dennis zamora - nac - social development programs beyond compliance

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Nickel Asia Corp (NAC)Dennis ZamoraSocial Development Programs Beyond ComplianceMining Philippines 2011 Conference and Exhibition Makati, Philippines September 14, 2011,

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Page 1: Dennis Zamora - NAC - Social Development Programs Beyond Compliance

Social Development ProgramsSocial Development ProgramsSocial Development ProgramsSocial Development ProgramsBeyond ComplianceBeyond ComplianceBeyond ComplianceBeyond ComplianceBeyond ComplianceBeyond ComplianceBeyond ComplianceBeyond Compliance

Page 2: Dennis Zamora - NAC - Social Development Programs Beyond Compliance

Sustainable Development

Defined as “meeting the needs of the present generation g p gwithout compromising the ability of future generations to meet their own needs.”

‐ The World Commission on Environment and Development, 1987;Our Common Future, also known as the Brundtland Report

“Its essence is in the harmonious integration of a sound and viable economy responsible governance socialand viable economy, responsible governance, social cohesion / harmony and ecological integrity to ensure that development is a life‐enhancing process. Thethat development is a life enhancing process. The ultimate aim of development is human development now and through future generations.”

‐ Philippine Agenda 21

Page 3: Dennis Zamora - NAC - Social Development Programs Beyond Compliance

Responsible Mining

The Philippine Mining Act of 1995 (Mining Act), provides that it shall be the responsibility of the State to promote the rational exploration, development, utilization and conservation of mineral resources th h th t d ff t f G t dthrough the concerted efforts of Government and private sector, in order to enhance national growth enhance national growth in a way that effectively safeguards the environmentsafeguards the environment andway that effectively safeguards the environment safeguards the environment and protects the rights of affected communities.protects the rights of affected communities.

‐ Executive Order No. 270: National Policy Agenda on Revitalizing Mining in the Philippines

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Responsible Mining

The Contractor/Permit Holder/Lessee shall allot annually a minimum 1.50% of the operating costs minimum 1.50% of the operating costs necessary to implement SDMP, program for advancement of mining technology and geosciences and IEC program.

‐ Section 134 ‐ IRR of Philippine Mining Act on Development of Mining CommunitiesMining Communities

In the event that prior informed consent is secured… the concerned parties shall agree on the royalty payment forconcerned parties shall agree on the royalty payment for the concerned Indigenous Cultural Communities (ICC) which may not be less than 1% of the gross output. which may not be less than 1% of the gross output. y f g py f g pExpenses for community development may be credited to or charged against said royalty.

‐ Section 16 ‐ IRR of Philippine Mining Act on Ancestral Lands

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TAGANITO MINING CORPORATION

CAGDIANAO MINING CORPORATION

HINATUAN MINING CORPORATION CORPORATION CORPORATION CORPORATION

Vision StatementVision Statement

To be a world‐class diversified mineral resourceTo be a world class diversified mineral resource company that has exemplary relationships with all 

stakeholders.stakeholders.

Page 6: Dennis Zamora - NAC - Social Development Programs Beyond Compliance

NAC Mission Statement

Using best global industry practices, we are committed to :• Optimizing our current operations• Exploring and developing additional deposits for nickel and

other minerals to sustain our growth• Delivering to our customers quality mineral products in a

timely manner•• UpliftingUplifting thethe qualityquality ofof lifelife ofof ourour hosthost communitiescommunities• Protecting the environment in all our operations; and,•• NurturingNurturing ourour employeesemployees andand providingproviding aa safesafe andand healthyhealthygg p yp y p gp g ff yy

workplaceworkplace forfor themthem toto achieveachieve theirtheir fullfull potentialpotential• Adopting the highest standards of corporate governanceAdopting the highest standards of corporate governance

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Employee Benefits

# of Full Time Employees  1,158

# of Contractors / Casuals  3,356

Average Wage per day (R&F) – TMC CMC HMC Php 509Average Wage per day (R&F) – TMC, CMC, HMC Php 509

Req'd Minimum Wage Region XIII Php 243

Average Wage per day (R&F) – RTN Php 459

R 'd Mi i W R i IVB Ph 264Req'd Minimum Wage Region IVB Php 264

Page 8: Dennis Zamora - NAC - Social Development Programs Beyond Compliance

Employee Benefits

500 

600 

509 109%

300

400 509

459

p / day 109% 74 %

100

200 

300 

243 264

Php

100 

Average Wage per day (R&F) ‐ CMC HMC TMCAverage Wage per day (R&F) ‐ CMC,HMC,TMC

Req'd Minimum Wage Region XIII

Average Wage per day (R&F) ‐ RTN

Req'd Minimum Wage Region IVB

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Employee Benefits

• Free housing, utilities, food• Free education• Free medical care• Free transportation• Recreational facilities• Recreational facilities• Yearly bonus averaging 2–3 months• Generous retirement payGenerous retirement pay

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Employee BenefitsEmployee Statistics• Full‐time employees: 559; casuals/contractors: 782*• No of IPs employed: 121 (full time and casuals)• No. of IPs employed: 121 (full time and casuals)• No. of RTNFI school graduates employed**: 187• No. of families with more than one member employed**: 209Y f i 33% f kf 15 (13% 25 )• Years of service: 33% of workforce ‐ 15 years+ (13% over 25 years)

• Lowest wage R&F: Php 288/day (9% higher than min wage Region IV)• Average wage R&F: Php 459/day (74% higher than min wage Region IV)

*    Includes no. of employees of contractors**  Includes CBNC and RTNFI 

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Social Development Program

HEALTHHEALTHHEALTHHEALTH

EDUCATIONEDUCATION

LIVELIHOODLIVELIHOOD

CAGDIANAO MINING CORPORATION

HINATUAN MINING CORPORATION

INFRASTRUCTUREINFRASTRUCTURE

IECIEC

TAGANITO MINING CORPORATION Other InitiativesOther Initiatives

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Community Health Care

Various Medical MissionsVarious Medical Missions

2010 SDMP Expenditure on Health:2010 SDMP Expenditure on Health: Php 43.2 MPhp 43.2 M

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Community Health Care

38 04548,278 

50,000 

60,000 

Number of patients

19,228 

31,279 38,045 

10 000

20,000 

30,000 

40,000 Status          :   Primary Hospital

Workforce    :     38 StaffDoctors :           9

10,000 

2007 2008 2009 2010

Nurses :         14Other Staff:          15

Operating Cost (2010): Php 60.5 M 65% of patients are non‐Operating Cost (2010):  Php 60.5 MSocial expenditures:   Php 38 M dependents.

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Community Education

Educational Support ProjectsEducational Support Projects

2010 SDMP Expenditure on Education: Php 52 MPhp 52 M

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Community Education

Number of Students

Leonides S. Virata Memorial School (LSVMS)

Status : Private school, supervised by De La Salle University, Bacolod City

Workforce :        52 staff

1,233 1,252 

1,237 

1,220 

1,240 

1,260 

Number of Students

a. School Principal :  1b. Primary & Elementary Faculty:   25c. Secondary :                                      17d. Other Staff :                                      9

1,188 

1 140

1,160 

1,180 

1,200 

1,140 SY 07‐08 SY 08‐09 Sy 09‐10 Sy 10‐11

Operating Cost (2010):  Php 27 MSocial expenditures: Php 15 5 M

Almost 50% of students are non‐Social expenditures:  Php 15.5 M dependents

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Community Livelihood

Income Generating ProjectsIncome Generating Projects

2010 SDMP Expenditure on Livelihood: Php 13.8 MPhp 13.8 M

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Community Infrastructure

2010 SDMP Expenditure on Infrastructure: Php 35.9 MPhp 35.9 M

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Community Infrastructure

Community Community 

l No of Communities served: 3

Electrification ProjectElectrification Project

Electric Power Generation Project in Sitio Campandan

No. of Communities served: 3No. of Households : 403No. residents : 2,166

Electrification Project powered

,Total Cost : Php 4.46 M

Project powered by SURNECO for Brgy. Talavera & 

Silang

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Community IEC

2010 SDMP Expenditure on IEC: Php 13.8 MPhp 13.8 M

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Indigenous Housing

IP Housing (Gawad Kalinga)

No. of Housing Units Built:208 Units @ 6 Sites208 Units @ 6 Sites

Total Cost (2010): Php 11M

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Indigenous Learning

Rio Tuba Situationer:Rio Tuba Situationer:In 2006 there was a rough estimate of 65% IndigenousIn 2006, there was a rough estimate of 65% Indigenous People on the mining impact areas who lack basic literacy skills on reading, writing, and numeracy. 

RTNMFI established ILS in 2006 to respond to this issueRTNMFI established ILS in 2006 to respond to this issue

Parallel learning system for the ICCs / IPs which provides a

What is the Indigenous Learning System (ILS)What is the Indigenous Learning System (ILS)

Parallel learning system for the ICCs / IPs which provides a viable alternative to the existing formal education. It aims to empower the out‐of‐school aged childrenIt aims to empower the out‐of‐school aged children (OSAC), out‐of‐school youth (OSY), including non‐literate adults (NLA) to continue learning in any manner.adults (NLA) to continue learning in any manner.

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Indigenous Learning

ILS Mission:1 T di illi1. To eradicate illiteracy;2. To raise the level of basic and functional literacy;functional literacy; 

3. To complete the equivalency of elementary and high school levels ofelementary and high school levels of education;

4. To hone employable and life skills to p ybecome more productive and effective citizens;

5. To develop proper values and attitudes necessary for personal, community and nationalcommunity and nationaldevelopment.  

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Indigenous Learning

Indigenous Learning System (ILS)Indigenous Learning System (ILS)Concept : Arnold Jansen Catholic Enrollment Profile (06‐09)Concept       :    Arnold Jansen Catholic  

Mission Foundation

Implementor:   St. Jude Parish, SVD Order09‐10

Enrollment Profile  (06 09)

Levels: Level 1:  Non‐literateLevel 2:  Elementary undergraduateLevel 3:  Secondary undergraduate

06 0

07‐08

08‐09 Level 3Level 2Level 1No. of sites

y g

Work force:  14 staff0 100 200 300

06‐07

Total Cost (2010): Php 9.9 M

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NAC Total Social Expenditures

Total Social Breakdown of Social Expenditure per component Expenditures for 

2010: Php 223.5 M Php 223.5 M Livelihood

13.8 

component

Required 1% Required 1% DMMC/DMPCDMMC/DMPC

Education52.0 

Infrastructure35.9 

IEC DMMC/DMPC DMMC/DMPC for 2010 :for 2010 :

Php 112.40 MPhp 112.40 MHealth43 2

13.8 

Other Initiatives / ComRel 43.2  /Assistance

64.8 

% Above Compliance= 99%% Above Compliance= 99%

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Beyond Compliance

We go beyond compliance because:• We subscribe to the ideals of sustainable development

and responsible mining.• We believe that it is morally correct to give back to our

host communities and to safeguard the environment soh f i h i ll b d hthat future generations can thrive well beyond thecessation of our mining activities.

h h l l b l• We recognize that there is also a clear business rationale.We have been rewarded with a productive and loyall b f lid t ti l ll d l b ll dlabor force, a solid reputation locally and globally, andacceptability from our host communities.

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Beyond Compliance

We can and should do more for our employees We can and should do more for our employees and the communities.and the communities.

PROJECTPROJECTIMPACTSIMPACTS

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