporting of Occupational Health Information management system

10 Internal Processes Performance on Objective COMMENTARY For the financial year, the dissemination of research projects was core activities via presentations at conferences and seminars. All business processes were reviewed and mapped based on high risk areas identified from audit findings.. STATUS 2.1. Become a Knowledge Leader in Mine OHSACHIEVED 2.2. Achieve Operational Excellence through core business processACHIEVED

11 Internal Processes Objective Performance COMMENTARY Focus on completion of research projects. Projects on Elimination of Falls of Ground – early detection and risk elimination Integration of Seismic networks Phase 1 completed Project on improving PPE for women

OCCUPATIONAL HEALTH & SAFETY RESEARCH Approved New Projects  Noise controls for mining equipment  Technology Transfer: Support Design in Bushveld complex Mine  Completion of Continuous projects Completed Projects  Rockfall Elimination - Measuring & Monitoring to Induce Rockall risk  Integration of SA National Seismograph Network & Database with Mining Network  Investigate of Digital Chest Radiography in SA Mining Industry  Design Selection Management of Protective Eye Equipment

13 Learning & Growth Perspective Objectives Performance COMMENTARY MHSC improved on the performance in the previous financial year. Challenge was in the obtaining of a Knowledge Information Management System. Focus is on strengthening the ICT environment on policy and procedures prior to the implementation of new systems to address this area. ObjectivesSTATUS 1. Ensure adequate skills and capacityACHIEVED 2. Enhance Knowledge and information managementPARTIALLY ACHIEVED

Health and Safety Culture Implement culture transformation framework Improve tripartite relations Ensure implementation of summit commitments 14 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 MHSC Initiatives- OHS Summit

15 MHSC Initiatives- Summit Action Plan CULTURE TRANSFORMATION FRAMEWORK The Culture Transformation Framework (CTF) was given prominence and promoted during the MineSafe 2012 Conference. MHSC facilitated and chaired a panel discussion with members from the various stakeholders on the issues CTF The MHSC Office received pledges from conference attendees on the CTF implementation

16 Financial Perspective Objectives Performance COMMENTARY Debt management processes are effective Increased focus on project management resulted in significant improvement in research expense and payments as per budget. Objectives STATUS 1. Ensure financial sustainabilityACHIEVED 2. Ensure appropriate financial resources for delivery of MHSC programmes ACHIEVED

Financial performance overview

Financial Performance Notes 1.Major savings are in personnel costs because most positions were vacant during the year 2.Reduction is spending led to a higher finance income than the budget

Auditor General Report Year Audit OpinionUnqualified Emphasis of matterYes bad debts written Off Yes Reinstatement of 2011 figures Expenditure Management Irregular million6.733 million Fruitless and wasteful R59 000R0.00

Causes of Irregular Year RandsR’000 Violating delegation of authority Awarded to suppliers whose tax matters were not in order 3380 Five year lease6059 Non-Compliance with PPPFA Total

Turnaround Actions 1.Engagement on the SCM re-engineering project in January Formed standing bid committees and sent members for training 3.Tightened performance reviews and accountability on SCM staff members 4. Electronic Supplier database enhanced

Strengths Tripartism Similar 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 Mine Health and Safety Council ZERO HARM – THE ULTIMATE