Implementing CORPORATE SOCIAL RESPONSIBILITY Policies & Practices

Transcription

1 Implementing CORPORATE SOCIAL RESPONSIBILITY Policies & Practices The Philex Mining Corporation Experience PERCEPTIONS ON MINING Environmentally Destructive Socially and Culturally Insensitive WALTER W. BROWN, Ph.D. Chairman and Chief Executive Officer Philex Mining Corporation Greedy Business Giants MINING INDUSTRY Mistrust Resistance Fear COMPANIES COMMUNITY Uncertainty viewed as OBLIGATED PROVIDERS Instead of PARTNERS FOR DEVELOPMENT ENVIRONMENTAL RESPONSIBILITY Sound Environmental Management Environmental Conservation / Wise Utilization of Natural Resources Progressive Rehabilitation COMMUNITY DEVELOPMENT Local Empowerment Economic Upliftment / Selfreliance Improvement of Basic Social Services Environmental, Social & Economic Progress of Partner Communities NATIONAL DEVELOPMENT Philex Mining Corporation s Environment & Community Development Program (ECDP) Designed to act as a medium and help facilitate a more appropriate fit of environmental conservation & community development. Promote and maintain the company s license to operate by building goodwill, trust & support from the communities Partnership Building Mission Statement: to continue to be socially responsible by supporting the communities where we operate while conserving and enhancing the environment... CORE STRATEGY for ENVIRONMENT AND COMMUNITY DEVELOPMENT Build willful Partnership with Host Communities Integrate Socio-Economic Interventions Wise Utilization of Community s Resources 1

2 ... Designing Development Programs to achieve Community & Business needs Local Government Units Philex Mining Corporation ENVIRONMENT and COMMUNITY DEVELOPMENT PROGRAM Coordination & Strengthening of Existing People s Organizations BUILDING & ESTABLISHING PARTNERSHIPS WITH COMMUNITIES Provision of Managerial & Financial Training / Assistance Income Generating Projects Formation of New People s Organizations COMMUNITY ORGANIZING PHASE First Phase COMMUNITY-BASED RESOURCE MANAGEMENT Second Phase Improvement of the Quality of Life Help make them Self-sufficient Members of the Community ENVIRONMENT and COMMUNITY DEVELOPMENT PROGRAM COMMUNITY ORGANIZING PHASE ENVIRONMENT and COMMUNITY DEVELOPMENT PROGRAM COMMUNITY-BASED RESOURCE MANAGEMENT ORGANIZATIONAL DEVELOPMENT Raising of Critical Awareness Community Empowerment ACTIVE & MEANINGFUL PARTICIPATION Collective Effort Consultation and Participative Planning SELF -RELIANCE Self-Management Financial Responsibilit Accountability ECONOMIC EVOLVEMENT Income Generating Projects Skills Training and Transfer Entrepreneurship IMPROVEMENT OF BASIC SOCIAL SERVICES Health Education Water System Etc. ENVIRONMENTAL CONSERVATION & REHABILITATION Terrestrial Ecosystem Aquatic Ecosystem Social Systems INCORPORATED 1955 PUBLICLY OWNED CORPORATION Philippine Stock Exchange listed OVER 50,000 OVER INDIVIDUALS AND INSTITUTIONS CURRENT OWNERS ECONOMIC CONTRIBUTION 2

3 2006 DIRECT and INDIRECT TAXES P190.1 M TOTAL:P P MILLION Direct Taxes Indirect Taxes TOTAL TAXES PAID (from 1956 to 2006) P 9.45 BILLION P58.3 M 2007 EXCISE TAX ALLOCATION 60 % National Gov t Excise Tax Paid for 2007 = P M P M P 17.1 M (20%) P 38.4 M (45%) P 29.9 M (35%) National Provincial Municipal Barangay 40 % LGUs Brgy. Camp 3 and Brgy. Ampucao Excise Tax paid ( ): P 1.08 B YEAR 2000 TUBA REALTY TAX COLLECTION CAMP 3 5,663, OTHER BARANGAYS 2,648, ACTUAL COLLECTION 8,311, PHILEX MINE WORKFORCE 2,145 Full Time Employees and 482 under contractors Total 3,366, ,477, ,883, ,476, ,262, ,885, ,015, Camp 3 51% 3,485, ,349, ,839, ,652, ,463, ,463, ,903, Other Barangays 49% 6,852, ,826, ,723, ,129, ,726, ,349, ,918, P /1/2008 P % higher than C.A.R. wage rate PHILEX C.A.R P % higher than N.C.R. wage rate P PHILEX N.C.R. 5/27/ /1/2008 PHILEX MINING CORPORATION PADCAL MINE COMMUNITY home to 14,000 people of diverse ethnic & cultural background with free basic amenities such as: Housing Education Recreation Electricity Health Care Transportation Water Places of Worship Telecommunication SOCIAL DEVELOPMENT and MANAGEMENT PROGRAM (SDMP) 3

4 ...Philex is pro-active in the field of Corporate Social Responsibility Dynamic and Responsive Community Development Program evolving for 50 years Social Development Program is anchored on Community Partnership Building Participatory Approach Active and Meaningful Participation Sharing of Resources, Capabilities, and Responsibilities Social Development and Management Program (SDMP) as mandated by the Philippine Mining Act of % of 1% of direct mining and milling costs to develop the host communities and make them self reliant even when the mine ceases operations Health Care Education Livelihood / Employment Public Infrastructure & others Health Care Programs & Medical Missions Medical & Dental Services Year No. of of Patients , , , , ,996 Annual operating cost = P 20 M Free Elementary Education 12,548 graduates P 14M annual operating cost 75% Subsidized High School Education P 9M annual operating cost 6,993 graduates Botika ng Masa Livelihood Programs & Associations Infrastructure Development Projects Philex Community Credit Cooperative Hog-raising Loom Weaving Company assistance in in terms of: of: ORGANIZATION FUND SOURCING TECHNICAL AND MANAGEMENT TRAINING Tailoring Philex-Kias Provincial Road Hanging bridges & Concrete pathways Farm-to- Market roads Cooperative buildings Schools Improvement 4

5 Irrigation and Water System Improvement SDMP Summary Total Health 394, , , , ,364 2,049,344 Education 1,233,677 1,268,616 1,635,082 2,580,204 2,766,203 9,483,783 Livelihood 537,329 1,005, ,538 1,421,296 1,613,751 5,435,532 Irrigation system for for vegetable and and fruit farmers and and Water system for for the the Community Public Infra Total 5,792,804 7,867,050 5,779,404 9,836,137 8,434,269 12,902,429 8,386,231 12,829,581 8,587,041 13,386,358 38,381,617 55,362,871 Health = P 2 M Education = P 9.5 M Public Infrastructure = P 38.4 M Livelihood = P 5.4 M ENVIRONMENTAL MANAGEMENT PROGRAM...Philex is pro-active in the field of environmental protection The first tailings pond was constructed in 1967 Community Based Reforestation was also started in the 60s as livelihood project Materials Recovery Facility was put up in 1998 even before RA 9003 (Ecological Solid Waste Management Act of 2001) ISO Certified even before DENR Adm. Order 14, Series 2003 (Self regulation toward Improved Environmental Performance) ISO Certified Environmental Management System Water Quality Management Certificate No.: CI/1097 Issued on September 10, 2002 Certificate No.: CI/1097 Issued on September 10, 2002 Water Quality Monitoring Sedimentation Control Tailings Pond 1 Tailings Pond 2 The first metal mining company in the Philippines with ISO Certification Dam Stability Monitoring 5

6 Tailing Impounding System & Stability Monitoring Tailings Pond 3 Constructed in Cost: P376 M before Rehabilitation of Tailings Pond Bamboo Research Plantation Operational in 1992 Impounding Capacity: million DMT Today Mini-Golf course Grazing area Rehabilitation of Tailings Pond 2 Tailing Ponds Stability Monitoring Tailing Ponds are continuously monitored... Tailings Pond 2 as Community Controlled Dumpsite by In-house and external Consultants and Multi-Partite Monitoring Team of MRF Committee Slope Stabilization & Erosion Control Vengineering a combination of vegetative and engineering measures used for erosion control and slope stabilization. Reforestation / Watershed Management Community Based Reforestation was also started in the 60s as livelihood project (even before The Man and Biosphere Program) Vegetative Measures: - Bench brush layering - Vegetative Mattings - Wattlings - Planting of trees along the slopes Engineered Measures: - Construction of silt traps and silt pond - Shotcreting along roads - Construction of retaining walls - Riprapping Plantation Established: 1,700 hectares 6 Million trees 90% survival rate Average Cost : P 4 Million per year 6

7 Air Quality & Noise Management Used Oil & Fuel Management Chemical & Hazardous Materials Management Solid Waste Management Air Quality Monitoring - Mill Area Chemical Storage Areas Oil - Water Separator Used Oil Containment Scrubber System at Assay Lab Total Environmental Expenses Environmental Expenses Mine and Milling Cost Percentage (%) M 2.75 B 4% Average Environmental Expenses: P 108M / year ( ) 2.3 B 39.6 B 6% The 1995 Mining Act (RA 7942) requires at least 3 to 5 percent of the mining and milling cost to be used for Environmental Expenses MAJOR AWARDS / CITATIONS CHAMPION Adopt-a-Mountain, Adopt-a-Mining Forest Program of DENR-MGB 1991, 1994, , 2004 and 2007 Most Outstanding Firms with Family Welfare Programs 1994: Hall of Fame (1992, 1993 & 1994) 1998 as winner again Citation from DOLE 1998 Platinum Award Environmental Protection and Community Relations Citation from DENR & PMSEA Philex : The Child Friendly Firm Year 2000: 2-Star; Year 2001:3 Star EMPLOYERS CONFEDERATION OF THE PHILIPPINES (ECOP) ENVIRONMENT and COMMUNITY DEVELOPMENT PROGRAM Brgy. Camp 3: 1995 UN Awardee 1998 Model Barangay in CAR CORPORATE SOCIAL RESPONSIBILITY Adopt-a-Mountain, Adopta-Mining Forest Champion for for 2007 DENR-MGB CAMARADERIE TRUST COOPERATION PARTNERSHIPS 7

8 ...believes that it is the community s basic right to participate in activities that will directly affect their lives. BUILD COMMUNITY PARTNERSHIPS COMMUNITIES Should not be viewed as mere project beneficiaries but as... PARTNERS FOR DEVELOPMENT 8