Minerals Council South Africa on response of Mining Industry to COVID-19 and related matters

NCOP Land Reform, Environment, Mineral Resources and Energy

20 October 2020
Chairperson: Ms T Modise (ANC; North West)
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Meeting Summary

Video: SC on Land Reform, Environment, Mineral Resources and Energy, (NCOP) 20 Oct 2020

In a virtual meeting, the Committee was briefed by the Minerals Council South Africa on the mining industry’s response to the Covid-19 pandemic. The Committee was told that the industry’s response spanned various spheres including prevention, risk assessment of workplaces and vulnerable employees, case management, including screening, testing, isolation, and quarantine and reporting, and coordination on a regional basis between mining companies and the public health system. Members heard that even though it was difficult, the Council worked with all the municipalities.

The Committee was also told that the COVID-19 pandemic has presented negative economic consequences for all economies and sectors globally. For the mining sector in particular, the impact was particularly profound because demand for commodities has been affected by a lack of economic activity in countries where South African commodities are sold.

Members were disappointed to hear that fraud and corruption has bedevilled the Covid-19 funds and what was disturbing was that a lot of money was poured into the Northern Cape. There was uncertainty as to where this money was coming from but it was disheartening to see Somalian shops selling donated food parcels in exchange for cash.’ Who directed that municipalities be involved in the distribution of the food parcels knowing that that will open the way for politicians to take over’? ‘Why was the Department of Social Development not involved?’

On job losses, Committee Members were told that from 2020 (January to June), the sector has shed 2 260 jobs. This period coincides with the start of the virus and the subsequent economic lockdown. There are Section189 processes still underway and therefore not included in the numbers presented to the Committee today and more job losses were expected. Given the Section 189 applications received the Committee needed updated reports from which mines as it would have an impact on the number of job losses in the mining sector. Also on the provision, purchase and expenditure of PPE, the Committee would want a comprehensive list.

The Department said it has been working with the Mineral Council since the onset of the pandemic and a good working relationship has been established between the two parties with the Department receiving regular updates from them too. They worked closely together through their principal inspectors in the different regions and a good collaborative effort has been established. 

Members were pleased to hear that the mining industry has established community interventions such as delivering R101millions worth of supplies to local hospitals, the donation of medical equipment and supplies by Assmang, Kathu Solar Park, Kudumane, Kumba, SIOC-cdt, and South32 in Kuruman amongst others. The Committee was informed that given the high level of preparedness of the mining sector, the industry was doing more screening and testing than any other of the other sectors.

Members asked whether the mining industry has collaborated amongst themselves and other stakeholders regarding the provision of the oxygen relief in the Eastern Cape; and how many quarantine facilities and isolation beds were made available to be used for the treatment and quarantine or isolation of Covid-19 patients especially the mining employees. On the study commissioned by UNISA; the Committee asked if it had achieved the intended objective regarding the improvements which are required in the mining industry.  Committee Members wanted to be provided with an updated status of that study.

Meeting report

The Chairperson welcomed all to the meeting and stated that the agenda of the meeting is a briefing from the Minerals Council South Africa on the mineral industry’s response to the COVID-19 pandemic. The council will in their presentation explain to the Committee what actions they took and are still taking in the course of this pandemic. The agenda for the meeting was adopted. The Chairperson had difficulty connecting to the internet so Ms W Ngwenya (ANC, Gauteng) was asked to chair the remainder of the meeting.

Opening Remarks from the DG

Mr Thabo Mokoena, Director-General, Department of Mineral Resources and Energy, thanked the Members for the invitation and indicated that the Department has been working with the Mineral Council since the onset of the pandemic. There has been a good working relationship established between the two and the Department regularly receives updates from them too. They work closely through their Principal Inspectors in the different regions and a good collaborative effort has been established. 

Briefing on the Mining Industry Response to COVID-19 by the Minerals Council South Africa

Dr Thuthula Balfour, Health Advisor: Chamber of Mines, while speaking on the health response said that the key elements of the health intervention were:

Prevention; Risk assessment of workplaces and vulnerable employees; Management of cases including screening testing, isolation, quarantine and reporting and collaboration on a regional basis among companies and with the public health system.

Dr Balfour raised the issue of Khumbel’ekhaya, a CEO-led initiative to reduce mortality in the industry under CEO Zero Harm Forum

Additional funding was allocated for:

  • Behavioural training
  • Disease mapping and
  • Research
  •  

Given the high level of preparedness of the mining sector, the industry is doing more screening and testing than any other of the other sectors. If other sectors of the economy were doing the same level of screening and testing, they would also be detecting the real case numbers in society sooner.

  • More COVID-19 infections diagnosed in mining as a proportion of the workforce than positive diagnoses as proportion of population as a whole - mistaken to assume that mining is more prone to spread of virus than population as a whole Clusters have contributed to high incidences in particular areas;
  • Mining companies conscious of risk of employees returning to work from different locations can potentially transport the virus - industry committed to strict routines for employees returning from other countries or regional “hotspots”; and
  • Industry COVID-19 death rate of miners far lower than for similar age groups in country as a whole - industry taken very cautious approach to taking extra measures for individuals who may be at greater risk.

Mr Aubrey Ramawa, Senior Policy Analyst, Mineral Council South Africa, on labour interventions, indicated that the COVID-19 pandemic has presented negative economic consequences for all economies and sectors globally. For the mining sector, the impact was particularly profound because: 

  • Demand for commodities has been affected by a lack of economic activity in countries where South African commodities are sold;
  • The ability to supply commodities was affected by economic restrictions adopted to contain the spread of the virus;
  • The health crisis of dealing with the actual virus and its impact on lives;
  • Context should also be stressed that the COVID-19 pandemic occurs at a time when the mining sector was already dealing with a host of other unfortunate circumstances {unavailability and price path of electricity, poor and costly infrastructure (ports, rail, and water), exchange rate volatility}. All these factors have unfortunately affected the competitiveness of the South African mining sector and in turn the sector has seen a sharp decline in job losses; and
  • Between 2012 and 2019 the sector has shed 65 000 jobs.    

The socio-economic implications of these job losses are immense when it is considered that 1 mining job supports 7 – 10 dependants.

Jobs losses (or gains) are generally a lagging indicator of events, meaning that the final outcome of how the sector will adjust to the COVID-19 pandemic and its impact is still to be manifested. At this stage the numbers are being progressively monitored and studied. In 2020 (January to June), the sector has shed 2260 jobs. This period coincides with the start of the virus and the subsequent economic lockdown. There are Section189 processes still underway and therefore not included in the numbers presented below.

From analysing the retrenchment statistics, it is evident that the lower job categories have been most affected. These are the jobs most vulnerable to adverse economic developments. Cat 4-8 employees; represent 60% of total retrenchments, while Officials represent 23%.

Mr Nikisi Lefusi, Senior Executive: Environment, Health and Legacies, Minerals Council SA, while speaking on the return of mineworkers, said foreign national mineworkers have played an important role in the mining industry for decades and employment in SA is a critical component of the GDPs of these countries - number of foreign national employees estimated around 10% of the national mining workforce. Some employees remained in South Africa during the lockdown period.

Out of more than 20 000 employees located outside of the country around 9 500 are currently scheduled for return to work. Return of foreign employees will take place under strict agreed upon conditions. The Minerals Council will have responsibility for facilitating  the coordination of screening, testing, border logistics, transportation, and quarantining of all returning foreign mine workers for 14 days. Initial quarantine facilities will be located near mines. Employees will need to be kept isolated during the trip from the border post to quarantine facilities. The Minerals Council commissioned the TEBA to manage the logistics of returning workers. The TEBA will carry out screening of individuals in country of origin, transport and, where necessary, overnight accommodation. Screening and testing of employees in quarantine will be carried out according to NICD guidelines. Returning foreign employees will be advised that they will not be able to return to their home countries for the duration of the pandemic to avoid dangers presented by continual cross-border travel. Those who fail testing will be diverted to the local district health system. Mining companies will have the duty of care, including through facilitating testing and providing medication and care.

Mr Alex Khumalo, Head: Social Performance; Mining Industry Support of Communities, Minerals Council SA, while speaking on the mining industry’s support to communities, stated that in addition to fulfilling Social and Labour Plan commitments, mining companies have supported communities in the fight against the COVID-19 pandemic through CSI funds in the following way:

  • Provision of equipment and consumables for testing facilities (including PCR machines);
  • Provision and/or purchasing of PPE and critical medical equipment for health and social development personnel in the field and in hospitals and clinics;
  • Purchase of water tanks for public facilities and communities;
  • Provision of food parcels to vulnerable families in host communities;
  • Contribution to Solidarity Fund and non-governmental organisations (NGOs);
  • Increase awareness through radio, print and social media;
  • Provision of tracers in priority municipalities;
  • Access to mine ambulances and paramedics;
  • Provision of access to tap stations, underutilised water tanks, mine water and tankers to refill water at various locations;
  • Provision of facilities for self-isolation by mine workers and other community members who tested positive;
  • Access to broadband digital connectivity and e-learning platforms (including tablets for learners and educators); and
  • Access to psychosocial services in host communities.

The mine industry also had community interventions such as delivering R101 million worth of supplies to local hospitals, the donation of medical equipment and supplies by Assmang, Kathu Solar Park, Kudumane, Kumba, SIOC-cdt, and South32 in Kuruman.

Discussion

Ms L Bebee (ANC, KZN) asked whether the mining industry has collaborated amongst themselves and with other stakeholders regarding the provision of the oxygen relief in the Eastern Cape. If yes, can the committee get a report outlining the extent of the contribution by the Minerals Council South Africa? ‘How many quarantine facilities and isolation beds were made available to be used for the treatment and quarantine or isolation of Covid-19 patients especially the mining employees’?

Ms M Mokause (EFF, Northern Cape) said that the commissioning of the TEBA institution was supposed to take care of mine workers. ‘Irrespective of the challenges faced by the TEBA, did it yield positive results’? ‘Can the results be made known to this Committee’? ‘What were the problems encountered and interventions put in place’? Looking at the TEBA as an institution and its background, it raises eyebrows if it could actually be properly managed. ‘The council spoke about intervention relief with regard to water tanks, food parcels and other equipment to provinces and villages; ‘which provinces are those’? ‘Who facilitated the procurement of the water tanks’? ‘Was this council responsible or did it partner with other spheres of government’?

Mr A Arnolds (EFF, Western Cape) thanked the Minerals Council for the presentation but reiterated that the health and safety of mineworkers is non-negotiable. The Committee needs more information emanating from the presentation. Firstly, from the Section 189 applications received the Committee needs updated reports from which mines as it will impact on the number of job losses in the mining sector. Secondly, on the provision and purchase and expenditure of PPEs, the Committee would want a comprehensive list. The presentation showed that between 2012 and 2019, the mining sector shed 65 000 jobs. Looking at current job losses from January to June this year, 2 260 jobs were lost and counting. This means that within a nine year period we have lost more than 9 000 jobs in this sector alone. This calls for more interventions to save mining jobs in SA.

Acting Chairperson Ngwenya wanted to know whether the Minerals Council has commissioned UNISA to conduct a study to determine the effectiveness of all the control measures currently in place across the mining industry. ‘If yes, will this study achieve the intended objective regarding the improvements which are required in the mining industry’? ‘Could the Committee be provided with the status report regarding the study’? On the awareness and health training which were conducted to educate employees of mining companies with regard to guidelines to manage Covid-19; ‘were these health training programmes conducted in languages which are predominantly understood by employees’? If yes what positive impact have they made? Was the attendance of such training mandatory for employees? If not, why not?

Responses

Mr Tebello Chabane, Senior Executive: Public Affairs and Transformation, Minerals Council SA, thanked the Members for the questions. On the question regarding PPEs, the procurement of most of the equipment was done by the mines themselves and there were no central procurement processes. The Council alerted member companies in March that there is a shortage of equipment and they should shore up their supplies.  On training; it was a challenge for the mining companies to produce training materials but the mining council ensured that companies that had produced good training materials shared them with others so that the wheel was not reinvented all the time. Incidentally some of those materials were used by international organisations because they are displayed on our websites as we speak.

Dr Balfour said with regard to whether the mining industry collaborated in the oxygen relief efforts in the Eastern Cape, most of the collaboration and communication was with the Premier’s Office and the Provincial Department of Health. They determined what kind of support they needed. The Department wanted to support in the oxygen value chain and they were able to tell us what they needed as they were able to tell the Council what they needed. What are lacking are oxygen regulators, flow meters and oxy meters. These were the things that the Council purchased. The companies that offered to provide funding to the total of R4.7million and shared their contributions equally. On the quarantine facilities; at the onset of the epidemic companies found it difficult to collaborate as each company had its own facilities. At Mpumalanga, it was an exception as four companies in most cases banded together to hire motels for instance so as to meet the Department of Health department requirements in terms of ablution facilities. In Gauteng, they used two decommissioned mine hospitals to house their isolation and quarantine facility that was donated to government. In all the provinces, companies did their bit to help. On the UNISA study, there were two types of research. One was quantifying and understanding the Covid-19 epidemic and that was pioneered by the Oral Institute and the other was by UNISA itself and they looked at the effectiveness of the measures put in place based on the behavioural change model. It was completed and was a very useful study. Some of the results showed that employees were not keen to change their behaviour. The usual “I do not think I will be affected” attitude was what the study found just like at the initial HIV epidemic. They refused to change their behaviour to comply with Covid guidelines such as washing hands, sanitising and social distancing. Some sick persons the research found still went to work without informing their supervisor. In the companies where the research was done, UNISA ensured that they were informed of the research outcomes so as to fill specific gaps revealed by the study. On health awareness programmes; a lot was done through the Minerals Council, a lot of materials in the local languages were produced and in English.  Also most of the Covid-19 training was mandatory for the staff.

Mr Lefusi spoke about the TEBA and said it is providing a service for mining companies as we speak and their appointment was based on the activities needed by those companies at a point in time. The TEBA used to be a labour broker for foreign workers but was presently being used as a social and welfare arm of some companies in post-employment care of some workers. This ensured that their social development needs were met and that there were tracing agents for some workers who have outstanding retirement funds and for any other benefits those workers did not receive before they left for home. The TEBA also had a good infrastructure in the neighbouring countries in many provinces such as in the Eastern Cape, Lesotho, Swaziland, Mozambique and Botswana. When the Council considers bringing a worker back, there are two components involved; tracing them back to their home country, to be taken care of in their home country and to be transported in a coordinated manner back to the RSA. The TEBA did these jobs exceedingly well by coordinating and facilitating the return of the workers back here. They ensured the documents needed such as corporate visas, passports, permits and motivation needed as to why they are coming to the RSA were all arranged and were in order. The TEBA did an excellent job.

Mr Khumalo said the mining industry was unable to solve security issues that were occasioned by Covid-19. In terms of Limpopo, the Council has been working closely with the provincial government and the task team that was established. Meetings take place on a regular basis monthly and fortnightly and all interventions are looked at. The issue of food parcels is a part of the response from the mining industry and Limpopo also had a food bank in operation. Some mining companies contributed to the food bank and helped distribute the parcels to the community on their doorstep. The same thing happened likewise in Gauteng and the Free State even though the Council is aware that food parcel delivery cannot solve the issue of food insecurity.  The Mining Council will continue to engage with role players to ensure that food security is prioritised.  Water was always going to be a challenge, in the Northern Cape the industry provided water tanks using mine water that they helped to purify. In some areas water tankers were made available to municipalities. Boreholes were drilled by some companies in Limpopo as well. Overall, there was a concerted effort made by the mining industries to ensure that water was provided to the communities. As for education especially in the Northern Cape and Limpopo, the pandemic revealed the lack of connectivity to schools and the few that had, it was inadequate and unreliable. Plans are now afoot to roll out broadband working with companies and the Department of Education. In Mpumalanga, the Council collaborated with the Department of Health through the HOD and had a MOU with them. These helped the Council to reach more health workers with the supply of PPEs.

Mr Henk Langenhoven, Economic Advisor to the Presidency, said that of the 65 00 jobs lost, 60 000 of those was in the goldmines. Gold mining production dropped by 70%. The production trends in the last twenty years showed that that we are below the 2 000 index in terms of operation.  The mining sector was not in a good space even before the pandemic hit. The country was however fortunate that the commodity it produces was reaching better prices despite the slump in production and price yield. Oil went the other way; there was a surplus supply and low demand and a crash in price. There was no impact on mine mechanisation and there is no push to replace people with machines. On the goldmines, some of the mines are two to three kilometres down deep and in fact people should not actually be working there as the faces of the rock are over 60 degrees Celsius and machines should do such jobs.

Follow-up Questions

Mr Arnolds said the mining companies should follow-up on the quality of the PPEs supplied to the workers because there have been complaints made about that.

Ms Mokause said it would have been ideal to get a briefing on the activities that the Council was involved in at this time of Covid-19. It should include the Department of Education interventions. It is exciting to hear that the Council will be assisting healthcare workers because your interventions will finally assist the poor healthcare workers who are putting in more effort into saving the lives of ordinary South Africans. Fraud and corruption has bedevilled the Covid-19 funds and what is disturbing is that a lot of money was poured into the Northern Cape. We were not sure where this money was coming from but it was disheartening to see Somalian shops selling donated food parcels in exchange for cash.’ Who directed that municipalities be involved in the distribution of the food parcels knowing that that will open the way for politicians to take over’? ‘Why was the Department of Social Development not involved’?

Mr Chabane in response agreed that fraud was a big problem and the Council did all within its power to ensure beneficiaries received what was intended for them. It has to be noted too that there were cases when the mining companies preferred to distribute the food to the communities directly by themselves and there were times they were also prohibited from doing so by certain municipalities. The Council collaborated with different government departments especially the Department of Health. Dr Balfour sits on the Premiers Advisory Committee and so was close to what was happening there and the Council was talking directly with the head of hospitals, their procurement managers and technical people and was constantly engaging with them on what the Council’s intervention should be target at. The Council was not just doing its own thing but engaging with relevant authorities to do the right thing.

Mr Khumalo added that even though it was difficult, the Council worked with all the municipalities. When the call for food parcels was announced by the Department Social Development, the mines procured food parcels and delivered them through the DSD in the Northern Cape. There were a lot of lessons learned from this process.

The Acting Chairperson thanked the Minerals Council SA for its presentation and if there was any more information the Committee needed, it will write to the Council.

Adoption of Committee minutes

The minutes of 02 October 2020 was adopted without amendments.

The Chairperson thanked the Committee for taking the time to attend and participate in the meeting and apologised for the bad network that prevented her from chairing the meeting.

The meeting was adjourned.

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