Sustainability Report
Contents 2. SUSTAINABILITY REPORT. 2012
04. Message From the Chairman of the Board o8. Message from the General Manager 12. Our Company 14. Mission, Vision and Values 16. Safety, Occupational Health, Environment and Quality Policy 18. Organizational Chart 20. About this Report 22. Ecometales and the Sustainability of the Mining Industry 34. Operations and Projects 42. Sustainability Performance 44. Economic and Social Aspects 52. Safety and Occupational Health 58. Environment 66. GRI Index
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Message from the Chairman of the Board 4. SUSTAINABILITY REPORT. 2012
“2012 was a very intense and dynamic year for EcoMetales. We launched new operations and began to implement projects that we had defined as strategic”.
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I am particularly pleased to present this Sustainability Report which, as the second to be published by EcoMetales (ECL), confirms our commitment to making mining in Chile an ever more sustainable activity. 2012 was a very intense and dynamic year for EcoMetales. We launched new operations and began to implement projects that we had defined as strategic. We are particularly proud to have started operation of the Arsenic and Antimony Abatement Process. Developed and patented by ECL, this is the world’s largest facility for the precipitation and deposit of arsenic as scorodite, the most stable industrial form of this element. Recovery of copper and molybdenum from the tailings of the Chuquicamata mine at our Mining Waste Treatment Plant was also a new activity for ECL and a challenge as regards obtaining value from an effluent with very low metal concentrations. Without doubt, the proper disposal of mining waste and, in particular, hazardous waste is emerging as a critical issue across all Chilean industries. Mere compliance with regulation may, indeed, not suffice. Today, companies must engage with employees and communities that have higher expectations, are more aware of their rights and are less tolerant of the inconveniences, costs and risks often caused by the presence of waste in the environment. Our ability to respond to these new conditions may determine the future viability of access to the resources Chile requires for its development. We hope that this Report will help to show the efforts that Chilean mining companies are making to address the safe and sustainable management of their waste in a responsible, efficient and transparent manner. For EcoMetales, the subsidiary of a state company, this is a key reason for preparing this Report, which today we make available to all Chileans.
Gerhard von Borries Chairman of the Board of EcoMetales
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Message from the General Manager 8. SUSTAINABILITY REPORT. 2012
“The start of operations of our Arsenic and Antimony Abatement Process in 2012 was a milestone in the history of EcoMetales”.
9. SUSTAINABILITY REPORT. 2012
This is the second consecutive year that EcoMetales has presented a Sustainability Report, providing information on the company’s environmental, economic and labor performance. In recent decades, demand for a more sustainable management of industrial activity has been one of the prime concerns of the international community. This has led to the adoption of ever stricter regulation and controls which, today, are the standards which all Chilean industry must comply with. Neighboring communities and citizens in general are less willing to accept what they perceive as costs without clear benefits. In 2012, Chile experienced a number of conflicts between communities and companies relating to the environmental impacts of the construction of projects and the operation of plants. In the case of existing operations, one of the recurrent issues has been the effect that waste, whether in the form of gases, liquids or solids, can have on the environment and human health. Pressure for methods to reduce, eliminate or safely dispose of industrial waste is increasing and becoming a key factor for the viability of projects and operations. In commercial terms, restrictions on international trade in mining products have toughened, often associated to the presence of large amounts of impurities. In addition, considerations related to a product’s life cycle, including potential accusations of environmental dumping, are pushing consumers to choose raw materials with a more sustainable profile. These are signs of what is coming, and it would be a serious mistake not to pay attention. The start of operations of our Arsenic and Antimony Abatement Process in 2012 was a milestone in the history of EcoMetales. Through this industrial process, unique in the world, our company has consolidated its position as one of the most important technological and productive players in Chile’s mining environmental industry. It represents decisive progress in what we have defined as our mission: to be a world leader in environmental solutions for mining waste, making its treatment economically viable through the recovery of metals.
Iván Valenzuela Rabí General Manager of EcoMetales
This new process allows us to offer clients the final disposal of their waste in a way that is safe for the environment and human health. In its first year of operations, this plant generated over 1,800 tonnes of scorodite, a stable compound which contains the arsenic and antimony and is stored in a duly authorized deposit.
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In 2012, EcoMetales also expanded its treatment of other waste to include the effluent of the Chuquicamata Division’s concentrator plant, seeking to recover the copper and molybdenum which, without a special technological effort, would be lost. In addition, we worked on the development of environmental projects that, once implemented, will be very useful for other Codelco Divisions such as El Teniente and Andina. It is in this context of expansion and dynamism that, with legitimate pride in its employees and collaborators, EcoMetales presents to Chileans its second Sustainability Report as a sign of the company’s commitment to transparent reporting of its activities and to the sustainable development of mining in Chile.
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Our Company Founded in 2007, EcoMetales (ECL) is a subsidiary of Codelco Technologies Ltd. Its predecessor, Alliance Copper, founded in 2000, was a joint venture between Codelco and BHP Billiton.
The purpose of EcoMetales is to develop environmentally sustainable solutions for the treatment of the different types of waste generated by the mining industry, seeking to recover metals in order to enhance the activity’s economic viability. To this end, the company focuses on: 1) Services for mining projects 2) Plant operation 3) Marketing of products produced by the plants it operates As established in its by-laws, EcoMetales Ltd. is administered by a Board of Directors, comprising six members appointed by Codelco, who do not receive remuneration on this account. No transactions take place between EcoMetales and its directors. The Board receives support from a Management Committee and a Technical Committee whose members, similarly, do not receive remuneration on this account. These Committees are chaired by a company director and comprise one or more directors or the persons they deem appropriate. The Committees are instructed by the Board of Directors to provide the General Manager with advice and support on the matters for which they were established. The General Manager is, in turn, charged with administering and representing the company in all types of business and acts.
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The General Manager and EcoMetales’s other executives receive an annual bonus based on compliance with targets and objectives agreed with the company’s administration. In 2012, EcoMetales processed copper flue dust and other waste from Codelco’s Chuquicamata, Potrerillos and Ventanas smelters. The copper recovered from these materials was piped as a solution (PLS) to the Chuquicamata Division. In 2012, under Resolution N° 687/2012, EcoMetales was granted authorization to treat hazardous copper-containing waste from sources other than those already authorized in Resolution N° 50/2011. In addition copper cement and non-hazardous waste were included for the purpose of recovering copper from them. This positions EcoMetales as a leader in Chile as regards environmental permits and the treatment of these types of waste. However, the most important milestone for EcoMetales in 2012 was, without doubt, the start of operations of the Arsenic and Antimony Abatement Process (PAAA).Through this innovative technology, it is possible to remove an important part of the arsenic and antimony contained in copper flue dust and transform it into scorodite, a highly stable compound that is then stored without risk to human health or the environment. In this way, EcoMetales fulfills its twofold objective of recovering value from waste while, at the same time, reducing the content of critical elements that pose a risk to the sustainability of the copper and molybdenum production process. EcoMetales’s center of operations and plants are in the city of Calama in the Antofagasta Region while its administration and engineering team are located in the city of Santiago in the Metropolitan Region.
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ECOMETALES
MISSION
TO BE A WORLD LEADER IN ENVIRONMENTAL SOLUTIONS FOR MINING WASTE, ADDING VALUE THROUGH THE RECOVERY OF METALS.
VISION
TO BECOME ONE OF THE FIVE LEADING COMPANIES IN THE WORLD IN ENVIRONMENTAL SOLUTIONS FOR MINING WITHIN THE NEXT FIVE YEARS.
VALUES
EcoMetales aims to develop a corporate culture characterized by: · Respect for life and people · Social responsibility · Orientation to achievement · Team work · A gratifying work place
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Safety, Occupational Health, Environment and Quality Policy. EcoMetales is committed to seeking environmental solutions for its clients through excellence in management of safety, occupational health, the environment and the quality of its processes. No production target will, therefore, justify a failure to protect its workers from uncontrolled risks and all the company’s activities will be carried out in a framework of respect for and protection of the environment. Our Undertaking: 1. To have in place an integrated safety, occupational health, environmental and quality management system in each of our activities, in a framework of preventive action and continuous improvement. 2. To identify, evaluate and control the risks for the health and safety of people, the environment and physical assets that may arise from our operations, products or services. 3. To comply with the existing legislation and voluntary commitments as regards safety, occupational health, the environment and code of conduct. 4. To establish procedures to ensure appropriate preparation and response to emergency situations. 5. To incorporate the best available and economically viable technologies that minimize the generation of polluting emissions and waste while also fostering the recycling of waste or guaranteeing its safe final disposal. 6. To promote the efficient use of resources, particularly energy and water. 7. To foster the quality of processes, operational continuity, the protection of physical assets and the satisfaction of our clients. 8. To maintain transparent, trustworthy and opportune communication with workers, contractors, suppliers, clients, authorities, the community and other stakeholders in order to build mutually beneficial relations of trust. 9. To require that contractors, collaborators and suppliers manage the risks associated with their activities, products and services in a way consistent with EcoMetales’s safety, occupational health, environment and quality policy. 10. To publicize and promote these undertakings so that they are known and adopted by workers, contractors and suppliers. In addition, they will be publicized among clients, members of the community and other stakeholders.
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The HSEQ Policy is Presented In January 2012, EcoMetales’s General Manager, Iván Valenzuela, headed a ceremony at the Calama Dust Plant in which the company unveiled its new Safety, Occupational Health, Environment and Quality (HSEQ) Policy. Valenzuela noted that, “our aim is to permanently have zero accidents and zero workers exposed to impurities and that implies always being alert. That is the way in which living beings react to danger but warning systems can switch off and this is why we must always be learning and improving”. During the ceremony, the company’s Sustainability Manager, Pablo Medina, also announced a program setting out the year’s principal activities and undertaking:
• Visible Leadership campaign;
• implementation of a register of lost days;
• definition in conjunction with Codelco of Arsenic Control Standards;
• preparation of safety, occupational health and environmental risk matrices;
• Rules for Life campaign and Commitment to Safety training;
• HSEQ training;
• reporting of unsafe conditions and conduct;
• implementation of Job Safety Analysis (JSA) as an effective management tool;
• plan of compliance with environmental, safety and occupational health undertakings;
• presentation of 2011 Sustainability Report.
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Management Committee
Board of Directors
María José Luque / Comunications
Iván Valenzuela / General Manager
Technical Committee
Organizational Chart
2012 18. SUSTAINABILITY REPORT. 2012
Cristian Quinzio / Legal Advisor
EcoMetales completes the mining production cycle. it takes charge of the industry’s waste, developing environmental solutions that permit the recovery of metals.
Carlos Rebolledo / Business Development
Fernando Navas / Administration and Finance
Héctor Vera / Management Control and Finance
Jan Smit / Technology
Italo Tapia / Projects
René Torres / Dust Treatment Plant Jorge Igor / Plants Manager Ramón del Río / Mining Waste Treatment Plant
Pablo Medina / Sustainability
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About this Report This 2012 Sustainability Report provides information about EcoMetales’s environmental, economic, labor and community relations performance between January 1 and December 31, 2012. It was prepared in accordance with the protocols of the Sustainability Reporting Guidelines (October 2006) of the Global Reporting Initiative (GRI) and the Mining and Metals Sector Supplement (2010). This Report includes information about the operations managed directly by EcoMetales. Under the GRI G3.1 protocols, this Report complies with Application Level B. The table below, published by the GRI, sets out the application level criteria for the different sections of a Sustainability Report. GRI G3.1 Report Application Level
For comments and queries about this Report or for further information, please contact: Sustainability Management EcoMetales Limited Nueva de Lyon 072, Providencia, Santiago, Chile Road to Radomiro Tomic, km. 16 ½, Calama Chile Telephone: (56-2) 2378 4100 - (56-55) 2320 950 comunicaciones@ecometales.cl www.ecometales.cl
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EcoMetales
and the Sustainability of the mining Industry
Mining in the 21st Century In the 21st century, the mining industry faces an ever more complex situation as regards sustainability and, particularly, waste disposal, management of the hazardous content of waste and products and the depletion of resources. Ore grades in copper mining are relatively low and, as a result, significant volumes of waste are generated for each unit of copper produced and its disposal tends to be very environmentally invasive. Although the low toxicity of massive mining waste (for example, tailings) means that its treatment tends to be subject to special regulation, public perception of its impact on the environment and the related risks is, in general, very negative. Some Chilean companies have, in the face of growing disposal difficulties, even sought authorization to dispose of tailings in the sea but this also raises objections. The composition of waste, moreover, tends to be highly variable and heterogeneous, posing regulatory and technological challenges for its treatment. A very heterogeneous substance may have different types of hazardous characteristics, sometimes related to very small quantities of a particular chemical element, that imply regulatory restrictions on its transport, management and disposal as well as the additional costs of protecting the environment and workers’ health.
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From a technological standpoint, heterogeneity also represents a challenge. For efficient technological treatment, processes should ideally be as standardized as possible but this calls for minerals whose mineralogical characteristics show little variation, a situation that, by definition, is almost impossible to maintain over time. The mining sector is, moreover, under increasing pressure to develop indicators of the depletion of non-renewable resources such as the metals contained in minerals. Although there are solid arguments against catastrophic predictions of their exhaustion in the short and medium term, some groups nonetheless highlight this as one of the most critical issues when evaluating the mining industry from the viewpoint of its sustainability. The challenges faced by the mining industry in the 21st century as regards waste can, in other words, be summed up as: • to reduce or minimize its volume; • to reduce, eliminate or stabilize its toxic components; • to be more efficient in recovering metals with commercial value. For EcoMetales, the challenge is to implement technological solutions that transform these challenges into opportunities.
Regulatory Outlook The regulatory situation for the mining industry has increased in complexity, with ever more restrictive rules that reflect the pressure of a more outspoken public opinion as well as increasing international requirements. Chile’s accession to the Organization for Economic Co-operation and Development (OECD), as a country that aspires to be a developed nation in a world that is more globalized and aware of the negative externalities of industrial activities, means that it must improve the way it addresses environmental challenges and be creative in its response to the changing and more restrictive context in which it operates.
Chilean Regulation • Regulation on the Management of Hazardous Waste Chile signed the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal in 1990 and, subsequently, went on to develop its own internal regulation. This process, which took several years, resulted in the 2004 Regulation on the Management of Hazardous Waste, which defines the criteria used in Chile to classify waste as hazardous and regulates issues such as its storage and disposal. The system is based on two lists which divide waste into hazardous or non-hazardous depending on its specific composition. Waste can, however, be excluded from the hazardous list if it can be shown that its composition does not represent a hazard to human health or the environment.
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The Regulation establishes very demanding requirements for the storage and disposal of hazardous waste, providing companies with a powerful incentive for seeking ways to minimize or eliminate the hazardous components of the waste. • New Regulations Additional regulations that have been introduced more recently have important implications for the management of hazardous waste as described below. • Mine Closure Law In October 2011, Law N° 20.551 came into force, regulating the closure of mining installations and sites in Chile and requiring that all present and future mining projects have a closure plan. This law seeks to prevent, minimize and control the risks and impacts of a mine closure for people and to mitigate the operation’s environmental impact. In a key aspect of this legislation, it seeks to safeguard the physical and chemical quality of closed mine sites. Although related regulation with technical details of the law’s requirements on matters such as ground and water quality is still pending, it is clear that it implies important pressure for the sustainable management of the volume, location and characteristics of waste generated by new mining projects as well as the management of that already generated by existing operations. The magnitude of the task faced by the Chilean mining industry in drawing up and, in the longer term, implementing closure plans is illustrated by the fact that, each year, the country’s smelters generate over 3 million tonnes of slag and over 100,000 tonnes of copper flue dust. • Bill on Smelter Emissions Norms In 2012, a public consultation process took place for the bill that will establish new emission standards for the country’s seven smelters, introducing stricter standards on emissions of SO2, particulate matter, mercury and arsenic. (It would also apply to other sources of arsenic emissions.) Scheduled to come into force during 2013, it would significantly reduce the amount of sulfur dioxide, arsenic and particulate matter that smelters are currently allowed to emit and, for the first time, set a limit on their mercury emissions. The arsenic contained in the concentrate processed by a smelter is distributed across the different products, byproducts, waste and emissions of the smelter itself and its related installations (for example, acid plants). If the arsenic in gas emissions is reduced, it will simply increase elsewhere as, for example, in flue dust and slag. Moreover, its presence in commercial products is heavily penalized by the market.
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Commitment to Safety Training Almost 200 people participated in the six meetings held on May 14 and 15 to mark the launch of the Commitment to Safety Training Campaign. Its central message is that “If You Work Safely, You Go Home Safely�. The meetings were attended by 165 employees of EcoMetales and collaborator companies while a further 30 employees in Santiago followed the meetings by videoconference. The plant was halted in order to bring all these employees together to discuss issues related to safety and health.
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Many Chilean mines have a high arsenic content and this also shows a tendency to increase, particularly in those that are older and deeper. A stricter norm on the quality of smelters’ gas emissions will, therefore, be reflected in an increase in the arsenic content of the waste they generate. This will call for technologies to stabilize the impurities it contains in order to minimize the risks to the environment and human health.
International Regulation Basel Convention Internationally, the most important regulatory framework on waste is the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal which was adopted in 1989. With the modifications introduced by subsequent amendments, it regulates the movement of waste between countries and has been signed by the vast majority of UN member states, including Chile. One of its main objectives is to prevent the transfer of hazardous waste to countries without the capacity for its proper treatment. To this end, it defines the criteria for classifying waste as hazardous and establishes a system of two Waste Lists, depending on the specific composition of the waste in each shipment (see Chilean Regulation). It also establishes a complex system of authorizations for the movement of hazardous waste across borders and, in the case of some types of waste, forbids their transfer to certain countries. In Chile, the Convention is incorporated into the domestic legislation. New Regulations on the Classification of Chemical Substances In recent years, the regulatory framework for evaluation of the hazard represented by chemical substances and control of their risks has undergone a series of very dynamic changes that have very important implications for metallic mining. The changes include: • UN Globally Harmonized System of Classification and Labelling of Chemicals (2011, First Edition). Known as the GHS, this seeks to harmonize globally the way in which the hazards represented by chemicals are evaluated and communicated as well as to provide tools for their control. Among other aspects of the System, it introduced for the first time specific criteria for determining the hazards to aquatic life, a very sensitive issue as regards metals. • EU Regulation on the Classification, Labelling and Packaging of Substances and Mixtures. Through this Directive, referred to as the CLP (2008), the European Union implemented the GHS in its territory, adopting practically the same categories and criteria as the UN and making self-classification compulsory for all EU importers and manufacturers of chemicals.
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International Technological Cooperation During a visit to Chile in April 2012, leading representatives of the Beijing Research Institute of Mining & Metallurgy (BGRIMM), China’s most important technological center for non-ferrous metals, toured EcoMetales’s plants in Calama. This was a return of a visit to China by Chilean executives in 2011. The two entities took the opportunity to sign a cooperation agreement for the development of new technologies for the recovery of metals and generation of value from the waste of large and midsized mining companies.
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• EU Regulation of Registration, Evaluation, Authorization and Restriction of Chemical substances, REACH (2008). This regulation, which applies to all chemical substances manufactured in or imported into the EU, complements the CLP in minimizing the risks associated with these substances. In addition, it includes the possibility of prohibiting trade in some substances within the EU if they are considered very hazardous. • New Annex V of the MARPOL Convention (January 2013). In 2012, the International Maritime Organization approved an amendment to the Convention for the Prevention of Pollution from Ships (known as the MARPOL Convention). This particular aspect of the Convention applies to all solid substances transported by sea in bulk form and defines the criteria for classifying a substance as “harmful to the marine environment”, establishing tight restrictions on the disposal of water that has been used to wash a ship’s hold. A number of copper mining products and byproducts will be subject to these restrictions, limiting their movement in international markets or increasing the related costs. These trends in international regulation point to increased restrictions on the transport of some substances in the near future, making their domestic processing ever more attractive either to reduce the content defined as hazardous or to facilitate their safe disposal. Content that includes metals such as copper, cobalt, arsenic, lead and cadmium is particularly critical in the case of the regulation of sea transport since it means that, at more than certain concentrations, the product is classified as toxic for aquatic life.
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All these restrictions are already having an impact on Chile’s mining industry. Within the next few years, for example, Chile’s Health Ministry expects to implement the GHS. Chile is, moreover a member of the International Maritime Organization as well as a signatory of the MARPOL Convention and is, therefore, obliged to adhere to the new requirements for management of water used to wash ships’ holds. Similarly, companies that export to the EU must comply with REACH and the CLP, either as they apply to clients or because, in some cases, they have registered their products under REACH through representatives in the EU. It is ever more common for the standards which apply to a material’s end use to affect the way in which the raw materials were produced.
Waste and Communities In 2012, waste management was the cause of a number of conflicts between communities and companies, bringing to the fore the issue of the latter’s license to operate. In other words, an aspect of a business - waste management - that could in the past have been considered marginal may today be a make-or-break issue for a new project or result in the closure of an existing operation. Today, communities - however small or of little relevance they may seem - are more empowered and aspire to ever higher standards of quality of life. It no longer suffices for a company to offer job opportunities or options for mitigating its impacts and, instead, it must strive to minimize or eliminate these impacts. In this context, two critical issues for the mining industry are air emissions and the disposal of solid and liquid waste. In both cases, the potential impact on the quality of life of nearby communities depends on their chemical composition.
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This, in turn, raises the issue of the important levels of arsenic found in mines in northern Chile. This may form arsenic oxides which can cause cancer in human beings. In Chile, there are strict limits on the presence of arsenic in both smelter emissions and liquid effluent but it is nonetheless an argument often used by some stakeholders to criticize the mining industry. Reducing arsenic in emissions, products and waste is a technological challenge that it is feasible to resolve. As well as being more empowered, communities today demand greater transparency and information about projects that can affect their quality of life. We can safely say that the future of Chile’s mining industry will depend to a large extent on how it addresses and resolves the challenges posed by this new situation. In the coming years, a license to operate and growing regulatory requirements may emerge as the key obstacles to gain access to resources.
EcoMetales: Mission and Opportunities The mission of EcoMetales Limited is to become a world leader in environmental solutions for the abatement of impurities and the recovery of metals from mining waste. It was to resolve these problems that the company was founded in 2007. In 2012, EcoMetales expanded its portfolio of operations and projects. As discussed above, the waste generated by copper mining, much of which is hazardous, has a very variable and heterogeneous composition, posing important technological and regulatory challenges. These same characteristics, however, also represent a business opportunity
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in terms of the recovery of metals with commercial value, thereby helping companies to make better use of the resources they exploit. In some cases, the necessary technology may exist but not be economically viable while, in others, it may simply not exist, calling for innovation and the development of new solutions. Due to the pressures of regulation and communities, the situation faced by mining companies in the 21st century has changed. Technological options for processing waste which did not previously appear to be economically sustainable may now be not only viable but, in some cases, the only option if a project is to be accepted by both the authorities and other stakeholders, including nearby communities. EcoMetales’s mission and business are a response to these pressures, challenges and opportunities. In Chile, we have pioneered the reprocessing of mining waste and the recovery from it of metals with commercial value as well as the stabilization of hazardous metallic waste for its safe disposal. In 2012, we started operation of our Arsenic and Antimony Abatement Process which will allow us to provide our clients with a cleaner and safer product. The diagrams on pages 32 and 33 illustrate the processing of copper minerals in Chile, identifying the principal waste and emissions generated. These diagrams, in other words, define the universe of opportunities for EcoMetales.
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Main products and process waste from copper production
Sulfides - Pyrometallurgical Process Waste
Products
Mine Waste rock
Ore Concentrator tailings
Effluents
Concentrate Smelter Sulfide gases
Slag
Acid plant
Copper flue dust
Anodes
Sulfuric acid
Refinery Effluents
Electrorefined cathodes
Copper-rich solutions (PLS)
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Oxides - Hydrometallurgical Process Products
Waste
Mine Waste rock
Ore Leaching Leaching waste rock
Concentrate
Slag
Solvent extraction
Effluents
Copper-rich solutions (PLS) Electrowinning Effluents
Copper-rich solutions (PLS) Electrowinning-obtained cathodes
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Operations and Projects
Copper Flue Dust Treatment Plant (PTPA) Since 2007, EcoMetales’s principal line of business has been the treatment of flue dust in order to recover the copper it contains. Copper smelters produce significant volumes of gas emissions which, by law, must be kept under maximal levels set for each smelter. These emissions are reduced mainly through their treatment in acid plants with sulfuric acid as their end product and an effluent as waste. Before being processed in the acid plant, the gases are submitted to treatment to extract their particulate matter or, in other words, the flue dust which, in Chile, typically contains copper (3-30%), arsenic (1-17%), sulfur (0.8-13%), bismuth (0.1-0.9%), lead (0.2-20%), iron (0.5-12%) and antimony (0.1-1.5%). Similar dust is also generated in other gas-cleaning facilities such as metallic concentrate roasters. The amount of copper contained in this dust is significant and, between 2007 and 2012, EcoMetales recovered over 54,000 tonnes of copper from some 327,000 tonnes of dust and waste.
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FURE Environmental Improvement In April 2012, a new system was inaugurated to reduce pollution caused by the loading and unloading of copper flue dust at the Smelter and Refinery (FURE) complex of Codelco’s Chuquicamata Division. EcoMetales professionals played a key role in its design and implementation. The importance that Codelco attaches to this advance was highlighted by the presence of senior Division executives at the system’s inauguration. “I am very proud of the work that has been carried out,” said EcoMetales’s General Manager, Iván Valenzuela, “because this is an improvement that has a positive impact on the environment and production but, above all, on the health of our employees.”
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In addition to producing copper, the Arsenic and Antimony Abatement Process, which began operation in 2012, also removes impurities that pose a risk to the environment and human health. At present, it processes dust from Codelco’s Chuquicamata, Potrerillos and Ventanas Smelters and EcoMetales hopes to expand its services to other smelters. Average copper recovery efficiency at the Plant depends critically on the characteristics of the material treated but, in 2012, reached an average of 82%. The Plant has an environmental permit for the treatment of 216 tonnes/day of copper flue dust.
PTPA Process The process at the Plant comprises two stages: • Copper extraction The flue dust undergoes a process of acid leaching to produce a copper-rich solution (PLS). The leaching solution for this process is made using effluent from the Chuquicamata refinery and sulfuric acid and, in other words, also reuses liquid waste generated by Codelco. The PLS is then sent directly to Chuquicamata’s Oxide Leaching Plant for refining of the copper it contains. However, since August 2012, it goes first to the Arsenic and Antimony Abatement Process where a large part of the impurities are removed, making it both cleaner and more commercially valuable. • Arsenic and Antimony Abatement The Arsenic and Antimony Abatement Process (PAAA) is an essential complement for copper flue dust leaching operations. The construction of the installations required for this process represented an investment of over US$75 million. Copper flue dust, like other copper mining waste, contains important amounts of arsenic and antimony. Some of their chemical forms can represent serious risks for human health and, for example, arsenic trioxide has cancerigenous properties while antimony gases can cause respiratory damage. The PAAA transforms these elements, present in the PLS, into a stable form that represents non-hazardous waste. In brief, the process takes a copper-rich solution from the Flue Dust Treatment Plant and submits it to the following processes:
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OUTPUT In 2012, the Copper Flue Dust Treatment Plant recovered 6,725 tonnes of fine copper.
• oxidation using hydrogen peroxide; • treatment with ferric sulfate (produced by EcoMetales from magnetite and sulfuric acid); • precipitation of the arsenic and antimony-enriched part of the solution in reactors; • separation of the solid and liquid phases. The arsenic waste, stabilized in the form of scorodite, is disposed of in a duly authorized deposit owned by EcoMetales which has a capacity to store 1.1 million tonnes of arsenic, giving it a useful life of more than 15 years. Since its start of operations in late 2012, the PAAA has produced over 1,800 tonnes of stabilized waste in the form of scorodite which has been stored in the deposit authorized under Supreme Decree (DS) N° 148/03. The two stages of the treatment of copper flue dust are shown in the diagram on page 38.
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Phases of copper flue dust treatment: leaching and abatement of arsenic and antimony copper flue dust treatment plant diagram
Arsenic and antimony abatement process diagram
38. SUSTAINABILITY REPORT. 2012
Mining Waste Treatment Plant (PTRM) This plant is used to treat flotation tailings generated by the Chuquicamata Division’s copper mineral concentration process. They consist of a pulp of very finely milled ore suspended in a watery medium and correspond to the mineral discarded during the production of copper/ molybdenum concentrate. Tailings are among the most voluminous waste generated by copper mining. A mine with an average 1% copper ore grade generates more than 90 tonnes of tailings (without considering the water) for each tonne of copper content produced. As a result, tailings deposits, although their copper and molybdenum grades may be very low, constitute an important reserve of these metals. In mid-2012, EcoMetales took charge of the PTRM for the validation of its metallurgical parameters. It is important to highlight the contribution that this technology makes to better use of the copper and molybdenum reserves of Chilean mines. Its expansion to other operations could significantly increase the overall efficiency of the mining process.
Process Essentially, the process consists in the capture from the tailings canal of all the fresh material which goes to the Talabre Dam (180,000 tonnes/day) and its treatment using a series of selective flotations (cascade, primary, scavenger) to generate a part of the material that is enriched in copper and molybdenum, thereby avoiding the deposit of this metallic content as waste. The discarded part of the tailings is returned to the dam while the enriched part is subjected to two additional flotations and to thickening, generating a concentrate with a copper content of between 15% and 20%. This process is illustrated in the diagram on page 40.
39. SUSTAINABILITY REPORT. 2012
Mining waste treatment plant diagram
Projects In its bid to position itself as a world leader in the abatement of impurities and the recovery of metals from mining waste, EcoMetales is developing a portfolio of projects. Those that are at a more advanced stage are described below, along with a selection of the company’s ideas for future projects. • Improvement of the Generation, Transport and Disposal of Arsenic Waste, El Teniente Division The aim of this project is to modify the treatment of effluent generated by the Gas Cleaning Plant (PLG) of the El Teniente Division’s Caletones Smelter as well as the final disposal of the remaining arsenic waste. Under this project, a new plant with modern technology will be used to increase capacity to treat effluents and reduce the volume of solid arsenic waste and the concentration of arsenic in effluent from the PLG plant. A new and secure Hazardous Waste Deposit, complying with the corresponding regulation, will also be built in the El Teniente Division’s industrial area for the storage of the resulting, much smaller quantity of waste, thereby avoiding the need to transport it. In 2012, the Environmental Impact Study for this project was prepared for submission to the Environmental Impact Evaluation System (SEIA) during 2013.
40. SUSTAINABILITY REPORT. 2012
• Antimony Ion Exchange Effluent Treatment Plant This project’s objective is to process effluent from the Chuquicamata Division’s Ion Exchange Plant which contains antimony and high levels of chlorides. Contracts are currently being drawn up for the engineering stages of this project which would abate or remove the effluent’s potentially harmful content and prevent it from having a negative impact on the environment and people. In addition, it is hoped to recover antimony for its subsequent sale. • Reprocessing of Tailings from the Andina Division’s Piuquenes Dam The objective of this project is to reprocess tailings from the Andina Division’s Piuquenes Dam in order to recovery its interesting copper and molybdenum content. In 2012, progress was achieved on the project’s pre-feasibility engineering. • Treatment of Coarse Part of Fresh Tailings in the Mining Waste Treatment Plant This project aims to increase the PTRM’s processing capacity, allowing it to treat the coarse as well as fine part of the tailings that go to the Talabre Dam, thereby increasing copper and molybdenum recovery. The project was submitted to the Environmental Impact Evaluation System (SEIA) in September 2012. • Molybdenum Recovery from PLS The aim of this project is to recover molybdenum from the leaching solution produced by the Copper Flue Dust Treatment Plant (PTPA) through the use of ion exchange resins, precipitating the molybdenum in solution as ammonium heptamolybdate and then toasting it to produce molybdenum trioxide. The project obtained approval from the Environmental Impact Evaluation System (SEIA) in April 2012.
41. SUSTAINABILITY REPORT. 2012
Sustainability Performance
This section describes some of the most important aspects of EcoMetales’s environmental, social and economic performance in accordance with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines. The company’s operations have two distinctive characteristics that are important for defining the scope of this Report. Firstly, since its installations are distant from population centers, the company has neither operational impacts nor direct relations with communities and, secondly, its activities do not generate an end product but correspond to an intermediate process required for the cleaner production of refined copper. Moreover, transfer occurs directly through special pipelines and the product is not, therefore, transported by road or other means. A series of permits are required to undertake work of the type carried by EcoMetales. The table below shows the Environmental Authorization Resolutions (RCAs) the company has obtained, allowing it to handle, transport, process and dispose of hazardous waste and to offer complete services in this field.
42. SUSTAINABILITY REPORT. 2012
RESOLUTION
ACTIVITY APPROVED
RCA Nº 149/06
Treatment of Chuquicamata copper flue dust.
RCA Nº 205/07
Treatment of Ventanas and Potrerillos copper flue dust.
RCA Nº 086/09
• Treatment of Caletones, Altonorte, Chagres and Paipote copper flue dust. • Precipitation of arsenic and antimony to produce scorodite. • Construction and operation of waste deposit (scorodite).
RCA Nº 050/11
• Treatment of hazardous copper-containing waste from Chilean smelters. • Authorization to deposit sludges from leaching of hazardous waste.
RCA Nº 074/12
Recovery of molybdenum from PLS generated by treatment of copper flue dust and hazardous waste.
RCA Nº 687/12
Treatment of hazardous copper-containing waste from any mining company in Chile.
Integrated Management System In 2012, EcoMetales implemented the following activities related to its Safety, Occupational Health, Environment and Quality (HSEQ) Policy: • Identification of the organization’s environmental risks and exposure through the pre paration of risk matrices. • Identification of the legislation applicable to the organization on safety, occupational health and environmental matters. • Launch of the company’s Fatality Control Standards and Rules for Life. • Preparation of the management system’s structural procedures and operational pro cedures related to safety, occupational health and environmental matters. • Training of internal auditors. • Preparation of the document platform for the management system.
43. SUSTAINABILITY REPORT. 2012
Economic and Social Aspects
44. SUSTAINABILITY REPORT. 2012
The table below shows the GRI economic and social performance indicators applicable to EcoMetales for 2011 and 2012.
Economic Value (US$)* Direct Economic Value Generated (EVG)
Income
Economic Value Distributed (EVD) Operating costs Wages and benefits Payments to providers of capital Payments to governments Investment in community Economic Value Retained (EVG less EVD)
2011
2012
27,003,725
28,053,850
-19,057,844 -3,796,409 -141,903 0 0
-24,346,005 -6,080,693 -443,966 0 0
4,007,569
-2,816,814
*: Exchange rate used: US$ 1 = $ 479,96 (Chilean pesos).
Labor Aspects EcoMetales has a general hiring procedure that is applied uniformly across the company. However, through incentives, it promotes the hiring of persons resident in the region where its operations take place. The remunerations paid by EcoMetales are competitive within the context of the region where it operates, an eminently mining area. Both remunerations and incentives are determined by an employee’s function and the value contributed by his or her performance in terms of meeting the company’s targets. All EcoMetales’s employees earn more than the minimum legal wage in force in Chile. In addition, the company’s workers receive quarterly and annual production-linked bonuses.
45. SUSTAINABILITY REPORT. 2012
The table below shows the company’s workforce in 2011 and 2012 by type of contract. As of 31 December 2012, it had 121 direct employees and a further 237 contractors’ employees were working at its operations.
Direct Workforce Type of Contract Indefinite Temporary * Total
2011
2012
102 8 110
110 11 121
(*) Includes temporary contracts and those for specific projects, at December 31, every year.
As shown in the table below, 23 direct employees left the company in 2012, equivalent to 19% of its workforce. In the same period, 34 people joined the company.
Employees Leaving ECL in 2012 By Age Group
Women Men Total
< 30 1 3 4
46. SUSTAINABILITY REPORT. 2012
30 - 50 2 17 19
> 50 0 0 0
Total 3 20 23
As regards employee benefits, EcoMetales complies with Chilean law and the standards prevailing in the country’s mining sector. Employees, including those with a temporary as well as indefinite contract, receive the following benefits:
Worker Benefits 2012
Workers with Indefinite Contract
Workers with Temporary Contract
YES YES YES YES YES NO NO
YES YES YES YES YES NO NO
Life Insurance Health Insurance Insurance Against Disablement Maternity/Paternity Leave Pension Fund Stock Options Others
EcoMetales fully respects its workers’ right to freedom of association and collective bargaining. Union membership at EcoMetales is shown in the table below.
Union Membership 2012 Nº of Unions Number of Unionized Workers Union Membership (%)
1 48 43
EcoMetales’s workers are covered by a collective agreement signed in August in 2010 and valid for almost four years. Under its hiring policy, the company does not discriminate on the grounds of gender, race or membership of minority groups and no incidents related to discrimination of any type have been reported. Similarly, EcoMetales does not differentiate remunerations on the basis of gender. EcoMetales does not employ minors and adheres to national and international labor regulation prohibiting child labor. Similarly, it does not accept forced or compulsory labor which is forbidden by the legislation in force in Chile as well as under International Labour Organization (ILO) recommendations.
47. SUSTAINABILITY REPORT. 2012
The tables below show the company’s workforce in 2012 by gender and age group.
Workforce by Gender 2012 Category
Women % Nº
Men
Total
%
Nº
%
Nº
Executives Professionals / Technicians Operators
0 18.2 1.7
0 22 2
6.6 62.8 10.7
8 76 13
6.6 81 12.4
8 98 15
Total
19.9
24
80.1
97
100
121
Workforce by Age Group 2012 Category
< 30 (% / Nº)
30 - 50 (% / Nº)
> 50 (% / Nº)
Total (% / Nº)
Executives Professionals / Technicians Operators
0/0 18.2 / 22 0/0
4.1 / 5 51.2 / 62 9.9 / 12
2.5 / 3 11.6 / 14 2.5 / 3
6.6 81 12.4
8 98 15
Total
18.2 / 22
65.2 / 79
16.6 / 20
100
121
In 2012, the absenteeism rate was 1.9% which, as shown in the table below, represented a drop of some 30% on the previous year. Out of this total rate, 1.4% corresponded to women and 0.5% to men.
Absenteeism Rate [N° of days lost / N° of days worked] * 100
2011
2012
2.7
1.9
48. SUSTAINABILITY REPORT. 2012
Fines for Non-Compliance In 2012, EcoMetales received a non-pecuniary administrative sanction from the Health Service for infringement of Supreme Decree N° 594 on Regulation of Basic Workplace Sanitary and Environmental Conditions. This referred to the company’s changing rooms.
Corruption No incidents of corruption have ever occurred at EcoMetales. In order to minimize the risk of incidents of this type, the company has in place procedures that govern relations with suppliers, contractors and local and overseas public officials. In 2012, EcoMetales also began work on drawing up a Code of Conduct to complement the company’s Internal Order, Hygiene and Safety Norms. In 2013, it will not only publish this Code of Conduct but also launch a reporting line, available through its website to all internal personnel and collaborators. EcoMetales does not make financial or in-kind contributions to political parties or related institutions.
Training In 2012, the company invested some US$ 35,000 in training as compared to over US$ 500,000 in 2011. The marked difference is explained by training in 2011 in preparation for the PAAA’s start of operation. This involved over 100 employees, including supervisors, laboratory chemists, operators and maintenance personnel who participated in 14 courses. In addition, it is important to note that, in 2011, EcoMetales created a Training Fund administered by the Workers’ Union which is responsible for determining its use and allocation. It may be used to finance specialization courses required by the Union or to help workers finance university or technical studies. In 2012, it was agreed to increase this Fund which, as from 2013, will reach $ 7,000,000 (Chilean pesos).
49. SUSTAINABILITY REPORT. 2012
The table below shows the training provided by EcoMetales in 2012, benefiting 34 men and nine women.
Training 2012 Employee Nยบ of Investment Nยบ of Nยบ of Category Employees (US$)* Courses / Hours Participants per Course Executives
8
0
Professionals / Technicians
98 16,773
Operators 15 18,772 Total
121
35,545
0
Average Hours / Employee
0
0
10 Courses / 25 524 Hours
5.4
8 Courses / 383 Hours
18
25.5
43
*: Exchange rate used: US$ 1 = $479,96 (Chilean pesos).
50. SUSTAINABILITY REPORT. 2012
51. SUSTAINABILITY REPORT. 2012
Safety and Occupational Health
In the case of safety and occupational health, EcoMetales is guided by the following values: • The safety of personnel is a non-negotiable value. • The leaders of all levels of ECL are examples as regards safety. • Effective leadership on safety is a requisite for promotion. • People are aware of the dangers and risks present in their workplace and act accordingly. • At ECL, there is total compliance with norms and procedures on safety, occupational health and protection of the environment. • Risky behavior is not accepted and, when observed, is immediately corrected. • Effective skills for leading and working safely are developed through training and per manent guidance. • A repetition of an incident is not acceptable and is evidence that an operation is out of control. These values form part of the company’s Internal Order, Hygiene and Safety Regulation, a copy of which is provided to all its workers. This Regulation also includes an Alcohol and Drugs Policy which seeks to protect the physical integrity of the worker in question and other workers as well as the company’s goods and resources by prohibiting coming to or being at work under the influence of alcohol or drugs. This is enforced by a breathalyzer alcohol test applied on arrival at the plant.
52. SUSTAINABILITY REPORT. 2012
Fatality Control Standards In May 2012, EcoMetales defined its Fatality Control Standards. These are based on the experience acquired in this field by Codelco but adapted to the companyâ&#x20AC;&#x2122;s own needs. Each standard seeks to prevent or control serious or fatal accidents as a result of particular working conditions. In 2012, EcoMetales also drew up its Rules for Life, each one of which is associated to a Fatality Control Standard as listed below: 1. Work with dangerous types of energy in the intervention of equipment, machinery and systems. 2. Work at heights of more than 1.80 meters. 3. Work with heavy equipment. 4. Driving light vehicles. 5. Work with portable and manual equipment and tools. 6. Conditions that include the projection of incandescent materials and particles. 7. Use and maintenance of safety signage. 8. Work involving lifting processes and suspended loads. 9. Conditions in which there is interaction between persons and the moving parts of equipment and machinery and the use of protections and guard rails. 10. Activities in confined spaces. 11. Storage, use and disposal of hazardous substances. 12. Risks related to high winds.
53. SUSTAINABILITY REPORT. 2012
Joint Management-Worker Health and Safety Committees In accordance with the legislation in force, EcoMetales has two joint management-worker health and safety committees - one for the company and the other for its plant - in which 100% of its workers are represented. These committees have the following members: â&#x20AC;˘ Company Committee: six management representatives and six representatives elected by workers. â&#x20AC;˘ Plant Committee: one representative of ECL and six representatives of contractors.
54. SUSTAINABILITY REPORT. 2012
Safety Performance The table below shows EcoMetales’s safety indicators for 2011 and 2012. Out of the accidents that occurred in 2012, ten involved men and one, without lost time, a woman. In 2012, the Accident Frequency Rate showed an increase of 0.91 points on the previous year, despite a drop in the number of lost time accidents. The increase was the result of the fewer number of hours worked in 2012 due to completion of construction of the new PAAA installations. EcoMetales’s Frequency Rate compared with an average of 2.9 points for the mining industry as a whole in 2012 as calculated by the National Geology and Mining Service (SERNAGEOMIN) was slightly lower. In 2012, EcoMetales’s Accident Severity Rate dropped by almost 32 points to 40.84.
Safety Performance 2011 Workers
Hours
Nº of
Nº of Workers Suffering
Nº of
Frequency
Severity
Worked
Days
an Accident
Accidents
Rate
Rate
Days lost
Own Workers
Fatalities
Lost
Non-lost
Lost
Non- lost
Time
time
time
time
135,221
0
0
0
0
0
0
0.00
0.00
Contractors
1,600,769
125
0
3
50
3
50
1.87
78.09
Total
1,735,990
125
0
3
50
3
50
1.73
72.01
Safety Performance 2012 Workers
Hours
Nº of
Nº of Workers Suffering
Nº of
Frequency
Severity
Worked
Days
an Accident
Accidents
Rate
Rate
Days lost
Fatalities
Lost
Non-lost
Lost
Non- lost
Time
time
time
time
Own Workers
163,984
0
0
0
2
0
2
0.00
0.00
Contractors
595,008
31
0
2
7
2
7
3.36
52.10
Total
758,992
31
0
2
9
2
9
2.64
40.84
55. SUSTAINABILITY REPORT. 2012
In reporting workplace accidents, EcoMetales complies with the corresponding Chilean legislation (Resolution N° 2.245 issued by the Health Ministry) which is based on the recommendations of the International Labour Organization (ILO). No employees at EcoMetales’s operations have professional illnesses. In all activities that potentially involve exposure to arsenic, the company’s own employees and those of contractors are tested every three months to determine their possible contamination level. EcoMetales has established a limit of 100 micrograms per gram of creatinine in urine as the exposure threshold for triggering corrective action. This compares with the limit of 220 micrograms established by Chilean law.
Arsenic Occupational Health Standard and Management In view of the very important challenge that arsenic represents for the sustainability of the Chilean mining industry, EcoMetales worked together with Codelco to develop an occupational health standard for arsenic and a management system for its implementation for all workers who are exposed to this element. In 2012, this work included: • Incorporation of a Head of Occupational Health at EcoMetales. • Update of the Occupational Medical Monitoring Program for arsenic. • Measurements to detect arsenic in the environment and in persons in conjunction with the Asociación Chilena de Seguridad (ACHS) and the Public Health Institute (ISP). • The ECL Respiratory Protection Program. • Participation with Codelco in preparation of the Guide for Arsenic Control. In the latter case, EcoMetales worked with Codelco to draw up the Guide for Arsenic Control that will be incorporated into Codelco’s corporate health standards. To this end, the following activities were undertaken: • Gathering of information in different Codelco divisions and at EcoMetales. • Visits to the installations of Chuquicamata, El Teniente and EcoMetales. • Workshops to define common criteria for the management of arsenic, the requirements for personnel and the organization as well as installations, equipment and tools. The document was published at the beginning of 2013.
56. SUSTAINABILITY REPORT. 2012
PAAA Inauguration On 10 August 2012, EcoMetales inaugurated its Arsenic and Antimony Abatement Process (PAAA) at a ceremony attended by over 250 guests, including government authorities and senior executives of Codelco and collaborator companies. The event also marked the ninth anniversary of EcoMetales’s foundation. Codelco’s Vice-President for Operations North, Julio Aranis pointed out that, “this new plant resolves the management of arsenic and other impurities related to copper production in a way that is safe for the environment and the health of our employees; this innovation represents a significant contribution to sustainable mining”. At the event, EcoMetales also launched its 2011 Sustainability Report, providing the company’s first comprehensive account of its sustainability performance.
57. SUSTAINABILITY REPORT. 2012
Environment
Raw Materials and Inputs In the case of the Copper Flue Dust Treatment Plant (PTPA), the principal raw material used is dust, principally from the Chuquicamata Smelter and, to a lesser extent, the Ventanas and Potrerillos Smelters. In 2012, the Plant also began to process effluent from the Chuquicamata refinery. The input most used is sulfuric acid. In addition, with the start of operations of the Arsenic and Antimony Abatement Process, limestone, hydrogen peroxide and magnetite also began to be used. The quantities of raw materials and inputs used in 2011 and 2012 are shown in the table below.
58. SUSTAINABILITY REPORT. 2012
Raw Materials and Inputs: Dust Treatment Plant (tonnes) Raw Materials Copper Flue Dust Arsenic Waste Sludge Refinery Effluent (m3)
Inputs Sulfuric Acid Limestone Hydrogen Peroxide Magnetite
2011
2012
58,280 2,642 22,388 -
35,436 13,341 107,308
2011
2012
32,599 - - -
16,480 1,518 388 302
In 2012, specific acid consumption (338 kg/tonne of dust) showed a drop on 2011 (391 kg/ tonne of dust) due principally to the characteristics of the dust processed and the reuse of acid contained in refinery effluent. Consumption of limestone, hydrogen peroxide and magnetite correspond to the PAAA, which began operations in 2012.
energy Use The important increase in fuel consumption seen in 2012 reflects the start of operation of a boiler to generate the steam required by the Arsenic and Antimony Abatement Process (PAAA) in order to keep the PLS at a high temperature. In the case of canister gas, lower consumption is explained by a reduction in canteen activity following completion of the PAAAâ&#x20AC;&#x2122;s construction. The table below shows the fuel consumed directly by EcoMetalesâ&#x20AC;&#x2122;s operations.
Direct Energy Consumption (MWh)
2011
2012
Oil and Derivates Liquefied Gas Total
1,158 111 1,269
8,292 101 8,393
59. SUSTAINABILITY REPORT. 2012
The increase in indirect consumption also reflects the start of operations at the PAAA. The table below shows the energy consumed indirectly by EcoMetales through the Northern Interconnected Grid (SING).
Indirect Energy Consumption (MWh)
2011
2012
Electricity
5,197
6,012
The company’s headquarters in Santiago consumed 23,998 KWh of electricity from the Central Interconnected Grid (SIC) in 2012, up by approximately 3% on 2011.
Water Use and recycling Access to water resources is an ever more critical issue internationally and, in the Antofagasta Region, an eminently mining area and part of one of the world’s driest deserts, water reuse is a key principle for the design and operation of mining projects. The table below shows water use and recycling in different areas of EcoMetales’s operations in 2011 and 2012. Although less dust was processed in 2012, the PAAA’s start-up meant higher water consumption for the preparation of magnetite and lime slurry and for washing the arsenic waste. The PAAA washing water and the pump seal water are recycled and, together with that from the wastewater treatment plant, increased the recycling index. In addition, consumption of process water dropped due to use of refinery effluent from Chuquicamata Division.
60. SUSTAINABILITY REPORT. 2012
Water Reuse and Recycling Type of Use Water Extracted for Process (m3) Drinking Water for Changing Rooms and Bathrooms (m3) Total (m3) Reuse/Recycling (m3) % Reuse/Recycling
2011
2012
287,071
247,422
9,692 296,763 42,742 14
10,636 258,058 51,885 20
Water Recycled 25 20 %
15 10 5 0 2011
2012
Year
Emissions and Waste Climate change has become a crucial factor for the sustainability of the planet. Internationally, there has been intense debate in a bid to put the possible warming of the atmosphere in context and understand its causes. The tables on page 63 show the direct and indirect greenhouse gas (GHG) emissions related to EcoMetalesâ&#x20AC;&#x2122;s operations in 2011 and 2012.
61. SUSTAINABILITY REPORT. 2012
Definitions for Calculating and Interpreting Greenhouse Gas (GHG) Emissions Greenhouse Gases (GHGs). The emissions that make the most significant contribution to global warming are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and water vapor. The size of the impact varies with the type of emission. GHG emissions are reported in physical units (kilos, tonnes) of CO2 equivalent and conversion factors are used to express other emissions in their CO2 equivalent. Direct Emissions: These are the GHG emissions generated directly as a result of fuel use in a company’s operations. They correspond to the so-called Scope 1 GHG Emissions Inventory. Indirect Emissions: These are the GHG emissions generated by third parties in order to supply the electricity consumed by the company. In the case of EcoMetales, this is supplied from the Northern Interconnected Grid (SING). These emissions correspond to the so-called Scope 2 GHG Emissions Inventory. Emission Factors In this Report, the following conversion factors were used to calculate the company’s direct emissions: • Diesel: 2,672 kg CO2e/liter (Source: Carbon Trust; www.carbontrust.co.uk). • Liquefied gas: 1,492 kg CO2e/liter (Source: Carbon Trust; www.carbontrust.co.uk).
62. SUSTAINABILITY REPORT. 2012
Direct GHG Emissions Ton of CO2eq
2011
2012
Diesel Liquefied Gas Total
292 23 315
2,090 21 2,111
2011
2012
5,197,189
6,012,000
0.738
0.806
3,835
4,846
Indirect GHG Emissions Quantity (KWh) Emission Factor (Kg CO2eq/KWh)* GHG Emissions (Ton CO2eq)
* Emission factors provided by the Chilean Energy Ministry.
In other words, close to 70% of the company’s total GHG emissions are generated indirectly as a result of the electricity consumed by plant equipment. The increase in emissions was the result of a number of factors: • The start-up of an oil-fired boiler. • Higher overall electricity consumption. • An increase in the unit emissions factor of the Northern Interconnected Grid (SING). In the case of the electricity consumed by the company’s offices in Santiago, this accounted for 9 tonnes of CO2 equivalent of indirect GHG emissions in 2012.
63. SUSTAINABILITY REPORT. 2012
industrial Waste The operations of EcoMetales do not generate liquid industrial waste. Since 2011, the company has had a Wastewater Treatment Plant and the treated water is reused for irrigation. The table below shows the solid industrial waste generated by EcoMetales in 2011 and 2012 and the level of hazard it represented.
Solid Industrial Waste (Tonnes) Hazardous Non Hazardous Total
2011
2012
378 212 590
391 1,929 2,256
Out of the 1,929 tonnes of non-hazardous waste generated in 2012, 1,808 tonnes (94%) corresponded to scorodite, the environmentally stable form of the arsenic removed at the Arsenic and Antimony Abatement Process. This is disposed of in an authorized deposit owned by EcoMetales. All the waste generated at EcoMetalesâ&#x20AC;&#x2122;s installations, whether domestic, industrial or hazardous, is disposed of at duly authorized sites. Hazardous waste is, in addition, registered with the Health Ministryâ&#x20AC;&#x2122;s Hazardous Waste Declaration and Monitoring System (SIDREP). In 2012, EcoMetales received no fines for failure to comply with environmental regulation.
64. SUSTAINABILITY REPORT. 2012
News about EcoMetales Since the end of 2011, EcoMetales has published a Bulletin Board to provide employees with regular news about the company. It offers information about important internal activities, with a particular emphasis on safety and occupational health.
65. SUSTAINABILITY REPORT. 2012
GRI Index P: principal Indicators A: additional Indicators
GRI aspect
Section of report
Page
1. Strategy and analysis 1.1 Statement from the most senior decision-maker of the organization.
Message from the Chairman of the Board. Message from the General Manager.
1.2 Description of key impacts, risks and opportunities.
EcoMetales and the Sustainability of the Mining Industry. - EcoMetales: Mission and Opportunities. Sustainability Performance.
2. Organizational profile 2.1 Name of the organization.
Our Company.
12
2.2 Primary brands, products and/or services.
Our Company.
12
2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries and joint ventures.
Our Company.
12
2.4 Location of the organizationâ&#x20AC;&#x2122;s headquarters.
Our Company.
12
2.5 Number of countries where the organization operates and names of countries with either significant operations or that are specifically relevant to the sustainability issues covered in the Report.
Our Company.
12
2.6 Nature of ownership and legal form.
Our Company.
12
2.7 Markets served.
Our Company.
12
2.8 Scale of the organization, including number of employees, net sales, total market capitalization and quantity of products or services provided.
Our Company. Economic and Social Aspects. Labor Aspects.
12 44 45
2.9 Significant changes during the reporting period regarding size, structure or ownership, including location of activities, changes in ownership structure and others.
In 2012, there were no significant changes in the structure and ownership of EcoMetales.
2.10 Awards received in the reporting period.
No awards or distinctions were received in 2012.
-
-
3. Report parameters 3.1 Reporting period for information provided.
Our Company. - About this Report.
20
3.2 Date of most recent previous Report.
Message from the Chairman of the Board. Message from the General Manager.
04 08
3.3 Reporting cycle.
Message from the Chairman of the Board. Message from the General Manager.
04 08
3.4 Contact point for questions regarding the Report or its contents.
Our Company. - About this Report.
20
66. SUSTAINABILITY REPORT. 2012
GRI aspect
Section of report
3.5 Process for defining Report content.
Our Company. - About this Report. Sustainability Performance.
20 42
Our Company. - About this Report.
20
Our Company. - About this Report. Sustainability Performance.
20 42
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other entities that can significantly affect comparability from period to period and/or between organizations.
Our Company. - About this Report.
20
3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the Report.
Measurement techniques and bases of calculations are indicated in each section.
3.10 Explanation of the effect of any re-statements of information provided in earlier reports.
This Report contains no re-statements of information contained in the 2011 Report.
-
3.11 Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the Report.
This Report contains no significant changes in the scope, boundary or measurement methods applied in the 2011 Report.
-
3.12 Table identifying the location of the Standard Disclosures in the Report.
GRI Index.
66
3.13 Policy and current practice with regard to seeking external assurance for the report.
Our Company. - About this Report.
20
4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.
Our Company.
12
4.2 Indicate whether the Chair of the highest governance body is also an executive officer.
The Chairman of the Board does not occupy an executive position in EcoMetales.
-
4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent or non executive members.
Our Company.
12
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
Our Company. Economic and Social Aspects. - Labor Aspects.
12
4.5 Linkage between compensation for members of the highest governance body, senior managers and executives and the organization’s performance.
Our Company.
12
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.
Members of the Board of Directors are employees of Codelco and subject to all its norms for the avoidance of conflicts of interest.
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4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics.
Members of the Board of Directors are appointed by Codelco to provide this guidance in accordance with Codelco’s processes to ensure they are qualified to exercise this role.
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4.8 Internally developed statements of mission or values, codes of conduct and principles relevant to economic, environmental and social performance and the status of their implementation.
Our Company.
4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental and social performance, including relevant risks and opportunities.
Members of the Board of Directors are appointed by Codelco and are subject to its processes for exercising these functions.
3.6 Boundary of the Report.
3.7 State any limitations to the scope or boundary of the Report.
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4. Governance, commitments and engagement
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GRI aspect
Section of report
4.10 Processes for evaluating the highest governance bodyâ&#x20AC;&#x2122;s own performance, particularly with respect to economic, environmental and social performance.
Members of the Board of Directors are appointed by Codelco and are subject to its processes for evaluating their performance.
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4.11 Explanation of how the precautionary approach or principle is addressed by the organization.
The organization has not explicitly adopted a precautionary approach or principle.
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4.12 Externally developed economic, environmental and social charters, principles or other initiatives to which the organization subscribes or endorses.
The organization has not adopted external social, environmental or economic principles or programs.
4.13 Main associations to which the organization belongs and/or national and international bodies it supports.
EcoMetales does not belong to any associations and/or national and international bodies.
4.14 Stakeholder groups engaged by the organization.
The Safety, Occupational Health, Environment and Quality Policy, approved in 2011, establishes a commitment to maintain transparent, trustworthy and opportune communication with stakeholders in order to establish mutually beneficial relations of trust. In 2012, no progress was achieved in implementing this commitment.
4.15 Basis for identification and selection of stakeholders with whom to engage.
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.
The Safety, Occupational Health, Environment and Quality Policy, approved in 2011, establishes a commitment to maintain transparent, trustworthy and opportune communication with stakeholders in order to establish mutually beneficial relations of trust. In 2012, no progress was achieved in implementing this commitment. The Safety, Occupational Health, Environment and Quality Policy, approved in 2011, establishes a commitment to maintain transparent, trustworthy and opportune communication with stakeholders in order to establish mutually beneficial relations of trust. In 2012, no progress was achieved in implementing this commitment. The Safety, Occupational Health, Environment and Quality Policy, approved in 2011, established a commitment to maintain transparent, trustworthy and opportune communication with stakeholders in order to establish mutually beneficial relations of trust. In 2012, no progress was achieved in implementing this commitment.
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5. Management approach Disclosure on Sustainability Approach.
Sustainability Performance.
42
Economic and Social Aspects.
44
EC3 - P Coverage of the organizationâ&#x20AC;&#x2122;s defined benefit plan obligations.
Economic and Social Aspects. - Labor Aspects.
45
EC4 - P Significant financial assistance received from governments.
In 2012, EcoMetales did not receive financial assistance from the government.
6. Performance Indicators Economic Performance Economic Management EC1 - P
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to capital providers and governments.
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Market presence EC5 - A Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.
Economic and Social Aspects. - Labor Aspects.
45
EC7 - P Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.
Economic and Social Aspects. - Labor Aspects.
45
Environmental performance Materials EN1 - P Materials used by weight or volume.
Environment. - Raw Materials and Inputs.
58
Environment. - Energy Use.
59
Environment. - Energy Use.
59
Environment. - Water Use and Recycling.
60
Environment. - Water Use and Recycling.
60
Environment. Emissions and Waste.
61
Environment. Emissions and Waste. - Industrial Waste.
64
Environment. Emissions and Waste. Industrial Waste.
64
Environment. Emissions and Waste. - Industrial Waste.
64
Environment. Sustainability Performance.
42
Environment. - Industrial Waste.
64
Energy EN3 - P Direct energy consumption by primary energy source.
EN4 - P Indirect energy consumption by primary source.
Water EN8 - P Total water withdrawal by source.
EN10 - A Percentage and total volume of water recycled and reused.
Emissions, effluents and waste EN16 - P Total direct and indirect greenhouse gas emissions by weight.
EN21 - P Total water discharge by quality and destination.
EN22 - P Total weight of waste by type and disposal method.
EN24 - A Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III and VIII, and percentage of transported waste shipped internationally.
Products and Services EN27- P Percentage of products sold and their packaging materials that are reclaimed by category.
Compliance EN28 - P Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.
Overall EN30 - A Total environmental protection expenditures and investments by type.
In 2012, EcoMetales did not make any environmental investments.
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Social performance: labor practices and decent work Employment LA1 - P Total workforce by employment type, employment contract and region.
Economic and Social Aspects. - Labor Aspects.
45
LA2 - P Total number and mean rate of employee turnover by age group, gender and region.
Economic and Social Aspects. - Labor Aspects.
45
LA3 - A Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.
Economic and Social Aspects. - Labor Aspects.
45
Economic and Social Aspects. - Labor Aspects.
45
Labor / management relations LA4 - P Percentage of employees covered by collective bargaining agreements.
Occupational health and safety LA6 - A Percentage of total workforce represented in formal joint management worker health and safety committees that help monitor and give advice on occupational health and safety programs.
Safety and Occupational Health. - Joint management-worker health and safety committees.
LA7 - P Rates of injury, occupational diseases, lost days and absenteeism and number of work-related fatalities by region.
Economic and Social Aspects. - Labor Aspects. Safety and Occupational Health. - Safety Performance.
LA8 - P Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.
LA9 - A Health and safety topics covered in formal agreements with trade unions.
Safety and Occupational Health. - Fatalities Control Standards. - Arsenic Occupational Health Standard and Management. The collective agreement in force establishes annual provision of work clothing for the Plantâ&#x20AC;&#x2122;s employees.
54
45 55
53 56 -
Training and Education LA10 - P Average hours of training per year per employee by employee category.
Economic and Social Aspects. - Training.
49
Economic and Social Aspects. - Labor Aspects.
45
Economic and Social Aspects. - Labor Aspects.
45
Economic and Social Aspects. -Labor Aspects.
45
Diversity and equal opportunity LA13 - P Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity.
Diversity and equal opportunity LA14 - P Ratio of basic salary of men to women by employee category.
Social performance: Human rights Non - Discrimination HR4 - P Total number of incidents of discrimination and actions taken.
Freedom of association and collective bargaining HR5 - P Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.
Economic and Social Aspects. - Labor Aspects.
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Child labor HR6 - P Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor.
Economic and Social Aspects. - Labor Aspects.
45
Economic and Social Aspects. - Labor Aspects.
45
SO2 - P Percentage and total number of business units analyzed for risks related to corruption.
Economic and Social Aspects. - Corruption.
49
SO3 - P Percentage of employees trained in organizationâ&#x20AC;&#x2122;s anti-corruption policies and procedures.
Employees have not received formal training in anticorruption policies and procedures.
SO4 - P Actions taken in response to incidents of corruption.
Economic and Social Aspects. - Corruption.
49
Economic and Social Aspects. - Corruption.
49
Economic and Social Aspects. - Fines for Non-Compliance.
49
PR3 - P Type of product and service information required by procedures and percentage of significant products and services subject to such information requirements.
Sustainability Performance.
42
PR4 - A Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.
Sustainability Performance.
42
Sustainability Performance.
42
Forced and compulsory labor HR7 - P Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor.
Social performance: Society Corruption
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Public policy SO6 - A Total value of financial and in-kind contributions to political parties, politicians and related institutions by country.
Compliance SO8 - P Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.
Social performance: product responsibility Product labeling
Marketing communications PR6 - P Programs for adherence to laws, standards and voluntary codes related to marketing communications, including advertising, promotion and sponsorship.
Compliance PR9 - P Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.
EcoMetales did not receive any fines related to the handling of its products.
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