1. Mine Health and Safety Council Presentation of the 2005/ 2006 Annual Report

2. 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

3. CONTENTS OVERVIEW PROFILE HIGHLIGHTS CHALLENGES STRATEGIC OBJECTIVES: Key Issues FINANCIAL STATEMENTS GOVERNANCE FINANCE COUNCIL REPORT

4. MINE HEALTH & SAFETY COUNCIL STRATEGIC OVERVIEW PROFILE COMPOSITION Tripartite 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.

5. 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

6. STRATEGIC HIGHLIGHTS Occupational 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 trend Two multi-fatal incidents claimed 9 lives during the year

7. 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 85dB 240 cases of TB per 1000 autopsies compared to 40 cases 25 years ago Occupational Health Performance

8. 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

9. 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 Research The overall cost of the research programme, has increased by 10 %, from R35.8 million in 2005 to R 39.6 million in 2006.

10. 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

11. 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

12. 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

13. 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

14. 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.

15. 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

16. Governance 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

17. Council Financial Report OPERATING RESULTS Council posted a surplus of R4.4m in 2006(2005: R14.2m) REVIEW OF OPERATIONS Research Account Levies 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)