Safety, health and employee wellbeing

Safety

Approach and structure

Ensuring the safety and health of employees is a primary strategic imperative for Northam and a key performance area for all levels of management and supervisors which takes precedence over production objectives.

Extensive legislation and regulation guide safety and health practices and processes in the workplace, the most significant being the Mine Health and Safety Act. A safety and health policy is in place at Zondereinde and recognition agreements with organised labour provide the context for its implementation.

At board level, the health, safety and environmental (HSE) committee is responsible for overseeing the various health and safety laws and regulations that affect the group.

The general managers hold ultimate responsibility for safety and health at both Zondereinde and Booysendal. At Zondereinde day-to-day management of safety is delegated to operational management, who are in turn supported by minebased safety and health departments.

Joint approach

Northam encourages the participation of employees and management at all levels to participate in safety and health matters. As required by the Act, a joint management/employee representative health and safety committee meets on a monthly basis, or more frequently when required. The committee is responsible for:

• identifying critical issues that hamper safety and health performance;
• providing personal protective equipment;
• participating in inspections, audits and accident investigation; and
• indentifying areas for training and education.

A particular role of the committee is to empower employees to take responsibility for safety and health, to identify potentially hazardous situations and to encourage employees to exercise their right to refuse to work when conditions are not safe.

Around 83% of the company's workforce is affiliated to a representative union and, through the union structures, employees participate in planning for and management of safety and health issues through their elected health and safety committees. Further, employees and management are encouraged to participate in safety matters at all levels.

While employees of Northam at Booysendal are currently not affiliated to a union, a safety, health and environment (SHE) committee, consisting of contractor representatives guides and monitors SHE performance. All employees, including those employed by contractors, receive safety standards and safety induction training.

Performance F2012

It is with deep regret that the company reports the death of two employees in mining-related accidents at Zondereinde mine in F2012 (F2011: 5).

• Mr Sydney Tlou Komape (32) who died on 20 July 2011 in an underground locomotiverelated accident. Mr Komape was from Polokwane and is survived by his wife and child; and
• Mr Alfred Nkosivumile Hanisi (28) who died on 22 May 2012 in a fall of ground accident. Mr Hanisi was from the Eastern Cape and is survived by his wife and two children.

Zondereinde mine's fatal injury incidence rate (FIIR) was 0.02 per 200 000 hours worked (F2011: 0.06). The lost time injury incidence rate (LTIIR) was 1.91 per 200 000 hours worked (F2011: 1.34) and the reportable injury incidence rate (RIIR) was 0.88 per 200 000 hours worked (F2011: 0.74).

There has also been an initiative to improve skills and competency levels among supervisory staff.

The majority of the accidents this year have been related to material and equipment handling, followed by falls of ground. These have occurred predominantly on the reef or stope horizon. Remediation measures comprise retraining in support standards and in other regular procedural measures.

Although punitive measures are in place, this does little to cultivate a safety culture. The key to improved performance is achieving a balance between discipline and instilling a will to work to standard.

The higher trending safety indicators continue to reflect an increase in the severity of injuries, with the primary causes of lost time injuries occurring as a result of materials handling incidents (29%), fall of grounds (22%) slip and fall (12%). These statistics indicate that at-risk behaviour remains very high. In F2012, 5 910 shifts were lost due to occupational injury (F2011: 4 234).

In total, 12 Section 54 instructions were issued by the DMR to close certain mining areas so that investigations could be carried out into the cause of each accident or safety infringement and to establish remedial actions to prevent similar incidents in future. On each occasion, management presented the findings of the investigations and remedial actions to the DMR. In total, 28 production days were lost across the mine as a result of DMR-imposed safety stoppages, resulting in the loss of approximately 28 000 ounces. In addition, Zondereinde mine instigated 345 internal safety stoppages. Employees are actively encouraged to exercise their right to refuse to work if conditions are not safe.

Safety remains a key focus area and management works closely with employees and unions to reduce mine-related accidents and injuries. Zondereinde achieved one million fatality free shifts on 12 December 2011.

Zondereinde continued to implement the ‘Stop and Fix’ programme during the year with regular inspections of working areas having been carried out by team leaders and management. If irregularities were identified during these inspections, employees were instructed to stop mining activities and fix the problem before continuing work. In all instances, employees were required to investigate the cause of the incident and present remedial action plans to rectify the situation, to the safety committee.

No fatalities occurred at Booysendal during the year. The LTIIR was 0.19 per 200 000 hours worked and the RIIR was 0.00 per 200 000 hours worked. No shifts were lost as a result of DMR-imposed safety stoppages.

Health

Approach and structure

At Zondereinde, Northam offers an integrated and comprehensive health care service to all employees through the medical service provider, Platinum Health, which operates facilities on site at the mine and in the nearby employee village. All services are offered free of charge to all employees who contribute to the Platinum Health Scheme. Occupational health and medical emergency facilities are available to all employees and contractors.

In addition to medical services offered, Zondereinde has a comprehensive TB and HIV/ AIDS management programme in place, which is also administered by Platinum Health. A minebased HIV co-ordinator is responsible for the information and awareness aspects of the TB and HIV/AIDS programme.

Health care services at Booysendal are also offered to Northam employees, contractors and their dependants through the Platinum Health subsidised scheme. Facilities are located in Mashishing and at the Lion medical station near Steelpoort.

Employee well-being performance F2012

Zondereinde's integrated and ongoing medical surveillance programme is well-established. In addition to general health screening and as a preventative measure, the programme identifies and monitors the incidence of noise-induced hearing loss (NIHL), pulmonary tuberculosis (TB) and occupational lung disease (OLD).

During the year, 10 740 (1 407 entry, 1 073 exit and 8 260 annual) medical surveillance examinations were performed at Zondereinde and 6 156 (4 160 entry, 1 496 exit and 500 annual) at Booysendal.

The use of hydropower for underground mining activities, particularly for powering rockdrills, significantly reduces the level to which Zondereinde employees are exposed to noise and also helps reduce dust generation. The rock mass at Zondereinde does not contain quartz, thereby eliminating the threat of silicosis.

Noise levels associated with underground equipment is contained below 110dBA. In addition, all employees are issued with personal protective equipment (PPE) to ensure that any exposure to noise levels above 85dBA over an extended period of time is limited. In F2012, 44 new cases of NIHL were identified (F2011:18) and 23 cases were found to be compensable. The significant increase in new cases of NIHL is due to late submission following the roll-out of new legislation.

TB presents a significant health care burden in South Africa. Northam runs a highly-effective Directly Observed Treatment (DOT) regime for the treatment of TB at Zondereinde. This regime is also aligned to the World Health Organization (WHO) guidelines. The symbiotic relationship between TB and HIV exacerbates the incidence of both illnesses. At year end, 644 employees received treatment for TB and 85 new cases were detected (F2011: 93) with 183 people having participated in the company's wellness programme.

Owing to the high virgin rock temperature (VRT) at Zondereinde (ranging between 51.4°C and 69.8°C), all employees are required to undergo heat tolerance testing on an annual basis.

Northam's HIV/AIDS policy provides for the care of employees, education programmes, confidentiality of information and non-discrimination. All employees have access to voluntary counselling and testing (VCT) programmes and anti-retroviral therapy (ART), as well as professional counselling and support. The Northam HIV/AIDS programme is focused on the following priorities:

• persuading employees who are HIV negative not to participate in high-risk behaviour, through education and awareness programmes, mass distribution of condoms, treatment of sexually transmitted infections (STIs) and a peer education programme;
• early detection and identification of HIV to limit high-risk behaviour amongst those infected and to start them on a treatment regimen that can prolong their healthy lives. The VCT programme underpins this objective and provides the necessary counselling; and
• persuading infected employees to participate in the wellness programme, that includes the provision of ART. Comprehensive counselling is in place to ensure that employees understand and accept the long-term implications of moving onto the ART programme.

At year end, 1 659 employees had undergone VCT and 743 people were receiving ART.