Mine Health and Safety Council

1. Mine Health and Safety Council Presentation to Parliamentary Portfolio Committee on Mineral Resources MHSC Annual Report for 2010/2011 27th January 2012

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

3. The Mine Health and Safety Council 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

4. MHSC’s Mandate • 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 • Promotehealth 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

5. MHSC’s Composition 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 State Labour Employers Health Policy Health information Health regulations Research input Legislation Regulations Guidelines Standards Research needs Research programmes Technology Transfer HIV/AIDS policy TB guidelines HIV/AIDS for mining in line with NSP MHSC Office: Operational Execution and Implementation 5

6. 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

7. 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

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

9. Measuring performance MHSC strategic objectives alignment with the BSC

10. 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

11. Measuring performance MHSC strategic objectives alignment with the BSC

12. 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

13. Measuring performance MHSC strategic objectives alignment with the BSC

14. 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.

15. Measuring performance MHSC strategic objectives alignment with the BSC

16. 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

17. Summary of performance for 2010/2011 • 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 theMinister of Mineral Resourceson a quarterly basis

18. 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

19. Good Governance - Internal Audit 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 19

20. Good Governance - Auditor General 20

21. Good Governance - Financial Statements 21

22. Mine Health and Safety Council 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

23. 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

24. ZERO HARM – THE ULTIMATE Thank you Thank you