Ms. M. HermanusChief Inspector of Mines

Department of Minerals and Energy South Africa

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Discussion TopicsIntroductionKey developments in the SectorOHS performance of the Sector MHSI profileMHSI Strategic Objectives/PlanMHSI activitiesChallengesWay ForwardConclusion

3

Introduction

MHSA requires CIOM to prepare an Annual Report on:

The state of health and safety at minesActivities of the Inspectorate

The report focuses on;Sector’s OHS PerformanceMHSI’s performance against stratplan targets

Employers responsible for OHS at minesMHSI enforce, oversee and promote

4

Key developments

Industry StructureLarge corporations dominate (support performance rather than prescriptive standards)Junior, small and artisanal mining emerging (need more guidance)Older gold mines owners not well resourced

Mining OperationsU/G mines (approaching 4km, deepest in the world)Open cast/pitOff-shore mining

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The Minerals Industry (cont.)

Structural changes affecting MHSI Inter-mining / district level risks emerging e.g. water and seismicityGrowing mechanisation of platinum minesCapacity of mature mines to maintain OHS systemsCapacity of small mines to operate safelyAdministrative workload more than doubled

Employees estimated (2004): 440 000JSE market capitalisation: 30% Effect of HIV and AIDsIntegration of OHS agencies

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OHS Performance Occupational health

Data collection and analysis a concernControl at source a major challengeBest practice / benchmark info starting to emergeMore visible committments to addressing health

Occupational SafetyFatality rates improving steadily but not fast enough Injury data available for serious accidents (>14 days)Databases to capture all accident data still awaited

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Safety Performance Major Commodities Contribution

Production, 2004 Employment, 2004Total 441 600

Fatal %Total: 246

Rep. Injury%Total: 4254

Gold 287tR29.3b

176 833

40% 45% 67%

PGM’s 342tR33.3b

140 287

32% 26% 21%

CoalR27.8b

47 567 11% 8% 4%

Diamonds

14m caratsR1.1b

18 624 4% 6% 6%

8

RSAMain commodities

Fatality rates per million hours worked

Jan 2003 - July 2005

-0.1

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Other mines 0.16 0.17 0 0.19 0.19 0.21 0.19 0.19 0.17 0.22 0.22 0.22 0.19 0.19 0.20 0.19 0.21 0.24 0.23 0.25 0.23 0.23 0.25 0.31 0.29 0.29 0.28 0.26 0.25 0.27 0.26

Gold 0.45 0.46 0.44 0.44 0.44 0.42 0.41 0.42 0.4 0.4 0.39 0.38 0.37 0.36 0.35 0.34 0.35 0.34 0.33 0.33 0.31 0.30 0.30 0.28 0.27 0.28 0.29 0.27 0.28 0.27 0.28

Platinum 0.25 0.27 0.27 0.28 0.29 0.29 0.28 0.28 0.29 0.3 0.29 0.28 0.24 0.23 0.23 0.22 0.22 0.23 0.22 0.23 0.27 0.27 0.26 0.26 0.19 0.19 0.18 0.18 0.18 0.17 0.18

Coal 0.18 0.18 0.17 0.17 0.16 0.18 0.18 0.19 0.21 0.19 0.2 0.23 0.19 0.2 0.19 0.2 0.18 0.18 0.18 0.18 0.18 0.20 0.20 0.19 0.18 0.16 0.15 0.15 0.14 0.13 0.13

Diamonds 0.7 0.64 0.58 0.6 0.54 0.48 0.53 0.5 0.46 0.55 0.45 0.42 0.35 0.34 0.36 0.36 0.33 0.32 0.34 0.36 0.40 0.40 0.36 0.36 0.39 0.36 0.33 0.3 0.32 0.29 0.26

0.16 0.17 0 0.19 0.19 0.21 0.19 0.19 0.17 0.22 0.22 0.22 0.19 0.19 0.20 0.19 0.21 0.24 0.23 0.25 0.23 0.23 0.25 0.31 0.29 0.29 0.28 0.26 0.25 0.27 0.26

03 JAN

FE MA AP MA JN JL AU SE OC NO DE 04 JAN

FE MA AP MA JN JL AU SE OC NO DE 05 JAN

FE MA AP MA JN JL

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Performance Comparison per Major Commodity-

FatalitiesActuals %

Impr/Regr(-)

Freq. Rates % Impr/Regr(-)

Comment

2003 2004 2003 2004

Gold 149 110 16 0.82 0.62 24 Improved

Pt 58 64 -10 0.52 0.46 12 Improved but not consistent

Coal 23 20 15 0.47 0.42 11 Improved

Diam 15 14 7 0.84 0.75 11 improved

TotalTotal 270270 246246 99 0.650.65 0.560.56 1414

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All mines Fatalities per classification 2004 (*2003)

Machinery6% (*4%)

Conveyance accidents2% (*1%)

General24% (*17%)

Transportation and mining22% (*19%)

Falls of ground40% (*49%)

Miscellaneous2%

Explosives1%

Electricity3%

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RSA Main commodities

Injury rates per million hours worked Jan 2003 - July 2005

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Gold 8.30 8.15 8.04 8.16 8.19 8.07 7.99 8.17 7.99 7.90 7.93 7.79 7.67 7.68 7.79 7.73 7.7 7.7 7.467.487.317.277.167.147.127.026.856.696.576.486.40

Platinum 3.36 3.34 3.29 3.25 3.26 3.28 3.27 3.26 3.40 3.51 3.66 3.56 3.09 3.17 3.23 3.21 3.353.283.483.423.523.663.613.622.943.033.163.123.183.133.12

Other mines 2.33 2.32 2.28 2.23 2.25 2.23 2.25 2.23 2.12 2.31 2.13 2.05 1.81 1.891.971.942.062.042.062.031.981.961.952.011.951.982.07 2.1 2.1 2.051.99

Coal 1.61 1.56 1.55 1.53 1.52 1.65 1.70 1.69 1.71 1.71 1.78 1.85 1.69 1.67 1.69 1.701.661.601.621.621.641.701.691.741.831.791.791.741.731.741.70

Diamonds 2.28 2.25 2.11 2.16 2.08 2.11 1.94 1.91 1.94 1.94 1.86 1.72 1.51 1.61 1.7 1.6 1.63 1.61 1.58 1.61 1.61 1.66 1.63 1.7 1.6 1.9 1.9 1.8 1.7 1.8 1.7

03 JAN

FE MA AP MA JN JL AU SE OC NO DE04 JAN

FE MA AP MA JN JL AU SE OC NO DE05 JAN

FE MA AP MA JN JL

12

Performance Comparison per Major Commodity-

InjuriesActuals %

Impr/Regr(-)

Freq. Rates % Impr/Regr(-)

Comment

2003 2004 2003 2004

Gold 3 079 2 861 7 16.94 16.18 4 Improved

Pt 738 892 -21 6.60 6.36 4 Improved but inconsistent

Coal 188 187 1 3.84 3.93 -2 deterioration

Diam 61 65 -7 3.43 3.49 -2 deterioration

TotalTotal 43014301 42544254 11 10.310.322

9.639.63 77 Slow improvement

0

25

50

75

100

125

150

175

200

225

250

Ra

te/1

00

0 a

uto

ps

ies

Year

Silicosis TB

Silica Exposure

Exposure Data

Commodity

2004% Persons Employed Exposed to an

AQI 1.0

Number of Persons

Employed in Mining

Industry

Number of Persons Occupationally Exposed as per Returns (% of

persons Employed)

Number of Persons

Exposed as per Returns to

an AQI 1.0

% Persons Exposed to an

AQI 1.0 as per Returns

2004 2003 2002 2001 2000

Gold 176 833 80 802 (45.7%) 6 528 8.08 3.69 4.81 4.75 6.65 6.62

Platinum 140 287 35 662 (25.4%) 5 865 16.45 4.18 7.0 0.17 0 1.03

Coal 47 567 15 230 (32.0%) 4 618 30.32 9.71 12.1 19.83 28.92 30.94

Other Mines

76 925 64 717 (84.1%) 5 853 9.04 7.61 8.46 6.46 4.4 4.23

TOTAL 441 612 196 411 (44.5) 22 864 11.64 5.18 6.9 5.66 6.94 8.52

Compensation Trends – Respiratory Diseases

MINERAL

JANUARY – DECEMBER JANUARY – DECEMBEROCTOBER 2001 – SEPTEMBER 2002

2004 2003

CompensationPaid

Number of Cases

CompensationPaid

Number of Cases

CompensationPaid

Number of Cases

GOLD R 38,351,411 997 R 59,273,643 2 168 R 54,471,353 2 204

PLATINUM R 2,259,390 84 R 2,242,372 109 R 2,013.757 51

COAL R 1,537,428 55 R 1,594,567 58 R 2,154,813 58

ASBESTOS R 5,854,101 207 R 12,432,567 3 486 R 4,089,912 167

OTHER MINES

R 3,659,398 126 R 3,353,142 117 R 4,221,994 119

TOTAL R 51,661,728 1 469 R 78,996,237 5,938 R 66,951,828 2599

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Compensation Trends - Noise

YEAR NUMBER OF CASES COMPENSATION PAID

2004 3 849 R77,067,521

2003 7 241 R52 213 637

2002 14 457 R102 308 555

2001 5 654 R 88 259 410

2000 4 965 R65 004 865

1999 6 106 R72 321 385

1998 5 395 R68 113 616

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The Regulator: The MHSILegislative Mandate (MHSA)

Regulate health and safety in the minerals sectorPromote health and safety at minesSafeguard the health and safety of employees and communities affected by mining

ProfilePosts 315 Vacancies 42Demographics

Male 199Female 74

Whites 124Africans 137Coloured 9Indians 3

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MHSI Strategic Objectives

To reduce injuries and ill health Develop Policy and Legislation for effective regulation of the sectorProvide advice and systems that monitor complianceTo improve access to informationSupport Crosscutting initiatives-SMME, HIV andAIDS, etc.

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Activity Report – Policy etc

Policy, Legislation and ManagementDevelopment of policy and legislation

875 from 922 projects finalised-95% mainly mine equipment legislation outstandingKey policy issue – registration and licences to practiceInternal Guidelines for MHSI in development

Improving the MHSI capacity and operationsRestructuring implementation plan rolling outOperational improvements underway

Information ManagementCurrent databases maintained, improvements depend of IT inputsReports made available on www.

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Activities – Regional Operations

Regional OfficesAudits- 3 311 conducted v/s 4190 planned: 1% shortfall from the 80% targetInspections-11 380 conducted v/s 12 980 planned: 8% above the 80% targetInvestigations-78% completed on timeInquiries-83% completed on timeStatutory Notices:

Halt operations (Sect.54)-3 900Order compliance to H&S reqts(Sect.55)-1 731Shafts Stopped-60Working places stopped-407

Vacancies, turnover and capacity are key issues

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Inspections and Audits

Major Issues Inspections

Support on geological featuresSupport installation qualityGuarding of moving machinery nip pointsTrack maintananceLock-out of machinery and electrical gearr

AuditsChecklists and logbooks not used appropriatelyPoor communicationInadequate control of records and documents

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Major Inquiries

Major Inquires conducted/startedDRDHernicDriefonein – Inquiry to be concludedHarmonyNortham Platinum- Joint inquest/ inquiry

commenced

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Major Inquiries

Key outcomesDRD

Escape routes not available and/ or inaccessible Access way excessively long Failure to effectively manage and equip mine Inadequate staffing Failure to identify hazards and risks and to respond

Harmony Excessive stoping widths Poor and/ or lack of communication with workers Inadequate support

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Major Inquiries

Key challengesInquiries make heavy demands on resourcesInspectors face top legal expertsVery formal and time-consumingCapacity to preside over major inquiries

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Conclusion

With cooperation and support of all stakeholders, the ideal of a better quality of life for mine workers and communities affected by mining is attainable