Mine Health and Safety Council Presentation to Parliamentary Portfolio Committee on Mineral...

Mine Health and Safety Council

Presentation to Parliamentary Portfolio Committee on Mineral Resources

MHSC Annual Report for 2010/2011

27th January 2012

Contents

–MHSC Mandate

–MHSC Overview

–Strategic Objectives of MHSC

–Monitoring and Reporting Performance

–Good Governance at MHSC

–MHSC in 2012 and beyond

2

Vision:A regulatory framework and climate that

produces safe and healthy working conditions for mineworkers and communities affected by

mining

Mission :To facilitate sustained improvement of

occupational health and safety at mines through focused research and guidance on best practice, effective policy advice and

legislation, and the development of a pervasive culture of health and safety

3

The Mine Health and Safety Council

• Advise the Minister on all occupational health and safety issues in the mining industry relating to legislation, research and promotion

• Review and develop legislation for recommendation to the Minister

• Promote health and safety in the mining industry• Oversee research in relation to health and safety in

the mining industry• Liaise with other bodies concerned with health and

safety issues

4

MHSC’s Mandate

Mine Health & Safety Council

Mining Regulations Advisory Committee

(MRAC)

Mining Occupational Health Advisory

Committee (MOHAC)

Safety in Mines Research Advisory Committee

(SIMRAC)

Mining Industry TB & HIV/AIDS Advisory

Committee(MITHAC)

Audit & Risk Committee

LegislationRegulationsGuidelinesStandards

Health PolicyHealth informationHealth regulationsResearch input

Research needsResearch programmesTechnology Transfer

MHSC Office: Operational Execution and Implementation

StateLabourEmployers

5

MHSC’s Composition

HIV/AIDS policyTB guidelinesHIV/AIDS for mining in line with NSP

The main task of the MHSC is to advise the Minister of Mineral Resources on OHS legislation and research outcomes towards improving OHS performance in SA mines

MHSC’s Strategic PlanBalance Scorecard is the best way to monitor and report the organisational performance -

provides an integrated view of the overall performance

1.Customer Perspective 2. Internal Business Focus on customers satisfaction to ensure that do not find other suppliers who meet this need. Poor performance in this area is a leading indicator of future decline.

Three key clusters that focus on day to day operations; development of products and services to meet the customer needs and customer relationship management.

3. Learning and Growth 4. Financial Perspective Growth in human capital, information capital and organisational is critical to the success of any and all organisations

To ensure financial sustainability through revenue collection; reducing operational costs and managing financial risks

1.Customer Perspective 2. Internal Business

Provide advice to the Minister Influence the Health and Safety Legislative

environment Promote a Health and Safety Culture Improve Tripartite Partnership and

Cooperation

Improve Efficiency

Embed & Automate processes

Review processes

Engage in purposeful OHS research

Benchmark against, Adopt & Share in OHS Best Practice

Understand current and future OHS needs

Educate and empower stakeholders

Leverage networks3. Learning and Growth 4. Financial Perspective Attract, Develop and Retain Appropriate

Staff

Embed Cored Values

Build Technology Capability

Build Accountability

Improve Revenue Collection Align Budget with Strategy Leverage Assets Optimally Improve cost structure

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

Embed Core Values

Attract, Develop & Retain appropriate

staff

Learn

ing

&

Gro

wth

Build Technological Capability

Cu

sto

mer

an

d S

takeh

old

er

Efficient Business Processes

Inte

rnal P

rocess

Knowledge Leadership Stakeholder and Customer Relationship Management

Understand Stakeholder Needs & Expectations

Adopt & Share Best Practice

Understand Current & Future

OHS Needs

Engage in Purposeful Research

Automate processes

Review business processes & procedures

Embed processes

Leverage Assets

optimally

Improve Revenue

Collection Improve Cost

Structure

Fin

an

cia

l Align Budget with Strategy

Influence Legislation

Promote Health and Safety Culture in the mining industry

Cu

sto

mer

an

d S

takeh

old

er

Provide advice & reliable information

on OHS

Strengthen Tripartite

Partnerships

Regular & Timeous

Feedback

Improve efficiency

Educate & Empower our Stakeholders

Build / Leverage Networks

Benchmark against best practice

Build Accountability

Manage Risk

Strategic Plan - BSC Map

MHSC strategic objectives alignment with the BSC 1.Customer Perspective



Cooperation Drive the implementation of the Summit

2013 actions within the mining industry Build Health and Safety Capacity in the

Sector Monitor the improvement of the lifestyle of

mine workers

Build Capacity in the MHSC Office

Build Capacity in the Council to ensure knowledge of Councillors matches the MHSC strategic objective

Manage OHS research Maintain effective Financial

Management Maintain a high level of risk

management

Measuring performance

Measuring performance – Objective 1

COMMENTARY• The Culture Transformation was developed towards end of 2009 – lack of approval impacted negatively on

implementation.• Full compliance on reporting as per Ministry and Treasury requirements.• Advisory notes were sent to the Minister of Mineral Resources on TB and HIV/AIDS, AMD. Mine Disaster in

Chile and OHS research programme.• Although no legislation was developed inputs were provided on Enforcement Guidelines as well as MHS Act• Other regulations under discussion in the year were :

(i) The Shafts and Winders regulations (ii)Chapter 10. Review of Legal Appointments.(iii) Further interaction with ECSA (iv)Amendments to Conveyor Belts

Customer and Stakeholder Perspective

OBJECTIVE MEASURE TARGET ACTUAL

REASONS FOR DEVIATION

Promote Health and Safety Culture in the Mining Industry

OHS Culture framework developed

Y y Approval of the Cultural Transformation framework was obtained at the Council meeting in April 2011. Stakeholders still want to discuss the framework report.

% implementation of OHS culture framework plan

90% 0% The Culture Transformation Framework was approved in April 2011 due to the dependency on the approval, the implementation plan was not developed.

Regular & Timeous Feedback % compliance with policy requirements

100% 100% Compliance with required timeframes for submission of plans and reports is high. The MHSC management quarterly report, business plan and budget was submitted timeously.

Provide Advice & Reliable Information on OHS

No of OHS advice reports submitted to Minister

4 4 A number of topical issues (e.g. Chilean Mine Disaster and Acid Mine Drainage) were addressed.

Stakeholder Satisfaction Survey (Impact Assessment)

75% - The survey tool was approved however the survey was not undertaken due to the dependency on the website to disseminate the survey.

Influence Legislation No of recommendations (legislative) submitted

6 0 Inputs to the Enforcement guidelines were made.Workshop held on the proposed amendments to the MHSA.

Strengthen Tripartite Partnerships

No of high-level stakeholder engagements to discuss issues

2 1 The Deputy Minister visited the MHSC Offices in February 2011 (due to the late notification not all stakeholders were able to attend.)

Representation of stakeholders at scheduled meeting

40% 75% The MHSC and its sub-committees met regularly for the period under review with attendance being generally good.

% tripartite initiatives implemented (summit action plan)

80% 70% Most of the projects on the action plan are being developed through the Culture Transformation Framework and as such have been delayed

MHSC strategic objectives alignment with the BSC 1.Customer Perspective 2. Internal Business






mine workers

Manage OHS research

Maintain effective operation of the Council

Support OHS Monitoring and Evaluation Initiatives

3. Learning and Growth 4. Financial Perspective Build Capacity in the MHSC Office




management



COMMENTARY• The review of Business Processes was critical in the year and was completed• Capacity constraints impacted negatively on other initiatives that lead to some only being partially completed• Research projects commenced late due to lack of adequate proposals received from research providers with

significant consequences.• Commissioned specialised task team to investigate falls of ground in Platinum following Marikana Incident

Internal Perspective - Efficient Business processesOBJECTIVE MEASURE TARGET ACTUAL REASONS FOR DEVIATION

Improve Efficiency % adherence to prescribed timeframes

90% 90% The target was met however a few challenges were still experienced in the submission of the document packs.

Embed Processes % adherence to processes

100% 77% Changes to research management where implemented during the year . Business processes for all unites were reviewed.

Automate Processes % of processes automated

90% 40% Challenges in IT resourcing and staffing and Problems with website

Review Business Processes & Procedures

% of business processes reviewed

100% 100% All process for MHSC activities were updated

Internal Perspective - Knowledge Leadership

Adopt & Share Best Practice Number of best practices identified, adopted and shared

1 0 Specific programmes identified were effective methods of transferring research outcomes to target audiences is needed. The programmes were identified by not rolled out to members nor the sector.

Engage in Purposeful Research

Champion mine project perception and rating

75% 0 Survey to be developed in 2nd half of the 2010/2011 year. This was not achieved to the capacity constraints not only the Research Department but within MHSC Offices.

%age of Projects on brief, on budget ,on time

70% 40% Delays experienced due to late approval and was compounded by lack of submissions of pre-proposals on research questions. All new projects started but are late.

Benchmark Against Best Practice

Completed Best Practice Survey

Y Y SA practices identified as leading in most areas of OHS and as a result the focus has been on utilising the services within the country and continue with the internal research processes.

Understand Current & Future OHS Needs

Annual OHS needs analysis report approved

Y Y Needs analysis for 20111/2012 completed and approved by MHSC.

Internal Perspective - Stakeholder and Customer Relationship management


%age implementation of communication plan

3 0 MHSC communication strategy approved. The appointment of the MHSC Communications Manager will ensure that this gets implemented.


Number of stakeholder interactions

3 2 In February 2011, the MHSC conducted an Induction Programme for all the stakeholders.Presentations were given to stakeholders on the research processes as well as the research programmes and projects.

Understand Stakeholder Needs & Expectations

Implement Assessment Survey

Y N Survey tool not rolled out







mine workers

Manage OHS research







management



COMMENTARY• Metrics put in place to focus on training of individuals as well as corporate self improvement• During the year, post graduate studies for one employee was funded.

Learning & Growth

OBJECTIVE MEASURE TARGET ACTUAL REASONS FOR DEVIATION

Attract, Develop & Retain Appropriate Staff

No of vacancies 2 3 • The following vacancies have not been filled 1. Safety Research Programme Manager 2. IT Specialist 3. Receptionist

% of payroll spend on training and development

1% 2.2% The following training took place on the period under review: (1) Balanced Scorecard training.(2) Emergency training (3) SAMSHA training. (4) Emergency training; (5) Tax workshop (6) PHD registration

Embed Core Values Employee opinion survey ratings

3/4 N/A The employees survey process was not completed by the end of fourth quarter under review.

This will be prioritised for the first quarter of 2011/12

Build Technological Capability

% implementation of integrated IT & knowledge management infrastructure

90% 95% HR processes and policies have been updated, loaded SAMSHA on system

effective use of SAMSHA to be enforced

Build Accountability % employees with performance agreements for 2010/11

100% 96% Not all the staff (1) had their assessments signed by the end of the year.







mine workers

Manage OHS research





Maintain effective Financial Management

Maintain a high level of risk management



COMMENTARY• Improvement in revenue collection from levies collectable from operating mines • Improvement in risk reduction for the organisation• Return on Investment (ROI) was to measure development costs of staff and capital costs against the achieving

of strategic objectives – however was not undertake due to capacity constraints • Reporting in line with all Ministry and Treasury Requirements• Unqualified audit report from Auditor General

Financial Perspective

OBJECTIVE MEASURE TARGET ACTUAL REASONS FOR DEVIATION

Improve Revenue Collection % Improvement on Debtors ageing 30% 35%Though there is improvement on collections, the challenge remains with the accuracy of the billing data supplied by DMR

Align budget with strategy % Total Budget Allocated to Strategy 80% 79% Expenditure is in line with approved Business Plan .

Leverage Assets Optimally ROI on People & Infrastructure 100% 0%

Measure has not been developed.

Improve Cost Structure Opex Ratio 0.2 0.21 Savings as a result of vacancies and reduced staff costs.

Manage Risks % reduction in Substantial Findings 50% 64%

Exceeded target set.External Audit complete.Unqualified audit report was obtained from 2009/2010.Number of findings. Reduced compared to 2008/9 report

• MHSC had no audit findings raised by the Auditor-General

• Significant focus on Stakeholder Perspective – to provide information on OHS issues to Ministry, Employers and Employees.

• Efficacy of MHSC Operations by introduction of new systems and processes.

• Financial Management and Risk Reduction ongoing and there has been significant improvement

• Progress reports to theMinister of Mineral Resourceson a quarterly basis

Summary of performance for 2010/2011

• Research Projects 2010/2011 that were commissioned by the MHSC were:

• Impact of Dust from Tailings Dam Facilities on neighbouring communities.

• Development of Framework for reporting and management system for Occupational Health.

• Training and Awareness programme for Thermal Stress.

• Minimising the risk of seismicity in platinum mines.

• Integration of local mine seismic networks to national networks.

• Personal Protective Equipment for Women in Mining.

• Guidelines for Workers Incapacity due to Ill Health

• Guidelines for Fitness for Work

Summary of performance for 2010/2011

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Forecast of Research Budget Split for 2010-

2011The Audit Committee is satisfied, with the content and quality of the monthly and quarterly reporting as submitted by the Council during the year under review.

The Audit Committee is satisfied with the plan to be implemented by management in addressing these challenges and the impact will be monitored continuously in the new financial year.

The Committee is satisfied that the internal audit function is operating effectively and that it continues to provide assurance in relation to the risks pertinent to the MHSC in its audit.

Chairperson of the Audit Committee

Good Governance - Internal Audit

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Forecast of Research Budget Split for 2010-2011

Opinion In my opinion, the financial statements present fairly, in all material respects, the financial position of the Mine Health Safety Council as at 31 March 2011, and its financial performance and cash flows for the year then ended in accordance with the SA Standards of GRAP and the requirements of the PFMA.

Good Governance - Auditor General

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Good Governance - Financial Statements

STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2010 2011 2010

Income

63,883 59,916

Revenue from non-exchange transactions 57,020 52,903

Revenue from exchange transactions

Finance income

6,500

7,235

Other income 363 588

Expenditure

50,586 45,004

Research expenditure21,459 18,462

Administrative expenses 5,871 4,194

Staff costs 9,055 9,937

Depreciation and amortisation 860 1,095

Operating expenses 12,255 10,959

Promotion of Health And Safety 130 9

Finance costs 955 348Net Surplus for the year 13,298 14,912

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


Strengths• Tripartism

• Uniformed voice by all towards ZERO HARM

• Sound Risk Management


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

Thank you

Thank you

ZERO HARM – THE ULTIMATE

Mine Health and Safety Council Presentation to Parliamentary Portfolio Committee on Mineral...

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