Mine Health and Safety Council. Presentation to Parliamentary Portfolio Committee on Mineral Resources MHSC Annual Report for 2009/ March 2011

Transcription

1 Mine Health and Safety Council Presentation to Parliamentary Portfolio Committee on Mineral Resources MHSC Annual Report for 2009/ March 2011

2 Acting Chairperson: David Msiza - Acting Chief Inspector of Mines MHSC Team MHSC Office: Thabo Gazi - Chief Executive Officer Navin Singh - Chief Research and Operations Officer David Molapo - Chief Financial Officer Audrey Banyini-Mulaudzi - Health Programme Manager

3 Contents 3 MHSC Mandate MHSC Overview Strategic Objectives of MHSC Monitoring and Reporting Performance Good Governance at MHSC OHS performance in mining sector MHSC in 2011 and beyond

4 The Mine Health and Safety Council Vision: A regulatory framework and climate that produces safe and healthy working conditions for mineworkers and communities affected by mining Mission : To facilitate sustained improvement of occupational health and safety at mines through focused research and guidance on best practice, effective policy advice and legislation, and the development of a pervasive culture of health and safety 4

5 MHSC s Mandate Advise the Minister on all occupational health and safety issues in the mining industry relating to legislation, research and promotion Review and develop legislation for recommendation to the Minister Promote health and safety in the mining industry Oversee research in relation to health and safety in the mining industry Liaise with other bodies concerned with health and safety issues 5

6 MHSC s Composition State Labour Employers Legislation Regulations Guidelines Standards Health Policy Health information Health regulations Research input Research needs Research programmes Technology Transfer Operational Execution and Implementation 6

7 Determining MHSC s Strategic Plan MHSC revised its strategic priorities on a three-year rolling plan taking into account: Opportunities and challenges facing the broader mining industry; Past performance of the MHSC and related progress; Relevance and efficacy of existing strategic objectives; The mandate of the MHSC SWOT analysis on MHSC Current and future opportunities and challenges

8 Learning and Growth: Priorities to create a climate that supports organisational change, innovation and growth. Monitoring MHSC s Strategic Plan MHSC developed the Balanced Scorecard to monitor performance against the strategic objectives: Core Features of a BSC are: Financial: Strategy for growth, sustainability, and risk viewed from the perspective of the stakeholder Customer: Strategy for creating value and differentiation from the perspective of the customer Internal Business Processes: Strategic priorities for various business processes that create customer and stakeholder satisfaction

9 Monitoring MHSC s Strategic Plan MHSC strategic objectives alignment with the BSC 1.Customer Perspective 2. Internal Business Provide advice to the Minister Influence the Health and Safety Legislative environment Promote a Health and Safety Culture Improve Tripartite Partnership and Cooperation Drive the implementation of the Summit 2013 actions within the mining industry Build Health and Safety Capacity in the Sector Monitor the improvement of the lifestyle of mine workers Manage OHS research Maintain effective operation of the Council Support OHS Monitoring and Evaluation Initiatives 3. Learning and Growth 4. Financial Perspective Build Capacity in the MHSC Office Build Capacity in the Council to ensure knowledge of Councillors matches the MHSC strategic objective Manage OHS research Maintain effective Financial Management Maintain a high level of risk management

10 Monitoring MHSC s Strategic Plan - BSC Promote Health and Safety Culture in the mining industry Customer and Stakeholder Regular & Timeous Feedback Provide advice & reliable information on OHS Influence Legislation Strengthen Tripartite Partnerships Improve efficiency Adopt & Share Best Practice Build / Leverage Networks Internal Process Embed processes Automate processes Review business processes & procedures Engage in Purposeful Research Benchmark against best practice Understand Current & Future OHS Needs Educate & Empower our Stakeholders Understand Stakeholder Needs & Expectations Efficient Business Processes Knowledge Leadership Stakeholder and Customer Relationship Management Learning & Growth Attract, Develop & Retain appropriate staff Embed Core Values Build Technological Capability Build Accountability Financial Improve Revenue Collection Align Budget with Strategy Manage Risk Leverage Assets optimally Improve Cost Structure

11 Monitoring MHSC s Strategic Plan - BSC The graphical representation of the performance against the planned initiatives was tracked using a colour coding system = On Target = Approaching target = Off target Progress was reported to MHSC members and to the Minister on a quarterly basis

12 MHSC strategic objectives alignment with the BSC 1.Customer Perspective 2. Internal Business Provide advice to the Minister Influence the Health and Safety Legislative environment Promote a Health and Safety Culture Improve Tripartite Partnership and Cooperation Drive the implementation of the Summit 2013 actions within the mining industry Build Health and Safety Capacity in the Sector Monitor the improvement of the lifestyle of mine workers Manage OHS research Maintain effective operation of the Council Support OHS Monitoring and Evaluation Initiatives 3. Learning and Growth 4. Financial Perspective Build Capacity in the MHSC Office Build Capacity in the Council to ensure knowledge of Councillors matches the MHSC strategic objective Measuring performance Manage OHS research Maintain effective Financial Management Maintain a high level of risk management

13 # OBJECTIVE MEASURE C1 C2 C3 C4 C5 = On Target = Approaching target = Off target Measuring performance Customer/ Stakeholder Perspective Promote Health and Safety Culture in the Mining Industry OHS Culture framework developed Regular & Timeous Feedback % compliance with policy requirements Provide Advice & Reliable Information on No of OHS advice reports submitted to Minister OHS Stakeholder Satisfaction Survey (Impact Assessment) Influence Legislation No of recommendations (legislative) submitted % of recommendations promulgated Strengthen Tripartite Partnerships No of high-level stakeholder engagements to discuss issues % tripartite initiatives implemented (summit action plan)

14 Objectives Measures Target Actual Comments Provide Advice 1report to the Minister per quarter No. of OHS advice reports Measuring performance Customer/ Stakeholder Perspective 4 ACHIEVED The reports covered the following topics: Silicosis roadshow Tuberculosis and treatment facilities, Compensation system and challenges for mine workers and work completed by MHSC on Methane Explosions During the 2009/10 financial year, four advice reports were submitted to the Minister. The advice reports were on based on outcomes of research work completed, implementation of research outcomes and issues raised by stakeholders.

15 Measuring performance Customer/ Stakeholder Perspective

16 Measuring performance Customer/ Stakeholder Perspective Objectives Measures Target Actual Comments Influence the Health and Safety Legislative Environment Legislative review completed June 2009 Y NOT ACHIEVED The regulations submitted include: o falls of ground regulations ooff-shore installations regulations and ochapter 17regulations: Survey, mapping and mine plans Since1996, approximately 66 submissions on amendments to the MHSA and regulations dealing with various aspects of health and safety have been submitted to the DMR. During the 2009/10 financial year, three regulations were submitted against a target of 6.

17 Measuring performance Customer/ Stakeholder Perspective Objectives Measures Target Actual Comments Promotion of Health and Safety Culture Improved OHS Culture Annually (review) In Progress PARTIALLY ACHIEVED The development of the culture transformation framework is progressing well. Between April 2009 and March 2010, a total of 58 safety awards were presented to the mines. At a summit in September 2008, the stakeholders identified a need to develop a culture transformation framework, the Changing Minds, Changing Mines. The aim of the Changing Minds, Changing Mines project is to develop a health and safety culture transformation framework that will allow the South African mining industry to significantly improve its health and safety culture.

18 MHSC strategic objectives alignment with the BSC 1.Customer Perspective 2. Internal Business Provide advice to the Minister Influence the Health and Safety Legislative environment Promote a Health and Safety Culture Improve Tripartite Partnership and Cooperation Drive the implementation of the Summit 2013 actions within the mining industry Build Health and Safety Capacity in the Sector Monitor the improvement of the lifestyle of mine workers Manage OHS research Maintain effective operation of the Council Support OHS Monitoring and Evaluation Initiatives 3. Learning and Growth 4. Financial Perspective Build Capacity in the MHSC Office Build Capacity in the Council to ensure knowledge of Councillors matches the MHSC strategic objective Measuring performance Manage OHS research Maintain effective Financial Management Maintain a high level of risk management

19 Measuring performance = On Target = Approaching target = Off target INTERNAL BUSINESS PROCESSES Internal Perspective - Efficient Business processes # OBJECTIVE MEASURE IP1 Improve Efficiency % adherence to prescribed timeframes IP2 Embed Processes % adherence to processes IP3 Automate Processes % of processes automated IP4 Review Business Processes & % of business processes reviewed Procedures Internal Perspective - Knowledge Leadership IP5 Adopt & Share Best Practice Number of best practices identified, adopted and shared IP6 Engage in Purposeful Research Number of research projects completed IP7 Benchmark Against Best Practice Completed Best Practice Survey Y/N IP8 IP 9 Understand Current & Future OHS Needs Understand Stakeholder Needs & Expectations Annual OHS needs analysis report approved Implement Assessment Survey

20 = On Target = Approaching target = Off target Measuring performance INTERNAL BUSINESS PROCESSES Internal Perspective - Stakeholder and Customer Relationship management # OBJECTIVE MEASURE IP 10 IP 11 IP 12 Educate & Empower our Stakeholders Educate & Empower our Stakeholders Understand Stakeholder Needs & Expectations Number of promotional programmes delivered to stakeholders Number of stakeholder interactions Implement Assessment Survey

21 Objectives Measures Target Actual Comments Manage OHS research Approved OHS research programmes for implementation Measuring performance Internal Business Process Managing OHS Research Quarterly Achieved ACHIEVED Research programme for 2009/2010 was approved by SIMRAC and MHSC Technical Experts used to advise SIMRAC The manner in which the OHS research was determined and managed was efficiently fundamentally managed. changed during the 2009/2010 reporting period. A significant change was the replacement of tripartite technical advisory committees to the use of technical experts to provide guidance and direction to the research providers. Further to this the identification of research focus areas was improved by in-depth analysis of the mining sector statistics on OHS performance

22 Research prioritisation for OHS Total Fatalities per Classification MISC Total Fatalities per Classification 3% EXP 2% MAC 7% GEN 14% FOG 38% MAC 7% EXP 2% GEN 14% MISC 3% EL 3% FF 7% RB 8% FOG 38% TMM 18% EL 3% FF 7% RB 8% TMM 18% 22

23 Adherence to timeframes for document circulation Internal Business Process Effective operation of MHSC Objectives Measures Target Actual Comments Approved strategy Approved business plan Maintain effective operations of MHSC The compliance requirements were met. In order to achieve this objective, the MHSC undertook four key focus areas to monitor performance Improve Efficiency Embed Processes Automate Processes Review Business Processes & Procedures Measuring performance Annually Achieved Three-year rolling strategic plan was approved by MHSC. Balanced Score Card to monitor performance

24 Measuring performance Internal Business Process Support OHS Monitoring & Evaluation Objectives Measures Target Actual Comments Support OHS Quality Monitoring Annually/ Quarterly Achieved ACHIEVED The system is in an advanced Monitoring and System Evaluation state of being rolled out and implemented across all mining regions. In support of the initiatives to support and monitor OHS in the sector, the MHSC adopted the Management Information System that was developed by the Department of Mineral Resources.

25 MHSC strategic objectives alignment with the BSC 1.Customer Perspective 2. Internal Business Provide advice to the Minister Influence the Health and Safety Legislative environment Promote a Health and Safety Culture Improve Tripartite Partnership and Cooperation Drive the implementation of the Summit 2013 actions within the mining industry Build Health and Safety Capacity in the Sector Monitor the improvement of the lifestyle of mine workers Manage OHS research Maintain effective operation of the Council Support OHS Monitoring and Evaluation Initiatives 3. Learning and Growth 4. Financial Perspective Build Capacity in the MHSC Office Build Capacity in the Council to ensure knowledge of Councillors matches the MHSC strategic objective Measuring performance Manage OHS research Maintain effective Financial Management Maintain a high level of risk management

26 = On Target = Approaching target = Off target Learning & Growth # OBJECTIVE MEASURE Measuring performance LEARNING & GROWTH L1 Attract, Develop & Retain Appropriate Staff No of vacancies Turnover Rate % of payroll spend on training and development L2 Embed Core Values Employee opinion survey ratings Awareness session conducted (Y/N) L3 Build Technological Capability % implementation of integrated IT & knowledge management infrastructure L4 Build Accountability % employees with performance agreements

27 Learning and Growth Objectives Measures Target Actual Comments Internal MHSC Capacity Building Strategic job readiness Annually Partial achieved PARTIALLY ACHIEVED Job profiles were completed in the past year as the basis for the competence framework. Each employee signed a performance agreement. Build Capacity in Council to ensure knowledge of Councillors matches the MHSC strategic objectives Strategic alignment Measuring performance Annually Achieved ACHIEVED Council members and committees completed an induction course.

28 MHSC strategic objectives alignment with the BSC 1.Customer Perspective 2. Internal Business Provide advice to the Minister Influence the Health and Safety Legislative environment Promote a Health and Safety Culture Improve Tripartite Partnership and Cooperation Drive the implementation of the Summit 2013 actions within the mining industry Build Health and Safety Capacity in the Sector Monitor the improvement of the lifestyle of mine workers Manage OHS research Maintain effective operation of the Council Support OHS Monitoring and Evaluation Initiatives 3. Learning and Growth 4. Financial Perspective Build Capacity in the MHSC Office Build Capacity in the Council to ensure knowledge of Councillors matches the MHSC strategic objective Measuring performance Maintain effective Financial Management Maintain a high level of risk management

29 = On Target = Approaching target = Off target Measuring performance FINANCIAL PERSPECTIVE Financial Perspective # OBJECTIVE MEASURE F1 Improve Revenue Collection % Improvement on Debtors ageing F2 Align budget with strategy % Total Budget Allocated to Strategy F3 Leverage Assets Optimally ROI on People & Infrastructure F4 Improve Cost Structure Opex Ratio F5 Manage Risks % reduction in Substantial Findings

30 Effective Financial Management Measuring performance Financial Perspective Objectives Measures Target Actual Comments Unqualified audit Annually Achieved ACHIEVED report The 2008/2009 the report received from the Auditor General was unqualified. Significant capacity constraints however improvements were noted with implementation of systems and controls. The levy collection was significantly improved by 65%. An approved risk Annual Achieved ACHIEVED management Quarterly A risk management plan was Risk plan implemented. Management Risk In support of the Management initiatives to support and monitor OHS in the sector, The risk the MHSC management adopted register the Management Information System that was developed by the Department of Mineral Resources. has reduced

31 Summary of performance for 2009/ Customer Perspective score 2. Internal Business score Provide advice to the Minister Influence the Health and Safety Legislative environment Promote a Health and Safety Culture Improve Tripartite Partnership and Cooperation Drive the implementation of the Summit 2013 actions within the mining industry Manage OHS research Maintain effective operation of the Council Support OHS Monitoring and Evaluation Initiatives Build Health and Safety Capacity in the Sector Monitor the improvement of the lifestyle of mine workers 3. Learning and Growth score 4. Financial Perspective score Build Capacity in the MHSC Office Maintain effective Financial Management Build Capacity in the Council to ensure knowledge of Councillors matches the MHSC strategic objective Maintain a high level of risk management

32 Summary of performance for 2009/2010 MHSC had no audit queries raised by the Auditor-General on Performance Information Significant focus on Stakeholder Perspective to provide information on OHS issues to Ministry, Employers and Employees. Efficacy of MHSC Operations by introduction of new systems and processes. Financial Management and Risk reduction continuous and significant improvement through the year.

33 Good Governance - Internal Audit The Audit Committee is of the opinion, based on the information and explanations given by management and the internal auditors on the results of their audits and the status in addressing the matters raised, that the internal accounting controls are operating satisfactorily, to ensure that the financial records may be relied upon for preparing the annual financial statements, and accountability for assets and liabilities is maintained. Nothing significant has come to the attention of the Audit Committee to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year under review. The Committee is satisfied that the internal audit function is operating effectively and that it continues to provide assurance in relation to the risks pertinent to the MHSC in its audit. Ms. LJ Fosu Chairman of the Audit Committee 33

34 ood Governance - Financial Statements STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH ,916 62,382 Income Expenditure Revenue from non-exchange transactions 52,093 52,921 Revenue from exchange transactions 9,285 Finance income 7,235 Other income Research expenditure Administrative expenses Staff costs Depreciation and amortisation 45,004 37,671 18,462 16,394 4,194 5,997 9,937 9,475 1,095 Z88 Operating expenses 10,959 4,269 Promotion of Health And Safety Finance costs Net Surplus for the year 14,912 24,711 34

35 ood Governance - Financial Statements Under-expenditure primarily related to Research. The research programme approved - research projects approved in line with programme. Contractual agreements signed to utilise research budget. Surplus does not imply uncommitted simply that expense has not been incurred as yet. Monies contractually committed. Expenditure due to project progress is not a fair reflection on performance. 35

36 Good Governance - Auditor-General The MHSC received an UNQUALIFIED REPORT for the year under review 36

37 Mining Sector OHS performance

38 Target 1 : Zero fatalities and injuries

39 Target 1 : Zero fatalities and injuries

40 Target 2 : Eradication of Silicosis Milestone Target for Respirable Crystiline Silica (< 0.10 mg/m3) 95 % Target % Compliance GP NW FS LP KN MP WC NC EC RSA Regions

41 Target 3 : Elimination of NIHL

42 ummary mining sector OHS performance So how is SAMI doing? Significant improvement since Many initiatives by all stakeholders. Still higher than what is demanded. Combined collaborative approach by all stakeholders to improve performance Not all gloom

43 ZERO HARM is still the paramount Not just fatalities All injuries Health gaining increased focus New MHSC Strategic Plan for New internal process at MHSC as part of internal continuous improvement MHSC into the future 43

44 ZERO HARM is still the paramount Not just fatalities All injuries Health gaining increased focus New MHSC Strategic Plan for MHSC into the future 44

45 ZERO HARM is still the paramount Not just fatalities All injuries Health gaining increased focus New MHSC Strategic Plan for New internal process at MHSC as part of internal continuous improvement MHSC into the future 45

46 ZERO HARM is still the paramount Not just fatalities All injuries Health gaining increased focus MHSC into the future New MHSC Strategic Plan for New internal process at MHSC as part of internal continuous improvement The roll-out of the Cultural transformation Framework Research Dissemination - paramount The finalisation of the Centre of Excellence Integration of seismic network project CGS 3 year programme 46

47 Strengths Tripartism Uniformed voice by all towards ZERO HARM Sound Risk Management Mine Health and Safety Council Challenges The need for proactive/leading indicators Lack of research capacity nationally Opportunities The Centre of Excellence The Cultural Transformation Framework Research on Acid Mine Drainage & Dust from Tailings Disposal Facilities

48 ZERO HARM THE ULTIMATE Thank you Thank you