1. Mine Health and Safety Council Presentation of the Annual Report

2. STATEMENT The Mine Health and Safety Council is committed to supporting, promoting and investigating efforts to eliminate injury and occupational disease in the mining sector

3. CONTENTS OVERVIEW STRATEGIC OVERVIEW HIGHLIGHTS CHALLENGES PERFORMANCE REPORT OHS PERFORMANCE RESEARCH PORTFOLIO LEGISLATIVE OVERVIEW PROMOTION OF HEALTH & SAFETY FINANCIAL STATEMENTS AG’S REPORT COUNCIL REPORT CORRECTIVE ACTION

4. 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. Vision A regulatory framework and climate conducive to safe and healthy working conditions for mineworkers and communities affected by mining. Mission

5. MINE HEALTH & SAFETY COUNCIL The Mine Health and Safety Council was established in July 1997 on a tripartite basis COMPOSITION Tripartite, 5 government, labour and 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.

6. SIMRACMOHACMRAC Mine Health and Safety Council Stakeholder participation 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 Input from consultants and advisers Audit/Risk Committee HR/Remuneration Committee

7. OVERVIEW STRATEGIC OVERVIEW HIGHLIGHTS CHALLENGES FINANCES

8. Strategic Overview The MHSC’s Operational Plan translates its Strategic Plan into an implementation programme to achieve agreed goals, targets and milestones. Seven strategic goals were delineated: Goal A:Give advice on improving the reliability, accessibility and usefulness of OHS DATA AND STATISTICS. Goal B:Review REGULATORY MECHANISMS and policies Goal C:Promote a PREVENTATIVE HEALTH AND SAFETY CULTURE Goal D:Facilitate the formulation and management of RESEARCH PROGRAMMES Goal E:FOCUS ON COMMITMENT RELATED ISSUES Goal F:Recommend POLICIES to encourage COMPLIANCE and increase CAPACITY Goal G:Ensures MHSC operation within GOVERNANCE AND POLICY FRAMEWORK

9. Highlights and Key Issues Occupational Safety Decrease in fatalities by 17% from 270 in 2003 to 246 in 2004 Decrease in serious injuries by 7% from 4 301 in 2003 to 4 254 in 2004 Considerable effort on the part of stakeholders, but improvements still too slow and new challenges emerging Occupational Health The prevalence of silicosis unchanged for many decades (gold, coal) Tuberculosis a major challenge and increasing Noise-induced hearing loss (NIHL) a significant problem Visible application of engineering solutions Ongoing efforts to address HIV & AIDS epidemic and related issues

10. HIGHLIGHTS and ISSUES (cont) Policy & Regulatory and Performance ‘Guideline for Mandatory Codes of Practice for Dealing with Slope Stability-related Accidents on Surface Mines’ approved New Regulations relating to Survey, Mapping and Mine Plans; the Protection of the Surface and Workings; and Underground Railbound Transport. Occupational Health and Safety Research Research programme cost up 6%, R33,7m in 2004 to R35 m in 2005 Primary focus were in relation to the 2003 Summit targets: R25m silicosis research project conceptualized, commenced in 2005 R20m research project on preventing rockbursts commenced

11. CURRENT CHALLENGES FORMALLY assess appropriateness of current approach to drafting legislation Achievement of OHS industry targets APPROPRIATE databases for health statistics Mine disasters still occurs and Disasters in the period Northam Zondereinde Platinum Mine 9 miners died Hernic Ferrochrome Maroelabult Mine 7 miners died Harmony Free State Operations No. 2 Shaft 4 miners died New challenges at existing mines i.e water, seismicity Transferring research outcome through appropriate mechanisms

12. Performance Strategic Goal A: Advising on improvements in the reliability, accessibility and usefulness of OHS data and statistics. MHSC Interventions: MHSC Project 04 09 07 ‘Recommendations for improvements in the reliability, accessibility and usefulness of OHS data and statistics’, which has commenced in April 2005. MHSC concluded project SIM 03 09 02 entitled ‘Web-based mining industry data base for audiograms’ to the industry. The Problem: OHS Databases on different systems / programmes, underlying data imported from economic databases Accuracy of data not easily assured Meaningful occupational health data not available

13. Performance Strategic Goal B: Review regulatory mechanisms and policies on the promotion of occupational health and safety This task includes: Refining Council policies regarding regulations Completing work on reviewing and proposing changes to OHS legislation; and Interacting with other statutory bodies concerning matters relating to OHS. MHSC Interventions Project approved to asses appropriateness of outcomes based legislation New regulations were passed: 1 COP, 3 Regulations. Pending regulations approved by MHSC: Outlets, to regulate outlets Lifting Equipment Scraper winches and mono-rope winches Explosives, to regulate the usage of explosives at mines Mechanisms in place for interaction with MQA

14. Performance Strategic Goal C: To promote a preventative safety and health culture in the mining sector Communication and Promotion 3000 CDs 6000 MHSC Newsletters 1 000 Handbooks on Occupational Health.; 3 000 Booklets on a variety of completed projects Technology and Information Transfer 10 000 role players in the mining industry were informed of MHSC activities, The MHSC has held 53 technical workshops, 9 launches and 5 research-levy roadshows. The MHSC was present at 8 conferences, seminars and Electra Mining exhibition Safety Awards Safety Achievement flag: Ultra deep gold and platinum mines (>2 000 m) Target Mine; Shallow to deep gold and platinum mines (<2 000 m)Sheba Gold Mine; Coal mines Dorstfontein Coal Mine; Other mines Holcim Cement Ulco One Million Fatality Free Shifts: Conferred on 31 Mines Thousand Fatality Free Production Shifts: Conferred on 45 mines

15. Performance Strategic Goal D: Research Programme 2004 -2005 Research budget – R35,8 m 54 % safety 46 % health 19 new projects were advertised – 44 proposals received Preference given to national institutions to support capacity building Longer term programmes initiated 56 projects pursued in 2004/2005 8 bursaries for post graduate studies – emphasis on HDI candidates Research program aligned to Milestones and Targets of 2003 Summit and Strategic Plan Concerns of the Leon commission are still relevant

16. Performance Strategic Goal D: Research Programme Safety Research Long tendon support in collieries Safety detaching hook Machine mounted active explosive detection and suppression Seismic location and source area of seismic events Face area support for rockfall and rockburst conditions Occupational Health Research Silicosis Biomarkers – early detection of silicosis TB management programme – case finding and surveillance X-ray reading skills – arriving at correct diagnosis New methods of NIHL screening and diagnosis – objective evaluation of hearing state Ergonomics – muscular skeletal ailments of machine workers Prevalence of alcohol and substance use – usage, attitude & employee assistance programs Handbook for Occupational Hygiene Measurements – measurement of dust, heat, noise and light

17. Performance Strategic Goal E: To monitor and maintain a focus on specific prevention issues that stakeholders have committed themselves to addressing. Issues formulated from MHSC Summit 2003 Promoting a reduction in occupational accidents. Promoting the elimination of silicosis. Promoting the reduction of noise-induced hearing loss. MHSC Interventions Regulatory interventions Developing remaining COP’s (on falls of ground at surface mines and massive mines) Monitoring and reviewing safety performance and the implementation of interventions Research Interventions Reduction of fatalities and serious injuries Survey needs of small-scale mines and integrating small-scale mining needs into legislative programme. Project SIM 04 09 08 ‘Pilot study to determine the extent to which illegal mining operations effect OHS’ has commenced in 2005. A project to address rockbursts (SIM 05 03 02 ‘Managing Rockburst Risk’) has commenced

18. Reduction of fatalities and serious injuries (MHSC Interventions) Performance Overview

19. Performance Strategic Goal E: To monitor and maintain a focus on specific prevention issues that stakeholders have committed themselves to addressing MHSC Interventions Research Interventions (Continued) Elimination of Silicosis Comprehensive research programme, on the Elimination of Silicosis R26m over 5 yrs, The programme has 3 tracks: Track A, will address improved methods of controlling dust at source Track B, will formulate a risk assessment to identify the priority dust sources and the applicable control technologies; assess filtration efficiency; and compile internationally-accepted best practice procedures and manuals, for dust control. Track C, will develop targeted silicosis promotion strategies and material. Elimination of NIHL Health 806 ‘Noise and Vibration’ and SIM 030902 ‘Hearing database’ should facilitate the implementation of hearing conservation programmes A Guideline for a Mandatory COP for an Occupational Health Programme on Noise has been developed and implemented in March 2004.

20. Elimination of Silicosis Performance Overview Elimination of NIHL

21. Performance Prevention MHSI led in implementing this goal, by developing enforcement guidelines, programmes for assessing OHS risks (based on legislation) MHSC complements MHSI monitoring and assessment programme Culture Research currently underway focused on behavioural interventions Governance During this review period, policy issues relating to transparency, accountability and sound management have been addressed. Compliance During January 2005, the Inspectorate has developed and published a booklet entitled ‘Guideline for the Enforcement of the Mine Health and Safety Act’. Strategic Goal F: Recommendations on policies that create compliance and increases and retains the capacity and competencies Goal aligned with National OHS priorities viz: prevention, culture, governance and compliance

22. Performance Goal G: Council and its institutions operate within the GOVERNANCE AND POLICY FRAMEWORK The following pertinent policy and governance issues have been addressed during the 2004/5 period: Policies, procedures implemented to ensure compliance; Fourth Biennial Summit in October 2005, focus on trends and progress against milestones MHSC monitoring developments in national initiative to establish national OHS policies and institutions During the latter part of 2005, the MHSC to establish mechanisms to facilitate sharing of best practices

23. Report of Auditor General QUALIFICATION Audit qualified by Auditor General due to scope limitations related to VAT liability. EMPHASIS OF MATTER The AG drew attention to the the following material matters: Shortcomings in the application of Treasury regulation 31 Database for calculation of the rate at which levies are charged Ownership of levies received for Mine Health and Safety

24. Council Financial Report OPERATING RESULTS Council posted a surplus of R12.7m (2004: R6.7m) Surplus comprised: R12.7m in the research account which is committed to research contracts (2004: R5.9m) Break even in the administration account.(2004: Surplus R0.8m) REVIEW OF OPERATIONS Research Account Levies amounted to R37.6m in 2005 (2004: R33.7m) Research Expenditure amounted to R22.6m in 2005 (2004: R24.2m) Contribution to administration R4.9m (2004:R2.2m)

25. Council Financial Report REVIEW OF OPERATIONS (Cont) Administration Account State funding amounted to R3.7m ( 2004: R6.9m) Expenditure amounted to R3.7m (2004: R6.2m) Admisrative Fine Fund Fines received amounted to R0.2m (2004: 0m) Expenditure amounted to R0.2m (2004: R0m) CONTROL SYSTEMS & RECORD KEEPING Income and receivables VAT Liability Debt Collection Agent Research Assets

26. Corrective Actions 2004/5 Audit Qualification on Vat only Policies and procedures implemented Significant compliance to PFMA No material losses incurred Improved operational efficiency 70% of audit issues raised in the prior year resolved Ownership of levies resolved