Sustainability Report 2017 SUSTAINABILITY REPORT
2017
STANDARD AND LEVEL OF COMPLIANCE
This report has been drafted according to the core option of the Global Reporting Initiative (GRI) standards.
CONSOLIDATION
Cerrejón’s Corporate Affairs and Communications Division
EXTERNAL CONSULTANCY
PwC
EXTERNAL INDEPENDENT VERIFICATION
DELOITTE
DESIGN
TRiiBU Estudio
For more information about our sustainable management, please contact:
https://www.cerrejon.com/index.php/desarrollo-sostenible/?lang=en CERREJÓN sustainability report 2017 02 ― 03
1 | Who 2 | About we are this report Who we are
03Our Operations 12On the drafting in La Guajira...... 04 of this report...... 13 Coal Production Materiality Analysis...... 14 Process ...... 06 Alignment with Message from Sustainable Development the CEO ...... 08 Goals (SDGs) ...... 18 1 3 | Engagement, 4 | Employment, diversity
Contents ethics and risks and supply chain
20Engagement with Fairness36 and Equal stakeholders...... 21 Opportunity ...... 42 Ethics and Good Safe and Healthy Work Governance ...... 21 Environment...... 45 Risk management...... 27 Training and Well-Being .....50 Management of Impacts on Engagement with Human Rights ...... 29 Trade Unions ...... 53 Supply Chain ...... 53 5 | Management of 6 | Socio-economic 7 | Preparation for environmental impacts strategy mine closure
Water56 in Mining Activity...... 58 80Social Intervention...... 82 94 Dust Suppression Strategic Projects...... 86 in the Operations...... 64 Cerrejón Foundation: A Biodiversity protection Year of Transition and Independent review and preservation...... 68 Integration...... 88 memorandum Three decades of Resettlements ...... 89 land restoration...... 76 98 CERREJÓN INFORMEsustainability DE SOSTENIBILIDAD report 2017 0406 ― 0507
Our La Guajira Capital: Riohacha The indigenous communities Operations in INDIGENOUS POPULATION are concentrated on RURAL POPULATION URBAN POPULATION Number of municipalities: 15 the northern side of the municipality of Uribia and The department is characterized on the municipalities of La Guajira by mining due to the exploitation of Manaure and Maicao. The natural resources such as salt, gas rancherías (where indigenous 75% and coal. Mine and quarry activities communities live) are 45% 55% represent 44% of the total GDP homogeneously distributed in 25% the Alta Guajira. (DANE) ur integrated operation +40% POPULATION Multi-ethnic population: involves the explora- 2017 Wayuu, Koguis, Wiwa, LA GUAJIRA LA GUAJIRA tion, extraction and Arhuacos Kankuamos, Zenus, COLOMBIA COLOMBIA O 1,012,926 inhabitants Ingas, mestizos, blancos, transportation of coal, Source: Cámara de Comercio de La Guajira afrodescendientes y árabes. Source : DANE Source: DANE after which it is loaded on ships and exported. The operations comprise a MINE AND QUARRY ACTIVITIES MINE AND QUARRY ACTIVITIES LAND AREA: BAHÍA PORTETE - KAURRELE PUNTA GALLINAS mine producing approximately 30 IN NATIONAL GDP 2017 IN LA GUAJIRA GDP (2017) 2,084,800 hectares NATIONAL NATURAL PARK NAZARETH million tonnes of coal per year, a 150 2% 44% N km-long railroad and a port in the LA GUAJIRA MACUIRA NATIONAL NATURAL PARK Alta Guajira, where our product is COLOMBIA O E CABO DE LA VELA PUERTO BOLÍVAR shipped to diverse international des- BAHÍA PORTETE tinations using a direct-loading S system. SOUTH AMERICA 150 KM RAILWAY MANAURE URIBIA PUERTO LÓPEZ
VISION
To be the leading coal producer and RIOHACHA exporter globally, and to be a key Source: Asociación Source: DANE partner for progress and sustaina- Colombiana de Minería DIBULLA ble development in La Guajira. MAICAO Cerrejón MISSION HATONUEVO To produce and export coal THE MINE LOCATION efficiently, reliably and cost- DISTRACCIÓN In the municipalities of effectively while meeting the FONSECA ALBANIA ALBANIA , highest standards in safety, health, BARRANCAS Y environment and corporate ethics, BARRANCAS HATONUEVO . and also contributing to the progress PROJECT STAGE: of our people — our neighbouring SAN JUAN DEL CESAR In operation Magdalena communities and La Guajira. MINE CONCESSION EL MOLINO AREA: 69,661 hectares VILLANUEVA
URUMITA INTERVENED AREA: THE MINE 14,187.5 hectares LA JAGUA DEL PILAR 0.7% of Guajiran territory
Cesar RECLAIMED AREA: 3,789 hectares
VALLEDUPAR END OF MINE CONCESSION: 2034 CERREJÓN sustainability report 2017 06 ― 07
MINE TO PUERTO BOLÍVAR DIRECT-LOADING SYSTEM We have an integrated operation: mine, SINCE 1985 Coal To load the coal into ship railroad and port, aligned with the highest holds. standards and following the best practices Production of the industry, which ensure a responsible UNLOADING AT THE PORT 150 km The coal is automatically activity for our workers, the neighboring unloaded and transported by communities and the environment. conveyor belts to stock yards Process or directly onto ships.
PROSPECTION EXPLORATION WILDLIFE RESCUE AND TOPSOIL REMOVAL DRILLING AND BLASTING REMOVAL OF OVERBURDEN STACKING To discover zones To determine the amount RELOCATION This is preserved in banks Boreholes are drilled and Done with mechanical Once the coal seams are 125 - 150 with substantial coal of resources, quality of Inventory of species for rescue and for subsequent use in emulsion is placed in them shovels for loading on uncovered, the material is train cars deposits. the deposit and its mining relocation to suitable areas. land reclamation. to fragment the overburden 240- and 320-tonne trucks. mined. Front-end loaders potential. (rock). Deposited in dumps or and/or shovels load the coal backfill areas for the land onto 190-tonne trucks. reclamation process.
1 1 INITIALLY 1 2 PRIOR TO MINING 1 3 MINING 1 4 TRANSPORTATION
COAL CRUSHING TRAIN LOADING The coal is unloaded at Each wagon's load 10,500 tonne each 320 tonnes the plant hoppers, and is levelled, wetted is then crushed and and compacted to transported to silos to be prevent coal dust loaded onto trains. emissions.
250 m 3,789 hectares reclaimed since 1990. 190 tonnes
110 tonnes 1.6 Million trees planted
LAND RECLAMATION Crushing POST-MINING REVEGETATION SOIL STABILIZATION LAND PREPARATION Plant 1: Mature forests, protected Biological diversity, native Protección, génesis, Land reconfiguration, 6,000 tonne/h Crushing conservation areas and species and applied organización y desarrollo forming new topsoil, and Plant 2: ecosystem services. research. estructural. sustainability 2,200 tonne/h
OUR PEOPLE EXPORT DESTINATIONS MARKET SHARE ECONOMIC VALUE GENERATED AND DISTRIBUTED 12,119 WORKERS ENVIRONMENTAL INVESTMENT 2017 Coal World Market National Coal Exports Operating Shareholders Payments to national December 2017 revenue $1,482,391,200 suppliers and contractors 8.7% $7,475,967,205 $633,826,238 1.5% 12% 12.8% 35.7% 39% WORLD OTHER 37,6% Payments to the State Asia Central and North America Mediterranean Europe COLOMBIA 3.3% CERREJÓN Non-operating $1,667,181,435 Payments to foreign +900 M revenue 5,997 6,122 South America CERREJÓN Payments to employees suppliers and contractors tonnes $120,262,852 $803,243,439 $2,138,538,496 66.5% Depreciation and Private royalties paid to the from La 53% Coal exported over three decades amortization owner of the mining resource Guajira from La 31.7 M $810,627,865 tonnes $60,421,384 Guajira + 680 Million tonnes (M tonnes) Total economic value produced Total economic value distributed COP 206,365 COP 24,156 1985 2017 $7,596,230,057 $7,596,230,057 DIRECT JOBS THROUGH billion billion Calculations by the CMC (Coal Marketing Company), Figures in thousands of pesos as of December 31, 2017, prepared Our fiscal auditors are EMPLOYEES CONTRACTOR FIRMS the marketing agency for Cerrejón coal. following the International Financial Reporting Standards (IFRS). Deloitte & Touche. ENVIRONMENTAL SOCIAL CERREJÓN sustainability report 2017 08 ― 09
positions on the contribution of mi- practices and industry standards are with the aim of continuing to con- Message ning to development. a cross-disciplinary commitment tribute to the development objecti- As the leader of the sustainabili- throughout our value chain. ves of La Guajira. Similarly, I would from the CEO ty strategy and first woman to occu- In my more than 30 years as part like to highlight the construction of py the position of CEO of Cerrejón, of this company, I have witnessed the a complete Biodiversity Offset Plan, I would like to highlight our priorities path we have undertaken in terms submitted to the regional environ- in the field of sustainability, equality of sustainability in the face of re- mental authority, for the preservation and compliance with standards, to- quirements, regulations and public of ecosystems. gether with introducing our perspec- opinion, all of which are increasingly Since we started our operation tive on the biggest challenges facing demanding with this industry. We more than thirty years ago, we have the Colombian coal industry. have the challenge over the next few implemented advanced practices in We propose having a safe opera- years to secure our standards, mo- managing environmental impacts tion that allows us to guarantee the nitor the continuous improvement and cutting-edge technology in our integrity of the company's people and of our plans and to demonstrate our operation. Faithful to this purpose, assets, to promote the development alignment with these practices. in 2017 we managed to reinforce of La Guajira, and to ensure our so- In 2017, our coal production was our air-quality monitoring system cial and environmental performance 31.9 million tonnes and we expor- through a real-time predictive sys- meets the highest standards in ethics ted 31.7. Both results were below tem, which has allowed us to take and respect for employees, commu- target goals. This is mainly due to hi- preventive measures to avoid raising nities and the environment. Our goal gher-than-expected rainfall, but is also levels of particulate matter (dust) in is to attract, develop and protect the Claudia Bejarano necessary human talent in a suita- CERREJÓN INTERIM CEO ble work environment, to reinforce We have a robust Comprehensive Environmental Manage- the continuous improvement of our ment Plan (CEMP) that includes more than 1,600 environ- operations according to performance mental and social obligations, and for which the National standards, and to continuously opti- Environmental Licensing Authority (ANLA, its acronym in t is an honour for me to Universal Declaration of Human Ri- preservation of the indigenous cultu- mize our processes in order to be one Spanish) carries out the respective monitoring and control. have the opportunity to ghts, the Extractive Industry Trans- re of La Guajira, and provides for this of the most competitive thermal coal Compliance with mining regulations as well as the applica- I present our manage- parency Initiative (EITI) and the region’s development. operations worldwide. tion of best practices and industry standards are a cross-dis- ment accountability re- Voluntary Principles on Security and In this new edition, we describe Our actions diligently seek to ciplinary commitment throughout our value chain. port, part of our commitment to Human Rights. how we have been contributing to the identify, mitigate, prevent and, if principles of responsible operations, The Sustainability Report repre- objectives of the Sustainable Develo- necessary, compensate for the im- because of the impossibility of acces- the air. Likewise, since 2008 we have which includes prevention, mitiga- sents accountability regarding the pment Goals (SDG). To this end, we pacts caused by our operations, as sing new mining areas. This year we had joint committees to verify our tion and compensation of our im- most relevant topics for our stake- conducted an analysis of our mana- well as to transparently engage with are investing COP 24,156 billion in so- environmental management with pacts and support for the sustainable holders and the company. It presents gement based on “Mapping Mining to our stakeholders. Consequently, we cial programs and COP 206,365 billion communities, academia and regio- development of La Guajira. Our acti- the impacts of Cerrejón’s operations the Sustainable Development Goals,” have a robust Comprehensive Envi- in environmental management. nal entities. We know we still have vities, and this report, are a manifes- and our management measures, a publication of the World Economic ronmental Management Plan (CEMP) Throughout this report, you will a long way to go to reduce informa- tation of our commitment to the ten while documenting our history and Forum, the United Nations Develo- that includes more than 1,600 envi- find descriptions of the most impor- tion asymmetries regarding these principles of the United Nations Glo- transparently describing the cha- pment Programme (UNDP) and Co- ronmental and social obligations, and tant milestones we experienced in results, and to generate constructive bal Compact, the UN Guiding Princi- llenges we have as an industry and lumbia University. This process has for which the National Environmen- 2017, which include, among others: and informed spaces that will lead to ples on Business and Human Rights, the goals we have set for ourselves. allowed us to reflect on how we can tal Licensing Authority (ANLA, its an historical record in terms of safe- improvements and greater unders- the core ILO conventions, the perfor- This is in line with our commitment contribute to achieving goals that acronym in Spanish) carries out the ty regarding our reportable injuries tanding of our operations. This will mance standards of the Internatio- to be a company that responsibly ma- are within our scope and responsi- respective monitoring and control. and the merger of our Foundations result in ongoing trust-building. nal Finance Corporation (IFC), the nages its impacts, contributes to the bility, as well as to evaluate different Compliance with mining regulations System to integrate the entire ran- as well as the application of best ge of our human talent and learning CERREJÓN sustainability report 2017 10 ― 11
An important challenge in the must be resolved through an In- adequately manage their social and short-term will be the feasibility of ter-Institutional Roundtable. The par- environmental impacts, including Our operations moving forward with the Cerrejón tial modification of the streambed of actions and compensations to en- consultation space as an opportuni- Mining Plan in the La Puente Pit. The Bruno Creek was completed in 2017 sure the preservation of the stream ty to strengthen engagement with Constitutional Court decided in 2017 on the last 5 km of its lower basin, on and its environmental services. Its are open to total our stakeholders through ongoing, to suspend progress of the operation Cerrejón property, where there are review included participation by the constructive dialogue within the in this pit to the natural channel of no communities. This is a section 16 entities of the central government transparency. framework of their traditions and Bruno Creek until a technical study of the stream that is seasonal and that formed an Inter-Institutional customs. is conducted that offers a response remains dry most of the year. The Roundtable in 2016. The national and We will also continue to promote to new uncertainties and questions works were the subject of thorough international consultants who parti- In 2017, we hosted equality as a fundamental value, ha- raised by its Plenary Session, which studies and evaluations in order to cipated in its design and execution ving seen significant progress in an 14,231 visitors. industry that has traditionally been male-dominated. Changes in recent years have seen acceptance and pro- motion of the role of women within our operation. It should be noted that, in 2017, we set some specific goals to promote diversity in the recruit- ment process in order to include a larger number of women, indigenous people and staff from neighbouring communities. Towards this end, we incorporated numerous experiences energies (World Coal Association changed the policy for equal opportu- of interventions on water bodies ca- and Coal Industry Advisory Board) nities to incorporate the component rried out on a global level. All infor- and the strengthening of the trade of equality. mation associated with this project association (Colombian Association Finally, I would like to mention is available on our web site. of Mining). Our goal is to assist as that, given the importance of mi- Although we are proud that, in facilitators and coordinators in the ning in La Guajira and the fact that the last six years, our social and en- processes for social transformation. it is a business that will eventually vironmental programs have been Another major challenge will be to complete its cycle (with the current recognized with 15 national and in- maintain an ongoing and constructi- contracts scheduled to terminate in ternational awards, we are aware of ve conversation with our stakehol- 2034) , we continue to move forward the challenges we face as an indus- ders regarding the negative impacts with the Mine Closure Plan. This in- try in the midst of global discussions of our operation and its management cludes coordinating actions to pro- on adapting to climate change. At measures. This includes perceived mote increased employment and Cerrejón, we have identified one way impacts for which there is no scien- local procurement, the strengthe- to face this challenge — to open our tific certainty or direct relationship ning of institutional and community operations to total transparency as with our activities. In 2017, we were capacities, the search for solutions a means of generating informed dis- notified of a ruling by the Constitu- associated with watershed protec- cussions. In 2017, we hosted 14,231 vi- tional Court that requires us to ca- tion, access to drinking water and the sitors, the vast majority tourists and rry out a social, environmental and development of high-impact projects students. In addition, we are wor- cultural compensation plan. This that promote other economic activi- king on various initiatives to con- plan must include consultation with ties in partnership with the govern- tribute to the international debate communities directly affected by our ment, the private sector, civil society on climate change and renewable operations. At Cerrejón, we see this and communities. CERREJÓN sustainability report 2017 12 ― 13
About this report
On the drafting of this report
his is our 13th uninterrup- with its main domicile in Bogotá considered that the information was ted year of sustainability (both hereinafter Cerrejón), during not sufficient and useful (58%), and 2 reports (hereinafter, IS the January 1 to December 31, 2017 challenges could not easily be found T 2017 or Report), which we period. (64%). These recommendations were have been drafting yearly since 2005 When the formula or calculation incorporated into this new edition. to disclose the economic, social and base of an indicator has had to be As part of a continuous enhan- environmental performance of our modified vis-à-vis data reported in cement process, a peer review was operations. This report has been previous reports, as well as adding conducted for the first time, spear- drafted in accordance with the Glo- significant changes that have taken headed by the Colombian Corporate bal Reporting Initiative (GRI) stan- place during the period analysed as Council for Sustainable Develop- dards, core option. It is drafted by regards the size, structure, ownership ment (Consejo Empresarial Colom- Cerrejón’s Corporate Affairs and interest or company supply chain, biano para el Desarrollo Sostenible Communications Division with the the corresponding explanation has or Cecodes, its acronym in Spani- support of PwC and assurance by been included in each section. sh) to analyse and obtain feedback Deloitte & Touche, following revised As part of the ongoing dialogues from two benchmark sustainability international standard ISAE 3000. undertaken with our stakeholders companies in regard to our report to draft the materiality analysis, a and consolidation process. This See page 98 of the quality assurance report. Our latest survey was applied in regards to session was of great value for the report year was 2016. the perception to our 2016 report, to drafting of the 2017 report. We hereby present the per- which we received 65 responses. Its formance and information on 109-page length was considered to be adequate (71%); its presentation and design were deemed to be agreea- All reports issued by ble (92%), and its general evaluation Cerrejón are available was positive in comparison to other at www.cerrejon.com reports (88%). Likewise, upon con- sulting about material topics, the Carbones del Cerrejón Limited, a respondents considered that the 100% privately owned foreign part- information was clear and easy to nership domiciled in Anguilla, British understand (78%). However, its struc- Western Indies, and Cerrejón Zona ture was deemed to be a point to be Norte S.A., a 100% privately owned improved upon (60%) since the con- Colombian limited liability company tent was not easy to find (61%), some CERREJÓN sustainability report 2017 14 ― 15
Materiality Analysis
ur materiality analysis was long-term within the framework of carried out for the purpo- the perception of risk and impact (in O ses of identifying the va- social, environmental and economic lue-adding operational terms), the context of sustainability items that were relevant for our sha- and the completeness principle. reholders in the short-, medium- and
Identification of • In order to define the material issues, • Additionally, we analysed news material issues 17 external information sources were reported about the company in the consulted, including the National news media and social media, the Mining Development Plan for corporate risk matrix, the study on Horizonte up to 2025 of the Energy human rights impacts and risks, Mining Planning Unit (UPME, its and the topics discussed as part initials in Spanish), the sustainability of relating to employees, suppliers, reports of our shareholder contractors, NGO representatives, companies (Anglo American, BHP foreign governments and clients. and Glencore), the sustainability The full list of external sources yearbooks from RobecoSAM, the can be consulted in the digital 2016–2017 La Guajira Development attachment to this Report. Plans and the Dow Jones and FTSE4Good indices, among others.
Prioritization • Based on this analysis, the 18 most authorities, academia, government relevant aspects were defined reps, journalists and NGOs. One and later prioritized during two hundred and fifty-five online specific dialogue sessions for this surveys were also conducted report in La Guajira and Bogotá, to prioritize the issues, and including 81 representatives the ten issues with the highest from indigenous communities, importance were selected. employees, suppliers, the media,
Validation • Finally, in order to draft this report prioritized material issues through we aligned our material issues a workshop with the top people with the company’s strategic responsible in each area and guidelines and validated the ten people reporting to the company. CERREJÓN sustainability report 2017 16 ― 17
Level of importance: obtained from the exercise of prioritization Material issues aligned of material issues between Cerrejón and its stakeholders, in to our strategic axes accordance with the economic, environmental and social impacts.
LEVEL OF IMPORTANCE
HIGH
STRATEGIC AXES RISK OPPORTUNITY IMPACT MATERIAL ISSUES
Health and safety at work Safety and health Risk management
Climate change mitigation and adaptation
Responsible soil management and land rehabilitation
Biodiversity care and conservation MEDIUM
Social and Mine closure plan environmental responsibility Responsible Management of air quality Connecting to community and contributing to a better quality of life Local supplies, reinforcing regional vendors and production chains
Access to water in the region LOW
Employee training & development
Talent capturing and retention Our people Labor welfare PROFITABILITY Continually optimize all Generation of local employment and diversity our processes in order to be one of the most Climate change mitigation and adaptation competitive thermal coal operations worldwide in terms of unit costs, Mine closure plan ensuring sustainability, Operational growth, and creation of value in the long term. excellence Competitiveness and innovation Risk management
OPERATIONAL EXCELLENCE PROJECT MANAGEMENT Efficient water use in operations Ensure continued improvements Plan and execute the to our planning and operations required projects for stay- Project management Mining advancement projects both throughout our in-business and business production chain, preparation, expansions safely and transportation, and export in accordance with Contribution to national and regional economy and in our administrative and established standards, Profitability support activities in accordance timeframes, and budgets. Competitiveness and innovation with the best practices.
Commitment to human rights Ethics and good governance SAFETY AND HEALTH SOCIAL AND ENVIRONMENTAL OUR PEOPLE ISSUES TRANSVERSAL STRATEGIC Ensure a safe operation. RESPONSIBILITY Attract, develop, and retain TO THE STRATEGIC AXES AXES That is, a fatality-free Actively and effectively promote human talent with the skills operation with a culture of the sustainable development necessary to meet our safety and self-protection of La Guajira and undertake business targets, with each in order to safeguard the all our activities under the collaborator finding meaning life and health of our people strictest precepts as regards in his or her contribution and the integrity of our ethics, respecting our people, in a suitable climate and processes, installations, and communities, their culture, culture at Cerrejón. equipment. and the environment. CERREJÓN sustainability report 2017 18 ― 19
SDGs PRIORITIZED IN THE MINING SECTOR
1. NO POVERTY
CLEAN Water 6 and sanitation 2. ZERO HUNGER
3. GOOD HEALTH AND WELL-BEING
4. QUALITY AFFORDABLE AND EDUCATION 7 CLEAN ENERGY
5. GENDER EQUALITY
10. REDUCED INEQUALITIES
Decent WORK and 8 economic growth 11. SUSTAINABLE CITIES AND prioritized in mining as they repre- COMMUNITIES Alignment with sent the highest direct impact. This exercise was reinforced by analysing the SDG Selector, a PwC tool that uses 12. RESPONSIBLE Sustainable Development PRODUCTION AND more than 200 data sources to rate CONSUMPTION the performance of countries against Goals (SDGs) each SDG based on surveys sent to Industry, innovation and infrastructure company leaders asking what repre- 13. CLIMATE 9 ACTION sents an impact or an opportunity for hrough the National public policy document, it declares their business.
Planning Department the importance of the private sector Additionally, the guidelines used 14. LIFE BELOW WATER T (DNP, its initials in Spa- in materializing this agenda up to were based on a document prepared nish), the Colombian 2030. In this regard, as per the com- by the Global Compact, the Global Re- government issued a document by mitment to sustainable development porting Initiative (GRI), and PwC (An 16. pe ace, the National Council on Economic in La Guajira and nationwide, we Analysis of the Goals and Targets), JUSTICE AND STRONG LIFE ON LAND and Social Policies (CONPES, its have commenced analysing our con- which presents a proposal to align INSTITUTIONS acronym in Spanish) in March 2018, tributions to this endeavour. specific SDG goals to the GRI stan- 15 the purpose of which was to generate In regard to the SDGs, our basis was dard and other performance indica- a strategy for the implementation of the Atlas on Mapping Mining, which tors issued by the World Bank and the 17. PARTNERSHIPS FOR THE GOALS SDGs in Colombia. Although it is a identifies five goals that must be UN Global Compact. CERREJÓN SUSTAINABILITY REPORT 2017 20 ― 21
Engagement, Engagement with ethics and risks stakeholders
t Cerrejón, we unders- sectors and groups interested in our tand stakeholders to be engagement. This helps us to unders- A people or groups that tand their perceptions, expectations are, or could be, directly and interests, and to discuss our en- or indirectly impacted by our opera- gagement. It is our main goal to esta- tions or the programs we undertake. blish permanent, transparent, We therefore prioritize dialogue as constructive, informed and signifi- the best channel to get to know our cant dialogue with our stakeholders 3 interlocutors, as well as the various through various mechanisms.
SEE NEXT PAGE FOR DETAILS
Ethics and Good Governance
ccording to Transpa- society to demand more transpa- with our shareholders (Anglo Ameri- rency International, rency and access to information, can, BHP and Glencore) to engage in A the global fight against and with the recent induction of transparent, ethical operations that corruption is one of the Colombia into the Organization for avoid the materialization of iden- main hindrances to attaining sustai- Economic Cooperation and Deve- tified risks and reflects the impor- nable development, especially in La- lopment (OECD). This situation im- tance we give to how our business tin America. Colombia is no plies an improvement in the various results are achieved. exception to this since it is in the dimensions of corporate standards, To that end, we have a Delega- ninety-sixth position out of one hun- putting us in a challenging position tion of Authority Guide (DOAG) and dred and eighty nations in that for the implementation of our cor- a Policies and Conduct Guidelines agency’s Corruption Perception In- porate governance model, the appli- Manual, which set out our working dex, and no improvements have cation of behaviour policies and guidelines. These guidelines make been made in the past four years. guidelines, and our anti-corruption it possible to increase controls as- There is also a similar challenge in engagement. sociated with corporate risks, losses La Guajira, according to the 2015– due to irregular acts or any type of 2016 Departmental Transparency Corporate violation of rules and laws, both na- Index. governance tional and international. The foregoing is coupled with in- At Cerrejón, we have a work fra- The Manual includes 19 policies creased empowerment of civil mework that has been agreed upon that are mandatory for our workers, CERREJÓN SUSTAINABILITY REPORT 2017 22 ― 23 orities
h aut opinion
Engagement with m panies
and co and
stakeholders and ia ees unions y m unities and edia contractors and third parties with The following committees follow-up on the adoption, implementation and s our m plo mm e b whom we interact. It includes work monitoring of policies, guidelines and programs. m ent overn nion lients o cade a G contractors Th NGO A C U V endors L leaders C Em guidelines regarding ethics and co- rruption prevention, customer rela- Mechanisms tions and product quality, conflict of Committees interests, communications, politi- Engagement meetings (continual) cal activities, management control Shareholders Approves corporate strategy and the budget, Committee and evaluates company performance. and fraud control, human rights, Fora and events (as programmed) social responsibility at work, more
Visits job opportunities for members of Audit and Financial Deals with issues related to controls and external communities in the area of influen- Committee and internal audits, and reviews financial aspects. Answering information requests or consultations (continual) ce, risk management, safety, heal- th, environment, and communities, Complaints Office (permanent) Internal Control Evaluates deviations from the Behaviour Policies systems security, use of drugs and Committee and Guidelines and approves sanctions if required. alcohol, travel expenses, manage- Also approves any changes to these policies. Partnerships ment positions and combatting mo- Management Studies or investigations on our operations ney laundering and the financing of Evaluates human management issues, such Development as changes in the organizational structure, terrorism. The Equal Opportunities Committee (MDC) the establishment of new programs and Reports on the status of the lndependent Review Panel (bi-annual) Policy was updated in 2017 to incor- policies, and makes decisions regarding porate equity. personnel, performance, talent development, Air Quality Oversight Committee compensation, work and occupational health. For further information, go to www.cerrejon.com Dialogue roundtables on safety impacts (on an as-needed basis) Operational Follows-up and evaluates management By means of lectures and cour- Integrity Committee and results of operational integrity. Community service office (permanent) ses for employees, contractors and business associates, the Internal Yearly roundtable Social Investment Reviews and approves the programs and Control area has a policy of perma- Committee projects associated with impact management and social investment of the company. Meeting of CEO Communications (bi-annual) nent disclosure regarding policies and lessons learned. An example of Proximity plan (dialogue sessions amongst executives and the entire operations) this is our professional employees’ Management Approves required cases in accordance with the certification every two years and the Committee (MC) Delegation of Authority Guide (DOAG), mainly associated with purchases and contracts. Hotline reporting channels (permanent) orientation courses, after the holiday season, for qualified technical per- La Guajira Regional Competitiveness and Innovation Commission Risk Committee sonnel (operators, technicians, assis- Reviews the catalogue of material risks and the controls designed for their management. Private Competitiveness Council tants, secretaries and clerks). Informs on new material risks identified or on updates to catalogue risk assessment. Meetings and boards of directors (as required)
CEO’s Committee Deals with topics that require the direction Regional journalism contest (annual) and decision of senior management.
Workshops/diploma studies for journalists (on an as-needed basis) Strategic Committee Strategically deals with security, health, environment CEO’s accountability to journalists for Safety, Health, and community aspects of Cerrejón. Environment and Communities Meeting with contractors (every two years) 754 employees (SCSHEC) were trained in Collective bargaining convention follow-up committees policies in 2017 CERREJÓN SUSTAINABILITY REPORT 2017 24 ― 25
Reporting Prevention of The effectiveness of our anti-co- Regarding suppliers and contrac- Channels corruption and Total due diligence rruption and SARLAFT programs tor companies, we conducted trai- Anti-Corruption Training Internal Control management is res- conflicts of interest depends on the commitment of em- ning in Bogotá and Barranquilla, at Plan and SARLAFT ponsible for managing any claims, Procurement and Contracts 1,198 ployees, suppliers and contractors. which we again highlighted com- (# of people) conducting the necessary investiga- At Cerrejón we promote a culture of We have therefore implemented a mitments to comply with the Ethics tions and ensuring that the required zero tolerance for corruption and, training plan to remind, update and Policy, the Guidelines for the Preven- Employees 213 (personal attendance) actions are taken in case of devia- to that end, we have implemented Donations and Social 336 strengthen knowledge on corrup- tion of Corruption and SARLAFT. tions from policies and behaviour a program for its prevention and to Investment Projects tion prevention, transnational bri- The training plan was completed, Third parties 171 (personal attendance) guidelines. prevent transnational bribery, mo- bery, money laundering and terrorist with a greater number of invited at- We have the following comp- ney laundering and terrorist finan- financing. tendees than expected. Employees taking 38 Objects/Items of 180 online courses laints channels so that any emplo- cing. Our organization, at all levels, Value Offered The sessions for employees in- SEE THE NEXT TABLE yee, contractor or third party can is aware and committed to the pre- cluded face-to-face workshops in Our programs have been evolving Total 422 anonymously or confidentially re- vention of these crimes, and we have which we reviewed concepts, dis- and spreading to all areas of the com- port any possible deviations from established procedures to ensure this Personnel Selection 194 cussed practical cases and analysed pany since 2013, and we can now say the policies. objective. essential aspects of the due diligen- that they have reached a degree of A fundamental mechanism for ce procedure. For the certification maturity that is reflected in our or- Total prevention is due diligence, which 1,908 process of employees who work in ganizational culture and the results
Ethics Line served by consists in a set of steps and measu- positions that could have greater ex- seen in the audits. Navex Global res designed to investigate in advan- posure to these risks, we have an on- (Independent third party) ce the third parties with whom we line course and a qualification exam From Colombia: 01-800-911-0011 interact. Therefore, we request infor- that must be taken every two years. Extension: 844-287-1872 mation from the third party, consult restrictive lists, and analyse possible conflicts of interest in order to en- Website www.eticacerrejoncmc. sure that any transaction is aligned ethicspoint.com with our policy of zero tolerance for corruption and the Risk Manage- Due diligence reviewed by ment System for Money Launde- the Compliance Office Internal Control Management ring and Financing of Terrorism 1. Outside of Cerrejón Procurement and Contracts 238 (57-1) 595-2777 (SARLAFT, its initials in Spanish). 2. From Cerrejón - Extension 2777 3. Email: [email protected] Donations and Social 210 Investment Projects 100% of Cerrejón's transactions with third Objects/Items of 180 parties underwent Value Offered We received 52 complaints due diligence. during 2017, 50 were investigated and resolved In 2017 1,908 due Personnel Selection 194 in the same year and the diligences were carried remaining 2 are under out. 822 of them were analysis. There were no considered high risk Total incidents of corruption and were analysed by 822 during the year. the Compliance Office. CERREJÓN SUSTAINABILITY REPORT 2017 26 ― 27
REGULATIONS ACTIONS TAKEN BY CERREJÓN ESTABLISHING THE CONTEXT
Publication of the Guidelines for Determination of the the Prevention of Corruption as an scope of the risks, identification of internal integral part of the Ethics Policy. pportunities
2013 and external factors, Awareness-raising sessions on the risk O We must ensure that and the time and place of corruption for senior managers and our employees unders- when they occurred. employees in sensitive positions. and tand that it is everyone’s responsibility to get to know those with whom we establish business External Circular 100-005 of the Designation of a Compliance Officer. relationships and, the- Superintendence of Companies. Anticorruption commitment allenges refore, that they must Risk
SARLAFT and mandatory 2014 of senior management. Ch be increasingly careful report to the Financial Analysis and aware of the risks and Information Unit of the Risk analysis and identification of sensitive areas. and serious consequen- management Ministry of Finance (UIAF). Risk Management Design of due diligence procedures. ces associated with bribery, corruption, Communications to suppliers and Nuestra contractors on the obligation to comply financing of terrorism errejón has a risk ma- gente with the Anticorruption Guidelines. and money laundering. nagement policy that IDENTIFICATION OF RISKS Inherent to all activities, processes, training and certification in demonstrates our com- changes or decision-making. anti-corruption for employees We must explore C in sensitive positions. the possibilities of mitment to systematic establishing links with Policies design SARLAFT. risk management. Cerrejón’s risk ma- national and interna- tional initiatives that nagement process has been develo- COMMUNICATION FOLLOW UP aim to combat these AND ANALYSIS AND REVIEW ped following the standards defined CONSULTATION Identification of causes, impacts and controls Continual crimes in order to share Centralized internal to manage identified risks. The impacts review of the our model and harvest in ISO 31000, and is based on the notification, as Systematization of the are identified according to the following status of the new ideas to constantly well as among due diligence process. identification, analysis, evaluation categories: health and safety, environment, corporate update our programs shareholders, 2015 and addressing of risks by each com- communities, reputation, legal and financial. risk register Application of due diligence and make them even of the corporate to the process of personnel pany area in order to characterize risk register. selection and sale of surpluses. more efficient. Implementation of them according to the impact they We must constantly SARLAFT in all areas. EVALUATION innovate our methods, would generate if they occurred. The effectiveness of the controls established Training in anti-corruption contents and tools to and SARLAFT. to prevent the risk or mitigate its impacts transmit the mes- must be determined for each risk. sage of prevention, increasing training for employees and Design and implementation of third parties who are due diligence monitoring. business associates. Law 1778. Provisions to 2016 Continuous training in corruption combat corruption. prevention and SARLAFT. We must identify Resolution 100-002657. Recertification in anti-corruption opportunities for Obligation to implement business of employees in key positions. improvement in the ethics programs in companies. timeliness and simpli- TREATMENT Circular 100-03 of the city of due diligence Superintendence of Companies - processes, maintaining Guide on Business Ethics Programs. Anticorruption Program Update in their effectiveness. Circular 100-006. Basic Legal accordance with the new regulations Circular of the Superintendence Identificación y
2017 on transnational bribery. of Companies - Chapter X. ejecución de planes de Design of segmentation acción para mejorar la methodology in SARLAFT. gestión de riesgos Continuous training in corruption prevention, transnational bribery and SARLAFT. CERREJÓN SUSTAINABILITY REPORT 2017 28 ― 29
Senior management is responsi- ble for compliance with the Risk Ma- Management of Impacts on Human Rights nagement Policy. Cerrejón has established the as- sessment of compliance with the e have adopted different We have corporate policies, which in- Human Rights, the ten principles of the associated controls in order to en- standards to carry out clude our Policy on Human Rights (pur- Global Compact, the Voluntary Prin- sure the effectiveness of risk ma- W our operation responsi- suant to Colombian regulations), the ciples on Security and Human Rights, nagement. This is how we know bly, respecting the peo- Universal Declaration of Human Rights Performance Standards No. 1, 5 and 7 the effectiveness and timeliness of ple who are part of our chain of value, and international standards adopted of the International Finance Corpora- the actions established to prevent the communities neighbouring our by the company: the United Nations tion (IFC) and the basic conventions and mitigate risks. Action plans are operations and the environment. Guiding Principles on Business and of the ILO. established. 112 people at the company were tra- ined in risk management and the use of the tools that support the process. Due Diligence Process in Human Rights Our stakeholders must be kept in-
formed of the status of the corporate 1 1 1 2 1 3 1 4 1 5 1 6 risk register. To that end, they receive an up- dated risk report every four months that includes: assessment of the risk Identification of Definition Verification and Definition of Socialization of social impacts of impact assurance of according to the probability of occu- action plans for the impacts with Addressing and impacts on management compliance with closing gaps. stakeholders. complaints. We take the precautionary principle as a reference rrence and impacts, the main events human rights. measures. the stages. to avoid taking risks in our operation that could related to the risks, and whether the cause irreversible damage to our stakeholders existing risk is tolerable for the regu- or to the environment if they occur, even if lar running of the operation. we do not have scientific certainty of it.
Study of Risks in our area of direct influence 2017 Risk Categories and Impacts on In accordance with our process (ADI), departmental and Human Rights of due diligence, we carried out this municipal governments, Collision Explosion Integrity of Reputation Environmental Loss of our assets permits competitiveness An impact on human rights is second study in 2016, prepared by academic sector, research conceived as a favourable or unfa- the consulting firm TRUST. This centres and civil organizations vourable effect on the exercise or study covered 100% of our integrated in the municipalities of enjoyment of human rights as a re- operation (Mine, Railroad and Puer- Riohacha, Albania, Barrancas, Risk event Collision between Unexpected Failure of the Tutela actions and Violation of Establishment of vehicles, with the detonation of stacker/reclaimer popular actions, environmental new regulations, sult of business activity. For us, it to Bolívar Port). We show the main Hatonuevo, Maicao and Uribia. train, with people explosives inside in Puerto Bolívar. cases of fraud regulations. and volatility of is essential to recognize the actual, results and the methodology used • 350 interviews with our and animals, or outside the area or corruption by the price of coal. potential and perceived impacts of below. own employees. or aircraft. of influence. employees or third parties, breach of our operations on stakeholders, in- • 44 interviews with different laws and regulations cluding impacts on human rights, to About the study areas of our operation. or violations of establish timely and relevant mea- • Approximately 50 interviews • 1 focus group with human rights. sures and thus prevent, mitigate and, were conducted with the participation of 11 when necessary, compensate them. representatives of communities Cerrejón contractors.. CERREJÓN SUSTAINABILITY REPORT 2017 30 ― 31
Positive impacts 1. Payment of royalties. • Revisamos el uso del pito the ones identified as being of high on the part of Cerrejón. This is 2. Institutional strengthening: diurno y nocturno del tren. magnitude. amplified if we take into account citizen participation and social • We use water-addition 1. Perception of effects on the the general scarcity that charac- oversight of the investment systems at the carbon health of the communities terizes living conditions in La of royalties, support for the conveyor belt transfer sites. within Cerrejón’s area of Guajira. modernization of public • We assign crews to influence administration, and education control the spontaneous This refers to the health effects Management measures in public administration. combustion of coal seams. attributed to environmental po- • 91% of the water used in 3. Building infrastructure: • Usamos aspersores y llution by the emission of particu- our operations is industrial, construction and facilitation monitores de aire para late material from coal, generated unfit for human or animal of the mobility of neighbouring evitar la difusión de by extraction and transportation consumption or for crop communities, allowing them partículas por vías áreas. operations. This impact, for the irrigation. access to goods and services. • We use sprinklers and communities, is based on the vi- • We use our train to supply 4. Improvement in the levels air monitors to prevent sible presence of this material. drinking water to 92 of education of stakeholders the diffusion of particles neighbouring communities through the Educational through the air. Management measures (8,100 people) with 89,000 Excellence Fund, scholarships • We stack the coal so that we • Implementation of a litres per week. and educational aid, and the avoid its dispersion by wind. monitoring system that • We designed a desalination creation of TecnoGuajira. • We constantly wet measures total suspended prototype following Wayuu 5. Access to drinking water down the roadways to particles and particles traditions and customs for for the Wayuu communities avoid raising dust. with a potential impact the treatment of 100 litres of through water supply, sanitation on the community water per day. and hygiene solutions; between 1,200 and 1,800 It is important to note that the and human health. See more management measures in the section comprehensive management direct influence, both at the mine animals annually. water used in these measures is low • Monitoring stations that “Water in Mining of water sources, and the and on the railway line. quality and is not suitable for human measure emissions to Activity." use of railway lines for water We are aware of this situation, 2. Impact on the tranquillity of or animal consumption, or for the control and keep them below distribution and supply. and are committed to recovering the Cerrejón ADI communities irrigation of crops. accepted parameters. In December 2017, as part of this the affected areas in order to The emission of particles, noi- • About 60% of investments study we carried out two socializa- See more details in the chapter Verified impacts restore their fauna and flora so se and generation of bad odours "Management of Environmental in environmental tion exercises with communities in Impacts," These are the adverse effects that that these lands may be used for caused by our operations have performance are allocated the vicinity of the railroad, one of have been generated, or continue to agricultural activities or environ- affected the right to tranquillity. Perceived impacts to air-quality control. them held at the Cerrejón Founda- be generated, and of which there is mental conservation within a rea- The causes of these discomforts They do not have a proven causal re- • Corpoguajira has done tion Farm with about 40 members certainty of the causality between the sonable timeframe. are within maximum allowable lationship with Cerrejón's activity, air-quality measurements, and leaders of indigenous commu- impact and an activity at Cerrejón. levels, and scientific studies have and refer to the sensation and per- and the results have been nities who belong to the Associa- The study found seven impacts, and Management measures ruled out their effect on health. ception of the communities. Despite below the maximum tion of Indigenous Authorities of the we list below the ones identified as • Rehabilitation of 3,789 However, we have implemented not having a direct cause, at Cerre- allowable limits. South of La Guajira (Aiwa). A second being of high magnitude. hectares, preservation of a series of measures to mitigate jón we are committed to addressing session was held in the Akuaipa more than 48 million m3 of them. such perceptions that concern 2. Perception of restrictions on boarding school, with more than 100 1. Visual changes in the ADI land, and the sowing of more communities in order to strengthen the use or exploitation of water indigenous people and authorities territory of Cerrejón (impact on than 1.6 million trees of 40 Management measures the bonds of trust and generate mu- resources from Wayuu communities located landscape). native species since 1990.. • We use high-flow tual benefits between populations One of the main concerns of near the mine. We have created visual changes • Operation of the Wildlife sprinklers in the piles of and the company. The study found communities is what they see • Both exercises used the in the territory of the area of Refuge Centre, which receives extracted material. three impacts, and we list below as the excessive use of water methodology of Coffee Conversation, CERREJÓN SUSTAINABILITY REPORT 2017 32 ― 33
NUMBER OF COMPLAINTS RECORDED, CLOSED AND OPEN Complaints recorded Complaints closed Complaints open which creates collaborative dialogue ensuring that the company’s secu- receiving, investigating, arranging 400 400 networks around matters that are rity management is in line with the solutions, monitoring and closing the important in real-life situations in commitments made in terms of the cases filed by our stakeholders in re- 370 order to generate ideas, agreements, Voluntary Principles standard and lation to possible impacts generated 350 350 and creative, innovative courses corporate human rights policy. by the operations that could have an
of action in an agreeable, friendly impact on human rights. 328 atmosphere. The conversation ad- Complaints Office The Complaints Office seeks to dressed the most relevant aspects Since 2010, we have had a Com- fulfil the principles defined for the- 300 300 of the Wayuu culture and the way in plaints Office (CO) designed under se types of mechanisms, which are 276 274 which we can jointly contribute to the framework of the UN Guiding guided by the remediation pillar: to 264 preserving their traditional values Principles on Business and Human be legitimate, accessible, predictable, 250 250 and customs. Rights. This office is responsible for equitable, compatible, transparent, 236 To address the impacts and risks 225 212 found in the independent study, we How does it work? Process of the Complaints Office (CO) 200 200 implemented a plan of action with
specific activities to prevent and 1 A person submits their complaint to 1 the CO or a Cerrejón official. mitigate the impacts. This plan has 150 150 defined managers, a schedule and The CO records the complaint regular monitoring. in the software application. 1 2 In the context of Cerrejón's 100 100 94 92 human rights policy and the im- 1 3 This confirms the filing. plementation of the Voluntary 62
Principles on Security and Human 50 50
Rights standard, five roundtables The CO classifies the complaint. 1 4 39 were held in 2017 with the commu- nities of the 4 de Noviembre, Ya- The complaint is routed to the responsible 5 main, Orroco, Jiiséntirra and Media 1 area according to the details of the case. 2014 2015 2016 2017 Luna in Puerto Bolívar with the par-
ticipation of those responsible for The researcher gathers the information 1 and performs the necessary interviews. 6 the public and private security plan dialogue-based and a source of conti- to this type of impact by the opera- effects, as well as their expectations. If that protects the communities, peo- nuous learning. In addition, at Cerre- tions, representing 81% of the total the investigation corroborates an im- The case is documented in
ple and infrastructure of Cerrejón. 1 7 the software application. jón we apply three other guidelines in number of complaints. pact caused by the operation, the pro- These dialogues have allowed our complaints service model: that it To prevent these incidents, we cess continues with the complainant
The CO initiates or facilitates meetings with 1 us to improve our comprehensive 8 be proportional, culturally appropria- continue to work with members to find a solution and reach an agree- understanding of the risks, both to the areas involved to reach an agreement. te and offer adequate protection to of the communities in the vicinity ment between the parties. us and to the communities, throu- those involved. of the rail line, who want to install For those cases where it is not pos- The CO, or the investigator, reach an agreement gh a better understanding of the 1 9 with the person on a possible solution. fences bordering the railway tracks sible to reach an understanding on surrounding conditions. At the Managing complaints to enable landowners and livestock the impact and the expectations of a
same time, the roundtables have The CO carries out a follow-up to the 1 In 2017, there were 264 comp- herders to open gates for the moni- solution on the part of the claimants, 10 allowed us to align communities, implementation of the agreement. laints filed with our office, of which tored transit of animals. the Complaints Office has a resource civil authorities, security forces, 93.5% were related to impacts on Within the process established in for hiring independent experts, whose The CO closes the case and records the
companies and private surveillance 1 communities, the main one relating the Complaints Office, gathering infor- knowledge and experience can contri- 11 findings in the software application. around common objectives. These to animals being run over by the tra- mation is carried out jointly with the bute to resolving the claim. These ex- include strengthening security con- In the event of an appeal by the person filing the in that hauls coal to Puerto Bolívar. complainant, seeking to understand perts can formulate recommendations ditions in the area of influence and complaint, a new investigator is appointed. There were 213 cases reported due the event presented and its possible and measures for their management CERREJÓN SUSTAINABILITY REPORT 2017 DECENT JOBS AND ECONOMIC GROWTH 34 ― 35 GOAL: 7
(prevent, mitigate or compensate, as actions by both the company and the Employees Security personnel learn about risk situations the case may be). community. • We provided human • We include Annex E- that should be addressed. rights training to 525 new Voluntary Principles and Complaints about Measures to prevent employees during their Human Rights in 100% of the Suppliers and contractor rights of indigenous potential impacts induction on our policy, contracts in force/signed companies fundamental rights, for the provision of private • We include Appendix D Health, communities on Human Rights constitutional actions, pportunities • Socialize the Risks and Impacts in security services in order to Safety, Environment and O social standards and Human Rights Study with groups of In these cases, we have identified in- In order to deepen our commitment ensure their commitment to Communities Requirements employees and authorities in the area
remediation mechanisms. and cidents related to indigenous rights to addressing social impacts and ris- compliance with the Voluntary in 100% of our contracts with of influence of our mining operations. • We adopted a plan of because they involve their identity, ks to stakeholders who are or may be Principles on Security and contractors and suppliers for • Strengthen the monitoring of the awareness-raising and human rights plan of action. traditions, customs, territory and impacted by the operation, we have Human Rights; the Cerrejón any amount greater than USD training on human rights for • Finish the review of risks and impacts
culture. various tools. These include social Human Rights Policy; respect 40,000. The appendix requires allenges employees and contractors. identified compared with those defined
Ch in the corporate system to ensure there
In 2017, we reported 264 cases, of standards adopted publicly by the for the human rights of them to make a commitment in HR Due Diligence • We provide internal are sufficient measures and controls in which 248 corresponded to events company's internal policies on hu- vulnerable people or groups; to meet our safety, communication pieces to place to avoid human rights violations. that affected members of indige- man rights and communities, social respect for the traditions, health, environment and promote an understanding • Strengthen the bi-directional risk nous communities. The majority of and human rights clauses in con- customs and cultures of communities requirements, assessment in the Voluntary Principles on of the role of businesses the claims (213 cases) correspond to tracts, training for employees and indigenous communities; as well as Cerrejón’s Human Security and Human Rights by developing regarding human rights, an interactive methodology of risk analysis. animals being run over on the railway contractors (including public securi- respect for the rights of Rights and Social Labour using a variety of means that • Strengthen the roundtables with tracks. ty forces and private security staff ), include radio programmes freedom of association and Responsibility policies. stakeholders on safety issues. In relation to the previous year, al- communication tools to raise aware- through our trunking labour; and the elimination of • We evaluate Standard • Reinforce the analysis of human rights most the same trend is noted due to ness, and the promotion of knowle- child labour, among others. SA 8000 (labour management risks in the Cerrejón value chain in radio system (which order to design specialized measures the fact that the measures to prevent dge on human rights by means of can be tuned into in the • We trained 818 members of and occupational health for contractors and support them these incidents have not been suffi- clear messages for all levels of the operations vehicles), posters the private security personnel and safety) compliance with in implementing and aligning them with what the company requires. ciently effective. A solution requires operations. and online material. and 4,239 of the public 100% of the contractors and security forces on issues of suppliers who engage in a • Prepare and start the process of human rights, the Voluntary financial operation with the conducting surveys about the Complaints Office, directed at individuals who Principles, and Wayuu company through submission brought claims for impacts by the COMPLAINTS ASSOCIATED WITH THE RIGHTS OF INDIGENOUS COMMUNITIES 2014–2017 traditions and customs. To of an online questionnaire. mining operation. The purpose is to evaluate the process and efficiency ensure adequate coverage, we • We conduct random audits of the measures adopted by the took into account the rotation of 22 companies, making up company to manage and handle those
350 350 of this staff and adjust the 5% of all contracts currently Office Complaints impacts (including compensation). • Move forward with actions aimed at 321 methodology in accordance in effect with a value greater improving the process of responding 300 300 294 with the educational level than USD 80,000. It is more to complaints, focusing efforts on of security personnel. critical on the labour level developing a functional system 254 that includes technological tools to 250 248 250 • We held five roundtables with with these contracts to make recording information about indigenous communities review aspects like the the different activities easier. 200 200 with the participation of the prohibition of child and • Strengthen the training tools in private security companies forced labour, guaranteeing 150 150 Human Rights for employees and that provide us with security freedom of association contractor companies in the next two years, along various lines services and the public and collective negotiation, 100 100 differentiated by level of risk. security forces that operate eliminating discrimination
50 50 in the area. The goal was to and implementing strengthen engagement, get disciplinary measures, 0 0 feedback on the public and working hours and payment. 2014 2015 2016 2017 private security services, and Human Rights Training CERREJÓN SUSTAINABILITY REPORT 2017 DECENT JOBS AND ECONOMIC GROWTH 36 ― 37 GOALS: 2 / 6
1. We create value Creating Employment, diversity We look after Cerrejón’s jobs resources as if they were There are 5,997 people working at and supply chain ccording to the Interna- our own and propose and Cerrejón. Sixty-eight percent of us tional Labour Organiza- carry out ideas to achieve come from La Guajira, and we are A tion (ILO), the global the best possible results working to make our operation safe, unemployment rate sta- in all company areas be responsible towards the natural bilized after increasing in 2016. The for the purpose of doing environment surrounding us, and to 2017 rate is calculated as 5.6 percent, better and achieving do our jobs in a healthy, productive with the total number of unemployed maximum productivity. work environment. Over the years, exceeding 192 million. According to its we have implemented various initia- report “World Employment and Social 2. Capable of change tives to stimulate women’s roles in Impact: Trends 2018,” the vulnerable We are always evolving mining activities. We have a cons- employment figure is increasing while and adapting to the tructive relationship with our unio- 4 the rate of reduction in the number of specific circumstances nized employees, promoting different working poor is decreasing. In 2017, of the company, region training activities to expand their approximately 1.40 billion workers held and country in order to abilities and implementing a system vulnerable jobs, particularly women in overcome challenges to ensure the health and safety of our developing countries (82%) compared and be sustainable. workers. We share with our contrac- to men in emerging countries (72%). tor firms the responsibility with our In Cerrejón’s case, our employees have 3. Flexible and simple environment and with our workers, been considered the company’s most We make our processes and we are challenged with conti- valuable resource from the beginning easier, make decisions, nuing to strengthen these actions of our mining operations. Consequent- and act to reach higher throughout our value chain. ly, we focus on promoting their health levels and achieve We create 5,997 direct jobs at and safety, strengthening their abilities, better results. Cerrejón (78% of indefinite length and creating a work environment that and 22% fixed-term) and hire the promotes fairness and equal opportu- 4. Empowered services of more than 6,100 people nity. In our hiring, we favour local and We own our results, through our contractor companies. regional applicants, including fairness trust in others and We are aware of the importance and diversity criteria. Along the same work as a team. of promoting fairness and equal lines, we promote responsible leaders- opportunities in our organization. hip concerning risk management at all 5. Awareness of self- That is why 68% of our employees management and supervisory levels. protection are natives of La Guajira, and star- In 2017, we continued strengthening We are committed to ting in 2017 we established a po- the five cultural attributes essential watching out for our licy and annual goals seeking to to the company, which reflect what safety and health, increase the proportion of women, we want and require to carry out our promoting a balanced indigenous people and residents of operations. work and personal life. neighbouring communities. CERREJÓN SUSTAINABILITY REPORT 2017 38 ― 39
EMPLOYEES BY REGION HIRING ORGANIZATION CHART We hired 370* workers in 2017 (61 women and 309 men), 20% more than the year before. 66% 26% 3,989 employees 1,537 from other areas They come from: La Guajira - 250 persons are La Guajira natives. of the coastal region. Coastal Region - 97 persons Rest of Colombia - 23 persons
429 8% Roberto Two (2) employees By age 469 come from range Junguito the rest of Colombia are foreigners. Pombo 370 5 CEO
+60 > 50 years old 307 310 OUR PERSONNEL BY GENDER Jon Evans
7% 93% 154 440 Women 5,557 Men 244 30 - 50 EXECUTIVE years old VICE PRESIDENT, OPERATIONS
211
< 30 years old
2013 2014 2015 2016 2017 Claudia Lina Luis Jorge Álvaro Hernando Juan Carlos TOTAL 5,997 *Figure excludes trainee contracts and people hired more than once in the same year. Bejarano Echeverri Aparicio Álvarez López Fortich Consuegra
EMPLOYEES BY TYPE OF POSITION VICE PRESIDENT, VICE PRESIDENT, VICE PRESIDENT, MANAGER, MANAGER, VICE PRESIDENT, VICE PRESIDENT, Aprentices Professional Analysts Professional Management Professional Supervisory Techncial FINANCE PUBLIC AFFAIRS AND PLANNING LEGAL HUMAN RESOURCES PRODUCTION MAINTENANCE COMMUNICATIONS AND PROJECTS AND SERVICES and Specialists Personnel Personnel Personnel
81 291
4,839 333 453 CERREJÓN SUSTAINABILITY REPORT 2017 40 ― 41
our structure by age OUR STRUCTURE BY GENDER TURNOVER RATE Women comprise 7% of our work force 6.00% Under Between Over 4.62% 30 30 - 50 50 5.00%
5.25% Men Women Senior management 0 2 5 4.00%
3.00% 3.45% 3.24% 2.81% Operations personnel 2.00% Management/Executive
1.00% Other administrative personnel Management / 0 3 13 0.00% Division heads Executive /Superintendents/ 2013 2014 2015 2016 2017 General Superintendent
1 TURNOVER RATE BY REGION AND GENDER 15
Division heads / 0 28 30 La Guajira 49 9 Superintendents / General Superintendent 4.77% 145 Persons Rest of Colombia 7.80% Rest of 7.10% 101 Coastal 31 Persons Region 4,877 253 325 128 Assistant 34 188 111 Persons 5.7% 6.6% Superintendent, 258 19 Men Women Supervisors and Line Supervisors
Men Women
Other administrative 37 267 149 TURNOVER RATE BY AGE personnel
286 47
5 2
1.7% The turnover rate 45 decreased by 0.63% 12.1% Persons 227 compared to 2016. Senior management Persons Wayuu workers Operations 955 2,655 1,520 accounted for 0.12% personnel 1.8% of the turnover total. Assistant Superintendent, 5 Supervisors Persons and Line Supervisors
> 50 year old 30 - 50 year old < 30 year old CERREJÓN SUSTAINABILITY REPORT 2017 42 ― 43
Wayuu traditions and customs adaptation to the mining environ- Implementation Resources and Services manage- due to the high occupation of ment and promotion to leadership Leaders are responsible for imple- ment, or providing opportunities to Fairness these positions by personnel positions within the company. menting and administering this poli- confidentially file claims so they can who belong to this ethnicity. and Equal On this journey, we have come to cy, maintaining a work environment be investigated and resolved. understand that the topic of equali- • Trained more than 1,000 women free of discrimination, and identif- In 2017, we participated in the ran- ty must have a comprehensive pers- in leadership programs. ying and promptly resolving any pro- king performed by Aequales, a priva- Opportunity pective and, even though the focus on blem related to equal opportunities in te company that provides consulting women in the operation continues to Hiring employment. services to transform organizations be an important challenge, we must In the recruiting and selection pro- through gender equality and diver- continue to work on the promotion of cesses, we include résumés from Follow-Up sity based on the organization’s eva- equality on all fronts in our company, men and women, attempt to obtain At Cerrejón, we reject any type of luation in four areas: management including the inclusion of Wayuu an equal proportion in accordance harassment, discrimination, intimi- of objectives, organizational culture, personnel, taking into account their with the position's requirements, and dation or reprisals due to exercising organizational structure and talent errejón wants to con- conditions for promoting the role of traditions and customs. Therefore, we in those cases in which the job des- the rights protected by our policy. We management. As a result, we were duct an operation that women in this kind of activity. To that have: cription permits it, we apply selection have thus created various channels ranked 25th out of 110 private sector C acknowledges and fa- end, we formed a Committee of Wo- • Established a hiring goal with a criteria intended to favour minority for filing complaints on any poten- organizations: vours diversity by virtue men in the Operation to review (with focus on diversity. In 2017, 45.6% populations (e.g. women, indigenous tial case, including engaging in direct of gender, age, race, colour, ethnic ori- the managers in Production and va- of the professional personnel peoples). dialogue with supervisors or Human gin, religion, sexual orientation, politi- rious support areas) issues associated and 18.5% of the operating cal opinions and any other relevant with infrastructure, policies, equip- personnel hired were women condition. We wish to promote equali- ping women in operational areas, and and Wayuu indigenous people. AREAS UNDER EVALUATION ty of labour opportunity among our promoting the assignment of a greater • Transformed our Equal Cerrejón Average Answer by participants Top 10 collaborators and foster fair treatment number of women in these activities. Opportunity Policy into the Equal based on respect as a fundamental This was how we achieved it:: and Fair Opportunity Policy. 91.4 component of our business strategy. • Conducted interviews and • Participated in a gender equality We initiated actions to promote the workshops with 75% of the ranking that has allowed us role of women in the operation a deca- women in the operation to gain to learn about various scales 72.3 de ago. But our vision concerning fair- a greater understanding of the on which we can establish 67.8 ness has been transformed into a issues we should address. 64 action plans and learn about 61.3 61.3 1 Pfizer more comprehensive long-term plan • Initiated internal and external national best practices. that not only allows us to continue en- campaigns to promote the role of 2 Fundación Plan • Created an Equality Committee couraging a leadership role for wo- women in the mining industry. 49.8 3 Sanofi in the company with 46.7 men in the mining industry, but also • Created changes in 4 Jhonson & Jhonson representatives from the three 41.2 to create more fairness throughout equipment, such as uniforms offices from which we operate 5 P&G the entire organization and achieve produced by women. 32.8 32.6 (Bogotá, the Mine in Albania and 29.1 6 Citibank change that extends beyond the • Installed bathrooms for women. Puerto Bolívar), having different workplace. • Increased the awareness and 7 3M Colombia S.A. ages and origins, professional Mining has traditionally been a sensitivity of supervisors. 8 SAP training and career paths, in masculine industry, where the techni- order to promote initiatives 9 Equion cal and operational positions (which We believe this phase's greatest that will allow us to make 10 Codensa - Emgesa make up the largest segment of em- achievement was the establishment Cerrejón a more fair, diverse ployees in our organization) have of guidelines for the comprehensive and inclusive company. been occupied by men. That was why, development of women in the ope- 25 Cerrejón when we began to work on fairness ration, so we defined career paths • Changed the private security Management Organizational Organizational Talent uniforms in accordance with issues, our priority was to create better that would permit their development, of objectives culture structure management CERREJÓN SUSTAINABILITY REPORT 2017 DECENT JOBS AND ECONOMIC GROWTH 44 ― 45 GOALS: 6 / 8
Fairness Results such as training in the safe operation
Committee • We revised the fixed-term es Safe and of some heavy equipment with simu- In 2017, we started our first Fairness hiring during pregnancy lators, work at heights, load manage- Committee in which six men and six policy (5 to 6 months). Healthy Work ment, electrical work, blasting, work women (of different training, origins • The making and changing of on slopes and work on the railroad
and functions in the company) pro- private security uniforms was pportuniti Environment operation. O
mote initiatives that permit Cerrejón placed under the charge of Wayuu d In 2017, we invested approxi- We have come a long to become a more fair, diverse and women, promoting the traditions mately USD 1.3 million in occupa-
an way in strengthening inclusive company. In this first year and customs of the community and the region's job skills, tional health and approximately and we continue to of training, the Committee worked generating 80 potential new jobs. es ng work on strategies USD 2 million in industrial safety e to define their scope and responsi- • Starting in 2017, a plan was that will permit us to for a total of USD 3.3 million. This make our workforce bilities, work model, preliminary initiated to upgrade facilities was a historic year with respect to increasingly more Chall analysis in matters of equality and and infrastructure in light of inclusive and diverse. he International Labour person is responsible for heeding their safety since we had no fatalities and short-term work actions. Its main the increase in the number Organization indicates health, applying safety rules and re- our lowest ever recordable injury fre- The next step will be challenge will be establishing plans of women in the operation. to create a fairness T that every day 6,300 porting any identified unsafe situation quency rate (RIFR). Additionally, the for positioning company mechanis- In 2017 alone, COP 289 M was work plan based on people die because of in a timely fashion. Cerrejón in Motion program managed ms, policies and strategies in matters invested in the remodelling our policy. We have accidents or work-related illnesses in In 2017, we worked to identify as- to surpass its membership and parti- defined a corporate of fairness, promoting the importan- of facilities for this purpose. hiring key indicator the world, which means more than 2.3 pects for improvement within our cipation goals, having as of the current ce of diversity and designing a me- • We maintain temporary positions (KPI) in order to million deaths per year. Likewise, an- Work Safety and Health Management date 4.000 members and achieving re- gradually increase dium- and long-term action plan that for pregnant women when their the percentage of nually more than 317 million work ac- System (SG-SST, its initials in Spanish) ductions in absenteeism, occupational manages to incorporate an ethnic normal activities can represent a women and Wayuu cidents occur, resulting in many cases and to continually highlight well-exe- disease and lost days rates. and diversity component and pro- risk to their pregnancy. In these indigenous people of work absenteeism. Therefore, the cuted tasks, thereby motivating our hired to fill vacancies motes respect for human rights and cases, they are reassigned to and retirement va- prevention of illnesses and work acci- workers to continue protecting their Key Factors for the traditions and customs of the administrative and filing activities cancies in upcoming dents has become a focus of special health as part of their daily activities. 1. Self-Care years until it reaches Wayuu ethnic group. that do not pose any potential risks.. attention for every industry around This system is certified under the OH- We focus on self-care, 30% of technical personnel and the world. SAS 18001 standard, which permits us strengthening each worker's 45% of professio- Since the beginning of our opera- to meet the requirements demanded responsibility to take the nal personnel. tion, completing jobs under the best by Colombian law. necessary measures to In terms of equality, safety precepts has been a fundamen- With respect to the control of occu- preserve their health and our greatest challenge tal value. We have therefore imple- pational diseases, we are integrating operate in safe conditions. is to find common ground within the mented a Safety, Health, Environment industrial hygiene and preventative 2. Ongoing Recognition values that promote and Community policy through which and occupational medicine processes We systematically reinforce the best practices in matters of fairness. we protect the lives and integrity of in order to identify occupational risk recognition of good deeds with Other challenges our workers, and promote their safety conditions in a timely fashion and respect to safety and health in are to promote fair and health in an optimum workplace implement controls to mitigate them our operation's daily activities practices that go beyond the workplace in order to prevent accidents, illnes- through Epidemiological Monitoring 3. Occasions for Dialogue and in order to contribute ses and any situation that could pose Programs, among other activities. Participation to national goals in terms of fairness, with a risk to their physical integrity or to Likewise, we have a Fatal Risk We opened additional occasions a special emphasis that of the personnel of contractor Management System that starts with in the Joint Committee for Safety on the topic of gender companies. the identification of unsafe condi- and Health at Work (COPASST) to as it represents a significant challenge In order to achieve this goal, we are tions that could cause a fatal incident discuss key topics on this front for our industry. adopting nationally and internationa- and the implementation of controls with personnel from throughout lly recognized standards and practi- that avoid their materialization. Du- the operation. We set up monthly ces at our operations while promoting ring this process, we have established meetings between the vice a culture of self-care in which each actions to mitigate our critical risks president of Operations and union CERREJÓN SUSTAINABILITY REPORT 2017 46 ― 47
leadership in order to address Cerrejón In 2017, we exceeded our goals of Occupational Prevention of occupational diseases topics related to industrial safety in Motion adherence and participation in the Diseases Since 2016, we have been strengthening the hygiene and control skills of our occupational and health in our workplace. We This program began in 2013 as a pilot program, achieving the active parti- There were 13 cases of occupational health and safety leaders to ensure that the prevention, mitigation and follow-up measures have thus managed to evaluate program, with nearly 200 people from cipation of 3,509 individuals (60% em- illness in 2017 (all in men), which is are correctly implemented, and that our 3,307 employees with the highest risk of acquiring and improve safety conditions three municipalities in La Guajira ployees and 40% family members). We one less case compared to 2016. work-related diseases may operate safely, while also maintaining their health. in the operation as well as the participating to promote a culture of increased the total number of partici- This figure is equivalent to 0.186 for implementation of improvements self-care and generate healthy living pants by 24.3% compared to 2016, and every 200,000 hours worked. in related processes. habits among our workers and their we attained 69% adherence for them.. Types of Number of workers Main prevention, mitigation families, contractors and the com- exposure who carry out and monitoring measures In 2017, we achieved a record munity of La Guajira. This initiative, Seminar on the Culture of Care 0.20 0.189 the activity 76,216 hours of participation which now has the support of local in La Guajira 0.186 in industrial safety and health municipalities, the Departmental In order to continue promoting heal- activities at the operation. Institute of Sports of La Guajira, and thy living habits, we held this first 0.167 employee and cooperative funds, cu- meeting in May 2017 in Riohacha, Exposure to noise 3,260 Redesigning processes, cabin enclosu- rrently has more than 4,000 active in partnership with the Colombian levels above the res, decreased exposure time, medical corrected TLVs* surveillance, new technologies and members in La Guajira, Valledupar, Heart Foundation, and with the par- 0.15 tools, monitoring of the air-tight status Barranquilla, Santa Marta, Cartagena ticipation of other regional and na- of mining equipment cabins and the and Bogotá. tional institutions. The importance use of personal protective equipment. The program generates around 15 of self-care regarding good nutrition direct jobs and 13 indirect jobs and and regular physical activity was dis- also contributes to the region’s social cussed in more than 10 lectures led development. It was awarded a 'High by doctors, nutritionists, psycholo- 0.10 Distinction’ HSEC (Health, Safety, En- gists and other healthcare professio- vironment and Community) award in nals. More than 400 people attended Exposure to 47 Road wetting, dust suppression particulate matter systems, covered coal conveyor the Health category by BHP, one of our this event. with a silica content belts, temporary storage silos for RECORDABLE INJURY shareholder companies. that exceeds the loading trains, ships with effec- FREQUENCY RATE (RIFR) corrected TLVs* Based on three pillars (physi- tive emissions-control systems Absenteeism and maintenance of the enclosure 0.11 for every 200,000 hours of exposure cal activity, healthy eating, and The percentage of absenteeism 0.05 over the number of hours worked. of mining equipment cabins. cross-cutting educational proces- for 2017 was 3.64%. This result was 0.11 Men 0 Women 0.11 Contractor companies ses), the model has contributed to lower than the previous year thanks 0.3 lowering obesity rates, thus provi- to the strengthening of self-care and ding favourable results based on a permanent adherence to good prac-
0.23 survey of 357 participants: tices. Although we do not monitor 0.21 • 95% of participants consider contractor absenteeism related to 0.00 0.19 that the initiative improved health causes, we are notified if the- 2015 2016 2017 0.2 *TLV - Threshold Limit Value: Maximum concentration allowed for exposure of workers to their work performance.. re are deviations in the audits by the different occupational risks. • 93% improved their Colombian Safety Council. 0.11 family relationships. Collaborative research • 93.5% improved their eating habits. We started a study (which will end in 2018), along with Sintracarbón, on the possible relations- 0.1 • 89% improved their quality of sleep. hip between working conditions and respiratory diseases among Cerrejón’s workers. This study • 94% considered that the was carried out with the participation of 10 researchers from the University of Rosario and with 3.74% Men 2.76% Women participation of a family member technical supervision by the Colombian Society of Occupational Medicine (SCMT, its initials in 4.2 increased their enthusiasm 3.67 3.64 Spanish). It is the first time we have conducted a scientific study together with Sintracarbón, 0 and longevity in the program. which generates more trust in the results. 2014 2015 2016 2017 2015 2016 2017 CERREJÓN SUSTAINABILITY REPORT 2017 48 ― 49
Ratio of lost days Follow-Up Work reinsertion success of the relocation process, (Calendar days, excluding the day of the accident) Committees Health Committee with program and its sustainability over time, es The result of the ratio was 2.16, the lowest in the Joint Committee on Safety and Sintracarbón In order to ensure reinsertion into the employees’ relatives, the ARL, and last five years. Health at Work (COPASST) Comprised of 12 representatives, workforce under safe and healthy other actors associated with social Men: 2.32 Our employees (50% representation) four from the administration and conditions of employees who, due to security are involved, in addition Women: 0 actively participate in a delegation eight from Sintracarbón, the majo- a health situation, cannot return to the to Cerrejón’s personnel. In 2017, we
opportuniti To maintain
Contractors: 1.80 of 16 people elected by the workers (8 rity union at Cerrejón. position for which they were hired, we created 47 positions for the work re- d fatality-free 14 representatives from the mine wor- have implemented a program that in- insertion process. an operations. kers, 4 workers from Bogotá and 4 Committee with cludes: training in computer software, 12 To consolidate from Puerto Bolívar) and 16 appoin- Sintracerrejón involvement of the employee's fami- Strengthening es ng
11.6 e 10 the Fatal Risk 10.1 ted by the Cerrejón administration. Made up of eight representatives, ly and psychosocial support, ongoing the emergency Management 8 Issues such as the investigation of four from the administration and medical surveillance, evaluation of response structures System. Chall 6 work accidents, planned inspections four from Sintracerrejón. This com- the ergonomic and general health and We restructured this system in 2017 To continue 5.09 lowering the 4 and the review of epidemiological mittee deals with health issues and safety conditions of the new assigned by inaugurating an Emergency Tra- recordable injury 2.16 surveillance systems are evaluated all other issues related to workers position and physical conditioning ining Centre, increasing the number 2 frequency rate. by the committee. affiliated to this union. (depending on their specific health si- of emergency response members at 0 tuation) at the gym located at the com- the Mine from 130 to 270, equipping it To decrease 2014 2015 2016 2017 the level of pany's facilities, during work hours. with additional emergency response absenteeism An internal classification is used to teams, adding eight staff members due to health situations to monitor the location and performan- to the Emergency Response Centres below 3.4. ce of these employees. We also have and replacing three ambulances to ongoing interactions with different improve response times. To continue to lower the work social security entities to ensure the illness ratio to best health and safety conditions for <0 for every this staff. 200,000 man- hours worked. The 155 employees participating in the program have continued wi- To maintain participation in thin the company, performing their the Cerrejón In duties safely. In order to ensure the Motion program at a minimum of 2,300 workers and the percentage of adherence to the program at 72%. CERREJÓN SUSTAINABILITY REPORT 2017 50 ― 51
INTERNAL AWARENESS-RAISING AND TRAINING Training and Well-Being IN WORK PRINCIPLES AND ENVIRONMENTAL MANAGEMENT Work Principles Environmental Management
Professional AVERAGE TRAINING HOURS 2017 AVERAGE HOURS OF TRAINING Management Personnel 250 2 PER GROUP OF POSITIONS In 2017, we conducted 8,030 hours of Professional 882 32 awareness and training on work principles, 58 Supervisory Personnel and 521 on environmental management. Professional 1,215 19 450 Analysts and Specialists 57 Techncial 48 49 3,371 232 44 Personnel 400 383 Aprentices 2,312 236
2013 2014 2015 2016 2017 350 0 500 1,000 1,500 2,000 2,500 3,000 3,500
300
Aprentices AVERAGE 2017 250 TRAINING HOURS PER GENDER
M 200 58 en • Human Rights. Respect and We had 521 active courses in 2017, PERCENTAGE OF TRAINING SESSIONS PER TYPE OF SKILLS promotion of human rights which allowed us to strengthen our Wom Functional Categories, en Technical Skills 150 throughout the operation, workers’ skills by focusing on the fo- Personal Efficiency and Managerial Development Professional national and international laws, llowing categories:
8 11% 4 Supervisory Professional 100 Techncial Professional and workers’ rights and liberties. • Techniques. Training aimed at Personnel Management Personnel Analysts and Personnel • Ethics and Guidelines for the improving operational technical Specialists 62% Prevention of Corruption. skills: 322 courses. 27% 50 43 Integrity, honesty, prevention of • Operational Integrity. Training on 42 33 Operational 28 corruption. safety, health and environmental Integrity Skills 0 • Equity and Equal Opportunity. issues, and communities: 94 We administer our personnel courses. policies, programs and • Functional, personnel practices, in all aspects, effectiveness, and managerial t Cerrejón, we promote work skills. This is why promoting apprenticeship training and rein- without discrimination based development. Functional — a healthy, respectful our workers’ skills has been one of forcement of operational practices on gender, age, race, colour, specific training appropriate ACTIVE COURSES 2017 A and safe environment our priorities, and it is the reason we while, in Maintenance, we focused on ethnic origin, religion, sexual to the technology of each area; 560 for our employees, ba- carry out continuous training and developing the skills of our current orientation, political opinion personnel effectiveness — 544 sed on transparent and constructive evaluation programs that allow them technicians. or any other condition. training focused on developing 540 521 dialogue, the generation of decent to perform their work safely and We include topics such as em- • Productive Work Environment. staff skills; and managerial 520 and fair working conditions regar- effectively. ployment engagement and benefits Any form of stalking or development — training aims at 519 500 ding compensation, recognition and We provided 345,554 hours of tra- in our induction process, as well as harassment of a sexual, ethnic improving the knowledge and 480 remuneration, the establishment of ining in 2017. The results of some training on the following company or racial nature, or for any other skills of different supervisory 480 benefits to improve the quality of life of these efforts were seen in areas policies: reason, by and toward employees, levels: 105 courses. 460
of our workers, and by empowering such as Production and Maintenan- contractors, suppliers and 440 and strengthening them in terms of ce. In Production, we carried out customers is prohibited. 2014 2015 2016 2017 CERREJÓN SUSTAINABILITY REPORT 2017 Decent jobs and Industry, innovation economic growth and infrastructure 52 ― 53
GOALS: 3 / 6 / 8 GOAL: 3
The Well-being of our Workers The main benefits for a worker at Cerrejón are listed below. Engagement with Trade Unions
Main 2016 2017 Covers Covers Only errejón has two trade Benefits Investment Investment All Employees unions: Sintracarbón (In millions (In millions Employees by Agreement of COP) of COP) C and Sintracerrejón. To- Composition of the trade unions In 2017, we started negotiating a gether, they account new collective bargaining agreement, Complementary healthcare plans to meet the medical needs of Sintracarbón Sintracerrejón for 3,923 workers, representing 65.4% with each trade union presenting its our employees and beneficiaries in a private healthcare program. 29,009 33,565 Yes of our workforce. We have signed list of demands. In this new process, Security Plan to promote long-term savings and asset-building 20,525 21,405 Yes 16 collective bargaining agreements 3.822 125 101 we have promoted respectful dialo- with Sintracarbón and two with gue and the joint work between the Housing loans under better market conditions. 9,643 17,349 Yes Sintracerrejón. parties. Comprehensive Insurance Plan aimed at financial security and protecting the families of our employees 7,939 13,529 Yes in case of death due to natural causes or disability.
Productivity Bonus. Encourages our employees to comply Challenges and Opportunities 7,253 8,328 Yes with operational goals and safety and quality indicators. Travel expenses for medical treatment, and assistance to cover travel and accommodation in case of medical 2,291 2,871 Yes treatment in a city other than where our employee resides. In 2017, we started negotiating a new collective bargaining agreement, with each trade union presenting its list of demands. In this new process, we have Educational Aids. Aid in covering the costs of school and promoted respectful dialogue and the joint work between the parties. university education for the children of our workers. 17,061 21,051 Yes
Educational Assistance Plan. Helps our employees develop skills that allow them to perform better in their current 298 224 Yes position or positions they may hold in the future.
Special Bonus to encourage our employees to comply with operational goals and safety and quality indicators. 16,699 1,202 Yes Supply Chain Conventional Loans. Financial support for our 3,547 578 Yes employees with financial difficulties. Conventional Aids. 664 272 Yes ur supply chain is made • We evaluate 100% of the suppliers 100% of the companies we are Holiday Bonus. 19,039 20,360 Yes up of suppliers and who participate in our contracting going to hire contractually. Christmas Bonus. 17,847 18,848 Yes O contractors from diffe- processes with the SA 8000 • We evaluate 100% of the Conventional Premiums. 5,035 8,122 Yes rent sectors, who offer Standard (labour management companies that participate in the the goods and services required to and occupational health). SA 8000 contracting processes in terms of carry out our operations. is an international certification their standards and performance We work to ensure that our enti- standard that encourages in industrial safety. We demand re supply chain is aligned with the companies to develop, maintain low levels of accidents and Challenges and Opportunities principles of our business model and and apply socially acceptable severity, and high scores in the make certain that it complies with practices in the workplace. evaluation of safety, occupational Cerrejón's policies and guidelines. • We evaluate financial capacity health and environmental To improve the capacity and quality of training to address the To train personnel To continue to improve Our aim is to promote ethical, (in hiring processes), perform systems for contractors. growing demand for generational changeover. Approximately in the operation and our safety and pro- 800 employees will retire and receive a pension in the next maintenance of the ductivity indicators for safe, and professional behaviour, in legal validation, and make • We perform due diligence five years, and their replacements must be trained to take new mining equipment the different company compliance with the highest stan- database queries in terms of processes for all our contracts and over their functions in a safe, timely and productive manner. that will be replaced. processes and areas. dards, for all actors who participate in anti-corruption and money master orders (contracts with multi- our operation, directly or indirectly. laundering (SARLAFT) for year purchase agreements) and for CERREJÓN SUSTAINABILITY REPORT 2017 54 ― 55
purchases > USD 10,000. We carried The Purchasing and Stages of the Process out 494 due diligences related to Contracting Process Purchases Contracts ES purchases and hiring in 2017. We promote sustainable commercial Purchase and 1 contract planning 1 • We have two types of purchases: relationships with the companies LA GUAJIRA 30 suppliers 131 suppliers direct charge (occasional) and by supplying goods and services to our Hardware, wood products, signalling Construction, transportation, road signalling,
master order. The second is for operations, aligning them with our 1 2 Supply strategy of areas (safety), artisanal crafts, industrial cleaning, topography, vehicle items of recurrent use, for which corporate guidelines, especially with and gasoline for light-duty vehicles. leasing, tool maintenance, agricultural To continue the work and reforestation, clearing out brush, strengthening we make price agreements with the Ethics Policy and its Guidelines 1 operation of agricultural equipment, Preliminary selection of 3 program with a group of suppliers at a given for the Prevention of Corruption and suppliers and contractors psychosocial support, irrigation of the 21 initial roads, maintenance of communications time in order to have a favourable the Policy of the Auto-Monitoring companies to ensure equipment, agency advertising, and implementation
1 Submission of and sustainable relationship. System and Management of the Risk 4 training on use of mining equipment. OPPORTUNITI AN D ES NG of what has been requests for bids E • We carry out "cross-reviews" of of Laundering of Assets and Finan- learned, and support in search the procurement and purchasing cing of Terrorism. Likewise, we try DOMESTIC HALL of new markets. 588 suppliers 468 suppliers C processes (internal reviews to encourage the hiring of suppliers Receipt of bids 1 5 amongst employees of the from within the region and to streng- Hardware, furniture, tools, welding, che- In addition to the services detailed in New cycle of micals, personal protection elements, La Guajira (which are also contracted strengthening
purchasing and contracting then their businesses. 1 6 Evaluation and uniforms, and support for national with national suppliers), in the rest of to include 20 departments) in order to take We ensure the autonomy and in- recommendation of awards initiatives for repairing components. the country we contract out repairs additional La Guajira corrective actions. Furthermore, dependence of these companies, both to equipment and components. companies. Improvement our shareholders arrange for administratively and operationally, 1 of agreement 7 external audits. We received and allow them to be responsible for two internal audits and one their personnel and the provision of INTERNATIONAL 270 suppliers 42 suppliers Contract
1 8 external audit performed supplies in order to provide the agreed administration Supplies for the operation, such Consulting. by Glencore in 2017. upon services or goods. as diesel for mining equipment, We manage the contracting of tyres, ammonium nitrate, mining equipment, and spare parts. We have a team of 20 people in the suppliers and contractors required Purchasing and Contracting depart- by our operation through interdisci- Any company that wishes to ments, and more than 200 contract ad- plinary teams, with agreements that submit its offer may do so through ministrators, including a certification comply with the highest technical the platform provided for contrac- process, to manage direct engagement and industrial safety standards, at a tors and suppliers on our website at Results • 15 companies participated between suppliers and the company. competitive cost. www.cerrejon.com Business • We contributed to the in a business forum held We carry out our contracting pro- Strengthening strengthening of 21 by Cerrejón which served 2017 INVESTMENT IN PURCHASES AND CONTRACTS cesses with an online digital tool Program companies in terms of as a setting to present ACCORDING TO REGION (BPM), which allows us to guarantee Through our commitment to the human management, their portfolios of products (MILLION OF COLOMBIAN PESOS) Purchases Contracts efficiency, transparency and integrity socioeconomic development of La legal management, and services. in our processes. Guajira, we seek to strengthen bu- general management, • 19 of these companies 8,202 sinesses in the region and increase marketing, finance signed contracts Cerrejón’s contracts and purchases and organizational with Cerrejón and its La Guajira 56,224 within the department. For this re- management. Foundation, and five of 359,883 736,279 ason, we launched a Supplier De- • Six companies them signed or renewed velopment program in 2016 which participated in contracts in 2017. Domestic aims to promote local competitive- Expoguajira, the largest Annual invoicing is ness and develop better capabilities trade fair for the around COP 18 billion. 1,611,367 33,615 to strengthen La Guajira’s business commercial promotion of International fabric. the productive sectors of La Guajira. CERREJÓN SUSTAINABILITY REPORT 2017 56 ― 57
Management of environmental impacts
INVESTMENT IN ENVIRONMENTAL MANAGEMENT 206,365 (MILLIONS OF COLOMBIAN PESOS) 2%
Slope Stability
7% 170,000 Ground and Landscape
147,400 5 12% he world increasingly Environmental has more, and better, Management T information on how the environmental impacts 22% 114,575 of human activity affect our future Water and that of the planet. Likewise, to- 101,461 day various forms of knowledge and 98,057 technology can be accessed to identi- 57% fy and evaluate these impacts and to Air prevent them when possible, or to mitigate and compensate them when they are inevitable. Based on our commitment to comply with the law, achievement of the objectives esta- blished in the Sustainable Develop- ment Goals and the implementation of national and international stan- dards available in the mining indus- try, we work continuously to identify the necessary measures to generate the lowest possible impact.
2012 2013 2014 2015 2016 2017 Consequently, during the last seven years, our environmental investment has tended to rise, with an increase intended for the efficient use of water initiatives in the face of climate chan- of 52%. For 2017, this environmental and dust suppression in order to pre- ge, implementing energy-efficiency investment amounted to COP 206,365 vent negative impacts on employees, projects to reduce greenhouse gas million, close to 18% above what communities and the environment. emissions. was recorded in 2016. Seventy-ni- As an organization, we have ne percent of these resources were the challenge of working on larger CERREJÓN SUSTAINABILITY REPORT 2017 CLEAN Water and sanitation 58 ― 59 goal: 4
The responsible use of water, in addition to being one of the pillars of this comprehensive management, is one of our main Efficient use objectives within our own organization. As in previous periods, we have endeavoured to use low-quality water (unfit for human of water or animal consumption, or for crop irrigation) in all possible components of our operations in order to reduce to the minimum the collection and use of high-quality water (from the Ranchería River and its aquifer, using direct measurement at the uptake point). In 2017, we took additional measures that allowed us to continuously improve in water use, such as advances in water- saving systems and the installation of perimeter drainage canals that do not allow sediment and other contaminants to enter bodies of water. AMOUNT OF WATER (million m³) High-quality Low-quality Water in Mining Activity water harvested water harvested 2.6 2007 4.8 We have increased our collection of low- 2.1 2008 4.5 quality water by more ccording to the United Colombia, with an annual community and indigenous peoples than 151% over the 3.1 2009 4.5 last 10 years , due to Nations Conference on average rainfall of 0 to 500 mm, according to information from the the decrease in volume 1.5 2010 4.2 of high-quality water the Development of close to the Sahara Desert, where Management Plan of the Ranchería We have reduced our A consumption of high- withdrawals. Water Resources, in rainfall can be approximately River Watershed. quality water by more 1.2 2011 4.5 than 58% over the last 2018 more than two billion people 100 mm. The watershed covers about 10 years. 1.4 2012 6 worldwide lack access to safe drin- 20% of the total surface area of La 65% is destined for 1.2 2013 7.6 king water and more than twice that • Highly deficient in water Guajira, supplying almost 400,000 human consumption 1.3 2014 11.7 do not have access to sanitation. It is one of the regions with the inhabitants. inside our operations and for neighbouring This, together with rapid world popu- greatest water deficit in the As in other industrial activities, communities. 1.4 2015 16.7 lation growth, leads to estimates that Caribbean hydrographic area, water is a necessary input for mi- 35% is used in some 0.9 2016 12.6 industrial activities the demand for water will increase by with a dryness index of 0.6, highly ning operations. In addition, it re- that require the use 1.1 2017 11.9 slightly more than 30% for the year deficient in water compared presents an important opportunity of this water. 2050. to Quibdó (Chocó), one of the to catalyse and support collective While in our country there are no- municipalities with the highest solutions that contribute to im- teworthy achievements, such as ac- water surpluses in Colombia, with proving water security and sani- cess to drinking water for 6.9 million an index of <0.15. tation for all. This is what we have (1.1million m3) (11.9 million m3) people, according to the National understood since the start of our 8.6% of total 91.4% of total Planning Department’s second na- • Index of critical water use operations. tional voluntary report on the Sus- The pressure of demand exceeds Thanks to the lessons we have tainable Development Goals (SDG), in supply. learned and the knowledge we 28% 72% 6.2% 7.4% 86.4% Colombia and especially in La Guajira have acquired throughout our his- RANCHERÍA RIVER RANCHERÍA COLLECTION FROM COLLECTION COLLECTION OF AQUIFER RIVER DEWATERING OF FROM THE SEA RUNOFF access to water remains one of the • Low water retention and tory with respect to the availabili- Permeable rocks that In 2017 we withdrew COAL SEAMS Seawater Obtained from rain allow the circulation and only 13% of the total Water contained treated in our water that drains accumulation of groundwater volume authorized by the inside of coal seams desalination into the mine pits main challenges. regulation ty of water in the region, we have in its pores or cracks in the Regional Autonomous that accumulates in plant. and accumulates in Ranchería River. Corporation of La Guajira ponds. ponds. Although La Guajira has surface and La Guajira has the lowest water developed a Comprehensive Water from the river. groundwater resources, its geogra- retention and regulation in Management strategy that reflects phical characteristics, water stress, Colombia. our commitment and responsibility and vulnerability to phenomena to the promotion, conservation and Sources: National Water Study 2014, such as El Niño expose it to extreme IDEAM, Ministry of the Environment, Atlas responsible use of water on three droughts and water scarcity. A fur- of IDEAM and departmental IDEAM file. fronts: RE-USE OF RE-USE OF INDUSTRIAL WATER DOMESTIC WATER It is used mostly for dust This water is not fit for human ther complication is the geographical The watershed of the Ranche- 1. Efficient use of water. for washing of equipment 42,916 m³, 176,440 m³. suppression on the roads. or animal consumption or for which represents 4% of the water dispersion of its population. Accor- ría River has an area of 4,070 km2 We watch every detail of our watering crops. collected. ding to Fundesarrollo, La Guajira is and is located in the lower part of production process closely to THIS WATER IS REUSED IN OUR PROCESS six times the size of the Atlántico de- the department. The Ranchería Ri- protect this resource. AS LOW-QUALITY WATER. partment and has less than half its ver begins in the Sierra Nevada de 2. Watershed approach. DISCHARGES INTO BODIES OF WATER (52,215 m³) population, making it difficult for Santa Marta and, after a distance of We conserve and protect 0.73% 19.22% Discharges are authorized interventions and services offered approximately 248 km, empties into water resources to make them by Corpoguajira and are 35.05% by the State to reach all those who the Caribbean Sea in Riohacha, the treated to water-oil separation, sustainable. 45.01% sedimentation, stabilization need it. capital of La Guajira. This basin is 3. Participation in access solutions. ponds, and biological treatment, all in accordance with the • Precipitation 0–500 mm considered to be high in biodiversi- We engage with stakeholders to parameters established by La Guajira is the department ty and is populated by different cul- understand their priorities and current legal regulations. MADRE VIEJA TABACO BRUNO RANCHERÍA where it rains the least in tures. It is of vital importance to the participate in water solutions. POND CREEK CREEK RIVER CERREJÓN SUSTAINABILITY REPORT 2017 CLEAN Water and sanitation 60 ― 61 goals: 1 / 4 / 6
Ranchería River WATER Quality • work with communities to conserve A deep well was drilled in The water quality index of the Ranchería River is cal- Catchment Basin watersheds. the community of Charito culated following the methodology and estimations Protection As La Guajira has a water deficit, at These actions have made it pos- (municipality of Albania). of the Water Quality Index (WQI) established by the Cerrejón we promote actions aimed sible to plant in the areas of certain National Sanitation Foundation (NSF) of the USA. The Sustainable production systems at conservation and also water and headwaters and other bodies of water WQI assesses nine sanitation parameters: dissolved • Five tonnes of food grown, soil management, which are directed and seen the use of sustainable pro- oxygen, pH, temperature, faecal coliforms, biochemical valued at COP 16,614,600. at preserving and restoring regional duction systems (organic fertilizers, oxygen demand (BOD), nitrates, turbidity, total solids, • 2,200 kilos of bio-prepared micro-basins. This approach inclu- vegetable gardens, cleaner produc- and phosphates.. products produced. des conservation projects for the tion) in which the work of local com- watersheds of the Bruno, Pupurema, mittees and forest guards has been • 45 species of food crops grown. El Pasito, Majagüita, and Paladines fundamental. These programs com- ICA 2017 Annual Average Ecosystem connectivity creeks, providing social and econo- prise four components: in the Ranchería River • 36 preliminary voluntary mic benefits and promoting their Integrated water management agreements on conservation Classification Palomino Cuestecita sustainability. of the NSF WQI Station - Station - • 62 storage systems with of areas and implementation. These water-recharge zones su- Upstream Downstream 2,100-litre plastic tanks • Five community plant nurseries WQI WQI pply water for domestic as well as for domestic as well as built: four for conservation purpo- farming and livestock purposes. In 100-90 Excelent 77 – Good. 72 – Good. farming and livestock use. ses and one for commercial sales. 90-70 Good Before entry to At the exit of addition, they share cultural, biologi- • 191 people trained in the 70-50 Fair Cerrejón's area Cerrejón’s area cal and social information with the • Sale of 8,044 plants for a of influence. of influence. efficient use of water and the 50-25 Bad Montes de Oca reserve, the Serra- revenue of COP 36,198,000. management of solid waste 25-0 Terrible nía del Perijá and the Sierra Nevada • 1,200 plants planted in (45,000 kilos of waste collected). de Santa Marta. Thus, we actively riparian buffer zones along Main initiatives Pupurema Creek. • We implemented automatic reporting of water withdrawal and use to get accurate, precise data. Water governance The goal of this component is to • We updated a water-budget model to optimize provide communities with tools for our management of low-quality water and management so that they are res- achieve zero discharges in the short-term. ponsible for water solutions. The- • We approved a project to decrease leaks refore, we formed 28 committees, (accounting for unmetered water) and reduce achieving the following in 2017: our withdrawals of high-quality water. • Training 21 participants in the production and marketing of • We developed a management plan for water in the nursery plants through the SENA. dump sites to prevent erosion from affecting our reclaimed areas and bodies of water. The goal of • Strengthening seven local this plan is to design and build perimeter drains committees. to collect the water and lead it to holding ponds, • Launching a community thus preventing topsoil erosion and sediment- association in La Horqueta laden water from reaching bodies of water. (municipality of Albania), generating income for 12 families. CERREJÓN SUSTAINABILITY REPORT 2017 CLEAN Water and sanitation 62 ― 63 goal: 4
Access to water for Guajiran Communities
Since 2014, we have contributed to for a total water-storage the delivery points agreed access to water for these communi- capacity of 1.4 million litres. upon with communities. ties through various actions. • Distribution of 89 million • Repair of 106 windmill-driven litres of drinking water water pumps, providing about • 19 deep wells with an to our neighbouring 2.8 million litres of water a day. extraction system, storage communities using a tanker • Building 14 traditional and animal trough. wagon on our mining small reservoirs (jagüeyes) • 1,643 water tanks delivered train and truck tankers in areas with extended (500, 1000 and 5000 litre sizes) to transport the water to seasonal droughts.
Water supply and treatment solutions
Short-Term Initiatives
Beneficiary Litres of Drinking Water Litres of Safe Water Initiative Communities Delivered in 2017 Available Per Day Distribution of water 162 24,000,000 -
Repairing windmill-driven water pumps 27 - 1,166,400
Medium-Term Initiatives
No. of Litres of Safe Water Litres of Drinking Water Storage Capacity Initiative Participation in solutions Produced Daily Produced Daily (litres of water) Solution well + extraction + 2 30,000 - 40,000 Access Solutions storage + animal trough At Cerrejón, we work to aid in phy- sical access to water for Guajiran Optimization of current systems 3 20,000 80,000 295,000 communities by: implementing sui- table technologies for the collection, Comprehensive supply solution 1 In 2017, we implemented Phase II — Sanitation Infrastructure storage, distribution and treatment of water; strengthening the popula- Total 6 50,000 80,000 335,000 tion’s skills in its use and maintenan- ce; and comprehensive participatory management to promote sustainabi- lity of these systems. In 2008, our Foundations System Challenges and Opportunities created a specific line to support hand- ling water challenges, which cross- Continue to carry out Wherever possible, replace Contribute to creating Comply with the maximum allowable discharges cuts throughout our management to responsible, informed and the use of high-quality knowledge (especially locally) collaborative mining that water in our operations. about La Guajira’s reality in established in Resolution improve access to water and develop can significantly contribute regard to access to water in 0631 of 2015. solutions that respect ethnic diversi- to La Guajira’s challenges order to identify solutions in water security. deriving from the diversity ty and indigenous culture, prioritizing and know-how of different projects with indigenous and rural actors and points of view. communities. CERREJÓN SUSTAINABILITY REPORT 2017 GOOD HEALTH SUSTAINABLE CITIES RESPONSIBLE PRODUCTION AND WELL-BEING AND COMMUNITIES AND CONSUMPTION 64 ― 65 GOAL: 9 GOAL: 6 GOAL: 4
Emission Each mining plan is evaluated with a mathematical air dispersion control measures, which can even include changes to the model that predicts emissions generated by the operations mining plan (such as suspending operations in a specific area if Sources and dust concentrations in surrounding communities based on needed). Below we present our emission sources in the mining and planned volumes of rock and coal, topography and historical process and each of the controls used to prevent and mitigate air Dust Suppression in the Operations Control meteorological data. The model results determine the required emissions. Actions
EMISSIONS SOURCES ir quality is a fundamen- tal issue for us given the A nature of our open-pit
mining operation, 1 1 1V 1 1 1 1 1 1 SOURCE OF 1 DESIGN OF 2 REMOVAL OF 3 DRILLING TO 4 DRILLING TO 5 COAL 6 LOADING AND 7 CRUSHING AND 8 LOADING COAL 9 HANDLING OF COAL which has the potential to cause parti- EMISSION MINING PLAN THE TOPSOIL IN FRAGMENT THE FRAGMENT THE TRANSPORTATION STACKING OF TRANSPORTATION ONTO TRAIN AND AT THE PORT AT MINING TO COMMENCE AREAS SLATED FOR OVERBURDEN OVERBURDEN (ROCK) OVERBURDEN TO SILOS BY TRANSPORTING IT culate matter emissions into the air. PROCESS OPERATIONS MINING (ROCK) CONVEYOR BELTS Capacity This material, commonly known as for 20,000 and 10,000 dust, occurs mainly during activities gallons. involving hauling and the removal and handling of overburden, topsoil and coal. Consequently, we have focused on the design and execution of spe- CONTROL cific initiatives, plans and measures SOURCES (together with state-of-the-art tech- Dispersion model. Removal only of Water-based dust Use of low-flow Frequent spraying by Design of coal piles Closed conveyor Coal wetting, Inspection strategy nology) contained in our air-quality Prior evaluation on vegetation cover suppression system sprinkler networks tankers of overburden into shape and height belts for coal levelling, and in communities management system. We thus as- operational impact that is strictly on drills and dust skirts to wet areas before and coal hauling of truncated pyramids transportation. compaction adjacent to the port to on air-quality. necessary. during drilling to carry loading overburden roads to reduce dust to minimize wind while loading check and carry out sess, control, mitigate and monitor out blasting. and to mitigate generation. action on it. Sprinkler onto the train. cleaning activities. our operations' impacts with equip- emissions during systems at loading and unloading transfer stations. ment in and outside our operations. in dumps. Our air-quality management sys- tem is continuously being improved as, year after year, we research and take actions aimed at strengthening our control of dust emissions in our operations. This system comprises a dispersion model, application of controls, a reactive forecast system, Reclamation of Electronic time-delay Use of mist cannons Use of dust Water spraying Spraying of port Particulate matter suppression disturbed areas. devices to optimize to collect and suppressors system for the roads with sea or collecting systems in every monitoring of emissions in outside rock fracturing and sediment dust (biodegradable coal pile stackers/ water. coal supply, feed or unloading areas and an environmental oversi- reduce vibration particles from various chemical additive) in reclaimers. point, and transfer and and dust. emission sources. the water for roads unloading points. ght committee. to keep the dirt moist and compacted for In 2017 57% of longer periods of time. environmental investment were for air-quality All our sprinkler systems in our monitoring Spontaneous-combustion Use of high-flow sprinklers Inspection Direct loading system particulate matter control systems use and control control by means removing and mist cannons in coal strategy for the since 1985. material, adding water, yards to wet the material and length of the low-quality water not fit for human and sealing with asphalt reduce emissions. railroad tracks. consumption or for agriculture or emulsion. livestock and come from coal seams and runoff in the mining area. CONTROL AND MONITORING NETWORK – PREDICTIVE AND REACTIVE SYSTEM CERREJÓN SUSTAINABILITY REPORT 2017 GOOD HEALTH SUSTAINABLE CITIES AND RESPONSIBLE PRODUCTION AND WELL-BEING COMMUNITIES AND CONSUMPTION 66 ― 67 goal: 9 goal: 6 goal: 4
Results at the Mine Results in Puerto Bolívar Although the station at Provin- dispersion model for 2017 by estima- cial has measurement records da- ting the results. Finally, we reques- ting back to 2003, as of July 6, 2017, ted that the National Ombudsman’s members of the community have Office and Corpoguajira mediate in PM10 MONITORING RESULTS AT THE PORT (µg/m3) hindered the entry of Cerrejón and order to restart the measurements, 50 (µg/m3) maximum allowable limit
Corpoguajira to the monitoring site. and through engagement we ob- 60 In spite of this, we have followed up tained permission to enter up until 50 Externally Checking and monitoring on the effects of these operations on March 5 of 2018. Consequently, the Air Quality Predictive 40 We have a network of sixteen sam- The results of our air-quality ma- air quality by monitoring in real time data cannot be compared to the year- and Reactive 32 30 pling stations located in the area of in- nagement process are reported at the edges of the mining front near ly standard. 30 26 23 Measurement System fluence of our operations at the mine, to the competent environmental the reservation and validating the 20
To supplement our air dispersion the railroad and the port, which ena- authorities: 10 bles us to verify (based on regulatory 1. The Ministry of the Environment model, we use a real-time (meteo- PM10 MONITORING RESULTS AT THE MINE (µg/m³) 0 rological and scheduled air quality) standards) that there are no impacts and Sustainable Development. 50 (µg/m3) maximum allowable limit Huarurapay Malla Norte Escuela Cuatro vías
predictive and monitoring system on the health and well-being of our 2. The Regional Autonomous 60 neighbours. At these stations, we me- Corporation of La Guajira. comprised of internal stations loca- 50 44 PST MONITORING RESULTS AT THE PORT (µg/m3) asure total suspended particles (TSP), 3. The Air Quality Information 40 36 33 33 100 (µg/m3) maximum allowable limit ted on the fringes of our operations 29 10-micron particulate matter (PM10) System (SISAIRE, its acronym in 30 and external stations in the nearest 19 120 and meteorological variables. These Spanish). 20 downwind communities. 10 100 have historically indicated our regu- Additionally, our results are cons- 0 80 Inside the Operation latory compliance with the parame- tantly verified: Barrancas Patilla Sol y Vivienda Nuevo Campoalegre Sombra Roche 60 We have eleven stations that allow ters in this subject matter. For 2018, 1. Internal and certification audits 47 46 39 the real-time measurement and vi- we hope to supplement the system on our integrated management 40 33 sualization of the concentration of with the necessary means to measure system, based on ISO 14001-2004. PST MONITORING RESULTS AT THE MINE (µg/m3) 20 100 (µg/m3) maximum allowable limit suspended particles under 10 mi- 2.5-micron particulate matter, as per 2. Inspections by environmental 0 120 Huarurapay Malla Norte Escuela Uribia Resolution 2254 of 2017, which shall authorities to ensure compliance crons (PM10) and wind direction 96 100 be enacted as of January 1, 2018. with our air-quality plans and throughout the entire operation, 78 80 70 and an early alert system for taking In addition, concentrations of ni- controls. 66 60 58 48 immediate measures so as to avoid trogen oxides (NOx) and sulfur oxides 3. Air Quality Oversight Committee 40 38 (SOx) are monitored internally and which, in the course of 2017, 27 The specific conditions and risks at the operations in affecting any worker and commu- 20 externally every two years in com- became the Environmental Puerto Bolívar led the company to devise an additional nities in the area of influence of the 0 pliance with legislation. The results Oversight Committee with the risk forecasting system based on a predictive model at operation as well as to ensure and ve- Albania Barrancas Fonseca Papayal Patilla Remedios Sol y Campoalegre of this monitoring indicates that the participation of representatives Sombra the IDEAM’s weather forecasting station. rify the operations control level and values for these parameters pose no from our neighbouring guarantee our compliance with envi- risks to the health of our neighbou- communities, Corpoguajira ronmental laws. The implementation ring communities. (the regional environmental Challenges and opportunities of this system (which is unique in La- authority) and the University tin America) is an expression of our of La Guajira. This committee Comply with the Continue reinforcing Continue imple- Carry out continual Continue working commitment to the environment and is entrusted with following up most restrictive limits particulate matter ope- menting real-time monitoring on on empowering health of our employees, contractor on the application of control established in the new ration controls through forecasting and PM 2.5 according the communities companies and neighbouring com- Colombian air quality the implementation of follow-up strategies to the guidelines in air quality Our air-quality measures and monitoring results, standard (Resolution new technologies or on the various air qua- in the new air management. munities, as well as our compliance monitoring network is and participates in finding 2254 of 2017). improvements to the lity-related aspects. quality standard. current processes. with the standards set forth by the one of the largest of its opportunities to improve the nation’s environmental authorities. kind in the country. process. CERREJÓN SUSTAINABILITY REPORT 2017 life on land 68 ― 69 goalS: 1/5/6/8
BIODIVERSITY IN THE WORLD TOTAL PLANT SPECIES THREATENED VULNERABLE THREATENED CRITICALLY Biodiversity Biodiversity ENDANGERED at Cerrejón With a 69,346 hectare mining Brazil 1 6 Peru protection concession area (of which 14,188 Colombia 2 7 Australia hectares have been intervened), 4 and Cerrejón is located between two Indonesia 3 8 India 5 8 protected areas, the Serranía del 10 798 422 112 264 China 4 9 Ecuador preservation Perijá and the foothills of the Sierra 9 3 PLANTS 6 1 Nevada de Santa Marta, bordering Mexico 5 10 Venezuela 7 olombia is the second the Ranchería River (where various most biodiverse coun- streams converge), resulting in an Como país somos: C try in the world and area with a very high biological va- recognizes the impor- lue for Cerrejón. tance of learning and preserving In this zone, shrub cover and re- species as well as ecosystems, in covering fragments of dry tropical line with conservation efforts in 313 99 164 50 forests predominate, being one of other countries such as Brazil, Ecua- VERTEBRATES the three ecosystems that are the dor, Venezuela, Chile and Argentina. most degraded, fragmented and
Research conducted by the Hum- least well known, with only 5% of BIRDS PLANTS, AMPHIBIANS, PALM TREES MAMMALS AND ORCHIDS BUTTERFLIES AND AND REPTILES boldt Institute in 2017 indicate that the original covering estimated at 1º 2º FRESHWATER FISH 3º 4º Colombian biodiversity has dropped 80,000 km2. In addition, different 74 49 19 6 on average 18% in the last few deca- ecosystems from gallery forests des due to extensive agricultural and INVERTEBRATES to desert scrublands coexist in the process life cycle, as we recognize Thanks to the resources assig- livestock activities, deforestation, area, creating a unique biodiversity. that our challenge does not only re- ned to the research and monitoring illegal mining, unlawful crops, ve- Due to their ecosystemic value, side in the production and export of of ecosystems in La Guajira, we hicle traffic, hunting, and urban and at Cerrejón we seek a sustainable the best-quality coal, but also in the have been able to analyse the spe- industrial expansion. In addition, ac- 112 50 43 19 interaction between wildlife spe- generation of well-being for our su- cies in their natural environment. cording to the Red Books of Colom- BIRDS cies and our operations, evaluating rroundings and our communities. This revealed that in this area there bia, Resolution 092 of 2014, and the our impacts and establishing ope- Therefore, prior to starting our are Type I High Conservation Values criteria set forth by the International rational measures that include ac- operations, we carried out studies (HCV), which indicates the presence Union for Conservation of Nature tions to improve the connectivity of to learn about this region in great of threatened, endangered, endemic BIRDS 68 26 36 6 (IUCN), it is estimated that close to West forests ecosystems and wildlife relocation detail and identify possible environ- and migratory species with a large 1,200 animal and plant species are in the Andes and programs. mental impacts in order to devise number of individuals and viable po- Pacific coast threatened in Colombia, as follows: The decrease and deterioration management plans to prevent, miti- pulations, which confirms that the of ecosystemic services and the loss gate and compensate the effects of ecosystems within and around the 40 25 10 5 of biodiversity reduce the economic our current operations. Our strate- mining complex offer substantial MAMMALS and social system's ability to ensu- gies include wildlife monitoring and resources for the survival of these re the availability of food, human tracking, biodiversity management species. During the wildlife health, air supply and the availabi- and environmental compensation In 2017, we found 24 animal and 55 15 26 14 monitoring performed lity of potable water. Consequently, activities plant species whose habitats are AMPHIBIANS between 2016 and it has been our commitment, since located in areas used by Cerrejón. 2017, we found more the start of our operations, to esta- These species appear on national than 540 animal blish clear policies targeting the mi- For more information, we invite you (Colombian Red List, Resolution 43 17 16 11 to take a look at the Biodiversity and plant species at tigation, control, and compensation Book available on our website at 0192/14) and international (UICN Red REPTILES www.cerrejon.com our operations. of impacts caused in the mining List) lists. CERREJÓN SUSTAINABILITY REPORT 2017 70 ― 71 CR BIRDS
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K UC D D Birds LE tos MAMMALS o Mammals L BI lan - me VU Species at B is Species at O rn 223 Cerréjon KN io GU 47 Cerrejón kid A ar M JIR S ar A Colombia has the largest diversity RY mo M A sa O The mammals in La Guajira of avifauna in the world with n IT xe U ro IL W NT ro SE are one of the most important eu M A ris ph O 1,972 species. The country has a A n * C ita il P groups in tropical ecosystems B ly A il *J a P total of 79 endemic bird species O o M m A O R p ra N N GU S because they play a key role in E a A ER ZO P A U and 197 migratory bird species P rm H A an R M maintenance and regeneration. e T M sa th visit it. They play a role in the K p U A ino era N s O LY ar o I o S A a f LC nc nutrient cycle, seed dispersal, S P id E n a T p o s M az pollination, and pest control. N A m A A L P
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s S Endangered n S Á e E a G L l B m m 8 O a T A i 5 R n n R L a u F U O p s G S A s T a i N E f e R f M I l L i c I n A E M o T i D s N t s I P M i A L s h i E *VERAWOOD S P U r c S t R C U H H la s A C N o D y E r C T K i C p A l N O o F I l u e E a A M s I R B n n t S c o S d t M M M s e r m H o la y N Amphibians c O l O p O u i i N s L m A m o N s U e I m h T A G u O a I p h B l u S o H B O a C c I i N n l a FISH s s d M R o r H O a F ic T P e O d and reptiles O L P B D lu M K L ef DD O M a C A fic *C A p A a ie W o q C nt d Species at u K Da S eu e ta s *ATLANTIC ta C P 45 Cerrejón L ia IC TARPON I u H L S m L e E b I Le LC p T r D a Due to their terrestrial o if st r A e Co in ra n and aquatic life cycles, u ce P s rn A m amphibians are considered Ic T u h A y to be good indicators of t L s h Ó co Ne yo r a NT overall environmental health. e um r T * le hr A p ea Therefore, the presence or T h te M L a ne e s d absence of these animals in g A l a N on certain ecosystems may reveal lo T g V p I ir ul s C os ne VU its conservation status. Fish a T tr rab tl A is le a R nt P Species at ic O u N Cerréjon s 29 E nd an EN ge Fish are the best-known red organisms in aquatic habitats. In La Guajira, they are considered C *COLOMBIAN rit CR to be biological indicators as ica SWAMP FROG lly these animals are sensitive to En da changes in water quality. nge red CERREJÓN SUSTAINABILITY REPORT 2017 72 ― 73
Biodiversity rehabilitated areas suitable for their 302 reptiles, 178 birds and 28 mam- Management proper development. mals. Moreover, we received 1,500 At Cerrejón, we are implementing di- Results. We have logged the presen- calls for the donation or rescue of fferent strategies that contribute to ce of five jaguars in areas adjacent to animals from the community. the preservation and growth of plant the mine, which is an indicator of the life, successfully facilitating the re- recovery of the tropical dry forest's Voluntary Conservation turn of wildlife species that have ecosystem. Programs gradually been settling into the area 1. Our conservation program such as the grey brocket, giant antea- Wildlife Rehabilitation for sea turtles (Caretta caretta ter, oncilla, red-footed tortoise and and Conservation and Chelonia mydas) has been jaguar. These initiatives involve the Principal Objective. Undertake wild- underway for eight years in monitoring, tracking and rehabilita- life rescue strategies prior to mining Bahía Hondita (Alta Guajira) tion of wildlife as well as the conser- and in the nearby community as well alongside the community and vation of protected areas. as rehabilitation, release and various under the supervision of the conservation strategies for threate- regional environmental authority Wildlife Monitoring ned species in the region with the (Corporación Autónoma Regional and Tracking participation of local communities. de La Guajira). 2.3 kilometres Principal Objective. Determine the Actions. Our Wildlife Refuge Centre of beaches are currently being state of conservation of the different functions as a temporary home to va- conserved, allowing for the ecosystem units and reception si- rious animal species that need to be arrival, nesting and hatching of tes of displaced wildlife, recording attended to in optimal conditions. A sea turtles. In the last few years, information about shelter availabi- multidisciplinary team of biologists, more than 6,800 specimens have lity, food supply, habitat quality and veterinarians, and assistants work been released into the sea. more. By monitoring different po- to properly care for the animals, their pulations in the Tabaco, La Puente, recovery and long-term survival op- 2. In the American Crocodile Palomino, Bruno, Paladines and Ce- tions. This rehabilitation avoids ani- (Crocodylus acutus) protection rrejón creeks, the Ranchería River, mal suffering due to human causes program, an infant section at the Mushaisa offset area and the Aguas and reintroduces healthy animals Wildlife Refuge Centre receives Blancas-Manantial rehabilitation into their natural habitats. Through crocodile specimens to raise and zone, the degree of effectiveness of the Centre, we are making the com- protect them until they are large mitigation measures is established munity aware of the impacts caused enough (in both size and weight) and new strategies are proposed by the illegal possession, poaching for their release into the wild. to minimize the impact of human and trafficking of wildlife in the Three nest management strategies activity. region. were implemented: habitat or Actions. We are analysing the com- Results. We have rescued 41,000 ani- nesting area enrichment, transfer position of the species, their abun- mals since 2007. In the last year, we of broods at risk of loss and undación Omacha
dance, diversity and spatial-temporal have doubled the number of rescued protected incubation. F distribution in populations of amphi- animals with respect to 2016 and bians, reptiles, birds and mammals. achieved a 96.7% success rate in their The monitoring program proceeds in relocation. These results are explai- ernando Trujillo - Trujillo ernando parallel with rescue and relocation ned by the drought conditions in 2017 processes in which (prior to mining), due to which various fish species
an expert team identifies and captu- (most in danger of extinction) needed Cortesy of F res low-mobility animals for their im- to be rescued. In 2017, we rescued BY:
mediate relocation to conservation or 5,710 individuals and rehabilitated photo CERREJÓN SUSTAINABILITY REPORT 2017 74 ― 75
Howler Monkey, Adoptive Mother In 2016, people from the neighbouring community of Los Remedios contacted us to inform us that a female monkey was being held in captivity in the garden of a house and was in poor condition. The community delivered the monkey to us, noting that she had been tied to a tree with multiple fractures and had been biting her arm because of the pain. The monkey was transferred to the Wildlife Refuge Centre for recovery and care. She had been experiencing so much pain that she was pulling off pieces of her skin with her month. Unfortunately, her arm had to be amputated as there was a high risk of infection. However, thanks to her strength to survive, she managed to gradually recover. A few days later, we were contacted by the National Police, who had confiscated five howler monkeys being illegally trafficked and who were transferred to the Wildlife Refuge Centre for recovery. The five monkeys were younger than the female monkey who was already at the Centre and, over the next few days, it was incredible to see how Three European she adopted those five small monkeys. She helped raise Raccoons Were Rescued in Puerto Bolívar and care for them, creating a family, until they were old enough for their soft release to be started. This process Three years ago, two raccoons sand in the middle of the beach,” starts with the opening of the cage's doors, which permits arrived from Europe one evening recounts Luis Madriñan, superin- the animals to feel safe while they leave and explore. The Protected Areas and immigrated to Puerto Bolívar. tendent of Biodiversity and Land monkeys adapted very well and managed to join a group Main Goal. The mid-basin of the preserve and protect conservation District, with 32,443 hectares in They were only seen by an operator Reclamation at Cerrejón. The eyes of howler monkeys residing near the Wildlife Refuge Ranchería River contains impor- areas. the municipalities of Riohacha, who, while attempting to catch were from those two raccoons, Centre. This is one of the few successful cases in which tant connectivity and core areas Actions. We have contributed to the Manaure, Maicao and Albania. them, lost their trail when they es- who for three years resided under a population of monkeys that were raised and cared for in that comprise biological corridors declaration of more than 60,000 hec- 2. The Ranchería River Delta caped on the beach. The identified the structure and went out only in captivity has successfully returned to their natural envi- for many species and, undoubted- tares of protected areas in the region, Comprehensive Management raccoons are of a species native to search of food like small shells and ronment and become a part of a group of wild monkeys. ly, significant connections between seeking to ensure the preservation of District, with 3,601 hectares in North America, but since the 20th mollusks. The biggest surprise was forest patches that are fundamental ecosystem services in this region in Riohacha. century have spread throughout discovering during the rescue that for sustaining wildlife. Connectivity partnership with Conservation Inter- 3. Bahía Portete National Nature Europe. For several years, their the two raccoons from Europe had and communication between these national, the Caribbean Environmen- Park, with 14,079 hectares in the isolated forested areas in the Cerre- tal Heritage and Corpoguajira. These municipality of Uribia. footprints were seen in different had another one raised in Colombia. jón Valley are of vital importance areas include the Forest Reserve of 4. Montes de Oca, with 12,294 hectares. parts of Puerto Bolívar without The three animals were rescued for all national and international Montes de Oca, the delta and lower The first private civilian anyone being able to find them. and brought to the Cerrejón Wildlife conservation protocols since both basin of the Ranchería River and Ba- conservation reserve (RUNAP) is “In an attempt to rescue an alligator Refuge Centre. Corpoguajira was the Perijá and the Sierra Nevada hía Portete National Park. in the process of being declared in a Puerto Bolívar lake, while wal- immediately informed in order to are ecosystems with High type-II Results. Declared protected areas and will comprise 1,964 hectares. king and looking for their footprints, perform medical and genetic tests Conservation Values (HCV), shelte- where Cerrejón has worked for their It comprises Aguas Blancas Santa we all of a sudden saw four eyes on them in order to determine the ring populations of species subject conservation: Helena, with 1,651 hectares in observing us in the middle of an best place for them to be released. to high probability of extinction. 1. The Lower Ranchería River Basin Albania and Hatonuevo and 313 old cement structure, covered with Therefore, our main objective is to Comprehensive Management hectares in Mushaisa. CERREJÓN SUSTAINABILITY REPORT 2017 life on land 76 ― 77 goal: 3
Environmental the environmental authority in 2017 to go forward with our main objec-
Compensation tive of ensuring that environmental ies Three Decades of Land Restoration t At Cerrejón, we are committed to impacts are offset through actions complying with compensation for to restore, improve or preserve an uni ince we began our ope- rt
the loss of biodiversity, which is why equivalent ecosystem in places other o rations, our Land Recla- we filed our Compensation Plan with than where the project is carried out.. mation program has To continue with the
Opp S
d process of declaring been a management two protected areas measure for the effects of forestry ex- in the department of La Guajira ploitation, required to start the mining es a n g es (the Ranchería process. With this program, we have N ATLANTIC OCEAN LA GUAJIRA River Delta, and 1 transformed areas of the mining ope- 1 Prior to mining a transition zone O E a llen Classification of soils and
h of the tropical ration (pits more than 200 metres
C relocation of wildlife. dry forest in the deep) into areas covered by species of Achieving this goal has required hard S municipalities of trees typical of the region, where we work and the commitment of a team Albania, Riohacha of more than 150 people who, prior to and Maicao.) have identified the presence of several the start of operations, identify and species of wildlife that are indicative relocate animals present in the area RIOHACHA Construction of to other previously-assessed areas. artificial offset of the quality of the soil. lagoons to improve the biodiversity of DMI fauna and flora. BAÑADEROS REFORESTATION: About the Process 712.55 hectares This process covers a set of activities RANCHERÍA that are the product of teaching and
lessons learned over years of conti- 1 SoiL RIVER ALBANIA 2 HATONUEVO nuous experimentation and valida- preservation REFORESTATION: 28.8 hectares tion in the field. Practical work and Deforestation, removal and LA MINA accumulated experience have shown preservation of topsoil. that it is possible to transform deep We remove and store the topsoil (commonly known as the organic pits (where open-pit coal mining was layer), which is the fundamental carried out) into areas suitable for the basis for restoring the lands that were used for mining operations. establishment and maintenance of RFP MONTES restored ecosystems. DE OCA Our Land Reclamation Plan aims BARRANCAS REFORESTATION: 3,611.4 hectares to rebuild the terrestrial ecosystem of the areas intervened by the mi- PURCHASE OF PROPERTIES: 580.78 hectares ning operation (mine, dumps and facilities) in such a way that its dy- namics, structure and ecological DMI functions are sustainable, and that PERIJÁ its new status (in terms of produc- REFORESTATION: tion of environmental services) is 746.8 hectares
similar to or better than that which 1 Coal PURCHASE OF PROPERTIES: 3 265.08 hectares existed before mining began. mining Removal of overburden and coal extraction. CERREJÓN SUSTAINABILITY REPORT 2017 78 ― 79
Land 1 4 Results Sustainable Agri-Silviculture Rural Production Program preparation We have managed to reclaim Reconfiguration of lands and 3,789 hectares to date, which corres- formation of new soils. ponds to 93% of the land where we We gradually carry out land preparation, a process that ranges from smoothing have already completed the extrac- the slopes to control erosion, to ploughing tion of coal. Of this area, 3,703.4 hecta- and scarification of the areas. This practice allows us to plant seeds for res have been stabilized (sown with buffel grass, a plant from Africa whose grass) and another 2,909.3 have been function is to fix the carbon and stabilize the soil to make way for the incorporation revegetated (trees planted). of native shrub and tree species. In these areas, the preservation and development of plant life have contributed to the return of wildlife species such as the red gray brocket, the anteater, the oncilla, the red-foo-
Soil 1 5 ted tortoise and the jaguar. They are stabilization joined by a wide variety of species The scattered topsoil layer becomes of birds, insects, amphibians and a suitable medium for plant growth. reptiles (some threatened to some Pioneering coverage is started with seeds and rapid-growth plants adapted degree), which are included in the to this climate and the regional soils. Colombian Red Book of the Hum- These plants will serve to protect against water erosion and to improve the soil. boldt Institute, and on the red list of threatened animals in South Ameri- ca of the International Union for the For more than 10 years, we have inhabitants, promoting increased land and corn) by communities Conservation of Nature (IUCN). been promoting the Research and productivity and the empowerment of seeking food security. Application Program for Sustainable regional communities. For more information, see the 3. Increased land productivity chapter on Protection and Agri-Silviculture Production Sys- We have achieved the following Preservation of Biodiversity. by improving the physical,
Re-vegetation 1 6 tems, whose goal is to promote the goals in these ten years in which chemical and biological Biological diversification. This shows the state of health and fight against poverty, land degrada- more than 150 people have participa- By restoring the shrub and tree properties of the soil. plant cover, we improve the cycles balance of the areas that are being tion and desertification of areas oc- ted in the project: 4. Strengthening communities’ associated with ecosystem services restored and close to being declared cupied mainly by Wayuu indigenous 1. Improvement of soil quality indi- in the areas under rehabilitation. understanding and knowledge These expand progressively and are biodiversity protection and conser- communities. cators in more than 70 hectares. incorporated into natural ecosystems transfer on sustainable vation areas. We are working together With this project, we have achie- 2. Production of more than to produce mature forest with agricultural practices. possible areas for conservation. with the Autonomous Regional Cor- ved the massive production of 50 tonnes of food (beans, poration of La Guajira (Corpoguajira) crops that provide food security for watermelon, ahuyama squash and the National Environmental Li- censing Authority (ANLA) to this end.
Post-mining 1 7 Challenges and Opportunities Mature forests, protected areas for conservation. We have planted more than 1.6 million trees of 40 native species (10 of them threatened to some degree). Brazil nut, quebracho, divi-divi, tecoma spectabilis, Our challenge is to continue expanding the number of hectares to be rehabilitated ebony, oak, acacia, yellow poui and annually until 2033, and thus gradually close the mining cycle.. Panama redwood are just some of the species that are planted and form part of the tropical dry forest ecosystem. CERREJÓN SUSTAINABILITY REPORT 2017 Decent WORK and IIndustry, innovation PARTNERSHIPS economic growth and infrastructure FOR THE GOALS 80 ― 81 GOaLS: 2 / 3 / 6 / 9 GOAL: 1
Socio-economic strategy
ur lessons learned over We propose to contribute to over- The Prospective Agenda for La Guaji- 30 years in operation coming the main challenges facing ra 2026 is the result of talks between O have led us to unders- the department. Therefore, we have civil society, businesses, the United tand that our viability focused on watershed protection Nations Development Programme and sustainability are linked to those and access to water by communi- in Colombia (UNDP), the local think of this region. We have used social ties, strengthening community and tank (Guajira 360º), and regional pu- 6 programs to benefit our neighbouring institutional skills and developing blic bodies including the regional communities since the start of our strategic projects in sectors with government of La Guajira, the Re- operations. However, over the years, the potential for development (such gional Guajira Public Ombudsman, we have transformed our business as tourism) in order to generate a the regional environmental autho- vision to incorporate our interest and positive impact on regional condi- rity (Corpoguajira), the Chamber of intention of being a strategic partner tions. To learn more about watershed Commerce and the regional National for La Guajira’s development. This protection and access to water by Apprenticeship Service (SENA) to commitment to the future of La Gua- communities. define a shared vision of the depart- jira is tied to promoting projects that 100% of our programs are aimed at ment up to 2026. The exercise was contribute to decreasing develop- the communities in the area of in- headed by TRUST and identified the ment gaps, where the State, non-go- fluence of our integrated operations following agenda objectives: Conso-
vernmental organizations, the see the chapter lidate the department’s economic community and the private sector all “Water in Mining Activity” . model with diverse competitive and join forces to envision, structure and sustainable sectors, build an educa- execute impact initiatives to allow (Mine, Railway, Port) in partnership tional model to strengthen Guajiran the region to drive its own develop- with State agencies and various ci- human resources, take advantage ment in the medium- and long-term. vilian organizations, taking into ac- of its multicultural heritage and its Our social engagement is delimited count the relevant topics identified geostrategic location, and improve by high standards and responsible jointly during our ongoing engage- the efficiency of its public, political practices, as well as by significant ment with communities. and administrative structure. engagement with our stakeholders. These pillars guide our performan- ce in order to build trust, support the In 2017, we invested COP 24.156 billion in our implementation of a shared vision of social programs. Over the last 15 years, this the region’s future and manage our investment has exceeded COP 250 billion. operational impacts. Beyond respon- ding to expectations and obligations, constructive and participatory enga- gement allows us to contribute to im- proving the population’s standards of living and La Guajira’s development. CERREJÓN SUSTAINABILITY REPORT 2017 82 ― 83
Social Intervention
Strengthening the three latter have exceeded them regional and municipal institutional the department average for a total of COP 11.829 billion. capabilities (58.3) in the Comprehensive • We signed an agreement with Performance Index. We work for the development and the Comptroller's Office of sustainability of the department of La • 321 civil servants La Guajira to promote citizen Guajira by strengthening the capabili- supported and trained. oversight and social monitoring ties and skills of regional public bodies, • 45 civil servants certified of strategic investment projects planning agencies, social organiza- in public-investment and compliance with the 2016– tions and leaders, and civil society.. project planning. 2020 Development Plans for the municipalities of Barrancas, • Five municipalities supported: • Support given to planning for Hatonuevo and Albania. Barrancas, Hatonuevo, Maicao, nine (9) projects: seven (7) were Uribia and Manaure. Of these, approved by the OCAD, one of
Strengthening In order to contribute to impro- Business community ving the quality of life of indigenous strengthening capabilities communities, we concentrated Our goal is to strengthen the capabi- We strengthen capabilities in project on strengthening the traditional lities of suppliers in La Guajira to im- planning and self-administration in Wayuu production system through prove their quality, safety, efficiency order to empower indigenous and programs in food security and arti- and competitiveness; open them to non-indigenous associations neigh- san strengthening. the demand for goods and services bouring our operations. • In partnership with the in the region; and have them contri- • 200 people from four indigenous World Food Programme bute to the region’s socio-economic reservations and two settlements (WFP), our Foundation has development.
participate in our programs. contributed to the recovery and To learn more, see the chapter • Certification of 41 people in improvement of the traditional "Supply Chain.” investment project planning production system of over 580 focused on logical frameworks. people from 28 indigenous • Support in project planning for communities in the region. nine (9) participating groups. • In the last nine years, over • Seven community participation 90 artisan groups and 3,067 We undertook a events held to present and Wayuu and Wiwa artisans supplier-development validate projects planned. have improved their artisanal program that concluded • Training of 74 people in the work through projects its first phase in 2017 General Royalty System and 30 coordinated with partners such with the participation in organizational strengthening. as Artesanías de Colombia. of 21 companies.. CERREJÓN SUSTAINABILITY REPORT 2017 84 ― 85
Social investment Education development in the department. This sector programs At Cerrejón, we support educational institution (the only one of its type in Our programs in education, cultu- reinforcement in the region through the department) and its programs have re and sports aim to strengthen our scholarships, grants and programs an institutional quality certification, engagement with our neighbouring to promote the technical and pro- granted by Centro Latinoamericano communities; complement formal fessional training of Guajirans and de Certificación. We believe that this education; develop the capacity of thus improve their employability, strategy contributes to the region’s de- children and youths to establish both with our company and other velopment, closing existing gaps in or- healthy, constructive relationships; regional and national businesses. der to improve the future outlook with promote a healthy body, mind, and We have contributed to the univer- the hope that these young people can emotions; create healthy lifestyle sity or vocational training of over provide La Guajira with the knowle- habits; and reduce the consumption 12,000 young people. dge and good practices acquired du- of alcohol and drugs in youths and Tecnoguajira. In 2012 we founded the ring their training. Since its launch, adults. Some highlights of our re- TecnoGuajira Institute of Vocational 1,024 students have enrolled and 579 sults in 2017 include: Studies for vocational and human have graduated, mainly in programs Sports and House of Justice, for mining equipment operation and • 70 communities (700 athletes maintenance. which are priority projects and their families) actively In addition, 11 students from the in the municipality’s participated in the football community of Los Remedios were development plan. tournaments sponsored by the provided support, graduating thanks company. Housing in Uribia to the secondary school validation • We coordinated 15 football • We made progress in building program; 35 students from Campo tournaments in our neighbouring the last two houses in the Herrera and 230 from the Akuaipa In- communities. Uribia town centre as part digenous Boarding School participa- of the construction and ted in our educational reinforcement Community infrastructure handover of 21 houses for program for basic skills; and 108 stu- support the Malla Sur communities dents from our neighbouring com- • We donated a 4,500 m² property in downtown Albania for the (Piulekat and Piuula). They munities received support for access construction of infrastructure will be finished and delivered to higher education. Another 106 stu- for the Police, Cultural Centre to these communities in 2018. dents were also supported through the Cerrejón Educational Fund (run by Lumni Colombia) in its various types of sponsorship.
Culture • The Cerrejón Symphonic Orchestra held five concerts in La Guajira for over 3,000 audience members. • 430 children participated in our music program, 64% more than the previous year. CERREJÓN SUSTAINABILITY REPORT 2017 86 ― 87
Prospectiva fase II Strategic Various actors from the public and private sectors and communities have joined us to try to define and share a plan of action for the La Guajira prospec- Projects tive agenda, thinking about how we want it to be in the next 10 years from a standpoint integrating its political, economic, social and cultural conditions. In the second phase, the goal is to advance in appropriation of the document ur goal is to promote a agreed on in the first phase and to build its plan of action. prosperous future for La O Guajira through develo- Support for Riohacha Library pment partnerships for Donation delivered to support the strategic projects for economic and construction of a computer room in social transformation. the Riohacha public library.
Hotel Waya 4 Vías Tourism Market In 2013, we inaugurated the Ho- A plot of land was provided to start tel Waya Guajira, resulting from an construction on an open-air tourism agreement amongst the companies market to provide a safe, organized Abacus, Contempo, Inversor and area to offer tourism products and EGSA. It is the first four-star hotel services. The necessary permits and in the region that is LEED certified resolution are already in hand. (Leadership in Energy and Envi- ronmental Design). The hotel has Guajira 360° hosted over 80,000 guests since its In 2016, we took part in the for- opening, promoting a flow of tou- mation of the Centre for Regional rists through the region. In addition, Studies Guajira 360° (the first think it has generated formal employ- tank for regional development) in ment, mainly for Guajiran natives partnership with Promigas and (82% of staff in 2017) and has con- with the additional support of Fun- tracted regional suppliers for more desarrollo and the La Guajira Cham- than 40% of its goods for 2017. ber of Commerce. The Centre’s goal Our objective is to tie in tou- is to generate reliable, pertinent rism initiatives developed by technical data to build a local cri- communities with the tours offe- tical mass to impact economic and red by the Hotel Waya to promote social development. This initiative tourism, employability and stren- celebrated its first year in operation gthening of community economic in 2017 with its first publication: development. Why Invest in La Guajira. Our aim is to position the think tank in de- cision-making to benefit develop- ment in La Guajira. CERREJÓN SUSTAINABILITY REPORT 2017 CLEAN Water and Industry, innovation sanitation and infrastructure 88 ― 89 GOAL: 1 GOAL: 1
Cerrejón Foundation: s Resettlements A Year of Transition ince 2009, we have ca- social fabric and the relationship Flórez Laboratory, which is
pportunitie rried out participatory with their natural surroundings. accredited by the IDEAM. and Integration Support municipalities Strengthen in urban planning (as engagement with S resettlements with four The resettlement process invol- • Relocation of 100% of part of our institutional our stakeholders communities: Roche, ves an action plan agreed upon with and O and
s strengthening (especially with the families who were Patilla, Chancleta, and Las Casitas. the entire community and following programs) so that their our neighbouring at the sites of origin. development is aligned communities) in the Furthermore, in 2006 we began the re- the guidelines of the World Bank’s with the region’s search for significant, settlement of Tamaquito II, an indige- International Finance Corporation • Repairs to 50% of the houses goals for the future. quality dialogue to n 2017, we took on the Therefore, we work on projects aimed nous community that itself requested (IFC). in the resettlements of Patilla, hallenge acknowledge each challenge of fusing our at preserving ancestral indigenous C Contribute to making other in this region relocation from the Barrancas Mayor's Roche and Chancleta in a the business units of and build a long-term four foundations into a traditions, seeking sustainable solu- Office, arguing they were becoming management model that was I companies participating vision together. single organizational tions for water access and conserva- in our business isolated due to the relocation of the Results agreed upon, coordinated and structure — the Cerrejón Foundation tion, strengthening the capabilities of strengthening program Achieve long-term other communities. • Availability of 100% drinking participatory. more robust and launch investment plans for Progress in La Guajira. This founda- institutions, communities, businesses The relocation of a family from water in line with the highest the second edition, by working on • Progress in providing irrigation tion brings together the more than ten and the Wayuu traditional production which seeks to attract prioritization with the their original site of residence to an indicators (WQRI — water new participants. communities and infrastructure for the provision years of experience of a team commit- system, and promoting strategic pro- agreed-upon destination site is a quality risk index for human authorities neighbouring of water for production projects ted to contributing to the development jects that generate new investment measure of last resort that we take consumption) for resettlements. Promote our Artisa- our operations. in the communities of Roche, of La Guajira through actions to jointly and employment in the region. nal Reinforcement to protect a community from envi- The results are even higher than Program through a Enable the commitment Patilla and Chancleta. identify work strategies focusing on Since 2008, our Foundation has potential partnership of various actors ronmental impacts that could affect for various regional capitals in the most pressing regional needs so allocated COP 96 billion to our pro- with Artesanías de Co- in the region’s them due to mining activity. Our the country. This claim is based • Consolidation of the lombia. This agreement future development that the communities lead the required grams with the support of various main challenges in this process are on the water-quality analysis educational process for will allow us to drive through high-impact transformations. partners who share our vision and artisan production and initiatives that include to contribute to improving the stan- results issued by the Nancy resettled communities, with the vocation of contributing to the deve- marketing, and provide the coordination of dard of living, conservation of their participation of over 330 people. the possibility of get- partnerships around lopment of La Guajira. ting an appellation of structural solutions to origin for the products. existing local problems. These steps contri- bute to leveraging the Achieve our Partnerships sector and achieving a involvement in the In 2017, we generated over 18 partner- better standard of living mechanism of Works STATUS OF RESETTLEMENTS IN 2017 for the communities for Taxes, which is an ships to strengthen our social invest- involved in this activity. opportunity to finance 110 ment projects in La Guajira. This year, large infrastructure 106 we had greater involvement in phi- Manage better coordi- projects benefiting 99 97 nation of our interven- the department and lanthropic initiatives benefiting the tions and centralization raising the visibility of efforts to contribute of the company’s Wayuu indigenous communities. Our 62 62 to the department’s de- commitment to project portfolio has 12 initiatives, of 56 56 velopment after combi- the region. 46 46 which we managed to leverage 59% of ning our Foundations 31 31 31 31 31 31 31 31 the total resources invested as well as System into the Ce- 25 25 rrejón Foundation for sourcing resources for other projects Progress in La Guajira. totalling USD 1.8 million in third-party
co-financing. Roche Patilla Chancleta Las Casitas Tamaquito II
Families in their place of origin Families confirmed for resettlement Families with signed relocation agreement Families resettled at new sites CERREJÓN SUSTAINABILITY REPORT 2017 90 ― 91
ROCHE to receive the programs laid out list as its only member passed Results of Post-Resettlement • 100% has been released in the resettlement agreements. away before the relocation. Programs in the area of origin. We delivered 100% of the CHANCLETA LAS CASITAS Educational assistance properties at the site of • After the agreement reached • All of the families (31) were We provided support to people in gaining access to vocational, techno- origin. The last family in the prior consultation, the relocated in 2017. logical and higher or advanced education as our contribution to develo- was relocated to the conclusion of agreements ping their abilities. destination site in 2016. The with five families not eligible TAMAQUITO II programs laid out in the for relocation are pending. • We continue to implement BENEFICIARIES OF EDUCATIONAL AID IN 2017 Technological/Vocational Professional Specialisation resettlement agreements • Of the total families eligible the agreement signed in 2016 are currently in course for for relocation, 38 collectively regarding income generation. 1 the relocated families. moved to the new site in 2013 We are advancing in the process and nine decided on their own to have it constituted as an
PATILLA to move to other municipalities. indigenous reservation. 2 3 • All the families that • The nine additional • All of the families collectively 7 7 7 signed in 2016 were families that participated relocated to the new site in relocated in 2017. in the prior consultation 2013 and, to date, continue to Infrastructure • All the families (46 families relocated individually. receive the programs set out in With the goal of improving the li- 1 eligible for relocation were • Of the relocated families, one the resettlement agreements. 1 ving conditions of resettlement 1 1 relocated in 2013) continued family has been taken off the housing, we signed three infras- Roche Patilla Chancleta Tamaquito II Las Casitas tructure agreements in 2016 and 2017 with the communities to ca- rry out repairs on the homes. These agreements included the repairs for Thirty-one (31) people entered people, adults, parents and the gene- 75 of the 109 homes that form part the educational assistance program ral community centred on educatio- of the Patilla, Chancleta and Roche for 2017 to finance enrolment costs nal activities. Over 280 children from communities. and living expenses for their voca- the five communities participate in • In 2017, we signed 50 individual tional, technological and professio- the program’s strengthening skills in settlement agreements nal studies in national educational school subjects, ICT, art and culture, for repairing homes in the institutions. early childhood and special projects. Patilla, Chancleta, and Roche Thirty-six (36) members of rese- One of the most significant achie- communities. ttled families completed their stu- vements in 2017 is the rise in the • The owners of 46 homes were dies through this program in 2017. average passing rate for students to satisfied with the repair work. 92%, an increase of 20% over 2016. Educational strengthening This advance represents a decrease We shared the message of being This program, currently in its fifth in the number of over-age students responsible for taking good care of year, seeks to develop the skills and required to repeat grades, especially their properties in the context of the abilities of children to achieve high in the Tamaquito II community. It also written agreements. With the formal performance levels in their schools, motivates students to keep moving delivery notice of satisfaction, the with an eye towards increasing their ahead with their education, as they community action boards gave each chances of gaining access to higher pass their courses and can continue family recommendations regarding education. on to the next grades. use, regular preventive maintenan- The program has promoted social ce and conservation to guarantee the mobilization amongst children, young quality and longevity of the repairs. CERREJÓN SUSTAINABILITY REPORT 2017 92 ― 93
• The 2016–2017 cooperation
agreement with Asoawinka s Water for production RPC includes operation of projects the present infrastructure by the municipality and the evaluation of connecting • Implementation of provisional pportunitie these communities to the Connection of these irrigation system (motor communities to
municipality’s aqueduct 2010 the municipality’s pump on banks of the O and system in the long term. s sewage system in Ranchería River) for use in the long-term. • We are evaluating different agricultural and livestock Implementing a alternatives for improving the activities in Roche. comprehensive present PTAP in order to supply hallenge development
• Design of definitive model C water fit for human consumption strategy for to the communities from the for supplying water to all resettlements with properties of resettled families. the aim of restoring surface water source of the their livelihoods Ranchería River and improve (income generation, education, the water quality (especially • Construction of employability, etc.) its hardness and taste). infrastructure interrupted
2012 due to disagreements Complete • During the upgrading works agreements on the PTAP, we supplied water by leaders of the with owners of to the resettled communities communities over technical 11 uninhabited properties in Patilla with tanker trucks, coordinating specifications of project. and Chancleta with Asoawinka RPC. to vacate 100% of the area. • We continue to analyse the drinking water at Cerrejón’s • Agreement with communities Complete to resume the work and improvements laboratory and an outside in the drinking Creating income NUMBER OF PROJECTS MONITORED 2014 continue implementation laboratory accredited by water plant and (production projects) the IDEAM (Institute of of the project. distribution system We continued managing produc- for the Roche, Hydrology, Meteorology and Patilla, Chancleta tion projects with 179 resettled Environmental Studies). • Construction of water and Las Casitas 20 families in 2017. Throughout this collection intake on banks communities. • We obtained a favourable health process, we have supported 163 fa- 2015 of the Ranchería River. 34 authorization for the surface Move ahead on milies in undertaking 203 produc- the home repair water license from the La Guajira • Repair of two reservoirs tion projects, of which 122 are now process with the 15 regional Secretary of Health. with capacity of 5,000 m3. 25 families with active and 81 still pending. Rebuilding of main water supply whom we signed 23 • The license for surface water agreements for pipelines, with the reservoirs of 81 litres per second from repairing the homes. Water for human consumption filled by the end of 2016. • We supply drinking water the Ranchería River will through the community public also be used on the lands 30 services company Asoawinka of jointly owned properties • The irrigation system has in undertaking agricultural RPC, who operate the drinking Patilla been finished to supply
and livestock projects by 2017 water treatment plant (PTAP) Tamaquito II water to 109 properties in and the wastewater treatment Las Catitas the resettled families. the communities of Roche, plants (PTAR) in each of Chancleta Patilla, and Chancleta. the resettlement sites. Roche CERREJÓN SUSTAINABILITY REPORT 2017 94 ― 95
Preparation for mine closure
ineral resources are fi- nite, so the closure of M mining operations is inevitable. Planning for 7 closure is a critical business practice for mining companies that must be considered from the initial design phase of the operation. This enables the company to minimize adverse impacts in the best possible way and maximize positive impacts for all stakeholders. With our Mine Closure Plan (MCP), we are making a commitment to planning and defining the actions necessary for the gradual, systema- tic closure of the mine in compliance with legal requirements and volunta- rily adopting international practices. The intention is to close down, anti- cipate and compensate socio-envi- Mine closure Sustainability, responsible for the ronmental liabilities derived from our planning strategic direction of the closure and operation. We are moving ahead with With the intention of responding effi- developing the mine closure plans in progressive closure actions simulta- ciently to the increasingly deman- line with the current phase. neously with our mining operation, ding challenges and environmental Since we will be finishing the as detailed in our MCP and other me- requirements both nationally and preliminary phase in 2018 and en- asures included in our Environmen- internationally, we are identifying tering the draft phase in 2019, the tal Management Plan. organizational adjustments made planning over the last year has been in the Environmental Management targeted at this transition period. It area. These actions also address has been facilitated by the metho- and act on the recommendations dological support of personnel from detailed in the updated 2016 MCP one of our stakeholders, Anglo Ame- and the need to assemble a team for rican, a company with extensive ex- planning the MCP. We created a new perience in planning and carrying Superintendency of Environmental out mine closures. CERREJÓN SUSTAINABILITY REPORT 2017 96 ― 97
WATER MANAGEMENT SOCIAL INVESTMENT PROGRAMS We continued building the network We are moving ahead with imple- s of drains around the perimeters of menting our social performance dump sites, pits, backfill zones and strategy, in line with responsible coal piles to divert rainwater and standards and practices, giving ortunitie clean runoff water as the mining priority to closing the commitments
operation advances. We are moving reached with our communities. Opp • Formalize and create by an international d the mine closure group contractor with ahead with building settling ponds See more information about our in the Environmental extensive experience an
to retain water drainage from rec- effort in “Socio-Economic Strategy.” s Management and familiarity with Planning
g e department in 2018. the Anglo American laimed dump sites, which act as se- COMMUNICATION AND INFORMATION • Update the MCP, moving methodology in order en dimentation reservoirs prior to the We presented our preliminary mine from the preliminary to include the best water’s return to surface bodies of closure plans to the labour leaders of level to draft stage, with international practices ll ha advisory assistance and greater detail. water. We began the construction of Sintracarbón in the collective bargai- C structures for handling runoff water ning process, where we received and in reclaimed dump sites. resolved their concerns. We face challenges on different issues in formulating the progressive closure measures. We summarize the most See more information about our relevant issues, which are aligned with the recommendations effort in: “Water in Mining Activity.” COMPENSATION and actions in the preliminary closure plan currently in effect:
BACKFILL ZONES We developed and presented to na- Execution In 2017, we disposed of 36% of the to- tional and local authorities the com- • Land reclamation and • Social investment water managements. programs. Define tal annual volume of waste rock in pensation plans required for different Reach the levels of land methodologies to backfill zones. Our new mining plan resolutions and administrative ac- reclamation established evaluate the impact of our makes maximum use of backfill zo- tions. Some of them were approved in the updated long-term performance to measure plan, increasing from 100 its effectiveness and the nes to reduce the need to affect new in 2017 and we began executing them hectares to 500 hectares long-term sustainability areas required by dump sites. accordingly. reclaimed per year, of our social involvement. including carrying out the work for managing runoff • Communications and information. Due to the SPONTANEOUS COMBUSTION CONTROL Final closure water. Act on changes to updating of the closure We continue engaging in actions (0–5 years) the mining plan that may require updating the long- plan, the engagement and related to the identification, moni- We will finish up all administrative term reclamation plan. communications plan will be updated, integrating toring and control of fires, with in- and operational activities in the clo- • Spontaneous it into the company’s ventory updated twice a year. For sure process. We will formally hand combustion control. social strategy, 2017, our goal for preventive con- over the areas and infrastructure to Devise new pilot tests creating mechanisms for monitoring in order for participation that trol encompassed a surface area of the Colombian state. to find more effective include government 114,000 m2. But we surpassed that control methods to avoid organizations. combustion. Carrying out the goal, reaching 128% by protecting Post-Closure • Compensaciones. Carry progressive closure an area of 146,343 m2. We are going (5–15 years) • Mine area. Maximize out the offset plan for loss the disposal of waste of biodiversity according It will take place continuously as part reclaim land, keep financial records ahead with a research project with We will verify the effectiveness of the rock in backfill zones to to the time schedule. of the operational phase until the halt for the reclaimed areas, and the the faculty of Mining at the Natio- actions taken through monitoring, reduce the number of This plan considers the new areas needed for compensation for all of all operations with the end of the amount of topsoil stored. This year nal University of Colombia based in verification and documentation. overburden disposal. actions Cerrejón may mining contracts (2034). we added 115 hectares of reclaimed Medellín to increase understanding Continue with studies and perform until the end lands to bring the cumulative total of the spontaneous combustion pro- analysis of the long-term of its operation. The Premature Closure geotechnical stability time frame for carrying LAND RECLAMATION to 3,789 hectares that are constantly cess and identify new methods for Closing of mining project of areas affected by the it out extends beyond We brought our profile of long-term monitored. effectively controlling it. before the planned date due mining area, especially a five-year window. to unpredicted financial, legal, for the Patilla Pit. reclamation of affected areas up to See more information about judicial, environmental or social this effort in “Three Decades date, based on the mining plan cu- restrictions. OF LAND RESTORATION” rrently in effect. We continue to CERREJÓN SUSTAINABILITY REPORT 2017 98 ― 99
Third-Party Review Memorandum Third-Party Review Memorandum Third-Party Review Memorandum
Third-Party Review Memorandum Third-Party Assurance of Cerrejón’s 2017 Sustainability Report
Scope of our work
We have reviewed the conformity of Cerrejón’s 2017 Sustainability Report contents to the guidelines for the preparation of the Global Reporting Responsibilities of Cerrejón Initiative’s Sustainability Reports (GRI Standards). senior management and of Deloitte Assurance standards and processes • The preparation of Cerrejón’s This work has been carried out in accordance with the ISAE 3000 International 2017 Sustainability Report, Standard on Assurance Engagements Other than Audits or Reviews of Historical and its contents, is the Financial Information issued by the International Auditing and Assurance responsibility of the Standard Board (IAASB) of the International Federation of Accounts (IFAC). organization. The company is also responsible for defining, Our review work has comprised asking questions of management and of the adapting, and maintaining the diverse areas of Cerrejón that have been part of the preparation of the 2017 management systems and Sustainability Report and applying certain analytical procedures and review internal control from which tests by sampling as described below: the data is obtained. • Interviews with Cerrejón personnel to learn about the principles, systems, • Our responsibility is to issue and management approaches used to prepare the report. an independent report based • An analysis of how (based on the materiality exercise) the contents, on the procedures applied in structure, and indicators in the report are defined, in accordance with the our review. suggestions in the GRI methodology. • Assessment of processes for gathering and validating data presented in the • This report has been prepared report. exclusively for the • Verification using review tests based on the selection of samples of the organization in accordance quantitative and qualitative information corresponding to the GRI indicators Third-Party Review with the terms in our service and their own indicators included in the sustainability report and its proposal. We do not accept appropriate compilation based on the data supplied by Cerrejón’s sources of Memorandum any responsibility from third information. Visit to Cerrejón’s operations in La Guajira to verify the parties other than the information in the respective material topics. company’s senior management. Confirmation that Cerrejón’s 2017 Sustainability Report has been Third-Party Assurance of Cerrejón’s 2017 prepared in accordance with the GRI standard (core option) following Sustainability Report • Our work has been carried out the guidelines. in accordance with the standards of independence required by the ethics code of Basic general contents the International Federation of It was confirmed that the report is aligned with the requirements of the core Accountants (IFAC). option in accordance with the guidelines as regards basic general contents.
Deloitte & Touche Ltd. • The scope of a limited review Jorge Enrique Múnera D. is substantially lower than that Partner of an audit. Therefore, we provide no audit opinion on Medellín, September 2018 the sustainability report.
02 01
CERREJÓN SUSTAINABILITY REPORT 2017 100 ― 101 Third-Party Review Memorandum Third-Party Review Memorandum
Basic specific contents Access to water and efficient 303-1. Extraction of water by sources. We reviewed the GRI management approach and contents for the following use of water in the operation material topics1: 303-2. Water resources significantly impacted by water withdrawals.
306-1. Water discharges in terms of quality and destination. Material topics GRI contents and/or Cerrejón’s own indicator Biodiversity protection and 304-3. Habitats protected or restored. promotion (not a material Local procurement, 102-9. Description of the organization’s supply chain, including the main elements topic) strengthening suppliers and related with the organization’s activities, main brands, products, and services. 304-4. Species on the IUCN Red List and national conservation lists with habitats in production chains in the areas affected by operations. region. Mine closure plan (not a This topic was not verified in detail as it is under construction. However, we reviewed the Ethics and good governance Own. Claims presented, investigated, and closed in the year (on non-compliance with material topic) context and management approach as concerns it. policies).
Own. Due diligence of third parties. Conclusions Our review has found no aspect leading us to believe that the 2017 Risk management 102-30. Effectiveness of risk management processes. Sustainability Report contains any significant errors or has not been prepared in accordance with the guidelines for the preparation of Global Reporting Initiative Engagement with community Own. Operations in which programs have been carried out with the community and core option reports. and contributions to improving engagement. their quality of life Main observations and recommendations as regards the GRI and WBCSD2 principles Job creation and diversity 102-8. Information on employees and other workers. Sustainability/Materiality Context 401-1. Total number and rate of new hires and turnover by age, gender, and region. General Observations Own. Company’s senior management by gender and age. There are changes in materiality from year to year, including changes not only in the topics but also in the associated indicators, which are a reflection of the Impact management in human 413-2. Operations with potential or real significant negative impacts on local assurance with relevant stakeholders for Cerrejón. rights communities. Recommendations We suggest maintaining the names of the material topics to allow year-to-year Own. Number of complaints received, closed, and in course comparisons and include indicators associated with climate change mitigation and adaptation. Furthermore, we suggest including climate change as a Own. Supplier workforce audit. material topic given its global importance and the relevance of the appropriate management of its impacts. Own. Status of resettlements and main results of post-resettlements.
Punctuality Responsible air-quality 305-7. Nitrogen oxides (NOx), sulphur oxides (SOx), and other significant air emissions. management General Observations Although the report’s assurance process and preparation was more timely than Workplace well-being and 403-2. Types of accidents and frequency rates of accidents, occupational diseases, lost last year, for the second consecutive year the report is being issued in the last occupational safety days, absenteeism, and number of fatalities due to work accidents or occupational quarter of the year, thereby losing its strategic value as a decision-making tool disease. in sustainability.
403-3. Employees with a high incidence or high risk of occupational disease. Recommendations We recommend strengthening and optimizing the report publication times so it 401-1. Average hours of training per employee. can be used as a tool for management and decision-making for senior management and others in charge of the organization’s sustainability management.
1 *Topics: Strengthening suppliers and generating production chains in the region, improved quality of life of communities in the area of influence, and engagement with the community of La Guajira were not verified by Deloitte. 2 World Business Council for Sustainable Development.
03 04 CERREJÓN SUSTAINABILITY REPORT 2017 102 ― 103
Third-Party Review Memorandum
Commitments and Goals
General Observations It should be stressed that Cerrejón has identified the most important challenges it faces concerning its material topics. In addition, we should highlight its commitment to complying with the Sustainable Development Goals and the 2030 agenda by identifying objectives prioritized by the mining sector and preparing the report based on that approach.
Recommendations We suggest setting goals for the short, middle, and long term regarding material topic management in order to measure organizational performance and progress in sustainability management. This will allow an annual evaluation on targets exceeded or not met and establish related plans of action.
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We confirm our independence from Cerrejón. All of our employees take yearly refresher training in our Ethics Policy, where we specifically declare we have no conflict of interest with Cerrejón, its subsidiaries, or its stakeholders.
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