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

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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 R and R were procured without inviting at least three written price quotations
For goods and services with a transaction value of between R and R , quotations were not evaluated in two stages

10. 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.

11. 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

12. 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.

13. 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

14. 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

15. 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

16. 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

17. 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.

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

19. 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

20. 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

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

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

23. 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

24. 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

25. MHSC’s Culture Transformation

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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

33. 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

34. Attaining ZERO HARM
Supported by
Driven by
Towards

35. ZERO HARM – THE ULTIMATE
Thank you
Thank you 35