Mine Health and Safety Summit Overview
The Mine Health and Safety Summit held in 2018 at The Lakes Hotel and Conference Centre discussed the need for a new levy model in funding research activities. It highlighted the current levy model's shortcomings and the push for a more risk-based approach aligned with the industry's goal of zero harm. The summit also emphasized the importance of promoting health and safety in mining through various research projects.
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Presentation Transcript
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 1. Introduction 2. Current Levy Model vs 2014 Summit Milestones 3. Rational for Reviewing Levy Model 4. New Levy Model 5. Levy Model Rebates 6. 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. Introductioncont Audited Revenue for the year ended 31 March 2018 70% LEVIES 3% 27% STATE, SURPLUS AND INTEREST R30 million ADMIN FINES R3 million R79 million 4
1. Introductioncont >R.5 billion MHSC expenditure on research and promotion of health and safety in the SAMI Tripartite Approach - 21yrs Reduction in Fatalities 0 No of Mines Paying Levies 894 2020 MHSC COUNCIL 88 2017 457 1996 Number of Research/ Projects Completed Research Expenditure Revenue Collection 94% 73% 492 5
1. Introductioncont Research and Studies Completed No Thrust Area Research/ Studies 1 Human Factors/Behavioural Safety 17 2 Falls of Ground (FOG) 169 3 Rockbursts 42 Explosions and Fires 4 36 5 Machinery and transport systems 58 6 Airborne pollutants 44 7 Physical hazards 12 8 Occupational Diseases 58 9 Special Projects 56 TOTAL 492
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 Commodity Risk Fixed & Variable Components Rewards Production & Employment Figures Past Performance MHSI Annual Report Rebate 10% OH + S High Risk Commodities Higher Levy Production Safety Employment - Health Fixed OHS 90% Variable OHS 10% 9
4. New Levy Modelcont Consist of both Fixed and Variable elements Details Health Safety Total Fixed 45% 45% 90% Variable 5% 5% 10% Total 50% 50% 100% 10
5. Levy Model Rebate 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 TOTAL OHS LEVY REBATE 10% Occupational Health - 5% Safety 5% 11
6. Way Forward Continuous Engagement Implementation Awareness Workshops YE 2020 Stakeholder All provinces 12
RETURN ON INVESTMENT (ROI) EVERY MINE EVERY MINE WORKER WORKER RETURNING RETURNING FROM WORK FROM WORK UNHARMED UNHARMED EVERYDAY EVERYDAY ZERO HARM 0%
THANK YOU THANK YOU
