Annual Report 2007 - Antofagasta plc

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Corporate Social Responsibility continuedCSR REPORTHuman ResourcesThe Group recognises that its most importantassets are its people. It operates within the existingemployment legislation in Chile and continuallyimproves working conditions by applying bestmanagement practices to maintain a motivated labourforce and harmonious employment relations, improvesafety conditions and promote a healthy lifestyleamongst its employees and subcontractors.The Group also respects employee rights bybanning discrimination in the workplace. As part ofits management of human resources to achieve theseobjectives, the Group considers the business cycle,environmental factors, socio-economic and politicalfactors as well as the expectations of its employeeson both a medium and long-term basis. It also aims,as far as possible, for labour to be sourced locally inorder to ensure that the benefits of its operations andprojects are shared with the communities in whichthese are located.In order to achieve this, AMSA, encourages the miningdivision to develop suitable policies, guidelines andmanagement procedures in line with the overallcorporate vision outlined in its manual of generalmanagement policies for human resources. In 1997,AMSA implemented a Labour Control System for allits operations and projects and which involves periodicreviews and audit of labour practices. The Group keepsits human resource systems and procedures underregular annual review and identifies and considerslegal, union and remuneration issues. This reviewlooks three years ahead to identify the challengesfacing each company and an action plan is thenformulated and updated regularly by seniormanagement.El Tesoro became the first company in Chile to signan agreement with the National Service for Women(“SERNAM”) to implement a series of actions intendedto promote gender equality in the workplace in 2007as part of the Group’s non-discrimination objective.Similarly, during the development of the Tesoro North-East project, El Tesoro incorporated workers fromCalama, Antofagasta and Sierra Gorda in its operationsin order to ensure that employment opportunities weremade available locally. Employing a local workforcerequired an intensive training programme at theTechnological Mining Centre to improve its abilityto operate heavy equipment safely. Many of the 80participants on the programme were later employedas fulltime workers at El Tesoro and Esperanza. TheEsperanza project wants to ensure that at least 30%of workers in its construction and operations areaswill be from the Antofagasta region. In order tocreate a qualified labour force that can achieve thehigh standards required by the project, a trainingprogramme will be established for approximately1,000 people including school leavers.In 2007, the Group employed an average of 3,323employees. An analysis by business segment isprovided in Note 7(a) to the financial statements.Shift meeting at El Tesoro.44Antofagasta plc Annual Report and Financial Statements 2007
Compensation, recruitment and retentionCompetition for labour continues in Chile and theGroup offers competitive remuneration packages tosecure and retain good employees. All the Group’soperations seek to encourage their employees toachieve high performance levels with salary increasesand bonuses linked to productivity and individualperformance. In addition to the normal yearly salarysurveys, a detailed review of the compensationstructure was carried out during 2007 to ensurethe competitiveness of the packages offered.The recommendations resulting from this reviewwill be implemented during 2008.As explained above, the Group seeks where possibleto recruit employees from communities near itsoperations and from universities and technicalcolleges. Recruitment and selection processes areunder constant review in view of the continued tightlabour market to ensure that the right calibre of staffcan be recruited. During 2007, a study was carriedout amongst employees to identify the main factorsaffecting employee retention and a number ofinitiatives will be implemented in 2008 to meetemployees’ expectations.beginning of the programme over 2,000 proposalshave been submitted by employees of which360 have been implemented. At Michilla, workers’skills are assessed in relation to their employmentrequirements through a Labour Capabilities Unit,and a training programme is designed based onany gaps identified. El Tesoro has also developeda training plan involving both internal and externalcourses, which are regularly assessed for quality.UnionsThe Group respects freedom of association by itslabour force and union membership in the Group’scompanies exceeds 80%. Collective bargainingprocesses have resulted in collective employmentagreements establishing remuneration levels as wellas terms and conditions of employment. The Groupuses a model for managing its relationship with tradeunions which is regularly reviewed and a monthlysurvey summarises relevant issues which have arisenin the previous month. There are eleven labour unionsrepresenting employees within the Group: four atFCAB, one at Michilla, two at El Tesoro, two atLos Pelambres and two at ADASA.CSR REPORTGroup aggregate remuneration is set out in Note 7(b)to the financial statements.Career development and trainingCareer development is important to the Group’soperations which offer employees new opportunitiesto achieve higher levels of seniority and remunerationthrough internal recruitment processes andcertification of abilities. Regular training programmesallow employees, contractors and sub-contractors toupdate their skills and abilities as well as promotinggood working relationships. Courses have includedrisk prevention, environmental protection, qualityand occupational health, technology, businessculture and management philosophy.At Los Pelambres, the System to Reward Creativityand Innovation (“SRCI”) programme has beenapplied since 2004. On a yearly basis, the programmeencourages employee participation through thesubmission of innovative proposals to improve thecompany’s operations in different areas. Since theTraining at Salamanca near Los Pelambres.Antofagasta plc Annual Report and Financial Statements 2007 45
Page 1: ANTOFAGASTAAnnual Report and Financ
Page 4 and 5: Highlights• Net earnings up 2.1%
Page 6 and 7: Highlights continued471.8 498.4 467
Page 8 and 9: CHAIRMAN’S REVIEWChairman’s Rev
Page 12 and 13: A R G E N T I N ACHAIRMAN’S REVIE
Page 24 and 25: Financial ReviewFINANCIAL REVIEWBas
Page 26 and 27: Financial Review continuedFINANCIAL
Page 38 and 39: Corporate Social ResponsibilityCSR
Page 41 and 42: TransportationThe Antofagasta Railw
Page 43 and 44: Other international and national st
Page 45: Organisations of which Group compan
Page 49 and 50: CSR REPORTEl Tesoro promotes a cult
Page 51 and 52: • health and safety issues are mo
Page 53 and 54: Native vegetation at the Choapa Val
Page 55 and 56: existing naturally in the Andean re
Page 57 and 58: saponaria), Espino (Acacia caven),
Page 59 and 60: • The “Together We Can Grow Mor
Page 61 and 62: Awards and RecognitionDuring the ye
Page 63 and 64: special dividend. The total cost of
Page 65 and 66: EnvironmentThe Group seeks to ensur
Page 67 and 68: Antofagasta Railway Company plc (ra
Page 69 and 70: Information and professional develo
Page 71 and 72: Company, for safeguarding the asset
Page 73 and 74: Statement of Compliance withthe Det
Page 75 and 76: Non-Executive Directors’ feesThe
Page 77 and 78: Audited InformationDirectors’ rem
Page 79 and 80: Basis of audit opinionWe conducted
Page 81 and 82: Consolidated Balance SheetAt 31 Dec
Page 83 and 84: Consolidated Statement of Changes i
Page 85 and 86: 2 Principal Accounting Policiesa) A
Page 87 and 88: 2 Principal Accounting Policies con
Page 95 and 96: 4 Revenue and Total Profit from Ope
Page 97 and 98:
5 Segment Information continueda) P
Page 99 and 100:
5 Segment Information continueda) P
Page 101 and 102:
6 Profit for the YearProfit for the
Page 103 and 104:
8 Net Finance IncomeNet finance inc
Page 105 and 106:
11 DividendsAmounts recognised as d
Page 107 and 108:
13 Property, Plant and EquipmentLan
Page 109 and 110:
16 Investment in Associate2007 2006
Page 111 and 112:
19 Inventories2007 2006US$m US$mRaw
Page 113 and 114:
22 Borrowings continued(ii)Other lo
Page 115 and 116:
22 Borrowings continuedd) Maturity
Page 117 and 118:
24 Financial Instruments and Financ
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
26 Deferred Tax continuedAt 31 Dece
Page 129 and 130:
29 Minority InterestsThe minority i
Page 131 and 132:
33 Notes to the Consolidated Cash F
Page 133 and 134:
37 Related Party Transactions conti
Page 135 and 136:
38 Contingent Assets and Contingent
Page 137 and 138:
40A Basis of Preparation of the Bal
Page 139 and 140:
40D Subsidiaries continueda) Invest
Page 141 and 142:
40G Independent Auditors’ Report
Page 143 and 144:
Dividends to Ordinary ShareholdersD
Page 145 and 146:
Mining Production and Sales, Transp
Page 147 and 148:
A ‘Measured Mineral Resource’ i
Page 149 and 150:
Notes to Ore Reserve and Mineral Re
Page 151 and 152:
GDPGross Domestic Product.Governmen
Page 153 and 154:
TC/RCTreatment and refining charges
Page 155 and 156:
Directors and AdvisorsDirectorsJ-P
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