“We completed a third-party review of our baseline risk assessment, and have taken appropriate steps to address the key findings from this review

Driving a safety culture

It is with deep regret that I report the loss of life of five of our employees and two contractor employees. All sustained injuries while working for the Company; six of the fatal incidents occurred at Impala Rustenburg and one was at Marula. We extend our sincere condolences to the families and friends of Mojalefa Makhobeng, Otlabusa Itumeleng, Martin Briedenhann, Jonathan Mabelane, Joseph Sithole, Kgosithebe Richard Orekeng and Mantsonyane Malimole. Five of these fatalities occurred in the first quarter, very shortly after the return to work following the five-month strike.

This regrettable increase in fatalities – up from four last year – comes despite the valuable improvements in safety that we have made across many of our leading and lagging indicators for the year. While I am encouraged by some of the significant improvements in our safety performance this year, this loss of life remains unacceptable. I am determined to see a further step change in our safety performance, and am fully committed to achieving our goal of zero fatalities.

To deliver on this goal, our safety strategy is built on changing the culture of the organisation, improving supervision, and adopting and implementing various technical initiatives to improve workplace safety. In driving this strategy, there have been several positive activities that we have implemented this year:

• We have continued to place a strong focus on training: 139 stoping teams participated in a five-day team-mobilisation training programme with a focus on embedding the right safety and associated productivity culture, and more than 4 000 employees and safety representatives have undertaken a 10-day Mine Qualification Authority (MQA) occupational health and safety skills programme. In addition, all Implats executives, E and D level production managers have attended the three-day zero incident process for leaders training programme. This provides managers with insight into the human behavioural aspects of safety, and on how to influence this to achieve improved safety performance.
• We completed a third-party review of our baseline risk assessment, and have taken appropriate steps to address the key findings from this review. This includes implementing an online hazard identification and rectification system across the Group, providing ready access to the required controls and procedures associated with the 14 identified major hazards across our operations.
• We invested a further R221 million in an array of technical safety initiatives at the Rustenburg operations. These include: equipping all underground trackless mobile machinery at all operations with personnel detective systems; installing new shaft safety devices and interlocking winder facilities in Rustenburg; replacing all high-risk conveyor belts with fire retardant belts and implementing a policy that the Group will only install fire retardant belts; introducing a SafeBlast^® system across most of our operations; and installing electronic winch signalling devices and an improved fire detection system.

We have made some significant achievements this year across many of our operations. Notably between October 2014 and April 2015 the Group achieved a record of 6.9 million fatality free shifts. Impala Services and Impala Springs each achieved 10 million fatality free shifts and Impala Rustenburg’s 12 and 7A shafts as well as Mimosa each achieving five million fatality free shifts. Zimplats also achieved 3 million fatality free shifts. The total injury frequency rate – a measure of all recorded injuries, including fatalities, lost-time injuries, restricted work cases and medical treatment cases (including first aid cases) – was 9.78, down from 11.90 in 2014. The serious injury frequency rate improved to 2.63 per million man-hours, down from 2.68 in 2014. These improvements in safety performance have been underpinned by the effective implementation of the safety recognition agreement with AMCU at Impala Rustenburg and Marula, which lays out the agreed responsibilities for management and union representatives on safety issues.

On 8 July 2014, a major ground collapse occurred at Zimplats Bimha Mine. The collapse was attributed to a weak geological structure, the Mutambara shear, which caused pillar failure and the subsequent partial collapse. Employees were evacuated timeously and there were no injuries. However, because of the potential of stress propagation and the possibility of further ground collapse, and the safety of our employees could not be guaranteed, a precautionary decision was made to stop all mining in the existing workings at Bimha and to withdraw all employees. These employees were redeployed to other areas at Zimplats and an extensive geological monitoring and risk mitigation programme was put in place. Redevelopment of Bimha Mine was then restarted through two new access ways, 30 metres north of the existing workings, leaving an indestructible pillar between the new drives and the risk areas. The monitoring programme has shown that ground conditions have stabilised and further redevelopment can now take place along 5 North roadway which will improve the Bimha redevelopment plan.

A continuing challenge that we have faced this year has been the number of ‘Section 54’ stop instructions issued by the Department of Mineral Resources (DMR). This year, 55 such instructions were issued, resulting in the loss of approximately 260 shaft days of production at Impala Rustenburg, and 42 shaft days at Marula. The estimated loss of production between Impala Rustenburg and Marula was 63 000 4PGE ounces and amounted to a loss of revenue of R833 million. While we fully support all work stops where this is necessary to manage a direct danger to safety, extending these stops beyond the scope of the risk is problematic and in certain instances may have a negative impact on safety performance. In February this year, I joined with other platinum group CEOs to meet with the Minister of Mineral Resources to highlight the negative impact that unjustified work stops were having on productivity and profitability.

In November 2014, at the tripartite Mine Health and Safety Council, we agreed a new set of sector-wide health and safety milestones. These include commitments to: eliminate fatalities by December 2020; achieve an annual 20% reduction in lost-time injuries; eliminate silicosis, pneumoconiosis and noise-induced hearing loss; reduce the TB incidence rate in mines to or below the national TB incident rate by December 2024; meet clear targets on implementation of the approved culture transformation framework; and launch a centre of excellence to transfer knowledge and technology of quick win projects. We are committed to delivering on these targets through our continuing focus on embedding an effective culture in the organisation, supported by our investment in the physical environment.

Promoting health and well-being

We have continued to make progress this year in delivering on our health strategy, and managing the principal health risks facing employees, namely: pulmonary tuberculosis (TB), the associated human immunodeficiency virus (HIV) co-infection, and the occupational health risk of noise-induced hearing loss (NIHL). On occupational health issues, we strive to ensure that all occupational health risks are identified, mitigation controls are in place and any ill health is detected and treated early and efficiently. Our strategy on non-occupational health risks focuses on ensuring that all employees have access to affordable healthcare so that health stressors can be identified, managed and treated.

There was a significant increase this year in occupational medical examinations undertaken, mainly due to the reopening of the Rustenburg Occupational Health Centre following the end of last year’s strike. No previously unknown occupational illnesses were detected over the year. This year, 49 cases of NIHL were diagnosed and submitted for assessment for compensation. All patients who are diagnosed with early signs of NIHL on screening audiograms have been counselled and are being monitored. Another potential occupational illness in the South African mining sector is silicosis. Fortunately the risk of contracting silicosis on our operations is extremely low due to the very low levels of Alpha Quartz in the rock mined at our operations. This year, 19 employees and two contractors were diagnosed at our Rustenburg operation, all of whom have proven historical gold mine exposure.

We are already meeting the sector-wide health milestone at reducing TB incidence rate on mines to below the national TB incident rate by December 2024; our incidence rate of 755 per 100 000 employees is below the national rate of 940/100 000. Although we have increased the speed and accuracy of diagnosing TB resistance through PCR laboratory testing, the growth in multiple drug-resistant TB continues to be a concern. Our HIV prevalence rate is estimated at 23% based on available data for the Impala Rustenburg operation. This year, a total of 6 140 employees participated in company-funded and managed HIV-wellness programmes, of whom 4 429 received antiretroviral therapy.

We have continued to work closely with the South African Department of Health and other partners in support of the national health insurance plan, including through investments in healthcare facilities around our lease areas.