Towards Benchmarking Of Safety Performance In The Platinum Sector

Safety in South African mines is a subject of significant interest, since many mining companies are experiencing production deficits due to safety-related stoppages. In this paper, safety data from the South African platinum mining sector is analysed for the period 2006 to 2010. The data was obtained from company annual reports as well as the Department of Mineral Resources, and analysis in the study is limited to injury and fatality data only. The overall safety performances of companies in the sector are compared, and opportunities for benchmarking and recognising potential sources of best practice amongst platinum miners are identified. Improving safety usually incurs a cost, and mining companies are particularly conscious of the importance of controlling costs. However, cost considerations often deal only with direct costs, and it has been shown that indirect costs are usually far more significant. Therefore, a greater safety spend will usually result in the creation of value for the mine since it will reduce the indirect costs associated with accidents. The results of some recent research in this area are presented. In this light, where available, the financial performances of mining companies in the sector, obtained from published annual results, are included in the benchmarking exercise to determine whether there is any correlation with safety performance.