MHSC Annual Report 2018/2019 by Pixykorner

MHSC ANNUA

L REPORT 2018/2019

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

TABLE OF CONTENTS

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019 1.

PART A: GENERAL INFORMATION ...............................................................................................................................6 1.1

PUBLIC ENTITY’S GENERAL INFORMATION ..................................................................................................7

1.2

LIST OF ABBREVIATIONS /ACRONYMS .........................................................................................................8

1.3

TERMS & DEFINITIONS ..............................................................................................................................10

1.4

FOREWORD BY THE CHAIRPERSON ...........................................................................................................12

1.5

CHIEF EXECUTIVE OFFICER’S OVERVIEW ...................................................................................................13

1.6

STRATEGIC OVERVIEW ...............................................................................................................................16

1.7

LEGISLATIVE AND OTHER MANDATES ........................................................................................................16

1.8

ORGANISATIONAL STRUCTURE ..................................................................................................................16

PART B: PERFORMANCE INFORMATION ....................................................................................................................17 2.1

STRATEGIC OUTCOME ORIENTED GOALS ..................................................................................................19

2.2

REVENUE COLLECTION ..............................................................................................................................26

2.3

BUDGET MONITORING AND EXPENDITURE ..............................................................................................26

2.4

BROAD BASED BLACK ECONOMIC EMPOERMENT ....................................................................................26

PART C: OPERATIONAL HIGHLIGHTS ..........................................................................................................................27

PART D: GOVERNANCE ...............................................................................................................................................55 4.1

INTRODUCTION..........................................................................................................................................57

4.2

COUNCIL ....................................................................................................................................................58

4.3

AUDIT AND RISK COMMITTEE (ARC) .........................................................................................................60

4.4

HUMAN RESOURCE AND REMUNERATION ADVISORY COMMITTEE (HRRAC) ...........................................61

4.4

SAFETY IN MINES RESEARCH ADVISORY COMMITTEE (SIMRAC) ...............................................................62

4.5

MINING REGULATION ADVISORY COMMITTEE (MRAC) ............................................................................64

4.6

MINING OCCUPATIONAL HEALTH ADVISORY COMMITTEE (MOHAC) ........................................................65

4.7

MINING INDUSTRY TB AND HIV/AIDS ADVISORY COMMITTEE (MITHAC) .................................................66

4.8

CULTURE TRANSFORMATION ADVISORY COMMITTEE (CTAC) ...................................................................67

4.9

RISK MANAGEMENT ..................................................................................................................................68

4.10

COMPLIANCE WITH LAWS AND REGULATIONS ..........................................................................................68

4.11

FRAUD AND CORRUPTION .........................................................................................................................68

4.12

MINIMISING CONFLICT OF INTEREST .........................................................................................................68

4.13

CODE OF CONDUCT ....................................................................................................................................69

4.12

INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) .....................................................................69

4.15

HEALTH, SAFETY AND ENVIRONMENTAL ISSUES ........................................................................................69

PART E:

HUMAN RESOURCE MANAGEMENT .......................................................................................................70

PART F:

FINANCIAL INFORMATION.......................................................................................................................80

6.1

REPORT OF THE EXTERNAL AUDITOR.........................................................................................................82

6.2

ANNUAL FINANCIAL STATEMENTS..............................................................................................................86

ANNEXURES .............................................................................................................................................................121 7.1

ANNEXURE A: STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY.............................122

7.2

ANNEXURE B: REPORT OF THE AUDIT COMMITTEE.................................................................................123

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Part A GENERAL INFORMATION

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

1.1

PUBLIC ENTITYâ&#x20AC;&#x2122;S GENERAL INFORMATION

The Mine Health and Safety Council (MHSC) was established in 1997, in terms of the Mine Health and Safety Act (29 of 1996) as amended. The core mandate of the MHSC is to advise the Minister of Mineral Resources and Energy on all Occupational Health and Safety (OHS) issues in the mining industry, and to develop legislation with specific reference to regulations, conduct research, promote mine OHS and liaise with other bodies on occupational health and safety matters including communities affected by mining. Mine Health and Safety Council

Registered name of the public entity

145 Western Service Road Western Woods Office Park Registered office address B7, Maple Place, Woodmead Gauteng, South Africa Private Bag X11 Wendywood Postal address 2144 (011) 656-1797 Contact telephone numbers (011) 070-4200 Email address

communications@mhsc.org.za

Website address

www.mhsc.org.za

External auditors information

Auditor-General South Africa

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

1.2

LIST OF ABBREVIATIONS/ ACRONYMS

4IR

Fourth Industrial Revolution

AGSA

Acquired Immune DeficiencySyndrome

AIDS

Auditor-General South Africa

ARC

Audit and Risk Committee

ASB

Accounting Standards Board

BBT

Brief Budget andTime

BSC

Balanced Scorecard

CEF

Central Energy Fund

CEO

Chief Executive Officer

CFO

Chief Financial Officer

CGO

Corporate Governance Officer

CGS

Council for Geoscience

CHCO

Chief Human Capital Officer

CSIR

Council for Scientific and Industrial Research

CIoM

Chief Inspector of Mines

CoE

Centre of Excellence

CoP

Code of Practice

CROO

Chief Research OperationsOfficer

CTAC

Culture Transformation Advisory Committee

DMR

Department of Mineral Resources and Energy

DoH

Department of Health

DoL

Department of Labour

FoG

Falls of Ground

GRAP

Generally Recognised Accounting Practice

GRC

Governance, Risk and Compliance

HATS

HIV/AIDS, TB and Silicosis

HIV

Human Immunodeficiency Virus

Human Resources

HRRAC

Human Resources and Remuneration Advisory Committee

ICT

Information Communication Technology

ICTSC

Information Communication Technology Steering Committee

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

1.2

LIST OF ABBREVIATIONS/ ACRONYMS

ICTSCC

Information Communication Technology Steering Committee Charter

IGRAP

Interpretation of the Standards of Generally Recognised Accounting Practice

Intellectual Property

LSD

Low Sulphur Diesel

MHSA

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

MHSC

Mine Health and Safety Council

MHSI

Mine Health and Safety Inspectorate

MINTEK

Council for Mineral Technology

MITHAC

Mining Industry TB, HIV and AIDS Advisory Committee

MoA

Memorandum of Agreement

MOHAC

Mining Occupational Health Advisory Committee

MOSH

MiningIndustryOccupationalSafetyandHealth

MoU

Memorandum ofUnderstanding

MPLS

Missing Person Locater System

MQA

MiningQualificationsAuthority

MRAC

Mining Regulations AdvisoryCommittee

NDP

National Development Plan

NIHL

Noise Induced Hearing Loss

NIOH

National Institute of Occupational Health

OHN

Occupational Health Nurse

OHP

Occupational Health Practitioner

OMP

Occupational Medical Practitioner

OHS

Occupational Health and Safety

PDS

Proximity Detection System

PDTC

Program Delivery TechnicalCommittee

PFMA

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

PPC

Parliamentary Portfolio Committee

PPE

Protective Personnel Equipment

RDTC

Research DeterminationTechnical Committee

RODTC

Research Outcome Dissemination Technical Committee

SAMI

South African Mining Industry

SAMRASS

South African Mines Reportable Accident Statistical System

SANIRE

South African Institute of Rock Engineering

SANS

South African National Standards 9

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

1.2

LIST OF ABBREVIATIONS/ ACRONYMS

SCM

Supply Chain Management

SCSRs

Self-Contained Self-Rescuers

SIMRAC

Safety in Mines Research Advisory Committee

STS

Standard Threshold Shift

Tuberculosis

TTK

Technology Transfer and Knowledge

TIA

Technology Innovation Agency

ULSD

Ultra-Low-Sulphur Diesel

University of Pretoria

WiM

Women in Mining

WITS

University of the Witwatersrand

WSP

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)ofthe 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. 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 Councilâ&#x20AC;&#x2122;s mission for a period of three (3) to five (5) years RESEARCH THRUST AREAS means research focus areas 10

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Every mine worker returning from work unharmed every day. Striving for Zero Harm

The Mine Health and Safety Council

MHSC ANNUAL REPORT 2018/2019

1.4

FOREWORD BY THE CHAIRPERSON

Mr. David Msiza

MHSC achieved the average of 98% of all its initiatives linked to the strategic objectives as part of delivery on its mandate that include: advising the Minister of Mineral Resources and Energy on all Occupational Health and Safety (OHS) matters in the mining industry this includes regulations, research, OHS promotion and liaison with various stakeholders on these matters. The MHSC has successfully hosted the 2018 Mine Occupational Health and Safety Summit the reviewed progress made since the previous Summit during 2016 in the achievement of the 2014 milestones. One of the outcomes of the 2018 Summit was the progress of the mining industry that requires serious improvement in the achievement of the 2014 occupational health and safety milestones. 2020 is almost upon us, the MHSC with its stakeholders agreed to the

â&#x20AC;&#x153;

achievement of Zero Harm by 2020. This is to be achieved by the reduction of fatalities and injuries year on year by 20% effective from December 2015. The MHSC will facilitate hosting of sub-sector OHS Summits to engage on the challenges being encountered in the mining industry and strategies to improve the industry performance and to engage. This will be the build-up to the next Occupational Health and Safety Summit to be held in 2020. There were various engagements with historically disadvantaged institutions of higher learning to form part of the CoE partnership and there was limited success on that endeavour. Engagements are continuing to get more partners on board and to ensure collaborations of South African institutions of higher learning on mining occupational health and safety research. In addressing skills shortages in the area of rock engineering and seismicity, MHSC has partnered with Wits University, University of Pretoria, MQA and CGS in building capacity for the mining industry. In the financial year ended 31st March 2019, ninety five percent (95%) of the levies were collected against the target of ninety percent (90%), which is a slight improvement from the previous financial year. MHSC is currently in preparation for the introduction of the new levy model. Awareness campaigns and soliciting of inputs were rolled-out in all provinces on

planned to be implemented during the financial year starting in 2020. As part of MHSCâ&#x20AC;&#x2122;s longterm sustainability a new levy model was developed and will be implemented once stakeholder awareness sessions have been completed. As part of the continued commitment to improved health and safety in the industry, the expenditure for the year was in line with the budget. The expenditure variance was within the five percent (5%) prescribed range. I wish to extend my gratitude to the Minister of Mineral Resources and Energy for continued leadership, guidance and support. I would also like to extend my sincere thanks to the Council, Council Advisory Committees, Internal and External Auditors. My appreciation also goes to the MHSC Executives and Staff for their outstanding performance and for providing the necessary support to all structures of MHSC and stakeholders.

Mr. David Msiza CHAIRPERSON

â&#x20AC;&#x153;

It gives me great pleasure, on behalf of the Mine Health and Safety Council (MHSC), to present the annual report for the financial year ended 31st March 2019 to the Honourable Minister of Mineral Resources and Energy, Mr Gwede Mantashe, our Tripartite industry stakeholders, State, Organised Labour, Employers in the mining industry and other relevant stakeholders.

MHSC achieved the average of 98% of all its initiatives linked to the strategic objectives

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

1.5

CHIEF EXECUTIVE OFFICER’S OVERVIEW

Mr. Thabo Dube

In 2017; the mining industry experienced challenges in terms of OHS performance, with falls of

As part of the review of the progress of implementation of 2014 Mining Industry Occupational Health and Safety Summit milestones, MHSC hosted Mine Occupational Health and Safety Summit in 2018. The Minister of Mineral Resources and Energy requested that the biannual Summit be hosted at an earlier date than scheduled to review the progress of the implementation of the OHS milestones.

Subsequently; a report outlining key outcomes from the Summit was developed including an Action Plan with initiatives for implementation in consultation with the Council Advisory Committees. The MHSC Office executed the operational deliverables of the Council in line with the approved 2018/19 strategic plan. This was achieved through the provision of administrative support to the Council and its Committees, managing its Research programmes, Information Communication Technology, Finances, Communications, Dissemination; Stakeholder Management and Promotions including creating an environment focused on capacity building. To this end the MHSC has achieved five (5) out of six (6) financial strategic objectives that were due at the end of the financial year translating to 98% achievement of all initiatives. The Centre of Excellence (CoE) is now fully capacitated and functional and Phase 2 of CoE Business Plan relating to upskilling of mine workers on O H S m a t t e r s w i t h recommendations, has been completed for implementation during the next financial year. As part of addressing the transformation challenges and empowerment of previously disadvantaged researchers, Historically Disadvantaged Universities (HDUs) and institutions were approached and included as part of the service

“

The Mine Health and Safety Council continues to provide a platform for stakeholder engagements in addressing issues and challenges relating to occupational health and safety in the mining industry. The mining industry has seen some improvement in terms of Occupational Health and Safety performance in the period under review.

ground and seismicity related accidents and fatalities being one of the major contributors. The Parliamentary Portfolio Committee (PPC) on Mineral Resources and Energy raised a concern about the increasing number of accidents and fatalities. In response to the PPC’s concern on the lack of effective interventions to mitigate the then recent spate of falls of ground and rock bursts incidents in the SAMI; the MHSC collaborated with UP, WITS, Minerals Council South Africa (MINCOSA) formerly the Chamber of Mines, SANIRE, DMRE, CSIR and CGS to establish a task team. The aim of the task team was to develop mitigating strategies for rock related risks and provide recommendations to Council. This included addressing skill shortages on rock engineering and seismicity. The MHSC in collaboration with the MQA; Wits University and the University of Pretoria developed a training programme in seismology and rock engineering to address the skills shortages in the mining industry. Currently there are a number of graduates already enrolled in both programmes.

“

The aim of the task team is to develop mitigating strategies for rock related risks and provide recommendations to Council. 13

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

“

The new levy model has been approved for implementation in the financial year starting 1 April. 2020

providers to conduct research for the MHSC. The CoE also collaborated with WITS, University of Pretoria (UP), National Institute of Occupational Health (NIOH) and CSIR Cottesloe where seed funding was provided to upgrade their facilities to be research-ready for the use by MHSC and its stakeholders. This is part of the programme to increase access to research and testing facilities required for compliance purposes. Various promotional events hosted by MHSC included the Women in Mining (WiM) workshop to promote prevention of sexual harassment, implementation of Personal Protective Equipment’s (PPE) guidelines and safety and security issues impacting on WiM, as part of addressing issues impacting on women in the SAMI. In support of the Minister of Health’s initiatives, the MHSC identified Rustenburg in the North West to commemorate World Aids Day as one of the areas having the highest burden of HIV/Aids including TB. A post event assessment was done, there is a need for further improvement in the management of events especially those that involve communities and mine workers at the “coal- face”. MHSC will establish strategic partnerships with provincial and local governmental and nongovernmental entities, agencies and departments to ensure

The total expenditure for the year was R119.0 million compared to the budget of R124.9 million, which resulted in a variance of 5%. The variance is with the target range of 5% as provided for by National Treasury Regulations. MHSC experienced a number of challenges with nonresponsive bids especially from previously disadvantaged service providers and institutions of higher learning and delays in finalisation of expansion of partners to the Centre of Excellence from previously disadvantaged service providers and institutions of higher learning, this impacted on the expenditure.

sustainability of initiatives relating to communities in peri-mining areas and mine workers. The MHSC hosted the 4th Occupational Health (OH) Dialogue, the OH Dialogue was hosted under the theme, “Shaping the future of Occupational Health in SAMI”, and was planned with the focus on employee health as it has been documented and proven that a healthy workforce is an essential pre-requisite for productivity and economic development. A workshop on the Fourth Industrial Revolution (4IR) to the assess the impact it will have on the OHS landscape in the SAMI was held. This was intended to prepare the MHSC for new developments as a result of Forth Industrial Revolution and to assess how prepared the organisation is for imminent changes likely to have various impacts to the SAMI. There has been a strong focus on establishing and creating an occupational health and safety knowledge hub as an information platform for occupational health and safety in an attempt to serve the SAMI with up to date and relevant information on matters of OHS, the MHSC has also embarked on a process of revamping its website populating it with user friendly information to support the journey to Zero- Harm. The e-library is functionally created on the website for users to access other materials in the form of e-books, in the nine thrust research areas.

The new levy model has been approved for implementation in the financial year starting 1 April 2020. Consultation workshops were held in all nine (9) provinces as part of the awareness campaign to popularize the new levy model. During the reporting period ninety five percent (95%) of the levies were collected against the target of ninety percent (90%) target. I would like to appreciate and convey my gratitude to the MHSC Council and its Advisory Committees, for their direction and leadership, our valuable stakeholders, management and staff for their tireless efforts, their support and assistance towards achieving the goal of Zero-Harm.

Mr. Thabo Dube MHSC CHIEF EXECUTIVE OFFICER

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

1.6

STRATEGIC OVERVIEW

Vision Statement The Mine Health and Safety Council has a vision to be the knowledge leader and trusted advisor to the Minister of Mineral Resources and Energy and stakeholders on Occupational Health and Safety matters, and to promote the transformation of Occupational Health and Safety in the mining industry towards the achievement of Zero Harm to Mine Employees and Mining Communities.

Mission Statement 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 and Energy, liaising with statutory bodies, fostering an effective tripartite partnership, and creating and disseminating information on leading practices to the mining industry.

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.

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.

Goals MHSC is pursuing the following goals and all the strategic objectives will be linked to achievement of these goals: Zero Harm to employees and communities as a result of mining activities. Providing knowledge leadership in mining Occupational Health and Safety.

Slogan Every mine worker returning from work unharmed every day. Striving for Zero Harm Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

1.7

MHSCâ&#x20AC;&#x2122;S LEGISLATIVE MANDATE

MHSC was established in terms of the Mine Health and Safety Act (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.

1.8

ORGANISATIONAL STRUCTURE MHSC BOARD ARC

SIMRAC

CoE PDTC

CoE RDTC

HRRAC

MRAC

MOHAC

CTAC

MITHAC

CoE RODTC

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Part B PERFORMANCE INFORMATION

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

2.1

STRATEGIC OUTCOME ORIENTED GOALS

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 2018/19 financial year, the MHSC has achieved 98% performance as indicated in table below:

Table 1: Performance overview of the MHSC for 2018/19 financial year STRATEGIC OBJECTIVE 1. CP 01 – Provide advice to the Minister on Occupational Health and Safety matters in the South African Mining Industry and on health and safety issues affecting communities as a result of mining activities. 2. CP 02 - Promote a culture of Occupational Health and Safety in the South African Mining Industry.

WEIGHT

TARGET

ACTUAL

STATUS

20%

80%

100%

20%

80%

85%

3. IP 01 - Create an occupational health and safety knowledge hub for the South African Mining Industry, through providing effective and efficient business processes.

30%

80%

75%

4. LG 01- Build capacity for the MHSC

10%

85%

86%

ACHIEVED

5. FP01RR - Ensure financial sustainability and viability of MHSC

10%

90%

95%

ACHIEVED

6. FP 02 – Optimise effective and efficient management of financial

10%

ACHIEVED

Every mine worker returning from work unharmed every day. Striving for Zero Harm

ACHIEVED

NOT ACHIEVED

MHSC ANNUAL REPORT 2018/2019 The MHSC achieved outstanding performance with above hundred percent (100%) against the target on the development of the advisory notes to the Minister. There has been a greater focus of development of regulations and guidelines for Code of Practices addressing pertinent issues on OHS within a period of a year. The MHSC also finalised critical research to address pertinent Occupational Health issues that will assist the mining sector on early diagnosis of Occupational Lung Diseases, management of confined spaces and prevention of flammable gas. These research outcomes will have a high impact in the SAMI to address overexposure to airborne pollutants. It is also to be noted that the promotion of a healthy and safety culture in the SAMI was another area that the MHSC performed well in, which is a key driver in strengthening tripartite relations and promoting the MHSC brand. ith regards to the collection of levies, the MHSC performed excellently above the target of ninety percent (90%) as it collected ninety five percent (9 %) of the revenue. This was five percent ( %) above the target which is as a result of a good relationship built between MHSC and the mines over the years. The MHSC experienced challenges on strategic objectives relating to the creation of OHS knowledge hub. The MHSC will in the 2019/2020 financial year focus on the registration of Intellectual Property and Commercialisation .

2018/19 PERFORMANCE OVERVIEW

TARGET 80 100

ACTUAL

% 5% 5%

CP01

CP02

IP01

LG01

FP01

FP02

igure 2: 2018/19 performance overview

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

If the performance is planned target then it is considered as ACHIEVED igure : egend for Performance

ating

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019 The details against each of the ob ectives are provided below for each ob ective. NAME OF THE OBJECTIVE (CP01) PROVIDE ADVICE TO THE MINISTER ON OCCUPATIONAL HEALTH AND SAFETY MATTERS IN THE SOUTH AFRICAN MINING INDUSTRY AND ON HEALTH AND SAFETY ISSUES AFFECTING COMMUNITIES AS A RESULT OF MINING ACTIVITIES. DEFINITION DELI ERY A AINST MHSC MANDATE AND MINE HEALTH AND SAFETY TRIPARTITE S MMIT ACTION PLAN ON OHS TO ENS RE STA EHOLDER SATISFACTION PRIMARY MEASURE Percentage of achievement of initiatives

TARGET FOR THE YEAR: 80%

ACTUAL 100%

STATUS ACHIE ED

% OF TARGET ACHIEVED 100%

INITIATIVE 1 DEVELOP FOUR LEGISLATIVE ADVISORY NOTES FOR SUBMISSION TO THE MINISTER.

The following legislative advisory notes have been submitted to the Minister

(a)

Advisory Note on the revised Thermal Stress Reporting Forms as per Regulation 9.2.(7).

(b)

Examination Fees for Certificates of Competency.

Guideline for Compilation of a Mandatory Code of Practice for the Management of Self-Contained Self-Rescuers in Mines. Mine Health and Safety Councilâ&#x20AC;&#x2122;s Regulatory Review Programme.

(e)

Guidance note Medico legal investigations of mine deaths.

INITIATIVE 2 DEVELOP FOUR ADVISORY NOTES ON OHS FROM THE COE FOR SUBMISSION TO THE MINISTER.

The following advisory notes on OHS from the CoE have been submitted to the Minister

(a)

Develop Methodologies for The Measurement of Diesel Exhaust Emissions (DEE) and Diesel Particulate Matter (DPM).

(b)

Reproducibility of Digital -Ray and Analog -Ray Readings for Medical Surveillance in the South African Mining Industry to Determine the Reproducibility of Digital and Analog Chest Radiography for Detection of Silicosis and Silicosis Plus Pulmonary Tuberculosis.

(c)

Advisory Note on Minimum Standards for Confined Working Spaces at South African Mines.

(d) Guideline for the Compilation of a Mandatory Code of Practice for the Prevention of Flammable Flammable Gas and Coal Dust Explosions in Collieries. INITIATIVE 3 DEVELOP FOUR ADVISORY NOTES ON OHS SUMMIT ACTION PLAN FOR SUBMISSION TO THE MINISTER.

The following advisory notes on the OHS Summit Action Plan have been submitted to the Minister

(a) (b)

Guidance Note on Strengthening HCT (HIV Counselling and Testing) Uptake in the South African Mining Industry. Assessment of the Ergonomic Design of Self-contained Self-Rescuer (SCSR) Devices for Use by Women in Mining.

(c)

Guidance Note on HIV Self-Testing for the South African Mining Industry.

(d)

South African Mining Industry Strategy on Reducing TB and HIV. INITIATIVE 4 IMPLEMENT THE SIGNED MOU WITH M A ON MATTERS RELATED TO OHS.

A total of five ( ) meetings were held during the year to discuss implementation of actions in the Mo of rock engineers and seismologists and Phase 2 of the CoE Business Plan.

which include training

INITIATIVE 5 IMPLEMENT THE SIGNED MOU WITH STATUTORY BODIES ON MATTERS RELATED TO OHS. A total of four (4) engagements were held with partners. Two (2) meetings were held with MOSH on implementation of the barring booklet and collaboration on popularisation of the airborne pollutants guideline. A workshop was held with with CSIR to discuss and finalise proposals for Cottesloe seed funding. P and NIOH for popularisation of seed funding projects on

acoustic camera and Cytovivo microscope respectively. One meeting was held with CSIR to discuss and finalise proposals for Cottesloe seed funding. INITIATIVE 6 DEVELOP THE 2019/20 OHS ANNUAL RESEARCH PROGRAMME INCLUSIVE OF DISSEMINATION OF OHS NOWLEDGE AND INFORMATION AND COMMERCIALISATION OF RESEARCH OUTCOMES FOR SUBMISSION TO THE MINISTER. The 2019/20 OHS annual research programme inclusive of the dissemination of OHS knowledge and was submitted and approved by the Minister. As part of implementation of the 2019/20 programme, the Terms of References (TORs) were developed to commence the procurement process to appoint the service providers. Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019 NAME OF THE OBJECTIVE (CP02) PROMOTE A CULTURE OF OCCUPATIONAL HEALTH AND SAFETY IN THE SOUTH AFRICAN MINING INDUSTRY. DEFINITION PROMOTE AND COMM NICATE MHSC PRO RAMMES AND INITIATI ES TO ALL STA EHOLDERS IN ORDER TO IMPRO E OCC PATIONAL HEALTH AND SAFETY. PRIMARY MEASURE Percentage of achievement of initiatives

TARGET FOR THE YEAR 80%

ACTUAL 8 %

% OF TARGET ACHIEVED 100%

STATUS ACHIE ED

INITIATIVE 1 DEVELOP A PROMOTION, COMMUNICATION AND STA EHOLDER ENGAGEMENT STRATEGY AND PLAN FOR 2018/2019 FOR APPROVAL BY COUNCIL

The Communication and Promotion Strategy and Plan for 2018/19 was developed and approved through round robin by Council during March 2018 for implementation from April 2018. INITIATIVE 2 IMPLEMENT AN APPROVED PROMOTION, COMMUNICATION AND STA EHOLDER ENGAGEMENT STRATEGY AND PLAN.

As part of promotion of the culture of Occupational Health and Safety within the South African Mining Industry, the MHSC has conducted the following:

1. The MHSC has developed and distributed the MHSC uarterly maga ine, MHSC uarterly newsletter and uarterly CoE newsletter (which is attached to the MHSC uarterly maga ine).

2. The MHSC continued to be active on social media (Twitter). 3. The MHSC participated at the following events: 3.1 Coal Safe; 3.2 TB Conference and 3.3 Mining Indaba.

4. The MHSC hosted the following events: 4.1 4.2 4.3 4.4 4.5 4.6 4.7

omen in Mining orkshop; Health and safety awareness campaign; 2018 Mine Occupational Health and Safety Tripartite Summit; MHSC HI /AIDS Awareness Event; 20 years of MHSC exhibition; Theme based RTF Dissemination Plan and Occupational Health Dialogue.

5. The following activities have not been implemented: 5.1 The Commemoration of the Mining Disasters in South Africa which was initially planned for second uarter has been postponed to next financial due to non-availability of key stakeholders. 5.2

The MHSC engaged Exxaro mine in Mpumalanga to host and commemorate orld TB Day at their operation. A positive response was received from the mine to host the event. During the preparations, the mine realised that the date which TB Day was supposed to take place in March 2019, coincided with the production week of the mine and as a result the event was postponed to the 4th of April 2019. The event was held successfully, and its objectives were met but could not be reported in this report as it took place outside the reporting period.

INITIATIVE 3 PROMOTE AND COMMUNICATE THE CoE INDUSTRY ACTIVITIES, SUCCESSES, CHALLENGES AND CONTRIBUTIONS.

The MHSC promotes the CoE industry activities, successes challenges and contributions at the RTFs, through stations at events attended and uarterly newsletters. An information portal such as the revamped website, e-library, physical library are being updated for use by stakeholders. INITIATIVE 4 DEVELOP TARGETED DISSEMINATION PLATFORMS.

A dissemination plan with targeted platforms has been developed and implemented. Dissemination of information is tracked using the dissemination register. Dissemination strategy workshops was held with the auteng regional DMR inspectorate to strategise on targeted dissemination of OHS information. The long-term objective is to expand the dissemination workshops to other regions so as to strengthen and expand the MHSC targeted dissemination efforts. An assessment of the visibility of the MHSC was conducted during the Mine OHS Summit in October 2018 with the aim of assessing the level of visibility of the MHSC amongst stakeholders and other key issues relating to adoption of MHSC research outcomes. The outcomes of the survey indicated that visibility of the MHSC was still at an unacceptable level. To address the above gaps, the MHSC embarked on a process of developing a stakeholder mapping and management framework. The framework has been completed and will be used as basis of ensuring that promotion initiatives and consultations are in line with it which will increase the visibility. Other identified gaps will also be addressed during this current financial year. 22

Every mine worker returning from work unharmed every day. Striving for Zero Harm

TARGET FOR THE YEAR 80%

ACTUAL 8 %

STATUS ACHIE ED

% OF TARGET ACHIEVED 100%

INITIATIVE 5 PROMOTE ACCESS TO MINE HEALTH AND SAFETY INFORMATION WITHIN THE LOCAL MINING INDUSTRY

In order to create an occupational OHS knowledge hub that will create value for MHSC stakeholders, a process of revamping the website to ensure that it is user-friendly has since been finalised. The Research reports from previous and recently completed research have been loaded on the website, including promulgated guidance notes and guidelines. The MHSC ebsite Committee continues to monitor utilisation of the website on a monthly basis and continues to provide corrective measures where necessary to ensure the website is optimally functional. In addition to the above, a portal has been attached to the website to create a platform of engagement for the Chairpersons of RTFs to share best practices on OHS. NAME OF THE OBJECTIVE (IP01) CREATE AN OCCUPATIONAL HEALTH AND SAFETY NOWLEDGE HUB FOR THE SOUTH AFRICAN MINING INDUSTRY, THROUGH PROVIDING EFFECTIVE BUSINESS PROCESSES IN ORDER AND EFFICIENT BUSINESS PROCESSES. DEFINITION THE MHSC IMPLEMENTS THE INITIATI ES OF THE COE THRO H IDENTIFIED EFFICIENT AND EFFECTI E B SINESS PROCESSES IN ORDER TO CREATE AN OCC PATIONAL HEALTH AND SAFETY NO LED E H B FOR THE SO TH AFRICAN MININ IND STRY. PRIMARY MEASURE Percentage of achievement of initiatives

TARGET FOR THE YEAR 80%

ACTUAL %

% OF TARGET ACHIEVED 94%

STATUS NOT ACHIE ED

INITIATIVE 1 FACILITATE THE IMPLEMENTATION AND COMMERCIALISATION OF RESEARCH OUTCOMES.

Two (2) projects, namely the development of rock mass assessment tool and the development of collision management system for the mining industry have been identified for commercialisation and plans to initiate the process have been completed. Commercialisation of the identified projects will be implemented in the next financial year, once the market analysis has been conducted and the IP has been registered. To initiate the process of commercialisation and IP generation, the Dissemination nit developed a Standard Operating procedure (SOP) and plan and training on Intellectual Property (IP) was also attended by MHSC staff and relevant committee members. To ensure implementation of the activities in the SOP, a procurement process to procure a service provider to market analysis and Intellectual Property (IP) were initiated, however only the service provider for Intellectual Property (IP) was appointed. The procurement for a service provider for market analysis was non-responsive and alternative procurement methods are being followed to be finalised in the next financial year. INITIATIVE 2 MONITORING AND OVERSIGHT OF RELEVANT LABORATORY AND TESTING FACILITIES.

Quarterly reports as part of a seed-funding agreement were received from National Institute of Occupational Health, Enterprises niversity of Pretoria and niversity of itwatersrand. The reports provide progress on implementation of different facilities. All of them are still being operationalised and utilisation cannot be measured as yet, the expected seed funding utilisation will commence in the next financial year. CSIR Cottesloe contracts were finalised in March 2019 and funds disbursed for upgrading of the facilities as per business case approved by Council. INITIATIVE 3 ENSURE MA IMUM LOCALISATION OF TECHNOLOGY AND INNOVATION DEVELOPMENT AND COMMERCIALISATION ACTIVITY TO PROMOTE LOCAL S ILLS AND TECHNOLOGY TRANSFER.

Though no contracts were signed with commercialisation partners during the year under review, localisation and promotion of skills will be fast tracked by ensuring that the service providers adhere to the clause of sub-contracting thirty percent (30%) of all contracts above R3 million to be awarded to HDIs. MHSC also finalised expansion of CoE partners which will be used as a basis of ensuring that service providers collaborate with these partners. Commercialisation contracts will further enhance local innovation and promotion of local skills through IP licensing. The initiative is dependent on the market analysis and IP registration of the project identified for commercialisation. The initiative will be implemented in the next financial year upon registration of IP. INITIATIVE 4 IMPLEMENT RECOMMENDATIONS OF CoE PHASE 2 BUSINESS PLAN.

The CoE business plan for phase two (2) to develop a framework training of mineworkers was finalised. The development of the CoE business plan for phase two (2) took longer than anticipated and recommendations will only be implemented during the next financial year. INITIATIVE 5

MANAGE THE EFFECTIVENESS AND EFFICIENCY OF CoE PROJECTS.

Sixty seven (6 ) out of eighty three (83) milestones were delivered during the current financial year, resulting in the achievement of 81%. In order to measure the efficiency and effectiveness of CoE Projects, a matrix to measure the likelihood of adoption of research, adherence to budget by service providers, the time taken to deliver milestones and the impact of the research being conducted was developed and implemented by independent technical experts. Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019 NAME OF THE OBJECTIVE ((LG01) BUILD CAPACITY FOR THE MHSC. DEFINITION TO ENHANCE THE CAPACITY OF CO NCIL, AD ISORY COMMITTEE MEMBERS AND STAFF BY IMPRO IN S ILLS, NO LED E AND CAPABILITIES OF THE MHSC STAFF IN ORDER TO S PPORT THE CO NCIL TO MEET ITS OB ECTI ES. PRIMARY MEASURE Percentage of achievement of initiatives

TARGET FOR THE YEAR 8 %

ACTUAL 86%

% OF TARGET ACHIEVED 100%

STATUS ACHIE ED

INITIATIVE 1 DEVELOP A CAPACITY BUILDING STRATEGY AND PLAN FOR 2018/2019 FOR APPROVAL BY COUNCIL.

The Capacity Building Strategy and Plan for 2018/19 was developed and approved by Council in October 2018. INITIATIVE 2 IMPLEMENT AN APPROVED CAPACITY BUILDING STRATEGY AND PLAN.

The MHSC has implemented eighty-six percent (86%) 38/44 of the capacity building initiatives to enhance the skills and capacity for the success of the MHSC. The capacity building initiatives included the following amongst others: (a) Initiating and chairing disciplinary hearing; (b) Supervisory skills training; (c) Strategic supply chain management workshop; (d) Risk and compliance management workshop; (e) Firefighting and First Aider training; (f) Stakeholder management; (g) Compliance and monitoring training; (h) Corporate overnance and sustainability reporting; (i) RAP standards updates; (j) Rock Engineering training; (k) Mine Seismology training; (l) Project management; (m) Cyber security analysis; (n) Asset management workshop; and (o) Intellectual property and commercialisation. An additional training on Fourth Industrial Revolution was attended. Although the target of 86% was achieved the capacity intervention that were not implemented in the current financial year have been rolled-over to the 2019/20 financial year.

NAME OF THE OBJECTIVE (FP01) ENSURE FINANCIAL SUSTAINABILITY AND VIABILITY OF MHSC. DEFINITION ENS RE THE COLLECTION OF RE EN E TO ENABLE THE MHSC TO HA E ADEQ ATE FINANCIAL RESO RCES TO DELI ER ON ITS MANDATE. PRIMARY MEASURE Proportion of income collected

TARGET FOR THE YEAR 90%

ACTUAL 9 %

STATUS

% OF TARGET ACHIEVED 100%

ACHIE ED

INITIATIVE 1 ISSUING OF INVOICES TO MINES ON TIME.

The billing database was received from the DMR during September 2018 and validated for invoicing of the mines. The MHSC commenced issuing of the invoices to the mines during September 2018 and the billing was completed in October 2018. INITIATIVE 2 COLLECTION OF REVENUE FROM MINES IN TERMS OF THE MINE HEALTH AND SAFETY ACT(MHSA).

For 2018/19 financial year, a total of R 8 8 21 ,40 was levied to mines and a total of R 4 928 266,32 was collected resulting in ninety-five percent (9 %) achievement. INITIATIVE 3 AWARENESS CREATION OF THE NEW LEVY MODEL IN THE MINING INDUSTRY ON THE NEW LEVY MODEL. (1 WOR SHOP PER PROVINCE, NINE (9) IN TOTAL).

Awareness sessions on the revised levy model were held at the following provinces: No.

Date

Location

No.

Date

Location

0 February 2019

Free State

01.

12 March 2019

Mpumalanga

12 February 2019

North

02.

12 March 2019

Mpumalanga

03.

1 March 2019

auteng

wa-Zulu Natal

04.

19 March 2019

estern Cape

wa-Zulu Natal

0 .

2 -26 March 2019

06.

28 March 2019

01. 02. 03.

19 February 2019

04.

20 February 2019

0 .

21 February 2019

06.

21 February 2019

est

Limpopo

Eastern Cape

Northern Cape North

est

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019 NAME OF THE OBJECTIVE (FP02) OPTIMISE EFFECTIVE AND EFFICIENT MANAGEMENT OF FINANCIAL RESOURCES. DEFINITION ALI N E PENDIT RE TO B D ET TO ENS RE THAT STRATE IC OB ECTI ES AND ACTI ITIES ARE ADEQ ATELY F NDED. PRIMARY MEASURE Average percentage variance of spending against approved budget

TARGET FOR THE YEAR %

ACTUAL %

% OF TARGET ACHIEVED 100%

STATUS ACHIE ED

INITIATIVE 1 APPROVAL OF A ERO BASED BUDGETING BASED ON STRATEGIC OBJECTIVES.

The MHSC submitted the first draft of the budget in September 2018 and the final draft was submitted in anuary 2019 to the Department of Mineral Resources and Energy for approval. INITIATIVE 2 MONITOR SPENDING IN TERMS OF THE APPROVED BUDGET.

The monitoring of spending plans is ongoing. arious engagements were held with Business nit Heads to discuss the budget variances and revised projections during the financial year. The MHSC has implemented the spending plans to ensure spending against budget. The total expenditure for the year was R119 million compared to the budget of R124.9 million, which results in a variance of %. INITIATIVE 3 MONITOR PROCUREMENT IN TERMS OF THE PROCUREMENT PLAN

There was continuous monitoring of procurement against the Annual Forward Demand Procurement Plan (AFDPP). The MHSC experienced challenges in areas of research where the bids were non-responsive. Alternative procurement processes in line with the MHSC Supply Chain Management policy were followed and will be finalised in the 2019/20 financial year. INITIATIVE 4 APPROVAL OF PROCUREMENT PLAN.

The Procurement Plan for 2019/20 was approved and submitted to National Treasury in March 2019.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

2.2 SOURCES OF REVENUE

REVENUE COLLECTION 2018 2019

BUDGET R’000

INVOICED R’000

8,864

T ta

78 864

8,8 78 875

2017 2018

UNDER ACTUAL BUDGET COLLECTION AMOUNT R’000 R’000 COLLECTED R’000

4,928 74 928

(3,94 ) 3 947

INVOICED R’000

8,864

78 864

UNDER ACTUAL COLLECTION AMOUNT R’000 COLLECTED R’000

74 770

(4,094) 4 094

The MHSC issued invoices to mines in order to collect the levies. This is in line with section 98( ) of the Mine Health and Safety Act. The MHSC has reviewed the current levy model which was approved by Council The MHSC has rolled out awareness campaigns on the revised levy model in all provinces to educate the SAMI The invoicing using the new levy model will commence in 2019/2020 financial year for the 2021/2022 financial year as the new levy model re uires revenue collection to be in advance.

2.3

BUDGET MONITORING AND E PENDITURE

The spending on the budget was monitored on a monthly basis to ensure that the MHSC spends the budget on the planned objectives and within the re uired variance of five percent ( %). In order to further improve on the budget variance, the MHSC will be re-organising the financial management unit to enhance the current capacity.

2.4

BROAD BASED BLAC ECONOMIC EMPOWERMENT

The MHSC complies with the Broad - Based Black Economic Empowerment Act 3 of 2003, as amended by Act 46 of 2013 in the procurement of goods and services. The entity complies with the preferential procurement criteria in Code Series 400 which encourages procurement only from suppliers that are compliant with the B-BBEE scorecard. The MHSC will improve on the reporting to the B-BBEE Commission. The MHSC embarked on a process to widen the pool of research service providers and facilitate the entrance of previously disadvanta ged institutions of higher learning and other organisations to ensure their participation in the Occupational Health and Safety Research programme. National Treasury was also consulted to advise on the process which would ensure inclusivity of the institutions.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Part C OPERATIONAL HI HLI HTS

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.1

RESEARCH UNIT

3.1.1 Research operations and overview The MHSC conducted research through the CoE in various research thrust areas. To enhance and improve efficiency on delivery of projects, the MHSC has centralised all the projects with SIMRAC. This has allowed the other advisory committees of Council to focus on their respective mandates of advising Council on Occupational Health and Safety (OHS) policies, development of standards and implementation of the 2014 OHS Summit milestones. In order to address emerging issues on OHS in the SAMI whilst addressing long- term OHS challenges through research, Council took a decision that the CoE needed to review the MHSC research needs analysis and procurement process to be proactive rather than reactive and ensure that there was a focus on leading indicators rather t han lagging indicators. To embrace the concept of the Fourth Industrial Revolution in the research process, the MHSC hosted a workshop facilitated by experts in the field which was meant to increase awareness and understanding of the phenomenon amongst stakeholders and the impact it will have on the MHSC and OHS within the SAMI. The outcomes of the Fourth Industrial Revolution workshop was used to refine the research process. The SAMI experienced an increase in fatalities related to Falls of round (Fo ) and seismic disasters during the 201 calendar year. During the oversight visit by the PPC, the MHSC was re uested to establish a task team to address the risk of FO incidents in the SAMI. The MHSC established a Fo Task Committee with two (2)sub-task teams, namely the Rockfall Task Team (RFTT) and Rockburst Task Team (RBTT). The task teams have identified and prioritised interventions for implementation by the SAMI. One of the identified challenges which contributed to the increase in Fo and seismicity related accidents and fatalities was the shortage of critical skills in seismology and rock engineering. To build capacity in this critical skills, the MHSC in collaboration with the Mining Qualifications Authority (MQA) took a decision to assist with funding of forty (40) graduates to be enrolled for Rock Engineering and Seismology training development programmes

igure : A visit by the representatives of the MHSC and M A to the School of

Every mine worker returning from work unharmed every day. Striving for Zero Harm

eosciences at

its

niversity

MHSC ANNUAL REPORT 2018/2019

3.2

SUMMARY OF RESEARCH PROJECTS

3.2.1 Develop Methodologies for the Measurement of Diesel Exhaust Emissions (DEE) and Diesel Particulate Matter (DPM) In the SAMI a concern has been raised about DEE and DPM emissions from diesel powered e uipment, as they present an ongoing health risk to underground workers. Negative health effects, including cancer, are associated with the components of both DEE and d DPM that are formed in the incomplete combustion of diesel fuel and lubricant oil. The aim of the project was to develop feasible, accurate and robust methodolog ies to measure DEE and DPM and subse uently develop a guideline and Standard Operating Procedure (SOP) for the implementation of the measurements of DEE and DPM emissions. During the study, five ( ) methodologies were selected and tested in a controlled environment where emissions were tested using different engine cycles (e.g. idle or under load) according to ISO standard. The measurement methodologies were then evaluated in a mining environment. The study results concluded that the following measurements be recommended to the SAMI

3.2.1.1 NIOSH 5040 (DPM measured as Elemental Carbon (EC))

The laboratory analysing the samples using the NIOSH 040 Method report results in both elemental and organic carbon fractions. Adding these fractions together gives the total carbon elemental carbon found in diesel exhaust.

igure :

SH 0 0 Sampling

uipment

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.2.1.2. FLIR Airtech Real-time DPM

The Airtech monitor is a compact and highly portable real-time elemental carbon monitor designed to determine exposure of workers to diesel particulate matter (DPM) in underground mines. Airtech uses a real-time particle capture and light transmission method to yield elemental carbon values which closely correlate with NIOSH 040 test results to measure EC and TC levels in underground mines.

igure :

Airtech Sampling

uipment

3.2.1.3. Sub-micron Particle Mass Concentration Analysis

Studies, demonstrated how DPM concentrations from vehicles fluctuate under varying ventilation and operational conditions. These differences are suspected to be due to variations from mine to mine in aspects such as mine atmospheric contamination, vehicle fleet variations, fuel type, engine maintenance, engine combustion efficiency, engine behaviour or interference from other submicrometre aerosol. The particle mass concentration of DPM can be monitored with the techni ues described below amongst others.

(a) Tapered Element Oscillating Microbalance (TEOM) analysers TEOM analysers are widely used in conventional air pollution - monitoring systems. The 140 TEOM , Continuous Ambient Particulate Monitor is an example of a platform that continuously monitors PM but is small enough to be deployed in working environments. It is foreseen that this could potentially be used as part of a calibration and validation methodology but probably not as a final solution, owing to its cost.

(b) Beta-Attenuation Monitor (BAM) BAM is considered the most widely used PM measurement sensor type in conventional air pollution-monitoring processes. This system measures the sampled air through a si eselective inlet with or without a dryer element that reduces the relative humidity in the sampled air. The air then passes through a paper filter, which collects all the PM on the filter. The paper filter with PM is exposed to the Beta radiation source. After the measurement time-period, the mass of the PM on the filter is calculated by measuring the radiation intensity of the filter. Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.2.1.4. Gas-detection technology as-detection systems are designed to measure the concentration of gas molecules in the atmosphere, specifically in the DEE of diesel-powered e uipment. Different technologies are available depending on the need (i.e. continuous vs spot measurements) and the expected concentration of the gases (e.g. ambient vs exhaust emissions).

A) Electrochemical gas sensors ases migrate through a barrier and are chemically oxidised or reduced; the current that is produced from this chemical reaction is an indication of the concentration of the gas. Selectivity of the sensor may be a challenge in environments where multiple gases at high concentrations are present.

B) Infrared (IR) point sensor An IR beam passes through a volume of gas and the sensor energy is absorbed at a certain IR wavelength. The wavelength where absorption occurs is specific to a gas molecule and the amount of absorption is an indication of the gas concentration.

C) Semi-conductor sensors Semi-conductor sensors measure the concentration of a gas through a chemical reaction that occurs between the gas and the sensor; i.e. the electrical resistance is lower during the reaction. Typically, CO gas sensors are based on this technology, where small and simple gas molecules are detected. Breathalysers employ this technology to detect the amount of alcohol in exhaled breath. This technology may be improved to measure higher concentrations of complex gases that are found in DEE.

3.2.1.5. Denuder tubes One of the most common methods used to determine personal exposure to airborne pollutants is indirect analyses. An air sample is taken on a membrane filter (or sampling media) in the workplace and then sent away for analysis by a laboratory. The NIOSH 040 method is a thermo optical techni ue that distinguishes between Elemental Carbon (EC) and Organic Carbon (OC). NIOSH 040 is known for the measurement of EC as a marker for DPM (Birch, 2003). As the sample is taken on a filter membrane, additional analysis can be conducted on the filter for other pollutants, such as metals or PAHs (Mahlangu et al, 2016).

The study also concluded that two (2) or more of the above mentioned methodologies can be combined to obtain a good understanding of the diesel exhaust emissions (DEE) and diesel particulate matter (DPM) concentrations in the employeesâ&#x20AC;&#x2122; breathing one, the workplace or the raw exhaust of a machine.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.2.2 Develop the Minimum Standards for the Management and Monitoring of Confined Wor ing Spaces at Mines. The South African mining industry never had any formal legislative standard or guidelines in respect to the management of work in confined spaces. In light of the fact that there was a constant occurrence of confined space related incidents reported in the SA Mining Industry in the recent past, a need for some interventions to facilitate the safe entry and work in confined spaces was identified. The aim of this project was to develop minimum standards for adoption and implementation of robust and effective strategies in the South African mining industry for the control and management of working in confined spaces. The project established that effective prevention and management of confined space incidents in the mines warrants the adoption, implementation and monitoring of formal and robust preventive measures amongst SA Mines. The adoption and implementation of a guiding document for orking in Confined Spaces will promote a safer and healthier workplace in the SAMI. It was hence recommended that a uidance Note be developed as the primary output of the study to be used by the mining sector; and such uidance Note be made available to all key stakeholders in the sector.

igure :

amples of confined work spaces

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.2.3 The reproducibility of digital and analog x-ray readings for medical surveillance in the South African Mining Industry to determine the reproducibility of digital and analog chest radiography for detection of silicosis and silicosis with pulmonary tuberculosis. The main aim of this research was to determine whether medical surveillance chest radiography using the new digital technology gave similar results as the traditional analogue chest radiography in the identification of silicosis and pulmonary tuberculosis in the SAMI. The traditional analogue chest radiography is still used by most mines within the SAMI and many health facilities in previously called labour sending areas . Historically, mine medical surveillance programs utilised traditional analog film chest radiographs for the diagnosis of Occupational Lung Diseases (OLD). However, since 2004, digital radiographic e uipment began to be installed at health services of larger South African mines. Of importance is that historic analog film chest radiography continues to be used in the health facilities in remote rural areas of South Africa and surrounding countries, where most migrant ex-miners live and re uire continued benefit medical surveillance as stipulated by the Occupational Diseases and Mines Act (ODM A). To this end, there is no local guidance on printing digital films onto hard copies or CDs for submission to the Medical Bureau for Occupational Disease (MBOD) to be used in evaluating OLD including standardised interpretation of digitised films. There is also no local standardised guidance for use in interpreting digital chest x-rays in a silicosis and tuberculosis prevalent situations. The interpretation of chest x-rays within the South African mining context is compounded by the co-existence of silicosis and pulmonary tuberculosis which renders interpretation even more difficult.

igure 8:

amples of the 8 Chest

adiographs evaluated

The study concluded that soft-copy (digital images displayed on a suitable computer monitor) readings can be supported because it is e uivalent to historic analogue film for reading silicosis. From the outputs of the research the Minister approved the following recommendations for implementation in the SAMI Development of a uidance Note to improve on the uality of digital chest x-rays as outlined in the research output praxisâ&#x20AC;&#x2122; journal article. MHSC to collaborate with DoH; SANAS and ILO on the outcome of the study. Training of all relevant professionals tasked with interpretation of C Râ&#x20AC;&#x2122;s of a mine worker both in-service or out-service using the set of 48 sets produced as part of the research output.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.3

SUMMARY OF SEED FUNDED PROJECTS

The operating model of the Centre of Excellence at the MHSC include the provision of seed funding of identified research partners facilities. The seed funding is utilised to revitalise, upgrade research facilities and ensure availability to the SAMI when re uired. Seed funding was disbursed to the niversity of Pretoria, niversity of the itwatersrand, CSIR and NIOH. The CoE partners are re uired to submit uarterly reports to the MHSC to monitor the implementation of the projects and allow for an assessment of return on investment.

3.3.1 Acoustic laboratories at the University of Pretoria(UP) Noise in the SAMI environment remains a challenge and is usually caused by multiple sources and mechanisms. To obtain significant overall noise reductions re uires a detailed understanding of the exact noise sources, their locations, their relative importance in terms of their contribution to noise, etc. The MHSC is currently conducting investigations to detect the sources of noise using acoustic camera. The acoustic camera employs multiple sensors in complicated arrays, and the subse uent processing of the data with sophisticated software is making the sound fields visibleâ&#x20AC;&#x2122; and provides a very productive means of identifying the hot spots where attention needs to be focused. Once demonstrated and commissioned, the camera will assist the SAMI to: Accelerate noise sources location by increasing the results accuracy Increase the effectiveness of analysing moving noise sources Increase the effectiveness of silencing strategies.

Figure 9: Acoustic Camera field study in a Dragline machine house

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Figure 10: Noise source detected from a truck

3.3.2 Analytical laboratory services at the National Institute for Occupational Health (NIOH) The initial 2D Cyto iva system consisted of a dark -field microscope with high signal -to-noise image capability, a normal imaging camera with fluorescent capabilities. It was not possible to identify particles in histological lunch tissue samples from post mortem . The new 3D System is capable of providing particle localisation present within different intracellular organelles. This will assi st in establishing links between occupational exposure and diseases. ith this system it is possible to create a 3-dimentional representation of both nano-and micro-scale objects in the contexts of their surroundings matrices and hence determine the mechanisms of toxicity. It also allows one to determine the exact location of particles within the cell membrane, cytosol and/or organelles.

Figure 11: CytoViva 3D upgrade System

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Figure 12: Image acquired of a bronchial epithelial cell using the CytoViva fluorescent capabilities. The nucleus is stained blue, and the microtubule cytoskeleton is stained green

Figure 13: The 3D image of a bronchial cell with internalised silica particles, rotated at different angles, obtained via the CytoViva 3D upgrade. (No staining required)

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.3.3 Upgrading the Rope Testing Laboratory Information Management System (LIMS) The CSIR rope testing laboratory offers the service of statutory winder rope testing to all the underground mines in the SAMI that uses winder installations. Six monthly destructive tensile testing of winder rope front end test pieces are mandatory for all ropes of licensed winders in terms of the MHSA regulations. The CSIR rope testing facility is one of two approved testing authorities (ATA) mandated by the DMR E to carry out the statutory winder rope testing and is currently the only ATA accredited according to SANAS ISO 1 02 standard. The laboratory has not ke pt pace with modern Laboratory Information Management Systems (LIMS) which facilitates tracking and traceability of specimen and test results throughout the specimenâ&#x20AC;&#x2122;s life in the laboratory. pgrading the existing LIMS will improve efficiency of the laboratory operations, resulting in shorter turn-around times. Safety critical rope condition information will be available in time to inform management decision making.

Figure 14: CSIR rope testing laboratory

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.3.4 Upgrade the 1000 tonne Compression testing machine by installing a hydraulic power pac capable of meeting the testing re uirements of the Mining Industry

The 1 000 tonne compression testing machine is routinely used to evaluate the mine roof support performance of a variety of systems including packs (grout, wood, composite packs), poles, clusters and hydraulic props. It is one of the only two testing machines in South Africa that can test a full si e mine pack up to 1 000 tonne compressive resistance, and the only one of this capacity operated by an independent institution. The existing hydraulic power pack of the 1 000 tonne CSIR compression testing machine is eighty (80) years old and has reached the end of its useful life. Replacing the power pack with a suitable modern version will restore the capability of the machine and enable the laboratory to meet the mine support testing re uirements of the industry, especially in testing of full-si e roof support packs of various designs. The impact on industry will be the availability of an independent testing facility that can provide compression testing up to 1 000 tonne. -

Figure 15: 1 000 tonne CSIR compression testing machine

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.3.5 Breathing Simulator for Self-Contained Self Rescuers The utilisation of the existing two (2) CSIR breathing simulators for the Self - contained Self-rescuer (SCSR) Laboratory is approaching hundred percent (100%). This is likely going to pose a risk to mine workers because of limited availability of testing facilities for SCSR. There is limited capacity with increasing demand for testing. An increasing trend in the number of SCSR units tested annually indicate that an additional breathing simulator will be re uired in the near future. By e uipping the laboratory with an additional breathing simulators will improve the turnaround time for conducting mandatory tests.

Figure 16: Current Breathing Simulator at CSIR Cottesloe

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.3.6 Wits Drone Seed Funded Pro ect The industry experienced fatalities of Mine rescue personnel due to exposure to ha ardous environment There are records of mine employees being overcome by gasses, smoke or harmful airborne pollutants following access to contaminated workplaces. MHSC embarked in developing and testing an nmanned Aerial ehicle ( A ) to address the safety of miners in accessing ha ardous workplaces. The underground A or drone has capabilities of reducing exposure of Mine personnel to ha ardous environment which includes data collection and Mine rescue operations. The A functionality will include the following: Monitor rock mass movement, assess air uality, position, map, communicate, and will have an integrated software for real-time decision making Providing mining management with real-time overview of the mine shafts, including the locations of mining staff Ha ard detection, such as potentially dangerous structural changes to the mine shaft To assist search and rescue teams in case of emergency situations Collecting evidence in active illegal mining operations.

Figure 17: Drone and drone excess areas

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.3.6 REVIEW AND DEVELOPMENT OF REGULATIONS, GUIDELINES AND GUIDANCE NOTES In terms of MHSCâ&#x20AC;&#x2122;s strategic goals, the MHSC reviews and advises the Minister on regulatory mechanisms, in compliance with the provisions of the MHSA through the Mining Regulations Advisory Committee. This is achieved through completing work on reviewing and proposing changes to OHS legislation; interacting with other statutory bodies concerning matters relating to OHS; and refining Council policies with regard to appropriate changes to regulatory mechanisms and guidance materials. The following factors are considered throughout the process of reviewing or developing legislation: 1. Technology advancement 2. Regulatory impact assessment outcomes 3. Mining industry developments and changes 4. Continued relevance of regulations . Regulations implementation challenges 6. Other relevant legislation The MHSC has a responsibility to ensure that the current regulations, guidelines and standards are in line with the SAMI re uirements and thus effective in improving health and safety in the mining industry. R at r R Pr ra An advisory report on the regulatory review programme was sent to the Minister for approval. The programme included the following topics: Appointments duties and responsibilities Electricity Explosives Trackless mobile machinery Protection of the surface and the workings, and Certificates of competency MHSC has commenced with the review of regulations of the MHSA as approved by the Minister. Table 2 below shows guidelines for mandatory codes of practice that have been developed by the MHSC. The guidelines were developed in order to assist the SAMI to comply with mining health and safety legal provisions

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019 Ta

2 G

GUIDELINE TOPIC

MHSC

P r

AIM OF THE GUIDELINES

rR COMMENT

The uideline was developed with the aim of assisting the employer at a mine to manage all aspects associated with the deployment of self-contained self rescuers (SCSRs) and to ensure that the life-saving potential of these units is realised. This would ensure that risks associated with irresparable atmospheres are minimised. Furthermore, the guideline includes relevant re uirements of regulation 16.2 of the MHSA. This regulation provides guidance as to which classes of mines or instances where the use of self-contained self-rescuers is deemed mandatory.

The MHSC will facilitate workshops in the SAMI to disseminate and create awareness on the MCOP.

The main objective of the uideline is to assist coal mine employers in preventing and / or reducing the risk of an ignition of flammable gas through the implementation of good ventilation practices.

The MHSC will facilitate workshops in the SAMI to disseminate and create awareness on the MCOP.

uideline for compilation of a mandatory code of practice (COP) for the management of self-contained self-rescuers in mines.

uideline for the compilation of a mandatory code of practice for the prevention of flammable gas and coal dust explosions in collieries.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.4

DISSEMINATION OF RESEARCH OUTCOMES

The purpose of dissemination is to promote best practice and reach targeted audience as part of promoting the culture of health and safety in the SAMI. MHSC has strengthened its partnership with the MQA, TIA, MOSH and the RTFs which provide dissemination platforms for the work of MHSC. The MHSC has packaged the outcomes of the following two (2) research projects for development of training interventions on OHS with MQA: 1. Technology transfer on minimising seismic risk in the platinum mines The purpose of the project is to enable the training of mine personnel in seismic risk mitigation and to improve the related practice of data and information collection. The material provides simple rules on how to mitigate seismic ha ards by motivating best practice to reduce conditions prone to seismic failure in P M mines. 2. Identify opportunities to improve the safety of barring down practices . The project was intended to facilitate the identification of opportunities to improve the task of barring down; one of the underground mining tasks with which underground employees affected or impacted by falls of ground incidents or accidents were involved with when the fall of ground incident occurred. The outcome of the research project was the compilation and distribution of training materials presented in the form of interactive and illustrative modules. To enhance the process of technology development , the MHSC has identified commercialisation opportunities on the following two (2) projects: 1. Assess the Feasibility of Developing Collision Management Systems for South African Mines . The project was undertaken to evaluate different collision avoidance technologies, analyse identified scenarios and determine specifications for warning, retarding and stopping technologies based on a combination of simulation and testing and establish a test and simulation capability and standard verification methods to evaluate collision management systems. sy

igure 18: Collision Management System

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019 2. Development of Rock Mass Conditioning Assessment Tool . The aim of the project is to identify and further develop fit-for-purpose tools that will be efficient and accurate to assess rock mass conditions.

igure 19:

ock mass assessment tool final prototype

In addition, the MHSC has appointed the services of a duly ualified Intellectual Property (IP) attorney to initiate the process of filing for IP for all MHSC research outputs with novelty and commercial potential. To further enable the prospects of commercialisation of MHSC research, the MHSC plans to appoint the services of market consultants to assess the market feasibility, guide the commercial route and develop business models for commercilisation

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.5

PROMOTIONS AND COMMUNICATIONS HIGHLIGHTS

The MHSC uses events such as the OHS Summits; RTFs, OH Dialogues, and stakeholder workshops and conferences for the purpose of providing platforms to discuss OHS issues affecting employees in the SAMI. These platforms create an enabling environment where engagements take place with tripartite stakeholders on specific OHS challenges in the SAMI. To further improve the MHSC ability to achieve its strategic objective of promoting a health and safety culture in the SAMI, a communication and promotion strategy was developed for implementation. The strategy was based on environment scanning to determine the gaps identified and consideration for enhancement of stakeholder engagements. These events further provide the following benefits to the MHSC:

(a) Better industry insight and understanding of the OHS issues faced by different regions that re uire MHSC interventions. (b) Platform to engage the MHSC dissemination targeted audience mainly being miners on the coal face. (c) Targeted dissemination platform that allows the MHSC to disseminate research outcomes relevant to specific regions and thus maximising impact. (d) Fostering of strategic partnerships that will enable and enhance the MHSC ability to achieve its mandate. Below are some of the communications, stakeholder and promotions initiatives that were successfully implemented:

3.5.1 Women in Mining (WiM) Wor shop The MHSC is currently implementing the Culture Transformation Framework (CTF) which includes the pillar to eliminate genderism, racism and discrimination. To address gender-related issues in the SAMI the MHSC developed a iM Programme focusing on provisions of proper PPE, safety and security issues and prevention of sexual harassment. Based on the above, the MHSC hosted a IM orkshop to solicit further research topics to address OHS challenges faced by the IM. MHSC is committed to identifying additional initiatives to improve health and safety of omen in the SAMI. The iM conference was held on the 23rd and 24th of August 2018.The MHSC continued its efforts of â&#x20AC;&#x153;promoting the health, safety & security of WiM in the SAMIâ&#x20AC;?

igure 20:

elegates at the

Every mine worker returning from work unharmed every day. Striving for Zero Harm

iM conference

MHSC ANNUAL REPORT 2018/2019

3.5.2 2018 Mine Occupational Health and Safety Summit The DMRE and the MHSC hosted the Mine OHS Tripartite Summit on the 18th to the 19th October 2018. The Summit is in line with the MHSC mandate provided for in Section 43 (e) of the Mine Health and Safety Act (MHSA), which states that the MHSC must at least every two (2) years, arrange and coordinate a tripartite summit to review the state of OHS at mines. The Summit was held under theme of every mine worker returning from work unharmed every day . The Honourable Minister wede Mantashe, delivered the keynote address and emphasised the need to take implementable decisions that can assist the industry not only to reduce the number of fatalities but also to reduce accidents that have led to the deaths of mineworkers. The Minister urged all mining stakeholders to demonstrate outrage after every accident and take the necessary measures to make sure that lives are not lost in the mining sector . Principals from organised labour and employers provided their perspectives regarding challenges and measures that should be implemented to ensure sustainable OHS improvement. The st akeholders also engaged through commissions on various topics that needed urgent attention which included: The right to refuse dangerous work and leave dangerous working places, Falls of grounds and seismicity, Leadership, incentive schemes, Prevention of occupational lung diseases, Reduction of TB, HI and AIDS infections, Noise, Fires and explosions The MHSC consolidated the outcomes of the deliberations at the commissions and incorporated them into the Summit Action Plan for implementation. The Minister acknowledged that there were key learnings to be drawn from the two-day Summit; however, of importance is to take those learnings and begin to implement the recommendations made. He reflected that the presentation on HI /AIDS and TB shed some light on the current health challenges and noted that statistics on HI / AIDS, TB and other infectious diseases must be linked to the region for appropriate interventions. Subse uent to the Summit, a report and a cabinet memorandum with key outcomes was submitted with an implementation plan with clear actions and timelines for implementation through Advisory Committees. Monitoring of the implementation will be on a uarterly basis and the consolidated report will be provided during the next Summit in 2020.

igure 21:

elegates at the

HS Tripartite Summit 2018

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.5.3 Commemoration of World Aids Day The orld AIDS Day ( AD)was the first ever global health day and was first held in 1988. The event is held on the 1st of December each year and is an opportunity for people worldwide to unite in the fight against human immunodeficiency virus (HI ) and Aids, and to show support for people living with HI /AIDS. The SAMI has initiated various HI /AIDS and tuberculosis (TB) programmes over the past 10 years. This has resulted in the reduction of recorded TB rates in the mines, however more work still needs to be done, for the rates to be below the national average, as per the Mine Occupational Health and Safety Summit milestones. In support of the Minister of Healthâ&#x20AC;&#x2122;s initiatives, in addressing the scourge of HI and AIDS including TB, the MHSC hosted the orld AIDS Day Commemoration on the th of December 2018 at the Olympia Park Stadium in Rustenburg. The event was held in collaboration with the North est Province local and district municipality, Department of Health (DOH) and platinum mines based in Rustenburg at Bojanala District. ey speakers at the event included officials from the overnment and Non - overnmental Organisations (N Os).

The theme that was adopted for the AD commemoration was Cheka Impilo: now your status . The theme was adopted in support of the National ellness campaign that is a call for South Africans to move from a curative response to health to preventative approaches and to adopt healthy lifestyles. The National wellness campaign re uires for focus on (a) Increasing information, education and communication activities on HI and TB; (b) Promoting HI testing, screening for STIs, TB and non-communicable diseases such as diabetes and hypertension; (c)

idespread distribution of condoms; and

(d) Provision of pre and post-exposure prophylaxis against HI . The MHSC will further collaborate and formalise with N Os with the Department of Health at local level to ensure that there is continuous support and provision of health services to supplement existing government services in communities.

igure 22:

orth

est Province Premier and M C for Health at the

Every mine worker returning from work unharmed every day. Striving for Zero Harm

orld A

ay vent

MHSC ANNUAL REPORT 2018/2019

3.5.4 Occupational Health (OH) Dialogue The OH Dialogue is intended to conscientise the South African Mining Industry (SAMI) to put more focus on OH- related matters, because it has been found that the sector continues to report a concerning number of occupational diseases than all the other sectors. In addition, the long latency period from occupational hygiene exposure to disease manifestation has also contributed significantly to lack of urgent responses being considered to address health related matters in the past. The Occupational Health (OH) Dialogue was hosted in March 2019 under the theme, Shaping the future of Occupational Health in SAMI . The focus was on 4th industrial revolution in relation to health , The Cannabis judgement and the impact of substance abuse on fitness to work and orkplace Mental Health , employeeâ&#x20AC;&#x2122;s health as it has been documented and proven that a healthy workforce is an essential prere uisite for productivity and economic development. The OH Dialogue is envisaged as the platform that would serve to provide key strategic solutions that the mining industry could utilise in order to attain the goal of promoting Zero Harm that leads to the achievement of optimal health . Robust discussions on occupational health matters, the control of exposure to ha ardous agents, the prevention of occupational diseases and the promotion of workers health and well being were held.

igure 2 :

elegates at the

ialogue vent

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.5.5 Fourth Industrial Revolution (4IR) Wor shop During the 2018/ 2019 financial year, Council resolved to host a workshop to introduce the concept of the 4IR to the MHSC and its stakeholders. It was agreed that MHSC and its stakeholders needed to clearly and fully understand and engage with the 4IR and consider how it is going to impact on the work of the MHSC and the sector, particularly with regards to Occupational Health and Safety (OHS) and related implications to jobs in the sector. During deliberations, it was further established that the MHSC is better positioned in the implementation of Digital Transformation Programme starting with the Staff, Management, Leadership, the Council and Committees. Digital Transformation refers to converting processes, activities and models to meet digital economy re uirements until the organi ation is a fully networked digital organi ation to embrace the elements of the 4IR. The outcomes of the workshop were the development of uick win projects for implementation by the MHSC and interventions to address the impact of the Fourth Industrial Revolution on OHS in the SAMI

igure 2 :

elegates at the

orkshop

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.5.6 Mining Indaba 2019 The Mining Indaba Conference is held is South Africa annually with the aim of driving investments in the African content. The MHSC has been participating at the conference in view of the mandate of promoting and communicating MHSC research outcomes in line with the organisationâ&#x20AC;&#x2122;s strategic objective. Of importance is that a range of topics are covered in the programme including how investors should consider the implications that investing in the industry has on Occupational Health and Safety (OHS). The Mining Indaba provided a platform for the MHSC to share the research work undertaken within the organisation with the stakeholders within the SAMI and also outside the South African borders, for example, exchange of information with the delegates from the Ministry of Mineral Resources in Nigeria. MHSC intends to collaborate with e uivalent international institutions to exchange information on the best practices, for example, how hana is dealing with the challenges on illegal mining and environmental degradation. In line with the African Mining ision, regional and continental collaboration in the mining sector should be encouraged. The MHSC also participated on a panel discussion on occupational health and safety (OHS) on Reducing Operational Risk: An Imperative for the Mining Industry . The panel included Dr Si we Phakathi who is a Council member.

igure 2 : Mining ndaba Panel

Every mine worker returning from work unharmed every day. Striving for Zero Harm

iscussion

MHSC ANNUAL REPORT 2018/2019

3.5.7 Mine Safe Conference The MHSC participated at the South African Institute of Mining and Metallurgy (SAIMM) Mine Safe conference held at allagher Estate in Midrand in August 2019 by showcasing OHS research outcomes in different thrust areas. The CoE manager, Mr. acob Boshielo gave a presentation on MHSC â&#x20AC;&#x201C; the 20-year journey and contributions to OHS in the South African mining industry , and delegates had an opportunity to interact with MHSC members at the exhibition stands. MHSC research materials were disseminated to the delegates at the exhibition. The conference is a platform for learning and allows people from across the industry to share ideas on achieving Zero Harm in the SAMI. The Mine Safe Conference focuses on improving health, safety and the environmental impact in the mining and metallurgy industry and highlights the actions to be taken. The purpose of the conference was to bring together management, DMRE, Minerals Council South Africa, Organised labour and health and safety practitioners to share best practice and successful strategies for Zero Harm and a value-based approach to health and safety. The Conference was supported by Employers, the Department of Mineral Resources, Mine Health and Safety Council, Minerals Council South Africa, Employee Representative Organi ations such as Association of Mineworkers and Construction nion (AMC ), National nion of Mineworkers (N M), Solidarity and nited Association of South Africa ( ASA).

3.5.8 23rd Coalsafe Conference The Coalsafe Conference is an annual event hosted by the South African Colliery Managers Association (SACMA). The Conference aims to bring together stakeholders in the mining industry, in particular those in the Coal mining sector, to share leading and best practices in the industry to improve health and safety of employees and communities affected by coal mining activities. The 23rd Coalsafe Conference was hosted in April 2018 in Secunda Mpumalanga Province. The event was aptly themed Our Mines, Our Safety, Our Responsibility and was aimed at delegates sharing sound practices to highlight the industryâ&#x20AC;&#x2122;s commitment to operate in a responsible manner and always considering its impact on the health and safety of employees and communities within the coal mining areas and the protection of the environment. Representatives from the MHSC CoE Dissemination nit attended the Conference to showcase research outcomes and initiatives that could assist the sector in improving performance in OHS. ith members attending the Coalsafe conference, MHSC is kept up to date with developments within the coal mining industry with regards to health and safety. The Conference also provides an opportunity for members of the MHSC to engage with participants and experts within the coal mining industry and disseminate coal related research outcomes to participants. ith Safety, Health, Environment and Community (SHEC) Standards being top of the agenda at all Coalsafe conferences, the event is always concluded on a high note with the presentation of the SHEC awards to recognise organisations and individuals who performed exceptionally well in these areas within their organisation and disciplines.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

3.5.9 Regional Tripartite Forums Regional Tripartite Forums (RTFs) are established for the purpose of providing a platform to discuss OHS issues affecting the SAMI. The forums create an enabling environment where engagements take place with tripartite stakeholders on specific regional challenges. It is for this reason that the Council took a decision to support RTFs and use them as a channel to promote and disseminate MHSC research outcomes. The MHSC office appointed Technology Transfer nowledge Facilitators to ensure that they drive the MHSC dissemination strategic objective through RTFs. Their roles include the following (a) Have insight and understand OHS issues faced by different regions that re uire MHSC intervention and give feedback on responses/initiatives from MHSC. (b)

ive timeous updates on MHSC activities (research outcomes, initiatives etc), upcoming events and workshops.

(c) Disseminate research outcomes specific to regional OHS challenges in the form of pres entations and literature (books, pamphlets etc).

(d) Provide overall strategic direction and maintain control of RTF meetings so regions do not deviate from guideline constitution of RTFs. The RTFs have been an excellent platform to reach tripartite stakeholders in different regions and also reach different mining operations through their representatives. The deployment of the CoE TT Fs have also fast tracked the dissemination of these outcomes. During the current financial year, the MHSC collaborated with RTFs to establish structures in all regions.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

IM regional

MHSC ANNUAL REPORT 2018/2019

3.6

STA EHOLDER MANAGEMENT

During the operationalisation of the Centre of Excellence the MHSC acknowledged the need to establish a dedicated Stakeholder Management nit to refocus its efforts of strengthening tripartite relationships. Stakeholders are a valuable part of the MHSC, influencers and interested parties to the organisationâ&#x20AC;&#x2122;s success. The MHSC strives towards establishing and maintaining good and constant interaction with stakeholders. Stakeholder initiatives include hosting the summits and other awareness campaigns. The MHSC can only achieve its mandate in collaboration with the Stakeholders creating awareness and influencing behaviour in the SAMI. The MHSC agreed to host a bi-annual Principals meeting to review and evaluate the status uo of health and safety in the mines and to give direction and determine the best way forward in the MHSCâ&#x20AC;&#x2122;s undertakings.

The MHSC further developed a Stakeholder-mapping strategy and document which outlines the relationships that we want to foster and build on to further the mandate of the Organisation and stimulate conversation and change on OHS in SAMI. From this strategy, the MHSC will identify strategic partners and formulate agreements with tangible outcomes for implementation to impact on Health and Safety in the mines.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Part D GOVERNANCE

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

4.1

INTRODUCTION

The MHSC is committed and embraces the fundamental principles of good governance, transparency, integrity, accountability and responsibility as set out in the PFMA (Act No. 1 of 1999, as amended) and Treasury Regulations. Council is appointed by the Minister in accordance with the provisions of Section 42 of the MHSA (Act No. 29 of 1996) as amended.

Council is a tripartite structure and is composed as follows: Five ( ) members from state including the Chairperson; Five ( )members from employer organisation; and Five ( ) members from Organised labour organisations. The Council engaged with the PPC during the 2018/19 financial year with regards to the following: (a) Presentation of the 2018/19 annual performance plan; (b) Presentation of the 201 /18 annual report and (c) Occupational Health and Safety Summit.

The MHSC submitted statutory reports to the Minister for approval as legislated by the PFMA for the period under review. The submitted statutory reports included the following: (a) 201 /18 Audited Annual Report; (b) 2018/19 Quarterly Management Reports and (c) 2019/20 Annual Performance Plan.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

4.2

COUNCIL

The Council is the Accounting Authority of the MHSC. Its roles and responsibilities are outlined in the Council Charter. As the accounting authority, Council ensures that the MHSC maintains the following: (a) Effective, efficient and transparent systems of financial and risk managment and internal control. . (b) A system of internal audit under the control and direction of an audit and risk committee complying with and operating in accordance with regulations and instructions prescribed in terms of sections 6 and of the PFMA; and (c) Ensure adherence to an appropriate procurement and provisioning system which is fair, e uitable, transparent, competitive and cost effective. During the 2018/19 financial year, the Council held ten (10) meetings of which two (2) were special meetings. Membersâ&#x20AC;&#x2122; attendance of Council meetings and the number of meetings held in the year are shown in the table below

STATE

Mr. D. Msiza (Chairperson)

Mr. M.M.A ondi (Acting Chairperson)

Dr. L. Ndelu

Ms. C. Kekana

Mr. V. Mahwasane

ORGANISED LABOUR

Mr. M. Nhlapo

Mr. S. Mungwe

Mr. F. Stehring

Adv. P. Mardon

Mr. G. Nkosi

Mr. P. Temane

Mr. I. Pillay

EMPLOYERS

Dr. S. Phakathi

Dr. T. Legobye

Mr. S. Sepetla

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019 Table : Council members attendance of meetings including special meetings MEMBER NAME PER STAKEHOLDER

TOTAL TOTAL NUMBER OF MEETINGS

MEETINGS

COMMENTS ON MEMBERSHIP AND ATTENDANCE

ATTENDED

GROUPING

STATE Mr. D. Msiza

Returned 01 September 2018

Acting Chairperson 01 April 2017 to 31 August

(Chairperson) Mr. M.M.A ondi (Acting Chairperson)

2018

Dr. L. Ndelu

Alternate attended on behalf of a member

Ms. C. Kekana

Alternate attended on behalf of a member

Mr. V. Mahwasane

Alternate attended on behalf of a member

Mr. T. Ngwenya

Alternate attended on behalf of a member

ORGANISED LABOUR Mr. M. Nhlapo Mr. S. Mungwe

Alternate attended on behalf of a member

Appointed

October

2018.

Alternate

attended on behalf of a member

Mr. F. Stehring

Alternate attended on behalf of a member

Adv. P. Mardon

Alternate attended on behalf of a member

Mr. G. Nkosi

Alternate attended on behalf of a member

EMPLOYERS Dr. S. Phakathi

Attended all meetings

Dr. T. Legobye

Alternate attended on behalf of a member

Mr. S. Sepetla

Alternate attended on behalf of a member

Mr. P. Temane

Alternate attended on behalf of a member

Mr. I. Pillay

Resigned uly 2018 no replacement, however, alternates always attended from Employers and quorum was always obtained

The Council is assisted by the following seven ( ) advisory committees that provide strategic support. (1) Audit and Risk Committee (ARC). (2) Human Resources and Remuneration Advisory Committee (HRRAC). (3) Safety in Mines Research Advisory Committee (SIMRAC). (4) Mining Regulations Advisory Committee (MRAC). ( ) Mining Occupational Health Advisory Committee (MOHAC). (6) Mining Industry TB and HI /AIDS Advisory Committee (MITHAC). ( ) Culture Transformation Advisory Committee (CTAC).

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

4.3

AUDIT AND RIS

COMMITTEE (ARC)

The ARC is constituted to review the internal control, governance and risk management within the MHSC as provided for in terms of section of the Public Finance Management Act (PFMA). The ARC also provides an oversight on the activities of internal audit, Auditor eneral, financial management and compliance management. During the 2018/19 financial year, the ARC had a total of nine (9) meetings which two (2) were special meetings whilst seven ( ) were ordinary meetings. Membersâ&#x20AC;&#x2122; attendance of ARC meetings and the number of meetings held in the year are shown in the table below. Table : A C members attendance of meetings including special meetings TOTAL

MEMBER NAME PER STAKEHOLDER

TOTAL NUMBER OF MEETINGS

MEETINGS

COMMENTS ON MEMBERSHIP AND ATTENDANCE

ATTENDED

GROUPING

INDEPENDENT MEMBERS No alternate for independent members Ms. N. Madiba (Chairperson)

Ms. T. Njozela

Mr. R. Adam

Mr. G. Higgins

6 STATE

Ms. E. Lavhengwa

No alternate for the State nominated for the period

ORGANISED LABOUR Mr. . Hugo

Alternate attended on behalf of a member

Mr. P. Manyathi

Alternate attended on behalf of a member

Mr. . Boning

Alternate attended on behalf of a member

EMPLOYERS Ms. . Broderick

Alternate attended on behalf of a member

Mr. P. Temane

Alternate attended on behalf of a member

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

4.4

HUMAN RESOURCE AND REMUNERATION ADVISORY COMMITTEE (HRRAC)

The HRRAC advises the MHSC on human resources matters in general including the remuneration of employees. During the 2018/19 financial year, the HRRAC had six (6) scheduled meetings and nine (9) special meetings. In total, the Committee met fifteen (1 ) times during the period. The special meetings were mainly called to address various challenges encountered in Human Resources business unit. Membersâ&#x20AC;&#x2122; attendance of HRRAC meetings and the number of meetings held in the year are shown in the table below: Table : H

AC members attendance of meetings including special meetings

MEMBER NAME PER STAKEHOLDER

TOTAL TOTAL NUMBER OF MEETINGS

GROUPING

COMMENTS ON MEMBERSHIP AND ATTENDANCE

MEETINGS ATTENDED

INDEPENDENT MEMBERS No alternate for independent members Ms. L. Mathabathe (Chairperson)

Ms. P. Nku

Mr. . Mabaso

14 STATE

Mr. N. Maleka

Alternate attended on behalf of a member

ORGANISED LABOUR Adv. . Van Vurren

Alternate attended on behalf of a member

Mr. F. Stehring

Alternate attended on behalf of a member

Ms. D. Luvuno

Appointed in August 2018 and has not attended any meeting

Mr. Simon Motlhabi

Alternate attended on behalf of a member.

Ms. K. Morodi

Was a member till uly 2018

EMPLOYERS Mr. P. Mhlongo

Every mine worker returning from work unharmed every day. Striving for Zero Harm

No meetings attended and no alternate appointed

MHSC ANNUAL REPORT 2018/2019

4.4

SAFETY IN MINES RESEARCH ADVISORY COMMITTEE (SIMRAC)

The SIMRAC is responsible for advising the MHSC on research programmes needed to improve OHS in the mining sector by: a) b) c)

Reviewing OHS risk based on the statistics of prior years, Evaluating research proposals and monitoring, and Evaluating the implementation of MHSC research projects or programme.

As per the approved Centre of Excellence (CoE) business plan, SIMRAC provides an oversight role on the work of the CoE, which is executed through the following three (3) CoE technical committees: a) b) c)

Research Determination Technical Committee (RDTC), Program Delivery Technical Committee (PDTC), and Research Outcomes Dissemination Technical Committee (RODTC).

The RDTC utilises historical data on OHS statistics, predominantly as received from the DMRE and emerging trends in OHS as a basis for developing research uestions and defining research needs for the MHSC. To ensure effectiveness of this phase of research process, the involvement and inclusion of various stakeholdersâ&#x20AC;&#x2122; inputs into determining research focus areas is critical. Stakeholders include MHSC members, mining companies (research sites providers), original e uipment manufacturers and the Technology Innovation Agency (TIA). TORs for identified research topics are developed, MHSC procurement processes are followed until service providers are contracted to conduct the relevant research. The PDTC manages the actual research programme execution process ensuring uality of the delivery of the research project by the service provider on brief, budget and time (BBT). The RODTC ensures that the outcomes of completed research projects are appropriately packaged for the identified target audience using the best possible knowledge and technology transfer medium for high level impact to OHS performance in the SAMI. During the 2018/19 financial year, the SIMRAC held six (6) meetings, of which two (2) were special meetings. Membersâ&#x20AC;&#x2122; attendance of SIMRAC and the number of meetings held in the year are shown in the table below.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

4.4

SAFETY IN MINES RESEARCH ADVISORY COMMITTEE (SIMRAC)

Table : S M AC members attendance of meetings including special meetings : MEMBER NAME PER TOTAL TOTAL NUMBER OF COMMENTS ON MEMBERSHIP AND ATTENDANCE STAKEHOLDER MEETINGS MEETINGS GROUPING ATTENDED STATE Ms. C Kekana (Chairperson)

Alternate attended on behalf of a member

Ms. N Mphahlele

Alternate attended on behalf of a member

Ms M Hlapane

Alternate attended on behalf of a member

Mr. T Motitimi

Alternate attended on behalf of a member

Mr. A ide

No alternate attended for the meetings not attended by the main member

LABOUR Mr. A Rikhotso

Attendance was until 30th of December 2018

Dr. R.W. Lipinski

Attendance was until 30th of December 2018

Mr. M Grant

Alternate attended on behalf of a member

Mr. T Mpete

Alternate attended on behalf of a member

Adv. H van Vuuren

Alternate attended on behalf of a member

EMPLOYERS Mr. B Mongoma

Attended all meetings

Dr. Malemela

No alternate attended for the meetings not attended by the main member

Dr. M Biffi

Mr. N Baartjes

Every mine worker returning from work unharmed every day. Striving for Zero Harm

No alternate attended for the meetings not attended by the main member No alternate attended for the meetings not attended by the main member

MHSC ANNUAL REPORT 2018/2019

4.5

MINING REGULATION ADVISORY COMMITTEE (MRAC)

The MRAC advises the MHSC on reviewing, developing or amending legislation that impacts OHS in the SAMI. In addition, the committee also considers and develops guidelines for Mandatory Code of Practice. This is achieved by developing or reviewing regulations, guidelines and guidance notes with regard to appropriate changes to regulatory mechanisms and guidance material. During the 2018/19 financial year, the MRAC held seven ( ) meetings. Membersâ&#x20AC;&#x2122; attendance of MRAC and the number of meetings held in the year are shown in the table below Table : M AC members attendance of meetings MEMBER NAME PER STAKEHOLDER

TOTAL TOTAL NUMBER OF MEETINGS

GROUPING

COMMENTS ON MEMBERSHIP AND ATTENDANCE

MEETINGS ATTENDED

STATE Mr. F. Nkuna (Chairperson)

Attended all meetings

Mr. G. Ndamse

Alternate attended for meetings not attended

Mr. G. Mthombeni

Appointed from 1 April 2017 until 24 April 2018 as a committee member Appointed as an alternate member 24 April August 2018

Mr. M. Madubane

Appointed from 1 May 2018

Mr. K. Hewitson

Appointed until 24 April 2018

LABOUR Ms. M. Llale

Alternate attended for meetings not attended

Dr. R.W. Lipinski

Alternate attended for meetings not attended

Mr. G. Nkosi

Alternate attended for meetings not attended

Ms. C. T. Sejake

Appointed from 1 November 2018

Mr. . White

Alternate attended for meetings not attended

Adv. F. Maritz

Attended all meetings

EMPLOYERS Mr. A. van Achterbergh

Appointed until 28th February 2018

Ms. L. Tsele

Appointed from 01 st April 2017 as an alternate member to 28th February 2018 Appointed as a member from 01st March 2018

Mr. M. Veti

Alternate attended for meetings not attended

Mr. . Coetzee

Alternate attended for meetings not attended

Mr. T. van den Berg

Alternate attended for meetings not attended

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

4.6

MINING OCCUPATIONAL HEALTH ADVISORY COMMITTEE (MOHAC)

MOHAC advises Council on occupational health policies, standards and research with the view to improving the occupational health of employees in the mining industry. MOHAC is also tasked with the responsibility of reviewing occupational health policies, regulatory mechanisms, standards, systems and procedures for assessing, avoiding, controlling and minimi ing occupational health risks to mine workers in South Africa. During the 2018/19 financial year, the MOHAC held nine (9) meetings, of which five ( ) were special meetings. Membersâ&#x20AC;&#x2122; attendance of MOHAC and the number of meetings held in the year are shown in the table below. Table :

AC members attendance of meetings (including special meetings)

MEMBER NAME PER STAKEHOLDER

TOTAL TOTAL NUMBER OF MEETINGS

GROUPING

COMMENTS ON MEMBERSHIP AND ATTENDANCE

MEETINGS ATTENDED STATE

Dr L. Ndelu (Chairperson)

Alternate attended on behalf of a member

Dr D. Mokoboto

Attended all meetings

Ms D. Mahlaba (Lekoba)

Alternate attended on behalf of a member

Ms C. Kekana

Alternate attended on behalf of a member

Mr N. Mokhonoana

Alternate attended on behalf of a member

EMPLOYERS Dr T. Balfour

Alternate attended on behalf of a member

Dr . Eloff

Alternate attended on behalf of a member

Mr N. Baartjies

Alternate attended on behalf of a member

Mr M. Beukes

Alternate attended on behalf of a member

Mr T. Letanta

Alternate attended on behalf of a member

ORGANISED LABOUR Mr A. Letshele

Alternate attended on behalf of a member

Mr B. Lethala

Was a member till uly 2018 and no meetings were attended

Adv. . Van Vuuren

Alternate attended on behalf of a member

Mr I. Sakala

Alternate attended on behalf of a member

Ms L. Mafulatha

Appointed from August 2018

Mr A. Hlakoana

Appointed from August 2018

Ms S. Nongingi

Alternate attended on behalf of a member

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

4.7

MINING INDUSTRY TB AND HIV/AIDS ADVISORY COMMITTEE (MITHAC)

MITHAC advises Council on TB and HI /AIDS-related policies and regulations with a view of improving the health performance of the SAMI. MITHAC is also tasked with the responsibility of driving and monitoring the implementation of initiatives which focus on addressing HI /AIDS and Tuberculosis in the South African Mining Industry. During the 2018/19 financial year, the MITHAC held eight (8) meetings, of which four (4) were special meetings. Membersâ&#x20AC;&#x2122; attendance of MITHAC and the number of meetings held in the year are shown in the table below: Table 9: M THAC members attendance of meetings including special meetings MEMBER NAME PER STAKEHOLDER

TOTAL TOTAL NUMBER OF MEETINGS

GROUPING

COMMENTS ON MEMBERSHIP AND ATTENDANCE

MEETINGS ATTENDED

STATE Dr L. Ndelu (Chairperson)

Alternate attended on behalf of a member

Dr D. Mokoboto

Alternate attended on behalf of a member

Mr M. Sekoele

Alternate attended on behalf of a member

Ms M. Hlapane

Alternate attended on behalf of a member

Dr L. Mvusi

Alternate attended on behalf of a member

EMPLOYERS Dr K. Baloyi

Alternate attended on behalf of a member

Mr N. Baartjies

Alternate attended on behalf of a member

Ms S. Ntimbane

Alternate attended on behalf of a member

Dr I. Mampa

Alternate attended on behalf of a member

Dr . Steele

Alternate attended on behalf of a member

ORGANISED LABOUR Mr C. Mkhumane

Alternate attended on behalf of a member

Mr A. Thobela

Alternate attended on behalf of a member

Ms E. Rakgomo

Alternate attended on behalf of a member

Mr . Boning

Alternate attended on behalf of a member

Mr I. Sakala

Alternate attended on behalf of a member

Ms M. Gigwani-Nyathi (replaced E. Rakgomo)

Appointed from August 2018

Mr V. Letau (replaced A. Thobela)

Appointed from August 2018

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

4.8

CULTURE TRANSFORMATION ADVISORY COMMITTEE (CTAC)

The CTAC committee advises Council on the implementation of the Culture Transformation Framework (CTF). CTF has a total of eleven (11) priority pillars with five ( ) prioritised for implementation by 2020, namely Risk Management, Leadership, Elimination of enderism, Racism and all forms of Discrimination, Bonus and Incentive Schemes and Adoption of Leading Practices. The remaining six (6) pillars are planned to be implemented by 2024.CTAC is also responsible for coordinating the hosting of the bi-annual Summit to review the status of OHS in the SAMI. During the 2018/19 financial year, the CTAC held five ( ) meetings. Membersâ&#x20AC;&#x2122; attendance of CTAC and the number of meetings held in the year are shown in the table below: Table 10: CTAC members attendance of meetings MEMBER NAME PER

TOTAL

STAKEHOLDER

NUMBER OF

MEETINGS

GROUPING

MEETINGS

ATTENDED

COMMENTS ON MEMBERSHIP AND ATTENDANCE

STATE 5

Membership ended une 2018

Was appointed a member from uly 2018

Mr. M Madubane

Alternate attended for meetings not attended

Ms. D Lekoba

Alternate attended for meetings not attended

Mr. P Huma

Apologies received but no alternate attended the meetings

Mr. S Kgosiemang

Alternate attended for meetings not attended

Mr. M Litlhakanye (Chairperson) Mr V Mahwasana (Chairperson)

LABOUR Mr. C Mkhumane

Alternate member did not the meeting missed

Ms. O Shongwe

Membership ended in May 2018

Mr. K Magano

Apologies received meetings not attended. Alternate member did not attend the two meetings missed

Mr. Boning

Alternate attended for meetings not attended

Adv. F. Maritz

Alternate attended for meetings not attended

Mr. V Lengisi

Appointed in August 2018. No meetings attended by member and alternate member EMPLOYERS

Ms. L Tsele

Alternate attended for meetings not attended

Mr. L McMaster

Apologies received but no alternate attended the meetings

Mr. S Durapraj

Appointed in August 2018

Mr. N Pienaar

No meetings attended by the member and the alternate

Ms. Y Grobbelaar

Appointment ended in April 2018

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

4.9

RIS

MANAGEMENT

The MHSC has a risk-management framework that governs the management of risk within the MHSC. The risk profile was compiled through various consultations with employees thus ensuring ownership for the implementation of risk mitigation strategies. R. isks are monitored on a monthly basis and reported on a uarterly basis to the Risk and Compliance Management Committee (RCMC) and the ARC. Measures in place for the risk management include the following: Regular risk assessments are conducted through annual strategic and operational risk assessments as and when circumstances/conditions arise. Emerging risks are continuously monitored and included as part of the risk-management report. RCMC is in place and assists management on the overall system of risk management, compliance and audit matters. Progress on the management of risks is reported at various governance structures mainly the E CO, RCMC, Information Technology Steering Committee, ARC and Council.

4.10

COMPLIANCE WITH LAWS AND REGULATIONS

The MHSC has a compliance universe that outlines the laws, Acts and regulations that the MHSC should comply with. Compliance with legislation is monitored by the Risk and Compliance Management Committee and the Audit and Risk Committee. The reports re uired as per the provisions in the PFMA and Treasury Regulations were submitted to the DMRE, National Treasury and the Auditor eneral. There will be concerted efforts to improve aspects of compliance monitoring of the Compliance Risk niverse including the day to day compliance monitoring by management.

4.11

FRAUD AND CORRUPTION

MHSCâ&#x20AC;&#x2122;s ero-tolerance attitude towards fraud is fostered by the implementation of the fraud prevention policy, strategy and plan. The MHSC has a whistle-blowing hotline that is operational and administered by an independent service provider. Incidents reported are investigated and reports are provided to the appropriate governance structures. The following initiatives will be implemented to continue to strengthen the MHSCâ&#x20AC;&#x2122;s resolve to dissipate and discourage any attempts and signs of fraud and corruption: (a) Continuous organisation-wide training. (b) Induction of all employees and stakeholders. (c) Inclusion of ethics as part of the wider MHSC anti-fraud and corruption agenda. (d) Enhancement avenues to popularise the fraud and corruption hotline.

4.12

MINIMISING CONFLICT OF INTEREST

The MHSC SCM Code of Conduct (aligned to National Treasury Code of Conduct for SCM Practitioners) describes the behavior re uired of SCM practitioners and those involved in the Bid Committees. The Code of Conduct is being implemented across all supply chain related activities at the MHSC. All SCM role players are re uired to comply with the highest ethical standards in order to ensure fair, e uitable, transparent, competitive and cost effective procurement processes.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

4.13

CODE OF CONDUCT

The MHSC has an approved Code of Conduct which must be adhered to by all MHSC employees and Stakeholders. The Code is supported by various polices such as Conflict of Interest and Business Conduct, Disciplinary Policy, Sexual harassment, Smoking Policy, etc. All employees of the MHSC and Stakeholders are subject to the Code of Conduct and are re uired to comply with both the letter and spirit of the Code.

4.14

INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)

Information and Communication Technology (ICT) unit provides MHSC with organisational ICT governance, general ICT support which includes Disaster Recovery services and cyber security. The MHSC has established the Information and Communication Technology Steering Committee (ICTSC) to assist the MHSC with ICT governance matters. The MHSC conducts uarterly Disaster Recovery Simulation Testing (DRST) at the Disaster Recovery arm Site (DR S). The outcomes of the DRST is reported to the ICTST and ARC on a uarterly basis. MHSC ICT Infrastructure has been stable and the ICT system performance has improved during the reporting period. The MHSC will embark on projects that will support the Fourth Industrial Revolution. The focus shall be on applications services, internet capacity, automation and integration of systems. The MHSC has embarked on the deployment of security measures to counter any possible cyber-attack including the annual vulnerability assessment on ICT infrastructure. The ICT nit supports knowledge management initiatives by providing ICT infrastructure on the website and electronic library.

4.15

HEALTH, SAFETY AND ENVIRONMENTAL ISSUES

The MHSC has appointed the Occupational Health and Safety Committee to ensure compliance with the Occupational Health and Safety Act no 8 1993 . A comprehensive OHS audit will be conducted to improve the MHSC OHS management system.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Part E H a R Management

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

INTRODUCTION

5.1

The MHSC has developed an HR Strategy to address various HR-related challenges, which included the process of aligning the HR structure to respond to the strategic needs of the MHSC. In developing the HR strategy, the implementation plan re uired that HR re-aligns its structure and department to optimise its services to the organisation. E

The MHSC as employer understands that a happy and healthy employee is a productive employee and thus takes responsibility for the wellness of the workforce. In executing this responsibility, HR made support services available to all employees focusing on holistic wellness that includes financial, social, emotional and psychological wellness. These services included counselling, telephonic support and other related services addressing wellness holistically. Deducing from the reports on wellness received f rom the appointed service provider, there is an indication that employees increasingly reported stress related diseases. On orld Aids Day, the MHSC hosted a wellness workshop where employees were afforded an opportunity to be tested for HI /Aids and other lifestyle diseases under the theme now your status â&#x20AC;&#x201C; Cheka Impilo . Other interventions included inviting the local gymnasium to assess and advise employees on general fitness and wellbeing. H

The MHSC developed various initiatives in or der to meet the strategic objectives of the MHSC. Highlights of the developed initiatives include the following: Training initiatives of the Capacity Building plan was implemented successfully. Initiatives completed included the capacitation of Members of Council and its Advisory Committees. The MHSC hosted uarterly-employee-engagement forums to discuss strategic and pertinent issues impacting on the performance of the organisation. The platfo rm created an opportunity for employees to make their voices heard in order to build trust, transparency and unity.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

HUMAN RESOURCES RELATED STATISTICS

5.2

The numerical information below is indicative of the actual amounts and figures of the MHSC per business unit. P r

61.11% of the Personnel cost is attributed to the core business of the MHSC which includes 2 . % of the costs paid to Support Services such as Finance and SCM as they are directly supporting the effective functioning of the Research nit and Centre of Excellence. Table 11: Personnel cost per business unit

Business Unit

No of Employees

Office of the CEO

Total Expenditure

Personnel Expenditure

11 468 336.93

826 003.38

Personnel Exp as a % of Total Exp

Exp as % of Total Personnel Expenditure

Average Personnel Cost per Employee

0.80%

11.63%

1 16 200.68

Finance

2 44 612.93

11 901 432.81

46.

23. 6%

8 0 102.34

Research

41 48 968.99

42. 4%

3 .41%

98 13 .91

ICT

846 802.26

3 031 241.0

1.84%

6.0 %

810.26

Corporate Services

8 893 41. 0

33%

18%

92 902.

2 42 319.96

43.39%

.08%

84 439.99

43%

100.00%

overnance TOTAL

2 14

29.24

8 9 446.6

117 255 897

32 482.30

49 927 021

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

The majority of the MHSC Personnel cost is allocated to Professionally Qualified, Skilled Practitioners and Semi-Skilled employees to a total of 2,18% who are more focused on the core business. Table 12: Personnel Cost by Salary and % of Personnel Exp to Total Personnel Cost

No of Employees

Top Management

11 840 023. 1

23.64%

1 9 3 33 .2

Professionally Qualified

39 698.68

3 . 3%

1 182 646. 8

Skilled Practitioners

11 9 944.13

23.1 %

610 312.8

Semi-Skilled

6 662 1 2. 9

13.30%

444 143. 1

9 8 288.36

1.91%

239

49 927 021

100%

nskilled TOTAL

Personnel Expenditure

Avarage personnel cost per employee

Business Unit

2.09

Performance Rewards The MHSC achieved 100% of the strategic objectives for the 201 /2018 financial year and in relation to this, performance bonuses were paid out in 2018/2019 financial year to recogni e and reward the employees that contributed to this achievement. The table below indicates the Performance Rewards paid per level. A total of 4% of the Total Personnel Cost and an amount of R2 200 206.92 was paid out. Table 1 : Performance

LEVELS

ewards

No of Employees

Bonus

Personnel Expenditure Including Performance Rewards

% of Performance Reward to Total Personnel Cost

Top Management

13 02 .8

11 840 023. 1

Professionally Qualified

93 8 2.21

39 698.68

Skilled

440 3 6.66

11 9 944.13

Semi-Skilled

400 02 .

6 662 1 2. 9

2 969.

9 8 288.36

49 927 021

nskilled (Driver and eneral Assistants) TOTAL

Every mine worker returning from work unharmed every day. Striving for Zero Harm

2 200 206.92

MHSC ANNUAL REPORT 2018/2019

On average, the MHSC spent R12,326.8 per employee on training and development. Training initiatives during this period were focused on the development of Corporate Services, ICT and Finance Business nits. In the new financial year, the focus will be on the Centre of Excellence. Table 1 : Training Costs

No of Employees

Business Unit

Training Expenditure

Office of the CEO

Training Exp as a % of Personnel Expenses

No. Of employees Trained

826 003.38

0.30%

8 60 .23

1.1 %

9 813. 9

8 1 4.

21 012.93

14 821.28

Personnel Expenditure

1 214.4

Average Training Cost per Employee

Finance

13 393.11

11 901 432.81

Research

146 8 . 0

ICT

84 0 1. 3

3 031 241.0

Corporate Services

18 44.

9 0 0 83 . 1

. 3% 0.31%

999.00

12 326.87

overnance TOTAL

186.29

999.00

2 42 319.96

912 188.56

49 927 021

Va a

The MHSC staff turnover reduced from 6% in the 201 /2018 financial year to % in the 2018/2019 financial year. The reported vacancies are that of HR business partner that forms part of the newly realigned HR structure, a CTAC Program Manager and Training Officer in the Centre of Excellence. Table 1 : mployment and acancies

LEVELS

2018/2019 No. of Employees

2018/2019 Approved Posts

2018/2019 No. of Employees

2018/2019 Vacancies

% of vacancies

Top Management

Senior Management

Professional ualified

Skilled

Semi-skilled

nskilled TOTAL

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019 The MHSC will continue to fill positions within a reasonable timeframe. Table 1 : mployment changes Employment at beginning of period

LEVELS

Appointments

Terminations

Employment at end of the period

Top Management

Senior Management

Professional ualified

Skilled

Semi-skilled nskilled TOTAL

R a

r ta

For the period under review the turnover of staff was %. It reduced from 6% in the previous financial year. Table 1 :

easons for staff leaving

Reason

Number

% of total no. of staff leaving

Death

Resignation

Dismissal

Retirement

Ill health

Expiry of contract

Other (Promotion)

Total

Labour Relations Misconduct and disciplinary action The MHSC has been functioning well with negligible cases re uiring disciplinary action. Table 18: abour elations: Misconduct and disciplinary action Nature of disciplinary

Nurmber

erbal

arning

ritten

arning

Final

ritten warning

Dismissal

Total

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019 E uity Target and Employment E uity Status The tables below indicate the breakdown of employees by gender during the period under review as well as people living with disabilities. The MHSC employs 46% males (2 ) and 4% females (32) out of a total number of 9 employees. In the absence of MHSC specific E uity targets the Organisation makes use of the National Employment E uity Targets as a guide. The MHSC is finalising the process of setting up structures and engaging with the nion and other related Stakeholders to develop Employment E uity targets. The process will be completed in the next financial year. Table 19:

uity Target and mployment

uity Status MALE

Levels

African

Coloured

Indian

White

Current

Target

Current

Target

Current

Target

Current

Target

Top Management

Senior Management

Professional ualified

Skilled Semi-skilled nskilled TOTAL

FEMALE Levels Top Management

African

Coloured

Indian

White

Current

Target

Current

Target

Current

Target

Current

Target

Senior Management Professional ualified

Skilled

Semi-skilled

nskilled TOTAL

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019 The MHSC, is in support of overnment imperatives to afford people living with disabilities the opportunity for employment and as such engages with associations whose key mandate is to facilitate access of employment in this regard. Levels

Disabled Staff Male

Female

Current

Target

Current

Target

Top Management

Senior Management

Professional ualified

Skilled

Semi-skilled

nskilled TOTAL

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

5.2

FUTURE HR PLANS / GOALS

The MHSC works toward building its capabilities and skills to maintain a sustainable workforce that serves the mandate to provide advice to the Minister on OHS in the SAMI. It is also the intent of the MHSC to focus its attention on implementing HR best practice. As part of addressing employment e uity re uirements, the MHSC will also work towards employing more people who are living with disabilities in collaboration with organi ations specialising with recruitment of people living with disabilities. The MHSC will be moving from a manual HR management system to an automated HR system to facilitate the integration of all MHSC systems. Implementation of the strategy remains a priority and aims to add to the employee value proposition. In the next financial year there will be a renewed focus on Leadership developmen t across all functions and levels in the MHSC to improve on the organi ational maturity, decision making, encouraging crucial conversations and working towards our theme: MHSC - a great place to work.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

Part F F a a Information

Every mine worker returning from work unharmed every day. Striving for Zero Harm

106

MHSC ANNUAL REPORT 2018/2019

107

Every mine worker returning from work unharmed every day. Striving for Zero Harm

6.1

REPORT OF THE E TERNAL AUDITOR

Report of the auditor-general to Parliament on Mine Health and Safety Council Report on the audit of the financial statements

Opinion 1. I have audited the financial statements of the Mine Health and Safety Council (MHSC) set out on pages 87 to 120, which comprise the statement of financial position as at 31 March 2019, the statement of financial performance, statement of changes in net assets, cash flow statement and the statement of comparison of budget and actual amounts for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies. 2. In my opinion, the financial statements present fairly, in all material respects, financial position of the Mine Health and Safety Council (MHSC) as at 31 March 2019, and its financial performance and cash flows for the year then ended in accordance with the Standards of Generally Recognised Accounting Practice (Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).

Basis for opinion 3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general s responsibilities for the audit of the financial statements section of this auditor s report. 4. I am independent of the public entity in accordance with sections 290 and 291 of the International Ethics Standards Board for Accountantsâ&#x20AC;&#x2122; Code of ethics for professional accountants (IESBA code), parts 1 and 3 of the International Ethics Standards Board for Accountants International Code of Ethics for Professional Accountants (including International Independence Standards) and the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA codes. 5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Responsibilities of the accounting authority for the financial statements 6. The accounting authority is responsible for the preparation and fair presentation of the financial statements in accordance with the requirements of the Standards of GRAP and the requirements of the PFMA, and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 7. In preparing the financial statements, the accounting authority is responsible for assessing the MHSC s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the appropriate

MHSC ANNUAL REPORT 2018/2019

6.1

REPORT OF THE E TERNAL AUDITOR

governance structure either intends to liquidate the public entity or to cease operations, or has no realistic alternative but to do so.

Auditor-general s responsibilities for the audit of the financial statements 8.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor s report.

Report on the audit of the annual performance report Introduction and scope 10. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and

the general notice issued in terms thereof, I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected objectives presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance. 11. My procedures address the reported performance information, which must be based on the

approved performance planning documents of the public entity. I have not evaluated the completeness and appropriateness of the performance measures included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters. 12. I evaluated the usefulness and reliability of the reported performance information in

accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected objectives presented in the annual performance report of the public entity for the year ended 31 March 2019:

Ob ectives

Pages in the annual performance report

Strategic Objective 1 - Provide advice to the Minister on occupational health and safety matters in South African mining Industry and on health and safely issues affecting communities as a result of mining activies (CP01)

Strategic Objective 2 - Promote the culture of occupational health and safety in the South African Mining Industry (CPO2)

22 - 23

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.1

REPORT OF THE E TERNAL AUDITOR

13. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete. 14. I did not raise any material findings on the usefulness and reliability of the reported performance information for these objectives:

Strategic objective 1: Provide advice to the Minister on occupational health and safety matters in South African mining Industry and on health and safely issues affecting communities as a result of mining activies. Strategic objective 2: Promote the culture of occupational health and safety in the South African Mining Industry

Other matter 15. I draw attention to the matter below.

Achievement of planned targets 16. Refer to the annual performance report on pages 19 to 25 for information on the achievement of planned targets for the year and explanations provided for the under/ over achievement of a number of targets.

Report on the audit of compliance with legislation

Introduction and scope 17. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the compliance of the public entity with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance. 18. The material finding on compliance with specific matter in key legislation is as follows: Procurement and contract management

19. Sufficient appropriate audit evidence could not be obtained that some of the quotations and contracts were awarded to suppliers whose tax matters have been declared by the South African Revenue Services to be in order as required by treasury regulations 16A9.1(d).

Other information 20. The accounting authority is responsible for the other information. The other information does not include the financial statements, the auditor s report and those selected objectives presented in the annual performance report that have been specifically reported in this auditor s report.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.1

REPORT OF THE E TERNAL AUDITOR

21. My opinion on the financial statements and findings on the reported performance information

and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon. 22. In connection with my audit, my responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements and the selected objectives presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. 23. If, based on the work I have performed, I conclude that there is a material misstatement in this

other information; I am required to report that fact. I have nothing to report in this regard.

Internal control deficiencies 24. I considered internal control relevant to my audit of the financial statements, reported

performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. The matters reported below are limited to the significant internal control deficiencies that resulted in the finding on compliance with legislation included in this report. 25. Compliance monitoring measures in place and consequences for non-compliance with

legislation were not effective to ensure that role players involved in the supply chain management process are held accountable for contravention of legislation and that monitoring controls in place are able to detect weaknesses in the supply chain management process,

Pretoria 31 uly 2019

Auditing to build public confidence

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Index The reports and statements set out below comprise the financial statements presented to the parliament: Page Statement of Financial Position

Statement of Financial Performance

Statement of Changes in Net Assets

Cash Flow Statement

Statement of Comparison of Budget and Actual Amounts

Accounting Policies

92 - 120

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

ANNUAL FINANCIAL STATEMENTS

6.2

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Statement of Financial Position as at 31 March 2019 Figures in Rand

Note(s)

2019

2018 Restated

Assets Current Assets Inventories Receivables from exchange transactions Receivables from non-exchange transactions Cash and cash equivalents

7 8 9 10

137 754 1 582 225 1 437 876 155 149 452

55 557 1 578 500 798 250 168 740 309

158 307 307

171 172 616

13 030 526 172 508

9 922 848 1 158 572

13 203 034

11 081 420

171 510 341

182 254 036

491 762 213 225 19 124 138 4 244 441

412 459 30 240 8 806 000 2 579 346

24 073 566

11 828 045

321 656 183 770 742 000 4 295 627

722 665 336 516 720 000 4 107 640

5 543 053

5 886 821

29 616 619

17 714 866

Net Assets

141 893 722

164 539 170

Accumulated surplus

141 893 722

164 539 170

Non-Current Assets Property, plant and equipment Intangible assets

3 4

Total Assets Liabilities Current Liabilities Finance lease obligation Operating lease liability Payables from exchange transactions Provisions

11 5 14 13

Non-Current Liabilities Finance lease obligation Operating lease liability Employee benefit obligation Administrative Fines Liability

11 5 6 12

Total Liabilities

See Note 24

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

ANNUAL FINANCIAL STATEMENTS

6.2

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Statement of Financial Performance Figures in Rand

Note(s)

2019

2018 Restated

Revenue Revenue from exchange transactions Recoveries Other income Interest received - investment

194 678 10 306 470

47 215 392 073 12 789 812

Total revenue from exchange transactions

10 501 148

13 229 100

78 875 215 431 090

78 875 142 3 052 451

4 803 000

6 162 000

84 109 305

88 089 593

94 610 453

101 318 693

(49 927 021) (5 054 758) (165 781) (2 897 671) (3 409 193) (54 727) (44 418 702) (11 328 044)

(37 821 105) (4 161 295) (140 033) (2 762 970) (3 551 204) (7 065) (45 776 146) (18 863 132)

Revenue from non-exchange transactions Mine Levy Income Administrative fines Transfer revenue State funding Total revenue from non-exchange transactions Total revenue Expenditure Employee costs Depreciation and amortisation Finance costs Lease rentals on operating lease Debt Impairment Loss on disposal of assets and liabilities Operating Expenses Research and development

Total expenditure

(117 255 897) (113 082 950)

Deficit for the year

See Note 24

(22 645 444)

(11 764 257)

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

ANNUAL FINANCIAL STATEMENTS

6.2

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Statement of Changes in Net Assets Accumulated surplus

Figures in Rand

Total net assets

Opening balance as previously reported Adjustments Correction of errors

176 269 909 33 518

33 518

Balance at 01 April 2017 as restated Changes in net assets Deficit for the year

176 303 427

(11 764 257)

Total changes

(11 764 257)

Restated Balance at 01 April 2018 Changes in net assets Deficit for the year

164 539 166

(22 645 444)

Total changes

(22 645 444)

Balance at 31 March 2019

141 893 722

See Note 24

176 269 909

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

ANNUAL FINANCIAL STATEMENTS

6.2

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Cash Flow Statement Figures in Rand

Note(s)

2019

2018 Restated

Cash flows from operating activities Receipts State funding Interest income Receipts from Mine Levies

Payments Employee costs Suppliers

4 803 000 10 306 470 74 928 266

6 162 000 12 789 812 74 301 323

90 037 736

93 253 135

(46 027 518) (50 273 427)

(38 180 386) (75 421 623)

(96 300 945) (113 602 009) Net cash flows from operating activities

(6 263 209)

(20 348 874)

3 3 4

(7 789 254) 1 121 593 (172 500)

(7 281 653) 42 935 -

(6 840 161)

(7 238 718)

(487 487)

(296 818)

(13 590 857) 168 740 309

(27 884 410) 196 624 719

155 149 452

168 740 309

Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of other intangible assets Net cash flows from investing activities Cash flows from financing activities Finance lease payments Net increase/(decrease) in cash and cash e uivalents Cash and cash equivalents at the beginning of the year 10

Cash and cash e uivalents at the end of the year

See Note 24

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Statement of Comparison of Budget and Actual Amounts Budget on Cash Basis Approved budget

Adjustments

Final Budget Actual amounts Difference on comparable between final basis budget and actual

Figures in Rand

Reference

Statement of Financial Performance Revenue Revenue from exchange transactions Other income Interest received - investment

9 600 000

194 678 10 306 470

194 678 706 470

9 600 000

10 501 148

901 148

78 863 654 -

78 875 215 431 090

11 561 431 090

29 29

4 803 000

Total revenue from nonexchange transactions

83 666 654

84 109 305

442 651

Total revenue

93 266 654

94 610 453

1 343 799

(49 900 629) (5 400 000) (120 000) (3 000 000) (50 512 881) (15 950 301)

(49 927 021) (5 054 758) (165 781) (2 897 671) (3 409 193) (44 418 702) (11 328 044)

(26 392) 345 242 (45 781) 102 329 (3 409 193) 6 094 179 4 622 257

Total revenue from exchange transactions

29 29

Revenue from non-exchange transactions Taxation revenue Mine Levy Income Administrative fines Transfer revenue State funding

Expenditure Employee Costs Depreciation and amortisation Finance costs Lease rentals on operating lease Debt Impairment General Expenses Research and development Total expenditure

(44 243 462) (5 400 000) (120 000) (3 000 000) (52 624 398) (19 495 951)

(5 657 167) 2 111 517 3 545 650

(124 883 811)

Operating deficit Loss on disposal of assets and liabilities

(31 617 157) -

(22 590 717) (54 727)

9 026 440 (54 727)

Deficit before taxation

(31 617 157)

(22 645 444)

8 971 713

Actual Amount on Comparable Basis as Presented in the Budget and Actual Comparative Statement

(31 617 157)

(22 645 444)

8 971 713

(124 883 811) (117 201 170)

29 29 29 29 29 29 29

7 682 641

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Accounting Policies 1.

Presentation of Financial Statements

The financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance Management Act (Act 1 of 1999). These financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention as the basis of measurement, unless specified otherwise. They are presented in South African Rand. A summary of the significant accounting policies, which have been consistently applied in the preparation of these financial statements, are disclosed below. These accounting policies are consistent with the previous period. 1.1 Presentation currency These financial statements are presented in South African Rand, which is the functional currency of the MHSC. 1.2 Going concern assumption These financial statements have been prepared based on the expectation that the MHSC will continue to operate as a going concern for at least the next 12 months. 1.3 Significant udgements and sources of estimation uncertainty In preparing the financial statements, management is required to make estimates and assumptions that af fect the amounts represented in the financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the financial statements. Significant judgements include: Trade and other receivables The MHSC assesses its trade receivables, and loans and receivables for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in surplus or deficit, the MHSC makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset. Provisions Provisions were raised and management determined an estimate based on the information available. Additional disclosure of these estimates of provisions are included in note 13 - Provisions. Post retirement medical benefits The present value of the post retirement obligation depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) include the discount rate. Any changes in these assumptions will impact on the carrying amount of post retirement obligations. The MHSC determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the MHSC considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension liability. Allowance for doubtful debts On debtors an impairment loss is recognised in surplus and deficit when there is objective evidence that it is impaired. The impairment is measured as the difference between the debtors carrying amount and the present value of estimated future cash flows discounted at the effective interest rate, computed at initial recognition. Provision for performance bonus Performance bonuses are based on employee s individual performance. As at year end, the assessment for the reporting is not yet finalised. Therefore, the provision is based on previous year performance and estimated average performance score.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Accounting Policies 1.4 Property, plant and e uipment Property, plant and equipment are tangible non-current assets that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period. The cost of an item of property, plant and equipment is recognised as an asset when: it is probable that future economic benefits or service potential associated with the item will flow to the MHSC; and the cost of the item can be measured reliably. Property, plant and equipment is initially measured at cost. The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost. Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition. Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item s fair value was not determinable, it s deemed cost is the carrying amount of the asset(s) given up. When significant components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment . Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment , the carrying amount of the replaced part is derecognised. The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is also included in the cost of property, plant and equipment , where the entity is obligated to incur such expenditure, and where the obligation arises as a result of acquiring the asset or using it for purposes other than the production of inventories. Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management. Major inspection costs which are a condition of continuing use of an item of property, plant and equipment and which meet the recognition criteria above are included as a replacement in the cost of the item of property, plant and equipment . Any remaining inspection costs from the previous inspection are derecognised. Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses. Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value. The useful lives of items of property, plant and equipment have been assessed as follows: Item

Depreciation method

Average useful life

Office furniture Motor vehicles Computer equipment Leasehold improvements Research equipment

Straight line Straight line Straight line Straight line Straight line

Leased assets

Straight line

10 years 5 years 5-10 years remainder of lease period Duration of the contract and estimated useful life the shorter of the lease period or the useful life of the asset

The depreciation method used reflects the pattern in which the assetâ&#x20AC;&#x2122; s future economic benefits or service potential are expected to be consumed by the MHSC. The depreciation method applied to an asset is reviewed at least at each reporting date and, if there has been a significant change in the expected pattern of consumption of the future economic benefits or service potential embodied in the asset, the method is changed to reflect the changed pattern. Such a change is accounted for as a change in an accounting estimate.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Accounting Policies 1.4 Property, plant and e uipment (continued) The MHSC assesses at each reporting date whether there is any indication that the MHSC expectations about the residual value and the useful life of an asset have changed since the preceding reporting date. If any such indication exists, the MHSC revises the expected useful life and/or residual value accordingly. The change is accounted for as a change in an accounting estimate. The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of another asset. Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset. The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. 1.5 Intangible assets An asset is identifiable if it either: is separable, i.e. is capable of being separated or divided from an entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable assets or liability , regardless of whether the entity intends to do so; or arises from binding arrangements (including rights from contracts), regardless of whether those rights are transferable or separable from the MHSC or from other rights and obligations. A binding arrangement describes an arrangement that confers similar rights and obligations on the parties to it as if it were in the form of a contract. An intangible asset is recognised when: it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow to the MHSC; and the cost or fair value of the asset can be measured reliably. Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred. An intangible asset arising from development (or from the development phase of an internal project) is recognised when: it is technically feasible to complete the asset so that it will be available for use or sale. there is an intention to complete and use or sell it. there is an ability to use or sell it. it will generate probable future economic benefits or service potential. there are available technical, financial and other resources to complete the development and to use or sell the asset. the expenditure attributable to the asset during its development can be measured reliably . Intangible assets are carried at cost less any accumulated amortisation and any impairment losses. An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows or service potential. Amortisation is not provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life. The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date. Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicator that the asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised over its useful life. Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows: Item

Depreciation method

Average useful life

Licenses and software

Straight line

2-8 years

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Accounting Policies 1.5 Intangible assets (continued) Intangible assets are derecognised: on disposal; or when no future economic benefits or service potential are expected from its use or disposal. The gain or loss arising from the derecognition of intangible assets is included in surplus or deficit when the asset is derecognised. 1.6 Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual interest of another entity. A financial asset is: cash; a residual interest of another entity; or a contractual right to: receive cash or another financial asset from another entity; or exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity. A financial liability is any liability that is a contractual obligation to: deliver cash or another financial asset to another entity; or exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Liquidity risk is the risk encountered by an entity in the event of difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Classification Financial instruments are measured at amortised cost using the ef fective interest rate method less any impairment losses.: Initial recognition The entity recognises a financial asset or a financial liability in its statement of financial position when the entity becomes a party to the contractual provisions of the instrument. The entity recognises financial assets using trade date accounting. Subse uent measurement of financial assets and financial liabilities The entity measures all financial assets and financial liabilities after initial recognition using the following categories: Financial instruments at fair value. Financial instruments at amortised cost. Financial instruments at cost. All financial assets measured at amortised cost, or cost, are subject to an impairment review . 1.7 Tax Current tax assets and liabilities No provision for income tax has been made as the Mine Health and Safety Council ( MHSC) is exempt in terms of section 10(1)(cA)(b)(ii) of the Income Tax Act of 1962, as ammended. 1.8 Leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Accounting Policies 1.8 Leases (continued) When a lease includes both land and buildings elements, the entity assesses the classification of each element separately . Finance leases - lessee Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease . Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability . The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balance of the liability. Any contingent rents are expensed in the period in which they are incurred. Operating leases - lessee Operating lease payments are recognised as an expense on a straight-line basis over the lease term . 1.9 Inventories Inventories are initially measured at cost except where inventories are acquired through a non-exchange transaction, then their costs are their fair value as at the date of acquisition. Subsequently inventories are measured at the lower of cost and net realisable value. Inventories are measured at the lower of cost and current replacement cost where they are held for; distribution at no charge or for a nominal charge; or Net realisable value is the estimated selling price in the ordinary course of operations less the estimated costs of completion and the estimated costs necessary to make the sale, exchange or distribution. Current replacement cost is the cost the entity incurs to acquire the asset on the reporting date. The cost of inventories comprises of all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost of inventories of items that are not ordinarily interchangeable and goods or services produced and segregated for specific projects is assigned using specific identification of the individual costs. The cost of inventories is assigned using the weighted average cost formula. The same cost formula is used for all inventories having a similar nature and use to the entity. 1.10 Employee benefits Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees. Termination benefits are employee benefits payable as a result of either: an entityâ&#x20AC;&#x2122;s decision to terminate an employeeâ&#x20AC;&#x2122;s employment before the normal retirement date; or an employeeâ&#x20AC;&#x2122;s decision to accept voluntary redundancy in exchange for those benefits. Other long-term employee benefits are employee benefits (other than post-employment benefits and termination benefits) that are not due to be settled within twelve months after the end of the period in which the employees render the related service. Vested employee benefits are employee benefits that are not conditional on future employment.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Accounting Policies 1.10 Employee benefits (continued) Short-term employee benefits Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service. Short-term employee benefits include items such as: wages, salaries and social security contributions; short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for the absences is due to be settled within twelve months after the end of the reporting period in which the employees render the related employee service; bonus, incentive and performance related payments payable within twelve months after the end of the reporting period in which the employees render the related service; and non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing, cars and cellphones) for current employees. Post-employment benefits Post-employment benefits are employee benefits (other than termination benefits) which are payable after the completion of employment. Post-employment benefit plans are formal or informal arrangements under which an entity provides post-employment benefits for one or more employees. Actuarial assumptions Actuarial assumptions are unbiased and mutually compatible with previous years. Financial assumptions are based on market expectations, at the reporting date, for the period over which the obligations are to be settled. The rate used to discount post-employment benefit obligations (both funded and unfunded) reflect the time value of money . The currency and term of the financial instrument selected to reflect the time value of money is consistent with the currency and estimated term of the post-employment benefit obligations. Post-employment benefit obligations are measured on a basis that reflects: estimated future salary increases; the benefits set out in the terms of the plan (or resulting from any constructive obligation that goes beyond those terms) at the reporting date; and estimated future changes in the level of any state benefits that af fect the benefits payable under a defined benefit plan, if, and only if, either: those changes were enacted before the reporting date; or past history, or other reliable evidence, indicates that those state benefits will change in some predictable manner , for example, in line with future changes in general price levels or general salary levels. Assumptions about medical costs take account of estimated future changes in the cost of medical services, resulting from both inflation and specific changes in medical costs. 1.11 Provisions and contingencies Provisions are recognised when: the entity has a present obligation as a result of a past event; it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; and a reliable estimate can be made of the obligation. The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date. Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Accounting Policies 1.11 Provisions and contingencies (continued) The discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party , the reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceed the amount of the provision. Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if it is no longer probable that an outflow of resources embodying economic benefits or service potential will be required, to settle the obligation. Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognised as an interest expense. A provision is used only for expenditures for which the provision was originally recognised. Provisions are not recognised for future operating surplus. If an entity has a contract that is onerous, the present obligation (net of recoveries) under the contract is recognised and measured as a provision. Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 21. 1.12 Revenue from exchange transactions Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners. An exchange transaction is one in which the MHSC receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an armâ&#x20AC;&#x2122;s length transaction. Measurement Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates. Interest and royalties Revenue arising from the use by others of entity assets yielding interest, royalties and dividends or similar distributions is recognised when: It is probable that the economic benefits or service potential associated with the transaction will flow to the entity, and The amount of the revenue can be measured reliably. Interest is recognised, in the statement of financial performance using the ef fective interest rate method. Royalties are recognised as they are earned in accordance with the substance of the relevant agreements. 1.13 Revenue from non-exchange transactions Revenue comprises gross inflows of economic benefits or service potential received and receivable by an entity, which represents an increase in net assets, other than increases relating to contributions from owners. Conditions on transferred assets are stipulations that specify that the future economic benefits or service potential embodied in the asset is required to be consumed by the recipient as specified or future economic benefits or service potential must be returned to the transferor.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Accounting Policies 1.13 Revenue from non-exchange transactions (continued) Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange. Levy Income The Mine Health and Safety Council collects levies in terms of the Mine Health and Safety Act. The levies are based on injuries and fatalities of individual mines. The levies are invoiced once every financial year. State Funding In terms of the Mine Health and Safety Act, the states also allocates funds for the management of the entity. Recognition An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow. As the entity satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchange transaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction. Measurement Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the entity. When, as a result of a non-exchange transaction, the entity recognises an asset, it also recognises revenue equivalent to the amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise a liability . Where a liability is required to be recognised it will be measured as the best estimate of the amount required to settle the obligation at the reporting date, and the amount of the increase in net assets, if any , recognised as revenue. W hen a liability is subsequently reduced, because the taxable event occurs or a condition is satisfied, the amount of the reduction in the liability is recognised as revenue. 1.14 Fruitless and wasteful expenditure Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised. All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance . 1.15 Irregular expenditure Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including the PFMA National Treasury practice note no. 1 of 2018/2019 which was issued in terms of sections 76(2) to 76(4) of the PFMA requires the following (effective from 1 December 2018): Irregular expenditure that was incurred and identified during the current financial and which was condoned before year end and/or before finalisation of the financial statements must also be recorded appropriately in the irregular expenditure register . In such an instance, no further action is also required with the exception of updating the note to the financial statements. Irregular expenditure that was incurred and identified during the current financial year and for which condonement is being awaited at year end must be recorded in the irregular expenditure register. No further action is required with the exception of updating the note to the financial statements. Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial year , the register and the disclosure note to the financial statements must be updated with the amount condoned.

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Accounting Policies 1.15 Irregular expenditure (continued) Irregular expenditure that was incurred and identified during the current financial year and which was not condoned by the National Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register . If liability for the irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law . Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is not possible, the accounting officer or accounting authority may write off the amount as debt impairment and disclose such in the relevant note to the financial statements. The irregular expenditure register must also be updated accordingly. If the irregular expenditure has not been condoned and no person is liable in law, the expenditure related thereto must remain against the relevant programme/expenditure item, be disclosed as such in the note to the financial statements and updated accordingly in the irregular expenditure register. 1.16 Budget information General purpose financial reporting by entity shall provide information on whether resources were obtained and used in accordance with the legally adopted budget. The financial statements and the budget are on the same basis of accounting. Therefore, a comparison with the budgeted amounts for the reporting period have been included in the Statement of comparison of budget and actual amounts . The Statement of comparative and actual information has been included in the financial statements as the recommended disclosure when the financial statements and the budget are on the same basis of accounting as determined by National Treasury. 1.17 Related parties A related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control, or joint control. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. oint control is the agreed sharing of control over an activity by a binding arrangement, and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers). Related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party , regardless of whether a price is charged. Significant influence is the power to participate in the financial and operating policy decisions of an entity , but is not control over those policies. Management are those persons responsible for planning, directing and controlling the activities of the entity, including those charged with the governance of the entity in accordance with legislation, in instances where they are required to perform such functions. Close members of the family of a person are considered to be those family members who may be expected to influence, or be influenced by, that management in their dealings with the entity. The entity is exempt from disclosure requirements in relation to related party transactions if that transaction occurs within normal supplier and/or client/recipient relationships on terms and conditions no more or less favourable than those which it is reasonable to expect the entity to have adopted if dealing with that individual entity or person in the same circumstances and terms and conditions are within the normal operating parameters established by that reporting entity s legal mandate. Where the entity is exempt from the disclosures in accordance with the above, the entity discloses narrative information about the nature of the transactions and the related outstanding balances, to enable users of the entityâ&#x20AC;&#x2122; s financial statements to understand the effect of related party transactions on its financial statements. 1.18 Events after reporting date Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified: those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and

100

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Accounting Policies 1.18 Events after reporting date (continued) those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date). The entity will adjust the amount recognised in the financial statements to reflect adjusting events after the reporting date once the event occurred. The entity will disclose the nature of the event and an estimate of its financial ef fect or a statement that such estimate cannot be made in respect of all material non-adjusting events, where non-disclosure could influence the economic decisions of users taken on the basis of the financial statements. 1.19 Administrative Fines Liability This represents fines that are imposed on mines as per section 55B of the Mine Health and Safety Act for failing to comply with the provision contemplated in section 91(B) of the Mine Health and Safety Act. These funds are ring fenced for the promotion of helath and safety in the mines. Expenditure is approved by the Chief Inspector of Mines with recommendations of the Council of the MHSC. On incurring expense that relate to their purpose, an amount is recognised in the statement of financial performance as promotion and safety expense and also recognition of the equivalent amount as income from this liability . These funds are not subject to the normal processes of surrendering funds. 1.20 Administrative Fines Expense This expenditure is funded via administrative fines that are raised by the Chief Inspector of Mines in situations where the mines are found to be having failed to comply with the requirements of the Mine Health and Safety Act. Based on the same Act, the use of these funds is restricted to promotion of health and safety activities only. Expenditure is approved by the Chief Inspector of Mines with recommendation of the Council of MHSC. The fines are accounted for as conditional grant and an equivalent amount of actual spending is recognised as income out of the grant account 1.21 Administrative Fines Revenue Revenue received from administrative fines is recognised as revenue to the extent that the MHSC has complied with any of the criteria, conditions or obligations embodied in the Mine Health and Safety Act. To the extent that the criteria, conditions or obligations have not been met a liability is recognised. 1.22 Offsetting of financial transactions Except for immaterial transactions like gains and losses on de-recognition of assets, the MHSC present separately each material class of similar items in the statement of financial performance and financial position.

101

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements Figures in Rand 2.

2019

2018

New standards and interpretations

2.1 Standards and interpretations effective and adopted in the current year In the current year, the entity has adopted the following standards and interpretations that are ef fective for the current financial year and that are relevant to its operations: Standard/ Interpretation

IGRAP 19: Liabilities to Pay Levies

Effective date Years beginning on or after 01 April 2019

GRAP 12 (as amended 2016): Inventories

01 April 2018

GRAP 16 (as amended 2016): Investment Property

01 April 2018

GRAP 17 (as amended 2016): Property, Plant and Equipment GRAP 21 (as amended 2016): Impairment of non-cashgenerating assets GRAP 26 (as amended 2016): Impairment of cashgenerating assets GRAP 27 (as amended 2016): Agriculture

01 April 2018

GRAP 31 (as amended 2016): Intangible Assets GRAP 103 (as amended 2016): Heritage Assets

01 April 2018 01 April 2018

Directive 12: The Selection of an Appropriate Reporting Framework by Public Entities

01 April 2018

01 April 2018 01 April 2018 01 April 2018

Expected impact

Unlikely there will be a material impact The impact of the is not material. The impact of the is not material. The impact of the is not material. The impact of the standard is not material. The impact of the standard is not material. The impact of the standard is not material. The impact of the standard is not material.

2.2 Standards and Interpretations early adopted The entity has not early adopted any standards and interpretations 2.3 Standards and interpretations issued, but not yet effective The entity has not applied the following standards and interpretations, which have been published and are mandatory for the entityâ&#x20AC;&#x2122;s accounting periods beginning on or after 01 April 2019 or later periods: Standard/ Interpretation

GRAP 34: Separate Financial Statements

Effective date Years beginning on or after 01 April 2020

GRAP 35: Consolidated Financial Statements

01 April 2020

GRAP 36: Investments in Associates and oint Ventures

01 April 2020

GRAP 37: oint Arrangements

01 April 2020

GRAP 38: Disclosure of Interests in Other Entities

01 April 2020

Guideline: Accounting for Arrangements Undertaken i.t.o the National Housing Programme GRAP 110 (as amended 2016): Living and Non-living Resources GRAP 6 (as revised 2010): Consolidated and Separate Financial Statements GRAP 7 (as revised 2010): Investments in Associates

01 April 2019

GRAP 8 (as revised 2010): Interests in oint Ventures

01 April 2020 01 April 2019 01 April 2019 01 April 2019

102

Expected impact

Unlikely there will be a material impact Unlikely there will be a material impact Unlikely there will be a material impact Unlikely there will be a material impact Unlikely there will be a material impact Unlikely there will be a material impact Unlikely there will be a material impact Unlikely there will be a material impact Unlikely there will be a material impact Unlikely there will be a material impact

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements 2.

New standards and interpretations (continued) GRAP 18 (as amended 2016): Segment Reporting

01 April 2019

GRAP 20: Related parties

01 April 2019

GRAP 32: Service Concession Arrangements: Grantor

01 April 2019

GRAP 105: Transfers of functions between entities under common control GRAP 106 (as amended 2016): Transfers of functions between entities not under common control GRAP 107: Mergers

01 April 2019

GRAP 108: Statutory Receivables

01 April 2019

GRAP 109: Accounting by Principals and Agents

01 April 2019

IGRAP 11: Consolidation

01 April 2019

Special purpose entities

IGRAP 12: ointly controlled entities Non-monetary contributions by ventures IGRAP 17: Service Concession Arrangements where a Grantor Controls a Significant Residual Interest in an Asset IGRAP 18: Interpretation of the Standard of GRAP on Recognition and Derecognition of Land

103

01 April 2019

01 April 2019 01 April 2019 01 April 2019

Every mine worker returning from work unharmed every day. Striving for Zero Harm

Furniture and fixtures Motor vehicles Office equipment IT equipment Leasehold improvements Research Equipment Leased Office Equipment

Reconciliation of property, plant and e uipment - 2019

2019

82 477 68 599 549 031 88 900 6 452 077 548 170 7 789 254

9 922 848

Additions

(20 054 846)

(883 645) (301 381) (930 405) (4 280 833) (2 666 598) (10 314 076) (677 908) 27 019 802

1 966 501 448 873 1 686 618 5 830 200 4 804 097 10 618 985 1 664 528

Cost / Valuation

2018

(17 096 954)

(762 265) (230 491) (690 321) (3 686 820) (1 189 451) (9 991 975) (545 631)

104 (1 176 320)

390 940

(3 896 196)

13 030 526

1 062 420 147 492 843 433 1 832 502 2 226 399 6 170 699 747 581

Total

9 922 848

1 204 236 218 382 996 297 2 143 380 3 614 646 627 010 1 118 897

Accumulated Carrying value depreciation and accumulated impairment

Disposals Depreciation Depreciation Cost disposal (65 935) (158 358) (70 890) (156 879) 178 920 (243 504) (265 902) 212 020 (806 027) (1 477 147) (293 143) (615 245) (394 461) (525 025)

13 030 526

1 062 420 147 492 843 433 1 832 502 2 226 399 6 170 699 747 581

Accumulated Carrying value depreciation and accumulated impairment

Opening balance 1 204 236 218 382 996 297 2 143 380 3 614 646 627 010 1 118 897

33 085 372

Total

Cost / Valuation

1 946 065 448 873 1 773 838 6 113 335 4 892 997 16 484 775 1 425 489

Property, plant and e uipment

6.2

Furniture and fixtures Motor vehicles Office equipment IT equipment Leasehold improvements Research Equipment Leased Office Equipment

Figures in Rand

Notes to the Financial Statements

Financial Statements for the year ended 31 March 2019

Mine Health and Safety Council

MHSC ANNUAL REPORT 2018/2019

ANNUAL FINANCIAL STATEMENTS

Every mine worker returning from work unharmed every day. Striving for Zero Harm

Property, plant and e uipment (continued)

7 281 653

5 290 747

105

Intangible assets

Licences and software

Reconciliation of intangible assets - 2019

Licences and software

4 136 324

Cost / Valuation

(3 963 816)

Opening balance 1 158 572

172 508

Accumulated Carrying value amortisation and accumulated impairment

2019

There are no restrictions on the title by the MHSC( other than leased assets) on the reported property , plant and equipment. There is also n oproperty, plant and equipment that is pledged as security for liabilities.

Pledged as security

374 767 897 455 698 978 4 040 385 1 270 068

Additions

Opening balance 965 990 289 866 257 086 2 284 378 79 691 1 301 028 112 708

172 500

Additions

3 963 824

Cost / Valuation

(50 000)

(50 000) -

Disposals

9 922 848

1 204 236 218 382 996 297 2 143 380 3 614 646 627 010 1 118 897

Total

(1 158 564)

Amortisation

(2 805 252)

172 508

Total

1 158 572

Accumulated Carrying value amortisation and accumulated impairment

2018

(2 599 552)

(136 521) (71 484) (158 244) (789 976) (505 430) (674 018) (263 879)

Depreciation

6.2

Furniture and fixtures Motor vehicles Office equipment IT equipment Leasehold improvements Research Equipment Leased Office Equipment

Reconciliation of property, plant and e uipment - 2018

Figures in Rand

Notes to the Financial Statements

Financial Statements for the year ended 31 March 2019

Mine Health and Safety Council

MHSC ANNUAL REPORT 2018/2019

ANNUAL FINANCIAL STATEMENTS

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements Figures in Rand 4.

2019

2018

Intangible assets (continued)

Reconciliation of intangible assets - 2018 Opening Amortisation balance 2 720 312 (1 561 740)

Licences and software 5.

1 158 572

Operating lease asset (accrual)

Non-current liabilities Current liabilities

Total

(183 770) (213 225)

(336 516) (30 240)

(396 995)

(366 756)

(742 000)

(720 000)

41 000 68 000 (87 000)

58 000 81 000 (267 000)

22 000

(128 000)

(133 000) 10 000 36 000

(90 000) (177 000) -

(87 000)

(267 000)

720 000 41 000 68 000 (133 000) 46 000

848 000 58 000 81 000 (90 000) (177 000)

742 000

720 000

Employee benefit obligations

The amounts recognised in the statement of financial position are as follows Carrying value Present value of the defined benefit obligation- in service members Net expense recognised in the statement of financial performance Net service cost Interest cost Actuarial (gains) losses

Calculation of actuarial gains and losses Change in Economic assumptions Benefit increases Demographic factors

Reconciliation of Defined Benefit Obligation Opening balance Current Service Cost Interest Costs Actuarial Gains on economic assumptions Actuarial (Gains)/ Losses on experience

ey assumptions used Assumptions used at the reporting date: Valuation interest rates Medical cost inflation rate Net pre-retirement rate

10,80 % 8,90 % 1,74 %

106

8,90 % 7,70 % 1,11 %

Every mine worker returning from work unharmed every day. Striving for Zero Harm

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements Figures in Rand 6.

2019

2018

Employee benefit obligations (continued)

Other assumptions Assumed healthcare cost trends rates have a significant ef fect on the amounts recognised in surplus or deficit. A one percentage point change in assumed healthcare cost trends rates would have the following ef fects: Sensitivity

Impact on Impact on Defined service cost Benefit Obligation 560 196 29 568 890 746 46 657 891 039 46 670 557 925 29 452

Discount rate 1% Discount rate -1% Medical Inflation 1% Medical Inflation -1%

2 899 906

152 347

Pro ected Employee Benefit Obligations The table below summarise the expected disclosure elements for the year ending 31 March 2020 Pro ected benefit obligation as at 31March 2019

Year ending 31 March 2020 742 000 40 000 84 000

Defined Benefit Obligation at the beginning of the period Current Service Cost (excluding interest) Interest Cost

866 000 The related expected expense to be recognised in the Statement of Financial Performance for the next year is estimated to be as follows: Pro ected Expense

Year ending 31 March 2020 40 000 84 000

Gross service cost Interest income on defined benefit obligation

124 000 Amounts for the current and previous four years are as follows:

Defined benefit obligation 7.

2019 R 742 000

2017 R 848 000

2016 R 2 685 000

2015 R 2 276 000

Inventories

Consumables 8.

2018 R 720 000

137 754

55 557

632 460 103 830 87 886 758 049

632 460 88 379 857 661

1 582 225

1 578 500

Receivables from exchange transactions

Deposits Staff Bursaries and loans Sundry Debtors Prepaid expenses

Every mine worker returning from work unharmed every day. Striving for ZeroHarm

107

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements Figures in Rand 8.

2019

2018

Receivables from exchange transactions (continued)

Credit uality of trade and other receivables The credit quality of trade and other receivables that are neither past nor due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates: 9.

Receivables from non-exchange transactions

Allowance for impairment Levies

(9 563 175) 11 001 051 1 437 876

(6 153 981) 6 952 231 798 250

None of the financial assets that are fully performing have been renegotiated in the last year . Fair value of receivables from non-exchange transactions Receivables from non-exchange transactions are discounted at the rate that is intended to estimate the present value of receivables as at 31 March 2019. The difference between the discounted amount and the carrying amount is processed in the Statement of Financial Performance as a fair valuation allowance. Receivables from non-exchange transactions past due but not impaired Other receivables from non-exchange transactions which are less than 3 months past due are not considered to be impaired. At 31 March 2019, R 32 844 (2018: R 46 000) were past due but not impaired. The ageing of amounts past due but not impaired is as follows: 1 month past due

32 844

46 000

Receivables from non-exchange transactions impaired As of 31 March 2019, other receivables from non-exchange transactions of R 10 985 281 (2018: R 6 952 231) were impaired and provided for. The amount of the provision was R 9 563 174 as of 31 March 2019 (2018: R 6 153 981). The ageing of these loans is as follows: 3 to 6 months Over 6 months

10 952 437

6 906 000 -

(6 153 981) (3 409 193)

(2 602 778) (3 551 203)

(9 563 174)

(6 153 981)

Reconciliation of provision for impairment of receivables from non-exchange transactions Opening balance Provision for impairment

10. Cash and cash e uivalents Cash and cash equivalents consist of: Petty cash Bank balances Short-term deposits

2 000 10 275 306 144 872 146

2 000 118 653 168 619 656

155 149 452

168 740 309

The comparative figures have been adjusted to correctly reflect the cash and cash equivalents.

108

Every mine worker returning from work unharmed every day. Striving for ZeroHarm

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements Figures in Rand

2019

2018

10. Cash and cash e uivalents (continued) Credit uality of cash at ban and short term deposits, excluding cash on hand The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impaired can be assessed by reference to external credit ratings: Credit rating Baa3

155 160 612

168 740 309

Minimum lease payments due - within one year - in second to fifth year inclusive

548 896 333 975

503 209 780 206

less: future finance charges

882 871 (69 453)

1 283 415 (148 291)

Present value of minimum lease payments

813 418

1 135 124

Present value of minimum lease payments due - within one year - in second to fifth year inclusive

491 762 321 656

412 459 722 665

813 418

1 135 124

321 656 491 762

722 665 412 459

813 418

1 135 124

11. Finance lease obligation

Non-current liabilities Current liabilities

It is entity policy to lease certain photocopier equipment under finance leases. The average lease term was 3 years and the average effective borrowing rate was 9% (2018: 9%). 12. Administrative Fines Liability This represents fines imposed on mines as per section 55B of the Mine Health and Safety Act for failing to comply with the provisions contemplated in section 91 (1B) of the Mine Health and Safety Act. These funds are ring fenced for promotion of health and safety in the mines. Expenditure is approved by the Chief Inspector of Mines with the recommendation of the Council MHSC. On incurring expense that relate to their purpose, an amount is recognised in the statement of financial performance as promotions and safety expense and recognition of the equivalent amount as income from the liability account. administrative fines liability consists of

administrative fines liability

Every mine worker returning from work unharmed every day. Striving for ZeroHarm

4 295 627

109

4 107 640

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements Figures in Rand

2019

2018

13. Provisions Reconciliation of provisions - 2019 Opening Balance Provision for performance bonus

Additions

2 579 346

3 827 244

Utilised during the year (2 162 149)

Total

4 244 441

Reconciliation of provisions - 2018 Opening Balance Provision for performance bonus

Additions

2 164 897

2 210 449

Utilised during the year (1 796 000)

Total

2 579 346

The MHSC pays performance bonus to its previous employees on or before end of September each calendar year . The payments are subject to the results of the audit for the year and on how individual employees performed against their performance contracts. As at 31 March 2019, policy is to provide for 10% of the basic salary of employees. 14. Payables from exchange transactions Trade payables Payments received in advanced - levies Payroll Creditors Accrued leave pay Accruals

10 515 700 395 856 1 292 224 1 577 648 5 342 710

3 547 539 31 035 179 686 1 138 535 3 909 205

19 124 138

8 806 000

194 678 10 306 470 78 875 215 431 090 4 803 000

47 215 392 073 12 789 812 78 875 142 3 052 451 6 162 000

94 610 453

101 318 693

194 678 10 306 470

47 215 392 073 12 789 812

10 501 148

13 229 100

78 875 215 431 090

78 875 142 3 052 451

4 803 000

6 162 000

84 109 305

88 089 593

15. Revenue Recoveries Other income Interest received - investment Mine Levy Income Administratiive fines State funding

The amount included in revenue arising from exchanges of goods or services are as follows Recoveries Other income Interest received - investment

The amount included in revenue arising from non-exchange transactions is as follows Mine Levy Income Administrative fines Transfer revenue State funding

110

Every mine worker returning from work unharmed every day. Striving for ZeroHarm

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements Figures in Rand

2019

2018

16. Employee costs Basic Performance Bonus UIF WCA SDL Leave pay provision charge Retirement benefit costs Defined contribution plans Cellphone Allowance Group Life Cover

40 821 213 3 827 244 114 950 16 692 423 976 884 259 41 000 2 514 469 551 262 731 956

33 066 889 2 210 843 96 016 353 485 35 034 58 000 1 088 900 315 356 596 582

49 927 021

37 821 105

165 781

140 033

2 978 694

2 467 161

(22 645 444)

(11 764 257)

5 054 758 54 727 165 781 3 409 193 30 239 22 000 1 665 095 (390 942)

4 161 295 7 065 140 033 3 551 204 366 756 128 000 (414 449) (211 430)

(82 197) (3 725) (3 409 193) (639 626) 10 318 138 187 987

203 743 (443 736) (3 551 204) (545 615) (9 531 687) (2 444 592)

(6 263 209)

(20 348 874)

17. Finance costs Finance leases Capitalisation rates used during the period were 9% on specific borrowings. 18. Auditors remuneration Fees 19. Cash used in operations Deficit Ad ustments for Depreciation and amortisation Gain on sale of assets and liabilities Finance costs - Finance leases Debt impairment Movements in operating lease assets and accruals Movements in retirement benefit assets and liabilities Movements in provisions Payables from exchange transactions- prior period error Changes in wor ing capital Inventories Receivables from exchange transactions Receivables from non- exchanges transactions Other receivables from non-exchange transactions Payables from exchange transactions Administrative Fines Liability

Every mine worker returning from work unharmed every day. Striving for ZeroHarm

111

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements Figures in Rand

2019

2018

20. Commitments Authorised operational expenditure Already contracted for but not provided for Research Projects SeedFunding Projects Administrative Expenses

11 541 192 24 136 127 4 533 921

10 486 901 27 773 026 -

40 211 240

38 259 927

1 913 341 2 559 060

4 472 401

40 211 240 4 472 401

38 259 927 -

44 683 641

38 259 927

3 106 288 1 631 367

2 558 202 4 239 657

4 737 655

6 797 859

Not yet contracted for and authorised Research Projects Administrative Expenses

Total operational commitments Already contracted for but not provided for Not yet contracted for and authorised

Operating leases - as lessee (expense) Minimum lease payments due - within one year - in second to fifth year inclusive

Operating lease payments represent rentals payable by the MHSC for office buildings.Leases are negotiated for an average term of seven years. No contingent rent is payable. Comparative figure from 2018 has been adjusted to correctly reflect the commitments 21. Contingencies Litigation is in the process against the entity relating to a dispute with former employees. The case is currently at the Labour courts. There is currently a dispute with a service provider which may result in potential liability for the entity. Retention of surplus funds In terms of Section 53(3) of the PFMA, a public entity may not accumulate surplus funds without approval from the National Treasury. Approval has been requested from the National Treasury to retain surpluses amounting to R 82 807 500 as at 31st March 2019. In the last five years National Treasury has allowed the retention of surplus funds.

112

Every mine worker returning from work unharmed every day. Striving for ZeroHarm

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements Figures in Rand

2019

2018

22. Related parties Relationships Ultimate controlling entity Members of key management

Department of Mineral Resources Mr P Temane Mr I Pillay Mr S Sepetla Dr S Phakhathi Dr T Logobye

Related party balances Amounts included in Trade receivable regarding related parties Anglo Coal (Pty) Limited Goldfields (Pty) Limited Anglo American(Pty) Limited Harmony (Pty) Ltd Amounts included in Trade Payable regarding related parties South African Revenue Services CSIR National Heritage Council

251 443 1 193 835 12 421 936

(981 090) (6 158 934) (646 447)

132 796 930 786 -

Related party transactions Revenue received from related parties Department of Mineral Resources Anglo Coal ( Pty) Ltd Anglo American ( Pty) Ltd Goldfield ( Pty) Ltd Royal Bafokeng Platinum ( Pty) Ltd Harmony Gold ( Pty) Ltd

(4 803 000) (1 533 397) (6 535 441) (1 589 391) (1 628 953) (6 221 914)

(6 162 000) (1 375 732) (6 007 216) (1 600 084) (1 570 181) (7 591 311)

Purchases/ services rendered from related parties Department of Mineral Resources Mine Qualifications Authority CSIR Government Printing National School of Government South African Revenue Services Telkom Post Office South Africa South African Broadcasting Corporation South African Roads Agency Limited Council for Geoscience National Heritage Council Unemployment Insurance Fund

423 976 7 659 544 173 712 151 200 11 653 377 207 347 1 885 270 9 500 13 985 646 447 114 950

300 000 780 325 4 177 733 81 500 56 700 7 669 925 101 537 265 8 671 96 524

Every mine worker returning from work unharmed every day. Striving for ZeroHarm

113

114

Ms L. Mathabathe ( Chairperson)

2019

Human Resources Advisory Committee

Name Ms N Madiba ( Chairperson) Ms T Njozela Mr R Adam Mr G Higgins

2018

Name Ms N Madiba (Chairperson) Ms T Njozela Mr R Adam Mr G Higgins

2019

Audit Committee

Remuneration of management

22. Related parties (continued)

Figures in Rand

Notes to the Financial Statements

Financial Statements for the year ended 31 March 2019

Mine Health and Safety Council

73 767

463 441

82 568

303 569

Fees for Travel Claims services as member 351 563 9 826

26 966 50 931 4 671

146 799 42 317 41 286 73 167

Fees for Travel Claims services as a member

12 587 3 744 53 024 4 412

312 980 56 423 47 019 47 019

Fees for Travel Claims services as a member

361 389

Total

386 137

173 765 42 317 92 217 77 838

Total

537 208

325 567 60 167 100 043 51 431

Total

6.2 ANNUAL FINANCIAL STATEMENTS

Every mine worker returning from work unharmed every day. Striving for ZeroHarm

115

2018

Name Mr T Dube Mr Mkwanazi Ms L Leonard Ms Mayinga Mr M Fenyane Ms N Masekoa Ms P Mvana

2019

Executive management

Ms L Mathabathe ( Chairperson) Mr Mabaso Mr S P Nku

2018

22. Related parties (continued) Mr Mabaso Mr S. P. Nku

Figures in Rand

Notes to the Financial Statements

Financial Statements for the year ended 31 March 2019

Mine Health and Safety Council

181 407 107 520 105 075 119 024 513 026

8 566 470

Bonuses and performance related payments

2 473 833 1 495 872 489 873 413 918 1 419 616 1 621 664 651 694

Salary

117 696

27 018 25 059 10 910 5 997 15 426 20 178 13 108

Allowances

44 778

25 774 18 684 320 -

Claims

29 427

530 398

16 751

61 176

61 176 -

115 373

50 151 30 239 19 951 15 032

Termination Other benefits benefits received

186 046

Fees for Travel Claims services as member 87 273 7 250 61 125 3 686 37 648 5 815

8 093 11 508

108 294 70 541

9 418 519

2 758 183 1 647 135 501 103 481 091 1 570 356 1 780 817 679 834

Total

202 797

94 523 64 811 43 463

Total

559 825

116 387 82 049

6.2 ANNUAL FINANCIAL STATEMENTS

Name Mr T Dube Mr Mkwanazi Ms haile Ms Mayinga Mr M Fenyane Ms N Masekoa

22. Related parties (continued)

Figures in Rand

Notes to the Financial Statements

Financial Statements for the year ended 31 March 2019

Mine Health and Safety Council

162 114 64 000 39 852 93 818 106 272 466 056

2 198 923 1 347 632 548 144 1 397 804 1 274 268 1 457 021 8 223 792

Basic salary Bonuses and performance related payments

112 136

22 646 37 710 11 994 21 989 17 797

Allowances

306 633

306 633 114 449

44 913 11 585 27 176 30 775

Termination Other benefits benefits received

9 223 066

2 428 596 1 449 342 878 356 1 459 645 1 395 262 1 611 865

Total

6.2 ANNUAL FINANCIAL STATEMENTS

116

Every mine worker returning from work unharmed every day. Striving for ZeroHarm

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements Figures in Rand

2019

2018

23. Prior period errors The finance lease liability was incorrectly recognised and therefore capitalised to the asset register less by R354 183. Other income revenue was understated by R33 512 because Royalties income due and receivable to the MHSC was not recognised in the 2017 financial year. The expenditure related to travel to the value of R26 966 was not recorded. The expense was received and paid in the current financial year. Incorrectly recognised of total effect of actuarial gains and expenses on employee benefit obligations of R128 000 as interest income. The impact of the incorrect recognition is an overstatement of interest income , understatement of salaries and finance charges. The correction of the error(s) results in adjustments as follows: Statement of financial position Increase property, plant and equipment- capitalisation of leased assets not accounted for Increase finance lease liability- capitalisation of lease liability not accounted for Increase in accruals as a result of accounting for travel expenditure related to prior year not accounted for increase in receivables from exchange transactions for royalties income related to 2017 financial year. Increase in accumulated surplus for royalties income received for 2017 financial year not accounted for Increase in operating lease accrual as as result of understatement Statement of financial performance Increase in Operating Expenses-Reimbursive travel expenditure Decrease in interest income- incorrect recognition of net ef fect of income and expenses on employee obligations as interest income Increase in interest income- accounting for acturial gains as other income in terms of GRAP 25 Increase in employee costs- accounting for service costs from employee benefit obligation (GRAP 25) Increase in finance costs- accounting for interest cost on employee benefit obligation ( GRAP 25) Incorrect recognition of consulting fees as service costs from employee benefits Increase in operating lease expenditure as a result onf misstatement of operaing leases accrual Increase in finance charges related to incorrect capitalisation of finance lease liability

354 183

(354 183) (26 966)

33 512

(33 512)

(248 970)

26 966 128 000

(267 000)

58 000

81 000

(18 012) 248 970

12 644

24. Prior-year ad ustments Presented below are those items contained in the statement of financial position, statement of financial performance and cash flow statement that have been affected by prior-year adjustments: Statement of financial position 2017 Note Accumulated Surplus

Every mine worker returning from work unharmed every day. Striving for ZeroHarm

117

As previously Correction of reported error 176 269 909 33 512

Restated 176 303 421

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements Figures in Rand

2019

2018

24. Prior-year ad ustments (continued) 2018 Note Property, plant and equipment- leased assets Finance lease liability- current portion Finance lease liability- non current portion Payables from exchange transactions Operating lease accrual- short tem Operating lease accrual- long term Receivables from exchange transactions Cash and cash equivalents

As previously Correction of Rereported error classification 9 568 664 354 183 (352 322) (60 137) (428 619) (294 046) (8 905 309) (26 966) 126 274 (30 240) (218 729) (117 787) 1 544 988 33 512 168 748 796 (8 487) 170 176 198

(242 423)

Restated 9 922 847 (412 459) (722 665) (8 806 001) (30 240) (336 516) 1 578 500 168 740 309 169 933 775

Statement of financial performance 2018 Note Research and development General expenditure Employee Costs Finance Charges Lease Rentals on operating leases Debt Impairments Loss on disposal of assets Other income Recoveries

As previously Correction of Rereported error classification 22 824 000 (3 960 868) 46 768 000 5 080 415 (6 072 269) 38 845 000 (1 023 894) 46 390 93 644 248 970 2 514 000 3 551 204 7 065 (293 000) (146 288) 47 215 (47 215)

Surplus for the year

108 190 390

118

291 979

Restated 18 863 132 45 776 146 37 821 106 140 034 2 762 970 3 551 204 7 065 (392 073) (47 215) 108 482 369

Every mine worker returning from work unharmed every day. Striving for ZeroHarm

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements Figures in Rand

2019

2018

25. Ris management Financial ris management Li uidity ris The entityâ&#x20AC;&#x2122;s risk to liquidity is a result of the funds available to cover future commitments. The entity manages liquidity risk through an ongoing review of future commitments and credit facilities. 2019 Trade and other payables Finance lease obligations

R 1year 19 124 138 491 762

R 1-2 years

19 615 900 2018 Trade and other payables Finance lease obligations

R 1year 8 806 001 412 459 9 218 460

R 2-5 years

R 5 years

Total

321 656

19 124 138 813 418

321 656

19 937 556

R 1-2years

R 2-5years

R 5 years

Total

722 665

8 806 001 1 135 124

722 665

9 941 125

Credit ris Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors. The entity only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party . Trade receivables comprise a widespread customer base. Management evaluated credit risk relating to customers on an ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation of credit limits is regularly monitored. Sales to retail customers are settled in cash or using major credit cards. Credit guarantee insurance is purchased when deemed appropriate. Financial instrument Trade receivables from exchange transactions Cash and cash equivalents

2019 1 477 631 155 149 452

2018 1 578 500 168 740 309

26. Going concern We draw attention to the fact that at 31 March 2019, the entity had an accumulated surplus of R 141 893 722 and that the entity s total assets exceed its liabilities by R 141 893 722. The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. 27. Events after the reporting date The Council is not aware of any matter or circumstance arising since the end of the reporting period. 28. Irregular expenditure Irregular Expenditure - current year Add: Irregular Expenditure relating to prior years

Every mine worker returning from work unharmed every day. Striving for ZeroHarm

119

21 514 167 1 264 190

22 778 357

6.2

ANNUAL FINANCIAL STATEMENTS

Mine Health and Safety Council Financial Statements for the year ended 31 March 2019

Notes to the Financial Statements Figures in Rand

2019

2018

28. Irregular expenditure (continued) Analysis of expenditure awaiting condonation per age classification Current year Prior years

Details of irregular expenditure

21 514 167 1 264 190

22 778 357

current year

Contravention of supply chain processes

Disciplinary steps ta en/criminal proceedings The irregular expenditure is currently under investigation

29. Budget differences Material differences between budget and actual amounts The actual expenditure is below budget by 4,7% due to underspending on expenditure. There were no other material differences between the final budget and the actual amounts.

120

Every mine worker returning from work unharmed every day. Striving for ZeroHarm

MHSC ANNUAL REPORT 2018/2019

A Every mine worker returning from work unharmed every day. Striving for Zero Harm

r 110

MHSC ANNUAL REPORT 2018/2019

7.1

ANNE URE A STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY

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 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 F) have been prepared in accordance with the 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, opi , the t annual report p fairly reflects the operations, the performance information, the human finan resources information and the financial affairs of the entity for the financial year ended 31 March 2019.

Mr. D. Msiza MHSC Chairperson Date

Mr.. T. T Dube MHSC Chief Executive Officer Date

122

Every mine worker returning from work unharmed every day. Striving for Zero Harm

MHSC ANNUAL REPORT 2018/2019

7.2

ANNE URE B REPORT OF THE AUDIT COMMITTEE

The report of the Audit Committee has been prepared in accordance with the Treasury Regulations for Public Entities 3.1; 27.1 issued in terms of the Public Finance Management, (Act No. 1 of 1999) (PFMA) as amended by Act 29 of 1999. We are pleased to pre sent our report for the financial year ended 31 March 2019. Audit Committee Responsibilities The Audit and Risk Committee reports that it has executed its responsibilities arising from Section 51 (1)(a)(ii) of the Public Finance Management Act ( as amended by Act 29 of 1999) and Treasury Regulations. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit and Risk Committee Charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein. The Committee is also tasked with the oversight of the risk management in terms of the PFMA; however, this has been delegated to a stand -alone Risk Management Committee which is the subcommittee of the Audit C ommittee. The Risk Management Committee has provided the necessary oversight and assurance to this Committee which has had sight of all Risk Management Committee report for the review period. The Effecti eness of Internal Control The system of internal c ontrol within the MHSC is designed to provide reasonable assurance that assets are safeguarded and that liabilities and working capital are properly managed in line with the PFMA and the protocol on corporate governance for public entities. This is achieve d by means of the risk management process which includes the identification of corrective actions and suggested enhancements to the controls and processes. However the outsourced Internal Audit services were not adequately monitored, and therefore could no t achieve all the planned outcomes, as there was non -adherence to the plan. From the various reports of the Internal Auditors, the Audit Report on the Annual Financial Statements and the management letter of the Auditor General, we concluded that the existing control environment, during the year under review was partially adequate and effective. Although it provides reasonable assurance that the organisationâ&#x20AC;&#x2122;s goals and objectives are being achieved, there is a need for improvement in relation to contract s management. We are also pleased to report that the MHSC has received an unqualified audit opinion with clean audit outcomes from the Auditor General for the 2018/19 financial year. However, the committee raised concerns regarding audit findings by the A uditor-General relating to inadequate controls around contract management, an area which the committee had been emphasizing with management. Remedial action will be prioritized by the committee to avoid recurrence. Our review of the findings of the Internal Audit work for some areas which were audited revealed certain weaknesses, which were then raised with the public entity for remedial action, while Internal Audit was also apprised of the concerns relating to their processes and scope of work cove red versus the contracted scope. In Year Management and Monthly Quarterly Report The public entity has reported monthly and quarterly to the Treasury as is required by the PFMA. E aluation of Financial Statements We have reviewed the annual financial sta tements in line with GRAP and the supply chain management processes and performance information (AOPO) in line with the PFMA. The MHSC Audit Opinion if financially unqualified with significant non-compliance matters on supply chain and inadequate controls around contract management. Auditor s Report We have reviewed the entityâ&#x20AC;&#x2122;s implementation plan for audit issues raised in the prior year and we are satisfied that the matters have been resolved, although there is room for improvement. The Committee has s atisfied itself that the external auditor is independent of the entity, although there was minimal engagement with the Audit Committee during the audit process, with no direct consultation with the Chairperson. In consultation with Executive Management, the Committee noted the Auditor-Generalâ&#x20AC;&#x2122;s engagement letter and the Audit Strategy and recommended it together with the fees for approval by the Accounting Authority. The Audit Committee concurs and accepts the conclusions of the Auditor -General on the annual financial statements and is of the opinion that the audited annual financial statements be accepted and read together with the report of the Auditor-General.

Ms N Madiba Audit and Ris Committee Chairperson Every mine worker returning from work unharmed every day. Striving for Zero Harm

123