mine health and safety council presentation to parliamentary portfolio committee on mineral...
TRANSCRIPT
Mine Health and Safety Council
Presentation to Parliamentary Portfolio Committee on Mineral Resources
MHSC Annual Report for 2010/2011
27th January 2012
Contents
–MHSC Mandate
–MHSC Overview
–Strategic Objectives of MHSC
–Monitoring and Reporting Performance
–Good Governance at MHSC
–MHSC in 2012 and beyond
2
Vision:A regulatory framework and climate that
produces safe and healthy working conditions for mineworkers and communities affected by
mining
Mission :To facilitate sustained improvement of
occupational health and safety at mines through focused research and guidance on best practice, effective policy advice and
legislation, and the development of a pervasive culture of health and safety
3
The Mine Health and Safety Council
• Advise the Minister on all occupational health and safety issues in the mining industry relating to legislation, research and promotion
• Review and develop legislation for recommendation to the Minister
• Promote health and safety in the mining industry• Oversee research in relation to health and safety in
the mining industry• Liaise with other bodies concerned with health and
safety issues
4
MHSC’s Mandate
Mine Health & Safety Council
Mining Regulations Advisory Committee
(MRAC)
Mining Occupational Health Advisory
Committee (MOHAC)
Safety in Mines Research Advisory Committee
(SIMRAC)
Mining Industry TB & HIV/AIDS Advisory
Committee(MITHAC)
Audit & Risk Committee
LegislationRegulationsGuidelinesStandards
Health PolicyHealth informationHealth regulationsResearch input
Research needsResearch programmesTechnology Transfer
MHSC Office: Operational Execution and Implementation
StateLabourEmployers
5
MHSC’s Composition
HIV/AIDS policyTB guidelinesHIV/AIDS for mining in line with NSP
The main task of the MHSC is to advise the Minister of Mineral Resources on OHS legislation and research outcomes towards improving OHS performance in SA mines
MHSC’s Strategic PlanBalance Scorecard is the best way to monitor and report the organisational performance -
provides an integrated view of the overall performance
1.Customer Perspective 2. Internal Business Focus on customers satisfaction to ensure that do not find other suppliers who meet this need. Poor performance in this area is a leading indicator of future decline.
Three key clusters that focus on day to day operations; development of products and services to meet the customer needs and customer relationship management.
3. Learning and Growth 4. Financial Perspective Growth in human capital, information capital and organisational is critical to the success of any and all organisations
To ensure financial sustainability through revenue collection; reducing operational costs and managing financial risks
1.Customer Perspective 2. Internal Business
Provide advice to the Minister Influence the Health and Safety Legislative
environment Promote a Health and Safety Culture Improve Tripartite Partnership and
Cooperation
Improve Efficiency
Embed & Automate processes
Review processes
Engage in purposeful OHS research
Benchmark against, Adopt & Share in OHS Best Practice
Understand current and future OHS needs
Educate and empower stakeholders
Leverage networks3. Learning and Growth 4. Financial Perspective Attract, Develop and Retain Appropriate
Staff
Embed Cored Values
Build Technology Capability
Build Accountability
Improve Revenue Collection Align Budget with Strategy Leverage Assets Optimally Improve cost structure
Monitoring MHSC’s Strategic PlanMHSC Strategic plan is a 3 year rolling plan – based on stakeholder needs, mining industry opportunities and challenges; outcomes of industry initiatives and plans in relation to OHS
Embed Core Values
Attract, Develop & Retain appropriate
staff
Learn
ing
&
Gro
wth
Build Technological Capability
Cu
sto
mer
an
d S
takeh
old
er
Efficient Business Processes
Inte
rnal P
rocess
Knowledge Leadership Stakeholder and Customer Relationship Management
Understand Stakeholder Needs & Expectations
Adopt & Share Best Practice
Understand Current & Future
OHS Needs
Engage in Purposeful Research
Automate processes
Review business processes & procedures
Embed processes
Leverage Assets
optimally
Improve Revenue
Collection Improve Cost
Structure
Fin
an
cia
l Align Budget with Strategy
Influence Legislation
Promote Health and Safety Culture in the mining industry
Cu
sto
mer
an
d S
takeh
old
er
Provide advice & reliable information
on OHS
Strengthen Tripartite
Partnerships
Regular & Timeous
Feedback
Improve efficiency
Educate & Empower our Stakeholders
Build / Leverage Networks
Benchmark against best practice
Build Accountability
Manage Risk
Strategic Plan - BSC Map
MHSC strategic objectives alignment with the BSC 1.Customer Perspective
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
Build Capacity in the MHSC Office
Build Capacity in the Council to ensure knowledge of Councillors matches the MHSC strategic objective
Manage OHS research Maintain effective Financial
Management Maintain a high level of risk
management
Measuring performance
Measuring performance – Objective 1
COMMENTARY• The Culture Transformation was developed towards end of 2009 – lack of approval impacted negatively on
implementation.• Full compliance on reporting as per Ministry and Treasury requirements.• Advisory notes were sent to the Minister of Mineral Resources on TB and HIV/AIDS, AMD. Mine Disaster in
Chile and OHS research programme.• Although no legislation was developed inputs were provided on Enforcement Guidelines as well as MHS Act• Other regulations under discussion in the year were :
(i) The Shafts and Winders regulations (ii)Chapter 10. Review of Legal Appointments.(iii) Further interaction with ECSA (iv)Amendments to Conveyor Belts
Customer and Stakeholder Perspective
OBJECTIVE MEASURE TARGET ACTUAL
REASONS FOR DEVIATION
Promote Health and Safety Culture in the Mining Industry
OHS Culture framework developed
Y y Approval of the Cultural Transformation framework was obtained at the Council meeting in April 2011. Stakeholders still want to discuss the framework report.
% implementation of OHS culture framework plan
90% 0% The Culture Transformation Framework was approved in April 2011 due to the dependency on the approval, the implementation plan was not developed.
Regular & Timeous Feedback % compliance with policy requirements
100% 100% Compliance with required timeframes for submission of plans and reports is high. The MHSC management quarterly report, business plan and budget was submitted timeously.
Provide Advice & Reliable Information on OHS
No of OHS advice reports submitted to Minister
4 4 A number of topical issues (e.g. Chilean Mine Disaster and Acid Mine Drainage) were addressed.
Stakeholder Satisfaction Survey (Impact Assessment)
75% - The survey tool was approved however the survey was not undertaken due to the dependency on the website to disseminate the survey.
Influence Legislation No of recommendations (legislative) submitted
6 0 Inputs to the Enforcement guidelines were made.Workshop held on the proposed amendments to the MHSA.
Strengthen Tripartite Partnerships
No of high-level stakeholder engagements to discuss issues
2 1 The Deputy Minister visited the MHSC Offices in February 2011 (due to the late notification not all stakeholders were able to attend.)
Representation of stakeholders at scheduled meeting
40% 75% The MHSC and its sub-committees met regularly for the period under review with attendance being generally good.
% tripartite initiatives implemented (summit action plan)
80% 70% Most of the projects on the action plan are being developed through the Culture Transformation Framework and as such have been delayed
MHSC strategic objectives alignment with the BSC 1.Customer Perspective 2. Internal Business
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
Measuring performance
Measuring performance – Objective 2
COMMENTARY• The review of Business Processes was critical in the year and was completed• Capacity constraints impacted negatively on other initiatives that lead to some only being partially completed• Research projects commenced late due to lack of adequate proposals received from research providers with
significant consequences.• Commissioned specialised task team to investigate falls of ground in Platinum following Marikana Incident
Internal Perspective - Efficient Business processesOBJECTIVE MEASURE TARGET ACTUAL REASONS FOR DEVIATION
Improve Efficiency % adherence to prescribed timeframes
90% 90% The target was met however a few challenges were still experienced in the submission of the document packs.
Embed Processes % adherence to processes
100% 77% Changes to research management where implemented during the year . Business processes for all unites were reviewed.
Automate Processes % of processes automated
90% 40% Challenges in IT resourcing and staffing and Problems with website
Review Business Processes & Procedures
% of business processes reviewed
100% 100% All process for MHSC activities were updated
Internal Perspective - Knowledge Leadership
Adopt & Share Best Practice Number of best practices identified, adopted and shared
1 0 Specific programmes identified were effective methods of transferring research outcomes to target audiences is needed. The programmes were identified by not rolled out to members nor the sector.
Engage in Purposeful Research
Champion mine project perception and rating
75% 0 Survey to be developed in 2nd half of the 2010/2011 year. This was not achieved to the capacity constraints not only the Research Department but within MHSC Offices.
%age of Projects on brief, on budget ,on time
70% 40% Delays experienced due to late approval and was compounded by lack of submissions of pre-proposals on research questions. All new projects started but are late.
Benchmark Against Best Practice
Completed Best Practice Survey
Y Y SA practices identified as leading in most areas of OHS and as a result the focus has been on utilising the services within the country and continue with the internal research processes.
Understand Current & Future OHS Needs
Annual OHS needs analysis report approved
Y Y Needs analysis for 20111/2012 completed and approved by MHSC.
Internal Perspective - Stakeholder and Customer Relationship management
Educate & Empower our Stakeholders
%age implementation of communication plan
3 0 MHSC communication strategy approved. The appointment of the MHSC Communications Manager will ensure that this gets implemented.
Educate & Empower our Stakeholders
Number of stakeholder interactions
3 2 In February 2011, the MHSC conducted an Induction Programme for all the stakeholders.Presentations were given to stakeholders on the research processes as well as the research programmes and projects.
Understand Stakeholder Needs & Expectations
Implement Assessment Survey
Y N Survey tool not rolled out
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
Measuring performance
Measuring performance – Objective 3
COMMENTARY• Metrics put in place to focus on training of individuals as well as corporate self improvement• During the year, post graduate studies for one employee was funded.
Learning & Growth
OBJECTIVE MEASURE TARGET ACTUAL REASONS FOR DEVIATION
Attract, Develop & Retain Appropriate Staff
No of vacancies 2 3 • The following vacancies have not been filled 1. Safety Research Programme Manager 2. IT Specialist 3. Receptionist
% of payroll spend on training and development
1% 2.2% The following training took place on the period under review: (1) Balanced Scorecard training.(2) Emergency training (3) SAMSHA training. (4) Emergency training; (5) Tax workshop (6) PHD registration
Embed Core Values Employee opinion survey ratings
3/4 N/A The employees survey process was not completed by the end of fourth quarter under review.
This will be prioritised for the first quarter of 2011/12
Build Technological Capability
% implementation of integrated IT & knowledge management infrastructure
90% 95% HR processes and policies have been updated, loaded SAMSHA on system
effective use of SAMSHA to be enforced
Build Accountability % employees with performance agreements for 2010/11
100% 96% Not all the staff (1) had their assessments signed by the end of the year.
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
Maintain effective Financial Management
Maintain a high level of risk management
Measuring performance
Measuring performance – Objective 4
COMMENTARY• Improvement in revenue collection from levies collectable from operating mines • Improvement in risk reduction for the organisation• Return on Investment (ROI) was to measure development costs of staff and capital costs against the achieving
of strategic objectives – however was not undertake due to capacity constraints • Reporting in line with all Ministry and Treasury Requirements• Unqualified audit report from Auditor General
Financial Perspective
OBJECTIVE MEASURE TARGET ACTUAL REASONS FOR DEVIATION
Improve Revenue Collection % Improvement on Debtors ageing 30% 35%Though there is improvement on collections, the challenge remains with the accuracy of the billing data supplied by DMR
Align budget with strategy % Total Budget Allocated to Strategy 80% 79% Expenditure is in line with approved Business Plan .
Leverage Assets Optimally ROI on People & Infrastructure 100% 0%
Measure has not been developed.
Improve Cost Structure Opex Ratio 0.2 0.21 Savings as a result of vacancies and reduced staff costs.
Manage Risks % reduction in Substantial Findings 50% 64%
Exceeded target set.External Audit complete.Unqualified audit report was obtained from 2009/2010.Number of findings. Reduced compared to 2008/9 report
• MHSC had no audit findings raised by the Auditor-General
• Significant focus on Stakeholder Perspective – to provide information on OHS issues to Ministry, Employers and Employees.
• Efficacy of MHSC Operations by introduction of new systems and processes.
• Financial Management and Risk Reduction ongoing and there has been significant improvement
• Progress reports to theMinister of Mineral Resourceson a quarterly basis
Summary of performance for 2010/2011
• Research Projects 2010/2011 that were commissioned by the MHSC were:
• Impact of Dust from Tailings Dam Facilities on neighbouring communities.
• Development of Framework for reporting and management system for Occupational Health.
• Training and Awareness programme for Thermal Stress.
• Minimising the risk of seismicity in platinum mines.
• Integration of local mine seismic networks to national networks.
• Personal Protective Equipment for Women in Mining.
• Guidelines for Workers Incapacity due to Ill Health
• Guidelines for Fitness for Work
Summary of performance for 2010/2011
19
Forecast of Research Budget Split for 2010-
2011The Audit Committee is satisfied, with the content and quality of the monthly and quarterly reporting as submitted by the Council during the year under review.
The Audit Committee is satisfied with the plan to be implemented by management in addressing these challenges and the impact will be monitored continuously in the new financial year.
The Committee is satisfied that the internal audit function is operating effectively and that it continues to provide assurance in relation to the risks pertinent to the MHSC in its audit.
Chairperson of the Audit Committee
Good Governance - Internal Audit
20
Forecast of Research Budget Split for 2010-2011
Opinion In my opinion, the financial statements present fairly, in all material respects, the financial position of the Mine Health Safety Council as at 31 March 2011, and its financial performance and cash flows for the year then ended in accordance with the SA Standards of GRAP and the requirements of the PFMA.
Good Governance - Auditor General
21
Good Governance - Financial Statements
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2010 2011 2010
Income
63,883 59,916
Revenue from non-exchange transactions 57,020 52,903
Revenue from exchange transactions
Finance income
6,500
7,235
Other income 363 588
Expenditure
50,586 45,004
Research expenditure21,459 18,462
Administrative expenses 5,871 4,194
Staff costs 9,055 9,937
Depreciation and amortisation 860 1,095
Operating expenses 12,255 10,959
Promotion of Health And Safety 130 9
Finance costs 955 348Net Surplus for the year 13,298 14,912
The MHSC continues to work tirelessly to make a meaningful contribution towards the realisation of ZERO HARM at South African mines.
Reaching the industry’s 2013 milestones is indeed a mammoth task that calls for dedication and co-operation from all
Mine Health and Safety Council
Strengths• Tripartism
• Uniformed voice by all towards ZERO HARM
• Sound Risk Management
Mine Health and Safety Council
Opportunities• The MHSC OHS Summit
• The Centre of Excellence
• The Cultural Transformation Framework
• Focus on Technology Transfer
• Reporting on OHS in mining charter
Challenges• The need for proactive/leading
indicators
• Lack of research capacity – nationally
• Research Implementation
• Reporting of data