Shabangu hangs tough on mine safety

Brendan Ryan | Tue, 07 Feb 2012 11:23

[miningmx.com] -- MINISTER of Mineral Resources Susan Shabangu has taken a tough line with the country’s platinum producers concerning the implementation of Section 54 safety stoppages at their mines.

All the major South African platinum groups have reported increased production losses in the three and six months to end-December because of a sharp rise in Section 54 stoppages.

The most outspoken executive has been Aquarius Platinum CEO Stuart Murray.

He commented in the group’s December quarterly report that production from the Kroondal and Marikana mines “remained below capacity due to the widespread – and sometimes unjustified – application of Section 54 stoppages”.

Murray said, “This issue is making the South African mining industry a difficult place in which to operate and, whilst zero harm is laudable, there must be practical implementation of the law.

“Not only has the incidence of these stoppages risen markedly, in many cases the time now taken by the regional department to resolve these stoppages has risen from some two days to a week and sometimes more.”

Shabangu told the Mining Indaba: “We remain gravely concerned about the continued loss of lives at the mines. Already this year there have been 13 fatalities in the mining sector.”

“The recent spate of fatalities is also a reflection of some CEOs’ refusal to make meaningful changes and take personal responsibility for health and safety issues.

“Some of them value profits more than the lives of people. The department has been greatly concerned about the lack of improvement in compliance and fatalities in the major platinum mines.

“The platinum sector alone contributes about 30% of all fatalities, which remains a serious concern. It is therefore to be expected that the Department will monitor these mines through intensified inspections and group audits.”

Shabangu noted the industry’s concerns about the implementation of Section 54 stoppages, and said that a task team had been established to investigate these.

“It has to be emphasised that it is not the mandate of this task team – to review the principle of implementing Section 54 – but rather to afford industry an opportunity to raise their concerns with regard to the application of the provisions of the law,” she said.

Replying to questions at a press conference after her presentation, Shabangu would not be pinned down on recent media reports concerning a possible rent resource tax and other changes to the mining taxation regime.

“These are issues we are looking at and engaging on with Treasury,” she said.

“We have to ensure that we do not undermine the international competitiveness of the country’s mining sector. We need to come up with a dispensation for South Africa that will continue to attract investment and will allow growth.

“When we are ready we will tell you what form of dispensation is suitable for South Africa.”

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