Based in Albania, La Guajira, Colombia This is the twelfth year of a sustainability report (hereinafter, Telephone number: (57) (5) 350-5555 IS 2016 or report) we have issued yearly without interruptions since 2005 to report on our economic, social, and Offices in Bogotá, Colombia environmental performance. It includes the management Address: Calle 100 No 19-54 Piso 12 and information of the companies titled Carbones del Telephone number: (57) (1) 595-5555 Cerrejón Limited and Cerrejón Zona Norte S.A. (both of www.cerrejon.com which are hereinafter collectively referred to as Cerrejón) [email protected] for the period of January 1 to December 31 of 2016.
Standard and level of compliance: This report has When it has been deemed necessary to modify the formula been drafted according to the core option of the or calculation base of any indicator compared to data Global Reporting Initiative (GRI) standards. provided in previous reports, the corresponding explanation has been included in each section. There are no changes Consolidation: Cerrejón Division of Corporate in what the report covers compared to the previous year. Affairs and Communications Corporate Name External consultancy: PricewaterhouseCoopers Carbones del Cerrejón Limited. A foreign corporation that is A.G. – PwC and Sustainable Week 100% private and domiciled in Anguilla, British West Indies. Cerrejón Zona Norte S.A. A Colombian public limited company External independent verification: Deloitte & Touche, that is 100% privately owned. Its main domicile is in Bogotá. following international standard ISAE3000, in line with our commitment, from the highest levels of the organization down, to guarantee information traceability and reliability. For more information please watch the video on the sustainability report Please see the assurance report on page 106. 002 / sustainability report
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Three decades in operation
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In 2016, we celebrated thirty years since we began making this dream a reality, which has been possible thanks to the efforts of more than 15,800 persons who have constructed one of the largest coal operations in the nation, showcasing the opportunity represented by this mineral for the Colombian economy since it is currently the second largest national export product. Thanks to these thousands of persons who have participated with us throughout our history, we have managed to position Cerrejón and Colombia as one of the foremost providers of thermal coal worldwide. After three decades and over 650 million tonnes of coal exported, having sponsored the education of more than 12,000 local youths and having contributed COP 13 billion to the nation´s coffers in taxes and royalties in the past 15 years, we continue to participate in the development of La Guajira, leaving it with an installed capacity as our legacy and as part of our contribution to this region.
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TANKER HYDRAULIC SHOVEL ELECTRIC SHOVEL PROSPECTING MOTOR GRADER FRONT-END LOADERS COAL TRUCK WASTE ROCK TRUCK (Road (Waste Rock) (Waste Rock) VEHICLE (Land / Mine) (Coal) (190 tonnes) (320 tonnes) wetting)
MAIN OPERATIONAL EQUIPMENT DIRECT-LOADING SYSTEM SINCE 1985 The coal is reclaimed and transported to Our integrated operation (mine, railway, and the loaders and placed in the ship holds. Coal port) adheres to the highest standards and the production industry’s best practices to ensure our activity is responsible towards our workers, our process The MINE - PUERTO BOLÍVAR neighbouring communities, and the environment. distance of 150km
COAL UNLOADING AT THE PORT 1. BEFORE 2. PRE-MINING 3. MINING The coal is deposited at the unloading station and the conveyor belts take it to PROSPECTION EXPLORATION WILDLIFE RESCUE TOPSOIL REMOVAL DRILLING REMOVAL OF STACKING the storage yards or directly to the ships. Performed to discover Allows us to determine AND RELOCATION The layers of topsoil are AND BLASTING OVERBURDEN Once the coal seams zones with the the amount and quality of Inventory of species for removed and placed in soil Boreholes are Shovels remove the are uncovered, the TRAIN LOADING, COMPACTION, highest occurrence resources in a deposit as subsequent rescue and banks for preservation. made with drills and overburden and load material is mined. AND WETTING of coal deposits. well as its mining potential. relocation to suitable areas After the mining operations emulsion is placed it onto 240- and Front-end loaders and/ Each wagon’s load is levelled, wetted, for their survival. Trees are have ended, this topsoil in them to fragment 320-tonne trucks. It or shovels load the coal 10,500 and compacted to prevent coal dust harvested and timber species is used to reclaim the the overburden is then taken to dump onto 190-tonne trucks. tonnes emissions. are given to the communities. disturbed land. (waste rock). sites or to backfill areas each for land reclamation. 125 - 150 cars
110 tonnes
CRUSHING CRUSHING PLANT 1: PLANT 2: 6,000 tonnes/h 2.200 tonnes/h
250 m 320 tonnes
ROAD WETTING COAL CRUSHING TRANSPORTATION 3,674 HECTARES 4. A biodegradable dust At the plants, the RECLAIMED 190 tonnes suppressant is added hoppers receive the OVER 27 yEARS to keep the roads wet coal, it is crushed, longer. This water is not and then transported suitable for human or via conveyor belts animal consumption to silos to be loaded 1.6 MILLION OF TREES PLANTED nor for crop irrigation. onto trains.
Social and Environmental Our People LAND RECLAMATION Investment 2016 Market Share DECEMBER 2016 Destination of Cerrejón coal exports IN MILLION OF REVEGETATION SOIL STABILIZATION BACKFILLING COLOMBIAN PESOS 10% AND LAND WORLD COAL 39 % Plant enrichment of After wetting the soil, NATIONAL 37% EuropE PREPARATION MARKET 4% COAL 5,925 stabilized areas by herbaceous species are 5,889 WORLD EXPORTS 170,000 planting native species planted to stabilize it. Areas for reclamation 37 % Colombia 910 mt* OtHERS 88,5 mt* MediterrANEAN 66% to form diverse, multi- These plants structure in old dumps or Cerrejón Cerrejón FROM LA 54% stratified vegetation the soil and create a old, backfilled pits GUAJIRA 15 % FROM LA communities that can vegetation cover that are reshaped, CENTRAL AND GUAJIRA 19,300 become integrated into protects it from erosion, preparing them for SOUTH AMERICA Coal exports in three decades the regional ecosystems increases infiltration the formation of new 32,4 soil to be the medium mt* 9 % and function as areas and water retention, and MORE THAN 650 mt* NORTH AMERICA for the conservation creates organic matter to support life. 1985 2016 DIRECT CONTRACTORS Social ENVIRONMENTAL and propagation of and nutrient availability. *MILLION OF TONNES native species.
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direct-loading system (in place since A Message from the CEO the company began operations), as well as the measures taken over 25 years to rehabilitate land disturbed by mining activities, are proof that, when managing the Summarizing in a couple of pages contractors, and senior management, environment is a foundational pillar, the main results and challenges of a we managed to enhance the company´s development can be fully compatible company such as Cerrejón can omit efficiency and competitiveness and with environmental stewardship. many topics we are convinced shall thus ensure our sustainability. The experience of promoting make a difference looking to the From the events of this year, we tourism, particularly through the Hotel future. Challenges, commitments, and should highlight the creation of the Waya Guajira, and the agricultural values are more relevant when spoken Guajira 360° think tank in partnership projects carried out in a portion of the aloud. Therefore, this year we made with Promigas, the Chamber of 3,674 reclaimed hectares (cumulative the decision to present the Letter from Commerce of La Guajira, and as of the end of 2016) prove that (in the the CEO in video format, through an Fundesarrollo. This think tank is an case of open-pit mining) it is possible to interview conducted in Bogotá in June of important step in contributing towards combine other economic activities with 2017 between Carolina Urrutia, director La Guajira having the most robust the exploitation of mineral resources. of Semana Sostenible (Sustainable technical elements to think about the Polarization in the organizations Week), and Roberto Junguito Pombo, region’s future based on its real-life that oppose mining on ideological the CEO of Cerrejón. We invite you to circumstances and needs. Advances grounds and appeal more to feelings watch the interview Message from the made on a project with the participation rather than data has affected the CEO. Below, we offer some key aspects of various sectors spearheaded by credibility of mining companies. that are worthwhile underscoring, TRUST must also be underscored, Cerrejón has identified one way based on this conversation. since it might become the cornerstone to face this challenge: by fully for future strategies in La Guajira. disclosing its operations to third- 2016, a Year of Cerrejón also made strides party validators, technically trained Challenges and in projects seeking to ensure the and well-informed people who know Opportunities competitive edge and continuity of that learning the details can be a Among the major challenges faced our business, including expansion source of credible information. during this reporting period, two events works at the La Puente Pit, the start were seminal: the impacts caused by the of operations at the Annex Pit, and The Future El Niño phenomenon and the volatility the execution of infrastructure plans of Mining of international coal prices. Faced to dispose of the necessary assets and Cerrejón with the former, Cerrejón kept up the and continue operations during the Colombia has very large resources programs geared towards supporting concession period approved up to 2033. that are fundamental to the nation´s the community with various partners development. Cerrejón has proven in to offer water-supply solutions in the Facing practice that this economic activity is region. Confronted with the lowest Debates compatible with agriculture and tourism prices of the past 12 years, thanks Cerrejón is proof that, properly and that it can be an engine for local to joint efforts amongst employees, managed, mining is completely economies and the development of our compatible with protecting the area of influence. The company has environment when stewardship of been directly involved in contributing Los invitamos a ver la entrevista resources and proper care of waste to the region’s prosperity based on the Mensaje del presidente is part of a company´s DNA. The
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Roberto Junguito, CEO of Cerrejón.
premise that, if the region flourishes, the nation´s rural areas. Mining (which on current consumption) and that so shall the company´s business. takes place over a large portion of nowadays about 1.2 billion people have One of the cornerstones of the national geography), insofar as it no access to electrical power worldwide, Cerrejón´s social engagement focuses operates based on the highest labour coal shall continue to be an essential on increasing local skills to access better standards, shall continue being a component in the energy basket as it is a job opportunities and higher incomes source of decent, stable employment reliable, competitively-priced, abundant, in diverse economic activities aimed in the regions that need it. Today, close well-known, and stable energy source. at leaving the region with present and to 250,000 people depend directly on For the use of coal to be feasible future installed capabilities. Thus, the mining and nearly 900,000 additional and sustainable, investments in idea is to promote sustainability and people are connected to the industry. technology are required to increase its empower communities to generate In regards to climate change, efficiency and diminish emissions. There the necessary transformations investing in and developing renewable are other options, such as capturing so as to narrow social gaps. energies is an important option, but carbon emissions in the subsoil so that In another vein, the prime need some technical challenges must still be they do not reach the atmosphere, so vis-à-vis the post-conflict in terms of the resolved, such as connections, stability, therefore the technological renovation of role of the private sector in this period and storage. Taking into account that the electrical power plants could have major of peace-building is the opportunity to International Energy Agency calculated advantages in comparison to marginal consolidate itself as employers offering that, from now to 2040, close to 40% increases in the use of renewable the best labour conditions, especially in more energy shall be required (based energies. It has been demonstrated
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to communities. In addition, in 2016 Cerrejón contributed to undertaking two strategic initiatives: a hydrogeological survey of La Guajira in partnership with the Colombian Geological Service and the organization of the Water Research Centre (Winka) project with the Ministry of Education, the local governor´s office, and theU niversity of La Guajira to generate capabilities to tackle future water-related challenges in the region. On a different note, in terms of foreign conditions, nowadays in Colombia we see a major challenge in regards to the lack of stability in the rules of the game for the private sector, including the mining sector, which considerably affects the nation´s Carolina Urrutia, director at Semana Sostenible magazine (Sustainable Week), interviews Roberto Junguito, CEO of Cerrejón. capacity to maintain and attract foreign investment. When the tax structures change, the legal rulings vary, or new that coal-based high-range plants that Unfortunately, this is an activity that is obligations (even those connected to use advanced technology are going easily attacked, and the challenge is State responsibilities) are generated to be as environmentally friendly as a for people to really learn the facts and for companies, this translates into renewable energy project requiring a figures of what Cerrejón engages in. an environment of uncertainty for similar level of investment, and would From the region’s standpoint, investors, which sends a negative produce close to four times more energy. the main challenge is the access signal out to the international arena. to and management of water. Challenges and Cerrejón is committed to making Sustainability Strategic Vision an efficient, responsible use of this Reports, an Cerrejón´s principal challenge is resource by endorsing initiatives for Exercise in the manner in which we contribute the conservation of water resources Transparency increasingly more effectively to the in the area and participating in the For Cerrejón, rendering accounts of development of La Guajira and construction of medium- and long- our operations is fundamental. These its communities. Contributions in term water-access solutions. reports make the more salient aspects the past have not necessarily been In our operations, 93% of the of the facts and figures of our yearly translated into changes in the local water used is industrial that is not fit performance available to any interested economic and social reality, and that for human or animal consumption or party. Since 2005, the company has been is why our purpose is to continue for use in agriculture. It comes from committed to the UN’s Global Compact leveraging sustainable, replicable rainwater and coal seam dewatering. initiative, and we maintain our interest in high-impact projects for the region. The other 7% is high quality that comes presenting our results and challenges on Another challenge shall continue principally from the Ranchería River; it ten principles related to human rights, to be to properly inform and participate is consumed by the 12,000 people who labour standards, the environment, in the technical debate on mining. work in the operations and is distributed and anti-corruption practices.
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Our Materiality Analysis
In order to determine the most relevant issues to present in this report, we have taken into account both their importance to our stakeholders and our view of those that are fundamental to our management. For this reporting period, we updated material issues in the following three stages. Identification – Consultation of information sources. In this first phase, we reviewed the following documents to understand the context of Cerrejón’s operations:
•• The prioritized human rights impacts and risks identified in a study by TRUST for Cerrejón (See details on page 47). •• The criteria established in sustainability indices with respect to industry performance (DJSI and FTSE4Good), as well as in relevant publications.
•• The topics mentioned in the Dialogue on the report’s materiality, held in March of 2017. image and reputation study that we carry out every two years for regional and national community included meetings and visits of prioritization exercise for the material representatives, leaders, employees, news media representatives, foreign aspects identified, by means of: and journalists. The last version by governments, NGOs, and clients. •• A dialogue session with 50 the National Consultancy Centre •• Material issues or those of great representatives from our between November and December relevance for Cerrejón’s shareholders workforce, contractors, journalists, of 2015 had 1,695 participants. and those recorded in our last communities, and local authorities, •• News items about Cerrejón in two sustainability reports. held on March 2 of 2017. national and regional news •• Based on this information, we •• A survey of 15 of our media, which totalled 3,249 identified the common and most company managers publications in 2016. relevant elements, which resulted As a result of this process, we •• Cerrejón’s corporate risk matrix. in a list of 30 key aspects. identified 14 material issues that •• Engagement activities with Prioritization and Validation: will be addressed throughout this international audiences, which We carried out a review and report. (See graphic on page 10).
responsible mining � 2016 010M / sustainabilityATE report RIALITY 011 01 our company As a result of a materiality analysis, we identified whether each item had been perceived by stakeholders as a positive or negative THE VALUE OF MINING impact generated by our operation, as a risk, as an opportunity, and/or whether it should be subject to accountability. FOR LA GUAJIRA...... 62 infografía 2 8- Improvement of quality of life of IMPACT (POSITIVE OR NEGATIVE) RISK ACCOUNTABILITY OPPORTUNITY MATERIAL ISSUES communities in the area of influence SINCE THE SUSTAINABILITY REPORT 2015
MATERIALITY PROCESS 9- Engagement with the community of La Guajira CPEOM REH NSIVE WATER 26 MANAGEMENT...... 10- Company role during 1- Access to water in the region the post-conflict period
2- Efficient and responsible use of water in the operation
CMOM ITMENT TO BIODIVERSITY IN LA GUAJIRA ...... 34 3- Stewardship and conservation of biodiversity
AT C IonS TO ENSURE AIR QUALITY...... 40 4- Air-quality management
MCOM ITMENT WITH WORK IN LA GUAJIRA ...... 72 11- Safe and healthy work environment
12- Increase in the local workforce and local supplies M ANAGEMENT OF OUR OPERATIONAL IMPACTS...... 46 13- Strengthening suppliers 5- Commitment to and generation of production human rights chains in the region
6- Respect for the right to prior consultation of ethnic communities
7- Engagement and respect ONUR MI E CLOSURE for the rights of indigenous PLAN ...... 94 communities 14- Mine closure plan
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How Do we Operate?
OUR VISION IS TO Be the leading producer and exporter of coal worldwide and a key partner for the progress and sustainable development of La Guajira.
Corporate Governance Our structure includes a shareholders’ •• Mision. Produce and export committee, which the CEO reports coal in an efficient, reliable, and to, made up of representatives from profitable manner, meeting the Anglo American, BHP, and Glencore highest standards in safety, health, subsidiaries. Our work team is organized environment, and business ethics, TO LEARN MORE ABOUT under five departments, one manager, and contributing to the progress OUR partnerships, and one director, which reports to the of our people, neighbouring CEO. Cerrejón coal is 100% exported communities, and La Guajira. CERTIFICATIONS AND and is exclusively marketed by CMC, MEMBERSHIPS, VISIT based in Atlanta and Dublin. www.cerrejon.com
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graph 1 table 1 Corporate Governance Committees for Strategic Decision-Making
Committee Objective COMITÉ DE ACCIONISTAS Shareholders’ •• It approves corporate Committee strategy, evaluates the • Anglo American company’s performance, • BHP • Glencore and approves the budget. Audit and Finance •• Deals with matters related to Committee external and internal controls PRESIDENTE and audits. Additionally, it reviews financial issues. Roberto Junguito P. Presidency •• Deals with issues that require VICEPRESIDENTE the direction and decision EJECUTIVO DE Committee OPERACIONES of senior management.
Jon Evans Strategic Committee •• Strategically directs the safety, CMC on Safety, Health, health, environment, and Environment, and community aspects of Cerrejón. Community (SCSHEC) Operational Integrity •• Monitors and evaluates the Committee management and results of operational integrity.
Internal Control •• Evaluates deviations from the Committee Conduct Policies and Guidelines, VICEPRESIDENTA GERENTE FINANCIERA LEGAL and approves sanctions, if applicable. It also approves Claudia Jorge Bejarano Álvarez changes to these policies.. Management •• Evaluates human management Development issues, such as changes in Committee organizational structure, establishment of new programs and policies, or adjustments in DIRECTOR VICEPRESIDENTE COMPITE DE PLANEACIÓN terms of personnel, performance, Y PROYECTOS talent development, compensation, Andrés Luis work, and occupational health. Soto Aparicio Management •• Approves cases required in Committee accordance with the Delegation of Authority Guide (DOAG), mainly associated with procurement and contracts. VICEPRESIDENTA VICEPRESIDENTE DE ASUNTOS DE RECURSOS PÚBLICOS Y HUMANOS • Reviews and approves programs COMUNICACIONES Y SERVICIOS Social Investment • and projects associated to the Lina Juan Carlos Committee Echeverri Consuegra company’s impact management and social investment.
These committees monitor the adoption, follow-up, and monitoring of guidelines, policies, guides, and programs.
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Standards and GRAPH 2 Certifications Generated and Distributed Economic Value To guide our management, we Thousands of Colombian pesos (COP) as of December 31 of 2016, prepared have taken as a reference and under International Financial Reporting Standards (IFRS). voluntarily adopted the following standards and initiatives that REVENUE EXPENDITURES promote respect for human rights: COP 52,632,844 •• The United Nations Global Compact. Non-operational COP 574,395,609 revenue National suppliers •• The Social and Environmental and contractors Performance Standards of COP 2,090,864,482 the International Finance Foreign suppliers Corporation (IFC). and contractors •• The Sustainability Framework of the International Council on COP 5,936,548,710 COP 802,727,383 Mining and Metals (ICMM). Value generated Employees • The Voluntary Principles on • and distributed Security and Human Rights. COP 958,805,590 •• The United Nations Framework. Government Protect, Respect, and Remedy and its 31 Guiding Principles COP 40,257,816 Additionally, we have the Private royalties paid to owner following certifications: of mining resource •• ISO 14001 (Environmental Management) COP 836,079,581 COP 5,883,915,867 •• OHSAS 18001 (Occupational Depreciation/amortization Operational revenue COP 633,418,250 (reinvestment) Health and Safety) Shareholders •• Accreditation NTC-ISO17025 to Cerrejón Environmental Laboratory
Approx. Approx. Partnerships and COP 1.1 COP 2.4 COP 3.8 Memberships billion paid in royalties and billion in net sales by billion in liabilities by CDC We are convinced that coordination Carbones del Cerrejón taxes to the government Approx. with different partners allows us to in 2016, of which approx. Limited (CDC) increase the possibilities of learning and Approx. COP 2.4 billion in liabilities y CZN as achieving shared visions whose positive COP 0.96 of December 31 of 2016 billion were included in COP 1.4 impact can be much greater and more billion in net sales by the financial statements effective than uncoordinated actions. Cerrejón Zona Norte (CZN). for that year Based on our experience, vocation, and goals, we can all contribute to the Approx. development of our country and regions. COP 3.7 COP 19.369 That is why we have established billion in CDC’s assets billion in social investments in 2016. partnerships and memberships at Approx. national and international levels that have COP 2.2 allowed us to strengthen sustainability billion for CZN assets, as management in our business, share good of December 31 of 2016
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The risk-management process includes regular reviews and assessments of control effectiveness. practices, and strengthen our lines of GRAPH. 3 research. Monitoring and review
Our Risk and Impact Management Identification of Cerrejón’s risk management has been risk events established following the standards defined in ISO 31000 and is based on Bow-Tie risk the identification, analysis, evaluation, analysis and assessment and treatment of risks by each company Action (with associated plans causes and area (including both operational and consequences) associated strategic processes) to sort them according to the impact that MONITORING their materialization would generate. AND REVIEW Once identified and analysed, critical controls are designed and applied to reduce the probability of occurrence or the impact of the risk Development of performance Identification of event. Subsequently, they are verified standards for critical controls each critical taking into account pre-established control performance standards and the creation of action plans for their follow-up.
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Image of cycling tour in the community of Santa Ana.
The main aspects we evaluate are In this context of risk management, related to health, safety, environment, we take the precautionary principle Each of our business communities, and company issues in the as a reference to avoid taking risks legal, financial, and reputational arenas. in our operation that, if materialized, areas evaluates Our risk management process could cause irreversible damage to its activities and is ensured through regular reviews, our stakeholders or the environment, associated risks in and its results are reported to our even if there is no scientific certainty. both strategic and shareholders, emphasizing the most operational terms significant risks to the business. These issues are part of their annual audit.
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Engagement with TABLE 2 Stakeholders GROUP ENGAGEMENT MECHANISMS Dialogue is the best mechanism for building common goals and •• Community Service Office (permanent) •• Complaints Office (permanent) engagement rules in this region. At Communities and •• Security Impact Dialogue Meetings (as needed) Cerrejón, dialogue helps to get to know Associations •• Engagement Agenda (permanent) our social players, as well as the different •• Air Quality Monitoring Committee sectors and groups interested in our •• Suggestions Box (permanent) management in order to understand •• Presidency Communications Meeting (biannual) their perceptions, expectations, and Employees •• Communication Campaigns by Topic (permanent) interests and to build with them the •• Intranet (permanent) means by which we go about our •• Reporting Channels (permanent) operations so that they are useful •• Follow-up Commissions for the Collective Bargaining Agreement Unions for both the country and region. •• Regular and Extemporaneous Meetings by Topic At Cerrejón, we identify our •• E-supplier platform (permanent) stakeholders based on the Organization Suppliers and •• Contractors Meeting (every two years) for Economic Cooperation and Contractors •• Audits (annual and as required) Development (OECD) document •• Tracking through contract administrators (permanent) for due diligence for engagement •• Inter-Institutional Partnerships (as required) with stakeholders, defining these as •• Participation in the Regional Commission for individuals or groups that are or can Government Competitiveness and Innovation in La Guajira be impacted directly or indirectly by and Authorities •• Participation in the Private Competitiveness Council our operations or by our programs. •• Reports (as required) • Engagement Agenda (permanent) In this regard, we work to maintain • mechanisms of engagement with •• Annual Roundtable them in order to maintain two-way, •• Visits Clients transparent communications, as •• Engagement through CMC, exclusive well as to learn about their needs marketing agent of Cerrejón coal and expectations concerning our •• News media agenda with each actor (permanent) management. This is how we are •• Journalism contest (annual) News Media and committed to exploring ways that •• Workshops for journalists (as required) Opinion Leaders allow us an increasingly fluid and •• Meeting of the CEO with groups of journalists (annual) • Response to requests for information or inquiries (permanent) higher-quality dialogue, especially with • all our stakeholders in La Guajira. •• Engagement agenda (permanent) Academia •• Partnerships (as required) •• Forums and events (as scheduled)
Trade association •• Meetings and boards of directors (as required) and companies •• Forums and events (as scheduled)
•• Reports on the status of the Third Party Review Committee (biannual) •• Newsletter to national and international NGOs stakeholders (7 times a year) •• Engagement agenda (permanent) •• Responses to requests for information or inquiries (permanent)
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02 Integrity and Ethics
CERREJÓN VISITORS CENTRE
Integrity and Ethics
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At Cerrejón, corruption and bribery are unacceptable. Our zero-tolerance policy is aligned with the highest international standards on ethics and transparency. To meet these standards, we rely on constant innovation and absolute clarity and example on the part of our executives: there are never excuses for corruption that costs the country so dearly.
Our main tools to ensure Consequently, the Delegation compliance with our standards of of Authority Guide (DOAG) and our ethics and integrity are corporate Conduct Policies and Guidelines guide governance, conduct policies and our organization in all its actions. guidelines and, of course, the constant These guidelines contribute to the monitoring of compliance, as well strengthening of controls and help as anti-corruption management prevent the occurrence of identified risks. and reporting channels available for anyone associated with our business. Conduct Policies and Guidelines Corporate Committed to the premise of working Governance with integrity, we have 19 mandatory Principles, rules, and mechanisms and enforceable policies applicable to that regulate the interaction of key our operation in Colombia, including all decision-making bodies in the company our employees and the organizations is fundamental to us. Therefore, our with which we work. In the current shareholders (Anglo American, BHP, context, these measures are particularly and Glencore) have mandated our relevant as we are aware that ethics and CEO’s office to reach targets and to transparency issues deteriorate the value define the correct way to achieve them. of economic activities in all industries.
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02 Integrity and Ethics
1. Ethics (includes Anti-Corruption Guide) GRAPH 4 2. Conflict of Interests Employees trained 3. Political Activities in corporate policies in 2016 4. Human Rights 5. Social Labour Responsibility Professionals 997 6. Leadership Positions 7. Safety, Health, Environment, Technicians 2,675 and Community 8. Alcohol and Drug Use New employees 309 9. Equal Opportunities 10. Productive Working Environment 11. Customer Relations and Management Anti Corruption Product Quality Facing Conflicts Management 12. Communications of Interest Anti corruption management is led by 13. Management Oversight Any business relationship Cerrejón our Legal Department’s Compliance 14. Fraud Control establishes with third parties, including Office, which ensures that prevention 15. Risk Management hirings and donations, can lead to processes are carried out through 16. Security Systems conflicts of interest that jeopardize the anti-corruption program, which 17. Travel Expenses and other Expenses the impartial decisions we make. contains a plan for training, reviewing, 18. Fostering Employability We therefore conduct due diligence and endorsing high-risk due diligence. for Communities in the Area to be able to identify potential conflicts Anticipating the indications of the of Direct Influence of interest with government employees national government, the anti corruption 19. MLFT (Money Laundering and or third parties before entering into a program was implemented in 2013. Financing of Terrorism) Self-Monitoring contractual or employment relationship. Therefore, when the Superintendency and Risk Management System We also carry out a declaration of of Corporations obliged companies conflicts of interest every two years, similar in nature to Cerrejón to have an The Internal Control area is responsible where all professional employees must anti corruption program (implemented for the disclosure of each of the corporate report situations that could constitute a as of March 30 of 2017), the company’s policies through dialogue or courses to conflict in the course of their activities. program had already been in employees and partners. An example With respect to the declaration existence for more than three years. of this is the certification in policies that exercise, the area carries out the We perform an annual risk we provide to professional employees respective analyses and informs analysis for corruption for each of every two years, and orientation courses, the employee when a possible Cerrejón’s departments in order to which are carried out with qualified conflict has been identified and identify which of them are vulnerable technical personnel (technicians, makes recommendations on how to and start instruction and training to operators, auxiliaries, secretaries and handle it. Where the declarant holds prevent the risks from materializing. office workers) after their vacations. an executive position, the matter From our due diligence procedure is presented to the Internal Audit for the activities that we conduct Committee, responsible for making with third parties, we also apply the decisions and corresponding actions. risk management methodology to All our employees have an identify situations that may lead to obligation to report any possible corruption, money laundering, or conflict as soon as it has been terrorist financing and to conduct audits For more information, please watch identified to ensure that relevant to prevent or mitigate such risks. the video: Ethics and Integrity and timely action is taken.
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Finally, we conduct quarterly monitoring processes to ensure compliance with procedures and avoid any kind of deviation. 430 813 1 attended anti instances of due diligence exhaustive review of the anti Reporting corruption assessed from the perspective corruption program in 2016 Channels training in 2016 of the risk of corruption or on behalf of our shareholders money laundering and/or confirmed that we have made The Internal Audit Department is terrorist financing associated significant progress on this front responsible for managing reporting with purchases and contracts, and indicated the need to work channels, conducting the necessary donations, staffing, and delivery on two risk recommendations, investigations, and ensuring of valuables to third parties. for which we have already that, through the department taken improvement actions. committee, the required actions are taken when deviations from the •• We received 71 reports through channels Code of Conduct are evident. arranged for this purpose in 2016, of We have the following reporting which 67 were closed that same year and four are currently being analysed. channels so that any employee, •• In 2016, there were no contractor or third party may report Ethics Line serviced by: corruption incidents. anonymously or confidentially any Navex Global deviations from the Ethics Policy, (free telephones) Conflicts of Interest, Fraud Audit, Cerrejón: An Open From Colombia: Anti-Corruption Guide, and others. Door Operation first dial 01-800-911-011. Annually, more than 15,000 people When prompted, enter from communities, authorities, NGOs, the following number: news media, tourists, students, and 844-287-1872 others, visit our operations to learn Web page: www.eticacerrejoncmc. ethicspoint.com
Internal Audit Department: telephone +57-1-595-2777 extension 2777 or e-mail address: [email protected]
Information also available at www.cerrejon.com
We are pioneers in implementing an anti-corruption program in 2013. In July and August of 2016, ten Cerrejón areas (comprising 100% of those identified as vulnerable to corruption) were analysed for risk.
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02 Integrity and Ethics
Viewpoints on the Cerrejón Visitor Centre tour about our processes and our social The Visitors Centre, in addition to and environmental practices. All of being a reflection of our commitment to them are welcomed at our Wopushüwa transparency in our processes, is part of Visitors Centre by guides who are a determined commitment to promote experts in coaextraction. These guides the growth of tourism in the region. lead guests on a tour that includes Learn more about this initiative the operations areas and the sectors in the following article published in undergoing land reclamation, a Semana Sostenible (pág. 23). pioneer program in the country in the conservation of tropical dry forest.
For more information, watch the video: Cerrejón Visitors Centre
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available, any tourist arriving in the region can interact with the traditions, origin, and magic of a millennial culture, represented by the Wayuu population living in La Guajira,” commented Lina Echeverri, vice president of Public Affairs and Communications at Cerrejón. Upon arrival at the mine, the tour is greeted by operators with a long history in the sector. With them, visitors can experience being a miner and approach a truck or a giant tyre. The Wopushüwa Visitors Centre is consolidated as one of the company’s investments to leverage the region’s tourist sector, belonging to a cluster including the Hotel Waya Guajira and the DesQbre Guajira Museum. The Waya Guajira, the first four star hotel with LEED certification in the department, is operated by OXOHOTEL. It was launched in 2013, product of a partnership between Who said that is drawing attention to coal (the second Cerrejón and the consortium formed mining is most important export product in by Abacus, Contempo, Inversor, incompatible Colombia) and also promoting tourism. and EGSA. The museum is in the with tourism? Cerrejón, one of the key companies in final stages of construction and will Cerrejón is developing a strategy the country dedicated to coal extraction, open new opportunities for learning to integrate the knowledge of with more than 30 years in La Guajira, about Guajiran history, culture, and its production processes with is opening its doors to more than biodiversity, together with geological the promotion of the natural 14,000 visitors a year. These students, and fossil finds of great importance, paradise of La Guajira. tourists, and communities visit the attracting the attention of national Did you ever imagine that a coal Wopushüwa Visitors Centre, located in and foreign visitors. La Guajira also mine would be a tourist attraction in the municipality of Albania. At Cerrejón, has spectacular protected areas such Colombia or in any other part of the one of the world's largest open-pit coal as the Kaurrele National Nature Park, world? It seems untrue, but it exists in La mines in the world, visitors become neighbouring the coal port of Cerrejón; Guajira. This department offers a wide familiar with and learn about this mining La Macuira, an oasis in the upper part variety of possibilities, ranging from process that generates energy for the of the peninsula, which surrounds exploring the cultural, ethnic, landscape, world, progress for Colombia and the with greenery the Nazareth area, and mineral wealth of the region, to department, as well as employment characterized by its semi arid vegetation; extreme sports in the crystal clear waters and tourist opportunities for the area. and the Fauna and Flora Sanctuary of its wonderful beaches, a trend that “In addition to learning about a large of Los Flamencos, which fills the sky is growing and opening the doors for open-pit mine that follows the highest of La Guajira with pink brushstrokes, specialized international positioning. It social and environmental standards with the singular flight of these birds.
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03 OUR COMMITMENT TO THE ENVIRONMENT
OUR COMMITMENT TO THE ENVIRONMENT
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03
At Cerrejón, we are convinced that respect for the environment is one of the fundamental elements of any successful business strategy and even more so in the mining industry.
The focus of our policy and environmental management model aims at minimizing environmental impacts through the identification and timely evaluation of these impacts, and the establishment of preventive, mitigation, and compensation measures, as well as the implementation of monitoring and oversight systems to verify the effectiveness of audit systems and compliance with Colombian regulations. We are aware of the importance of the stewardship and efficient use of natural resources and the protection and conservation of biodiversity in the area where we operate for the benefit of our neighbouring communities and the region in general. Therefore, we have an integrated water management system, a vital resource for La Guajira; we work to conserve the native fauna and flora, especially those declared to be at risk or in danger of extinction; and we make every effort to maintain air quality within the levels established by national regulations. The proper management of these resources, supported by continuous monitoring of our performance, is part of our contribution to the sustainability and protection of the environment in the department.
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Integrated Water Management System
Being a mining company that operates in a semi-arid area, we are clearly required and committed to use water responsibly and contribute to the search for supply solutions for the most vulnerable communities.
Access to water in La Guajira is by nature very complex. mainly in the middle and upper sectors, where there Extreme drought and high levels of evaporation (in are the greatest difficulties to access water. many cases doubling rainfall amounts), especially Each drop of water counts for Cerrejón. That is why we in the middle and upper part of the department, developed an integrated water management system focused are realities that hinder access to water. on three fundamental pillars: efficient use of water within our Climate variability in recent years, with a tendency operations through water-savings programs in which we to exacerbate droughts, has accentuated the scarcity of take care of every detail of our production process; a basin- water in La Guajira. Amongst other issues, this fact has wide approach involving programs for the conservation and been reflected in a lower availability of this resource both protection of water resources; and participation in solutions above ground and below ground. This is precisely the for access to water in neighbouring communities through the situation in the Ranchería River basin, a key body of water implementation of mediated initiatives amongst the parties. in La Guajira and an essential source for its residents and In addition, for our actions to have a greater impact, we for activities such as agriculture, livestock, and mining. have partnered with private companies, the national and local This situation is compounded by the geographical governments, civil society, and especially with communities dispersion of indigenous communities, who represent to identify solutions for the region’s development and well- more than 40% of La Guajira’s population and live being, which in turn aim to contribute to the achievement on isolated ranches in rural areas of the department, of the United Nations Sustainable Development Goals.
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“The uncertainty represented by climate change only guarantees that this subject matter shall constitute an increasingly greater challenge”.
Jorge Ricaurte
On June 16 of 2017, the Chamber of Representatives ratified the Paris Agreement on climate change in Colombia. With this milestone, the issue has become more relevant in the nation and, of course, in La Guajira. According to the National Survey on Water conducted by the IDEAM in 2014, this peninsula is one of the most vulnerable areas to climate change, especially since agencies, clients, investors, it is a tropical dry ecosystem. This department has journalists, and members of one of the highest water deficits nationwide and, due neighbouring communities to learn to its aridity index, is classed as “highly deficient”. about, witness, and evaluate our If, coupled to this, we add the major floods in 2010 due responsible management of this to an extreme La Niña phenomenon and the severe important resource in our region. drought in 2015 resulting from a prolonged El Niño However, water management in La phenomenon, we can see that we are not impervious to Guajira is a responsibility that all of climate change and that, given its impacts in La Guajira, us who inhabit the peninsula must we require a comprehensive water management plan. shoulder. It behooves all of us who The Paris Agreement has generated guidelines and use and consume water from the policies geared towards this issue. The guidelines on Ranchería River to engage in fruitful water and adaptation to climate change drafted by dialogues to promote a culture of the United Nations and the Economic Commission water stewardship and preservation. for Europe propose that the process of drafting and At Cerrejón, we are committed implementing adaptation measures must be based on to transparency in our use and practical lessons learned. This is what we decided to management of this vital resource do at Cerrejón — evaluate our processes and rigorously and the continuous improvement of analyse our surroundings to implement a comprehensive its use. The uncertainty represented water management plan based on three strategic by climate change only guarantees pillars: efficient use, a basin-based approach, and that this subject matter shall participation in solutions. In other words, efficient use, constitute an increasingly greater taking care of the resource, and implementing actions challenge so, beyond any useless oriented towards overcoming water-access problems. finger-pointing, we must jointly Our water management model is becoming increasingly devise solutions to real-life threats. better known. We continuously receive visits from environmental authorities, NGOs, auditors, government In other words, efficient use, taking care of the resource, and implementing actions oriented towards overcoming water-access problems.
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Knowing the An important indicator of this basin’s conservation status is its ecosystem Ranchería River services, which provide a stopover for migratory birds and other species.
Production activities that make use of licensed water: Information on the area
Headwaters: Chirigua plain CARIBBEAN Mining activities ELEVATION: 3,875 msnm SEA 1,8% Ranchería River surface extension: 4,070 km2 Domestic Catchment area LA GUAJIRA 5,7%
Indigenous communities Livestock 6% Farming communities and Guajiran settlers VENEZUELA
Agriculture African-Colombian communities native to the region 86,5%
Source: Resolution 1725 of 2012 by Corpoguajira
Use of water according to production activity
RIOHACHA 1 Agriculture CARIBBEAN Hectares of crops SEA
MAICAO 2
RANCHERÍA RIVER
RÍO RANCHERÍA RIVER BAsIN traditional RICE BananA palm oil trees bEANS corn ALBANIA 3
Livestock rearing Number of animals raised
4 BARRANCAS
5 FONSECA DISTRACCIÓN 6
Goats and sheep cattle fowl pigs horses Source: National agricultural and livestock census 2014
Domestic 7 SAN JUAN DEL CESAR Total population of the Ranchería River basin
1. Riohacha 5. Fonseca 2. Maicao 6. Distracción VENEZUELA 3. Albania 7. San Juan Barrancas del Cesar SIERRA NEVADA 4. DE SANTA MARTA 420,000 PERSONS APROX. Source: Land Use Plan for the Ranchería River Basin 2011 by Corpoguajira and the National Nature Parks. 2016 � WWW.CERREJON.COM 029
The Cerrejón train is used to supply 92 communities (nearly 8,100 people) with up to 89,000 litres of water a week.
The so-called poor-quality water is used principally The Efficient Use for dust suppression on the mine´s haul roads, as per the of Water provisions in our Comprehensive Environmental Management in Our Operations Plan. This water, which is not apt for human or animal Water Capture consumption or for irrigating crops, comes mainly from: Water capture at Cerrejón is carried out in compliance •• Run-off: 10,851,347 m3 (86%). Obtained from rainfall with the permits and concessions granted by the coming into contact with waste rock and coal and autonomous regional corporation, Corpoguajira. draining towards the interior of the mine pits. In 2016, we captured 13,528,558 m3 of water, 93% of which •• Coal-seam dewatering: 910,724 m3 (7%). Water contained corresponded to sources deemed to be low quality within the coal beds, with high salt contents in chlorides (12,580,840 m3) and only 7% of which and sulfates typical of the nature of the coal itself. was high quality (947,718 m3). •• The Sea: 818,769 m3 (7%). Ninety-six percent (96%) of the water used in Puerto Bolívar for the
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operation and human consumption by our workers due to heavy rainfall registered throughout the and the community comes from the sea and is year, rising from 35,264 m3 to 2,189,685 m3. previously treated at our desalination plant. We have three types of authorized discharges: industrial The volume of poor-quality water is calculated (87%), mining (13%), and domestic (0.2%). These waters are based on records from flow metres at the coal handling principally discharged into the Ranchería River (90%) and plant and the number of trips reported daily to the truck four other bodies of water that are also a part of its basin. dispatch centre by the operators of the tankers employed The water is treated prior to discharge as per the permits for dust suppression on the operation’s roads. granted by the environmental authorities and in compliance The high-quality water is employed mainly for human with existing environmental standards. The receiving bodies consumption by our employees and contractors and for of water, from lesser to greater discharge volumes, are:
GRAPH 6 GRAPH 5 distribution of 90.3% SOURCES OF Water Capture treated water The main course of discharge the Ranchería River 1,978,422 m3
39 % Aquifer of the Ranchería River 369,216 m3
100%
61 % Ranchería River 0.2% 578,502 m3 -The Madre Vieja Lagoon 3 6.4% 3,800 m Tabaco Creek 1.3% 1.8% 139,164 m3 -Cerrejón Creek Bruno Creek distribution to neighbouring communities. This water 28,953 m3 39,347 m3 comes from the Ranchería River and its aquifer as follows: This catchment is quantified by means of flow Water-quality measurements are based on the Water metres located on the water intakes of the water Quality Index (WQI) established by the U.S. National Sanitation bodies and the wells located in the aquifers. Foundation (NSF). During this period, the average NSF WQI We achieved a 25% reduction in the total water captured in for the Ranchería River was 68 at the station upstream 2016 compared to 2015. Specifically with respect to the high- of the mining operations, prior to it entering the area of quality water, our capture dropped by 31%, principally due to influence of Cerrejón, and 66 at the station downstream, the measures adopted for leak and pressure controls in the rated as average quality at both stations. It is worthwhile water distribution system. In turn, the reduction in poor-quality clarifying that this index is impacted by the neighbouring water capture was mainly due to the rainy season, which populations and farms as well as by the mining operations. reduced operational needs for water for dust suppression. Protecting Discharges the Basin Although our water capture dropped compared Through our comprehensive water management system, to 2015, the volume of discharges in 2016 increased we seek to quantify the social, cultural, ancestral, economic,
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The NSF WQI evaluates nine sanitation parameters: dissolved oxygen, pH, temperature, faecal coliforms, biochemical oxygen demand (BOD), nitrates, turbidity, total solids, and phosphates.
GRAPH 7 Ranchería River water quality trend NSF WQI 2016
100 EXCELLENT 90 80 GOOD 70 60 AVERAGE 50 40 BAD 30 20 APPALLING 10 0 DEC JAN MAY JUN JUL AUG SEP OCT NOV DEC
PALOMINO CUESTECITA No samples were taken in February, March, or April as the river was dry. Note: Palomino station — upstream. Cuestecita station — downstream.
GRAPH 8 BASIN PROTECTION
INTEGRATED WATER • Improvement of water MANAGEMENT supply • Catchment basin • Water collection and conservation storage: - reservoirs • Seedling production - tanks - pools • Buffering and replanting of springs • Distribution systems: irrigation SUSTAINABLE and bodies of water PRODUCTION ECOSYSTEM • Water disinfection SYSTEMS CONNECTIVITY
• Property planning • Cleaner production systems • Training of forestry guards • Organic fertilizer • Vermiculture • Training in basic sanitation GOVERNANCE and hygiene • Home vegetable gardens • Silvopasture systems • Local coordinating committees • Hedges • Micro-basin committees RESPONSIBLE MINING� 2016 032 / SUSTAINABILITy REPORT
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3,000 persons belonging to 419 families from 17 communities at Albania, Barrancas, and Hatonuevo benefitted.
protected2,442 hectares of riparian buffer zones and forest areas under preliminary conservation agreements with families living in the basin..
community4 greenhouses (150 m2) built — growing 3,000 plants of native species. In 2016, we implemented eight solutions to improve water access (including two traditional water ponds) for more than 1,000 people. Generation of storage capacity for and environmental value of water 163,800 in the region. Our management on litres for every family in five this front began with the definition of communities, thereby benefitting 877 persons from 128 families. water production and water stress zones, mediated with basin users. Drainage basin With this input, we designed basin Area of surface water that 3 conservation programs based on pours into a natural network projects aimed at reinforcing community four sub-components: integrated with one or several natural capabilities in the micro-basins of the water management, sustainable streams that meet in a Bruno and Pupurema creeks to benefit production systems, ecosystem larger watercourse and may 1,198 persons from seven communities. connectivity, and water governance. flow out into a main river, (see graph 08, page 31). a natural water deposit, a We are working on conservation Design and installation of swamp, or directly into the projects at the basins of the Pupurema, sea. Decree 1729 of 2002. El Pasito, Bruno, Majagüita, and home15 gardens of 400 m2 each with Paladines creeks, generating social and agroforestry designs and drip-irrigation economic benefits for communities systems for the production of over and promoting their sustainability. 40 food species in four communities.
158families trained in the efficient use of water in six communities, benefitting 992 persons.
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Solutions for available resources and putting them Neighbouring at the service of the region. Thus, we Communities to put into operation the Water Train, an Access Water initiative that uses a tanker wagon from We promote the implementation of the a mining train refurbished to transport Other Results • More than proper technologies, the reinforcement 89,000 litres of drinking water. Once the 5,400 persons from of capabilities, and participatory tanker wagon arrives at the distribution 48 communities have benefited from comprehensive management. points, it discharges the water into water-supply solutions Since 2014, when the drought smaller tanker trucks that then take this and comprehensive emergency was decreed in La Guajira, resource to strategic points identified basin management. we have distributed over 70 million jointly with the community in order to • We implemented litres of water to more than 20,000 reduce travel and distribution times. 8 including persons in communities neighbouring Furthermore, recognizing the solutions traditional water reservoirs our operations. We have repaired importance and impact of joint efforts, (jagüeyes), deep wells, and 79 windmill-driven water pumps we have established partnerships with technological retrofitting to (representing 3.2 million litres of water a agencies such as USAID, the Colombian ensure physical access to day), and we have distributed over 1,640 Geological Service, the Embassy of water, making tanks for the proper storage of water. The Netherlands, and the Sovereign 65,500 liters of water available a day. One of the initiatives we proposed Order of Malta (amongst other entities) • We designed a desalination for helping the state with the crisis to devise medium- and long-term prototype based on Wayuu consisted in using the company´s water-supply solutions in La Guajira. traditions and customs for the treatment of 100 litres of water per day. • We carried out 3 projects GRAPH 9 aimed at water conservation. • We reinforced COMPREHENSIVE 21 PARTICIPATORY MANAGEMENT water committees on Organization of: • Organizational framework the administration of • Operation and maintenance water resources. framework • Financial framework • Plans
SKILL STRENGTHENING Training in: Our Challenges PHYSICAL • Systems maintenance and •• Reinforcing our efficient use of operation ACCESS • Sanitation and hygiene water in the operation, continuing • Community organization with efforts to keep reducing • Project management high-quality water capture. •• Promoting and taking concrete SUITABLE TECHNOLOGIES conservation measures Implementation of actions for: • Collection for water resources. • Storage •• Participating in water-access • Distribution • Treatment solutions and, at the same time, understanding community priorities.
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Vermilion cardinal (Cardinalis phoeniceus) Southern tamandua (Tamandua tetradactyla). Commitment to Guajiran Biodiversity
Because of its ecosystem value, at Cerrejón we seek a sustainable interaction between wildlife species and our operations, evaluating our impacts, including connectivity to ecosystems and wildlife relocation programs, and administering protection, offset, and conservation methods for threatened species
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Colombia is the second most The large supply of resources in the such as deer and felines has become biodiverse country after Brazil; it vicinity of the mining project is mainly a unviable in most of the territory. The ranks first in bird and orchid diversity, result of our protection, conservation, connectivity to the patches of forest in and second for plants, amphibians, and offset programs, which focus on Cerrejón’s valley is of vital importance butterflies, and freshwater fish conservation activities that we perform to conservation protocols at both the according to Colombia’s Information in and around the operation, for two national and international levels. System on Biodiversity. Fauna and flora main categories: (1) protection and To promote the conservation of are important not only ecologically education against poaching and other these valuable ecosystems, we have but also economically and socially, activities that threaten species and (2) participated in creating a strategy as they are the basis for sustaining land reclamation that results in extensive for protected areas in the region agriculture, feeding the population, meadows. Deer come to these areas, in partnership with Conservation and keeping the climate in balance. and they in turn attract jaguars. International, Herencia Ambiental Plant and animal diversity in the Caribe (Caribbean Environmental Ranchería River’s middle basin, which Protected Areas Heritage), and Corpoguajira, and we has hosted our area of influence for more The Ranchería River valley is historically have actively participated in studies than three decades, is largely a product influenced by different land uses and in defining regionally protected of a series of age-old interactions that that have caused high levels of areas. This strategy includes four newly have occurred as a result of climate fragmentation in species and landscape. protected areas and two that are in the change, geological processes, and As a result, the presence of some species process of being declared protected. migrations from the Amazon and North America. Currently, biodiversity corridors have been identified between GRAPH 10 CONSERVATION OF VULNERABLE SPECIES the Serranía del Perijá and the Sierra Nevada de Santa Marta through the river courses in the Ranchería valley, which constitute essential habitats for supporting wildlife that also connect patches of tropical dry forest, one of the most fragile ecosystems in the country. For the zone in which our operations are located and the area surrounding them, different groups of collared peccaries, deer, howler monkeys, birds, and reptiles can be found, and in the FAUNA FLORA last two years we have confirmed the permanent presence of jaguars. These •• 9 American crocodiles in captivity for •• Panama redwood (P. pinnatum) breeding. • Yellow poui (T. billbergii) animals are at the top of the food chain • •• 7 years of the sea turtle protection •• Monkey pot (L. minor) for the entire South American continent, agreement See more on page 36 and while they are currently extinct in •• 49 patrollers, 84 families who benefit. most of the Americas, Cerrejón’s zone is •• EIn the Ranchería River on Cerrejón acting as a connection point between property, a 2.6 metre American crocodile the animal and plant populations of the was rescued, weighing 79 kilograms. 9 American crocodiles in captivity for eastern plains and Amazon regions to breeding. . populations in the rest of the Colombian For more information watch the video on Biodiversity Caribbean and those in Central America.
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Species Newly Protected Areas Conservation The resources we have assigned to The Comprehensive The Bahía Portete studying and monitoring La Guajira’s Management National Nature ecosystems have allowed us to analyse District for the Park is 14,079 the species in context. Consequently, lower Ranchería hectares in the we have found that within Cerrejón’s River basin is municipality areas there is a high concentration 32,443 hectares in of Uribia. of viable populations of species the municipalities of Riohacha, (a required minimum number of Manaure, Maicao, animals so that the species survives) and Albania. that are threatened, endangered, native, and migratory that are largely
The Montes de The Ranchería absent from the rest of La Guajira. Oca Protected River Delta Based on categories established Forest Reserve Comprehensive by the International Union for Nature is 12,000 Management Conservation (IUNC), we found four District is 3,601 hectares in the species that are currently threatened hectares in the municipalities in areas around Cerrejón: municipalities of Maicao, of Manaure and •• Dryland mouse opossum Albania, and Riohacha. (Marmosa xerophila) (VU) Hatonuevo •• Jaguar (Panthera onca) (VU) •• Margay (Leopardus wiedii) (NT) •• Miller’s long-tongued bat (Glossophaga longirostris) (DD)
Wildlife Refuge Centre Results from 2016 Areas in the Process of Being Declared Protected 4,182 animals rescued. The Mushaisa The Aguasblancas area is 313 - Santa Helena hectares in the area is 1,651 hectares in the 412 municipality animals rehabilitated municipalities of Albania. of Albania and Hatonuevo. 315 Bahía Portete Natural National Park. animals cared for
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Additionally, we found two species of deer (Odocoileus cariacou CONSERVATION OF SEA TURTLES and Mazama sanctaemartae) that Since 2007, we have voluntarily developed a conservation project for sea have not been evaluated, neither turtles in the Alta Guajira region, together with the community of Bahía Hondita, nationally nor internationally. which has allowed the release of more than 6,400 turtles into the sea. This In our Wildlife Refuge Centre, program relies on the guidance and supervision of Corpoguajira, Conservation we have cared for more than 11,000 International, and the Colombian Navy. To date, 2.3 kilometres of beaches animals since 2007, with the highest with optimum conditions for sea-turtle nesting are being preserved. At Bahía levels in 2012 and 2014, associated with Hondita, an indigenous community made up of 107 families, conservation new areas of mining. This centre plays efforts for the species have allowed the protection of nests and the release of a key role in raising the community’s young turtles. Participating communities recognize the benefits of protecting awareness and discouraging illegal sea turtles, which includes an increase in tourism and the development trafficking in wildlife.H ere we rescue, of new projects related to turtle conservation, which generate jobs. monitor, and rehabilitate animals, mainly reptiles, birds, and mammals. Approximately 1,200 to 1,800 animals with some form of stress, capture, or mistreatment are taken in by Wildlife Refuge Centre annually, of which between 800 and 1,000 recover in the infirmary, and can be relocated to areas such as the Montes de Oca, the Serranía del Perijá, or reclaimed mining areas. Thanks to the River Turtle Recovery Program, close to 300 Colombian slider turtles are being released a year, and nine American crocodiles (a threatened species) are being kept for captive breeding.
We invite you learn more by reading our publication “Biodiversity at Cerrejón”, available on our webpage at www.cerrejon.com
Threat Categories According to the IUNC VU NT dd
vulnerable near threatened deficient data
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Land Reclamation and Forest Offset Our Land Reclamation Program, in operation for 27 years, has reclaimed GRAPH 11 3,674 hectares, which corresponds LAND REHABILITATION PROCESS to 96% of the areas where we have finished mining operations. 1 This is a pioneering program in the PRE-MINING country that has become a benchmark Land survey and wildlife relocation for the national and international mining community. It is the result of a combination of science, technology, experience, and traditional knowledge that we set in motion at the beginning of our operations, convinced of the importance of soil conservation. This program has managed 3 COAL MINING to transform land used in mining Waste rock removal activities into forest area with a and coal extraction stable and productive environment that helps to establish, support, and spread native flora and fauna species. These reclaimed lands are interconnected to regional ecosystems as providers of goods and services.
5 LAND STABILIZATION Protection, genesis, organization, and structural development hectares3,674 reclaimed since 1990, with 113.7 hectares reclaimed just in 2016.
million1.6 trees of 40 native tropical dry forest species, which includes the following threatened species: lignum vitae (Guaiacum officinale), yellow poui (T. billbergii), raintree (S. saman), ebony (D. ebenum), Panama redwood (P. pinnatum), and monkey pot (L. minor).
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Thanks to reconstructing these habitats, we have seen the return of wildlife species, which have spontaneously been established and preserved, such as the gray brocket LESSONS deer, collared anteater, margay, LEARNT red-footed slider, American kestrel, Based on experience and other significant bird, insect, and learning acquired amphibian, and reptile populations. through our Land This project has been the subject Reclamation Program, 2 of research generating awareness we have developed other LAND REMOVAL that has been shared with different complementary research Deforestation, removal and preservation of academic entities, including the initiatives. One of these is edaphic materials University of La Guajira, the University the Program for Research of Magdalena, the University of the and Application of Rural Atlantic, Córdoba, Popular del Cesar, Production Systems 4 Nacional and Alcalá of Spain, the such as sustainable LAND DEVELOPMENT Land reconfiguration and Colombian Society for Soil Sciences, the agri-silviculture, in which formation of new soil Institute of Alexander Von Humboldt, we allocate technology and other entities such as the National to local communities Environmental Permitting Authority, for better land use and the Autonomous Regional Corporation management. This program of La Guajira (Corpoguajira), the seeks to implement Ministry of the Environment and methodologies to fight Sustainable Development, and poverty, land degradation, the National Mining Agency. desertification, and climate change in tropical dry OUR GOALS forests, which is aligned •• Prioritize the reproduction of native with our Sustainable species that are threatened or Development Objectives. protected in plant nurseries to There are currently six 6 be planted in reclaimed areas. communities and a total of •• For 2033, our goal is to continue 150 people associated with REVEGETATION Ecological diversification expanding the number of hectares the program, which has reclaimed annually, and by doing resulted in improvements so, quickly close the mining cycle. in soil quality indicators for 70 hectares, where 50 tonnes of food have been produced.
7 POST-MINING Mature forests, protected areas For more information, watch for conservation the video: Reclaiming Land
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03 OUR COMMITMENT TO THE ENVIRONMENT
Actions to Ensure quantities of soil, waste rock, and coal. Ensuring air quality is one of our Air Quality priorities, for which we implement advanced technologies, undertake our As a result of our commitment to own oversight activities, and perform the environment and to the health continual monitoring and follow-up of our workers and neighbouring activities throughout our integrated operations (mine, railway, and port) communities, we rely on a management in order to achieve this objective. system to control and mitigate We strictly monitor dust and gas particulate matter emissions and concentrations in the air in accordance measure emission levels (air quality) with the guidelines and frequencies in areas neighbouring our operations. established in Colombian standards and in our own Comprehensive Environmental Management Plan in order to keep levels within threshold limit values. Said verification is done through an air-quality monitoring network and biannual campaigns for measuring gases. The monitoring network is made up of seventeen stations located in the areas of influence of the mine, railway line, and Puerto Bolívar, with one industrial-type station in the port area. They primarily measure two parameters: total suspended particles (TSP) and suspended particles with a diameter of less than 10 microns (10PM), keeping in mind that these are agents that have a potential impact on the well-being of a community (TSP) and on human health (10PM).
Our air-quality monitoring network includes 18 stations. In addition to monitoring and oversight files from our Comprehensive To that end, we have made that regulate the availability of Environmental Management Plan, human resources, technicians, oxygen, nitrogen, and sulfur, amongst we rely on an atmospheric emission technology, logistics, and other others, which are vital to maintaining permit, renewed in March of 2015. operations available, and we have ecosystems and human health. Both these instruments demand made important investments that One of the main challenges that we rigorous controls for managing the allow us to address responses and face as an open-pit mining operation operation’s environmental impacts, make timely and relevant decisions. is generating particulate matter (dust including mining and managing Air quality is directly related to suspended in the air), a product of the mine, railway transport, and biological cycles and natural processes removal activities and handling large shipping via Puerto Bolívar.
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We have an Air Quality Monitoring Network We take care of air quality composed of 18 stations throughout the operations (mine, railway, and port) to verify the effectiveness of the implemented controls, and it is one of the One of the main impacts of our activity is the largest networks of its kind in the country. In Bogotá, generation of particulate matter (dust), so we according to the District Environment Department, undertake different control actions throughout our the Air Quality Monitoring Network in the city is operations. composed of 13 fixed stations and a mobile station.
Emission Sources
Transport of waste Loading and Wind erosion of Stacking, Topsoil removal Spontaneous Drilling and Coal Coal Coal rock, coal, or topsoil unloading areas without crushing, or for exploitation coal blasting of loading transportation transportation in trucks accounts of removed vegetation cover. reclaming of mining areas. combustion in waste rock. into ships. by train. by conveyor for 60% to 65% of the materials. coal. exposed areas. belts. emissions in this activity.
IMPLEMENTED CONTROLS
the mine Addition of a biodegradable dust suppressant to keep roads wetted and compacted longer. Continual irrigation of roads Impact sprinklers with low-water quality, not for loading and suitable for human .or animal unloading areas. consumption, nor crop irrigation. Dispersion model, prior evaluation of High-flow sprinklers the operation impact for coal piles. The water used in the control on air quality. measures is of low quality, not suitable for human or animal Personnel to control consumption, nor crop irrigation. self-combustion It comes from dewatering of coal of coal seams. Covered seams and from rainwater. Water sprinkler systems conveyor and dust collectors belts. in coal hoppers.
Railway Line Program of inspection and regular cleaning of the railway tracks to remove fallen material. Wetting (water + dust suppressant), compaction, and levelling of wagon loads.
Port Direct loading Addition of water in to ships since the coal stacking and 1985, pioneers reclamation system. in Colombia. Covered conveyor belts
Fog cannons and Continual spray systems. watering of roads with seawater.
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03 OUR COMMITMENT TO THE ENVIRONMENT
Oversight when even more rigorous control The results are reported regularly to the actions must be implemented. competent environmental authorities (Corpoguajira and the Ministry of Results the Environment and Sustainable Graphics 12 and 13 presents the Particulate matter is Development) in the Air Quality annual averages of total suspended not the only parameter Information System (SISAIRE) and in the dust particles (PST) and inhalable measured in the air-quality environmental compliance reports (ICA). particles (PM10) based on information monitoring network. Despite We also conduct in-house collected throughout the year at our recording very low and even evaluations of the Integrated monitoring stations at the mine, port, undetectable concentrations, Management System by means of and railway and following the AP42 we monitor the presence audits based on ISO 14001-2004, and guideline of the U.S. Environmental of greenhouse gases such we are audited by the IDEAM for the Protection Agency and Resolution 2154 as nitrogen oxides (NOx) purposes of verifying compliance with / 2010, which set forth the Protocol and sulfur oxides (SOx) in our air-quality plans and controls. for the Oversight and Monitoring of our mining operations as Additionally, and as an early alert Air Quality Surveillance Systems. well as in the neighbouring strategy for our operations, in the Based on these results, we can communities every two mining area we have installed a system confirm that the concentrations of years, in compliance to forecast weather and air quality airborne particulate matter are below with the requirements that enables us to predict possible high the limits established by Colombian law in our Comprehensive dust levels, which are verified through in Resolution 610/2010, set forth for the Environmental Management real-time monitoring stations located purposes of preserving the good quality Plan. It is worthwhile at the borders of the operations. Thus, of the environment, natural renewable highlighting that our mining we provide feedback to the operation resources, and human health. operations do not generate persistent organic pollutants, Precautionary volatile organic compounds, Measure in Puerto or hazardous air pollutants. Bolívar On August 26 of 2016, Corpoguajira decreed a precautionary measure that ordered the suspension of the actions: greater frequency in the cleaning transportation and loading operations of roads, increased number of water at Puerto Bolívar until a mitigation cannons to cover the in-port storage plan was implemented to increase piles, erecting a barrier to increase control the control of particle emissions over the wind dispersion of particles in at the port operation, particularly coal piles, as well as reinforcing actions to those related to sedimentable engage with and divulge said measures particulate matter (coarse). in our neighbouring communities. On August 30, the Corporation It is important to point out that decreed the lifting of the suspension our operation at the port has levels after verifying the cleanliness of the sites of particulate matter that are lower stated in the measure and validating than the established legal limits (PST the plan of additional emission control and PM10), with annual values 34% measures proposed by the company that to 52% below said limits in 2016, as Fog canons and sprinkler systems. included, amongst others, the following recognized by Corpoguajira.
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GRAPH 12 Results of 2016 monitoring, PM10 inhalable particulate matter 100
90
80
70 Maximum Permissible Limit: 60 Concentration of particulate matter 50µg/m3 50 41 40 35 35 37 31 32 34 33 32 30 27 23 24 20
10
0 Barrancas Casitas3 Patilla Provincial Sol y Sombra Vivienda Nuevo Roche Campoalegre Huarurapay Malla norte Escuela Cuatro vías
MINE PUERTO BOLÍVAR RAILWAY
GRAPH 13 Results of 2016 monitoring, total suspended particulates (TSP) 2016 Maximum Permissible Limit: 120 Concentration of particulate matter 100µg/m3
100 85 80 80 72 77 74 69 60 58 58 52 46 42 45 40 36 38
20
0 Albania Barrancas Casitas3 Fonseca Papayal Patilla Provincial Remedios Sol y Sombra Campoalegre Huarurapay Malla norte Escuela Uribia
MINE PUERTO BOLÍVAR RAILWAY
The monthly and annual results of our monitoring can be consulted at www.cerrejon.com
Our Challenges •• Not exceeding the limits set forth in •• Continuing to reinforce operational •• Continuing to implement real-time Colombian law (Res. 610/2010) for controls over particulate matter by forecast and oversight strategies PST (upper limit 100 µg/m3) as well implementing new technologies or in the Puerto Bolívar area. as PM10 (upper limit 50 µg/m3). enhancing the current processes.
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03 OUR COMMITMENT TO THE ENVIRONMENT
Our Contribution to the Nation’s Commitment vis-à-vis Climate Change
At Cerrejón, we are committed to the nationwide climate change mitigation and adaptation actions set forth by the government to be met by 2030 as per the Paris Agreement. Below we describe how our mining operations control and reduce their emissions of greenhouse gases.
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The Paris Agreement on that have led us to the adoption of •• Using solar-powered lighting Climate Change is a historic technologies for optimization and instead of diesel-powered lights milestone for the world. Through its changes in the operations that also at the mine and railway. enactment on November 4 of 2016, generate energy savings (electric power the 195 signatory nations (including and fuel) as well as economic savings. Our Challenges Colombia) shouldered a commitment •• Fostering new projects to strive to reduce greenhouse gas Initiatives that contribute to reducing emissions (hereinafter called GGE). to Reduce greenhouse gas emissions. Colombia accounts for 0.46% of Greenhouse Gas •• Continuing to implement climate global emissions according to WWF- Emissions change adaptation measures Colombia indicators (2016). However, •• Reducing the consumption of fuel within our operations. based on the Global Climate Risk Index due to the optimization of the •• Backing communities in developing 2017, it is one of the top 50 countries waiting times for trucks with a sustainable production projects. most affected by climate change due to loading capacity of 320 tonnes. its vulnerability to prolonged droughts •• Installing diesel dosing injectors (to and the extreme rainy season. By optimize fuel flow) in the CAT fleets. signing the agreement, as a nation we •• Optimizing the consumption of are committed to reducing 20% of our electrical power and the use of air emissions vis-à-vis a baseline calculated conditioning units in our offices. in 2010. This is an opportunity as a nation •• Optimizing the process at the to modernize our industry and steer it coal plants to decrease the towards sustainability and to implement consumption of electrical power. forest protection and conservation measures while at the same time guaranteeing economic growth. GRAPH 14 La Guajira is a semi-arid region results. Equivalent CO2 emissions vulnerable to climate change due to generated in our operation the scarcity of water, the ecological frailty of its ecosystems, and the 2,076 high levels of poverty amongst its (tCO2eq) 2,422 (tCO2eq) inhabitants. Therefore, in addition CO Natural 2 Gas Diesel SOX to the commitment of reducing our operations’ carbon footprint, at Cerrejón we seek to contribute so 3,754 7 that the communities neighbouring (tCO eq) (tCO2eq) 2 97 our operations can adapt to climate Petrol 993,724 Petrol 105 (tCO2eq) (tCO eq) change. To learn more about this 2 (tCO2eq) Natural Gas Diesel Petrol information, we recommend that you consult the chapters on Comprehensive Water Management (page xx) and The 775 19,277 (tCO2eq) Value of Mining for La Guajira (page xx). (tCO2eq) Natural In 2013, we created a portfolio of Diesel Gas initiatives with goals set each year to reduce GGE emissions. These initiatives NOX have brought about major results Figures based on Cerrejón’s calculations
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04 MANAGEMENT OF IMPACTS IN OUR OPERATION
MANAGEMENT OF IMPACTS IN OUR OPERATION
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04 It is fundamental for our company to acknowledge our operations’ impacts and the potential impacts on the human rights of our stakeholders in order to set up timely and pertinent measures to prevent them, mitigate them and, whenever necessary, compensate for them.
Commitment to Human Rights
Study of Risks and payment of royalties, the institutional Impacts on Human strengthening programs, infrastructure Rights development, the improvement of the Following social standards that define educational levels of our stakeholders, due diligence processes in human rights, the access of neighbouring communities the TRUST consultancy firm conducted to drinking water, and job creation. the second independent study of risks Amongst the deleterious impacts and impacts on human rights for us in included in the Comprehensive 2016. This survey encompassed 100% of Environmental Management Plan, the our integrated operations (the mine, the real or verified ones were alterations railroad line, and Puerto Bolívar) through of the landscape, affecting the peace interviews, visits, and focus groups with and quiet of communities in the area communities in the area of influence, of influence, affecting the right to road local authorities, social organizations, safety of communities neighbouring the and contractor companies. railway line, collisions with animals on Based on the results of this study, we the railroad tracks, and the generation have identified a series of impacts, both of expectations in hiring processes real and perceived by our stakeholders, amongst the Wayuu population. which shall be shared with them in 2017. Although these impacts were taken Amongst the positive impacts into consideration in the Environmental identified by the study were the Management Plan, the risk and impact
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Management of Due Diligence in Human Rights Impacts on Human •• Identifying social and Rights human rights impacts Our due diligence process enables •• Defining impact Based on the report of us to prevent and mitigate possible management measures risks and impacts on impacts and compensate for them •• Defining action plans to close gaps human rights drafted when they occur despite our efforts. •• Sharing the impacts with by Trust for Cerrejón, a This constitutes a common thread our stakeholders real impact refers to an in all the operations carried out in •• Addressing complaints adverse effect Cerrejón the different organizational areas. •• Verifying and ensuring has caused or continues compliance with stages to cause, while a perceived impact is an adverse effect for which there is no scientific certainty of its occurrence or a direct link to the company.
studies recommended within the due diligence processes aim to regularly review the impacts identified and the effectiveness of the management measures. To that end, we shall work on an action plan to reinforce the appropriate management measures for the prevention, mitigation, and definition of possible compensation measures thereof, whenever necessary. Amongst the perceived impacts are impacts on housing units near the mining operation, affecting the health of communities in the area of influence of Cerrejón, and restricting the use of water resources.
Since 2010, in compliance with the remedy pillar of the United Nations Guiding Principles, we have had a Complaints Office to address possible operational impacts. Image taken during the closure of a complaint.
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TABLE 3
Measures implemented in 2016 With our •• Training in Human Rights. Targeted at new employees during their orientation to the employees company. Contents: Human rights policy and basic resolutions, including fundamental rights, constitutional actions, social standards, remediation mechanisms, and others. •• Informative pieces on human rights. Distribution of content on general aspects of human rights to better position the issue internally. •• Human rights promotion. Internal activities through Radio Cerrejón aiming to promote awareness and understanding concerning the role of companies with regard to human rights.
With our •• General contractual terms. We include Appendix D in 100% of our contracts with contractors contractors and suppliers covering an amount greater than USD 40,000. The appendix requires them to and suppliers make a commitment to meet our requirements for safety, health, environment, and communities, and the Human Rights and Social Labour Responsibility policies of Cerrejón.
•• Evaluation and auditing of Standard SA8000 (labour management, occupational health and safety). We evaluate 100% of the contractors and suppliers who engage in a financial operation with the company through meeting the requirements of an online questionnaire. In addition, we carry out random audits of 20 companies representing 4.3% of the organizations with contracts for an amount greater than USD 40,000 with Cerrejón. We consider issues such as child and forced labour, freedom of association and collective bargaining, discrimination, disciplinary methods, working hours, and pay.
With our •• Contractual conditions for private security service suppliers. We include Appendix E in 100% of our security contracts for securing private security services. These suppliers make a commitment to comply with the voluntary personnel principles of safety and human rights; Cerrejón’s Human Rights policy; respect for the human rights of vulnerable groups and individuals; respect for the traditions, customs, and cultures of indigenous communities; respect for the rights of freedom of association and collective bargaining; the elimination of child labour, and others.
•• Training in Human Rights. We train 52% of the members of our private security and 100% of the public security forces, taking into account the high turnover of personnel in this field, on issues of human rights, voluntary principles, and the traditions and customs of the Wayuu ethnic group. We adapt the methodology so that 100% of the people who are trained understand the goal, an important factor considering the level of illiteracy found amongst security personnel. •• In the context of celebrating International Human Rights Day, we presented the engagement protocol between the Armed Forces and the indigenous Wayuu people in conjunction with the Ministry of Defence.
In compliance with the remedy pillar of and impacts on stakeholders that are We have made a the UN Guiding Principles on Business or may be impacted by the operation, commitment to adhere and Human Rights and in order to we rely on several tools such as social to international perform our due diligence on possible standards publicly adopted by the impacts, Cerrejón’s Complaints company, internal policies on human guidelines such as the Office is responsible for receiving, rights, communities, social responsibility, Performance Standards investigating, arriving at solutions, social and human rights clauses in on Environmental and conducting follow-up, and closing contracts, training for employees Social Sustainability the cases filed by our stakeholders. and contractors (including security of the International personnel), and communications tools Finance Corporation Respect for and using news items to raise awareness (IFC), especially Promotion of and the promotion of knowledge with respect to the Human Rights on human rights through clear For the purposes of extending our messages for all operational levels. provisions of Standard 7 commitment to address the social risks on indigenous peoples.
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Complaints GRAPH 15 Office Number of complaints recorded, closed, and being processed In 2009, we were invited by the Corporate Social Responsibility initiative 400 370 328 of the Kennedy School of Government at 299 300 266 276 274 Harvard University to be part of the pilot 236 212 project for remediation guidelines under 200 the “Protect, Respect, and Remedy” framework on businesses and human 94 100 62 rights defined by then-special envoy 33 92 to the United Nations, John Ruggie. 0 We were one of five companies 2013 2014 2015 2016 in the world that combined forces on Registered Closed In Process this pilot project. These guidelines are designed so that the corporate mechanisms for attending to complaints on impacts and possible violations of human rights are legitimate, proportional, culturally appropriate, neighbouring communities on installing accessible, predictable, equitable, and offer adequate protection. barriers to control crossing by animals. compatible, and transparent, based In 2016, 274 complaints were Together with the work underway with on dialogue and serving as a learning recorded at our office, with more than private security companies to implement resource. At Cerrejón, we applied three 80% related to animals being struck reduction and prevention measures, additional guidelines in our model for on the railway line. To prevent these it has resulted in a decreased number attending to complaints: that they be incidents, we have been working with our of complaints due to that cause.
graph 16 Complaints Office process (CO)
Individual presents CO moves ahead or CO and investigator reach complaint to the CO or arranges meetings with agreement on solution APPEAL Cerrejón employee 1 other departments to 8 with the individual 9 reach agreements
CO records complaint in Investigator documents CO monitors software (logging) the case in software implementation of 2 7 agreement 10
Investigator examines Confirmation CO closes the case and the information of logging records results in software 3 and interviews 6 11
Routing of complaint CO appoints new Complaint classified 4 according to the case 5 investigator
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Our Challenges •• Make the findings of the risk and impacts study on human rights known amongst the communities in the area of influence. •• Reach agreements with company areas on plans of action to close gaps and integrate them into our general system for risk management. •• Implement the plan for training and awareness in social responsibility, standards, and human rights amongst employees. •• Improve training in human rights amongst contractors. •• Promote awareness on specific human rights issues in the different operational areas and levels through a communications strategy. •• Cover 100% of the human rights training of private and public security forces as a safeguard against the high personnel turnover. •• Promote and advocate the adoption of this good practice by the Colombian Army. •• Design and implement a human rights program in our supply chain. •• Attend to and close the greatest possible number of complaints regarding operational impacts. •• Expand awareness of the existence of the Complaints Office in the communities south of the mine, including communities involved in a resettlement process. •• Allocate prevention and reporting tasks to other company areas to allow timely reporting and addressing of complaints. •• Increase the number of barriers controlling the crossing of animals on the railroad tracks to prevent an impact on the economic assets of Wayuu communities.
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Engagement and Respect for the Rights of Indigenous Communities
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Respect for the rights of the indigenous communities and the promotion of their well-being, quality of life, and cultural legacy are fundamental in our management mission. That is why our Human Rights Policy pays special attention to the rights of vulnerable peoples with an emphasis on ethnic groups.
Prior •• Show a willingness to listen Consultation to and integrate proposals with Ethnic from the community. Communities Principle 2. Transparent engagement We have a team and budget earmarked with all stakeholders. for addressing the impacts created Principle 3. Undertake the by our operation on indigenous consultation process according communities. In this vein, we carry out to the impacts of each project. prior consultation before undertaking Principle 4. Respect the role projects that could impact the rights and independence of every of these communities in order to participating public institution. protect their cultural, social, and Principle 5. Evaluate project economic integrity, and guarantee impacts on indigenous culture, their right to participation. territory, and autonomy. Principle 6. Address the consulting Principles for process through an inter-cultural Responding dialogue respecting the culture, values, to Prior traditions, and customs of communities Consultation Principle 7. Safeguard the Principle 1. Compliance with the legitimate participation of regulations, standards, and legal communities and their authorities, precedents currently in effect. and recognize their autonomy. Prior consultation before Principle 8. Guarantee the process initiating a project. with firm commitments to: •• Move ahead on the consultation •• Permanent participation in process without pressure. bodies involved in oversight. •• Provide timely, efficient information. •• Timely and complete information. •• Communicate potential impacts •• Provide sufficient time for clearly and transparently. consultations and reflection. •• Move ahead on the consultation •• Mechanisms for response process in good faith. and complaints.
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GRAPH. 17 •• Training in knowledge and •• A recognition and acknowledgment awareness of rights. of different impacts for the families PRELIMINARY •• Mutual agreement on stages, was given in accordance with the CONSULTATION methodologies, and timeline variables identified in the mutually with the communities involved. agreed upon master list of impacts. •• Make access to information •• Compensation and management Presentation of legal easier by using the language measures were established in framework of the prior of the Wayuu ethnic group. accordance with the impacts consultation. Principle 9. Take part in evaluating identified for each family. the involvement of third parties, •• An individual Family Life project Presentation of project, the their role and mandate. was prepared for each family. object of the consultation Once the presence of a community •• A study of the health conditions process in our area of influence is certified, and overall health status of all the we proceed to coordinating and families was conducted by Cerrejón Definition of methodology preparing the consultation process. It in conjunction with the Colombian and timeline for the prior involves three phases (see Graph 17). Pneumology Foundation. consultation process On December 14 of 2016, we carried out the formal registration of the Complaints following agreements with the Associated Patilla and Chancleta communities, with Rights PRIOR agreed on under the framework of of Indigenous CONSULTATION the details requested by the second Communities and and third orders of Ruling T-256, of Measures Adopted 2015, of the Constitutional Court: We consider incidents related to •• The community expressed its free, indigenous rights to be those that Opening prior, and informed consent for affect their identity, tradition, customs, the proposed resettlement. territory, and culture. We reported 254 Workshops on analysis and •• The community independently cases in 2016, of which 234 were related identification of impacts, decided to undertake the to animals being struck on the railroad and formulation of resettlement process individually. tracks, the lowest number reported over management measures
Meetings for formulating GRAPH 18 agreements Complaints associated with rights of indigenous communities 2013–2016 Formal registration of agreements 400 321 294 300 265 254
200 MONITORING OF AGREEMENTS 100
0 Closure of consultation 2013 2014 2015 2016 process
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We work on programs that the past four years. That was thanks to Our Challenges contribute to the corrective plans and actions applied, •• Move ahead on the prior consultation processes with preserving the region’s indigenous including dialogue with communities ethnic communities for those projects requiring them. cultural and heritage to strengthen responsible shepherding •• Continue lowering the number of complaints traditions. practices, building fences to help control lodged for incidents with indigenous animal crossing, and coordination with communities related to the task of preventing operational areas for timely reporting. and mitigating operational impacts.
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Resettlement and Post-Resettlement
Resettlement is undertaken in order to protect a community from environmental impacts that could affect them as an outgrowth of mining activity. This solution takes place only as a last resort due to the enormous challenges involved. Its final goal is moving a community from its original housing site to an agreed-on destination site.
Beyond merely changing the location of a home or community, we know it is a challenge to preserve the social fabric and relation to their natural environment. Therefore, the resettlement process is participatory and involves the community in developing a plan of action for the resettlement following the guidelines of the International Finance Corporation (IFC) of the World Bank. Responsible management of the process involves support and assistance for relocated families, fulfilling the obligations we acquired, and strong positive engagement with neighbouring communities that aims to improve the quality of life of those taking part in this process. The post-resettlement phase begins when the families arrive at their new housing site, and psychological-social assistance and support is provided as they connect and adapt to their new lifestyle, and the delivery of the agreed-on compensations and benefits begin.
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TABLE 4
Families Families Families with a signed Families resettled Community at the site transfer eligible for in new Status as of 2016 of origin agreement relocation locations
One hundred percent (100%) of the properties were delivered at the site of origin. The last family was relocated to the Roche 31 31 25 25 final site in 2016. The programs defined in the resettlement agreements are ongoing for the families at the new site.
The agreement for 62 families of Patilla and Chancleta participating in the prior consultation was formalized in December of 2016. Commencing in 2017, the individual transfer agreements were signed with Patilla 101 77 46 46 60 of these families, with two pending at Patilla. One hundred percent (100% - 46 families eligible for relocation were moved in 2013) continue receiving the programs defined in the resettlement agreements.
After the agreement struck during the prior consultation, the signing of agreements with five families not eligible for relocation is still pending. Thirty-eight Chancleta 106 70 57 47 of the total number of families eligible for relocation moved collectively to the new site in 2013 and, as of the date of the resettlement, nine moved to other municipalities of their own accord.
By the end of 2016, there was a transfer agreement for families eligible for relocation pending signature and the Las Casitas 62 57 31 25 agreement of four rural families was still pending. The 25 families that moved to the new site are receiving the programs defined in the resettlement agreements.
In December of 2016, we signed a closing agreement with the community on the issues of livelihood means and we advanced in their application process to Tamaquito II 31 31 31 31 be classed as an indigenous reservation. One hundred percent (100%) of the families were relocated to the new site in 2013 and to date continue receiving the programs defined in the resettlement agreements.
Total 331 266 190 174 Families eligible for relocation correspond to those that were defined by each community according to their time of residency and social ties or links.
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Status of GRAPH 20 Resettlements Number of beneficiaries of the According to the engagement carried out with the families educational aid program of five communities since 2009, we hereby present our advances in 2016 on the signing of agreements, relocations, and fulfilment of our commitments. It is worth noting that the Technical Studies locations assigned to families with a signed agreement for resettlement are in the municipalities of Barrancas (La Guajira), 29 and in 2016 relocations were performed with the communities of Las Casitas, Chancleta, and Patilla. (See table 4).
Main Results of 61 3 the Post-Resettlements Technological Educational Reinforcement Program Studies In 2016, 279 students from the five resettled communities were Professional Studies part of this program, thereby diminishing school failure rates from 5% in 2015 to 3.6% in 2016 and enhancing performance in skills-based academic tests, increasing by 8.3 points in the areas of mathematics and languages compared to 2015. student at the Remedios Solano Educational Institution in the This program has been implemented through the Socya municipality of Barrancas and another student in one of the operator to develop abilities and skills in school-aged children top three places on the SABER 11 tests, in the same municipality. and youths so as to achieve high performance levels at their schools and a better chance of accessing higher education. Educational Aid Program Two students who participated in the vocational guidance A total of 93 persons received educational aids to program stand out, one as the best secondary school fund their tuition fees and technical, technological, and professional studies at any national institution
GRAPH 19 As of 2016, 55 members of the resettled families had Number of beneficiaries of the completed their studies through this program. educational reinforcement program Comprehensive Water Strategy for Resettled Basic Middle and Communities Secondary In 2016, the water intake constructed on the Ranchería River School Vocational Orientation started operation to supply the production projects of all the communities and for human consumption at Roche, Patilla, Chancleta, and Las Casitas. In turn, Tamaquito 97 36 II has its own water treatment system. Additionally, we Early Childhood defined the strategy to optimize the water system for
17 human consumption by means of the following actions: College Education 2 •• Refurbishment of the drinking water treatment plant that 10 supplies water to Roche, Patilla, Chancleta, and Las Casitas Preschool 117 •• Cleaning-up and repair of leaks in the residential and public mains
Elementary School •• Substituting the Tamaquito II drinking water treatment plant •• Campaigns for the proper use of water
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04 MANAGEMENT OF IMPACTS IN OUR OPERATION
Likewise, we signed a memorandum of understanding We shall also lay a water pipeline from the water intake with the mayor´s office of Barrancas to work on the connection on the Ranchería River towards the property owned by the of the resettlements at Roche, Patilla, Chancleta, and Las community of Tamaquito II, to supply its agricultural projects. Casitas to the municipal aqueduct and sewage mains for the purposes of promoting their long-term sustainability.
grAPH 21 Litres of water delivered to communities
365,625
Roche
421,080
Las Casitas
856,800
Patilla and Chancleta 1,916,325
Tamaquito II 2,000,000
GRAPH 22 Average consumption of litres of water a day received per person
Roche Tamaquito II
259 126
170 259
Las Casitas Patilla and Chancleta
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Infrastructure Opportunities for We established a new model of engagement with each Livelihood Means community through their community action boards. These opportunities were materialized through a program Thus, we signed an agreement with the community of to offer advice on production projects and the provision Patilla for said organization to carry out the repairs to of seed capital to families that have stated the intention the community´s houses at the new site, and we repaired and the willingness to carry out business initiatives. The three housing units of families at Roche. The public community of Las Casitas continued working on drafting its assets of the resettlements (school, community centres, collective production project, for which purpose it created electrical power infrastructure, amongst others) were the cooperative CooMuLaCa and advanced in procuring a handed over to the mayor´s office of Barrancas. farm for agricultural activities. In addition, the agreement with the community of Tamaquito II included a donation of resources for a collective agricultural project on its property.
Our Challenges •• Fulfilling the agreement signed on resettlement measures with the communities of Patilla and Chancleta within the framework of the prior consultation conducted in 2016. •• Relocating the families that are still at the sites of origin. •• Carrying out the maintenance on the houses at Roche, Patilla, Chancleta, and Las Casitas, and performing the assessment on the status of the houses at Tamaquito II. •• Implementing the final stage of construction of the irrigation system for agricultural projects at Roche, Patilla, and Chancleta. •• Building the pipeline and irrigation system for Las Casitas and the water pipeline to Tamaquito II for agricultural projects. •• Conducting maintenance on the drinking water system for Roche, Patilla, Chancleta, and Las Casitas. •• Handing over the new, operational drinking water treatment plant for Tamaquito II. •• Implementing the agreements we have signed with the mayor´s office of Barrancas to carry out the repairs to community assets, as well as the connection from the resettlements to the municipal aqueduct and sewage system.
Plaza and stage in the community of Patilla.
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05
Our Social Approach
Our social programs centre on finding solutions for water supply and the conservation of water resources, on creating and strengthening regional capabilities, and on promoting strategic projects for La Guajira.
This chapter gathers some We constantly reinforce this strategy stories about the path we began to to improve the effective management follow a few years ago with our social of our impacts and focus our performance strategy, focusing on contributions on the development of identifying, preventing, mitigating, and La Guajira based on investing in three compensating for the impacts of our key source projects and initiatives for operations. These efforts are coupled to the region: supplying water, capacity volunteer social investment work aimed strengthening, and contributing to at promoting a significant connection progress with high-impact projects to the communities neighbouring through constructive, meaningful our operations and contributing to dialogue with our stakeholders. enhancing quality of life in the region.
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We have contributed to several What Does it Mean for education fronts, a core element identified by a commission of experts Us to Be Part of the formed by the Colombian government Community of La Guajira? in 1996 to provide direction for future development for our nation. How can the private sector contribute to setting up abilities that can be We would like to contribute to a constituted into capital so that people transformational process led are empowered in the future? by communities by strengthening In this vein, over the past 12 years, their capabilities. we have granted scholarships to 187 young Guajirans to support their studies at the university and in the career of their choice. The latest graduating class of this group of students selected (based on top academic scores on the SABER tests) shall complete their studies in 2022. We have also contributed to training 12,000 of our employees´ children. Our desire is that they return to the region and contribute their knowledge and experiences, and thus lead true transformation processes. In 2012, we created the Institution of Technical Studies (Tecnoguajira), which has trained 705 Guajirans. The goal is to strengthen skills to link the supply chains of the mining business and, since 2016, in tourism and hotel service activities, sectors identified as having the greatest potential to be engines of diversification in the regional economy. Since 2008, we have supported regional and local authorities in technical training and methodologies to generate As a company, we are convinced us to think that, in order to narrow the capacities in the planning and execution that we have a significant opportunity development gaps, we must continue of public resource projects. As part of to contribute to the progress of the directing our efforts at constructing this process, the emphasis has been on region through our mining activities alliances amongst the different drafting and overseeing development even though we know that there is still a sectors and contributing sustainable plans as well as on organizing projects long way to go to reduce the coverage solutions in regards to the access and to comply with goals and enhancing and inequity gaps in La Guajira. conservation of water resources and the quality of life of residents. In the course of 30 years of the development of institutional and A project that fills us with pride is operations, we have travelled a path and community-based capabilities. the experimental farm 10 km from Uribia learned various lessons that today lead (km 64 on the road from the mine to
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TABLE 5 Strengthening CAPABILITIES
ACTIONS RESULTS •• Strengthening the public administration of the municipalities of Barrancas, Hatonuevo, Maicao, Albania, Manaure, Dibulla, and the regional government of La Guajira through training Institutional activities mainly focused on planning.
•• 159 people trained in project planning, 42 projects prepared.
•• 19 self-administration projects in sectors such as drinking water, roads, and energy at four indigenous reservations.
•• 1,091 families from 169 communities participated in the Wayuu Food Security Program (ASAWA). •• Production of 255 tonnes of food by 146 communities for consumption and marketing. Community •• 748 families benefited from the Food for Work Program in partnership with the World Food Programme (WFP).
•• 3,309 people benefited with the implementation of solar panels and refrigeration systems.
•• 23 companies participated in the supplier development program. For more details, see the chapter Our Responsible Supplier and Contractor Management (pág. 92).
•• 528 students and 28 teachers from ten schools participate in the Most Entrepreneurial Youths Program.
•• 75 graduates of Tecnoguajira in the Mining Equipment Operation and Maintenance Programs. Business and •• As part of the artisan strengthening program in an agreement with Artesanías de Colombia, Traditional seven artisan product lines were developed. Wayuu •• Advising of 400 artisans on the topics of intellectual property, designation of origin, and Productive collective brands. System •• Participation of 27 artisan groups in regional and national fairs, obtaining more than COP 40 million in revenue.
•• Two intellectual property promotion and disclosure events held with the participation of 87 artisans in Riohacha and Bogotá.
Puerto Bolívar) on which traditional to develop new production lines and ground in other markets and activities, sowing activities of the Wayuu culture technical advice in the marketing train core labour skills to facilitate the are shared and put into practice to and formalization of their businesses hiring of unqualified labour in various preserve the ancestral knowledge of the since one of the economic activities industries, and the development of indigenous communities and contribute characteristic of the Wayuu culture enterprises. We believe that these to the development of food-security and tradition is its artisanal works. actions to leave installed capacities alternatives that can be replicated Finally, we are committed to in the region shall contribute to the on different scales in the region. reinforcing productive inclusion, which future to be built, filled with common Furthermore, we seek to reinforce includes contributing to the growth of incentives for communities, the public the production and trading of arts and our providers and other companies sector, and the industrial sector. crafts through innovative processes in the region so that they can gain
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How Can We Contribute to Overcoming La Guajira’s Challenges?
The Hotel Waya Guajira has hired 71 employees and uses 772 locally-based suppliers.
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Our lessons learned have led contribute to decreasing development us to understand that our viability and gaps, where the State, the private sector, sustainability are bound to that of the non-governmental organizations, region. Although we have organized and the community join forces social programs for the benefit of our to devise, organize, and execute neighbouring communities since the comprehensive plans that permit beginning of our operations, we have the region to move its development come to understand that our role must forward in the medium term. be to become one of the department’s We would like to show some main partners for sustainable progress. examples of this commitment. On the Our knowledge of La Guajira and our water front, and in order to make better management skills must be used to use of groundwater sources, we are attract greater attention for the various working with the Colombian Geological sectors that facilitate the launching of Service and Corpoguajira on a projects that leverage the department’s hydrogeological model that will identify path of social and economic progress. the potential supply and demand of Our experience in La Guajira groundwater. This will be aligned with and the knowledge obtained from a Water Research Centre (Winka), a dialogue with communities and various project in partnership with the Ceiba cultural, indigenous, rural, and African- Foundation, the regional government, Colombian groups has made us think the University of La Guajira, and the that, while development aspects such Ministry of Education. The objective is as business networks are strengthened, to install water resource management the region’s most basic needs must capacities in the department. also be addressed: access to water, Furthermore, we have partnered road connections and public services. with the principal development We are aware that our operations initiatives in the region that generate and management are part of the new connections and contribute to solution, and we are committed to the strengthening of various regional attaining the greatest positive impact sectors such as tourism, utilizing La possible. However, we recognize that Guajira’s cultural, ethnic, scenic, and La Guajira’s needs are a national mineral wealth. In December 2013, for problem that transcends our skills instance, together with the consortium and responsibilities. That is why our comprising Abacus, Contempo, Inversor, commitment to La Guajira’s future and EGSA, we inaugurated the first is based on promoting projects that four-star hotel in the department, the
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View of Waya Guajira Hotel.
Waya Guajira. Operated by OxoHotel, and foreign visitors. In addition to it is located one and a half hours this tourism cluster, which we want away from the Riohacha airport, and to strengthen, is our Wopushüwa since its opening has had more than Visitors Centre, at which we annually 50,000 guests. 70% of its employees receive more than 15,000 people who We have implemented are natives from the municipality of get to know firsthand our mining programs and maintain Albania (in which it is located) and 54% process and social and environmental engagement with our of its suppliers come from the region. programs. For more details, see the neighbouring communities Currently under construction is chapter Integrity and Ethics (page 18). on 100% of the areas of the DesQbre Guajira Museum, with Furthermore, with different entities our integrated operations which we seek to open new occasions in the region we are participating (the mine, railroad, and for learning about the department’s in an exercise on perspective by port) in partnership with history, culture, and biodiversity, thinking about the La Guajira that State entities and other together with geological findings and we want in the next 10 years, about civil society organizations, fossils of great importance, which its political, economic, social, and taking into account will attract the attention of national cultural conditions. In this exercise, relevant topics identified for the communities.
THE WAYA GUAJIRA hotel IS product of a partnership between Cerrejón and the consortium formed by Abacus, Contempo, Inversor, and EGSA.
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TABLE 6 SOCIAL PROGRAMS
AREA results Education •• 23 students from neighbouring communities supported in their access to higher education. •• 43 new students from Campo Herrera entered the Basic Skills Reinforcement Educational Program.
•• 107 children attended in Growth and Development care at the Barrancas Hospital, 74 experienced improvement in their conditions, and the rest continue to recover. Healthcare •• 1,262 patients attended with the Mobile Healthcare Unit. 72 transferred to hospitals and healthcare stations, which is equivalent to an equal number of lives saved. •• 432 children attended at paediatric care day in partnership with the Colombian Air Force.
•• 263 child participants in the Music Program. •• 120 trained sports leaders. Culture and •• Creation of the first Latin American Pitchers school in the municipality of Hatonuevo. Sports •• 30 people trained in costume jewellery and product marketing in the communities of Oreganal and Tabaco. •• Little League Baseball participation in eight international tournaments. •• Participation in 20 national tournaments.
•• Construction and operation of a fishing provision centre in Media Luna, community of Yokuyokuchi. •• Delivery of small boats to Media Luna communities and others Media Luna located in sector IV of the railroad line (km 120–141). •• Construction of 18 homes at the request of the communities of Pioula and Pioulekat, based on the models and designs approved by these communities.
•• 12 strengthened productivity units — five agriculture and livestock and seven commercial and manufacturing units. Business •• Positioning of the Los Remedios (Albania) Ecotourism Centre with the start of Ventures tourism-environmental packages and the training of their guides. •• Production of 24,410 kilos in palm oil crops. •• Annual production of 800 sheep in the sheep project.
led by TRUST, we identified the In the same vein and with the mass that would have an impact on objectives of the prospective agenda objective of rethinking La Guajira, economic and social development. for La Guajira, consolidating the in 2016 we also participated in the We are convinced that these department’s economic model with establishment of the 360° Guajira partnerships we have established will competitive and sustainable sector Regional Studies Centre, the first regional succeed in developing projects of greater diversity, the construction of an development think tank, in partnership positive impact for the region that will educational model that strengthens with Promigas and with the support translate into well-being and progress Guajiran human capital, the use of of Fundesarrollo and the La Guajira for its people. We are working with La Guajira’s multicultural heritage Chamber of Commerce. The Centre’s the support of more than 50 partners and its geostrategic location, and goal is the generation of technical, and want to continue expanding this the efficiency of the public political reliable, and pertinent information that number by seeking to establish strategic administrative structure. permits the creation of a local critical alliances in support of La Guajira.
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Peace-building, an Opportunity
Carlos Franco, Social Dialogue Manager
Without a doubt, the signing of the peace agreement with the FARC was one of the most important events for Colombia in 2016. This historic occurrence opens up the possibility of continuing to progress in overcoming the violence in Colombian society and the hope of obtaining agreements with other rebel groups that are still armed. Cerrejón is aware that peaceful coexistence is the best environment for business, the protection of human rights, and the achievement of the sustainable development goals shared with our stakeholders. The signing of an agreement to put an end to the conflict with an illegal armed group is a very important step in overcoming violence. However, that is not the In the future, we hope that La Guajira entirety of what peace-building means. This is a task will be a peaceful territory full of for all of society and includes multiple dimensions: opportunities. We think that our satisfying the rights of the victims, fulfilling the contribution will be most useful and signed agreements, demining lands, strengthening relevant in three peace-building fields: democracy and its institutions, appropriating a culture •• Reinforcing the culture of peaceful of peaceful coexistence, generating development coexistence by promoting the opportunities, strengthening participation, overcoming contributions of Wayuu cultural the causes of conflicts, and much more. In the values in peaceful conflict resolution case of Colombia, opportunities have been seen as recognized by UNESCO. in the public works tax deduction strategy, in the •• Strengthening the local skills of social programs for the areas most affected by conflict, organizations and institutions. and in the reforms that are being driven by the need •• Participating in the building to achieve greater efficiency in public investment. of sustainable development Cerrejón has not, nor will it, step aside from the for La Guajira. events of our society. We actively and purposely participate in our role as a private company with In order to achieve efficacy in these respect for the skills, initiatives, and roles of institutions goals, we know that we must work and of the different organizations in society. together with other companies, In 2016, pluralism and different ways of thinking institutions, and social organizations. were respected at the company when faced with In addition, Guajiran society must situations as complex as the October 2 referendum. define a common purpose and a path The recognition of diversity with the only condition for building peace in the department, being respect for the law and the use of peaceful a process in which we will participate methods was the main premise behind our stance. as one of La Guajira’s partners.
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The institute of technical studies, Tecnoguajira, has trained 705 Guajirans.
Our Challenges leverage in order to apply those that perform best •• To achieve increasingly more comprehensive solutions, and thus contribute to the challenges that those agreed upon with the communities, to install capacities of us in the private and public sectors have set for in the region, and to promote an increasingly more ourselves to lessen the social gaps in our country. empowered Guajiran society, prepared to lead •• To define a system of social assurance, which the transformations required in their region. allows us to establish a clear model to improve and •• To establish robust, reliable indicators in the short monitor our performance, based on the standards term to measure the impact of the projects that we that we have adopted as an organization.
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06 COMMITMENT WITH WORK IN LA GUAJIRA
COMMITMENT WITH WORK IN LA GUAJIRA
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Our Focus
Cerrejón’s workers and contractors are the heart of the company. Therefore, all contracting processes are based on three pillars: prioritizing the hiring of people and organizations from La Guajira, maintaining fairness and diversity in WORKER selection, and protecting and promoting the life, health, and safety of workers.
We prioritize hiring people and organizations from La Guajira in all our contracting processes, both for direct personnel, and contractors and suppliers of goods and services, according to the profiles required for the operation and its capacity to absorb the commercial and labour supply available in the region. This allows us to generate local employment, drive and strengthen economic development, and contribute to improving the standard of living of inhabitants of this department.
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Contribution to Work for La Guajira
We maintain equality and diversity criteria for the selection, recruitment, and promotion of collaborators based on merits and equality of conditions, and we give priority to applicants from La Guajira.
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Therefore, we implement understanding, and putting these continuous review processes to identify five attributes into practice. candidates who apply to the required •• We identified 2,100 actions profiles and make sure to have Guajiran that evidence our attributes personnel in our selection processes. in our daily activities. Cultural The same occurs with required •• We have worked to strengthen Attributes contracts, where we assign priority two attributes: empowerment • We generate value. to regional companies provided they and awareness of self-care in 223 We preserve Cerrejón’s meet the conditions required for the workers’ groups, which consist resources as if they were goods or services. Given the specificity of meetings between supervisors our own, and propose and of some of the supplies required for and their work groups. execute ideas to achieve the operation (such as tyres, mining •• 5,725 employees of contractor firms the best results possible equipment, diesel, and others), a certain have agreed to abide by these in all company areas with percentage of purchases is sourced attributes, and 2,951 employees the purpose of improving from international companies. have become stronger with them. constantly and achieving In this chapter, we share •• We have identified 120 agents of maximum productivity. characteristics of our work force, its change proposed by organization turnover (broken down by type of leaders to transmit the attributes. • Capacity for change. contract, gender, and region), as •• We have defined the 15 behaviours We evolve and adapt to well as aspects worth highlighting that show the attributes the circumstances of the from our management efforts in in our daily activities. company, the region, and 2016 in terms of contracting. the country to overcome Workers and challenges and be sustainable. Cultural Contractors • Agile and simple. Attributes At the end of 2016, we had a total We simplify our processes, In a strategic planning session with of 11,814 associates working in both make decisions, and the participation of different company administrative and operational act to achieve more areas, we identified five attributes areas at the mine, Puerto Bolívar, and and better results. for which we want to be recognized Bogotá. Of these, 5,925 are direct and with which we can overcome the employees and 589 are contractors. • Empowered. internal and external challenges we face In an industry such as mining, We are accountable for as an organization. These attributes, traditionally made up by men, our results, trust in others, which make up the process of cultural women have managed to position and work as a team. change, must constitute the company’s themselves thanks to their commitment, • Awareness of self-care. DNA — what we want and need as the dedication, and excellence in work. We are committed to core of our way of doing things and Currently, more than 900 women, supervising our safety and approaching different situations. including direct employees and our health by promoting The participation of all of us who make contractors, are associated with our a balance between work up Cerrejón has been fundamental operation at Cerrejón, and we make and personal life. during the process of appropriation, ever greater efforts to gradually increase their participation.
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To ensure the process of social and work adaptation, We have established a bank of temporary especially in operational areas, we have organized theoretical- positions for pregnant women who are working, practical workshops to continue re-enforcing their personal mainly in administrative and filing areas if their regular skills, growth, and development. We have remodelled facilities activities constitute any risk for their pregnancy. in these areas so women can perform operational tasks better (for example, by adding restrooms exclusively for them).
GRAPH 23 GRAPH 24 Our employee list Our employees is broken down by gender per type of job title
400; 7% 83 Women Professional management personnel
Professional supervisory personnel 272
Professional analysts and specialists 491
Technical personnel 4,801
5,525; 93% Apprentices 278 Men
GRAPH 25 GRAPH 26 GRAPH 27 Employees Our contrators Our employees BY region by region by type of contract
478; 8% 2; 0% 413; 7% 3.180; 54% MEN WOMEN Rest of Abroad Rest of La Guajira the country the country 289
4,579
111
1,537; 26% 3,908; 66% 2.296; 39% 0; 0% 946 Rest of Rest of the La Guajira Abroad Costa Atlantica the Costa Atlantica PERMANENT TEMPORAL
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Job Creation In 2016, 74% of contracting comprised personnel from the region.
graph 28 graph 29 Contracting trends Number of contracts (Number of employees) by age range
500 429 Over 61 years old 0
400 Between 51 and 60 years old 1 307 310
300 244 Between 41 and 50 years old 6
200 Between 31 and 40 years old 116
100 Between 21 and 30 years old 187
2013 2014 2015 2016 Under 20 years old 0
GRAPH 30 GRAPH 31 Contracts by region Number of contracts by gender
1; 1% 13; 4% 27 Abroad Rest of the country Women
283 230; 74% 66; 21% Men La Guajira Rest of the Costa Atlantica
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Turnover Rate Our Challenges We started organizational restructuring in 2016 to bring •• To stabilize the organization with enough us into line with international standards, motivated people to meet internal needs and be more by market context and personnel turnover due to competitive in the international market. retirement. Therefore, we showed an increase in the turnover indicator compared to previous years, as well •• To design strategies that allow us to increase as an increase in contracting to fill the new vacancies. the involvement of women.
GRAPH 32 GRAPH 33 Trends in turnover rate Turnover rate by age (number of departures)
37. 9 4
Over 61 years old - 43 departures 7.21
5.25% 6 Between 51 y 60 years old - 129 departures 3.09 5 3.45% 4 3.24% 2.81% Between 41 y 50 years old - 39 departures 3 2.33 2 Between 31 y 40 years old - 33 departures 1 4.2 0 2013 2014 2015 2016 Between 21 y 30 years old - 15 departures 0
Under 20 years old - 0 departures
GRAPH 34 Turnover rate by workplace (number of departures) 22.11 GRAPH 35 Turnover rate by gender (number of departures) Bogotá - 25 departures 4.83
6 Men - 224 departures
Puerto Bolivar - 16 departures 11.78
4.79 Women - 35 departures Mine - 218 departures
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Commitment to a Safe and Healthy Workplace
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Our workers and contractors drive our company. It is our priority to protect and promote their life, health, and safety by creating an optimum, work- oriented culture and environment that allows us to avoid accidents, illnesses, and other situations that may affect their integrity.
With the purpose of effectively This management is part managing our health and safety of the different Epidemiological risks, and defining actions based Surveillance Systems (ESS) on practical improvements, we take regularly updated by Cerrejón. as a reference the Comprehensive In terms of safety, we have a Occupational Healthcare Guide Fatal Risk Management System based based on the evidence (GATISO) of on the identification of causes and the Ministry of Labour and rely on circumstances that may lead to a the Certificate of International OSHA fatal accident and that continues with Standard 18001 for our Work Health the definition and implementation and Safety Management Systems. of controls to avoid them. From the health standpoint, our Additionally, based on the efforts seek to control occupational experience we have gained in our diseases through the integration of operation’s daily work and our industrial hygiene, preventive medicine, shareholders’ good practices, we and workplace processes. This allows have established actions tending to us, on one hand, to quickly identify the mitigate the most relevant risks for occupational risk conditions to which our workers and contractors, which workers are exposed and implement include: interaction with light vehicles tactical controls that mitigate these risks. and heavy equipment, working at On the other hand, it also allows us to height, load management, electrical carry out medical monitoring to identify work, work on embankments, deviations from health early, possibly explosives, and train operation. associated with exposure to an agent . of risk, and take the required actions.
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“Life is precious and preserving it is fundamental”
Jon Evans, Executive Vice President of Operations (COO)
We want every one of our collaborators to return home to their families at the end of their shift or work day in perfect condition. That is our priority.
The experience and lessons we have gained as an organization over these 30 years have allowed us to become what we are today — a safe operation for our workers and for those who interact with us daily at the mine, railroad, Puerto Bolívar, and Bogotá. The contribution of everyone who makes up this operation was fundamental Upon arriving at Cerrejón, when I became Executive Vice to achieve this — women and men President of Operations, I confirmed that this operation is a increasingly more aware that caring benchmark for responsible mining. From that standpoint, for our life and health in the operation I am proud to point out that we did not have any fatalities is everyone’s responsibility. in our operation in 2016, which reflects our teamwork, the effectiveness of our efforts, and the commitment that we, It is and always will be our priority as an organization, have with proper risk identification to keep our operation fatality-free, and management. Good results are a consequence of and we will continue dedicating all doing things right. And doing things right is achieving our efforts and necessary resources what is it expected in terms of productivity, availability, to continue being an example of and reliability. And safety is an integral part of our work. responsible mining in Colombia.
Our operation meets the highest standards and follows industry best practices.
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GRAPH 36 Our Results Execution of our Occupational Safety and All Cerrejón employees are linked Health Management System to Similar Exposure Groups (SEG) USD2.6 million that classify occupational exposure Execution of our Occupational taking into account international Safety and Health Management technical benchmarks. Considering System (SG-SST). USD1.2 million Operational expenses for the nature of certain industrial Preventive Medicine and operations, some employees may Occupational and Industrial USD1.4 million Hygiene . be subjected to greater risk than Operational expenses in others. Therefore, various technical the Safety Process. control actions have been designed 300 profesionales Participation of 300 professionals, at Cerrejón to reduce this exposure. including emergency response Some examples are the redesigning members, for the execution of tasks and activities related to the of processes, the maintenance given to Occupational Safety and Health mining equipment cabins, the wetting Management System (SG- SST). of roads, and process automation, Integration of industrial hygiene, preventive medicine, and work processes amongst many others. In addition, education processes are permanently in place to increase self-care awareness
Allows the identi cation of Directs the implementation Requires medical monitoring in workers. This includes providing occupational risk of technical controls that to identify deviations from them with the best quality and amount conditions to which mitigate previously our collaborators’ health workers are exposed. identi ed risks. status and adopt the required of personal protection elements. actions. Cerrejón also undertakes permanent medical oversight of all its employees according to the level of risk in each tablE 7 and every one of the company´s SEGs Our Oversight Committees for the early detection of any change in their health and to immediately Committee General Aspects undertake individual and group Joint Committee on Our employees represent 50% of this committee. They Health and Safety actively participate with a representation of 16 persons actions if any changes are found. (COPASST) elected by workers (8 representatives from workers at the In 2016, 4,091 workers were engaged mine, 4 from Bogotá, and 4 from Puerto Bolívar) and 16 in jobs the nature of which involved designated by Cerrejón’s administration. Topics include: higher exposures to the risk of acquiring • Investigating work-related accidents • occupational diseases since they were •• Planned inspections being exposed to industrial noise levels •• Reviewing the various epidemiological surveillance systems above permitted limits, and 50 were Health committee Comprising 12 representatives, four from the exposed to particulate matter with silica administration and eight from Sintracarbón, with Sintracarbón contents. These employees, as well as the largest trade union at Cerrejón. those exposed to lower exposure levels, Comprising eight representatives, four from the have benefited from the aforementioned Committee with administration and four from Sintracerrejón. Coupled to control actions (Table 8). the health topic, this committee deals with all aspects Sintracerrejón In this regard, we developed related to the workers affiliated with this trade union. technical projects to control occupational risks in several company The COPASST and contractors. We monitor their performance through their compliance with the legal requirements regarding the Occupational Health and Safety System (OHSS), audited by the Colombian Safety Council.
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06 COMMITMENT WITH WORK IN LA GUAJIRA areas and, for the first time, organized Cerrejón community. An additional goal is to the diploma course on “Hygiene in Motion reduce the high excess weight and for non-Hygienists” for 31 engineer This initiative has become our health obesity levels in our employees. leaders in Safety and Health at Work brand. Its objective is to contribute The model has three core and (SHW), strengthening their hygiene to promoting a culture of self-care transverse mainstays that support and control competencies. and generate healthy lifestyle habits it: physical activity, healthy eating, in the social context and outside and transverse education. working hours for Cerrejón’s workers, The program began with 1,818 their family members, and the participants (59% employees and
TABLE 8
Number of workers Our main prevention, mitigation, Type of exposure carrying out and oversight measures the activity
Exposure to noise levels above the corrected Redesigning of processes, enclosure of TLVs - Threshold Limit Value (maximum cabins, diminishing time of exposure, medical allowed exposure concentration of 4,041 oversight, new technologies and tools, the workers to various occupational risks) use of personal protection elements.
Wetting of roads, dust suppression systems, covered coal conveyor belts, temporary storage Exposure to particulate matter with silica 50 silos to load trains and vessels with effective content in excess of corrected TLVs. emission-control systems, maintenance given to the enclosed cabins of mining equipment.
GRAPH 37 INDEXES OF Occupational Safety and Health 2016
OCCUPATIONAL DISEASES ABSENTEEISM RIFR LOST DAYS
4.2 for every 3.67 For every 200,000 hours Reduction of 0.19 200,000 hours 0.21 of exposure over 5.09 40% worked the number of hours worked
14 CASES IN 2016 2015 2016 0.19 CONTRACTORS In 2016, there were 14 cases of The absenteeism index increased, Our recordable injury frequency rate CERO FATALITIES IN 2016 occupational diseases only in men, considering that in 2015 it was 3.67 (RIFR), which calculates the number of based on which we obtained an index and in 2016 it was 4.2 (for women it accidents for every 200,000 hours of Given that there were no fatalities of occupational diseases of 0.19 for was 2.92 and for men 4.30). exposure over the number of hours of employees or contractors in the every 200,000 hours worked. Therefore, we performed controls on worked during the period, was 0.21 for year, the index of lost days short-term absences during the our direct employees (women 0.21 and (severity index) dropped by 40%. second half of the year. men 0.25) and 0.19 for contractors.
Cerrejón does not monitor the absenteeism of its contractors due to health-related causes. However, we are notified if there are deviations in the audits conducted by the Colombian Safety Council.
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41% family members), who were Our Challenges measured during the first quarter •• Reducing absenteeism, dropping it to of 2015. The results indicated that 3.6% by designing and implementing 80% suffered from some degree of the campaign It is worth while to be excess weight or obesity, 38% showed present (Vale la pena estar presente). abnormal total cholesterol, and 29.6% •• Implementing technical control acknowledgements had abnormal triglyceride levels. strategies to reduce exposure to •• First place in the 2016 In 2016, what stood out was that various occupational risks and Responsible Hearts award – the excess weight and obesity levels administrative control measures Business Category, granted had dropped by 3.75%, triglyceride such as the proper use of personal by the Colombian Heart levels dropped by 6.9%, and cholesterol protection elements, amongst others. and Society Foundation. levels remained unchanged. •• Maintaining our score of zero •• Diamond award – Gold Absenteeism due to health fatalities in our operation and in category granted by ARL reasons (general diseases) among repeated high potential accidents. Positiva 2015-2016 award. participating workers prior to the •• Consolidating the Fatal start of Cerrejón in Motion and during Risks Management System the year of these activities went from in activities carried out by 1.73% to 1.65%, a drop of 4.62%. employees and contractors. In 2016, participation rose to •• Continuing to reduce the recordable 2,823 persons compared to the 2,030 injury frequency rate (RIFR). participants by the end of 2015. In addition, we achieved participation adherence of 68% thanks to the extension of the project to various players such as the Departmental Institute of Sports of La Guajira, local mayors´ offices, employee funds, and cooperatives. We also managed to motivate our contractors with the good practices of Cerrejón in Motion, promoting activities and initiatives of their own to reinforce this culture in their workers.
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06 COMMITMENT WITH WORK IN LA GUAJIRA
Responsible and Transparent Engagement with our Workers
IN cerrejón WE ARE COMMITTED WITH THE COMPREHENSIVE DEVELOPMENT OF OUR WORKERS.
Engagement with our workers careers, enhancing their quality of focuses on maintaining a permanent life based on the benefits generated and transparent two-way dialogue, by Cerrejón, and offering fair and offering comprehensive development decent working conditions in terms of through training programs geared compensation and remuneration. towards reinforcing their professional Training and Development grAPH 38 The use of new technologies to back Principal increases teaching processes is becoming more in training hours per person relevant worldwide with every day. These technologies allow optimization MEN WOMEN TOTAL in the use of resources, incorporating aspects associated to emergency TRAINING HOURS NUMBER OF AVERAGE TRAINING IN 2016 EMPLOYEES HOURS handling, and especially offer flexibility to the company and employees 300,000 6,000 120 23,323 401 in the execution of processes. At Cerrejón, we have two simulators 200,000 4,000 80 58 with up-to-date software to offer
267,039 5,524 training in the safe operation of some of 100,000 2,000 40 our heavy equipment (such as the CAT 48 240 ton trucks, Hitachi EX 5500 shovels,
290,362 5,925 49 D11 tractors, and other equipment). We also have light equipment driving kits to simulate up to the last detail of the environment and to program in 21% 9% unforeseen situations encountered while operating said equipment in the mining area. Unexpected failures Training in operational Technical training integrity (safety, health, (improving technical or external conditions that could be and environment) and operational skills) dangerous can even be programmed
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so as to verify that the person has graph 39 the required skills, especially those Average number of training hours 2016 applicable to the various procedures for acting safely in case of emergencies. In 2016, 1,544 persons (including employees and contractors) were Apprentices 395 trained on the simulators, accruing close to 1,600 man-hours of training. Technical personnel 33
Main Benefits Professional analysts and specialists 19 for our Employees At Cerrejón, we contribute to the Professional supervisory personnel 33 quality of life and development of our employees and their families through the Professional management personnel 16 benefits offered by our organization.
graph 40 Average hours of training per employee (2013-2016)
60
50 57 40 48 49 44 30
20
10
2013 2014 2015 2016 graph 41 Graph 42 Average number of training hours by gender Historic data on the number of skill management courses for workers
600 544 519 58 473 480 60 500 48 400
40 300
200
20 100
MEN WOMEN 2013 2014 2015 2016
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06 COMMITMENT WITH WORK IN LA GUAJIRA
TABLe 9
Covers only Investment Covers all employees per Main benefits in 2016 2016 (COPM) employees bargaining agreement
Supplementary healthcare plans to meet the medical needs of our employees and 29,009 x beneficiaries in a private care scheme
Retirement plan to foster long-term savings 20,525 x and the constitution of patrimony.
PHousing loans at better rates 9,643 x than the market offers.
A comprehensive insurance plan aimed at economic security and the protection of 7,939 x our employees’ family members in case of demise due to natural causes or disability.
Productivity bonus: stimulus to our employees for meeting operational goals 7,253 x and safety and quality indicators.
Per diem for medical treatment: aid to cover transfers and accommodation in 2,291 x case of medical treatment in a city other than the city where the employee resides.
Educational aids: aid to cover school and university education expenses 17,061 x of our workers´ children.
Educational aid plan: to aid our employees in developing skills to enable them to 298 x perform better in their current positions or others they may have in future.
Special bonus to stimulate employees to meet operational and safety 16,699 x goals and quality indicators.
PConventional loans: financial aid for 3,547 x employees experiencing economic hardship.
Conventional aids. 664 x
Vacation bonuses. 19,039 x
Christmas bonuses. 17,847 x
Conventional bonuses. 5,035 x
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Our Challenges •• To continue reinforcing procedures to manage different types of emergencies in the operation of heavy machinery through theory and hands-on training.
•• To carry out the plan to update interactive courses used for training heavy machinery operators.
•• To conduct training to issue and renew certifications by the International Maritime Organization (IMO) for our employees in Puerto Bolívar.
•• To begin training operators with the simulator to lower fuel consumption in trucks.
•• To continue with the Administrative Skills Development and Supervisory Leadership Program.
•• To reinforce training aimed at addressing the generational turnover of our workforce in the coming years.
Training sessions 337 100 26 47 9 were geared towards were on operational were geared towards were functional courses were on the development enhancing operational integrity focusing on improving personnel specific to the technology of managerial skills. and technical skills. health, safety, and effectiveness. of each area. environmental issues.
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06 COMMITMENT WITH WORK IN LA GUAJIRA
Engagement with our Workers
There are two trade unions at Cerrejón (Sintracerrejón and Sintracarbón) and 4,068 employees are affiliated to them.
We succeeded in signing a new Collective Bargaining Agreement with both trade unions in 2016 after negotiations based on dialogue and agreement between the parties. As a company, we made an enormous effort to maintain and increase our workers’ benefits amidst a sustained fall in coal prices. 26.8% of the total items included in the Collective Bargaining Agreement with both trade unions are related to health and safety issues. 93% of our workforce is made up of men and 7% of women. Therefore, the percentage of affiliated, associated unaffiliated, and uncovered women is lower for both Collective Bargaining Agreements.
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GRAPHS 43 and 44 Employees Covered by Collective Agreements
PERCENTAGE OF EMPLOYEES COVERED BY COLLECTIVE BARGAINING AGREEMENT WITH SINTRACARBÓN
MEN WOMEN
2% 70
60
50
40
30
20 1.1% 2.9% 0.8% 10
64.7% 11.3% 5.9% 11.4% 0 MEMBER ASSOCIATE NOT AFFILIATED NOT COVERED
PERCENTAGE OF EMPLOYEES COVERED BY COLLECTIVE BARGAINING AGREEMENT WITH SINTRACERREJÓN
MEN WOMEN
100 3.7%
80
60
40
0.2% 0.0% 20 2.9% 4.8% 0.0% 7 7.1 % 11.4% 0 MEMBER ASSOCIATE NOT AFFILIATED NOT COVERED
Our Challenges •• To begin the collective bargaining process with Sintracarbón and Sintracerrejón by seeking an agreement that benefits workers and allows for the company’s sustainability while constantly maintaining a work environment based on respect, dialogue, and compliance with the law.
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06 COMMITMENT WITH WORK IN LA GUAJIRA
Responsible Management with Suppliers and Contractors
Suppliers from different sectors Guidelines. The objective is to promote 166 suppliers from participate in Cerrejón’s supply ethical, safe, and professional conduct La Guajira, as well chain, and they offer the supporting with the highest standards amongst as 1,114 domestic and goods and services required by our all individuals who directly or indirectly 295 international operations. Therefore, we make sure participate in our operation. they are all aligned with the principles suppliers participated of our business model and that they in our supply chain comply with our Policies and Conduct in 2016.
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table 19 Main Purchasing Lines and Services
Purchases Contracts
Construction, transportation, roadway signage, Hardware, wood products, zoning signage (safety), industrial cleaning, topographic surveys, vehicle rentals, and handmade items, amongst others. Support tool maintenance, agricultural and reforestation for initiatives to manufacture parts from FRP In La Guajira efforts, clearing undergrowth, operating agricultural (fibreglass-reinforced plastic) and repair the mining equipment, psychological and social support, roadway fleet’s minor components with local companies. wetting, maintenance of communications equipment, publicity agency, and training mining teams.
Hardware, furnishings, tools, welding, Domestic chemicals, personal protection elements, Repair of equipment and components. uniforms, and gasoline for light vehicles.
Supplies for the operation such as tyres, International diesel for mining equipment, spare parts for Consulting. equipment, tools, nitrate, and conveyor belts.
table 11 Purchases and Contracted Services
In millions of pesos PURCHASES SUPPLIERS CONTRACT SUPPLIERS Total LA GUAJIRA $8,294 30 $36,639 136 $44,933 DOMESTIC $269,674 541 $702,780 573 $972,454 INTERNATIONAL $1,193,217 262 $40,278 33 $1,233,495
We Add Value and services provided, and generate and sources of financing by the to their high added value to our processes while time they complete the program. Strengthening they become part of the demand of Process products and services within the region. We started the Supplier Development We initially had the participation of Our Challenges Program in December of 2016 to 23 companies from Albania, Hatonuevo, •• To continue adding suppliers to promote economic and social Barrancas, Fonseca, San Juan del Cerrejón’s value chain. We hope development, strengthening La Guajira’s Cesar, Riohacha, and Uribia. These that contractors and suppliers business fabric, and increasing the suppliers of different types of services will be able to successfully volume of Cerrejón’s contracting and within the region will strengthen their participate in the organization’s purchases within the department. management, sales and marketing tender processes. This will involve This is a process for strengthening skills, and skills related to business increased income for them, generate contractors and suppliers, based on an development, financial management, employment and, ultimately, eight-month training program, so that administrative management, safety improve the standard of living of they may achieve quality, efficiency, and and protection, business model members of these companies. competitiveness regarding the goods development, and access to markets
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07 OUR MINE CLOSURE PLAN
OUR MINE CLOSURE PLAN
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07 With our Mine Closure Plan (MCP), we are committed to planning and defining the actions required to gradually and systematically implement the mine closure by meeting legal requirements and voluntarily following international practices, with the purpose of closing, preventing, or offsetting social and environmental liabilities deriving from our operations.
Colombia does not currently have a Updating the unique legislation or legal framework Closure Plan that regulates mine closure. Our legal We updated our preliminary closure plan requirements for closure are derived in 2016 with the participation of different from mining operation contracts, company areas and an international the applicable Comprehensive consultant with recognized experience Environmental Management Plan, in the subject. This effort grouped the and the environmental requirements components vulnerable to closing, and defined by the National Environmental defined the required activities in three areas: Permitting Authority (the ANLA, •• Physical. Infrastructure and facilities Resolution 263 of 2015). We have •• Social. Affected parties also adopted good practices from and stakeholders our shareholder, Anglo-American, •• Biological. Fauna, flora, to carry out and update the MCP. soil, and surface water In this regard, we follow a planning It also included a risk analysis for cycle for closing the mine in phases and the closure and post-closure stages, as carry out activities in stages based on the well as identification of the potential mine’s useful life cycle, to finalize mining control measures to be implemented. contracts. (See Graph 45 on page 96). These measures were included within the plans of action for mine closure.
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07 OUR MINE CLOSURE PLAN
GRAPH 4 5 MINE CLOSURE
MINE CLOSURE PLAN
21-15 YEARS 15-10 YEARS 10-5 YEARS 5-0 YEARS
PRELIMINARY DRAFT DETAILED FINAL PLANNING START – END CONTRACTS
IMPLEMENTATION OF PROGRESSIVE CLOSURE 0-5 YEARS 5-15 YEARS
IMPLEMENTATION POST-CLOSURE OF FINAL CLOSURE (MONITORING)
SOCIAL LAND FIRE BACKFILLING WATER INTERVENTION RECLAMATION CONTROL MANAGEMENT PROGRAMS EXECUTION 2034 END OF CONTRACTS
PROGRESSIVE CLOSURE FINAL CLOSURE POST-CLOSURE
Finalize all administrative Verify the e ectiveness of Carried out continuously as part of the operational stage up and operational activities actions implemented, until completion of operations, which corresponds to the related to closure. through monitoring, end of the mining contracts. veri cation, and Formal transfer of areas and documentation activities. infrastructure to the State.
Our Challenges • To apply the recommendations and perform the • To prepare and implement an internal and closure activities proposed in the preliminary plan external communications plan for the mine closure by including them in the operational plans. plan, including government entities, employees, • To annually update the long-term reclamation contractors, and neighbouring communities. plan for areas disturbed based on the • To carry out negotiation processes with the State applicable long-term mining plan. and local authorities to define legal frameworks • To conduct studies and tests for long-term applicable to the mine closure plan. geotechnical stability in areas disturbed by mining.
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gri index
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page/URL/ general content / GRI direct OmisSIONS Independent GLOBAL PACT standard / own indicator response Assurance PRINCIPLES Organization profile GRI 102 - 1 Name of organization 1 GRI 102 - 2 The primary brands, products, and 5 services in the organization GRI 102 - 3 Location of organization’s headquarters. 1 GRI 102 - 4 Location of all operation sites 1
GRI 102 - 5 Describe the nature of ownership and legal form. 5 GRI 102 - 6 The markets served 5
GRI 102 - 7 Scale of the 14 organization GRI 102 - 9 Supply chain 93 GRI 102 - 10 Significant changes during the reporting 1 period regarding the organization’s supply chain. GRI 102 - 11 Precautionary principle 16 GRI 102 - 12 Externally 14 developed initiatives GRI 102 - 13 Associations to which 14 the organization belongs Strategy GRI 102 - 14 Statement 6-8 from the CEO Ethics and Integrity GRI 102 - 16 Values, principles, standards, and 19-20 10 norms of behaviour
Government GRI 102 - 18 Governance 13 10 structure of the organization Participation of stakeholders GRI 102 - 40 List stakeholder 17 groups engaged GRI 102 - 41 Collective Bargain 90-91 3 GRI 102 - 42 Basis for the selection of stakeholders 17
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page/URL/ general content / GRI direct OmisSIONS Independent GLOBAL PACT standard / own indicator response Assurance PRINCIPLES Participation of stakeholders GRI 102 - 43 Approach to 17 stakeholder engagement GRI 102 - 44 Key topics and concerns that have 10-11 been raised through stakeholder engagement REPORT PRACTICE GRI 102 - 45 Entities included in The companies the organization’s consolidated Carbones del Cerrejón financial statements Limited and Cerrejón Zona Norte S.A. do not consolidate their financial status. GRI 102 - 46 Report content 9-11 and the Aspect Boundaries GRI 102 - 47 List all the material Aspects 11 GRI 102 - 48 1 Restatements GRI 102 - 49 Significant changes 1 from previous reporting periods GRI 102 - 50 Periodo de reporte 1 GRI 102 - 51 Date of the latest Report 2015
GRI 102 - 52 Cycle of the report 1 GRI 102 - 53 Contact person for questions related to the report 1
GRI 102 - 54 Declaration of compliance with the 1 GRI standards
GRI 102 - 55 GRI index 98-105
GRI 102 - 56 External assurance 106-109
We operate ethically and with integrity GRI 205 - 1 Operations evaluated as having a risk of corruption 21 X 10
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page/URL/ general content / GRI direct OmisSIONS Independent GLOBAL PACT standard / own indicator response Assurance PRINCIPLES We operate ethically and with integrity Our own indicator: Communications and 21 10 training on anti-corruption policies and procedures GRI 205 - 3 Confirmed incidents 21 X 10 of corruption and actions taken Generated and Distributed Economic Value Our own indicator: Economic 14 value generated and distributed W ater use and access in the region GRI 103-1 al 103-3 Management approach 26 GRI 303 - 1 Water capture by source 30 X 7 y 8
GRI 303 - 2 Significant impacts on bodies of water 29-30 X due to withdrawals GRI 306 - 1 Discharges by quality and destination 30-31 X 7 y 8
GRI 306 - 5 Impacts on bodies of water due to discharges 30-31 7 y 8
Biodiversity stewardship and conservation GRI 103-1 al 103-3 34 Management approach GRI 304 - 1 Locations of operation itself, leased, managed, or adjacent to protected areas or areas of great biodiversity value 35-36 7 y 8 outside of protected areas
GRI 304 - 2 Significant impacts of activities, goods and 36-37 X 7 y 8 services on biodiversity
GRI 304 - 3 Habitats protected or restored 38-39 X 7 y 8 GRI 304 - 4 Species on the UICN Red List and on national conservation lists with habitats 37 7 y 8 in the operational areas
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page/URL/ general content / GRI direct OmisSIONS Independent GLOBAL PACT standard / own indicator response Assurance PRINCIPLES Responsible air-quality management/Climate management GRI 103-1 al 103-3 40 Management approach Our own indicator: Emissions 44-45 reduction and control initiatives GRI 305 - 7 NOx, SOx, and other 40-43 X significant air emissions Increased local workers and supply GRI 103-1 al 103-3 73 Management approach GRI 102 - 8 Information on 76 X 6 employees and other workers GRI 401 - 1 New employee hires Does not include and employee turnover hiring rate of our contractors as 77-79 X that number is not managed by the company. Strengthening suppliers and creating productive value chains in the region GRI 103-1 al 103-3 Our challenge is to Management approach define management 92-93 key performance indicators for this material aspect. Responsible, transparent management with our workers Our own indicator: Number of worker management programs 87
404-1 Average annual training hours per employee 87
403 -4 Health and safety topics covered in formal 90 agreements with trade unions
Safe, healthy working environment GRI 103-1 al 103-3 81 Management approach GRI 403 - 1 Workers represented on health and safety committees. 83
GRI 403 - 2 Type and rate of injuries, occupational 84 diseases, lost days, absenteeism, and fatalities
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page/URL/ general content / GRI direct OmisSIONS Independent GLOBAL PACT standard / own indicator response Assurance PRINCIPLES Safe, healthy working environment GRI 403 - 3 Employees with a high incidence and high risk 84 X of occupational diseases Our own indicator: Number of participants and percentage 85 X of adherence to Cerrejón in Motion program Commitment to human rights GRI 103-1 al 103-3 47-49 Management approach GRI 412 - 1 Operations subject to human rights 47 X review or assessment GRI 410 - 1 Security personnel who have received training 49 1 y 2 on organization’s human rights policies or procedures Our own indicator: Supplier 49 workforce audit Our own indicator: Number of complaints received, 50 X closed, and in course
Respect for right to prior consultation of ethnic communities GRI 103-1 al 103-3 53-54 1 y 2 Management approach Our own indicator: Prior consultations held over course 54 of year and main results Engagement and respect for rights of indigenous communities GRI 103-1 al 103-3 Management approach 53 1 GRI 411 - 1 Violation incidents involving the rights of 54 X indigenous peoples Resettlement and post-resettlement Our own indicator: Status of resettlements and main 58-61 X results of post-resettlements
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page/URL/ general content / GRI direct OmisSIONS Independent GLOBAL PACT standard / own indicator response Assurance PRINCIPLES Improved quality of life of communities in the area of influence and engagement with the community of La Guajira GRI 103-1 al 103-3 63-64 Management approach Our own indicator: Operations in which we have carried 68 1 y 2 out programs with the community and engagement MINE CLOSURE PLAN GRI 103-1 al 103-3 Our challenge is to Management approach define management 95-97 key performance indicators for this material aspect. Company’s role in the post-conflict period Given that the Peace Agreement with the FARC was signed in December of 2016, the company does not GRI 103-1 al 103-3 yet have an indicator 70 Management approach for managing this material topic. The chapter “The Value of Mining for La Guajira” presents our views on this issue.
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Independent Review Memorandum Independent Verification of Cerrejón 2016 Sustainability Report.
Scope of our work We have reviewed the adaptation of the contents of the 2016 Sustainability Report of Cerrejón to the Guide for the elaboration of Sustainability Reports of the Global Reporting Initiative (GRI Standards).
Verification standards and processes We conducted our work in accordance with ISAE 3000 - International Standard on Assurance Engagements Other than Audits or Reviews of Historical Financial Information issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accounts (IFAC). Our review work consisted in formulating questions to the Directors and the various areas of Cerrejón who participated in the development of Sustainability Report 2016 and the application of certain analytical procedures and review testing sample described below:
•• Interviews with staff members of Cerrejón to know the principles, systems and management approaches used to develop the report and calculate the indicators.
•• Analysis of how, from the materiality exercise, the contents, structure and indicators of the report are defined, according to the methodology suggested by GRI Standard.
•• Evaluation of the process to collect and validate the data presented in the report.
•• Checking, by testing based on sample selection and review of evidence of quantitative and qualitative information corresponding to the GRI and Cerrejón internal indicators included in the Sustainability Report 2016 and proper compilation from the data supplied by the sources of information of Cerrejón and site visit to the field operation in La Guajira to review the information regarding the material topics related.
Confirmation that the 2016 Cerrejón Sustainability Report is prepared in accordance with the GRI standard in its Essential option “in accordance” with the Guide.
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General disclosures It was confirmed that the Report meets the requirements of the core option of the general aspects of the Standard version:
Material Topics Internal or GRI disclosure
102-8. Information on employees and other workers Raise of local workforce and supply 401-1. New employee hires and employee turnover
403-3. Workers with high incidence or high risk of diseases related to their occupation Safe workplace Internal. “Cerrejón en Movimiento” 412-1. Operations that have been subject to human rights reviews or impact assessments Commitment to human rights Internal. Complains Relationship and Respect for the 411-1. Incidents of violations involving rights of indigenous peoples Rights of Indigenous Communities Access to water in the region 303-1. Water withdrawal by source
303-2. Water sources significantly affected by withdrawal of water Efficient and responsible use of water in the operation 306-1. Water discharge by quality and destination 304-2. Significant impacts of activities, products, and services on biodiversity
Care and conservation of biodiversity 304-3. Habitats protected or restored Internal. Land Rehabilitation
Responsible management of air quality 305-7. Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions Mine Closure Plan Company´s role in the post conflict These issues did not have detailed verification when they were under construction, however, a review of the context and management approach that is being developed around each one was made Respect for the right to prior consultation of ethnic communities O ther topics Internal or GRI disclosure 205-1. Operations assessed for risks related to corruption Operations with ethics and integrity 205-3. Confirmed incidents of corruption and actions taken Reasentamiento y post reasentamiento Internal. Resettlement and post resettlement
Contribution to the national This issue did not have a detailed verification when it was under construction, however, a review commitment to climate change of the context and management approach that is being developed around it, was made.
Conclusions As a result of our review, there has been no evidence to suggest that Cerrejón’s 2016 Sustainability Report contains significant errors or has not been prepared in accordance with the Global Reporting Initiative’s Sustainability Reporting Guide, in its Essential option “in accordance” with the Guide.
* The topics of Strengthening suppliers, generation of productive chains in the region, improvements in the quality of life of communities in the area of influence and engagement with La Guajira community were not veriffed by Deloitte.
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Main Comments & Recommendations vs. GRI and WBCSD Principles
Sustainability Context/ Materiality General observations It is important to highlight the appropriation and integration of sustainability issues as a strategic part of the company’s management, which evidences the development and critical analysis of material issues and their measurement mechanisms.
Recommendations Responsibilities It is suggested to maintain this good practice and strengthen management around of the Management the issue of climate change, in such a way that it can become a material issue of Cerrejón for Cerrejón. It is also recommended to do the alignment and identification of and Deloitte the contribution to international initiatives such as the Sustainable Development Goals SDG, taking into account the global context associated with these issues. The preparation of the Cerrejón 2016 Sustainability Report, as Timeliness well as the content thereof, is the General observations responsibility of the organization Although the process of verification and publication of the report which is also responsible for improved its timeliness in relation to the previous year, it is still evident defining, adapting and maintaining that the report is being published in the last quarter of the year, losing its the internal management and strategic value as a tool for decision-making regarding sustainability. control systems from which the information is obtained. Recommendations It is recommended to strengthen and optimize the publication times Our responsibility is to issue an of the report, in such a way that it is used as a management and independent report based on the decision-making tool for senior executives and those responsible procedures applied in our review. for the sustainability management of the organization. This Report has been prepared exclusively in the interest of the Commitments and goals organization in accordance with the General observations terms of our proposed services. We It is important to highlight that Cerrejón has identified the most do not assume any responsibility important challenges that it faces around its material issues. towards third parties other than the Company’s Management. Recommendations It is suggested to establish goals in the short, medium and long term around the We have performed our work management of their material matters, which allow to measure the performance and in accordance with the standards progress of the organization with respect to the management of sustainability and of independence required by the thus make an annual balance on goals reached or not and determine action plans. Code of Ethics of the International Federation of Accountants (IFAC).
The scope of a limited review is substantially lower than that of an audit. Therefore, we do not provide audit opinion on the Integrated Report.
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responsible mining � 2016 Editor Carolina Urrutia Vásquez
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