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REPORT OF THE SELECT COMMITTEE ON ECONOMIC DEVELOPMENT ON

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REPORT OF THE SELECT COMMITTEE ON ECONOMIC DEVELOPMENT ON

REPORT OF THE SELECT COMMITTEE ON ECONOMIC DEVELOPMENT ON THE

    OVERSIGHT VISIT TO HARMONY GOLD MINE ELAND SHAFT IN WELKOM, DATED 7 JULY 2009.

    The Select Committee on Economic Development having undertaken an oversight visit to Harmony Gold Mine Eland Shaft on the 19 June 2009, reports as follows:

1. Aim of the visit

    On 10 June 2009, the Select Committee on Economic Development unanimously agreed to visit Harmony Gold’s Eland Shaft to assess and familiarise itself with the tragic death of illegal miners. The Committee’s intention in exercising its oversight role was to engage the mine management, hostel dwellers and the Department of Police. The Committee visited the hostel to identify problem areas in relation to measures to prevent unauthorised persons from gaining access to abandoned mines. The Committee also wanted to see how best Parliament could intervene in improving the safety record of mines in South Africa.

2. Participants

Select Committee on Economic Development

    Hon. F Adams [Chairperson], Hon. E C Van Lingen (DA), Hon. B A Mnguni (ANC), Hon. M L Moshodi (ANC), Hon. S S Chen (DA), Hon. M C Dikgale (ANC), Hon. K A Sinclair (COPE), Hon. M C Maine (ANC), Ms N G Dinizulu (Committee Secretary) and Mr M Erasmus (Committee Assistant).

Department of Minerals and Energy

    Mr P Bezuidenhout: Principal Inspector of Mines; and Mr D Msiza: Deputy Chief Inspector of Mines.

South African Police Service

    Mr D R Mokone: Cluster Commander - Welkom; Director S Muller: Station Commissioner; Mr R J A Earle: Superintendent: Crime Prevention; Mr D M Mongali; Mr L J Tsuuene: Provincial Head Detectives; Mr Mashego: Provincial Commissioner; Mr Kgotile:Captain and Mr A S Foley: Commander Detective.

Harmony Gold Mine

    Mr A Khuzwayo: Harmony Gold Management; Mr E Van Rensburg: Management Security; Ms E Cilliers: Technical Services; Mr H E Mashego: Human Resources Executive; Mr A Buthelezi; and

    Mr P K Mohale: Group Human Resources Leader

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National Union of Mineworkers

    Mr C Kwaza: Regional Treasurer; Mr N Siqwala: Regional Deputy Chairperson; Mr P Hlabizulu: Deputy Secretary for Health and Safety; and Mr M Masukela: Deputy Chairperson for Education.

3. Overview and Proceedings

    The Department of Minerals and Energy gave a short briefing to the Committee which was followed by extensive discussions.

4. Briefing by Department of Minerals and Energy

    The Department informed the Committee that in September 2008 an operation was initiated to address the illegal mineworkers (Zama Zama) issue in the Goldfields Region. It was agreed that there was a need to involve different role players i.e. the South African Police Service (SAPS) Explosives Unit, Asset Forfeiture Unit (AFU), SAPS Intervention Unit, National Prosecuting Authority (NPA), Director of Public Prosecutions (DPP), Local police stations, SAPS Organized Crime and neighboring mines.

    A presentation was handed out to all role players as well as Harmony Gold Mine Management and Unions regarding the current situation of underground activities of Zama Zamas at the mines. Several accidents occurred where the Zama Zamas threatened legal mine workers in active working areas. Zama Zamas have also started to mine the B-Reef areas at Tshepong and

    Masimong 5 shafts. A joint SAPS and Mine Security operation was consequently conducted at all concerned shafts. The operation, which was named, “Operation Zama – Zama” commenced on

    16 February 2009.

    4.1 Breakdown of arrests, injuries, deaths and disciplinary action i.r.o illegal mining

    The Committee was provided with a breakdown of the numbers of illegal miners arrested, sick/injured/deceased, mine employees disciplined and contractors who faced disciplinary charges from 2007-2009:

     2007 2008 2009

    Illegal Miners Arrested 475 757 806

    Illegal Miners Injured 13 66 16

    Illegal Miners 36 8 105

    Deceased

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Mine employees being 64 80 101

    disciplined

    Contractors being 54 56 50

    disciplined

4.2 Money, property and foodstuffs recovered

    Between January 2007 and May 2008 an amount of R133 123.10 was recovered from illegal miners. Between November 2008 and December 2008 an amount of R13 230 was recovered from illegal miners. For the period January 2007 to May 2008 an amount of R96 340 was recovered from the mine employees. Recovery of property and foodstuff belonging to the mine amounted to R2 23 0522.55, while the amount of cash found in the possession of Zama-Zamas totalled R213 415.20. Two tons of gold-bearing material (GBM) valued at R1.4 million and 1.5 kg Amalgam valued at R156 000 were also recovered.

    4.3 Progress on suggestions made during the meeting held in Bloemfontein on 11 November 2008

    ; The National Prosecuting Authority (NPA) requested that an agreement be reached

    between all the Mine Unions that no foodstuff or money will be taken underground.

    Progress in this regard is still ongoing.

    ; Steps have been taken for more serious charges to be brought against illegal miners. ; Measures are in place for Prosecutors to present evidence in aggravation of sentence. ; Measures are in place for severe disciplinary action against Mine/Contractor and Security

    personnel.

    ; Measures to address money laundering are in place.

    ; Measures are in place to obtain legal advice in respect of employees of contractor

    companies.

    ; The SAPS Task Team Intervention is in progress.

    ; Steps have been taken to build up a database of illegal miners and their accomplices. ; Measures are in force in terms of which all monies found on miners going underground

    will be seized.

    ; Security personnel will investigate all incidents.

    ; Apprehended miners should be encouraged to identify their contacts inside and outside

    the mine. Possible plea bargaining processes are in place.

    ; A zero tolerance policy is being applied.

    ; Programs are currently being presented to employees on ethics, honesty and integrity,

    economic impact, loss of job opportunities, etc. in order to address the moral fiber issue. ; Progress is being made to establish a safe “whistle blowing” procedure.

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    ; The initiative for raids to be conducted by SAPS units from outside the Free State due to

    corruption and involvement of some members is in the planning phase, and a meeting

    was scheduled for 09/02/2009.

    ; The National Union of Mine Workers and the Solidarity Mine Union which operate in the

    Harmony South Region, as well as internal Mine Management were given presentations

    on illegal mining.

    ; The recommendation that employment contracts contain a clause indicating that illegal

    mining activities will result in summary dismissal has not yet been implemented. ; The company should weigh up the losses that they will suffer from a 2 to 3 day total shut

    down.

    ; A Group Database linked with surrounding mining houses for Criminal miners, Mine and

    Contractor employees who have been charged for whatever reason and dismissed is not

    yet in place.

5. Remedial actions to be undertaken by the following entities:

5.1 State

    ; Regular inspection and checks of attendance records.

    ; Audits of explosives.

    ; Urgent investigations on suspected illegal activities.

    ; Hostel raids.

    ; Local authorities to work together with SAPS and mine inspectors.

    ; Community education programmes on danger and health issues of illegal mining. ; Amendment of Mine Health and Safety Act, 2008 to increase fines for non-compliance

    with safety regulations from R200 000 to R1 million.

5.2 Harmony Gold Mine

    ; Access Control

    ; Food stoppage: Searches will be conducted by security personnel and a managerial

    instruction will be issued in compliance with the judicial system to support prosecutors in

    prosecuting mine workers assisting Zama Zamas.

    ; Operation Night Hawk: Mine security is to clamp down on food supply to underground

    workers.

    ; Explosives Control: Audits will be conducted by SAPS or Department of Minerals and

    Energy.

5.3 Mine Owners

    ; Improved access control on all mines.

    ; Daily monitoring of access into and out of mines.

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; Tighten controls over explosives.

    ; Report suspected illegal operations to authorities.

    ; Monitor underground environment and report to authorities regarding dangerous

    exposures.

    ; Employee campaigns to expose illegal operations.

5.4 Labour Unions

    ; Member campaigns to expose illegal operations.

    ; Report suspected illegal operations to authorities.

    6. Presentation by Department of Police: Crime situation in Thabong and illegal mining hostels

6.1 Historical background

    The G-hostel in Thabong is situated in the main street, Constantia Road, near the Teto Secondary School in Zone 1. About 2 500 people are accommodated at G-hostel. The hostel which belongs to the municipality was renovated to accommodate family units. Most of the residents are municipal employees or people employed by the industrial sector. Many of the residents are also involved in illegal mining activities and the illegal selling of gold, liquor and firearms.

6.2 Challenges facing Department of Police

    ; The environmental design of the hostel is conducive to crime, because it allows passages

    between the hostel units which make the pursuit of suspects difficult. ; The infrastructure is poor, the roads and entrances to the hostel units are full of potholes

    and trenches and the road condition exceptionally poor.

    ; It is nearly impossible to action a cordon and search operation, because the area is not

    fenced.

    ; Access to the units is poor for the police and other local authority services because of the

    construction of illegal structures.

    ; Most of the residents are not co-operating with the police, since many are involved in

    crime or have relations with persons involved in criminal activities. ; Many of the residents living in the hostel have no legal right to live there. Undocumented

    people frequent the hostel and occupy some of the units without being traced. ; There is an open field between the mine property and the hostel, and thus hostel dwellers

    can come and go undetected.

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