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Team 18 presentation


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Team 18 presentation

  1. 1. HERO for South Africas Miners Team 18 Emily Briskin Jessica Lopez Christina Chandra Teja Padma Rachel Kubi Karen Zhang
  2. 2. HERO A partnership program to improve theHealth, Environment, and Rights of South African mining workers
  3. 3. HERO: the ModelCorporations Health Monetary Partnership Government Environment HERO Seal Awareness Community Human Rights
  4. 4. HERO Seal: A Social Incentive Involve South Africans and their global allies in advocacy and activism Build awareness and support for the HERO Seal worldwide
  5. 5. HERO: Health Problems Strategies BenefitsTB prevalence of Pool government and corporate funding toup to 50% in build healthcare centers Healthier, happierminers workers Train community members to becomeSilicosis nurses and community health-care workers Cash rewards andprevalence of up to improved Recognize companies that meet worker- productivity25% in miners health standards by certifying them with The HERO Seal and providing Cash on Create new JobHIV prevalence of Delivery incentives for achieving key Opportunitiesup to 30% in health outcomes such as:miners Outcome-focus -10% yearly decrease in HIV incidence gives flexibility inSpread of illness -80% of HIV+ workers on ARV treatment methods usedwhen miners travel -20% yearly decrease in TB prevalencehome -95% of TB+ workers on DOTS therapy
  6. 6. HERO: Environment Problems Strategies Benefits Pilot a program that treats acid mine Net monetary gain drainage and use treated drainage water toAcid Mine generate electricity Reduce acidity in drinking waterDrainage (AMD) Corporates can be self-sustained to run supply sourcefrom gold mines the program after the start yearmakes public Eliminatewater supply 10% of generated profits will be paid back abandonment ofacidic to the government mines Corporations who meet environmental Company image improvement standards will receive the benefits from HERO Seal recognition with HERO Seal
  7. 7. HERO: Human Rights Problems Strategies Benefits Increase awarenessLack of human Media and Advocacy campaign around the and enhancerights awareness HERO Seal corporate image Create an online space under HERO Empower workersLow worker where workers can submit complaints, and improveSatisfaction which would be incorporated into new transparency Samrad (South African Mineral Regulation277 mining Administration) online system Decreasedeaths in 2008- prostitution2009 Provide housing units for miners to live with wives and chidren Wives can serve asMen separated community healthfrom their families workers
  8. 8. HERO: LimitationsMining Companies might not want to accept theprogram: we combat this using monetary incentivesand the HERO SealCurrent laws are not well enforced, our policies fill inthese gaps, but the current laws remain weakWhat about smaller mining companies: we areaddressing the biggest corporations first to reach thegreatest number of workers for our initial investment
  9. 9. HERO: Budget
  10. 10. HERO: Advantages An integrated, comprehensive, and self-sustainable program Higher non-salary benefits with out laying burden on mining corporations Improve welfare at lower costs Industrial level competition promotes efficiency
  11. 11. HERO: ConclusionCorporations Health Government Environment Community Human Rights
  12. 12. Appendix: Why Invest in the MiningSector?• "In October Gill Marcus, governor of the central bank, said that the past two months had hurt South Africa’s reputation as a place to invest... “The outlook at the moment is deteriorating rapidly,” she said. " (The Economist- "Over the Rainbow" 2012)• "Mark Cutifani, chief executive of AngloGold Ashanti, the world’s third- biggest gold producer, says the strikes in the mining industry could lead his company to shrink its operations in South Africa." (The Economist- "Over the Rainbow" 2012)• With the mining sector contributing to up to 18% of South Africas GDP (both directly and indirectly), we cannot afford for the situation to deteriorate further and for companies to leave South Africa (given in case information)
  13. 13. Appendix: Why train nurses andcommunity health workers?• “Chronically poor education means that thousands of jobs go unfilled. Almost half the 95,000 or so nursing jobs in the public sector are vacant, according to the South African Institute of Race Relations.”(The Economist- "Over the Rainbow" 2012)• "But are doctors and nurses necessary to improve rural health? Two very successful programs in desperately poor parts of India’s Maharashtra state say no. SEARCH (the Society for Education,Action and Research in Community Health), in the district of Gadchiroli, and the Comprehensive Rural Health Project, in the district of Jamkhed, both recruit ordinary women to take care of their villages’ health. They have had a huge impact on the health and prosperity of their villages." (Tina Rosenberg, New York Times; doctors/ )
  14. 14. Appendix: Cost Effectiveness of TB TreatmentsExample: China implementing WHO recommended DOTSImpact: China achieved a 95 percent cure rate for new cases within two years of adopting DOTS, and a cure rate of 90 percent for those who had previously undergone unsuccessful treatment. The number of people with TB declined by over 37 percent in project areas between 1990 and 2000, and 30,000 TB deaths have been prevented each year.Cost and Cost-Effectiveness:• Successful treatment cost less than $100 per person. (World Bank and WHO estimates)• One healthy life was saved for an estimated $15 to $20• Economic rate of return of $60 for each dollar invested.• The World Bank ranks DOTS as one of the most cost-effective of all health interventions.Source: Center for Global Development
  15. 15. Appendix: How Cost-Effective areprimary healthcare centers?• Illness lowers worker productivity and drains household assets• “Most primary health care interventions are highly cost-effective, costing less than US$100 per disability-adjusted life year (DALY) gained.”Source:Disease Control Priorities Project, 2007:
  16. 16. Appendix: Cost of ARV treatment• $295/person/year• ($295/person/year)(0.30 proportion HIV+)(5000 workers served/ center) = $442,500/center/year• ($295/person/year)(0.22 proportion HIV+)(5000 workers served/center) = $324,500/center/yearSource:
  17. 17. Appendix: Percent on ARVTreatment• A study based in two Durban clinics found most patients were tested at a late stage of infection with over 60 percent of CD4 counts below 200. Of these patients just 42 percent had begun treatment within 12 months.Source: Avert
  18. 18. Appendix: Are seals/certificationseffective?• According to the BBMG Conscious Consumer Report, 90% of Americans are more likely to buy from companies that manufacture energy efficient products, promote health and safety benefits (88%), support fair labor and trade practices (87%), and commit to environmentally-friendly practices (87%)• 82% of consumers still purchased green or environmentally friendly products and services in 2009—which sometimes cost more—even in the midst of the US recessionSources:BBMG Conscious Consumer Report Seal and EnviroMedia Social Marketing Report
  19. 19. Appendix: Key players who look forthe seal• Shareholder returns have always been one of the mostimportant business driving forces. More recently, some shareholder groups have also started showing an interest in socially responsible investment. This trend may influence future business dealings of companies as investors start to avoid companies with an unacceptable social and environmental record.• The mining and minerals sector is mainly financed by commercial banks with additional funding provided by international institutions such as the World Bank, International Finance Corporation and the regional development banks. Like shareholders, they are also increasingly becoming interested in ethical and socially responsible investment, screening companies on their environmental and social performance.• Insurers of companies in the mining and minerals sector will be interested in a good overall economic, environmental and social performance. They are particularly concerned about potential environmental liabilities related to mine closure and beyond, especially in countries following the ‘polluter pays’ principle.Source: Azapagic, Adiza. “Developing a framework for sustainable development indicators for themining and minerals industry.” Journal of Cleaner Production 12 (2004) 639–662.
  20. 20. Advertising CostsSource: South Africa’s Channel 24 News Outlet
  21. 21. Appendix: Acid Mine Drainage• Neutralization treatment will cost up to 5 Rand (less than $1 USD) per cubic meter (1,000 liters). More thorough treatments, like reverse osmosis or ion exchange, remove more heavy metals, but could cost up to 15 Rand (a little more than $2 USD) per cubic meter. If 350 million liters per day will require treatment, the costs add up. Pumping and managing the influx of water into the mines are expensive as well, especially if undertaken indefinitely.• By 2002, Harmony had transferred the mine to Rand Uranium, in which Harmony holds a 40 percent stake. Under South African law, the company was not required to have a mine closure plan in place, but a company that took over a mine, whether it was operational or not, was responsible for its environmental liability.• Even if responsible parties could be identified, Liefferink adds, a legacy of lax environmental regulation, especially under apartheid, makes it difficult to hold former mine owners financially responsible for damage caused by mine closure. “The new mining companies are like the last man standing,” she says. “They now have to carry the cost of 120 years of irresponsible mining; but the gold-mining industry is in decline and [these new mining companies] do not feel they can pay.”Source:
  22. 22. Appendix:Antrim Micro-hydro power project• The plant costs $3 million dollars a year to sustain itself, but the DEP projects it will make $10 million• In 2008, BCWA received a $428,710 DEP Energy Harvest Grant to install two hydroelectric turbines on the Antrim treatment plant discharge. In May, BioMost Inc. completed construction, which includes an impoundment that collects treated water from the plant; 1,000 feet of pipeline; and a power house with two 20-kilowatt turbines.• The Micro-hydro plant creates renewable energy with no air or water polution plant-begins-unique-operation.html?nav=5011
  23. 23. Appendix: Housing Regulations• April 2009 Department of Minerals and Energy’s Report on Housing and Living Conditions Standard, written as a supplement to the Mineral and Petroleum Act and 1996 Constitution: ‘Poor living conditions in single-sex hostels…has also contributed largely to the spread and provenance of HIV/AIDS and tuberculosis in South Africa’Source:
  24. 24. Appendix: Human Rights• It’s in the company’s best interest to promote human rights, because workers with adequate human rights supports and good working conditions are less likely to strike and optimize profits. A recent strike by Gold Fields resulted in the company losing ~4000 ounces of platinum per day.Source: Nov 6 Mail & Guardian,
  25. 25. Appendix:Budget Baseline
  26. 26. Appendix:Budget Sensitivity Test (1)
  27. 27. Appendix:Budget Sensitivity Test (2)