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HERO for South
 Africa's Miners
               Team 18
    Emily Briskin     Jessica Lopez
  Christina Chandra    Teja Padma
    Rachel Kubi
                       Karen Zhang
HERO



 A partnership program to improve the
Health, Environment, and Rights of South
          African mining workers
HERO: the Model


Corporations                   Health
                Monetary
               Partnership

 Government                   Environment
                  HERO Seal
                  Awareness
   Community                  Human Rights
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
HERO: Health
    Problems                       Strategies                        Benefits
TB prevalence of     Pool government and corporate funding to
up to 50% in         build healthcare centers                   Healthier, happier
miners                                                          workers
                    Train community members to become
Silicosis           nurses and community health-care workers Cash rewards and
prevalence of up to                                          improved
                    Recognize companies that meet worker-    productivity
25% in miners
                    health standards by certifying them with
                    The HERO Seal and providing Cash on      Create new Job
HIV prevalence of
                    Delivery incentives for achieving key    Opportunities
up to 30% in        health outcomes such as:
miners
                                                             Outcome-focus
                    -10% yearly decrease in HIV incidence    gives flexibility in
Spread of illness   -80% of HIV+ workers on ARV treatment    methods used
when miners travel -20% yearly decrease in TB prevalence
home                -95% of TB+ workers on DOTS therapy
HERO: Environment
   Problems                      Strategies                      Benefits

                  Pilot a program that treats acid mine      Net monetary gain
                  drainage and use treated drainage water to
Acid Mine         generate electricity                       Reduce acidity in
                                                             drinking water
Drainage (AMD)
                  Corporates can be self-sustained to run    supply source
from gold mines   the program after the start year
makes public                                                 Eliminate
water supply      10% of generated profits will be paid back abandonment of
acidic            to the government                          mines

                  Corporations who meet environmental       Company image
                  improvement standards will receive the    benefits from
                  HERO Seal                                 recognition with
                                                            HERO Seal
HERO: Human Rights
    Problems                         Strategies                       Benefits
                                                                 Increase awareness
Lack of human         Media and Advocacy campaign around the     and enhance
rights awareness      HERO Seal                                  corporate image
                      Create an online space under HERO          Empower workers
Low worker
                      where workers can submit complaints,       and improve
Satisfaction          which would be incorporated into new       transparency
                      Samrad (South African Mineral Regulation
277 mining            Administration) online system              Decrease
deaths in 2008-                                                  prostitution
2009                  Provide housing units for miners to live
                      with wives and chidren                     Wives can serve as
Men separated                                                    community health
from their families                                              workers
HERO: Limitations

Mining Companies might not want to accept the
program: we combat this using monetary incentives
and the HERO Seal

Current laws are not well enforced, our policies fill in
these gaps, but the current laws remain weak

What about smaller mining companies: we are
addressing the biggest corporations first to reach the
greatest number of workers for our initial investment
HERO: Budget
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
HERO: Conclusion


Corporations          Health


 Government          Environment


   Community         Human Rights
Appendix: Why Invest in the Mining
Sector?

•   "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 Africa's 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)
Appendix: Why train nurses and
community 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; http://opinionator.blogs.nytimes.com/2011/02/14/villages-without-
    doctors/ )
Appendix: Cost Effectiveness of TB
    Treatments
Example: China implementing WHO recommended DOTS
Impact:
    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
  http://www.cgdev.org/section/initiatives/_archive/millionssaved/studies/case_3
Appendix: How Cost-Effective are
primary 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:
   http://www.dcp2.org/file/77/DCPP_PrimaryHealthCare.pdf
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/year


Source:
http://www.avert.org/generic.htm
Appendix: Percent on ARV
Treatment



•   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
         http://www.avert.org/aidssouthafrica.htm
Appendix: Are seals/certifications
effective?
•   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 recession

Sources:
BBMG Conscious Consumer Report
           http://www.fmi.org/docs/sustainability/bbmg_conscious_consumer_white_pape
r.pdf?sfvrsn=2

Green Seal and EnviroMedia Social Marketing Report
http://www.environmentalleader.com/2009/02/05/82-percent-of-consumers-buy-green-
despite-economy/
Appendix: Key players who look for
the 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 the
mining and minerals industry.” Journal of Cleaner Production 12 (2004) 639–662.
Advertising Costs




Source: South Africa’s Channel 24 News Outlet
        http://www.thespacestation.co.za/channel/news24/
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:http://www.earthmagazine.org/article/all-glitters-acid-mine-drainage-toxic-legacy-gold-mining-south-
africa
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
           http://www.biomost.com/pub/Antrim/Antrim%20Press%20Article%2008.pdf


•   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.
           http://pa-erg.com/2012/07/19/pennsylvania-plant-using-treated-mine-water-to-generate-power/



•   The Micro-hydro plant creates renewable energy with no air or water
    polution
     http://www.sungazette.com/page/content.detail/id/580913/State-DEP-secretary-on-hand-as-Antrim-micro-hydro-
     plant-begins-unique-operation.html?nav=5011
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:
http://www.bullion.org.za/Departments/Legal/Downloads/2010/gg32166_nn445.
pdf
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, http://mg.co.za/article/2012-11-06-work-at-
gold-fields-resume-but-mine-strikes-not-over-yet
Appendix:
Budget Baseline
Appendix:
Budget Sensitivity Test (1)
Appendix:
Budget Sensitivity Test (2)

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Team 18 presentation

  • 1. HERO for South Africa's Miners Team 18 Emily Briskin Jessica Lopez Christina Chandra Teja Padma Rachel Kubi Karen Zhang
  • 2. HERO A partnership program to improve the Health, Environment, and Rights of South African mining workers
  • 3. HERO: the Model Corporations Health Monetary Partnership Government Environment HERO Seal Awareness Community Human Rights
  • 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. HERO: Health Problems Strategies Benefits TB prevalence of Pool government and corporate funding to up to 50% in build healthcare centers Healthier, happier miners workers Train community members to become Silicosis nurses and community health-care workers Cash rewards and prevalence of up to improved Recognize companies that meet worker- productivity 25% in miners health standards by certifying them with The HERO Seal and providing Cash on Create new Job HIV prevalence of Delivery incentives for achieving key Opportunities up to 30% in health outcomes such as: miners Outcome-focus -10% yearly decrease in HIV incidence gives flexibility in Spread of illness -80% of HIV+ workers on ARV treatment methods used when miners travel -20% yearly decrease in TB prevalence home -95% of TB+ workers on DOTS therapy
  • 6. HERO: Environment Problems Strategies Benefits Pilot a program that treats acid mine Net monetary gain drainage and use treated drainage water to Acid Mine generate electricity Reduce acidity in drinking water Drainage (AMD) Corporates can be self-sustained to run supply source from gold mines the program after the start year makes public Eliminate water supply 10% of generated profits will be paid back abandonment of acidic to the government mines Corporations who meet environmental Company image improvement standards will receive the benefits from HERO Seal recognition with HERO Seal
  • 7. HERO: Human Rights Problems Strategies Benefits Increase awareness Lack of human Media and Advocacy campaign around the and enhance rights awareness HERO Seal corporate image Create an online space under HERO Empower workers Low worker where workers can submit complaints, and improve Satisfaction which would be incorporated into new transparency Samrad (South African Mineral Regulation 277 mining Administration) online system Decrease deaths in 2008- prostitution 2009 Provide housing units for miners to live with wives and chidren Wives can serve as Men separated community health from their families workers
  • 8. HERO: Limitations Mining Companies might not want to accept the program: we combat this using monetary incentives and the HERO Seal Current laws are not well enforced, our policies fill in these gaps, but the current laws remain weak What about smaller mining companies: we are addressing the biggest corporations first to reach the greatest number of workers for our initial investment
  • 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. HERO: Conclusion Corporations Health Government Environment Community Human Rights
  • 12. Appendix: Why Invest in the Mining Sector? • "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 Africa's 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. Appendix: Why train nurses and community 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; http://opinionator.blogs.nytimes.com/2011/02/14/villages-without- doctors/ )
  • 14. Appendix: Cost Effectiveness of TB Treatments Example: China implementing WHO recommended DOTS Impact: 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 http://www.cgdev.org/section/initiatives/_archive/millionssaved/studies/case_3
  • 15. Appendix: How Cost-Effective are primary 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: http://www.dcp2.org/file/77/DCPP_PrimaryHealthCare.pdf
  • 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/year Source: http://www.avert.org/generic.htm
  • 17. Appendix: Percent on ARV Treatment • 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 http://www.avert.org/aidssouthafrica.htm
  • 18. Appendix: Are seals/certifications effective? • 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 recession Sources: BBMG Conscious Consumer Report http://www.fmi.org/docs/sustainability/bbmg_conscious_consumer_white_pape r.pdf?sfvrsn=2 Green Seal and EnviroMedia Social Marketing Report http://www.environmentalleader.com/2009/02/05/82-percent-of-consumers-buy-green- despite-economy/
  • 19. Appendix: Key players who look for the 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 the mining and minerals industry.” Journal of Cleaner Production 12 (2004) 639–662.
  • 20. Advertising Costs Source: South Africa’s Channel 24 News Outlet http://www.thespacestation.co.za/channel/news24/
  • 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:http://www.earthmagazine.org/article/all-glitters-acid-mine-drainage-toxic-legacy-gold-mining-south- africa
  • 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 http://www.biomost.com/pub/Antrim/Antrim%20Press%20Article%2008.pdf • 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. http://pa-erg.com/2012/07/19/pennsylvania-plant-using-treated-mine-water-to-generate-power/ • The Micro-hydro plant creates renewable energy with no air or water polution http://www.sungazette.com/page/content.detail/id/580913/State-DEP-secretary-on-hand-as-Antrim-micro-hydro- plant-begins-unique-operation.html?nav=5011
  • 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: http://www.bullion.org.za/Departments/Legal/Downloads/2010/gg32166_nn445. pdf
  • 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, http://mg.co.za/article/2012-11-06-work-at- gold-fields-resume-but-mine-strikes-not-over-yet