Our company
(2.1/2.6/4.8)
2.1 Name of the organization..
2.6 Nature of ownership and legal form.
4.8 Internally developed statements of mission or values, codes of conduct, and principles
relevant to economic, environmental, and social performance and the status of their
implementation.
The National Copper Corporation of Chile is a mining,
industrial, and commercial company belonging to the State of
Chile, whose mission is to deploy all its mining related business
capacity in Chile and the world and maximize its long-term economic
value and its contribution to the State.
(2.2) Primary brands, products and/or services. Our main product is refined copper in the form of cathodes with 99.99% purity. In addition, we produce copper concentrates, blister copper, copper anodes, and fire refined ingots, as well as byproducts such as molybdenum concentrate and molybdenum oxide, anode slimes and sulphuric acid.
(2.3/2.4)
2.3 Operational Structure of the organization, including main divisions, operating companies,
subsidiaries and joint ventures.
2.4 Location of the organization’s headquarters.
Codelco’s Corporate Offices are located in the city of Santiago.
Additionally, it has seven divisions, organized during 2011
into two Vice presidencies: Chuquicamata, Radomiro Tomic, Ministro
Hales and Salvador, under the Vice Presidency of Northern
Operations; Andina, Ventanas, and El Teniente, under the Vice
presidency of Central and Southern Operations. In addition, we
can highlight our subsidiaries Minera Gaby SpA, Mejillones Port
Complex (both 99.9% owned by Codelco) and Minera el Abra (49%
owned by Codelco), all of which are located in the II Region of
Antofagasta.
(2.6/4.10)
2.6 Nature of ownership and legal form.
4.10 Processes for evaluating the highest governance body’s own performance, particularly
with respect to economic, environmental, and social performance.
The Company was created on April 1st 1976 under Law 1,350,
and it is registered with the Securities Registry of the National
Securities and Insurance Supervisor as an issuer of public bonds.
Therefore, it is required to provide the National Securities and Insurance
Supervisor and the general public with the same information
publicly traded corporations are bound to disclose, with the
periodicity, publicity and form required of them. In addition, the
company is overseen by the Comptroller General of the Republic
and the Chilean Copper Commission (Cochilco) within the scope
stipulated in laws 1,349 and 1,350.
Significant changes in 2011
(2.9) Scale of the Organization, including: number of employees, net sales, total capitalization and quantity of products or services rendered. One of the significant changes in the organization during 2011 was the creation of the Ministro Hales Division, which is currently in the prestripping phase (earth removal) and will begin operations in 2013. In addition, the Chuquicamata and Radomiro Tomic divisions, created in late 2010 and formerly part of the Northern division of Codelco, operated independently.
CORPORATE GOVERNANCE
(4.1/4.2/4.3/4.4/4.7)
4.1 Governance structure of the organization, including committees under the highest governance
body responsible for specific tasks, such as setting strategy or organizational oversight.
4.2 Indicate whether the Chair of the highest governance body is also an executive officer.
4.3 For organizations that have a unitary board structure, state the number of members of the
highest governance body that are independent and/or non-executive members.
4.4 Mechanisms for shareholders and employees to communicate recommendations or directionto
the highest governance body.
4.7 Process for determining the qualifications and expertise of the members of the
highest governance body for guiding the organization’s strategy on economic, environmentaland
social topics.
The Board of Directors comprises nine members.
Three of them are appointed directly by the President of Chile,
four are nominated by the Senior Public Management Council,
one by the Federation of Copper Workers, and one jointly by the
Federation of Copper Supervisors and National Association of
Copper Supervisors. There are no directors in management positions
within the company.
Our corporate governance is bound by Law 20,392, which defines the functions of the Board of Directors, the Chief Executive Officer and the company’s top management, as well as their powers and incompatibilities. The directors serve for four years and can be named for a new period or removed, if they incurred in incompatibilities or noncompliance with the law.
The Board appoints the Corporation’s Chief Executive Officer, who is responsible for the management and strategic steering of the company. The Chief Executive Officer, in turn, appoints the vice-presidents and general managers for each division, who are directly responsible for corporate management in their respective operational areas.
(1.2 / 4.9)
1.2 Key impacts, risks and opportunities.
4.9Procedures of the highest governance body for overseeing the organization’s identificationand
management, of economic, environmental, and social performance, including relevant
risks and opportunities, and adherence or compliance with internationally agreed standards,
codes of conduct, and principles.
The fundamental mission of the Board is the government
and administration of the Corporation to protect and enhance
net worth in the long term, maximizing the contribution of
surplus to the State of Chile. One of them, the Committee for
Corporate Governance and Sustainability, comprises four directors,
and its function is to establish our sustainability goals and
policies, as well as to monitor the effectiveness of the systems
regarding health, safety, the environment, and society. This
committee meets once a month to discuss the matters within its
competence.
At an executive level, lodged within the Corporation’s top management, is the General Management of Corporate Affairs and Sustainability, whose objective is to lead the Corporation in environmental, community management, and occupational safety and health issues.
(2.10)
Awards received in the reporting period.
Codelco obtains first place in corporate
reputation among the companies
of the mining sector, as per the study
Corporate Reputation Business Monitor
(MERCO), carried out by El Mercurio.
Corporate governance
top management and organization of the general management of corporate affairs and sustainability
