Coal Underground Optimum Coal Open cast and underground Uranium Underground and
Plant Mpumalanga North West Klerksdorp Shiva Uranium 2. Infrastructure and Operational Equipment Non Compliance Remedial Action Steelwork at the Gold plant was extremely corroded
The steelwork was dismantled and replaced. Section 54 instruction was issued Infrastructure TMMs Lamproom non compliant with Deficiencies were rectified and COP & OEM requirement section 55 instruction was issued 1. Not equipped with Proximity 1. Mine applied for exemption to Detection System (PDS)
regulation and was not granted due 2. TMMs were to significant risk. Section 54 and 55 not in good working order (not instructions were issued maintained, braking system not 2. TMM were repaired effective, lack of air-conditioners. 2. Infrastructure and Operational Equipment Lifting Equipment Non Compliance Remedial Action Two tower cranes at the plant were in Tower cranes were maintained and
poor condition because they were not load tested. Section 54 instruction maintained and load testing was not was issued. done. Pressure Vessels Section 54 instruction issued 1. Poor state of repair because no routine examination on and no maintenance done and pressure testing 3. Personal Protective Equipment (PPE)
Adequate Inadequate Inadequate Non-compliance and Remedial Action Inadequate stock and supply problem due mine not be able to pay suppliers (sizes of overall and 2 piece overalls for women, welding work ) Employees not issued with PPE for winter season. Section 55 instruction was issued to order compliance. 4. Blasting Equipment Condition
Non-compliance and Remedial Action No explosives delivered since 08 February 2018 Adequate Adequate No blasting and use continuous miners (CM) No blasting operations Not applicable and only processing stockpiles 4. Safety Performance Injuries for 2017 to 2018 Mine Injuries
Description Brakfontein 1 Slipped and fell while climding off ladder Koornfontein 4 Machinery accidents 16
General types of accidents: slip & fall, material handling, tools Optimum Opencast Optimum Underground Shiva 14 5 Total
40 General types of accidents: slip & fall, material handling, tools General type of accidents: slip & fall, welding, falling-in, struck by 5. Enforcement Instructions Instruction Section 54 Number Findings 22 Employees exiting the main gate not wearing safety belts; Corroded steel structures at the gold plant; tower craned not
load tested; unlicensed tower crane operators Section 55 Employees not trained on all mandatory COP; inadequate 19 illumination of working place Mineral Regulation Section Situation in Shiva Uranium Shiva Uranium/ Oakbay Resources has 3 mining rights adjacent to each other and its Social and Labour Plans has been integrated into one. Employees have not been paid salaries on time and as such they have been on strike
Contractors have not been paid and this affects the payment of contract workers The company has been placed under business rescue proceedings and the region received notification on the 01st of March 2018 The company / BRP still have to respond to s93 order and s 31L of NEMA order issued The company failed to adhere to material terms and conditions of the approved SLP The company failed to honour the rehabilitation plan commitment The employees have issues with the ESSOPs trust inherited from Glencore The rehabilitation funds are with the bank of Baroda According the department records we do not have records of any s11 application received from the company to another entity SOCIAL AND LABOUR PLAN COMPLIANCE:SHIVA URANIUM The SLP commitment was made on the 26th of October in 2010 when the SLP was approved. Second generation SLP was submitted in 2016 and was approved
The inspection was conducted on the 9th of June 2017 but there was no non-compliance issues were identified and a directive was issued. Another inspection was conducted on the 26th of January 2018 and non-compliance was identified and a s93 order issued, the company is still under 60 days period given to respond to the directive. SLP 2 has been submitted ,assessment and approval is pending. An audit / inspection whereby more non-compliance was identified was conducted 02 March 2018 and a section 93 notice was issued 08 March 2018
The company/BRP submitted a Section 93 action plan submitted 14 April 2018 The is in the process of engaging the company on the action plan submitted. FINANCIAL PROVISION FOR REHABILITATION:SHIVA URANIUM The financial provision in place is with the Bank of Baroda and the department received a notification from the bank on the 08th of February 2018 informing the department of its intention to leave the country and Nedbanks notification to withdraw the guarantees;
Upon receipt of this notifications, the department responded by giving the banks alternatives methods of securing the guarantees which is by cash deposit into the department bank account. The letters to the banks were sent on the 15th of February 2018 and the department still awaits compliance from the bank. The rehabilitation guarantees are however subject of a freezing order
granted in favour of OUTA on the 16th of September 2017. FINANCIAL PROVISION FOR REHABILITATION:SHIVA URANIUM The Financial Provision shortfall amount is still the same amount, R38 594 383.57. A compliance notice was sent to the company dated the 11th April 2018 to instruct the company to provide the shortfall amount. A feedback letter was received from the company on the 09th May 2018 indicating that the company is not in a position to provide such amount based on their current financial status (see feedback letter) Further engagements will still be done with the company/ BRP
Background Tegeta Explorations holds various rights in Mpumalanga Optimum Coal Mine, Brakfontein Mine, Koornfontein Mine and Idwala Crypts. The mines are under business rescue Optimum and Koornfontein were acquired from Glencore in 2016 On the 07/03/2018 PPC directed the department to conduct social and labour plan audits SLP inspections were conducted from the 12-15 March 2018 at Optimum, Koornfontein and Brakfontein Mines 15 1. Examples of generic causes of job losses
Elements of the Social and Labour Plan Human Resource Development The purpose being to address skills development within the mining industry The right holder must commit 5% of the annual payroll towards skills development Employment Equity The purpose thereof is to address the imbalances of the past at the workplace The charter has set the targets of 40% at all management levels. 16 Housing and Living Conditions The purpose thereof is to address the living in conditions of mineworkers through conversion of hostels into single unit and facilitation of
homeownership Mine Community Development The purpose of MCD is to ensure that the mining right holders contribute towards socio-economic development of the communities and labor sending areas 17 Procurement Procurement presents opportunities to expand economic growth. The mining charter set out the targets as follows: services 70%, consumables 50% and capital goods 40% Management of Downscaling and Retrenchments The purpose to ensure holders of mining rights provide
for mechanisms to save jobs and/or mechanisms to ameliorate the impact of job losses. 18 Financial Provision Mining right holders must make financial provision for SLP 19 Inspection at Optimum mine Social and Labour Plan inspection was conducted on 12/03/2018 at the mine Optimum Coal Mine had SLP approved for the period 2013-2017 Present were Mine Management, National Union of Mineworker, Steve Tshwete Municipality and the supplier of the mine.
20 Human Resource Development Total workforce at the mine is 2488 of 550 are permanent and 1933 are contract workers. The company has not provided for AET despite the target of 114 Companys employees and were never trained since the company took over from Glencore Learnerships (18.1 internal and 18.2 external) were also not implemented There is a backlog of 399 on core business training. 21 - A training budget of R11 million was approved for 2017/18, but same was
diverted at the instance of Chief Executive Officer - Workers operating machines with authorization due to lack of training - Career progression, and mentorships and portable skills training were not implemented. - The company could not report on the provision of bursaries - No explanation was provided for reduction of HRD budget from R64 032 000.00 to R1 257 000.00 22 Employment Equity Employment equity targets have been met. However, there is no women representation at Senior Management level. Mine Community Development The community Health Care Centre in KwaZamokuhle inspected on the
15/03/2018 The Health Care Centre is 99.9% complete when Tegeta took over from Glencore. The service provider was not paid hence the facility cannot be handed over to the Community/Department of Health. 23 There is a court order directing BRP to pay service provider. The invoice remain unpaid and Tegeta in contempt. Tegeta has not continued with the implementation of the project. The Community Health Care Centre was constructed on the community sport field. Tegeta has not honored the commitment as no alternative land identified. During the site visit, the department also visited the temporary clinic.
The facility is not cot conducive and too small Those with communicable diseases (TB) infect other as they wait for health services 24 Department is currently engaging other stakeholders (Glencore, Provincial Government, Service provider and BRP to resolve the matter) Housing and Living Conditions The company has failed to facilitate home ownership for the employees The company could not account for the employees current dwellings Instead, the company provide transport for workers to and from work and living out allowance 25
Management of Downscaling Future forum has been established but not functional The future of the mine and its profitability are not discussed at the meetings Organised labour were not informed about the Business, Rescue and possible sale of the mine. ESOP and Community Shareholding is not discussed at FF meetings. 26 Procurement This aspect was not inspected due to insufficient information from the mine Suppliers were concerned that they provide service to the compny remained unpaid Company continue to rail coal and money not coming back to the company
A follow-up inspection was scheduled for the 30 May 2018 27 Summary of the findings by the Department The companys SLP expired in 2017 and the Department has not received revised SLP for 2018-2022 Tegeta has not implemented only of the elements of SLP inspected since it took over from Glencore. 28 Inspection at Koornfontein Mine Social and Labour Plan inspection was conducted on the 13/03/2018 at the Mine
The approved SLP expired in October 2016 Present at the inspection was the Mine Management National Union of Mineworkers, representative of Steve Tshwete Municipality and the suppliers of the Mine 29 Human Resource Development Total workforce at the mine is 763 The company has not implemented AET, Learnerships (18.1 and 18.2) and care business training. No career progression and mentorships were implemented Bursaries and internships were not offered Contract workers were not provided for training
30 Employment Equity The company has met the EE targets. However, the Senior Management is still male and white dominated No female representation The Department has still not received EEA report from the company The company has failed to implement mine community development projects
Phase 3 of the renovation of Blinkpan school was not implemented 31 Housing and Living Conditions The company has not promoted home ownership at the mine There is no improvement of living conditions of mineworkers. Procurement The information provided could not be used to determine level of compliance Follow-up inspection was scheduled for 31 May 2018 for this element and ownership 32 Management and Downscaling
Future forum established but not functional Paste the 1 from Optimum Summary of the findings The company is operating without approved SLP HRD targets reduced to zero (0) Section 102 application not approved by the department 33 Inspection at Brakfontein Colliery The total workforce at the mine is 341 (163 Permanent and 178 contract) Inspection took place on 14 March 2018 at the mine and 15 March 2018 at the DMR office in Witbank. The SLP was approved for the period 2015-2019 Only Management were in attendance on both days
Meeting postponed as the company was not prepared 34 Human Resource development The company has failed to implement HRD commitments Employment equity The company is not transformed No female incumbents at senior management level Mine community development The company has not implemented LED project (eradication of bucket system in Delmas) This led to Victor Khanye Local municipality implementing the project The company remains non-compliant
35 Procurement This aspect could not be inspected due to insufficient information provide Follow up inspections is scheduled for the 1st June2018 Housing and living conditions The company has failed to promote home ownership No information on the employees dwelling status The company offers employee R300.00 per month as a living out allowance 36 Management of downscaling The company does not have a functional future forum During the inspection organised labour was not part of the meeting
Summary of the Findings There is total disregard of Social and Labour Plan by the company 37 Idwala Crypts The inspection was not conducted as the company is now under care and maintenance. 38 Lily Mine Progress Report Families paid R200 000 each
Workers paid R10000 each (Balance R40 000 to paid by new owner) The Inquiry report has been completed Business rescue practioner secured funding from SCC Group and IDC Section 11 application and regulatory approvals
Mine to commence operation in November 2018 Jobs will be saved at Lily and Barbrook mines (at least 600 jobs) Mine to develop a new decline of about 300metres and new ventilation shaft Recovery of three missing mine workers to be done concurrently with mining operation Business Rescue Process
The Business Rescue Process takes long to secure funding (Lily mine 2 years) Some mines have been under Business Rescue for more than 2 years Thank You Siyabulela Nakhensa Ngiyabonga!
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