JOINT PRESENTATION: MINE HEALTH AND SAFETY, MINERAL POLICY AND PROMOTION AND MINERAL REGULATION

1. JOINT PRESENTATION:MINE HEALTH AND SAFETY, MINERAL POLICY AND PROMOTION AND MINERAL REGULATION

2. OUTLINE • Joint Mineral Policy and Promotion (MPP) and Mineral Regulation (MR) • Mine Health and Safety Presentation Structure • Purpose • Brief on previous cycle performance • Challenges • Workplans • Delivery Constraints

3. PURPOSE MPP Develop and review legislation and promote mining and mineral industry MR To regulate the minerals and mining sector to achieve transformation and sustainable development

4. BRIEF ON PREVIOUS CYCLE PERFORMANCE • Mining Growth and Development Task Team (MIGDETT) • Established to respond to the implosion of the economic crisis to develop both short as well as medium to long term interventions to mitigate the impact of the crisis and to recommend interventions sought to maximise benefit for RSA inc. when the economic upturn return • Beneficiation strategy endorsed by Cabinet for circulation to stakeholders – written submissions have been positive • Mining Charter review in progress • Mineral and Petroleum Resources Development (MPRD) amendments assented to by the President • African Mining Partnership (AMP) recognised by African Union Heads of States as a Mining Structure of the AU • Approval sought from Cabinet for RSA to subscribe to the African Diamond Producers Association • Dynamic strategy baseline on derelict and ownerless mines finalised (Rehabilitation and making safe thereof)

5. BRIEF ON PREVIOUS CYCLE PERFORMANCE • Published Codes of Good Practise and Housing and Living Standards • Marketing RSA inc. – investment levels continued to improve until the implosion of the global financial crisis • Maintains the Kimberley Process Certification Scheme • Progressed in reduction of cumulative environmental impact • Support for pumping of extraneous mine water in the Witwatersrand Basin • Created an enabling environment for effective transformation through the legislative framework • Received more than 20 000 applications since May 2004 • Contribution to security of energy supply (Coal and Uranium) • Coal Industry Task Team resuscitated to facilitate access to export facilities for junior/small coal producers

6. BRANCH WORKPLANS • INTERNAL BUSINESS PROCESSES: • Driving Transformation: • Geoscience Act • MPRDA Regulations • Mining Charter Review • Effective implementation of relevant legislation • Drive Innovation • Establish an innovation baseline during this financial year to inculcate a culture of innovation in the department • Building Strategic Partnerships • Effectively participate in bi-national and multilateral commissions and implement agreements reached

7. BRANCH WORKPLANS • CUSTOMER/STAKEHOLDER PERSPECTIVE: • Promote the Minerals and Mining Industry: • Employment Creation and Community upliftment: • Expedient adoption and implementation of mineral beneficiation as policy • Optimising SMME development through small scale mining and beneficiation - • Contribute to GDP growth rate through mining and minerals sector • Improve consultation and feedback • Educate and empower stakeholders • Provide clear mining regulatory framework • Focus on reducing regulatory gaps identified through continuous monitoring and evaluation • Improve Turnaround Times • Currently six months in respect of prospecting rights and 1 year for mining rights • Standard timeframes to acknowledge and respond to queries established

8. CHALLENGES • Retention and recruitment of scarce skills • Resistance and reluctance to transformation by the mining industry • Lack of genuine commitment by beneficiaries of transformation • State Owned Entities (SOE) focusing more on commercial projects, thus compromising fundamental research needed to protect the State’s interests, due to reductions in State funding • State Owned Enterprises reporting to Mining Include: • Petroleum Agency of South Africa • South African Diamond and Precious Metal Regulator • Mintek • Council for Geoscience • State Diamond Trader • Challenges at the State Diamond Trader – created to facilitate local access to rough diamonds and expand beneficiation thereof • Small scale mining development

9. CHALLENGES • Strengthening of mining and minerals legislations to advance transformation and meaningful community participation • Low levels of investment in research and development in the industry • Ensuring security of supply of minerals to support RSA’s growth to achieve sustainable development • The energy demand supply balance remains fragile to support immediate growth in the beneficiation sector • Regulatory gaps in dealing with illegal mining • Monitoring and evaluation of the impact of the regulatory environment, particularly on communities • Implementation of some pillars of the Charter • Quantification of impact and unintended consequences of BEE transaction in mining (typically unsustainable)

10. Mine Health and Safety Inspectorate

11. Purpose To promote and regulate health and safety in the Mining industry

12. Role Of MHSI In Mining Industry Primary Functions • Provide transparent and consistent enforcement • Reduce occupational injuries and ill-health • Improve information management and accessibility • Support new entrants to industry in training • Support public health initiatives e.g. HIV/AIDS • Promote research in OHS • Support and develop tripartism

13. Role Of MHSI In Mining Industry Other Functions: • Administer examinations for certificates of competency • Process applications for exemptions and permissions under MHSA • Assist in prospecting, mining rights and permits applications • Examine and consider Township Developments • Attend public complaints • Administer the MHSC Safety Award Scheme

14. Legal Framework • Mine Health and Safety Act Stakeholders • Organised Labour • Mine owners • State Departments • Suppliers and manufacturers • Members of the public

15. Public entities reporting to the Minister • Mine Health and Safety Council • Mining Qualifications Authority

16. Performance Review 2008/2009 Strategic Objectives Achievements: • Policies, Procedures & Guidelines (Act Implementation) • Development of Integrated Information Management • System • HRD Plan Implementation • 11 Bursaries Awarded • 22 Learnerships Implemented • 34 Internships • Reduction of Accidents (2007/2008): • Fatalities reduced from 220 to 168 (24%) • Injuries reduced from 3879 to 3605 (7%)

17. Performance Review 2008/2009 • Strategic Objectives Achievements (Cont) • Amendment Act finalized and effective on 30 May 2009 • Administrative fines (R200 000 to R1 million) • Prosecutions • Investigations • Mine Health and Safety Inspectorate Public entity • Successful Completion of the Presidential Audit (H&S) • Overall compliance level was 66% • Extensive recommendations • Implementation plan for the recommendations • Over 95% Processing of Applications Inputs relating to • Mining Permits and Rights, Exploration Rights, EMP’s

18. Challenges Relating to Strategic Objectives Achievements: • Audits & Inspections • Implementation of HRD Plan • Investigations & Inquiries • Implementation of Wits and MQA Training • Programmes for Inspectors • Restructuring of Regional Offices • Recruitment and Retention Issues

19. Strategic Objectives • Improve turn around times • Improve service delivery • Provide transparent and consistent enforcement • To ensure compliance to the Mine Health Safety Act • Address health and safety risks in mining • Focus on high risks accidents and diseases • Communicate valid and reliable information on Mine Health and Safety • Improve stakeholder engagement

20. Illegal Miners Accident • 82 illegal miners died at an old African Rainbow Minerals (ARM) mine as result of an underground fire. • Interventions • Stakeholder engagement • Access control • Explosives audits • More involvement of SAPS and other stakeholders

21. Thank You