Mosaic Potash Business Case
Studies indicate the off-the-job injury rate in our province is twice that of workplace injuries.
At the beginning of the 2006/07 fiscal year Mosaic Potash decided to see for itself how much off-the-job injuries were costing their company. When Mosaic’s initial internal findings were presented to senior leaders of the corporation, the volume of off-the-job injuries clearly identified a problem that was costing Mosaic millions of dollars.
The extent of off-the-job injuries (including sickness days) was the equivalent of having a mine with 100 employees working for a year but producing nothing.
Mosaic decided to become part of the solution and this included off-the-job injury prevention. For Mosaic, the investment in injury prevention made quantifiable business sense.
Mosaic's newest safety program results
Approximate 2006-07 Potash Business Unit (PBU) ($75,000)
Q1 & Q2 Investment in Health/Wellness
PBU Q1 & Q2 Direct and Indirect Savings $482,500
Internal Rate of Return (IRR) 543%
Net Present Value (NPV) of Investment using $273,267
WACC of 11.8%*
*The Mosaic Company hurdle rate for justifying new captial investments is currently set at a WACC (or IRR) of 11.8%.
To view the entire Business Case on Injury Prevention presentation click here.
Are you interested in finding out how you can start an off-the-job injury awareness program like Mosaic? Contact Gord Moker for more information.