Nickel Asia Corp (NAC) Dennis Zamora Social Development Programs Beyond Compliance Mining Philippines 2011 Conference and Exhibition Makati, Philippines September 14, 2011,

1. Social Development Programs
Beyond Compliance
Beyond Compliance

2. Sustainable Development
Defined as “meeting the needs of the present generation
g p g
without 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 social
cohesion / harmony and ecological integrity to ensure
that development is a life‐enhancing process. The
that development is a life enhancing process. The
ultimate aim of development is human development now
and through future generations.”
‐ Philippine Agenda 21

3. 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
through the concerted efforts of Government and
th h th t d ff t f G t d
private 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 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 Communities
Mining Communities
In 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 for
the concerned Indigenous Cultural Communities (ICC)
which may not be less than 1% of the gross output.
y f g p
Expenses 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 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
• 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 3,356
Average Wage per day (R&F) TMC, CMC, HMC
Average 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
Req'd Minimum Wage Region IVB
R 'd Mi i W R i IVB Php 264
Ph 264

8. Employee Benefits
600
500
509 109% 74 %
p / day
400 459
300
300
Php
200 264
243
100
100
‐
Average Wage per day (R&F) ‐ CMC,HMC,TMC
Average 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

9. 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 pay
Generous retirement pay

10. Employee Benefits
Employee 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
LIVELIHOOD
CAGDIANAO 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 M
Operating 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 City
Workforce : 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 powered
Project 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 Learning
Rio 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 issue
What 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 Learning
Indigenous 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 Expenditures
Breakdown 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 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 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 Compliance
We can and should do more for our employees
and the communities.
PROJECT
IMPACTS

27. http://www.nickelasia.com