Mine Health and Safety Council

Mine Health and Safety Council

Presentation to Parliamentary Portfolio Committee on Mineral Resources

MHSC Annual Report for 2011/2012

7th November 2012

Contents– Introduction of MHSC Team

– Overall Performance

– Performance on Pre-determined Objectives

– Issues raised by the Auditor General

– Conclusions and way forward

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The Mine Health and Safety CouncilVision

“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”

.

Monitoring MHSC’s Strategic PlanMHSC 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

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Performance per Objective1.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

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Performance per Objective

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.

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 75%

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Financial Performance Actual

R’000Budget

R’000Variance

R’000Income 69 275 68 233 1 042Revenue from non-exchange transactions 60 583 62 024 (1441)Finance income 7 905 6 209 1 696Other income 787 0 787 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

CommentaryPerformance against budgetThere was improvement in revenue collection where 90% was collected in 2012 in comparison to 88% in 2011.

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

Entity Finding Mitigation Action

Mine Health and Safety Council (MHSC)

1. 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

1. Errors in applying the preference point system

1. Errors in applying the terms of reference were not clearly stated on the request for quotations

1. Goods and services with a transaction value between R30 000 and R500 000 were procured without inviting at least three written price quotations

1. For goods and services with a transaction value of between R30 000 and R500 000, quotations were not evaluated in two stages

Findings of the Auditor General

Supply Chain Management


Performance Information

Entity Finding Mitigation Action


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.


Human ResourcesEntity Finding Mitigation Action


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


Annual Financial StatementsEntity Finding Mitigation Action


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.

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

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

Health and Safety Culture• Implement culture

transformation framework

• Improve tripartite relations

• Ensure implementation of summit commitments

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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

Health and Safety Culture• Implement culture

transformation framework

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MHSC Initiatives- OHS Summit

• 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.

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.

Initiatives – Activities

TRANSFORMING THE SOUTH

AFRICAN MINING

INDUSTRY

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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

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


MHSC’s Culture TransformationFor each pillar:

1.MinimumStandards

•Clearly outlinesthe intent

MHSC’s Culture TransformationFor each pillar:

1.MinimumStandards

•Clearly outlinesthe intent

2. Action Plan

•Roles and Responsibilities

•Timeframes

Performance against each pillar identified will be reported using a scoring system described as follows:


PILLAR 0 1 2 3 4

1. Leadership

2. Risk Management

3. Elimination of discrimination

4. Bonuses and Performance Incentives

5. Leading Practices

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.

X

X

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

X

XX

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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 areasfocus.


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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.

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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

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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.”

MHSC Initiatives- Research ProjectsRockfalls 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.

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

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

Each set is critically important to the reach the target…

The right mind set….

Doing the right things….

With the right support….

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

Inputs Outputs: Value Created

Research into Mining Health

and Safety issues

Clients /PartnersMining Industry, Mining Labour Unions, Department of Mineral Resources, Mining

Qualifications Authority, HEIs, research centres

Development and comment on

Legislation and Guidelines

Promote Culture of OHS in Mining

Industry

Liaison with other

organisations

Mine Health and Safety Data

OHS Levies

Improved standards of OHS in mining sector

Advice to the Minister regarding

Mine OHS

A centre of Mining OHS Knowledge

Skills and expertise

Coordination of Tripartite

arrangements

Attaining ZERO HARM

Supported by

Towards

Driven by

Attaining ZERO HARM

Thank you

Thank you

ZERO HARM – THE ULTIMATE

Documents

Mine Health and Safety Council