SUSTAINABLE DEVELOPMENT REPORT 2015 COMPAÑÍA MINERA DOÑA INÉS DE COLLAHUASI US Compañía Minera Doña Inés de Collahuasi SCM is located in the Chilean Administrative Region of Tarapacá and produces copper concentrate, copper cathodes and molybdenum concentrate. We are the third biggest copper operation worldwide, and have one of the largest deposits of this metal around the world. Collahuasi’s owners are Anglo American plc (44%), Glencore (44%), and Japan Collahuasi Resources B.V. (12%). CONTACT Bernardita Fernández Corporate Affairs Manager Compañía Minera Doña Inés de Collahuasi SCM E-mail: [email protected] AVAILABILITY The company’s 2015 Sustainable Development Report, further information on the Company and its sustainability initiatives, may all be found at www.collahuasi.cl. This document is supplemented by the business and financial information included in the 2015 Financial Statements, which are also available at www.collahuasi.cl. The complete list of GRI-G4 indicators can be found in the online version of this report. ABOUT THIS REPORT Compañía Minera Doña Inés de Collahuasi SCM – hereinafter, Collahuasi – has drafted sustainable development reports over the last 10 years. The latter with a view to informing 01 and openly showing the strategy, management, priorities, and performance in the higher impact matters regarding its operations sustainability. In order to fulfil the above cited objective, this document covers all of Collahuasi’s activities in (calendar year) 2015, and it includes, as well, data from prior years so as to contextualize performance. It also includes a glance at the future, and the strategy and goals set in the most relevant areas. Within this context, it should be noted that during the fiscal 02 year reported there have been no significant changes as regards the scope or coverage of past years. The contents in this Report were developed along the guidelines set forth in the G4 guide of the Global Reporting Initiative (GRI), including the supplement for the Mining and Metals sector, and they meet all requirements defined for the Core option. Corporate Citizenship, a world renowned consulting firm with global presence that specializes in sustainability and corporate social responsibility, elaborated this report with the participation of representatives from various areas of 03 Collahuasi. The team was coordinated by the Corporate Affairs Vice- Presidency of Collahuasi, in a watchful task to always meet the GRI principles, while this entity verified the location of the G4-17 through G4-27 indicators in the text. The external verification process was performed by BSD Consulting, and the verification and establishment of future commitments was commissioned to the NGO Red Puentes Chile. 04 TABLE OF CONTENTS 01 THE COMPANY AND ITS STRATEGY p.06 02 THE PATH OF SUSTAINABLE DEVELOPMENT p.30 03 PERFORMANCE IN MATTERS OF GREATER RELEVANCE p.48 04 SCHEDULES p.98 FROM THE EXECUTIVE DEAR READERS: This year had Collahuasi turning a decade of reporting its economic, social, PRESIDENT and environmental performance to the community, its employees and workers, the authorities, and the media. In 2015, we generated direct and indirect employment for over 23,000 people in the country and in our administrative region; our production represented nearly 80% of the copper extracted in Tarapacá; economically, we contributed with an equivalent to 17% of the administrative region’s GDP, and our overall impact is equivalent to 0.7% of the Chilean GDP. It is very satisfying to say that we believe that over these 10 years of reporting, the Company has set itself as a key regional actor that understands that, along with its stakeholders, it is responsible not only for the development of a business of excellence, but also for helping to build an ever-more-thriving society. We have focused social investment on areas that enable our contribution to be sustainable in time, such as education, local development, fostering of tourism, heritage and environmental conservation, and health improvement. Aiming ate significantly contributing to the training and employability of youngsters of the Tarapacá region, we have channelled a significant portion of our social investment of the past few Yeats through the company’s educational foundation, Fundación Educacional Collahuasi, and this year, along with this sustainability report, we are for the first time, rendering the foundation’s public JORGE GÓMEZ account. The document includes the EXECUTIVE PRESIDENT work we have been doing to strengthen COMPAÑÍA MINERA technical education, support primary DOÑA INÉS DE COLLAHUASI education, and reinforce the role parents and tutors have in fostering the academic results of their children. Among the various actions developed in Likewise, we fulfilled the production local level, in order to support a greater education, I would like to highlight the commitments set despite some generation of jobs in the communities fact that last year saw the graduation of difficulties at the concentrating plant. and so foster socio-economic the first generation of the specialization Our target was to produce 452 thousand development in the region. In 2015, and in Mining Exploitation from Liceo Juan tons of fine copper, and we achieved 455 for the second year in a row, Collahuasi Pablo II, a school we co-administrate thousand 300 tons. Regarding costs, and received the award of the Trade together with the Municipal Council thanks to a vast range of plans developed Association of Vendors of the Mining of Alto Hospicio; and that this year to detect opportunities, manage and Industry [hereinafter, the APRIMIN, on we inaugurated the specialization in strengthen our competitiveness, we account of the acronym for its name in Industrial Mechanics in the school Liceo lowered operational costs to US$1.41 Spanish, Asociación de Proveedores de Padre Alberto Hurtado from Pica. These per copper pound, and thus sail to the la Industria Minera], for its performance are the 2 most sought specialty technical first quartile of the industry. as a strategic partner. professions in the mining sector. In terms of human capital, we took In 2015 we also decided to begin Last year was a tough one for the relevant steps towards promoting the preparing a Project to extend industry, both in Chile and worldwide. incorporation of women to the operation, Collahuasi’s useful life between 2020 The Sharp drop in the prices of copper driving diversity in the configuration and 2045. The initiative will begin its forced companies into adjusting their of work teams and incorporating environmental assessment process processes, and saw them striving to operational practices in gender-diverse during the second half of this year. To achieve greater efficiencies to enable teams to enhance productivity and our prepare this assessment, we decided this activity’s sustainability in the long company’s work climate. Despite the to involve, in an early and voluntary run. adverse circumstances faced by the manner, all communities associated, and industry, we did not shrink investment we have already done 2 stages of early Our Company had been working in that in human capital, as acknowledged in the encounters with the neighbourhood, to line since 2013, first with stabilization Merco Talento Ranking, which measures present them with information of the and currently in the optimisation of its and rewards companies recognized project in a timely manner and to create processes. However, upon the restrictive as talent generating and generating a space for dialogue, and to establish scenario of 2015, we were forced to take entities, in which we were assigned the the working axes with a long-term view. additional measures, such as reducing 7th place at a national level. operations at the leaching plant and We have thought this instance as an optimizing its workforce. These were In the environmental sphere, the more opportunity to continue to Project our painful decisions aimed at ensuring the efficient use of water is a priority target future in a sustainable manner within company’s viability in time. for Collahuasi, and in 2015 we managed the Administrative Region of Tarapacá. to achieve 79.4% of water recirculation Despite this adverse environment, at the concentrating plant, above the I invite you to read this report and during 2015 Collahuasi recorded industry’s average. Regarding waste learn in detail about our operations, the good results, since we were able to management, we recycled 46% of them, impact they have, and the way in which consolidate strategies and plans that which translates into a total of 13,896 we control and continuously enhance our we have been implementing over the tons, about 1,300 tons more than in business, as well as the manner in which past few years. On top of that, we 2014. we relate with our various stakeholders achieved very good indicators when it at a local, regional, and national level. comes to occupational safety. Through As regards energy, and in comparison the commitment of al partners and to the 2014 performance, we lowered employees, we have built one of the in 1.79% CO2 emissions, with relevant safest occupational environments of steps in the reduction of our carbon large-scale mining in Chile, with no footprint, being the only mining company occupational fatalities for the third year in Chile that verifies this indicator. Jorge Gómez in a row, and lowering our Frequency Executive President Compañía Minera Index to 0.6 accidents per every 1 m At vendor level, we have been fostering Doña Inés de Collahuasi hours of work. the policy of favouring acquisitions at a 03 Collahuasi AND CREATION ITS CONTRIBUTION OF JOBS TO DEVELOPMENT WORKFORCE WORKING WITH LOCAL COMMUNITIES DEVELOPMENT OF LOCAL SUPPLIERS CREATING ECONOMIC GROWTH 04 2,241 44.9% 97% COLLAHUASI OF DIRECT EMPLOYEES LIVE HAVE IDEFINITE JOB WORKFORCE IN THE ADMINISTRATIVE COTRACTS DIRECT EMPLOYEES REGION 4,255 CONTRACTORS 70,601 WOMEN 0.6% HOURS OF REPRESENT 3.4% ACCIDENT FREQUECY TRAINING OF THE WORKFORCE AND 12% OF INDEX* FOR ITS EMPLOYEES PROFESSIONAL EMPLOYEES ACHIEVING ONE OF THE SAFEST WORK ENVIRONMENTS IN CHILEAN MINING.