MHSC ANNUAL REPORT 2020

MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

CONTENTS

Part A: General Information ....................................................................................................................... 5 1.1 Public Entity’s General Information ........................................................................................................... 6 1.2 List of Abbreviations/Acronyms ................................................................................................................. 7 1.3. Terms and Definitions ............................................................................................................................... 9 1.4 Foreword by the Chairperson ..................................................................................................................10 1.5 Acting Chief Executive Officer’s Overview ...............................................................................................11 1.6 Statement of Responsibility and Confirmation of Accuracy for the Annual Report ..................................12 1.7 Strategic Overview ...................................................................................................................................13 1.8 Legislative and other Mandates ...............................................................................................................14 1.9 Organisational Structure ...........................................................................................................................15 Part B: Performance Information.. ..........................................................................................................17 2.1 Auditor’s Report: Predetermined Objectives ............................................................................................18 2.2 Situational Analysis ..................................................................................................................................18 2.3 Performance Information by Programme/Activity/Objective .....................................................................20 2.4 Revenue Collection ...................................................................................................................................29 Part C: Governance ......................................................................................................................................32 3.1 Introduction ...............................................................................................................................................32 3.2 Portfolio Committees ................................................................................................................................32 3.3 Executive Authority ...................................................................................................................................32 3.4 The Accounting Authority / Board .............................................................................................................33 3.5 Risk Management......................................................................................................................................34 3.6 Audit and Risk Committee and Attendance...............................................................................................37 3.7 Human Resource and Remuneration Committee Membership and Attendance.......................................38 3.8 Safety in mines research Advisory Committee Membership and Attendance ..........................................38 3.9 Culture Transformation and Committee and Attendance ..........................................................................40 3.10 Mining Regulation Advisory Committee and Attendance...........................................................................41 3.11 Mining Occupational Health Advisory Committee and Attendance.........................................................42 3.12 Mining Industry TB and HIV/AIDS Advisory Committee and Attendance..................................................43

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MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

CONTENTS CONTINUED

3.13 Remuneration of Board Members ............................................................................................................46 3.14 Internal Controls .......................................................................................................................................44 3.16 Compliance with Laws and Regulations ...................................................................................................45 3.17 Fraud and Corruption ...............................................................................................................................45 3.18 Minimising conflict of Interest ...................................................................................................................45 3.19 Code of Conduct ......................................................................................................................................45 3.20 Health Safety and Environmental Issues .................................................................................................46 3.21 B-BBEE Compliance Performance Information ........................................................................................38 3.22 Audit and Risk Committee Report ............................................................................................................38 Part D: Human Resource Management ................................................................................................49 4.1 Introduction ...............................................................................................................................................50 4.2 Workforce Planning Framework and key strategies to attract and recruit a skilled capable workforce .................................................................................................................................................................. 50 4.3 Employees Performance Management Framework .................................................................................50 4.4 Employee Wellness Programmes ...........................................................................................................51 4.5 Policy Development ................................................................................................................................. 51 4.6 Achievements .......................................................................................................................................... 51 4.7 Challenges ............................................................................................................................................... 51 4.8 Future HR Plans ...................................................................................................................................... 52 4.9 Employment and Vacancies ................................................................................................................... 52 4.10 Employment Changes ............................................................................................................................. 53 4.11 Reasons for Staff Leaving ....................................................................................................................... 53 4.12 Labour Relations: Misconduct and Disciplinary Action ............................................................................ 54 4.13 Equity Target and Employment Equity Status ..........................................................................................54 Part E: Financial Information ...................................................................................................................57 1. Report of the External Auditor ................................................................................................................. 59 2. Annual Financial Statements …………………………………………..........................................................65

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MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

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PART A: GENERAL INFORMATION

MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

1.1 PUBLIC ENTITY’S GENERAL INFORMATION

Registered Name:

Mine Health and Safety Council

Physical Address:

145 Western Service Road Western Wood Office Park B7, Maple Place Woodmead, Gauteng, South Africa

Postal Address:

Private Bag X11, Wendywood, 2144

Telephone Number/S:

+27 11 070 4200 +27 11 656 1797

Email Address:

communications@mhsc.org.za

Website Address:

www.mhsc.org.za

External Auditors:

Auditor General of South Africa

Bankers:

First National Bank (FNB) 2 First Place, 6 Floor, Cnr Jeppe & Simmonds Street, Bank City JHB

Company/ Board Secretary:

Not Applicable

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MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

1.2 LIST OF ABBREVIATIONS/ACRONYMS

4IR

the Fourth Industrial Revolution Auditor-General South Africa

AGSA AIDS

Acuired Immune Deficiency Syndrome

ARC ASB

Audit and Risk Committee Accounting Standards Board

ASPASA BBBEE

formerly Aggregate and Sand Producers Association of Southern Africa

Broad-Based Black Economic Empowerment

BBT BSC CEF CEO CFO CGO CGS CETM CHCO

Brief, Budget and Time Balanced Score Card Central Energy Fund Chief Executive Officer

Centre for Education and Training of Mineworkers

Chief Financial Officer

Corporate Governance Officer

Council for Geoscience

Chief Human Capital Officer

CSIR CIoM

Council for Scientific and Industrial Research

Chief Inspector of Mines Centre of Excellence

CoE CoP

Code of Practice

CROO CTAC DMRE

Chief Research Operations Officer

Culture Transformation Advisory Committee Department of Mineral Resources & Energy

DoH DoL FoG

Department of Health Department of Labour

Falls of Ground

GRAP GRC HATS

Generally Recognised Accounting Practice

Governance, Risk, and Compliance HIV/AIDS, TB, and Silicosis Human Immunodeficiency Virus

HIV HR

Human Resources

HRRAC

Human Resources and Remuneration Advisory Committee

ICT

Information Communication Technology

ICTSC

Information Communication Technology Steering Committee Information Communication Technology Steering Committee Charter

ICTSCC

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MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

Interpretation of the Standards of Generally Recognised Accounting Practice

IGRAP

IP

Intellectual Property Low Sulphur Diesel

LSD

Member of Executive Council MHSA Mine Health and Safety Act (No. 29 of 1996) as amended

MEC

MHSA MHSC MHSI

Mine Health and Safety Act (Act No. 29 of 1996)

Mine Health and Safety Council Mine Health and Safety Inspectorate Council for Mineral Technology

MINTEK MITHAC

Mining Industry TB, HIV and AIDS Advisory Committee

MoA

Memorandum of Agreement

MOHAC

Mining Occupational Health Advisory Committee Mining Industry Occupational Safety and Health Mining Occupational Safety Advisory Committee

MOSH

MOSAC

MoU

Memorandum of Understanding Missing Person Locater System Mining Qualifications Authority

MPLS MQA MRAC MTEF

Mining Regulations Advisory Committee Medium Term Expenditure Framework

NDP

National Development Plan

NEHAWU

National Education, Health and Allied Workers’ Union

NIHL NIOH OHN OHP OMP OHS PDTC PFMA PFMA PDS

Noise Induced Hearing Loss

National Institute of Occupational Health

Occupational Health Nurse

Occupational Health Practitioner Occupational Medical Practitioner Occupational Health and Safety

Proximity Detection System

Program Delivery Technical Committee

Public Finance Management Act

Public Finance Management Act (No. 1 of 1999) as amended

PPC PPE

Parliamentary Portfolio Committee Protective Personnel Equipment

RDTC

Research Determination Technical Committee

RODTC

Research Outcome Dissemination Technical Committee

TR

Treasury Regulations

SAMI

South African Mining Industry

SAMRASS

South African Mines Reportable Accident Statistical System

SANIRE

South African Institute of Rock Engineering

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SANS

South African National Standards Supply Chain Management Self-Contained Self-Rescuers

SCM

SCSRs SIMRAC

Safety in Mines Research Advisory Committee

SMME

Small, Medium, and Micro-Enterprises

STS

Standard Threshold Shift

TB

Tuberculosis

TTK

Technology Transfer and Knowledge Technology Innovation Agency

TIA

ULSD

Ultra-Low-Sulphur Diesel University of Pretoria

UP

WiM

Women in Mining

WIMAC

Women in Mining Advisory Committee

WITS WSP

University of the Witwatersrand

Workplace Skills Plan

1.3 TERMS AND DEFINITIONS

‘CHIEF INSPECTOR OF MINES’ means the officer appointed in terms of section 48(1) of the Mine Health and Safety Act as amended, and includes any officer acting in that capacity. ‘COUNCIL’ means the Accounting Authority of the Mine Health and Safety Council established in terms of section 41(1) of the Mine Health and Safety Act, 1996 as amended. ‘HAZARD’ means a source of, or exposure to danger. ‘HEALTH’ means occupational health at mines. ‘HEALTH HAZARD’ means any physical, chemical, or biological hazard to health including anything declared to be a health hazard by the Minister. ‘MINES’ means any excavation and activity where mineral deposits are mined; all buildings, structures, machinery, dumps, roads, or objects that are used during the winning, exploitation, and processing of a mineral. ‘MINISTER’ means the South African Minister of Mineral Resources and Energy. ‘OCCUPATIONAL HEALTH’ means occupational hygiene and occupational medicine. ‘OCCUPATIONAL HYGIENE’ means the anticipation, recognition, evaluation, and control of conditions at a mine that may cause illness or adverse health effects to persons. ‘OCCUPATIONAL MEDICINE’ means the prevention, diagnosis, and treatment of illness, injury, and adverse health effects associated with a particular type of work. ‘RESEARCH THRUST AREAS’ means research focus areas. ‘RISK’ means the likelihood that occupational injury or harm to persons will occur. ‘STRATEGIC OBJECTIVES’ means organisational outcomes that are critical to the achievement of the Mine Health and Safety Council’s mission for a period of three (3) to five (5) years.

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MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

It is my honour and pleasure to present on behalf of the Mine Health and Safety Council (MHSC), the annual report for the financial year ended 31st of March 2020 to the Minister of Mineral Resources and Energy, Mr Gwede Mantashe (MP), our Tripartite industry stakeholders, State, Organised Labour, Employers in the South African mining industry and other relevant stakeholders. The MHSC has once again received an unqualified audit opinion from the Auditor General South Africa. To further strengthen the MHSC’s governance controls, the MHSC has embarked on a King IV gap analysis and is establishing the Social and Ethics Committee (SEC). The MHSC continues to encourage Management and staff to pursue high levels of compliance with governance processes. The MHSC continued to implement programmes that assist the sector to ultimately achieve the goal 1.4 FOREWORD BY THE CHAIRPERSON

Mr. David Msiza Mine Health and Safety Council Chairperson

of Zero Harm. In this regard, the South African mining sector reported fifty-one (51) fatalities in 2019. This is the lowest ever number of fatalities on record. This represents a 37% reduction compared to 2018 when eighty-one (81) fatalities were recorded. Furthermore, the sector did not experience any mine disaster for the first time since 2016. Also, the lowest number of occupational disease were recorded during the same period. The MHSC will continue to collaborate with all the respective stakeholders to ensure that every mineworker returns from work unharmed every day. During March 2020 the President of the Republic, his Excellency Cyril Ramaphosa, in his address to the nation, announced the escalation of measures to combat COVID-19 epidemic. In support of the President’s decisive action, the MHSC developed the Guiding Principles as well as a Guideline for Compilation of a Mandatory Code of Practice on the mitigation and management of the COVID-19 outbreak. The MHSC also facilitated virtual question and answer sessions on various technology platforms where clarity on COVID - 19 guidelines was provided to the mining industry stakeholders. The MHSC also identified research initiatives to assist the mining industry to address COVID-19 related challenges such as testing capacity, physical distancing, and competencies to manage the pandemic. The MHSC continues to explore more ways to contribute to the global fight against the COVID19 pandemic. The health, safety and security of women in the SAMI continues to be of outmost importance to the MHSC. Hence, the MHSC successfully hosted the Women in Mining Indaba to engage on health and safety issues regarding women in South Africa. As part of the implementation of the Indaba outcomes, the MHSC has introduced two new committees being Women in Mining Advisory Committee (WIMAC) and the Mining Occupational Safety Advisory Committee (MOSAC). I wish to extend a warm welcome to the new committee members in their role. In order to address challenges relating to the improvement of training for mineworkers in the SA mining industry, the MHSC has established the Centre for Education and Training of Mineworkers (CETM). The CETM is a committee made up of identified stakeholders in the SAMI including the Mining Qualifications Authority (MQA). One of the key objectives of the CETM is to assist with the packaging and development of training material emanating from MHSC research outcomes. During the financial year that ended on the 31st of March 2020, ninety- four percent (94%) of the levies were collected against the target of ninety percent (90%) as compared to ninety-five (95%) in the previous financial year. The expenditure variance was sixteen percent (16%) against a target variance of five percent (5%). The variance is attributed to vacancies, cancellation of events and late delivery due to researchers not being able to access the mines. I wish to extend my gratitude to the Honourable Minister of Mineral Resources and Energy for the continued leadership, guidance and support. I also extend my gratitude to the Parliament Portfolio Committee on Mineral Resources and Energy for their continued support, commitment, oversight and guidance. I would also like to extend my sincere thanks to all the Council members for executing their fiduciary responsibilities, Council Advisory Committees for their consistent support, Internal and External Auditors for their independent assurance. My appreciation also goes to the MHSC Executives and Staff for their performance and providing necessary support to all structures of MHSC and stakeholders.

Mr. D. Msiza Chairperson of Council

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MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

During 2019/20 financial year, the MHSC focused on providing administrative support to the Advisory Committees of Council by implementing programmes within its operations to support the goal of Zero Harm to mineworkers. The programmes included the implementation of the revised 2018 Summit Action Plan to drive the improvement of Occupational Health and Safety (OHS) in the South African Mining Industry (SAMI). The programmes were implemented in collaboration with identified strategic partners concerned with OHS and developments of initiatives aligned with the Strategic Plan of the MHSC. With the renewed focus on improvement of Governance, Risk 1.5 ACTING CHIEF EXECUTIVE OFFICER’S OVERVIEW

Mrs. Nkhesani Masekoa Acting Chief Executive Officer

and Compliance, the MHSC has resuscitated the compliance monitoring function. The function which is within the Governance, Risk and Compliance Unit has brought much needed expertise and monitoring processes throughout the MHSC. Though the MHSC received an unqualified audit opinion in the 2019/20 financial year, the matters of concern raised by the Auditor General South Africa (AGSA) will be addressed by management by putting together an audit action plan which will be implemented under the guidance of the Audit and Risk Committee (ARC). The MHSC is optimistic that the SAMI will continue with its support of the entity, regardless of the decline of the economy and the impact of COVID 19. The process to transfer Kloppersbos Facility to the MHSC has been initiated with the aim of enhancing MHSC internal research capacity. The Facility is one of two in the world and has tremendous potential which the MHSC is intending to exploit by upgrading the facility, increasing its service officering and augmenting the marketing and branding initiatives to ensure there is a wider reach of potential clientele. National Treasury approved the rollover of surplus funds for the year 2019/20 financial year ear marked for the purchase of MHSC administrative office building and seed funding for Centre of Excellence projects. The MHSC has again over achieved on the target of levy collection resulting in an over achievement of 94% against the planed 90% collection. The MHSC is introducing a new levy model which has been piloted and embraced by the mining industry based on the responses received thus far. It is also befitting that on behalf of management we express our sincere gratitude to the MHSC staff, the Tripartite Stakeholders, SAMI, Research partners and governance structures. We would have never achieved what we did without their tireless efforts. We also want to express our deepest gratitude to our Council (the Board) for their continued guidance. MHSC Annual financial statements were prepared on the going concern basis and assumes that the entity will continue to operate in the foreseeable future. Yours faithfully

Mrs. Nkhesani Masekoa Acting Chief Executive Officer

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MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

1.6 STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT To the best of my knowledge and belief, I confirm the following: All information and amounts disclosed in the annual report is consistent with the Annual Financial Statements (AGSA) audited by the Auditor General. The annual report is complete, accurate, and is free from any omissions. The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury. The Annual Financial Statements (Part E) have been prepared in accordance with the Generally Recognised Accounting Principles (GRAP) standards applicable to the public entity. The accounting authority is responsible for the preparation of the annual financial statements and for the judgements made in this information. The accounting authority is responsible for establishing, and implementing a system of internal control has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information, and the annual financial statements. The external auditors are engaged to express an independent opinion on the annual financial statements. In our opinion, the annual report fairly reflects the operations, the performance information, the human resources information, and the financial affairs of the public entity for the financial year ended 31 March 2020. Yours faithfully

Mrs. Nkhesani Masekoa Acting Chief Executive Officer

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MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

CSMH 1.7 STRATEGIC OVERVIEW Vision

The Mine Health and Safety Council has a vision to be the first port of call for OHS issues within the South African Mining Industry, and to be the knowledge leader and trusted advisor to the Minister of Mineral Resources and Energy and stakeholders on Occupational Health and Safety matters. Mission The MHSC’s mission is to promote a culture of occupational health and safety in the mining industry by providing advice to the Minister of Mineral Resources as per the mandate, and creating and disseminating information on leading practices in the mining industry. Goals The MHSC and its Tripartite stakeholders work towards achieving the goal of Zero Harm and to ensure that ‘every mine worker returns from work unharmed every day’ . These goals give direction to where the organisation is going. Values The MHSC prides itself on a set of shared values that inform and guide the interaction between employees, stakeholders, and the mining industry at large. The acronym “PRIDE” represent MHSC core values. Professionalism – Professional approach in all our business dealings and interpersonal relationships. Respect – Respect each other and value diversity in ideas, work style, background, and skills. Integrity – Integrity, honesty, and ethical approach in everything we do. Delivery – Delivery and results-driven culture through constructive feedback and continuous improvement. Excellence – Excellence and efficiency in the way we deliver on the mandate.

SOUTH AFRICAN MINING INDUSTRY

JOURNEYTO ZERO HARM

2003 - 2013

Picture 1: Books highlighting MHSC’s Journey to Zero Harm.

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MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

1.8 LEGISLATIVE AND OTHER MANDATES

MHSC was established in terms of the Mine Health and Safety Act (Act No. 29 of 1996) as amended. The MHSC is listed as a schedule 3A Public Entity in terms of the Public Finance Management Act (Act No. 1 of 1999) as amended. The mandate of the Mine Health and Safety Council is derived from section 43 of the Mine Health and Safety Act No. 29 of 1996 as amended, which states that the MHSC must: (a) advise the Minister on health and safety at mines including, but not limited to, any legislation on mine rehabilitation in so far as it concerns health and safety; (b) co-ordinate the activities of its committees, receive reports from the committees, and liaise with the Mining Qualifications Authority on matters relating to health and safety; (c) liaise with any other statutory bodies concerned with matters relating to health and safety; (d) promote a culture of health and safety in the mining industry; (e) at least once every two years arrange and co-ordinate a tripartite summit to review the state of health and safety at mines; and (f) annually advise the Minister on relevant research relating to health and safety at mines.

Mine Health and Safety Act No. 29 of 1996 and Regulations

Picture 3: Mine Health and Safety Act

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MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

1.9 MHSC ORGANISATIONAL STRUCTURE

COUNCIL

ARC

HRRAC

SIMRAC

MOHAC MITHAC

CTAC

MRAC MOSAC WIMAC

MITHAC

CoE

CEO MHSC OFFICE Thabo Dube

CoE PDTC

CoE RDTC

CoE RODTC

Chief Researcher Operations O cer Mrs N. Masekoa

Chief Human Capital O cer Vacant

Corporate Governance O cer Mrs P. Mvana

Chief Financial O cer Vacant

ICT Manager Mr M. Fenyane

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PART B: PERFORMANCE INFORMATION

MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

2.1 AUDITOR’S REPORT: PREDETERMINED OBJECTIVES

The Auditor General South Africa currently performs the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report. Refer to page 79 of the Report of the Auditors Report, published as Part E: Financial Information.

2.2 SITUATIONAL ANALYSIS

2.2.1 Service Delivery Environment The MHSC faced major challenges in the area of human resources at a strategic level during 2019/20 with the resignations of the Chief Financial Officer and the Chief Human Capital Officer. There were other vacancies with the Research Unit which is the core of the MHSC. In some areas employees were identified to act in the positions and in some instances for longer than anticipated due to challenges in filling the vacancies. Due to the level of the vacant positions and also the technical nature of some of the positions there were several instances where the recruitment processes failed to secure the suitable incumbents. The organisational performance has unfortunately declined from the 98% during 2018/19 financial year to 84% in the 2019/20 financial year. The occurance of COVID 19 provided the MHSC with an additional challenge and opportunity. The challenge of addressing COVID 19 has resulted in the need for the review of the Annual Performance Plan for the 2020/21 financial year, which has been approved by Council. The opportunity for the MHSC arises as a result of the ability to return to previously completed research and utilising the studies to address COVID within the SAMI. This opportunity will see the MHSC able to enhance the implementation of its mandate and brand awareness. 2.2.2 Organisational environment The MHSC faced major challenges due to capacity constraints at the helm of the organisation with a vacancy of the Chief Financial Officer and the Chief Human Capitol Officer. Whilst there were acting incumbents in the positions, the performance of the organisation was negatively impacted. The recruitment processes were expedited and the The world and South Africa faced the challenge of COVID 19 during the last quarter of the financial year. The government introduced a number of regulations to address the pandemic, which had an impact on the achievement of the mandate of the MHSC in the last quarter. Regulations issued in terms of Section 27(2) of the Disaster Management Act COVID 19 has been identified as an emerging risk to the MHSC and will be fully analysed for the identification of mitigation actions during the MHSC Strategic risk profile review during April 2020. The initial assessment primarily focused on the operational environment and the mitigations are being implemented in line with the approval by Council. Public Finance Management Act, 1999: Exemption from Act and Regulations (Gazette 43188) The following was key from the gazette and communicated to all relevant MHSC officials: “Due to the national lockdown, institution are exempted, for the 2019/2020 financial year, from complying with the deadlines in— (a) sections 8(1)(b), 8(5), 19(1)(b), 19(5), 40(1)(c), 40(1)(d), 55(1)(c), 55(1)(d) and 65(2) of the Act meaning that submissions be made one month after the deadline in the applicable provision, which is now end of May 2020”. expectation is for the two executives to join the MHSC from April 2020. 2.2.3 Key policy developments and legislative changes

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Draft Procurement Bill On the 19th of February 2020, The draft Public Procurement Bill, 2020 (“the draft Bill “) was published for public comment. The draft Bill aims to create a single regulatory framework for public procurement and eliminate fragmentation in laws, which deal with public sector procurement by, among others, providing for - (a) General procurement requirements; (b) An enabling framework for preferential procurement; (c) A Public Procurement Regulator within the National Treasury and its functions; (d) The functions of provincial treasuries;

(e) Measures to ensure the integrity of the procurement process; (f) The power to prescribe different methods of procurement; (g) Framework for supply chain management;

(h) Infrastructure delivery management; (i) A framework on the disposal of assets; (j) Dispute resolution mechanisms; and (k) The repeal and amendment of certain laws 2.2.4 Strategic Outcome Oriented Goals To achieve Zero Harm to employees and communities as a result of mining activities. Providing knowledge leadership in mining Occupational Health and Safety.

Picture 3 : Culture Transformation Framework (CTF)

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MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

2.3 PERFORMANCE INFORMATION BY OBJECTIVE The MHSC has adopted a Balanced Scorecard (BSC) approach to its performance measurement. The balanced scorecard system, which measures the performance of the MHSC at corporate, business unit, and individual level was approved by the Council. During the 2019/20 financial year, the MHSC has achieved an overall performance of 80% as indicated in table below Table 1: Performance overview of the MHSC for 2019/20 financial year

Strategic Objective

Weight

Target

Actual

Status

1. CP01 – Provide advice to the Minister of Mineral Resources on occupational health and safety matters in the South African Mining Industry and on health and safety issues affecting communities because of mining activities. 2. CP02 - Collaborate with identified strategic partners concerned with matters relating to health and safety. 3. CP03 - Promote a culture of health and safety in the mining industry. 5. IP02 - Create the first port of call on all mining OHS matters within the South African mining industry through OHS knowledge hub. 6. LG01 - Ensure best HR management practices that will support the achievement of a highly skilled, motivated and capable governance arrangement and workforce, Council and all MHSC Advisory Committees. 4. IP01 - Review the state of health and safety at mines.

Not Achieved

20% 100% 81%

Not Achieved Not Achieved Not Achieved Not Achieved

10% 90% 85%

20% 100% 90%

10% 100% 75%

10% 90% 44%

Not Achieved

10% 100% 72%

10% 90% 94% Achieved

7. FP01 - Ensure financial sustainability of MHSC.

Not Achieved

10%

5%

16%

8. FP02 - Ensure efficient and effective financial management.

Legend

If the performance ≥ than planned target then it is considered as ACHIEVED

If the performance is < planned target then it is considered as NOT ACHIEVED

Figure 4: Legend for Performance Rating The details against each of the objectives is provided below for each objective.

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MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

Name of the Objective (CP01): Provide advice to the Minister of Mineral Resources on occupational health and safety matters in the South African Mining Industry and on health and safety issues affecting communities because of mining activities. Definition: Delivery against MHSC Mandate and Mine Health and Safety Tripartite including implementation of the Summit Action Plan. Primary Measure: Percentage of achievement of initiatives Target for the Year: 100% Actual: 81% % of target achieved: 81% Status: Not Achieved Initiative 1: Develop and submit four (4) Legislative Advisory Notes to the Minister. The following legislative advisory notes were submitted to the Minister: (a) Guideline for compilation of a mandatory code of practice for the management of working in confined spaces at times. (b) Illumination Guidelines for Equipment Operating in the South African Mining Industry. (c) Protection of Surface and the Workings Regulations (Chapter 14). (d) Chapter 3 regulations dealing with electricity. Initiative 2: Develop and submit a Legislative Advise Programme of the following financial year to the Minister • Council developed and submitted the Legislative Advice Programme, outlining key regulations which Council will review or develop in the following financial year to the Minister. Initiative 3: Develop and submit four (4) Advisory Notes on OHS from COE to the Minister. The following advisory notes on OHS from CoE were submitted to the Minister: (a) Advisory Note on the Assess the Feasibility of Reducing Diesel Particulate Matter (DPM) Exposure. (b) Adverse Health Impacts Associated with Dust Emissions from Mine Tailings. (c) A dvisory note on “a situational analysis for Occupational Health Practitioners with specific reference to Section 12(1) and 13(3) of the MHSA on the applicable ratio to service mines in order to make a meaningful impact to the improvement of Occupational Health in the SAMI”. (d) Advisory Note on the Advisory Note on the Guideline for the Compilation of a Mandatory Code of Practice for the Prevention of Flammable Gas Explosions in Mines other than Coal Mines. (c) Advisory Note on the Guidance Note for the Management and Control of HIV in the South African Mining Industry. (d) Advisory Note on the Guidance Note for the Management of Latent TB in the South African Mining Industry. Initiative 5: Develop and submit OHS Research Programme of the following financial year to the Minister. • The advisory note on OHS Research Programme of the following financial year was submitted to the Minister for approval. Initiative 6: Develop an implementation programme for Advisory Notes approved by the Minister. • Research outcome implementation plan developed and approved by Council. Initiative 7: Develop A Guidelines with Minimum Standards to address health and safety implications on mining rehabilitation. • The initiative was not implemented during the current financial year. The MHSC will still continue with the development of the guidelines during the next financial year for the SAMI as it is still required. In order to expedite the process of research that is required for the development of the rehabilitation guidelines, the MHSC will utilise CoE partners. Reasons for Variance • There were delays experienced in development of the guidelines due to capacity challenges within the CoE. The plan was to develop the guidelines internally but upon realisation of the above challenges the process of seeking a service provider started late, therefore there was no delivery. Initiative 4: Develop and submit four (4) OHS policies to the Minister. The following advisory notes on OHS policies were submitted to the Minister: (a) Use of 3HP for the treatment of and prevention of latent TB infection. (b) Advisory Note on the Alignment of TB and HIV Industry Data to the National Strategic Plan (NSP).

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MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

Name of the Objective (CP01): Provide advice to the Minister of Mineral Resources on occupational health and safety matters in the South African Mining Industry and on health and safety issues affecting communities because of mining activities. Definition: Delivery against MHSC Mandate and Mine Health and Safety Tripartite including implementation of the Summit Action Plan. Initiative 8: Implement the Communication and Engagement Framework with the Minister. • MHSC communication and engagement framework with the Ministry (Minister and Deputy Minister) was approved by Council in July 2019. • Due to the challenges encountered, engagements with Ministry were conducted in third and fourth quarter. Reasons for Variance • The document was in development and the development warranted engagements with stakeholders in finalising the document for approval. Name of the Objective (CP02): Collaborate with identified strategic partners concerned with matters relating to health and safety. Definition: Foster collaboration and establish strategic partnerships where MHSC can leverage on expertise, resources, and infrastructure as part of discharging of MHSC mandate relating to OHS. Primary Measure: Initiative 1: Develop an Implementation Plan on collaborations with strategic partners.. • The Implementation Plan on collaborations with Strategic Partners was developed and approved by Council in July 2019. Initiative 2: Implement the collaboration plan with strategic partners. • The MHSC has identified 5 strategic partners and signed MOUs for collaboration on OHS matters, which are MQA, MOSH, TIA, Masoyise iTB and SANAC for the 2019/20 financial year. • The following initiatives were completed with the partners: Strategic Partner Scope of Engagement Initiatives MQA Collaboration on OHS training form research outcomes in the South African mining industry · Identify research projects with training initiatives. · Development of TORS for the committee. · Quarterly meeting to review progress. · Appointment of committee members. Percentage of achievement of initiatives Target for the Year: 90% Actual: 85% Variance: 5% % of target achieved: 94% Status: Not Achieved

TIA

Technology Transfer and Innovation on OHS research

· Engage on building a portfolio of technology- based projects that will be managed by both TIA and MHSC and develop a programme for implementation. · Facilitate implementation and adoption of OHS leading practices from research outcomes. · Collaborate on development of technology transfer materials. · Identification of research needs. · Align indicators of DMR 164 HIV and AIDS reporting with NSP and global indicators.

MOSH

Shared initiatives on projects for adoption of leading practices

SANAC

Alignment of HIV and TB programmes and policies for the SAMI with NSP

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“EVERY MINE WORKER RETURNING FROM WORK UNHARMED EVERYDAY”

MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

Masoyise iTB

Promote Implementation of HIV and TB programmes and measure progress

· Provide Quarterly updates and information on the activities and outcomes of Masoyise iTB and MITHAC. · Assist MITHAC with the identification, development, validation, testing and dissemination of knowledge and technology transfer opportunities from its activities. · Collaborate on promotional events.

The following initiatives were completed with the partners:

Name of the Objective (CP02): Collaborate with identified strategic partners concerned with matters relating to health and safety. Definition: Foster collaboration and establish strategic partnerships where MHSC can leverage on expertise, resources, and infrastructure as part of discharging of MHSC mandate relating to OHS.

Strategic Partner

Scope of Engagement

Initiatives

SANAC

•

Alignment of HIV and TB programmes and policies for the SAMI with NSP •

Facilitate implementation of HIV and TB programmes in mines through targeted campaigns. • Analyse data on the implementation of the 90-90-90 strategy and provide interventions on identified gaps. Have frequent engagements to share Transports and Machinery related research outcomes to influence the OEM industry and for dissemination purposes.

Sharing of Transports and Machinery related research outcomes to influence the OEM industry • Formation of spin-off companies to be incubated for business support, access to markets and further funding opportunities Facilitation of commercialisation activities

MEMSA

•

• Form of spin-offs, licence partnerships that will need incubation services.

TIH and Incubators

•

IDC Private commercial Partners

•

• Presentation of research projects that are commercially ready and need access to markets and funding for commercial activities.

•

Access to markets

Reasons for Variance • Due to the COVID 19 pandemic the meetings had to be postponed as different the stakeholders within the SAMI had to priorities the measures/strategies that needed to be put in place in their respective workplaces in managing COVID 19.

MHSC partnering with EXXARO Mine in Mpumalanga for World TB Day Commemoration 2019. Picture 3 and 4: Testing and Counselling made available Mine employees, their families and surrounding communities.

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“EVERY MINE WORKER RETURNING FROM WORK UNHARMED EVERYDAY”

MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

Name of the Objective (CP03): Promote a culture of Occupational Health and Safety. Definition: Promote the culture of health and safety at mines through implementation of CTF pillars.

Primary Measure: Percentage of achievement of initiatives

% of target achieved: 90%

Status: Not Achieved

Target for the Year: 100%

Actual: 90%

Variance: 10%

Initiative 1: Review Communication and Stakeholder Management Strategy for approval by Council. • The MHSC strategy was reviewed and will be presented in the next Council meeting. Initiative 2: Implement the approved Communication and Stakeholder Management Strategy. • The following activities were implemented as per the approved Promotion and Dissemination Strategy:

(a) Be active on social networks; (b) Health and Safety Awareness; (c) Coal Safe Conference; (d) AIDS Conference;

(e) Quarterly MHSC Magazine; (f) Quarterly MHSC Newsletter; (g) Quarterly CoE Newsletter; (h) Theme based Dissemination collateral; (i) Women in Mining (WiM) workshop; (j) Mine Safe Conference; and (k) Investing in Africa Mining Indaba. • The following activities as per the approved Promotion and Dissemination Strategy were not implemented: (a) Commemoration of mining disaster; (b) Mini summits; (c) TB awareness; and (d) MHSC HIV/AIDS Awareness Event. Reasons for Variance • The hosting of the mini summits was postponed indefinitely as they require Ministerial availability. Minister approval and guidance is a prerequisite for organising and hosting such events. • The Pier Net and Outsourcing of Health Centres Workshops had to be postponed due to the risk of transmission of Covid-19. • World TB day was scheduled to take place on the 27th of March 2020 at Doornkop Harmony Mine with 4500 workers but was postponed due to the risk of Covid-19 transmission. Initiative 3: Develop a Promotion and Dissemination Strategy and Plan in line with the Culture Transformation Framework.. • The Promotion and Dissemination Strategy and Plan was developed and approved by Council in March 2019. Initiative 4: Implement the approved Promotion and Dissemination Strategy and Plan. • For the current year under review, seventeen (17) of the twenty-seven (27) dissemination initiatives were implemented whilst ten (10) were not implemented. Initiative 5: Conduct a customer satisfaction survey. • The customer satisfaction survey has been concluded. Initiative 6: Conduct an impact assessment of the role of the MHSC within the South African Mining Industry. • Impact assessment survey 2019/20 has been concluded.

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“EVERY MINE WORKER RETURNING FROM WORK UNHARMED EVERYDAY”

MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

Name of the Objective (IP01): Review the state of health and safety at mines. Definition: Assess OHS trends, disasters, and review the status of milestones implementation.

Target for the Year: 100%

Actual: 75%

Variance: 25%

% of target achieved: 75%

Status: Not Achieved

Primary Measure: Percentage of achievement of initiatives

Initiative 1: Conduct quarterly reviews of health and safety performance (including the leading and lagging indicators). • In order to establish the OHS trends and major causes of injuries, fatalities, and occupational diseases, quarterly reviews and analysis of health and safety performance (including the leading and lagging) were conducted, with the main point of reference being the DMRE’s quarterly health and safety statistics. • The analysis informed the development of advice to outline suggested interventions to address how the identified problematic areas. The analysis indicated that there is still an increase in the number of occupational diseases like Silicosis, Noise Induced Hearing Loss (NIHL), Coal workers Pneumoconiosis, Occupational skin disease, and musculoskeletal disorders. • From a safety perspective, Falls of Ground (FoGs) remains the highest cause of fatalities followed by Trackless Mobile Machinery(TMM) and Rail Bound Equipment. Initiative 2: Provide quarterly Advisory Notes on relevant interventions to improve OHS in the mining industry. • Advisory notes were developed for submission to Council on the review of OHS performance in the mining industry. In response to the state of affairs in OHS performance and compliance in the SAMI, the MHSC has commissioned a number of initiatives to address the identified agencies as amongst others as mentioned below: ◊ A review of completed research work, particularly in the areas of the identified emerging diseases need to be conducted and promotional material from these be developed for dissemination in the SAMI. ◊ Emerging occupational diseases, such as musculoskeletal disorders and occupational skin diseases, need to be reviewed. ◊ The MHSC in partnership with mines will continue to collaborate during their health and safety days to raise awareness on the “silly season”, where people’s minds are not fully focused on work as people prepare for the long break. Initiative 3: Implement Summit Milestones • Reports were submitted to Council on a quarterly basis highlighting progress on the implementation of the 2014 OHS Summit milestones, progress on the implementation of initiatives from the 2016 Principals Pledged and the progress on the 2018 OHS Summit action plan. While these reports were submitted consistently as provided for in the annual performance plan, a number of opportunities for improvement in the implementation were identified. • During the piloting phase of the milestone reporting portal, areas of improvement were identified. Subsequently, a new service provider was sourced. MOHAC/ MITHAC raised concerns on the Occupational Hygiene (OH) and the Occupational Medicine (OM) reporting templates of the portal. The committees advised that the amended templates be piloted by 2 mining houses who have volunteered for the pilot, following the success of which the use of the templates for capturing will be rolled out across the country. Due to these developments, only the reporting of the milestones for the implementation of the pillars of the CTF prioritised for 100% implementation by December 2020 were captured. Reasons for Variance • The Milestones data could not be collected during the first and second quarter because the process to appoint the service provider was still underway. The MHSC had a contract with a service provider to maintain the reporting system and has since expired. • The initial bid to acquire a new service provider to take over the system from the previous service provider was non- responsive and the service provider was appointed during the second procurement process.

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“EVERY MINE WORKER RETURNING FROM WORK UNHARMED EVERYDAY”