Sustainability Report 2017 SUSTAINABILITY REPORT
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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 36Fairness 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 56Water 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