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 01 OUR COMPANY THREE DECADES IN OPERATION 2016 � WWW.CERREJON.COM 003 01 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. RESPONSIBLE MINING � 2016 004 / SUSTAINABILITY reporT 01 OUR COMPANY 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. 2016 � WWW.CERREJON.COM MINERÍA RESPONSABLE � 2016 006 / Sustainability report 01 OUR COMPANY 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.