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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 />

19

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