1. Social Development Programs Beyond Compliance Beyond Compliance
2. Sustainable DevelopmentDefined 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, social and viable economy responsible governance socialcohesion / 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
3. Responsible MiningThe 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 through the concerted efforts of Government and th h th t d ff t f G t dprivate sector, in order to enhance national growth enhance national growth in a way that effectively safeguards the environment way that effectively safeguards the environment and safeguards the environment and protects the rights of affected communities. ‐ Executive Order No. 270: National Policy Agenda on Revitalizing Mining in the Philippines
4. Responsible MiningThe 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 Communities Mining CommunitiesIn the event that prior informed consent is secured… the concerned parties shall agree on the royalty payment for concerned parties shall agree on the royalty payment forthe concerned Indigenous Cultural Communities (ICC) which may not be less than 1% of the gross output. y 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
5. CAGDIANAO MINING HINATUAN MINING TAGANITO MINING CORPORATION CORPORATION CORPORATION Vision Statement To be a world‐class diversified mineral resource To be a world class diversified mineral resource company that has exemplary relationships with all stakeholders.
6. NAC Mission StatementUsing 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 • Uplifting the quality of life of our host communities • Protecting the environment in all our operations; and, • Nurturing our employees and providing a safe and healthy g p y p g f y workplace for them to achieve their full potential • Adopting the highest standards of corporate governance
7. Employee Benefits# of Full Time Employees 1,158# of Contractors / Casuals 3,356Average Wage per day (R&F) TMC, CMC, HMCAverage Wage per day (R&F) – TMC CMC HMC Php 509Reqd Minimum Wage Region XIII Php 243Average Wage per day (R&F) – RTN Php 459Reqd Minimum Wage Region IVBR d Mi i W R i IVB Php 264 Ph 264
8. Employee Benefits 600 500 509 109% 74 % p / day 400 459 300 300Php 200 264 243 100 100 ‐ Average Wage per day (R&F) ‐ CMC,HMC,TMC Average Wage per day (R&F) ‐ CMC HMC TMC Reqd Minimum Wage Region XIII Average Wage per day (R&F) ‐ RTN Reqd Minimum Wage Region IVB
10. 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**: 209• Years of service: 33% of workforce ‐ 15 Y f i 33% f kf 15 years+ (13% (13% over 25 years) 25 )• 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
11. Social Development Program HEALTH EDUCATION LIVELIHOODCAGDIANAO MINING CORPORATION HINATUAN MINING CORPORATION INFRASTRUCTURE IEC TAGANITO MINING CORPORATION Other Initiatives
12. Community Health Care Various Medical Missions 2010 SDMP Expenditure on Health: 2010 SDMP Expenditure on Health: Php 43.2 M
13. Community Health Care Number of patients 60,000 48,278 50,000 38,045 38 045 40,000 31,279 Status : Primary Hospital 30,000 Workforce : 38 Staff 19,228 20,000 Doctors : 9 10 000 10,000 Nurses : 14 ‐ Other Staff: 15 2007 2008 2009 2010 65% of patients are non‐Operating Cost (2010): Php 60.5 MOperating Cost (2010): Php 60.5 M Social expenditures: Php 38 M dependents.
14. Community Education Educational Support Projects 2010 SDMP Expenditure on Education: Php 52 M
15. Community Education Leonides S. Virata Memorial School (LSVMS) Number of Students Number of Students 1,260 1,252 Status : Private school, supervised by De La 1,237 1,240 1,233 Salle University, Bacolod CityWorkforce : 52 staff 1,220 a. School Principal : 1 1,200 1,188 b. Primary & Elementary Faculty: 25 1,180 c. Secondary : 17 1,160 d. Other Staff : 9 1 140 1,140 SY 07‐08 SY 08‐09 Sy 09‐10 Sy 10‐11 Operating Cost (2010): Php 27 M Almost 50% of students are non‐ Social expenditures: Php 15.5 M Social expenditures: Php 15 5 M dependents
16. Community Livelihood Income Generating Projects 2010 SDMP Expenditure on Livelihood: Php 13.8 M
17. Community Infrastructure 2010 SDMP Expenditure on Infrastructure: Php 35.9 M
18. Community Infrastructure Community Electrification Project Electric Power Generation Project l No of Communities served: 3 No. of Communities served: in Sitio Campandan No. of Households : 403 No. residents : 2,166 , Total Cost : Php 4.46 M Electrification Project poweredProject powered by SURNECO for Brgy. Talavera & Silang
19. Community IEC 2010 SDMP Expenditure on IEC: Php 13.8 M
20. Indigenous Housing IP Housing (Gawad Kalinga) No. of Housing Units Built: 208 Units @ 6 Sites 208 Units @ 6 Sites Total Cost (2010): Php 11M
21. Indigenous LearningRio Tuba Situationer: In 2006, there was a rough estimate of 65% Indigenous In 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 issueWhat is the Indigenous Learning System (ILS) Parallel learning system for the ICCs / IPs which provides a 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 children It 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.
22. Indigenous Learning ILS Mission: 1. To eradicate illiteracy; 1 T di illi 2. To raise the level of basic and functional literacy; functional literacy; 3. To complete the equivalency of elementary and high school levels of elementary and high school levels of education; 4. To hone employable and life skills to p y become more productive and effective citizens; 5. To develop proper values and attitudes necessary for personal, community and national community and national development.
23. Indigenous LearningIndigenous Learning System (ILS) Concept : Arnold Jansen Catholic Concept : Arnold Jansen Catholic Enrollment Profile (06 09) Enrollment Profile (06‐09) Mission Foundation 09‐10 Implementor: St. Jude Parish, SVD Order 08‐09 Level 3 Levels: Level 1: Non‐literate Level 2 Level 2: Elementary undergraduate 07‐08 Level 1 No. of sites Level 3: Secondary undergraduate y g 06‐07 06 0 Work force: 14 staff 0 100 200 300 Total Cost (2010): Php 9.9 M
24. NAC Total Social ExpendituresBreakdown of Social Expenditure per Total Social component Expenditures for Livelihood 13.8 2010: Php 223.5 M Php 223.5 M Education Infrastructure 52.0 35.9 Required 1% IEC DMMC/DMPC DMMC/DMPC 13.8 for 2010 : Health Other Initiatives Php 112.40 M 43.2 43 2 / ComRel / Assistance 64.8 % Above Compliance= 99%
25. Beyond ComplianceWe 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 so that f h future generations can thrive well b i hi ll beyond the d h cessation of our mining activities.• We recognize that there is also a clear b h h l l business rationale. l We have been rewarded with a productive and loyal l b f labor force, a solid reputation l ll and globally, and lid t ti locally d l b ll d acceptability from our host communities.
26. Beyond ComplianceWe can and should do more for our employees and the communities. PROJECT IMPACTS