Annual Report 2007 - Antofagasta plc

TransportationThe Antofagasta Railway (FCAB) has become oneof the largest combined rail and road transportationcompanies in Chile due mainly to the phenomenalgrowth of mining in the II Region over the lastdecade. It also controls the Andino network in Bolivia.The combined networks, with a total of 2,350 kms oftrack, transported 5.0 million tons by rail and 1.3 milliontons by road in 2007. The FCAB is regulated by theSuperintendency of Railways. Details of tonnagetransported are shown on page 143.WaterAguas de Antofagasta S.A. (“ADASA”) is based inChile’s II Region where it supplies water for domesticand industrial use as well as treating waste water.It is regulated by the Chilean Water Authority and theSuperintendency of Sanitary Services. Water statisticsare shown on page 143.Governance and EthicsThe Group is committed to conducting business inan accountable and transparent way reflecting theinterests of all stakeholders who may be affected byits activities. In so doing, the Group demands honesty,integrity and responsibility from those related to it.It ensures that human rights, customs and values ofits employees are respected, that information aboutits activities is properly communicated and thatenvironmental matters are properly considered.In order to achieve this, it has corporate procedures,management structures and risk managementprocedures in place at both Group level and at thebusiness units. In addition to the Group’s proceduresand structures, the principal operations havedeveloped their own business principles andprocedures to ensure good governance and adherenceto ethics. The Group seeks to ensure similar standardsare maintained by its joint venture partners. Furtherdetails of the Group’s corporate governance and riskmanagement practices are set out in the CorporateGovernance statement on pages 64 to 71.The Group also has a Corporate Code of Ethics whichhas been adopted by the Board and is aimed at allemployees and contractors who are expected tounderstand and fully comply with its requirements.The Group’s Code of Ethics sets the guidelines forall employees’ behaviour, highlighting the importanceof honesty, integrity and commitment, and warningof potential conflicts of interest and independence.Systems and Risk ManagementSystemsManagement systems are in place at all the Group’soperations, to ensure quality of processes andproducts, health and safety of the workforce andcompliance with environmental standards. During2007 the Group continued obtaining certification tointernational standards for management systems andhas set targets for 2008. The progress achieved andtargets are summarised in the table below and onpages 39 and 40. Where international standards arenot applied, companies use management systemsunder relevant national standards or have developedin-house systems.Risk managementThe Directors’ responsibilities for risk management,internal control, internal and external communicationstogether with the role of the Audit Committee areCSR REPORTStatus of certification of ISO 14.001 (environmental management) in Group operationsCompany Area (Business Unit) StatusLos Pelambres Whole company Version 2004, Certified: July 2006El Tesoro Whole company Version 2004, Certified: February 2006Michilla Whole company Under evaluationFCAB Whole company Under evaluationADASAOperative areas of the company –treatment plants, distribution of potable waterand sewer systemUnder evaluationAntofagasta plc Annual Report and Financial Statements 2007 39