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Minsur Sustinability Report 2019 MINSUR SUSTINABILITY REPORT 2019 1 Minsur Sustinability Report 2019 2 3 Minsur Sustinability Report 2019 Minsur S. A. Calle Bernini 149, San Borja, Lima, Perú Phone: (511) 215-8330 Web sites: www.minsur.com www.marcobre.com www.mtaboca.com.br For further information on our organization and sustainability management, you may contact us at [email protected] (GRI 102-1) (GRI 102-5) (GRI 102-53) (GRI 102-3) Prepared by: Avanza Sostenible www.avanzasostenible.com 4 5 Minsur Sustinability Report 2019 MINING WITH A SUSTAINABLE APPROACH In terms of occupational health, the new coronavirus made (GRI 102-14) us quickly transform all our standards, implementing the necessary protocols to ensure the highest level of health “Our vision is setting a benchmark in sustainability for the mining industry” for our staff and to mitigate transmission risks the best In this interview Juan Luis Kruger, Minsur’s CEO, shares some of the most outstanding achievements in sustainability way possible. This challenges us to be better, and reach management in 2019. the levels of occupational safety we are already used to. If you had to define 2019 for Minsur in one word, Looking forward, what is Minsur expecting for the Before the virus arrived, occupational health issues what would it be and why? beginning of the new decade? were also being managed more efficiently? Transformation. We finished building our B2 project, Our vision in Minsur is to continue our consolidation as In 2019 we launched our occupational health management and we are recycling material that had been already a global leader within the tin industry and, specially, as system, very similar to our safety management system, processed in the past and was stored in a tailings dam. It the only tin producer that is really sustainable. Thus, we and we have made great progress with a strengthened is a way to enter the world of recycled materials. will keep reinvesting in our growth and development team managing these issues. projects in tin, and consolidating our leadership position. This is a sample of how our perseverant and innovative It is important to recall that, in terms of safety, every day efforts enabled us to implement a project, through On the other hand, for 2020, the greatest challenge is we start from scratch. Indulgence is our worst enemy. Our all its stages: from its original plan, pilot tests, design, the commissioning of Mina Justa and starting producing main challenge is being continuously thorough, always construction, and now its commissioning. And it is also copper there. This will be a real turning point for Minsur, keeping people aware of occupational health and safety a testimony to the transformation of environmental both in terms of diversification -which will allow a issues. All accidents have one thing in common: they can liabilities into environmental assets. For me it is very revenue increase due to base production- and also in be prevented. important, since it marks a turning point towards the terms of the company’s size and capacity. Thus, we will company’s future. Moreover, this will allow an estimated be able to embark in larger and more ambitious projects And that is our main challenge: how to maintain the 25% to 30% increase in tin production. in the future due to the scale we are going to reach when level of alert and thoroughness in complying with safety this mine starts producing. management and battling complacency. On the other hand, this has been a year of transformation because of Mina Justa’s implementation progress. At In terms of sustainability, what progress has been Have you turned your attention to alternative the end of December, Mina Justa’s construction was made in occupational health? energies? more than 70% complete and the project was moving quite well, thus consolidating the foundations of Regarding occupational health and safety, in 2019 we We are analyzing the use of renewable energies, basically Minsur through diversification into the copper industry, continued consolidating as the safest mining company wind and solar power. We are lucky since some of our particularly into great copper mining. Mina Justa is for us in Peru, with a record of zero fatal accidents that places operations are located in places with high rates of solar a world-class mine we have developed from the ground us within the world’s top three or four companies. This is radiation, which is a compelling advantage for us. up. a proof of our commitment to develop our safety culture and management, including our under-construction projects. The same happens with wind power. Mina Justa is located Both projects are clearly the beginning of Minsur’s in one of the best places in Peru to produce this type transformation towards its future. Another significant of power, for instance. In fact, there is a very important event was the confirmation of resources and reserves B2 project was completed with no lost-of-time wind farm project next to the mine. Furthermore, Mina in San German area, and San Rafael’s capacity both to accidents. This was achieved during the year and a half Justa is a good example of our commitment to the replenish resources and reserves and to extend the life of construction works, resulting in the world’s most environment, since it uses seawater as the only source of of mine for another year. Last but not least, Nazareth modern tin concentration plant. We are really proud of water consumption, desalinating a part of it. project is starting being consolidated as a project that in this achievement, which sets the bar higher for our next the medium term could be the next San Rafael towards projects. the future. 6 7 Reporte de Sostenibilidad 2019 In 2019, we have developed a new process with our own I would like to thank, in this interview, each and every one Could you share the reach of human rights policies technology that is called double ore sorting. It will lead to of our employees and their families, who are supporting in your sustainability strategy? a 20% to 25% increase in San Rafael’s production in the us to continue moving forward in the direction we have future, without major investments and with no need to set and reaching our goal: being a world-class Peruvian We have made a lot of progress adapting our policies, AS THE ONLY PERUVIAN MINING increase the tailings capacity, which is always a limiting company and setting a benchmark for sustainability. work that is closely connected to our ICMM membership, factor in our industry. as the only Peruvian mining company part of it. All our COMPANY PART OF THE ICMM, ALL Juan Luis Kruger Sayán standards are aligned to its 10 principles, including OUR STANDARDS ARE ALIGNED Moreover, many innovation initiatives have been made in respect for human rights, both in the company, as well TO ITS 10 PRINCIPLES, INCLUDING management processes. Human Resources, for instance, Chief Executive Officer as our contractors. We are gradually ensuring that all RESPECT FOR HUMAN RIGHTS, made a huge effort digitalizing many of its processes, ICMM principles and practices are implemented by our developing very interesting apps to ease the team’s suppliers, contractors and strategic partners. BOTH IN THE COMPANY, AS WELL administrative workload. AS OUR CONTRACTORS. Regarding your projects and operations, what would Would you say that all these sustainability you highlight of 2019 sustainability management? achievements and results in 2019 are part of a new paradigm that Minsur is creating for itself and the From the operational point of view, our management industry? system went t hrough a transformation. That was reflected in the LINGO program, which aims at incorporating Lean What have been the most outstanding aspects Becoming a member of the ICMM has allowed us to Management processes and methodologies within all in terms of business, technological and logistics compare ourselves with the most sustainable mining our units and also at the corporate level. At the end of innovation? companies, with the world’s best sustainability standards. 2019, we launched the first stage of this program in our Thus we can aim at meeting the same standards, which Pisco smelting plant. In addition to VCI, we are developing a series of projects will take us towards consolidating our leading position with our customers, which allow generating downstream in sustainability for the Peruvian mining industry. Another ongoing project is the transformation of value in our customers’ production processes, through the company’s commerc al system management. We changes and innovations in our smelting plant. For Would you say there is an aim to continue being at launched VCI (Value Creation Initiative), which aims at instance, changes in tin presentation, as well as in tin the forefront? developing a different customer approach, starting shipments or the way we used to sell it to some of our with a group of strategic tin customers. Thus, we share customers. This type of business innovation has been No doubt. Our company wants to be always one the co-generated value, which consolidates us as their very significant and beneficial both for us and for our step ahead, and wants to be a reference in our field, preferred supplier. customer base. through sustainability, innovation and the very hard and perseverant work of each one of our collaborators. 8 9 Minsur Sustinability Report 2019 CONTENIDO MINING WITH A SUSTAINABLE APPROACH OUR COMPANY MINSUR IN NUMBERS 1. OUR PROJECTS AND THEIR LOCATION 6. SAFE SPACES: OCCUPATIONAL 9. OUR PEOPLE: HUMAN MANAGEMENT 11. GOVERNANCE, TRANSPARENCY AND 2. CHANGE OF DECADE, CHANGE OF HEALTH AND SAFETY (OHS) • 9.1.
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