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Join Mr. Karabo Mkwanazi, MHSC Chief Financial Officer, at the 2018 Mine Health and Safety Summit as he presents the outline for the new levy model aimed at improving mine health and safety practices. Discover the rationale behind reviewing the current model, the principles of the new model, and the rebates for good occupational health and safety practices. Find out how this new model will contribute to the journey of achieving zero harm in the mining industry.
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2018 Mine Health and Safety Summit The Lakes Hotel and Conference Centre 19 October 2018 NEW LEVY MODEL Mr. Karabo Mkwanazi - MHSC Chief Financial Officer
Presentation Outline • Introduction • Current Levy Model vs 2014 Summit Milestones • Rational for Reviewing Levy Model • New Levy Model • Levy Model Rebates • Way Forward 2
1. Introduction • The Mine Health and Safety Council (MHSC) funds its research activities with levies collected from mines. • Levies are payables in terms of regulation 4(1) of the Regulations relating to the Payment of Levies by Mines on the basis of Health and Safety Risk, published under Government Notice 846 in Government Gazette 29144 of 18 August 2006 (the “Regulation”). • The Regulation should be read with section 98(1)(zJ) of the Mine Health and Safety Act,1996 (Act 29 of 1996,as amended) (The MHSA). 3
1. Introduction…cont • Audited Revenue for the year ended 31 March 2018 • 70% • LEVIES • R79 million • 3% • ADMIN FINES • R3 million • 27% • STATE, SURPLUS AND INTEREST • R30 million 4
1. Introduction…cont >R.5 billion MHSC expenditure on research and promotion of health and safety in the SAMI Tripartite Approach - 21yrs Reduction in Fatalities No of Mines Paying Levies 0 2020 894 MHSC COUNCIL 88 2017 457 1996 State Organised Labour Employers Based on levied in 2017/18 FY The Journey to Zero Harm So Far… Revenue Collection Research Expenditure Number of Research/ Projects Completed 94% 73% 492 Collection of Levies from the mines. Estimated expenditure based on ABC Right to refuse dangerous Work PPE for WIM 5
1. Introduction…cont Research and Studies Completed
2. Current Levy Model vs 2014 Summit Milestones • During the 2014 Summit, the stakeholder in the South African Mining Industry (SAMI) set a target of zero harm. • The current levy model is based on the number of fatal and reportable injuries over a 3-year rolling period and the average labour figures for the previous year. • Not aligned to the goal of zero harm • Not risk based, but more reactive in addressing the occupational health and safety issues. • No rewards for good Occupational Health and Safety (OHS) record. 7
3. Rational for Reviewing the Levy Model • In order to continue with world-class OHS research intended to achieve Zero Harm, the current levy model needed to be reviewed. • As the industry strives toward zero harm, the number of accidents are expected to reduce to zero. • The current levy model is not sustainable • This presents a high risk of a below standard OHS research – and non-achievement of zero harm. 8
4. New Levy Model • Principles of New Levy Model • Risk Based • Past Performance – MHSI Annual Report • Commodity Risk • High Risk Commodities – Higher Levy • Production & Employment Figures • Production – Safety • Employment - Health • Fixed & Variable • Components • Fixed – OHS – 90% • Variable – OHS – 10% • Rewards • Rebate – 10% • OH + S 9
4. New Levy Model…cont Consist of both Fixed and Variable elements 10
TOTAL OHS LEVY REBATE 5. Levy Model Rebate 10% • Occupational Health - 5% • Safety – 5% • The mines will now be rewarded for good OHS practices • The Health rebate will be based on the achievement of 2014 Milestone target • The Safety rebate will be based on zero fatalities and serious injuries 11
6. Way Forward • Continuous Engagement • Stakeholder • Awareness • Workshops • All provinces • Implementation • YE 2020 12
EVERY MINE WORKER RETURNING FROM WORK UNHARMED EVERYDAY ZERO HARM RETURN ON INVESTMENT (ROI) 0%
