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Sustainability Report 2014 About This Report Sustainability Report 2014 ABOUT THIS REPORT Welcome to Antofagasta Mineral´s eighth annual Sustainability Report where we summarize our strategy, priorities and performance for our most material social and environmental issues, in accordance with the GRI G4 Core option, and the GRI Mining and Metals Supplement standards. More information on Anexxes, p. 59. The Report focuses on the year 2014, from January 1 to December 31 and includes data from previous years to provide further context for Antofagasta Minerals and its´ three operations (Los Pelambres, Centinela and Michilla). Where relevant, the report also includes data on Antucoya, the project that will commence production in 2015. This report also refers to the main sustainability related events occurring up to March 31, 2015. This report was verified by PricewaterhouseCoopers (PwC). The 1 information on CO2 emissions was verified by SGS. More information on Anexxes p. 58, Verification report. The preparation of this Report was led by Antofagasta Minerals Public Affairs Department with the support of external consultants. This department also reviewed the alignment GRI Principles and was responsible for obtaining and validating the information. 1 www.sgs.com This report is available at www.aminerals.cl and www.antofagasta.co.uk CONTACT INFORMATION For comments or questions regarding the Sustainability Report please contact [email protected] MATERIALITY ANALYSIS Antofagasta Minerals conducted a formal materiality assessment that included the following perspectives: The opinion of its major stakeholders.1 Relevant topics for the business.2 The mining3 sector´s emerging issues. The themes identified were assessed combining two criteria: Their relevance –from the three perspectives listed above–, and their impact on business. In completing the analysis, Antofagasta Minerals and the operations conducted a materiality workshop in March 2014. Their combined assessment was also subjected to review by the management team at each operation and finally discussed in the Group´s Executive Committee. MATRIX OF MATERIAL ISSUES Antofagasta Minerals Contribution to Sustainability strategy Ethics and integrity local economic Environmental Compliance development, incidents/conflicts Workplace safety employment and Mining waste and health local suppliers Contribution to local Labour relations social development Water Energy Climate change Air Risk management Engagement Business development Social incidents/ conflicts Mine closure Corporate Value chain governance (contractors) Job quality Biodiversity Relevance for stakeholders for Relevance Natural and historical heritage Other environments Social impacts Indigenous peoples Talent attraction and retention Product life cycle Human rights Impact on the business 1 Input from internal documents: Annual Perception & Reputation Report 2013 & 2014 (consults workers, contractor workers, local authorities and opinion leaders), annual climate survey, annual sustainability investor roadshow; and reports by third parties. 2 Input from: Group Vision and strategic objectives, Annual Report investor presentations and benchmark of sustainability reports. 3 Input from: ICMM, Japan Bank for International Cooperation, Equator Principles, International Finance Corporation, GRI G4 and Minning and Metals Supplement, ISO 26000, Integrated Reporting Initiative and benchmark of sustainability reports. CONTENTS 01 Introduction 02 Letter from the CEO 03 Sustainability and Stakeholder Management Committee 02 Antofagasta Minerals 04 Our operations 06 Distributing value 03 Strategy and sustainability 08 Business strategy 10 Managing sustainability 13 Sustainability governance 04 Material issues 18 Meeting goals 20 Stakeholders 22 Safety and health 26 Workers 28 Suppliers and contractors 30 Community 38 Environmental management 40 Water 42 Energy and climate change 46 Air 48 Closing operations 50 Mine waste 55 Biodiversity and cultural heritage 05 Appendices 58 Verification Statement 59 GRI G4 Content Index This Sustainability Report is a translation from the original Spanish version which is available on Antofagasta plc’s website www.antofagasta.co.uk LETTER FROM THE CEO Diego Hernández full implementation of the health and We also made progress in the study and safety model we introduced recently. definition of new mining projects in order We need to continue increasing to increase production in the medium The year 2014 was marked vigilance: no production goal justifies term. In this regard, in order to enable by decisions that tested endangering lives. the construction and thus to be able to increase our contribution to Chile’s our ability to be consistent However, it was also a very significant development, we need to implement a year for Antofagasta Minerals. We made with our Charter of Values. new engagement programme with the important progress in consolidating as Both in the creation of communities [ see p. 30]. Minera Centinela and in the a single mining group and, in this way, announcement of the end of improved our management structure In the first months of 2015 we in order to continue growing in Chile our operations at Michilla, experienced two conflicts at Los and abroad. Through consultation Pelambres. The first was due to a we acted in accordance with with our workers, we defined the complex on-going legal case [ see p. our values. Group’s Charter of Values, a framework 32]. The other, triggered by the severe for action that should guide all our drought affecting the country and which decisions, from the largest to the hit the Choapa Valley hard, was resolved We are convinced that mining is and smallest. We also released our new by applying the principles which inspired will continue to be an essential driving corporate image this year. our new community engagement [ see p. 37] force for the development of Chile and In addition, 2014 was marked by approach . its inhabitants. As the largest private decisions that tested our ability to be I would like to thank our shareholders, mining group in the country, we want to consistent with our Charter of Values. employees and partners, their families, strengthen our business and generate Both in the creation of Minera Centinela the local communities and authorities better opportunities for our workers and in the announcement of the end of for the trust they have placed in us, as well as for the communities in the our operations at Michilla, we acted in as none of the progress made in 2014 areas where we develop our operations accordance with our values, especially would have been possible without their and projects. as relates to respecting our workforce efforts and commitment. and their families [ see p. 9] For this reason Antofagasta Minerals . In closing, let me reiterate the need to participates actively –both directly, as Amongst the things we are proud of take care for our lives, both inside and well as through the Mining Council– in is the inauguration of the El Arrayán outside of operations. Zero fatalities the search of solutions to the principal wind farm, the biggest of its type in remains our main goal. challenges facing the industry: Chile, which will allow us to increase competitiveness; water, energy and land the share of renewable energy that shortages; the protection of the lives Los Pelambres utilises to 20% of its and safety of workers; and improving total energy requirements. This is an relations with the communities and important step in diversifying our energy other stakeholders. matrix with clean sources and to mine In 2014 we had some very difficult in a sustainable manner, contributing Diego Hernández times as a result of three fatal to the management of climate change. CEO accidents which cost the lives of We also achieved another year without Antofagasta plc five of our colleagues. We need to having any incidents with significant continue to work even harder in the environmental impact. 2 | Antofagasta Minerals Sustainability Report 2014 INTERVIEW WITH THE CHAIRMAN OF / Introduction THE SUSTAINABILITY AND STAKEHOLDER MANAGEMENT COMMITTEE Ramón Jara Ramón Jara has been a Director of Antofagasta Minerals since 2003 and is Chairman of the Sustainability and Stakeholder Management Committee. Mr. Jara also oversees the Fundación Minera Los Pelambres and is a Director of the Fundación Andrónico Luksic A. Why did the Board of Directors of What were the main topics the Antofagasta Minerals decide to form Committee considered in 2014? a Sustainability and Stakeholder The decision to become members Management Committee? of the ICMM4 and the commitment The Board of Directors has four this entailes to be a leader in committees at which fundamental sustainable mining and report on our business topics are discussed in greater performance. depth than can be done by the Board Progress in the implementation as a whole. The Sustainability and of the health and safety model, as Stakeholder Management Committee well as the lessons from the fatal reflects the belief that social licence accidents we suffered in 2014. is a critical input for the business, Our progress in achieving social and increasingly difficult to achieve and to environmental commitments. maintain. Stakeholders’ expectations continue to increase and this is reflected The social and environmental impact in the legislation, standards and and opportunities of Los Pelambres’ industry best practices. It is the Board’s different growth alternatives. responsibility to understand these The fundamentals and progress of challenges and to
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