The target of achieving zero harm on mines and ensuring that all employees return home safely every day must remain the ultimate goal of the industry, says international law firm Hogan Lovells partner and mining head Warren Beech.

“Sitting in on fatality enquiries is one of the most difficult things that a person can go through. The family of a deceased employee is present at these enquiries and they have to hear, often in graphic detail, about how their loved one died. These hearings are very sobering for mine management and other employees to participate in,” he tells Mining Weekly.

Nonetheless, Beech says the mining sector achieving its lowest number of fatalities (84) and injuries (2 569) is testament that the industry is heading in the right direction.

“All parties, including mines, the Department of Mineral Resources (DMR), workers and trade unions, can take credit for the significant drop in injuries and fatalities recorded,” he states.

Beech acknowledges, however, that the record five-month-long strike in the platinum sector and the sporadic strikes in other commodity sectors last year did “somewhat” impact on these statistics, with no mine injuries occurring during these periods, as people were not at work.

“It remains a major question whether the 2014 figures are sustainable for this year, particularly when mines reach full capacity, and strict targets will have to be met by mine managers.”

Beech believes that, in terms of injuries and fatality numbers, the juniors will be the ones to watch more closely than the majors, which generally have the resources and structures in place to support health and safety systems, as they may be under more pressure than the majors to increase mine production.

Beech highlights that some of the amendments proposed in the draft Mine Health and Safety Amendment Bill could result in mines facing stiffer fines for noncompliance with health and safety regulations.

“The proposed amendments intend to make the heads of organisations, namely CEOs, responsible and potentially liable for all health and safety matters at mines.”

He points out that, currently, a maximum fine of R1-million might be imposed on a company for specified criminal contraventions of the Mine Health and Safety Act. However, the draft Bill proposes that the fine be increased to up to 10% of a company’s yearly turnover for the period during which it has failed to comply with the relevant statutory provisions.

“Sectors of society, particularly trade unions, believe that imposing a
R1-million administrative fine on mining companies is essentially a slap on the wrist. Therefore, they have lobbied the DMR strongly to base the fine on a percentage of companies’ turnover.”

There are significant concerns that the amendments do not take into account the profitability of a company’s operation, which could result in a mining company having to close down if major fines are imposed, he notes.

“There will have to be a significant amount of maturity shown in determining the size of an administrative fine by the DMR, based on percentage, to ensure that mines do not close,” Beech emphasises.

A related issue is that the amendment proposes that the fine be based on the turnover of the employer, which the Act defines as the entity that holds the mining rights.

“Often, companies do not own only one mine and the practical question is whether the fine will be based on the turnover of the single mine or of the companies’ entire mining operations,” Beech states.

If the fine is based on the turnover of a company’s entire operation, this could be even more devastating for mining houses, he adds.

“This lack of clarity will require some form of intervention, potentially through guidelines drafted by a senior DMR official, such as the chief mine inspector,” Beech suggests.

However, he cautions that even such guidelines can potentially pose another challenge, as guidelines can often be rigidly imposed, which reduces the ability of an authority to use discretion.

Nonetheless, Beech also points out that several proposed amendments in the Bill are “quite positive”, such as those requiring the customisation of personal protective equipment (PPE) for women to ensure PPE is tailored to their requirements.

“I also think that the amendments that are aimed at improving the administration of the Act are also positive proposals, as they could ultimately improve mining operations.”

However, Beech strongly disagrees with the Bill’s aim of introducing stronger punitive measures for mining companies. “I believe that there are sufficient measures in place to ensure that mines comply with health and safety rules and regulations. Our industry health and safety laws compare favourably with most developed mining jurisdictions in the world, such as Australia and Canada.”