GineersNow Engineering Magazine November 2016 Issue No 009
GineersNow Engineering Magazine November 2016 Issue No 009 Caterpillar Inc: A look at the company's social impact. Exclusive interview with Jean Savace, Vice President and Chief Technology Officer of Caterpillar Inc. Exclusive: Mining industry, social good, philanthropy, CSR, social impact, social innovation. Special Feature Stories: HVACR, Oil & Gas, Construction, Heavy Equipment, Machinery, Tools, Civil Engineering, Mechanical, Electrical, Plumbing, MEP, Water, Wastewater, Renewables, Energy, Petroleum, Heavy Equipment, Rental Equipment, Contractors, EPC. Country Focus: United States, Canada, United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Kuwait, Oman, United Kingdom, Singapore, Hong Kong, Philippines, Malaysia, Indonesia, India, Australia More engineering stories at https://www.gineersnow.com/topics/magazines
GineersNow Engineering Magazine November 2016 Issue No 009
Caterpillar Inc: A look at the company's social impact. Exclusive interview with Jean Savace, Vice President and Chief Technology Officer of Caterpillar Inc.
Exclusive: Mining industry, social good, philanthropy, CSR, social impact, social innovation.
Special Feature Stories: HVACR, Oil & Gas, Construction, Heavy Equipment, Machinery, Tools, Civil Engineering, Mechanical, Electrical, Plumbing, MEP, Water, Wastewater, Renewables, Energy, Petroleum, Heavy Equipment, Rental Equipment, Contractors, EPC.
Country Focus: United States, Canada, United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Kuwait, Oman, United Kingdom, Singapore, Hong Kong, Philippines, Malaysia, Indonesia, India, Australia
More engineering stories at https://www.gineersnow.com/topics/magazines
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Vizcaya National High School.<br />
With its exemplary efforts<br />
to implement development<br />
programs for the community and<br />
environment, OGPI received a<br />
gold award for best workplace<br />
practice at the 7th Annual Global<br />
CSR Summit and Awards held in<br />
Yogyakarta, Indonesia.<br />
RTNMC, a nickel ore mine in<br />
Palawan, implements community<br />
initiatives to modernize health<br />
centers, eradicate malnutrition<br />
and decrease infant and<br />
maternal mortality rate. The<br />
mine also regularly conducts<br />
sanitation and health awareness<br />
campaigns, and medical missions.<br />
The company allotted funds for<br />
its Indigents and Indigenous<br />
Peoples’ hospitalization program,<br />
giving 45,944 individuals free<br />
hospitalization and treatment at<br />
the company’s hospital; Other<br />
social projects include coffee<br />
farming projects that provide<br />
a stable source of income for<br />
farmer-members from eight<br />
impact barangays, financial<br />
assistance to improve school<br />
facilities, and provision of<br />
education-related materials.<br />
RTNMC restores mined-out areas<br />
as close as possible to its premining<br />
condition or develop<br />
them for other uses, where<br />
the surrounding communities<br />
will benefit. Because of these<br />
initiatives, RTNMC was awarded<br />
the Presidential Mineral<br />
Industry Environmental Award<br />
for environmental excellence in<br />
2015.<br />
SMMCI, a pre-operating mine in<br />
Surigao del <strong>No</strong>rte, administers its<br />
community assistance program<br />
by involving the impacted<br />
communities in activities that<br />
enhance quality of life, imparting<br />
them with entrepreneurial skills,<br />
providing seed capital in smallscale<br />
livelihood projects, and<br />
creating organizational forums<br />
to inform people about the<br />
positive and negative effects<br />
of the mining project. Narcita<br />
Ajoc, a member of a People's<br />
Organization in the province and<br />
one of the beneficiaries of the<br />
program said, "SMMCI provided<br />
us with financial literacy,<br />
bookkeeping, entrepreneurship<br />
and leadership training." In 2015,<br />
SMMCI selected and funded 11<br />
academic researches, sponsored<br />
80 out-of-school youths in their<br />
Technical-Vocational training,<br />
and built eight school buildings<br />
benefiting 4000 students in the<br />
province. SMMCI also donated<br />
dormitory buildings, medical<br />
equipment and ambulance to<br />
the communities, while at the<br />
same time improving their water<br />
systems. Among the recognitions<br />
and awards SMMCI received<br />
are the Safest Mine Award<br />
(Exploration Category) and First<br />
Runner Up for Best Mining Forest<br />
(Exploration Category) for its<br />
reforestation efforts.<br />
According to the Philippine Mines<br />
and Geosciences Bureau, as of<br />
January 2015, mining companies<br />
in the country have committed<br />
a total of around $130 million<br />
for social and community<br />
projects, which will benefit 711<br />
barangays. And around $660<br />
million have been committed<br />
for environmental management<br />
and rehabilitation programs. 95<br />
companies participated in the<br />
government's Mining Forest<br />
Program, successfully planting<br />
around 21 million trees over<br />
20,000 hectares to date.<br />
Responsible mining also exists in<br />
other parts of the world. Sullivan<br />
Mine, located in <strong>No</strong>rthwest<br />
Canada, developed a ski hill<br />
and provided low-cost land for<br />
a golf course, which were later<br />
bought by the local government<br />
after mine closure. The previous<br />
mining area then became a yearround<br />
resort, attracting major<br />
investments. Another is a bauxite<br />
mine, Alcoa of Australia Ltd, which<br />
was listed for fifteen consecutive<br />
years on the UN Global 500<br />
Roll of Honor for Environmental<br />
Achievement for its rehabilitation<br />
works on the Darling Plateau. Its<br />
rehabilitation works averages to<br />
600 hectares yearly, and involves<br />
best practices for landscaping,<br />
pre-ripping, soil return, fauna<br />
habitat return, final contour<br />
ripping and seeding, recalcitrant<br />
planting, fertilizing, ongoing<br />
monitoring, and management<br />
of rehabilitated area. Finally,<br />
BHP Billiton launched in its<br />
Science and<br />
Technology also advances<br />
through mining<br />
Mozambique operations in 2014<br />
the Leadership Enhancement<br />
and Development (LEAD) Project,<br />
pledging $8.8 million over five<br />
years to the new agricultural<br />
initiative to benefit farmers from<br />
three districts in the area. The<br />
project aims to work with more<br />
than 50 producer organizations<br />
that represent farms to<br />
increase their income and<br />
business opportunities, improve<br />
production capacity through<br />
farm-level training and provision<br />
of facilities, access to financing,<br />
BHP's project is expected to<br />
directly benefit 6,500 households<br />
in the area. To date, around 30<br />
farmer field schools have already<br />
been established.<br />
Responsible mining, defined as<br />
mining that utilizes best practices<br />
in community development and<br />
environmental management and<br />
rehabilitation exists.<br />
Some governments are now<br />
acknowledging their role in<br />
enforcing responsible mining<br />
in their countries by ratifying<br />
and implementing laws that<br />
require companies to allocate<br />
funds for social development,<br />
environmental management,<br />
and environmental rehabilitation.<br />
In the Philippines, the Philippine<br />
Mining Act of 1995 requires that<br />
companies implement social<br />
development, environmental<br />
management, and rehabilitation<br />
programs as applicable during<br />
the exploration, development,<br />
production, and closure stages.<br />
During the development stage,<br />
mines are required to allocate<br />
10% of its total cost for<br />
environmental management<br />
programs. Mines in the<br />
production stage must allocate<br />
1.5% of their total operating<br />
cost for social development<br />
programs as well as 3% of their<br />
mining and ore processing cost<br />
for environmental programs.<br />
Governments should be partners<br />
in making responsible mining<br />
a reality, through the laws that<br />
they pass and implement.<br />
Mining provides jobs that<br />
improve the economies and<br />
quality of life in the nearby<br />
communities. According to the<br />
Mines and Geosciences Bureau<br />
of the Philippines, around<br />
235,000 workers are employed<br />
in the minerals industry in the<br />
country. With a multiplier effect<br />
of 4, which means that for every<br />
job generated four more jobs are<br />
indirectly created in the upstream<br />
and downstream sectors, roughly<br />
940,000 jobs are indirectly<br />
generated by the mining industry.<br />
A research paper published in<br />
2014 examined employments<br />
generated by mines in three other<br />
countries, namely Escondida<br />
Mine in Chile, Tenge Fungurume<br />
Mine in Katanga, Democratic<br />
Republic of Congo, and various<br />
mines in Zambia. The study<br />
found that 2810 workers were<br />
directly employed in Escondida<br />
Mine in 2003. And around 11,500<br />
jobs were indirectly created by<br />
the mine. In 2012, the Tenge<br />
Fungurume Mine in Katanga,<br />
Democratic Republic of Congo,<br />
directly created 6,600 jobs and<br />
indirectly created 10,500 more<br />
jobs. In <strong>No</strong>rthwestern Province,<br />
Zambia, mining companies<br />
created around 18,000 direct<br />
jobs and 26,000 indirect jobs.<br />
Thousands of jobs generated<br />
directly and indirectly due to<br />
large scale mining operations<br />
can contribute to poverty<br />
reduction. The paper concluded<br />
that "the transformation of a<br />
subsistence economy into one<br />
that is at least partly monetary<br />
also creates the conditions for<br />
NOVEMBER <strong>2016</strong><br />
Mining <strong>Engineering</strong> and Its Importance<br />
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