Softening in Section 54 onslaught

[miningmx.com] — GOVERNMENT’S mine safety crackdown, which saw
Anglo American Platinum lose about 100,000 oz of production as a consequence of so-
called “non-localised’ safety stoppages, appears to have been softened since a task-
team comprising government, unions and industry met last month.

According to David Msiza, Chief Inspector of Mines, the Department of Mineral
Resources (DMR) returned to the regions to review the consistency with which Section
54 notices were issued.

A Section 54 issuance refers to a clause in the amended Mine Health and Safety Act
that allows the DMR to halt mining operations at an entire operating section if need
be.

Industry has complained that since the opening of a new office in Rustenburg, Section
54 issuances have in some cases been for frivolous reasons such as cracked tiles in
changing rooms.

The country’s platinum mines, in particular, said the overzealous application of safety
legislation was harming profitability and making future mining more unsafe, as shaft
maintenance doesn’t respond well to stop-start activity.

“We’ve reviewed the enforcement guidelines,’ said Msiza. “There needs to be
consistent enforcement by the respective regions,’ he added.

Although the review generated by the task team still has to be published, it’s thought
that future Section 54 issuances will be guided by whether the offence is likely to
lead to a fatality – thus excluding faulty bathroom taps, or a roof support with minor
cracks.

Repeat offences will also incur Section 54s. “If there’s something that has been
identified in the past 12 months, that’s something we’ll look at. We’re trying to do
away with repeats,’ said Msiza.

He believes the DMR’s tough stance has, however, already paid dividends.
“Last month we only had three fatalities, which is the lowest ever in history,’ said
Msiza.

Said Bheki Sibiya, CEO of the Chamber of Mines of South Africa: “For us to believe
that Section 54s are legitimate there needs to be fair, clear and defensible
implementation.’

He added, however, that there had been a convergence of minds between Government
and industry, although he added: “If we can’t mine safely, we’re guilty of blood
profit.’

Even Northam Platinum appears to have backed off. A company spokesperson said the
company was not progressing with legal action against the DMR. “Following the
granting of the initial interdict, the legal process was terminated and the parties
agreed on the more collaborative engagement process,’ she said.

In March, Northam successfully suspended a safety stoppage at its Zondereinde mine
after applying to the Labour Court. The court ruled, provisionally, in Northam’s favour
and gave the DMR until 27 March to respond.

Msiza confirmed the DMR had mounted a challenge to the application, but that the
sides were now looking forward to engagement rather than conflict.

The issue is still sensitive, however.

Glyn Lewis, CEO of Northam, declined to comment. “We still haven’t met with the
department,’ he said. “Beyond that I’d prefer not to say anything about it.’

Speaking at the opening of the Coaltrans conference in Johannesburg two weeks ago,
Sibiya provided an interesting perspective on the importance of safety, as well as
labour and safety programmes as captured in the mining charter.

“If there’s one instrument that we can use against nationalisation, it is the mining
charter,’ he said.

According to Sibiya, the threat of the nationalisation of mines is not completely
removed. “The democracy of the ANC is such that the policy can be raised from the
floor,’ he said of the ruling party’s upcoming policymaking conference in June.

By showing the mining charter works, that industry has a progressive path, the need
for nationalisation lessens.

– Finweek