How prevalent is corruption in the African mining industry and what are the potential consequences and or compliance issues for mining companies? Most mining companies have, over the past five to ten years, significantly strengthened anti-bribery and corruption policies, procedures and compliance systems in response to growing actual and perceived corruption and dishonest or potentially dishonest dealings within the Mining and Natural Resources Industry in Africa. This is a reflection of both increased corruption and dishonest dealings, and a tightening-up of anti-bribery and corruption laws, around the world, including the United States, the United Kingdom, Australia, Canada, and other similar jurisdictions. This has also been supported, in many African countries, by governmental focus on addressing corruption, in its many forms, from gifts through to “backhanders” and complex structures that are put in place to receive payments. While cash is often still the preferred method of payment of these gifts and “backhanders”, we have also seen the introduction of payments through cryptocurrencies and payment into offshore structures and accounts. At the same time, there is increased transparency because of basic tools such as anonymous hotlines for reporting, through to forensic systems. However, the primary mechanism for disclosure of corrupt practices remains “whistleblowing” by community members, disgruntled service providers, and other persons who are simply not happy with the state of affairs. Corruption in its various forms remains a significant challenge for mining companies because it potentially undermines the “social licence to mine” and relationships with regulators, placing mining projects and operating mines at risk, but also because of the potential exposure to criminal prosecution either as a result of direct involvement in corrupt activities, or vicariously, because payments have been facilitated by key employees. South Africa has all the ingredients to ensure that its mining industry attracts investors and flourishes as a central pillar of the Country’s economy. What are the key health & safety concerns facing the mining sector in South Africa and Africa, and what can be done to reduce risk and ensure regulatory compliance? Health and safety remains a key concern, and a top priority, for South African mines, and the various stakeholders including government, and trade unions. Unfortunately, while the number of persons sustaining serious or fatal injuries has decreased on a year-on-year basis, there are simply still too many incidents/accidents, causing serious and fatal injuries. By mid-August 2024 twentyseven persons working on South Africa’s mines were fatally injured. The historical gold-mining class actions in relation to gold mineworkers who presented with silicosis and the current class actions in relation to coal mine workers who present with chronic obstructive pulmonary disease or coal worker’s pneumoconiosis have also resulted in a focus on occupational diseases. Health and safety is becoming more of a key criteria for investors, along with measurement against environment, social and governance (ESG) criteria. With the increased focus on health, safety and the environment, particularly within the framework of ESG, this impacts on investment decisions. Unfortunately, due to the sometimes ambiguous nature of the ESG criteria, projects that could benefit all stakeholders including government, through taxes and communities, through jobs and infrastructure development, do not secure approvals and financing. South Africa’s occupational health and safety laws, are extremely robust, and if complied with, can provide a proper framework for mining activities to be carried out safely. The stakeholders in South Africa’s Mining and Natural Resources Industry, including the regulators (Department of Mineral Resources), the mining companies, and the trade unions, are committed to improving health and safety and it is only through co-operation amongst the stakeholders that health and safety can be significantly improved. The current focus includes occupational diseases as a result of exposure to dust, diesel particulate matter and other fumes and gases, and the protection of women WWW.LAWYER-MONTHLY.COM 11 Health and safety remains a key concern, and a top priority, for South African mines, and the various stakeholders including government, and trade unions.
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