Message from the Chief Executive Officer
I’m pleased to introduce the Codelco Sustainability Report, with which we fulfill our commitment to transparency, based on consultations to stakeholders and meeting the highest standards of accountability in these areas.
The information in this report was verified by Ernst & Young. We once again achieved an A+ rating from the Global Reporting Initiative (GRI), due to our incorporation of its principles and giving out information regarding issues relevant to society in compliance with their 2011 G3.1 guide and its 2010 mining and metals supplement.
For Codelco, sustainability is one of the strategic focal points of its management, being one of the subjects developed in our Value Statement, which is present in every project as well as our work sites.
One of the most important aspects for the Corporation is that we have decided to renew our outlook on sustainability, transforming this area through two major processes that allow us to become more efficient and responsible with our surrounding communities, the environment, and the workers of the country as a whole. Through this, we intend to maintain our production goals and continue to comply with the highest standards of quality, always improving our contribution to the State of Chile and consolidating our first place as the world’s greatest copper producer.
The first of these processes is related to the creation of a new Sustainable Development Policy which sets out the commitments made by Codelco in occupational safety and health, clean production, community development, compliance with applicable legislation, implementation of corporate standards, social responsibility, and effective and transparent management. The second is the implementation of structural projects for Occupational Health and Safety and Environment and Communities, on which the company’s future depends and which considers specific goals for the coming years.
Within the framework of the Occupational Health and Safety project, our priority is to attain the goal of zero fatalities and continue reducing the rate of accidents and occupational diseases. In the Environment and Communities project, we intend to overcome our pending socioeconomic gaps and vulnerabilities, and apply the 11 standards we have designed for our management’s most relevant issues.
When we draw a balance of 2011, we can say that it was a good year for Codelco, with important achievements in production. However, we also faced important difficulties and conflicts:
- First of all, we had to mourn four fatal accidents in the Chuquicamata, El Teniente, and Andina divisions. We categorically bolstered our fundamental commitment to the life, health and safety of our workers.
- On March 23rd, a social and environmental episode presented itself with our neighbors of La Greda. As a company concerned about the welfare of our surrounding communities, we have worked jointly with the neighbour of La Greda in search for solutions that will help to improve their quality of life. In addition, we participated in the Cleaner Production Agreement, along with government entities and other companies in the area. As Codelco itself, we have carried out an intensive investment plan to improve our environmental performance in the operation of the Ventanas Division smelter.
- During the third quarter, we faced a conflict with British mining company Anglo American due to the purchase of the Los Bronces mine, formerly Disputada de las Condes. The conflict began when Codelco, having announced in due course the acquisition option of 49% of Anglo American Sur S.A., which has been Codelco’s right since 1978, was violated when Anglo American sold part of these shares to another company, thereby decreasing the Corporation’s right of acquisition. Codelco remained open to dialogue, maintainng its position of purchasing the aforementioned 49%, but this stance was not fruitful and the case was taken to courts in November. We strongly believe that we have a duty to defend our interests, which are the interests of all Chilean people. We are convinced that we are right and that we will, eventually, enforce our lawful right.
Despite these difficulties, we reached a historic record in production, with costs lower than budgeted, and one of the highest surplus levels in history. Other aspects of our management are also noteworthy:
- We re-entered the International Council on Mining and Metals, ICMM, which positions our company as a leader in sustainability and production standards.
- We were the first company in Chile to publish our environmental commitments in the National environmental Commitment Registry, created by the Environmental Superintendency.
- We achieved significant wastewater reductions.
- We maintained our water and power usage efficiency, despite the increase in copper production. Within this context, we increased our water recirculation percentage and carried out a monthly monitoring of the intensity levels of our electric energy and fuel consumption.
- We have fostered the establishment of the Calama Plus consortium so as to contribute to the participatory design of a city that currently faces severe difficulties.
- We ran numerous community development and investment projects in partnership with social organizations and public and private institutions surrounding operations.
Our goal is to be the best in the industry, in Chile and the world, and do this in a responsible, efficient and sustainable manner. Therefore, we need the commitment of our employees and partners, to continue to be the pride of all Chileans.
I invite you now to get to know our 2011 Sustainability Report, and give us your opinion.
Diego Hernández C.
Chief Executive Officer