Contributing to the creation of economic, social and human capital in the areas where we operate is essential for the sustainability of our business. The Group maintains this commitment irrespective of the economic cycle.
Antofagasta Minerals seeks to be involved in the challenges involved in the development of the territories in which it operates and to contribute to the search for solutions via partnerships with other players, both public and private.
We promote local economic development by:
- Enabling local people to find quality jobs and business opportunities associated with our mining activities.
- Contributing to the initiatives arising from community engagement processes such as Somos Choapa, which address priorities shared by different stakeholders. 2,312
Los Pelambres’ sales were equivalent to 61% of exports from the Coquimbo Region in 2016 and the value added generated by the company is equivalent to 12% of GDP in the region. In the Antofagasta Region, Centinela and Antucoya together accounted for 9% of the Region’s exports1.
The Group enables local people to find quality jobs, both in its operations and with its contractors. In 2016, the Group directly employed 2,312 residents of the regions of Antofagasta and Coquimbo, which amounts to 51% of its employees in those regions.
LOCAL EMPLOYABILITY STRATEGY
As part of Somos Choapa, Los Pelambres has adopted a local employment strategy, designed to increase local access to jobs associated with its activities. Its implementation has created around 3,000 jobs for local people in two years. The strategy covers three areas: skills development, employment facilitation (using an employment website) and entrepreneur support.
In 2016, 96 of Los Pelambres’ contractors reached the target of hiring a minimum of 30% of workers locally as promoted by the company. Over that period, 42% of the vacancies for jobs lasting more than three months and 51% of jobs for scheduled maintenance work were filled by Choapa Valley residents. In addition, 583 locals participated in vocational courses, enabling them to access employment opportunities created by the company’s contractors and subcontractors.
Centinela’s Second Concentrator project will recruit locals preferentially for the 9,000 workers required during its construction.
During the mine construction phase, the company implements apprenticeship programmes aimed at training mine operators and maintenance workers, preferably recruited locally. For instance, during 2016, Antucoya welcomed 24 apprentices from the Maria Elena and Mejillones communities to train them as mine operators and Centinela trained 60 persons from Antofagasta Region in its Apprenticeship Programme. Meanwhile, Los Pelambres trained 20 persons, all from the Choapa Valley, to operate trucks of high tonnage.
Zaldívar received special recognition from the National Training and Employment Agency for being one of the two companies with most young apprentices in the country. In 2016, 52 apprentices received certification after completing their training programme, which provides young people with the necessary tools for their professional insertion.
Antofagasta Minerals participates in Mining Council initiatives aimed at improving the qualifications of workers in the industry. It also allocates financial and technical resources to support the development and skills of local people and communities by awarding grants to support their training for professional technical careers.
In 2016, the mining operations made purchases of some US$ 377 million from 735 suppliers in the regions of Antofagasta and Coquimbo, equivalent to 14% of total purchases and from 25% of the total number of suppliers.
In mid-2016, Centinela launched a pilot scheme for local sourcing in the Sierra Gorda community. The local services offers were matched to the needs of the operation, which enabled seven local suppliers to sign service agreements with the company and a mentoring programme was set up to foster their development.
The Group’s two main mining operations have the ProPyme Stamp of approval from the Ministry of the Economy, which recognises companies that are committed to paying their SME suppliers within a maximum period of 30 calendar days. Both companies are also involved in the Corfo World-class Supplier Development Programme aimed at strengthening innovation and supporting the internationalisation of national companies that supply the mining sector.
SUPPORT FOR FARMERS AND FISHERMEN
The Los Pelambres and its Foundation give technical support to small-scale farmers in the Coquimbo Region in the implementation of modern irrigation programmes. They also encourage collaborative projects aimed at improving the marketability of local products. Los Pelambres also works with artisan fishermen in Los Vilos, supporting the research, protection and development of the areas where they operate.
1 The value added generated by Los Pelambres in relation to GDP in the Antofagasta region was calculated using 2015 data. Zaldívar was not included, according to IFRS 10 (International Financing Reporting Standards) for Consolidated Financial Statements.
In 2016, work was done to reinforce the shift of focus in community investment, promoting initiatives arising from dialogue with the community and applying the Somos Choapa principles. Progress was made on the development of indicators for assessing the effectiveness of community projects and programmes, and their contribution to the development of the region. The methodology used is linked to the UN Sustainable Development Goals.
SOMOS CHOAPA PROJECT PORTFOLIO
This series of projects and programmes for economic, social and environmental development, funded in conjunction with the public sector, is the result of the first two years of the Somos Choapa process.
In 2016, 11 public works were launched: cultural and sports centres, improved roadworks and playgrounds, as well as sanitation and drinking water projects in Illapel, Salamanca and Canela.
Preliminary studies, invitations to tender and construction work have begun on 16 other projects, and entrepreneur support programmes were developed in Illapel and Canela.
In Los Vilos, five new playgrounds were opened and a citizen participation process launched to identify key community expectations and define ways of addressing them.
In 2016, the Group advanced an initiative known as the Antofagasta Plan that was based on the engagement process principles and the common interests of its three operations in the Antofagasta Region. A series of programmes and projects are being developed to strengthen their relationships with the residents of the Region and with the communities in the areas directly influenced by their operations. Social investment was focused on improving the quality of life of the inhabitants of the city of Antofagasta. Through the Creo Antofagasta public-private platform, the Group supported the Antofagasta on a Bike initiative by encouraging the use of bicycles as public transport and promoting the interaction of inhabitants with public
Social investment was focused on improving the quality of life of the inhabitants of the city of Antofagasta. Through the Creo Antofagasta public-private platform, the Group supported the Antofagasta on a Bike initiative by encouraging the use of bicycles as public transport and promoting the interaction of inhabitants with public spaces, and submitting a plan for the creation of 22 kilometres of highquality urban cycle paths to the regional government. In terms of higher education, support was given to several initiatives including the creation of a postgraduate course for PhD students in mineral process engineering at the Universidad de Antofagasta and an updated seminar at the Universidad Católica del Norte for regional journalists. In addition, within the areas of direct influence,
In terms of higher education, support was given to several initiatives including the creation of a postgraduate course for PhD students in mineral process engineering at the Universidad de Antofagasta and an updated seminar at the Universidad Católica del Norte for regional journalists. In addition, within the areas of direct influence,
In addition, within the areas of direct influence, dialogue was begun with the communities living in the area of West Calama to listen to their concerns and define community development projects together, reinforcing trust between the parties.
Centinela signed two important collaborative agreements with the Sierra Gorda Regional Council including grants in support of technical and professional education, a transport system for local students attending secondary schools in the city of Calama and a local sourcing programme.
After a process of collaboration and dialogue, and with the aim of promoting the building of cycle paths in the regional capital, the Group has contributed to the Antofagasta by Bike project through the public-private platform Creo Antofagasta.
The Mining Group has contributed to the development of cycle routes aimed at encouraging the use of bicycles as a means of transport and promoting the interaction of inhabitants with public spaces, in addition to supporting this initiative the Group has submitted a plan to the regional government for the creation of 22 kilometres of high-quality, urban cycle paths.
This initiative is based on the Group’s engagement process, whereby the actions and projects to be carried out with the communities are the product of joint efforts. This results from a process of participation and dialogue, which makes the community a key player in determining the initiatives to be implemented in the region.
In the first stage of the talks and agreements, the aim is to seek to enable the members of social organisations to express their needs, interests, strengths and vision of the future, while striving to preserve the identity of each sector.
In mid-2016, Centinela launched the pilot scheme for the Local Sourcing Programme with the Sierra Gorda community aimed at maximising the opportunities for using suppliers in the Sierra Gorda area.
Suppliers of local services were matched to the needs of the company, which enabled seven local suppliers to sign service agreements with the company. Centinela also put in place a mentoring programme to foster their development.