Mine Health and Safety CouncilMine Health and Safety Council

Presentation of the 2005/ 2006 Annual Report

Facilitate sustained improvement of occupational health and safety at mines through focused research, development of policy advice and effective legislation, and the provision of guidance to

achieve best practice and a pervasive culture of health and safety.

VisionVision

A regulatory framework and climate conducive to safe and healthy working conditions for mineworkers and

communities affected by mining.

MissionMission

CONTENTSCONTENTS

OVERVIEW PROFILE

HIGHLIGHTS

CHALLENGES

STRATEGIC OBJECTIVES: Key Issues

FINANCIAL STATEMENTS GOVERNANCE

FINANCE COUNCIL REPORT

MINE HEALTH & SAFETY COUNCILMINE HEALTH & SAFETY COUNCILSTRATEGIC OVERVIEWSTRATEGIC OVERVIEW

PROFILECOMPOSITIONTripartite Council

5 government, 5 labour and 5 employer representatives

MANDATE OF THE MHSC Advise Minister on occupational health and safety;

Review, develop and recommend legislation to the Minister;

Promote health and safety in the mining sector;

Advise on health and safety research;

Liaise with other bodies concerned with health and safety issues.

SIMRAC MOHACMRAC

Mine Health and Safety Council

Sta

keh

old

er p

arti

cip

atio

n

Legislation

Regulations

Standards

Guidelines

Health policy

Research input

Health information

Health regulations

Research programme

Communication

Research needs

Levy criteria

Minister of Minerals and Energy

Financial, administration, communication and secretarial support

Inp

ut

fro

m c

on

sult

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an

d

advi

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Audit/Risk Committee

HR/Remuneration Committee

STRATEGIC HIGHLIGHTSOccupational Safety Performance

Decrease in fatalities by 18% from 246 in 2004 to 202 in 2005.

The fatality rate has improved by 16% from 0.25 in 2004 to 0.21 in 2005

Decrease in serious injuries by 7% from 4 268 in 2004 to 3 961 in 2005

Fatality rates decreased in most sectors but gold showed a worrying upward trendTwo multi-fatal incidents claimed 9 lives during the year

Annual fatality rates for South African mines

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

1984

1985

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1987

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1991

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2003

2004

2005

Year

Fa

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/10

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All Gold Coal Other Diamond Platinum

Annual fatality and injury rates for South African mines

0

0.1

0.2

0.3

0.4

0.5

0.6

1984

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2004

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/mill

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12

Inju

ry r

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/mill

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urs

fatality rate injury rate

STRATEGIC HIGHLIGHTS

15 - 20 % silicosis in gold miners at autopsy

7 – 10 % of coal miners had pneumoconiosis at autopsy

14 % of all respirable crystalline silica samples submitted do not comply with Occupational Exposure Limits Average prevalence of HIV is greater than 30 % on mines

HIV and silicosis have a multiplicative effect on health

89 % of mine workers still exposed to noise levels above 85dB240 cases of TB per 1000 autopsies compared to 40 cases 25 years ago

Occupational Health Performance

0

25

50

75

100

125

150

175

200

225

Sili

co

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te/1

00

0 a

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1980

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2003

2004

Year

Silicosis diagnosed at autopsy

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N Cap

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Free S

tate

KZ Nat

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Mpu

mal

anga

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Gaute

ng

North

Wes

t

Indus

try

Per

cen

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Respirable crystalline silica level < 0,1mg/m3 in 2004

Mining region

Compliance Non-compliance

Target

STRATEGIC HIGHLIGHTS (cont)

Policy & Regulatory Performance 60 out of 76 topics for legislation have been completed

Regulations promulgated in respect of OHS reporting, ingress and egress from mine workings and machinery equipment

‘Guideline for Mandatory Codes of Practice for Dealing with Slope Stability-related Accidents on Surface Mines’ issued and effective

‘Guideline for Mandatory Codes of Practice to combat rockmass failure accidents in massive mining operations’ approved

‘Guidelines for the compilation of mandatory codes of practice on monorails’ approved

STRATEGIC HIGHLIGHTS (cont)

Policy & Regulatory and Performance New Regulations under the MHSA were approved

relating to occupational hygiene, on machinery and equipment, and on

the ingress and egress at mines. Guidelines for mandatory codes of practice to prevent rock fall and slope-instability-related accidents”, and “Guidelines for mandatory codes of practice on combating rockmass failure accidents in massive mining operations”.

Occupational Health and Safety ResearchThe overall cost of the research programme, has increased by 10 %, from R35.8 million in 2005 to R 39.6 million in 2006.

Challenges

Challenges

MHSC is faced with a no. of challenges of strategic importance that would need resolution

The challenges facing the MHSC:

Legislative reform: impact of OB legislation on OHS still to be assessed;

Achievement of OHS industry targets;

Reliable databases for health statistics

Mining accidents of the magnitude of disasters are still occurring

Transferring research outcomes through appropriate mechanisms

Achieving 2005 summit outcomes

Strategic Objectives: Key Issues

Objective 1:Achievement of the Industry Milestones as set at the 2003 Summit

MHSC Interventions:MHSC Programmes on rockburst management – 5 years and R20m

Elimination of rockfalls – 5 years and R20m

MHSC Programme on Silicosis elimination over 5 years at a cost of R32m

MHSC Programme for the elimination of NIHL at R30m over 5 years

The Issue: Industry target – zero fatalities and injuries

Industry target – Elimination of Silicosis

Industry target – Elimination of NIHL

Strategic Objectives : Key Issues Objective 4: Development of capacity to drive the health and

safety agenda

The Issue:• Develop an agenda for capacity building• Liaise with other stakeholders in the mining industry regarding capacity building• Ensure that the capacity building is in line with transformational imperatives

MHSC Interventions•Mechanism to liaise with MQA established•Mechanism to liaise with Departments of Labour, Health and Minerals•Post graduate student funding policy drawn up •Post graduate students included in current research projects•By 2005, 28 Masters and Doctoral students helped by MHSC•R150k included in the project to review the impact SIMRAC research for HDI students

Strategic Objectives: Key Issues

• R32m, 5 year research programme to eliminate silicosis initiated

• R30m, 5 year NIHL elimination programme

•HIV and Aids research ongoing

Objective 3: Advice to the Minister (TB, HIV and Aids)

The Issue:

MHSC Interventions

•Tuberculosis a major challenge and increasing

•XDR –TB is a recent concern

•Noise-induced hearing loss (NIHL) a significant problem

•Viable application of engineering solutions

•HIV prevalence is high on mines

MHSC Achievements

Legislation/ Advice to Minister

Advice to the minister on the process to revise the regulatory framework for the SA mining industry

Promulgation of 3 new regulations and approvall of 3 Codes of Practice

Discussion paper on HIV and AIDS

Discussion paper on national OHS structure

License to practice document has been drafted

Technology and Information Transfer

• Fourth Biennial Summit in October 2005, focus on trends and progress against milestones

• Distribution of thousands of books,CDs, annual reports to more than 700 mines

• MHSC stand at the OHS workers show in Richards Bay• 10 000 role players in the mining industry were informed of MHSC activities• Research-levy roadshows in all mining districts.

SAFETY AWARDS

Million Fatality Free Shifts

• 27 Mines achieved 1 million fatality free shifts or more

• Middelburg Mining achieved 4 million fatality free shifts

• 36 mines achieved 1 thousand or more production shifts

•Kriel Northwest shaft achieved 12 thousand fatality free production shifts

MHSC Achievements

GovernanceGovernance

Audit unqualified by Auditor General

EMPHASIS OF MATTER

The AG drew attention to the following material matters:

Shortcomings in the application of Treasury regulation 31

Database for calculation of the rate at which levies are charged

Accounting for levies in the Mine Health and Safety Council

Council Financial ReportCouncil Financial ReportOPERATING RESULTS

Council posted a surplus of R4.4m in 2006(2005: R14.2m)

REVIEW OF OPERATIONS

Research AccountLevies amounted to R37.6m in 2006 (2005: R40.6m)

Research Expenditure amounted to R20.7m in 2006 (2005: R29.5m)

Contribution to administration R5.1m in 2006 (2005:R4.9m)

Administration Account• State funding amounted to R4.2m ( 2005: R3.7m)• Levy funding amounted to R5.1m (2005: R5.1m)• Expenditure amounted to R14.5m (2005: R9.3m)

Administrative Fine Fund• Fines received amounted to R0.6m (2005:R0.2m)• Expenditure amounted to R0.6m (2005: R0.2m)