Messages

Message from the chairman of the board

ÓSCAR LANDERRETCHE MORENO

In 2016, Codelco stood out for its great achievements in the face of adverse conditions. Three variables of the mining business, over which we have no control, showed a deterioration that negatively affected our results: copper prices, whose average was down by 11% on 2015; exchange rate differences whose effect on our liabilities in Chilean pesos was extremely negative; and our ore head grade which dropped by almost 7% on the previous year.

These adverse conditions affected all the copper industry but, at Codelco, we were able to offset their impact by improving our performance on those variables which we do control. In 2016, we exceeded our production targets and achieved direct costs that were below the average for private mining companies. In turn, these two results of sound management enabled us to exceed the savings target agreed upon with the state, generating profits that were higher than budgeted by the Finance Ministry and surpassed all expectations at the beginning of the year.

Message from the Chief Executive Officer

NELSON PIZARRO CONTADOR

For all us who work at Codelco, 2016 was one of the most complex years in our history. It will be remembered as a year of great achievements in the midst of adversity.
I would like to begin by noting that it was not, unfortunately, the year in which we were able to eliminate fatal accidents at our mines. It was a painful year during which we lost four colleagues. This obliged us to continue striving to ensure that all our employees fully comply with our strict safety and occupational health standards.

In 2016, our global frequency rate (including direct and contractors’ employees) was up by 3.3% on the previous year.