Sustainability Report - Antofagasta PLC

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Antofagasta plc Sustainability Report 2011
Sustainability strategy, governance and management
Management systems and auditing
Antofagasta Minerals has management systems, including key
performance indicators, for monitoring progress on social and
environmental performance across the mining companies:
The Assessment of Environmental Performance (AEP) tool, was
introduced in 2010 and is structured around three dimensions: efficiency
in the use of resources (water, fuel, energy); controlling environmental
impacts (climate change, water quality, biodiversity, waste and air quality);
and benefiting the environment (biodiversity conservation, enhancement
of cultural heritage and support for alternative energy sources). Each
mining company sets environmental goals that reflect local priorities.
See page 48.
In 2011 Antofagasta Minerals developed detailed standards for the
aspects of environmental performance covered in the AEP tool. A set of
‘Environmental Management Best Practice’ handbooks help operational
managers apply the standards to the specific challenges at their site. The
handbooks cover the life-cycle of the mining process, from exploration to
mine closure, and are aligned with international guidance, for instance,
from the International Council on Mining and Metals (ICMM).
The Assessment of Social Performance (ASP) tool, was designed and
validated throughout 2011 and will be implemented in all operations in
2012. The main issues covered are health and safety, labour relations,
opportunities for employee development, stakeholder relationships and
community investment.
See page 44.
By the end of 2012 we aim to gather baseline data for each of the social
key performance indicators. This will enable each mining company to set
goals for performance from 2013 and track progress towards them.
Sustainability key performance indicators and goals are included in the
performance agreements between each mining company and Antofagasta
Minerals. These are tracked through the monthly operational performance
reviews and through reports submitted by the mining companies to the
Board.
Regular internal operational audits monitor compliance across the mining
companies. External auditors assess contractor compliance with safety,
human rights and labour standards, including criteria on fair wages,
collective bargaining, paid overtime, holidays, and standards prohibiting
child labour and forced labour.
Integrating sustainability
Achieving its sustainability goals requires the support and expertise of all
Antofagasta Minerals’ employees and contractors. Each mining company’s
sustainability goals are embedded within its annual performance
agreements with Antofagasta Minerals. They are reflected in employment
contracts and remuneration and in agreements with contractor companies.
Antofagasta Minerals works to embed a culture of responsible
environmental stewardship. For example, it publishes regular newsletters to
share environmental news and tips to help employees reduce their impact
on natural resources and behave responsibly.
Exploration: Social and environmental criteria are integrated into the early
stages of the mining cycle, including exploration and project development,
and form part of our due diligence processes. During the explorations stage,
our ‘Social & Environmental Best Practices Manual for Exploration’ is used
during planning and field work. Our External Affairs and Environmental
Advisors work closely with the Exploration Health, Safety, Environment and
Quality officer, responsible for overseeing management of sustainabilityrelated
risks at exploration sites. This helps to ensure that workers and
contractors abide by minimum standards when dealing with local
communities or the surrounding environment.
Social and environmental due diligence processes are also carried out
during early investment phases to identify socio-political, operational, safety,
environmental and reputational risks.
Project evaluation & construction: The design of new mining projects
must follow our ‘Asset Delivery System’ developed in 2011, which lays down
a set of minimum standards, including social and environmental standards,
to be considered from the scoping study through to the pre-feasibility,
feasibility and construction phases.
Operation: All operations regularly report on their environmental and social
performance, measured through key performance indicators.
Closure: Antofagasta Minerals aims to close and decommission its facilities
in a way that is environmentally safe. We have updated closure plans and
provisions in place for all mining operations.
For example, since 2008 Los Pelambres has developed its closure plan for
an old tailings dam at Los Quillayes that ceased to operate when replaced
by the El Mauro dam. This plan was designed with the active participation of
the neighbouring Cuncumén community, taking into account agreed criteria
on safety, the environment and job opportunities for local people.
See case study, page 45.