HERO for South Africa's Miners

Team 18 Emily Briskin

Christina Chandra Rachel Kubi

Jessica Lopez Teja Padma Karen Zhang

HERO

A partnership program to improve the Health, Environment, and Rights of South

African mining workers

Environment

HERO: the Model

Health

Human Rights

HERO Seal Awareness

Monetary Partnership

Corporations

Government

Community

HERO Seal: A Social Incentive

Build awareness and support for the HERO

Seal worldwide

Involve South Africans and their global allies

in advocacy and activism

HERO: Health

Problems

TB prevalence of up to 50% in miners Silicosis prevalence of up to 25% in miners HIV prevalence of up to 30% in miners Spread of illness when miners travel home

Strategies

Pool government and corporate funding to build healthcare centers Train community members to become nurses and community health-care workers Recognize companies that meet worker-health standards by certifying them with The HERO Seal and providing Cash on Delivery incentives for achieving key health outcomes such as: -10% yearly decrease in HIV incidence -80% of HIV+ workers on ARV treatment -20% yearly decrease in TB prevalence -95% of TB+ workers on DOTS therapy

Benefits

Healthier, happier workers Cash rewards and improved productivity Create new Job Opportunities Outcome-focus gives flexibility in methods used

HERO: Environment

Problems Acid Mine Drainage (AMD) from gold mines makes public water supply acidic

Strategies

Pilot a program that treats acid mine drainage and use treated drainage water to generate electricity Corporates can be self-sustained to run the program after the start year 10% of generated profits will be paid back to the government Corporations who meet environmental improvement standards will receive the HERO Seal

Benefits

Net monetary gain Reduce acidity in drinking water supply source Eliminate abandonment of mines Company image benefits from recognition with HERO Seal

HERO: Human Rights

Problems Lack of human rights awareness Low worker Satisfaction 277 mining deaths in 2008-2009 Men separated from their families

Strategies

Media and Advocacy campaign around the HERO Seal Create an online space under HERO where workers can submit complaints, which would be incorporated into new Samrad (South African Mineral Regulation Administration) online system Provide housing units for miners to live with wives and chidren

Benefits

Increase awareness and enhance corporate image Empower workers and improve transparency Decrease prostitution Wives can serve as community health 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

Environment

HERO: Conclusion

Health

Human Rights

Corporations

Government

Community

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_paper.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)