Annual Report 2007 - Antofagasta plc

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Corporate Social Responsibility continuedand their families, local residents, representatives ofprofessional organisations and regional authorities.CSR REPORTThe Minera Los Pelambres Foundation supports agriculturaldevelopment in the Choapa Valley.nationwide by sponsoring performances in oneof Antofagasta’s theatres together with AMSA,Esperanza and Michilla.Michilla works closely with the communities ofMejillones and Caleta Michilla, a small communitydependent on fishing. During 2007, the companysupported Caleta Michilla by providing drinking water,electricity, and running an emergency service forhouseholds. Activities developed in 2007 includedguided visits to its operations and a workshop holdingdiscussions on alcohol and drug abuse. The companyhas continued to strengthen its relationship with otherlocal stakeholders by participating in exhibitions andevents locally.Following a serious earthquake in northern Chile inNovember 2007, Michilla, El Tesoro and Esperanzawere all involved in helping the people and townsaffected by providing food, water and heavy dutyequipment.Although ADASA’s prime objective is to provide goodquality water to its customers it fully recognises itsrole in the supply and value chains in the area. In thisregard, ADASA has established a supportive networkwith 16 educational bodies, health and municipalauthorities and the National Environment Commission(“CONAMA”). The network has developed a programmecalled “Culture for Life in the Desert”, designed tokeep the local communities informed on health issuesand environment awareness. Public meetings andseminars are held regularly, attended by employeesIn 2004 the FCAB started programmes and projects forcomputer skills and basic literacy for its employees andtheir families and local communities and in August2005 it started the Cyber Train project which wasorganised and funded by the Andrónico Luksic AbaroaFoundation. The joint project has contributed to thedevelopment and culture of vulnerable areas of theAntofagasta community, and was designed to improveopportunities for disadvantaged people. The CyberTrain itself is made up of passenger coaches datingfrom the 1900s which have been modified andequipped with networked computers and broadband toprovide a virtual library and cultural centre. Technicalsupport and supervisory help is provided and beingmobile, the Train reaches out to the wider community.It has three modules:• electronic literacy – basic training in surfing theinternet, using email, chat rooms and wordprocessors;• reading development – designed to motivate electronicand traditional reading and use of library facilities; and• cultural development which encourages people tosurf the net and visit virtual museums and galleries.The FCAB was the first company to be awarded theDigital Literacy Hallmark prize awarded by the ChileanNational Training and Employment Service (SENCE) inthe Antofagasta region. During 2006, the Cyber Trainexceeded its targets as children and adults tookadvantage of its computer and educational services.These services were further developed in 2007to reach a wider audience in neighbouring towns.The FCAB also equipped the Secondary School inMejillones with computers and awarded studentgrants for further education at universities.The FCAB’s sponsorship of cultural and artistic activityincludes a book fair and cinema festival as well asconcerts and plays. Sporting activities have also beenorganised for the local community and for children.During 2007, the FCAB opened the doors of itsHeritage Museum to the local community whichhas been widely appreciated.58Antofagasta plc Annual Report and Financial Statements 2007
Awards and RecognitionDuring the year, many of the Group’s operationsreceived awards and or recognitions for theircontributions to good management, health, safetyand the environment at both regional and nationallevel. These included:AMSA• AMSA’s Vice President of Operations, Sr. JorgeGómez, was awarded the Distinguished ProfessionalPrize by the Institute of Mining Engineers of Chile.• In 2007, AMSA received The Award of Honour andother awards for Effective Action, Merit, BusinessVision and Effective Executive from the ChileanSecurity Association. The award recognised thecompany’s efficiency and active participation incontrolling risks and the prevention of accidentsand illness in the workplace.Los Pelambres• Los Pelambres received an award for the fifth timefrom the Servicio Nacional de Geología y Minería(“Sernageomin”), for Mining Safety since thebeginning of its operations.• The Palladium Group nominated Los Pelambres tothe Balanced Scorecard Hall Of Fame For ExecutingStrategy for achieving outstanding performanceresults using the Balanced Scorecard (“BSC”).• Los Pelambres was awarded the Alberto HurtadoCruchaga Prize by the Press Club. The award isgiven to individuals and institutions in recognition oftheir service to the community. Los Pelambres wasidentified as a leader and an example in the area ofcorporate social responsibility. The Prize recognisedthe company’s contribution to improving the qualityof life and employment conditions in the IV Region.• It also received the National Safety Council andExcellence in Risk Prevention Awards from theNational Safety Council of Chile.El Tesoro• El Tesoro received the CORESEMIN (ComitéRegional de Seguridad Minera) Award 2007 for itssafety performance and received The Excellence inRisk Prevention and National Safety Council Awardsfor its administrative and support areas. Thecompany was also awarded The Effort in RiskPrevention Prize for its subcontractor companieswho achieved a 25% reduction in injury rates.FCAB• FCAB received the SCM El Abra Prize for outstandingmanagement in safety and occupational health in theworkplace in respect of the previous year.ADASA• ADASA gained recognition from the National SafetyCouncil and Mutual de Seguridad of Antofagastawith awards for safety.• The Antofagasta Association of Industrialistsawarded the Environmental Management Awardin recognition of the company’s achievement inreducing the arsenic content in drinking waterin the II Region.CSR REPORTADASA supplies drinkingwater with an arseniccontent of less than0.01 mg per litre, withinguidelines set by theWorld Health Organisationand well within the localhealth authority’s limitof 0.03 mg per litre.Antofagasta plc Annual Report and Financial Statements 2007 59
Page 1:
ANTOFAGASTAAnnual Report and Financ
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Highlights• Net earnings up 2.1%
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Highlights continued471.8 498.4 467
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CHAIRMAN’S REVIEWChairman’s Rev
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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 and 46: Organisations of which Group compan
Page 47 and 48: Compensation, recruitment and reten
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: • The “Together We Can Grow Mor
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
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19 Inventories2007 2006US$m US$mRaw
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22 Borrowings continued(ii)Other lo
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22 Borrowings continuedd) Maturity
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24 Financial Instruments and Financ
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26 Deferred Tax continuedAt 31 Dece
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29 Minority InterestsThe minority i
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33 Notes to the Consolidated Cash F
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37 Related Party Transactions conti
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38 Contingent Assets and Contingent
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40A Basis of Preparation of the Bal
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40D Subsidiaries continueda) Invest
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40G Independent Auditors’ Report
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Dividends to Ordinary ShareholdersD
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Mining Production and Sales, Transp
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A ‘Measured Mineral Resource’ i
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Notes to Ore Reserve and Mineral Re
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GDPGross Domestic Product.Governmen
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TC/RCTreatment and refining charges
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Directors and AdvisorsDirectorsJ-P
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