Our sustainability report

Transcription

2011
Our sustainability report 2011 - PRODECO
2011
Design and printing
Gatos Gemelos SAS
External assurance
Deloitte
The photographs in this report come from the image
bank of Prodeco and its associate companies,
and were taken at locations where the companies
undertake their activities.
Contents
Prodeco: the energy that moves Colombia
8
Corporate governance
18
Sustainability policy
20
Our stakeholders
24
Sustainable development
28
Our commitment to the health
and safety of our people
Our commitment to the development and well-being of our people
39
Our commitment to the environment
48
30
Our commitment to society
65
Declaration and assurance
77
Glossary 78
GRI indicators
80
A statement
from our CEO
For the second year, we present our sustainability report
describing the Prodeco Group’s most significant activities,
projects, investments and all other material data relating
to our sustainable development during 2011.
under Jaime’s guidance. His excellent performance very
quickly led to his promotion to Assistant Engine Driver,
where he became the travel companion and assistant of
his former professor and mentor.
Over the past few years, we have made important
progress in the safety of our operations, the planning
and execution of projects, and programs aimed at
developing and improving the quality of life for the
communities around us. We have also improved our
existing procedures for controlling and mitigating our
environmental impact, as well as implementing new
ones. Although there remains much work to do, we
believe we are heading in the right direction.
In May, Geovany Chinchia Royero, an employee of the
contractor Gecolsa also died when he lost control of the
telehandler he was operating.
This report is structured around the four principal
themes that form the foundation of our sustainability
policy:
++ Health and safety in the workplace
++ The well-being and professional development
of our people
++ Environmental management
++ The socio-economic development of the
communities in our area of influence
Despite the great progress we have made regarding
workplace health and safety, it is with great sorrow that
we announce the death of three people working for the
Prodeco Group. Two employees died in a rail accident in
April 2011: Jaime Rodríguez Bernal and Mauricio Pérez
Mendoza. Jaime was a professional with over 30 years of
rail experience, affectionately known as “The Professor,” for
having trained over a hundred aspiring engine drivers and
for his willingness to pass along and share his extensive
knowledge of railways. Mauricio was an outstanding
young man who took his first steps into the railway world
4
Prodeco
These regrettable incidents are a clear reminder that we
must work on the safety of our operations every day and
never lower our guard. Our commitment to the families
of these individuals and to our workers is to continue
our efforts with great determination, to ensure that
accidents of this kind never happen again.
Managing an operation as complex and diverse as the
Prodeco Group involves immense challenges since,
in addition to the two mining operations at the heart
of our business, we have a rail operation, an operating
port terminal, and another port under construction.
The project to construct Puerto Nuevo, the first port
terminal in the Ciénaga area to implement a directloading system for coal, is employing over a 1000 people
and more than 50 contracting companies. Despite the
huge scope of this project, by the end of 2011 we had
undertaken 1,105,305 working hours without any lost
time injuries (LTI); a significant achievement.
We should also emphasise the 30% increase to our
workforce in 2011, the result of our mining production
increasing by 45%. The majority of these new workers
are residents of the local area. This increase creates
additional work opportunities for our surrounding
communities and an extra boost to their growth, as well
as strengthening the pool of local skills via the transfer
of knowledge from our training of new workers.
“
Our second sustainability report reflects
our firm commitment and continual
effort to maintain a responsible and
sustainable mining operation.
In the sphere of communities, in 2011 the Colombian
government ordered the resettlement of three
communities bordering on our mining operations, Plan
Bonito, El Hatillo and Boquerón, process we started in
conjunction with other mining companies in the area.
We have taken great care to comply with all the applicable
guidelines and standards related to involuntary
resettlement, in particular those established by the World
Bank and the International Finance Corporation. Our aim
is to ensure a successful resettlement process and, above
all, to protect the rights of these residents and their
well-being and satisfaction in their new homes. This is a
complex project demanding a great deal of attention and
energy, and we will spare nothing in the way of time or
resources to guarantee its total success.
We also began to take part in two major ongoing
sustainability initiatives in 2011. We began the
preparation and endorsement of an agreement on
self-regulation, in conjunction with 12 of the biggest
companies in the Colombian mining industry and under
the leadership of the Large-Scale Mining Association
(Asociación del Sector de Minería a Gran Escala or
SMGE). This includes a commitment to implement
the best practices and standards on the environment,
communities, human rights, labour, industrial safety,
transparency and ethical issues.
Colombia’s Swiss embassy invited Colombian
companies of Swiss origin to work on the preparation
of a code of conduct. This will guarantee that all Swiss
organisations in Colombia will be exemplars in the
protection of human rights within their operations.
Both of these initiatives will help us to be aware of, and
compare, the best sustainability practices carried out
”
by the participating companies and to work jointly on
improving and implementing new controls, procedures,
and practices in the most important areas of sustainable
development.
With regard to environmental protection, 2011 saw
the start of an ambitious project to recover over 2,000
hectares of forest in the Serranía del Perijá and create
natural corridors in the upper basin of the Tucuy river.
This will contribute to the protection and regulation
of this important water source, which supplies a large
percentage of both rural and urban populations in the
region.
This report gives our stakeholders transparent access
to details of our activities and work areas, and a
complete overview of our business, in particular our
sustainable development activity. It also allows our
employees, contractors, and associated personnel
to develop an overall picture of what we do. In an
organisation the size of the Prodeco Group, it can be
difficult for individual workers to be fully aware of
what other departments are doing, to understand the
global situation, or the impacts and benefits created
by their organisation.
This report also allows us to identify areas where we are
doing things right and others where we must continue
working to improve our performance. Shedding light on
our sustainability data, projects and actions allows us to
establish specific goals and action plans for the coming
years.
We are proud of what we do and of this, our second
sustainability report. It reflects our firm commitment
and continual effort to maintain a responsible and
sustainable mining operation.
Our sustainability report 2011
Gary Nagle
Chief Executive Officer
5
“
We have prepared this report incorporating the
parameters of the GRI sector supplement for
the Mining Industry (Sustainability Reporting
Guidelines & Mining and Metals Sector
Supplement), allowing us to provide information
and design the report based on criteria specifically
designed for and focused on our business.
”
6
Prodeco
Scope of this report
This is our second annual sustainable development report, covering the activities undertaken
by the Prodeco Group during the period between 1 January and 31 December 2011. We have
made great efforts to collect and include all the necessary information in this report so that
our stakeholders, who grant us our social license, may know about the key areas and issues
for the sustainable development of our operations in 2011.
This report includes Prodeco Group companies
where we have management control and therefore
excludes Fenoco, where the Prodeco Group holds a
39.76% share.
The data metrics are those in general used throughout
the mining sector. Each local department records their
own data, with ultimate responsibility for the records
lying with our local managers. Conversion factors
and calculations are performed in house and verified
internally. A large percentage of the information included
in this report was compiled and recorded using the nonfinancial reporting system implemented in 2010 by our
parent company, Glencore International PLC.
Acquisitions, divestments
and corporate issues
In a private document dated 19 December 2011, Damila
Holding SAS declared the existence of a position of
business and group control in which Damila Holding SAS
is the parent or controlling organisation.
The controlled corporations are: CI Prodeco SA, Carbones
de la Jagua SA, Carbones El Tesoro SA, Consorcio Minero
Unido SA and Sociedad Portuaria Puerto Nuevo SA.
Subsequently, in a private document dated 18 January
2012, Damila Holding SAS made the same declaration
with respect to CI Prodeco de Colombia SAS. Both
documents were recorded in the commercial register of
the Barranquilla and Bogota Chambers of Commerce, the
chambers where Damila Holding SAS (parent company)
and the controlled corporations are registered.
Through those actions, the existence of the group was
disclosed before third parties and obligations then arose
for consolidated financial statements under the name
of the parent company and for presenting a special
report describing the transactions made between the
corporations of the group in the annual shareholder
meetings of the corporations involved (controlling and
controlled).
GRI compliance
This report complies with the GRI G3 guidelines for level
A+ application, as verified by Deloitte. The GRI index is included on page 80.
We have prepared this report incorporating the parameters of the GRI sector supplement for the Mining Industry (Sustainability Reporting Guidelines &
Mining and Metals Sector Supplement), allowing us
to provide information and design the report based
on criteria specifically designed for and focused on
our business.
External assurance
Deloitte conducted a thorough external evaluation to
verify the accuracy of key information presented in this
report. To perform this work, Deloitte was given access
to the organisation’s senior management, all employees,
and the data required for proper confirmation of the
information reported. The independent assurance report
can be viewed on page 77.
Feedback
We are happy to receive feedback and comments from
our stakeholders on both our performance and the
content of this report.
You can do this via our website, www.prodeco.com.
co or contact us by email at comunicaciones.externas@
prodeco.com.co.
7
1
Prodeco: the energy
that moves Colombia
7,323
In 2011, the Prodeco Group had 7,323 employees,
including direct and temporary staff and
contractors. This is an increase of 30.4% from 2010.
14
Prodeco Group produced 14 million MT. Our
marketable reserves were 341 million MT, with
resources (measured, indicated and inferred) of
560 million MT.
196,709
In November, a ship was loaded at Puerto Prodeco
with the largest coal cargo ever recorded in
Colombia: 196,709 MT.
8
Prodeco
Our main achivements in 2011
917,931
We provided a total of 917,931 hours of training
in industrial safety and occupational health.
3,000,000
In October we reached a record figure of more than
3,000,000 working hours without LTIs across the
Prodeco Group.
54,056
Throughout our operations, we rescued 1,682
animals, planted over 54,056 trees and rehabilitated
53 hectares of land disturbed by mining.
9
In 2011, the University
of Magdalena granted CI
Prodeco SA an honourable
mention for its social work
and commitment with the
city of Santa Marta and
with the department of
Magdalena. Thanks to the
alliance between Puerto
Nuevo and this university,
76 political, social, and
community leaders from
Ciénaga obtained a diploma
in Management for Local
Development.
Prodeco Group companies
owned by Glencore:
++ CI Prodeco SA
++ Carbones de La Jagua SA
++ Consorcio Minero Unido SA
++ Carbones El Tesoro SA
++ Sociedad Portuaria Puerto Nuevo SA
With this initiative, the
company is seeking to
strengthen the management
skills of the communities and
of public and private entities
in the region.
3
rd
We are the third
largest producer of
export thermal
coal in Colombia.
The Prodeco Group is owned by Glencore International
Plc (Glencore). The Group comprises Glencore’s
Colombian operations for the export of thermal and
metallurgical coal and its associated infrastructure. We
undertake exploration, production, transportation and
shipping for our high-grade thermal and metallurgical
coal, which is destined for markets in Europe, the
Americas and Asia.
We continue to grow and expand, operating under
an efficient, environmentally sustainable and socially
responsible model. We plan to increase coal production
from 14 million MT in 2011 to 19.9 million MT in 2013 and
20.7 million MT by 2014. This ambitious expansion will
make use of our large reserve base to take advantage of
the demand for coal imports by Europe, the Americas,
and Asia.
The Group has a marketable reserve base of 341 million
MTs, with resources (measured, indicated and inferred)
of 560 million MT.
The Group has large operational advantages as it owns its
entire essential operational infrastructure, including rail
infrastructure, rolling stock, as well as all mining equipment
and mine facilities. Furthermore, it owns Sociedad
Portuaria Puerto Nuevo SA, the entity currently building
a new directly loading public port in the municipality of
Ciénaga, which will replace Puerto Prodeco.
The Prodeco Group is the third-largest producer of
export thermal coal in Colombia.
10
Prodeco
Our economic contribution
The following figures show the contributions and economic
impacts of the Prodeco Group, especially on the local economies.
Local purchases
We are aware of the great benefits we can offer to local
and regional development and the role we can play in
contributing to development generating in our areas of
influence. For this reason we prefer to buy our operations’
goods and services from local and regional suppliers, as
much as possible. The graph below shows the progress
and sustained annual growth of our local and regional
procurement.
In 2011, Prodeco paid local suppliers USD 460,598,0001
for products and services, representing an increase of
37,7% over the previous year. A significant proportion
of this figure consists of payments for administrative
services (eg personnel transport and security) and for
specialised sector services.
Specifically, in 2011 the Calenturitas mine
paid USD 69,426,330 and the La Jagua
mine paid USD 45,394,977.
This significant figure, together with the
over USD 100,000,000 we paid in taxes
and other government compensations,
contribute to development within our
areas of influence and comprise the economic compensation paid by the Prodeco Group to the Colombian government
for coal mining.
1.
460,597,593
334,255,870
201,775,052
200,185,913
We changed the method of calculating this indicator
with respect to that used in our 2010 Sustainability Report.
The new method includes elements not previously taken
into account, such as: (i) sums paid to third parties as
endorsements or cessions of credit executed by our local
Royalties and taxes
suppliers, (ii) payments to local consultants (attorneys,
advisors, and others), and (iii) special cases of companies
In 2011, the Prodeco Group paid USD 114,821,307 in
royalties for the extraction and sale of the coal produced
by our operations.
that, although not registered in the Chambers of Commerce
of Barranquilla, Santa Marta, or Valledupar, have elements
2008
or characteristics causing their services or goods to be
(USD) Local purchases
considered as a local purchase.
2009
2010
2011
Million USD
Net sales
Operational costs
Salaries and benefits for our employees
Payments to capital providers
1,355
635.8
119
29.3
214.5
Payments to the Colombian government
11.9
Community investments
344.9
Economic value retained
11
Our business
The Prodeco Group is an integrated operation that includes open-pit coal mining operations:
Calenturitas and La Jagua in the department of Cesar; port export facilities (Puerto Prodeco,
operating in Santa Marta and Puerto Nuevo, which is under construction in the municipality
of Ciénaga); and a 39.76% stake in Fenoco SA, owner of the rail concession that links our
mines to our export ports.
Our head offices are in Barranquilla. We also have offices
at our mines and ports and a small corporate office in
Bogotá.
Puerto Bolívar
Santa Marta Port
Puerto ProdecoPort
Drummond Port
As of 31 December 2011, the Prodeco Group employed
a workforce of 7,323 people, including employees,
contractors and temporary workers.
Riohacha
Puerto Nuevo Port
SPRC Port
Santa Marta
Cienaga
Barranquilla
Cerrejón
(Xstrata, BHP Billiton,
AngloAmerican)
El Descanso
(Drummond)
Valledupar
La Francia
Calenturitas
(CNR)
Glencore
La Jagua
Glencore
El Hatilio
(CNR)
Pribbenow
Drummond
12
Prodeco
Calenturitas mine
Calenturitas is an open-pit mine that produces thermal
coal, which is low in sulphur and of a high calorific value.
Thanks to its coal-handling infrastructure, the Calenturitas
mine is capable of crushing between 15 and 17 million MT
of coal annually, and of loading up to 23 million MT onto
trains every year.
In 2011, the Calenturitas mine completed the construction
of a linear stacker, an infrastructure with a capacity of
3,000t/h that can stockpile approximately 150,000 MT of
coal. We also built 7,200m2 of maintenance workshops
In 2011, the Calenturitas mine produced 7.6 million MT
of coal, overcoming the problems caused by the winter
of 2010, which restricted production to only 5.2 MT.
La Jagua mine
La Jagua is an open-pit coal mine consisting of five mining
permits held by three companies owned by Glencore:
Carbones de La Jagua SA (CDJ), acquired in 2005; Consorcio
Minero Unido SA (CMU), acquired in 2006; and Carbones
El Tesoro SA (CET), acquired in 2007. Once Glencore had
purchased all of these operations, it integrated them
into one, with the approval of the Colombian Institute of
Geology and Mining and the Ministry of the Environment
and Sustainable Development. This involved the adoption
of a unified environmental management plan. As a result,
all mining reserves in this area can now be exploited,
which was not possible while the five mining titles were
operated separately. Another advantage is that integration
has allowed the development of a more effective and
environmentally friendly operation.
In addition to producing low-sulphur, high-energy
thermal coal, the La Jagua mine also produces high-
volatile metallurgical coal. Crushed coal is transported
by truck to the coal-handling facility at Calenturitas,
where it is loaded into rail cars and transported to the
port in Santa Marta.
La Jagua produced 4.4 million tons in 2008. In 2009,
production reached 4.8 million MT, a figure that did not
increase in 2010 due to excessive rain. In 2011, the La
Jagua mine increased production to 7 million MT; we plan
to maintain this level for the rest of the mine΄s service life.
2011 saw progress for the La Jagua mine. All
infrastructure associated with equipment maintenance
and spare parts and coal storage was built and delivered
in the second half of the year.
Rail operations
The Prodeco Group has held a 39.76% stake in Fenoco SA
(Fenoco) since 2006. The Group shares the ownership of
Fenoco with other Colombian coal-producing companies
(Drummond Coal Mining LLC, Carbones de los Andes SA,
Colombian Natural Resources I SAS and Vale Colombia
Transportation Ltd).
Fenoco owns a 30-year rail concession (which expires
in 2029) that links Santa Marta with Chiriguaná in the
department of Cesar.
”
and a fuel area capable of storing 600,000 gallons.
These projects are associated with the Calenturitas mine
expansion plan.
By integrating
five coal
mining
concessions in
the La Jagua
mine, the
Prodeco Group
has increased
its minable
reserves at this
operation by
approximately
50%.
”
13
As of 31 December 2011, the Prodeco Group owned
16 locomotives and 700 heavy freight wagons, a rail
transport capacity of 20 to 22 million MT annually.
Transportation by train increases the volume of coal
transported between the mines and the port and
represents the equivalent of 1,400 road trucks per
day, significantly improving environmental and safety
conditions in the region. Additionally, increasing
volume, facilitated by rail transport, results in higher
regional royalties and taxes and generates additional
employment.
To reach the goal of increasing rail capacity to at least
80 million MT per year, a second parallel rail line is being
built. In 2011, Fenoco built and delivered 55 km of the
second railway, completing 145 km of double track
out of the 191 km of the complete line. Furthermore,
a Centralised Traffic Control (CTC) is currently being
implemented to increase the operations safety levels
by minimising the risk of human error. This system is
expected to be operational in 2013.
Puerto Prodeco
The Prodeco Group uses two port facilities in the city
of Santa Marta (on the northern coast of Colombia):
Carbosan, owned by third parties, and Puerto Prodeco.
Puerto Prodeco lies next to Simón Bolívar Airport in the city
of Santa Marta and has historically operated under a private
concession granted by the Colombian government. This
concession expired in March 2009, returning the assets
of this operation, which is located in a public area, to the
Colombian government. The government currently allows
the Prodeco Group to use the port under a temporary
authorization scheme while construction of Puerto Nuevo
is completed.
At the end of 2011, Prodeco had a total port capacity
of 19.7 million MT: 17 million MT within Puerto Prodeco
and 2.7 million MT via Carbosán.
During 2011, Puerto Prodeco broke a number of Company
records.
Puerto Prodeco's company records
196,709
1,204,227
53,786
22
1,217,161
53,304
In November, we loaded a ship with
Colombia’s largest-ever load of coal:
196,709 MT.
We loaded the highest-ever number of
barges (22) in one day on 24 July.
14
Prodeco
In October, we unloaded the highest number
of trains and tons of coal in a single month:
211 trains and 1,204,227.84 MT.
The highest tonnage ever loaded on ships in one month
was 1,217,161.92, which we achieved in September.
The highest tonnage ever loaded on ships
in one day was 53,786: we achieved this on
18 September.
We received the highest-ever tonnage of
coal in a single day (via trains and trucks)
on 4 October: 53,304.28 MT.
”
Puerto Nuevo: a public
service port for exporting coal
In 2007, the government of Colombia ordered (via Decree 3083) all Colombian maritime coal
ports to implement a direct-loading system, using covered conveyor belts, starting in July
2010. This term was later extended to January 1, 2014.
The Ministry of Transport’s Resolution 5369 the same
year declared a zone of public use for port activities
in the municipality of Ciénaga, in the department of
Magdalena, to be in the national interest. This was based
on the Colombian government’s strategies for increasing
the country’s competitiveness in the port sector.
After taking part in a government tender process and
obtaining the necessary permits and authorisations,
the Sociedad Portuaria Puerto Nuevo SA was formally
constituted in 2010 and construction began on the
new port.
The Sociedad
Portuaria
Puerto Nuevo
S.A., part of
the Prodeco
Group, is in
charge of the
construction,
operation,
and
maintenance
of the Puerto
Nuevo
project.
”
15
Puerto Nuevo 2011:
1,000,000
63.5%
As of 31 December 2011, the construction of the
access pier was 63.5% complete (1,080m of a
total 1,700m)
40%
By the same date, construction of the navigation
channel was 40% complete, and approximately
12 million m3 had been dredged.
558
We hired 558 people for skilled and unskilled
labour in 2011, of whom 353 came from Ciénaga
and 205 from other towns in Magdalena.
1,690
Puerto Nuevo planted 1,690 trees, including timber, fruit, and ornamental species in this period.
16
Prodeco
”
The Puerto Nuevo project achieved one million
hours worked without lost time injuries on
22 July.
Puerto
Nuevo will
be the first
port in
Ciénaga to
implement
a direct
loading
system for
coal.
”
LAND-BASED
INSTALLATIONS
The 560 million dollar project
Unloading station for trains
with a 8,000 t/h capacity.
Bottom-discharge hopper cars.
Sociedad Portuaria Puerto Nuevo SA, is the concessionaire
of a public service port for exporting coal that will operate
with a direct-loading system.
Coal storage yard with a capacity of 1.1 million MT.
Puerto Nuevo will have state of the art equipment and
infrastructure to become a model port in Colombia. The
port’s initial annual export capacity will be approximately
21 million MT, with products destined for the North
American, European and Asian markets. Construction will
be completed in the first half of 2013.
Conveyor belts with a capacity
of 8,000 t/h, with a buffer
silo of 2,500 MT.
Working towards a
sustainable operation
MARINE INSTALLATIONS
Access pier
1.7 km long and 10 m wide,
over 345 m of shipping pier.
Dock 6m above the
sea on average.
Access channel
7.7 km long, 20.3 m
deep and 240 m wide.
Capable of receiving Capesize vessels (up to 180,000
DWT).
++ Various wildlife rescues, displacement and
relocation activities were carried out to conserve
the greatest number of species possible in the
construction area. In February 2011, we rescued
and relocated 286 individuals, mostly reptiles,
followed by birds and amphibians.
++ A series of emission controls, including a
water spraying system for the port construction
areas: a fleet of water trucks spray the areas every
day to control dust.
Social engagement
Puerto Nuevo was designed with sustainability in mind,
both in its construction and its equipment. The project
includes berms to isolate coal stockpiles. Construction has
been adapted to protect over 186 hectares of native forest
along the banks of the Marinca ravine and Toribio river, and
in the mangrove swamps at the mouth of the Toribio.
Puerto Nuevo is committed to establishing constructive
and harmonious relationships with its neighbouring
communities in Ciénaga. This includes meetings between
the company and the local community to foster economic
and social development in the municipality. The most
significant actions are:
Priority was given to hiring locals and residents of
Ciénaga for construction. Puerto Nuevo is a permanent
new addition to the community; for this reason we have
created a corporate community service office in the
centre of Ciénaga.
Since the community service office was opened in Ciénaga
in 2010, it has assisted over 2,200 people interested in job
opportunities, via online registration days on SENA’s (the
National Training Service) virtual platform. Local applicants’
CVs are entered into a database that is sent to the contractor
companies working on the project. As of 31 December 2011,
353 people from Ciénaga and 205 from other towns in
Magdalena have been hired in this way.
Environmental
management
The construction of Puerto Nuevo includes a number of
key environmental considerations:
++ Construction of berms to control air emissions
and mitigate the environmental impact of the
future operation. The berms were landscaped
with the material removed during the earthworks
operations at different points of the project and
were also replanted.
++ As of December 2011, 1,690 trees have been
planted, with 540 on the south berm, 450 along
the northern boundary and 440 near the future
stockpile yard. 200 fruit trees were planted in the
office area and 60 ornamental trees along the
outer border.
Puerto Nuevo’s sustainable development team held
17 public meetings with community leaders, legal
representatives for the local neighbourhoods, fishermen
and public officials from different local, regional, and
national authorities. The team explained many technical
aspects of the project and environmental, social and
labour-related activities.
Puerto Nuevo presented a specialised course in conjunction with the Higher School of Public Administration (Escuela Superior de Administración Pública: ESAP).
Aimed at helping to train local leaders and strengthen
the management ability of the local communities, the
transformational leadership course was for members of
different local social organisations.
17
The members of the Boards of Directors for CI Prodeco
SA, Carbones de la Jagua SA, Consorcio Minero Unido SA,
Carbones El Tesoro SA, and Sociedad Portuaria Puerto
Nuevo SA are all Prodeco Group employees.
The Management Committee of the Prodeco Group
comprises our Chief Executive Officer, Chief Financial
Officer, Vice President of
Operations, Vice President
of Legal Affairs, Vice President of Projects, Sustainable Development Manager,
and the general managers
of the mines at Calenturitas
and La Jagua, the port and
the rail operations.
Glencore also participates in the strategic decisions of
the Prodeco Group, with representatives frequently attending our board meetings. We send Glencore monthly operational, financial, legal and internal sustainability
reports, ensuring a constant flow of information and
feedback.
The sustainable development committee is of great
importance within our governance structure, as it
is responsible for establishing and supervising our
sustainable development policy and ensuring compliance with all the associated standards, policies
and procedures. The committee comprises Prodeco
Group senior management and is presided over by
the Group’s CEO. They are in constant communication
with Glencore in Switzerland.
Our Sustainable Development Manager is responsible
for the operations and commitments derived from
our sustainable development plan, and monitors
compliance. The Group CEO has overall operational
responsibility for all sustainability issues.
We follow Glencore’s group-wide requirements for
internal reporting, with three different levels requiring
annual, monthly or 24-hour reports. Class A incidents (as
defined by GCP: any incidents involving fatalities), require
a report within 24 hours. From 2012, high potential
incidents (HIPs) will also have a reporting requirement
of 24 hours. A HIP is an event (near miss, etc.) that could
have resulted in a Category A incident.
GM Calenturitas
GM La Jagua
VP Operations*
GM Port
GM Railway
18
Prodeco
2
Corporate Governance
Chief Executive Officer*
VP Legal*
SD Manager*
Chief Financial Officer*
VP Projects
Human Resourses*
Communications*
* Members of The Sustainable Development Committee.
19
20
Prodeco
3
Sustainability Policy
21
Our focus
We manage our operations responsibly, with
a firm commitment to sustainable development across four principles:
The well-being and development of our employees, as
well as respect for their freedom of association, are the
cornerstones of our organisational behaviour.
The Prodeco Group acts as an ally to its local communities, working to provide economic development
through investments in education, healthcare and entrepreneurial projects.
ic
es
nmenta
Enviro
l
management
stainability
Su
an d h e a
Safety
lth
workpla
e
h
in t
ce
re
We promote and implement management tools that allow us to determine appropriate actions for the prevention, elimination, mitigation and correction of the environmental impacts of the mining activity, and conserve
the use of natural resources.
Soci
o
dev -eco
n
e
of co lopm om
mm
en
un
it i
t
La
”
ur
bo
on s
lati
The policies, principles, and practices described in this
report are part of the group-wide sustainability and corporate administration programme of our parent company, called Glencore Corporate Practice (GCP).
The GCP programme includes commitments on proper
business behaviour and the development of sustainable
operations in seven strategic areas. All companies belonging to the Glencore Group must comply with the
related requirements. The GCP commitments cover:
++ Glencore’s people
++ Local communities
++ The environment
++ Compliance
++ Glencore’s customers
++ Glencore’s investors
The safety of our employees and contractors is fundamental to the development of our business. The Prodeco Group makes this commitment real through effective leadership in occupational safety and health at
all levels, with well-defined operational standards and
a safety system that ensure employees and contractors
make wise decisions and stay safe during any activity.
22
Prodeco
++ Reporting and communications
To ensure that we act in accordance with the GCP commitments, Glencore representatives visit our operations.
The GCP team receives regular reports and establishes
plans of action and improvement if necessary.
Human rights
The Prodeco Group’s respect for human rights is reflected in our relationships with our stakeholders: employees, communities, suppliers and others.
Since 2010 we have been running an internal training
programme in human rights and international humanitarian law, with the support of the Colombian Red Cross.
This programme is in line with the Geneva Convention
of 1949 and its complementary protocols, along with
the UN’s Universal Declaration of Human Rights. Starting with our security department, we have so far undertaken more than a thousand hours of training on human
rights. In 2010 we undertook 384 hours and in 2011 we
carried out 752 additional hours. So far we have trained
96% of our security employees.
In 2011 we also trained 12 employees as human rights
leaders; they will be responsible for continuing to extend training to other employees and contractors. Our
goal for 2012 is to start this training for other areas of
the organisation, including auditing, human resources,
communities, maintenance and operations.
96
No cases of violations of human rights or the rights of
indigenous people or other ethnic minorities were recorded during 2011.
We are aware of the need for our policies and practices
on this issue to extend to our contractors; for this reason
we include guidelines for strict compliance with Colombian law in their contracts.
of our security
employees were trained
in human rights
Compliance
We are committed to transparency and to maintaining
the most ethical practice, with a zero tolerance policy
towards bribery, corruption, fraud and criminal activity.
%
to report questionable behaviour, possible cases of corruption, suspected violations of human rights, failure to
comply with our labour, legal or regulatory obligations,
and any other action that could be classified as improper.
In line with GCP, we do not engage in any criminal,
fraudulent or corrupt practices. Prodeco Group employees and contractors must also comply with applicable
law and corporate policies, and our managers and supervisors are responsible for ensuring that our people
act accordingly. No cases of corruption were reported
or detected in 2011.
All calls to the ethics hotline are analysed by a corporate
inter-disciplinary group led by the Chief Financial Officer (CFO), with the participation by our internal audit
department. An independent third party ensures complete confidentiality by managing all calls and emails to
the hotline.
To assist us in complying with our corporate policies and
commitment to moral and ethical principles, we have
an ethics hotline for our stakeholders. They can use this
The ethics hotline can be accessed online, at www.integrity-helpline.com/lineaetica.jsp, or via a Freephone
telephone line: 01800 9120090.
23
We engage with our stakeholders through various
mechanisms and occasions
created for that purpose.
We are committed to working with our stakeholders
to maintain solid, transparent relations. We recognise
that respect and trust are
earned through frank and
open communication, allowing for mutual understanding and giving us the
ability to respond to our
stakeholders’ needs.
24
Prodeco
4
Our Stakeholders
25
Means of communication
Printed newsletters, regular face-to-face
meetings, performance reviews, notice
board information bulletins and radio
broadcasts.
Interest
Their families and their own well-being and
career opportunities.
Our
people
Reports, meetings and conference calls.
Consultations with community leaders and
representatives. Our community service
offices. Printed newsletters and radio
broadcasts.
Interest
Interest
High standards of corporate governance
and returns on their investments.
Employment opportunities, social projects
and investments and the impact of our
operations.
Our
shareholders
Labour
unions
Interest
Workers’ compensation, rights and interests, as well as health and safety issues.
Regular management meetings with trade
union leaders and written communications.
26
Prodeco
Local
communities
Our business
partners
Interest
Upholding the highest standards
in our operations.
Regular meetings (board and committee)
and printed materials.
Regular meetings with the President of Colombia, ministers and local leaders. Regular
reports on fiscal and sustainability issues.
Contact with marketing agents, annual
sustainability report, site visits and product
information documentation.
Interest
Interest
Our ethics and governance throughout the
product life cycle, fiscal plans and social
investments.
Product quality, reliability of supply
and ethical and sustainable production
standards.
Purchasing meetings, our written standards
and policies and financial information.
Interest
Government
and regulators
Our
clients
Financial
institutions
Nongovernmental
organisations
Supply agreements, payment terms and
creditworthiness.
Our
suppliers
News
media
Interest
Interest
Interest
Our financial well-being.
Labour, environmental and social issues
and governance.
Most stakeholder issues.
Meetings and regular financial and
sustainability information.
Meetings, telephone calls,
printed information and site visits.
Press releases and site visits.
27
28
Prodeco
5
Sustainable Development
29
Our commitment to the health
and safety of our people
Industrial Safety
Policy
We work constantly to ensure that our workplaces are
healthy and safe, and free of injuries, diseases and fatalities.
We believe that all work-related incidents are preventable
and we constantly search for ways to improve the wellbeing of our people.
We work closely with our employees to prevent and
eliminate incidents in the workplace by identifying,
assessing, studying, then eliminating or controlling risks.
Our safety mission includes industrial security, to ensure
a safe and secure working environment for all our
employees, contractors, and visitors, and to safeguard
company assets.
Approach
To ensure and maintain a clear and effective culture
of safety and security in our operations, the Prodeco
Group has designed various programmes and poli-
30
Prodeco
cies, led and supported at all management levels,
including:
++ Training sessions to reinforce the value of
safety through instruction;
++ Implementation of a key performance indicator
(KPI) management system to constantly monitor
and improve our safety performance;
++ Continual review and improvement of our
policies and procedures to ensure they adhere to
industry best practices;
++ Use of an injury/accident classification system,
based on international parameters and adapted to
our business;
++ Internal audits to ensure compliance by our
employees, operations and contractors with the
established control measures;
++ Implementation of an effective system to
identify and monitor high-risk activities in our
operations (HRAC).
Through these practices, we encourage workers to
reflect on their behaviour both on and off the job,
teaching them how to think safely and making common
sense a common habit.
Particularly noteworthy is COPASO, which has been set
up to promote occupational health at all levels of the
Prodeco Group. COPASO agrees concrete successes,
targets and goals with the managers responsible for
carrying out our occupational health programmes, as
well as publicising and promoting safe practices and
habits. Some of this committee’s key tasks include:
++ Actively assisting in investigations into
accidents and occupational diseases.
++ Taking part in regular inspections.
++ Proposing and participating in occupational
health activities.
++ Serving as a communications channel between
management and employees.
++ Monitoring compliance with the occupational
health plan.
We encourage workers to
reflect on their behaviour
both on and off the job,
teaching them how to
think safely and making
common sense a common
habit.
the causes of this unfortunate incident. The results of this
ongoing investigation will allow us to take the necessary
corrective and additional safety measures to avoid any
future incidents of this kind.
Fenoco also implemented some control measures in
the immediate aftermath of the accident: it established
a book for electronic block signalling in three stations
on the rail line to ensure that the track point positions
are now controlled by the stationmasters; it installed bicoloured semaphore signals to make them more visible
at a distance; and it adapted the communications
protocols for transmitting stationmasters’ track orders.
In addition, we established a verification plan for
communication protocols and safety conditions for
the entire rail operation, with a programme of daily
random spot checks and observation of behaviour and
performance.
”
We have health and safety committees at different levels
of our operation, which meet on a regular basis to identify
hazards, assess risks and implement corrective measures.
Sadly, there were three fatalities in our operations
during 2011.
In May, an employee of our contractor Gecolsa died when
he lost control of the telehandler he was operating. As
a result of an investigation into this incident, we made
changes to three aspects of operation: we improved
equipment design, standardised protocols and safety
elements required for those machines across all our
operations, and enforced a training plan for certifying
operator skills.
On 3 April, two of our rail employees died as a result of a
collision between a Prodeco Group train and one operated
by Vale. At the request of the companies involved, the
Executive Board of Fenoco hired the Canadian company
CANAC Railways Services Inc, to investigate and establish
These incidents are a compelling reminder that we can
never lower our guard when it comes to safety. The
slightest instance of carelessness can prove fatal in heavy
industrial operations; this is why we must continue
working to achieve a perfect safety performance.
++ Studying suggestions made by workers.
Performance
We believe
that all
work-related
incidents are
preventable
and we
constantly
search for
ways to
improve the
well-being of
our people.
31
”
Without minimising the significance of those accidents,
our safety performance has shown a continuous improvement since 2008. Our lost time injury frequency
rate (LTIFR) for 2011 of 1.14 was 60% lower than that in
2008. In addition, our total recordable incident frequency rate (TRIFR) (which includes medical treatments, limited work and lost time injuries) was 12.03%: a drop of
56.7% from 2008. These figures show that we are in the
right direction, especially as our total hours worked has
increased by 45.74% over the same period.
We measure our safety performance for both employees and contractors: our LTIFR for contractors has decreased by 58.31% since 2008.
Our property damage frequency rate (PDFR) was 23.55,
a decrease of 66.5% from our 2008 rate, thanks to our
continuing focus on training and on compliance with
our safety policies and procedures.
Training
60
We continued our programme of skills certification training, known as La Escuelita (Little School), throughout 2011.
In our Little School, we train our equipment operators in
the best, most efficient and safest practices for operating
their equipment. We continued with orientations in industrial safety and courses in defensive handling. We also
offered training in handling loads, working at height, hoisting loads and general safety procedures and standards.
%
This year, we added a new module in our industrial safety and occupational health (ISOH) department’s information system. This module gives us a better overview
of our training records by centralising information on
training hours, discussions and types of training offered
in different sections of the Prodeco Group.
Our Injury frequency rate
is 60% lower than that in
2008.
Total LTIFR 2008 – 2011
Total TRIFR 2008 – 2011
27.78
2,85
18.79
12.03
1,79
1,14
2008
32
Prodeco
2009
2010
9.22
1,136
2011
2008
2009
2010
2011
Hours of ISOH training
38
232
Training for male executives
Training for female
administrative personnel
19,572
105,861
Training for male
administrative personnel
Training for female
production personnel
724,386
20
Training for male
production personnel
Training for female
security personnel
151
4,655
Training for male
security personnel
Training for female contractors
63,016
917,931
Total training hours
Training for male contractors
Total PDFR 2008 – 2011
Total Hours Worked 2008 – 2011
70.23
43.71
19,366,524
29.24
15,731,346
12,879,535
23.55
10,507,926
2008
2009
2010
2011
2008
2009
2010
2011
33
Our general successes
in 2011 included:
++ In October we achieved a record of
3,040,494 working hours without LTIs across
the Group.
++ Puerto Nuevo reached three important
milestones for working without lost time
injuries: (i) 500,000 working hours, (ii) a
year, and (iii) 1,000,000 working hours.
++ In October Puerto Prodeco reached
1,000,000 working hours without LTIs
for the second time in the history of its
operation.
++ The Calenturitas mine achieved 2,830,706
working hours without LTIs in May.
++ The La Jagua mine achieved 2,269,179
working hours without LTIs in November.
++ Practice of a Safety Day at all sites.
++ Updating and display of the Golden Rules
(see section on Golden Rules of safety).
++ Defining and implementing the skills
certification process.
++ Evaluating 88 contractors in health, safety
and the environment using our assessment
model.
++ Burea Veritas certified 11 Prodeco Group
officials as internal auditors for integrated
ISO 14001, ISO 9000 and OHSAS 18001
management systems.
34
Prodeco
En route to an integrated
management system
In January of 2011 we began a project to align our mine,
railway and port operations with the OHSAS 18001 standard.
Since Puerto Prodeco has prior experience in the
methodology and application of management models
and as it already has an environmental certification,
we decided to focus on making the port the first of
the Prodeco Group΄s operations to have an integrated
management system under the international certification
model of the ISO 14001 and OHSAS 18001 standards.
The discipline and commitment of the work team
in charge of this project were crucial in obtaining a
favourable result from the ICONTEC national certification
organisation and, as consequence, for the first time the
Puerto Prodeco operation was certified, in June 2012, in
the OHSAS 18001 standard. This new certification, along
with the renewal of our ISO 14001 certification, makes
Puerto Prodeco our first operation with an integrated
management system.
Contractor administration
It is of vital importance for the Prodeco Group that its
contractors comply with all applicable regulations in
occupational health, industrial safety and the environment.
We conduct assessments using an in-house CSOHE
(Comprehensive System of Occupational Health and
Environment) model adapted to the size, complexity
and risk attached to each contractor company. Our aim
is to evaluate our contractors’ activities and programmes
on safety, occupational health and the environment.
Once an assessment is completed, we work with the
contractor to define new challenges and opportunities
for improvement, through the action plans that emerge
from these audits.
By implementing contractor assessments, we have
decreased the frequency of their recordable accidents
with injuries to individuals by 52.8% compared to
2009, despite an increase of 47% in the total number of
contracted workers.
classification
Incident
2009
2010
2011
Own
Contractors
Total
Prodeco
Own
Contractors
Total
Prodeco
Own
Contractors
Total
Prodeco
LTI
4
19
23
5
13
18
10
15
25
RWI
10
25
35
5
19
24
26
34
60
MTI
100
84
184
43
60
103
83
65
148
TRI
114
128
242
53
92
145
119
114
233
LTIFR
0.58
3.19
1.79
0.68
1.55
1.14
1,23
1.33
1.29
TRIFR
16.48
21.48
18.79
7.20
10.99
9.22
14,65
10,14
12,03
6,919,327
5,960,208
12,879,535
7,361,725
8,369,621
15,731,346
8,124,619
11,241,905
19,366,524
MH
35
Golden Rules for safety
Golden Rules
Our Golden Rules are a collection of principles designed
to avoid fatalities and major accidents in our operations.
As their name indicates, they provide the basic rules and
procedures that should be implemented for incident-free
performance. We updated and reorganised these rules in
2011 to make them easier to understand and remember.
1
Before performing a non-routine task, do a
Job Safety Analysis (JSA).
2
You may only operate equipment if you
have an approved licence.
3
Lock out all potential energy sources
before beginning any task.
4
Use scaffolding and certified safety
harnesses and lifelines when working at
heights of over 1.5 metres.
5
Do not enter confined spaces without
special entry permission.
6
To hoist or tow a load, you must have a
valid, current license.
7
To work near a pit wall, you must have a
special permit, and the equipment must
have a falling object protective structure
(FOPS).
8
Remember that no unauthorized persons
or vehicles may enter an area that is being
set or has been set with explosives without
prior authorisation.
The Golden Rules ensure compliance with safe work
practices, as well as safety and health regulations and
procedures, and help workers to identify the dangers
and assess the risks of a task or activity before starting
it. They guarantee that individuals are trained, qualified,
and competent, and ensure that they use the appropriate
personal protection equipment (PPE) for the job at hand.
The Golden Rules are mandatory for all employees,
visitors and contractors at all times. Failing to observe
or deliberately violating any one is considered a serious
infraction and a case of non-compliance with our
regulations and procedures.
36
Prodeco
9
Use a life jacket to work in or on water with
a depth of over one metre.
10
To work on any electrical installation,
component, or device, you must be trained
and accredited.
Occupational Health
Policy
We focus on protecting and improving the health and wellbeing of our people in the workplace through planning,
organising and implementing a health surveillance
programme to help prevent occupational diseases.
Approach
One of our primary concerns is controlling risks that
may threaten the health of our people.
Workplace accidents and occupational diseases are
factors that interfere with the normal course of business
activity, negatively influencing productivity and, as
a result, threatening its stability and continuance in
the marketplace; they also bring with them serious
implications in labour, family and social settings.
We are motivated by our people’s quality of life and their
families’ peace of mind, knowing that their loved ones
will return home safely each day. We are committed to
maintaining and improving our culture of prevention and
implementing occupational health programmes. These
involve preventive and workplace health activities as well
as occupational safety and hygiene practice. Ongoing
programmes include those to control contagious
diseases, including tetanus, yellow fever, leptospirosis,
hepatitis A and B, diarrhoea, cholera, and AH1N1 flu; these
all follow the guidelines and protocols of the regional and
district public health services, the Port Health Committee
and the International Health Regulations of 2005.
We also track and monitor workers with cardiovascular
and metabolic diseases such as high blood pressure,
diabetes and risk factors such as obesity. These
precautions not only decrease our work absenteeism
rate but reduce the number of deaths from secondary
complications, from heart attacks to strokes and kidney
disease.
Through a successful and dynamic internal promotion
campaign, we strengthened our healthy lifestyle
programme in 2011. Its goal is early intervention
with workers not yet showing symptoms of disease.
It does this through campaigns against alcohol and
drug consumption as well as smoking, and engaging
in sports activities, family workshops, etc. For workers
already showing symptoms of these diseases, activities
include monitoring to improve their condition. Our
nutrition and food committee, which is responsible for
the hygiene of our canteens and related installations
and the safety and nutritional value of the food served
there, also works towards the last goal. The specific
functions of the nutrition and food committee include:
++ Receiving and following up on feedback from
workers on the quality of food service.
++ Cafeteria inspections to identify any potential
problems with hygiene, sanitation or the
facility itself that could affect the quality of
food service.
++ Maintain compliance with the action plans to
improve these inspections.
++ Review the results of the inspection programme,
make any indicated improvements and suggest
corrective actions to food service contractors,
encouraging continual improvement.
++ Verify and approve, on a monthly basis, the
menus served in our cafeterias, ensuring they
include nutritional and healthy options.
Every individual we hire is required to undergo a medical
examination; in combination with our regular employee
medicals, this allows us to design suitable plans and
treatments to help prevent occupational diseases and
workplace accidents among our workers.
Overall, our occupational health programme has assisted
with:
++ Improving the quality of our people’s work
environment.
++ Creating greater satisfaction among our
people.
++ Increasing productivity.
Performance
One employee suffered an occupational disease in 2011
related to a back ailment. It was confirmed by Colombia’s
National Board of Disability Classification, an organisation
overseen by the Ministry of Health and Social Protection.
37
Hand care
Hand care: directing attention to the consequences of working without due caution.
During 2011, the Prodeco
Group ran a number of
programmes to promote
safety issues and safe
working to our people.
Other programmes gave
advice to our people
and their families on
healthy lifestyles. Some
key examples include:
Golden Rules
promoting our Golden
Rules of safety.
Eat healthy, live longer
asking individuals to make a commitment
to healthy eating, and teaching them the
importance of proper nutrition and physical activity.
Máximo Seguro (Max Safety)
a cartoon character created as the living
example of following good practices in all
our activities.
Cardiovascular risk
treating risk factors like obesity and high
blood pressure.
OHSAS
implementing a management system
based on OHSAS 18001.
Celebration of World Day for Safety and
Health at Work and of National Workplace
Health Day.
Prevention and medical
control programmes
To help identify and prevent health
problems among our employees, we
established 9 health teams, which carried
out 1,235 hearing tests, 816 osteomuscular
evaluations, 1,410 test for the prevention
of overweight and obesity and 1,236 lung
function tests in 2011; we also provided
2,197 free vaccines.
Workplace safety
Special ISOH
programmes
38
Prodeco
our workplace design process includes
special attention to safety and efficiency.
We regularly check offices and other
workplaces for compliance with safety
standards. For example, during 2011 we
conducted 57 noise level checks (using
sound level meters and dosimeters), 13
light intensity checks, 57 checks of airborne
particulates and five room temperature
checks, along with many other tests.
Our commitment to
the development and
well-being of our people
We employ people based on objective criteria designed to identify individuals with the best skills, knowledge and potential for appropriate performance and growth in the position. We do not consider gender, race,
social status, political or religious beliefs, or sexual orientation.
30.4
%
%
Was the increasement
in 2011 of the Prodeco
Group total workforce.
Our purpose is to attract, retain, develop and motivate
the best talent available to provide a clear competitive
advantage to our organisation. We prefer to directly
employ all workers in the core functions of our business
and, whenever possible, to recruit from the regions in
which we operate.
Approach
Our human resources (HR) department has a manager in
each Prodeco Group operation, each of whom help our
operational managers to apply our corporate policies
on HR administration. These leaders are the first point
of contact, information and support for our staff in each
of our operations. They also act as a communication
channel between employees and management, helping
us to determine improvement opportunities, along with
the needs and concerns of our people.
The Prodeco Group offers a benefits package that exceeds
Colombian legal requirements, aimed at improving
the quality of life of its direct employees. This includes
bonuses, healthcare and education benefits, savings
plans and insurance for workers and their families.
Employee benefits
In 2011 we continued to offer attractive and equitable
salary packages that include additional benefits on top
of those mandated by Colombian law. This results in a
better quality of life for our employees and their families.
The package includes regular bonuses in the months of
June and December for all direct employees.
These bonuses represent a significant proportion of
salary and comprise: bonuses for efficiency, which
recognise individual and overall performance, bonuses
for efficient shift changes and other compensation plans.
USD
835,422
The Prodeco Group΄s contribution to the savings
plan in 2011.
We also continued to promote our peoples’ personal
growth by encouraging them to save with our
institutional savings plan; for every contribution made by
a worker, we contribute an additional 50%.
The value of the contributions we made through this
savings plan in 2011 was USD 835,422. In 2010, our
contribution was of USD 679,635.
Similarly, our peoples’ health and that of their families is a
priority; we encourage our employees to hold a prepaid
healthcare plan (to supplement that already supplied
by the government) by contributing 70% of the costs
to all employees interested. On 1 January 2012, this
contribution increase to 80%.
As of December 2011, this healthcare plan had 1,957
members, of whom 829 were our employees and 1,128
were their family members. This equated to 33% of our
workforce in 2011.
39
We also offer an attractive
educational aid package that includes:
++ Monetary aid with tuition for workers’
children who are in preschool,
elementary, or secondary education.
++ Monetary aid with books and school
supplies for employees’children.
++ Special bonuses for workers’ children
who obtain the best academic results.
++ Aid for workers’ children who require
special education or continuing
medical treatment.
++ Aid for enrolment in secondary,
technology, and university education
for workers.
In 2011, the Prodeco
Group delivered
3,930 educational
aid packages worth
USD 495,789,
providing our
peoples’ families
with the most
important benefit:
education.
”
We increased assistance packages that covered: marriage,
birth, death, education, scholarships and medicine, among
others through collective agreements with our employees.
These increases far exceeded the increase in living costs for
2001. We also increased our housing and catastrophe loan
funds and the insured amount for our operational workers’
life insurance.
Workforce
In 2011, the total workforce of the Prodeco Group increased
by 30.4% compared to 2010, with 7,323 people working on
31 December 2011. These individuals were employed under
different types of contracts (permanent and temporary
contract as well as contractors).
This significant increase is mainly due to significant
recruitment activity at the Calenturitas mine, needed to
sustain operational growth. It also reflected the greater
number of contractors employed in the construction of
Puerto Nuevo.
During this period, we increased the number of direct
employees by 15.7%, from 2,153 in 2010 to 2,490 in 2011.
Colombian law allows direct employees to have either
indefinite-term (ie permanent employment) contracts
or fixed-term contracts (used for specific work activities
over a defined time period). At the end of 2011, 84% of
our employees were employed under indefinite-term and
16% under fixed-term contracts.
We prefer to offer indefinite-term contracts as these offer
more benefits and stability to our employees, allowing us
to build lasting relationships.
Category
Type:
40
Total 2010
% 2010
Total 2011
% 2011
Growth
Growth %
Permanent
2,153
38
2,490
34
337
15.7
Temporary
workers
142
3
272
4
130
91.4
Contractors
3,322
59
4,561
62
1,239
37.3
Total
5,617
1,706
30.4
Prodeco
100
7,323
100
”
Local employees
We give preference to workers from the areas near our
operations. To ensure the maximum objectivity and
transparency in the selection process, we identified and
contacted local candidates through SENA (the National
Training Service); community action groups; and local
recruitment offices. We also received support for this
process from our non-profit foundations, which operate
in the municipalities close to our operations.
87
%
%
In 2011, 87% of our
people came from areas
close to our operations.
Since the Calenturitas and La Jagua mines are located in
the department of Cesar, most of our workforce is based
there: 4,972 people, or 67.9% of our total workforce.
In the department of Magdalena, home to our port
and rail operations, there are 2,039 (27.9%) workers. In
the department of the Atlántico, we have 309 workers
(4.2%) and in Bogota we have 3 (0.04%).
In 2011, 87% of our people came from areas close to our
operations.
As we experienced a period of significant growth during
2011, mainly due to the development of our Calenturitas
mine, we were obliged to recruit from other regions due
to the short timescales. However, in general we still
uphold our policy of recruiting locally. This includes
partnerships with educational institutions, such as
SENA, which foster the development and training of our
local workers. This helps us to maintain our increasing
proportion of local workers.
27,9%
Workforce based in Magdalena
4,2%
Workforce based in Atlántico
67.9%
0,04%
Workforce based in Cesar
Workforce based in Bogotá
Age
Age
Under 30
Between 30
and 50
Over 50
Total
Employees
2010
%
2010
Employees
2011
%
2011
Growth
Growth
%
483
22.4
554
22.2
71
14.7
1,451
67.4
1,690
67.9
239
16.5
219
10.2
246
9.9
27
12.3
2,153
100.0
2,490
100.0
337
15.7
Colombian regulations do not allow people under 18
years of age to work, an arrangement that is fully aligned
with our policy and that we comply with absolutely.
The table shows an increase of 16.5% in the proportion
of our employees aged 30 to 50 years compared with
2010. This is due to the hiring of qualified and experienced personnel during this period.
In 2011, 65% of our management team were between
30 and 50 years old, with the remaining 35% over 50.
41
Gender
We constantly work to encourage women to enter this
industry, which has traditionally employed men. This
effort has led to an increasingly large number of women
being directly employed by our organisation.
Employees
2010
Gender
Women
It is important to the Prodeco Group to involve women, so
we are pleased to report that our organisation increased the
number of women hired in 2011 by 8.6% compared to 2010.
The ratio of pay levels between men and women is one
to one.
Employees
2011
% 2010
% 2011
Growth
Growth %
210
9.8
228
9.2
18
8.6
Men
1,943
90.2
2,262
90.8
319
16.4
Total
2,153
100.0
2,490
100.0
337
15.7
Total
Organisational La Jagua Calenturitas Port and
Barranquilla Women
Level
Mine
Mine
Rail
2011
Total
Women
2010
2011 vs.
2010
increase in
women
2011 vs.
2010
Total
Percentage
Total Men
percentage
Employees of Women
2011
increase in
2011
2011
women
CEO / Vice
Presidents
0
0
0
1
1
1
0
0.0
4
5
20.0
Managers
0
0
0
1
1
1
0
0.0
24
25
4.0
Heads /
Supervisors
1
1
2
13
17
16
1
6.3
66
83
20.5
Professionals /
Coordinators /
Supervisors
14
20
23
76
133
118
15
12.7
338
471
28.2
Assistants /
Operators /
Technicians
30
24
14
8
76
74
2
2.7
1,830
1,906
4.0
45
45
39
99
228
210
18
8.6
2,262
2,490
9.2
Grand total
SENA (National
Training Service) training
During 2011, we sponsored 185 technical apprentices.
Of these, 84% came from the areas of influence of our
operations, reflecting our commitment to prioritise our
neighbouring communities.
29 university students interned with our organisation in
2011, of whom 59% came from the areas of influence of
our operations.
42
Prodeco
Staff Turnover
The Prodeco Group has a low staff turnover rate, which demonstrates a high level
of stability and satisfaction. In 2011, the
staff turnover rate was of 4.68%.
Age range
Turnover
Number
of employees
Women
%
% Total
Under 30
33
662
5.0%
1.3%
Between 30 and 50
65
1,582
4.1%
2.6%
Over 50
16
246
6.5%
0.6%
114
2,490
4.6%
4.6%
Total
4.6%
Resignations (2011)
7.9%
Turnover (2011)
Men
4.2%
Turnover (2011)
43
Training
884,941
hours of training to our employees in 2011.
. This number includes training hours
2
corresponding to on-site coaching
provided by our supervisors.
We have continued with the implementation of our training
and education policy. The aim is to assist with our employees’
development, facilitate the performance of their duties, and
help our departments to achieve their objectives.
This year our training continued to focus on technical
programmes and safety behaviour. We also implemented
programmes linked to our industrial safety and occupational
health procedures. In total, our employees received 884,9412
hours of training in 2011 (and our contractors received 67,671
hours of training), as part of our technical, behavioural and
occupational health and industrial safety programmes. This
was an increase of 685,248 hours over 2010.
This increase resulted from implementing an industrial safety
information system that allows us to record all schooling and
training related to industrial safety and occupational health.
Implementation of an integrated SAP information system
also generated a significant number of training hours.
To improve training management, in 2011 we made an
assessment of the behavioural skills required for our
management, department heads and supervisors. This
allowed us to identify training gaps and create tailored
training plans. The exercise covered 75% of the relevant
roles in 2011 and will continue in 2012.
In 2011, 69% of our employees received an annual
performance evaluation, giving them feedback and
identifying opportunities for improvement, compared to
78% in 2010. This reduction in coverage is due to 2011’s
increase in the number of employees affiliating to unions
(see the section on labour relations for further details).
Unionised workers do not undergo performance
evaluations, as this is linked to a variable bonus; unionised
workers’ bonuses are not linked to this assessment.
This table includes only the hours
LA10
of training that our employees recived in technical and behavioural
issues. It does not include ISOH
training hours.
Direct
Position level
Average Hours 2010
Average Hours 2011
CEO / Vice presidents
0.0
0.0
Managers
10.8
21.5
Heads / supervisors
25.5
53.6
Coordinators / supervisors
38.1
29.2
Engineers / Analysts / Assistants
12.7
43.6
Assistants / Operators / Technicians
6.7
5.2
10.5
13.0
Average training hours per employee per year
44
Prodeco
70
%
Our minimum wage is
70% higher than the
legal minimum wage in
Colombia
Compensation
We offer competitive salaries, along with benefits
beyond those established by Colombian law, to help
our people improve their quality of life and well-being.
In 2011, we began a market reference survey on
salary, based on the Hay Group methodology; we will
analyse the results in 2012. Since our industry is highly
competitive in Colombia, remuneration levels are among
the best in the country. This leads us to periodically
update and monitor our sector position for both basic
and total compensation.
Our minimum wage is 70% higher than the legal minimum
wage in Colombia across all roles; taking our extra-legal
benefits into account, it rises to 95% above the legal
minimum. Furthermore, all salary increases are higher
than rises in the Consumer Price Index (CPI), allowing our
employees to maintain stable purchasing power despite
increased living costs. The salary increase for Prodeco Group
workers in 2011 was the CPI+1.5 points: a total of 4.67%.
Because Colombia has a comprehensive plan for
defined benefit pensions, our contributions are legally
mandated payments into this fund.
45
Promotion within
the organisation
We believe in developing the potential of all our
employees and promote promotion opportunities
within our organisation. In 2011, 161 employees were
promoted to positions of higher responsibility. These
promotions allowed us to fill 27% of our vacancies for the
year internally.
161
employees were promoted
to positions of higher responsibility.
Labour relations
A work environment that promotes respectful
relationships between all levels of the organisation
is in our interest. So is open communication that
fosters continuous improvement and organisational
development. The Prodeco Group supports freedom
of association for our people; our employees have the
right to join the unions or agreements of their choice.
To protect workers’ rights and ensure strict compliance
with Colombian labour laws, we regularly conduct
compliance audits that include our contractors. In 2011,
we made 14 visits to contractors to assess labour relations
and identify improvement opportunities.
We also hold regular meetings with our unions to hear
their concerns, and identify any necessary improvements.
46
Prodeco
In 2011, the following changes were made:
++ 352 workers from CI Prodeco SA, mostly from
the Calenturitas mine, joined the National
Coal Workers Union (Sintracarbón). As a result,
we received a list of requests in October that
led to a nine-day stoppage of activities in
the Calenturitas mine, which was solved by
the signing of the first collective bargaining
agreement between our operation and
Sintracarbón. Most CI Prodeco SA workers
have been covered by a collective bargaining
agreement for several years; this was subject
to negotiations in March 2011 and agreed for
a term of five years.
++ In Consorcio Minero Unido SA (CMU), 31 workers
joined the National Mining, Petrochemicals,
Biofuels, and Energy Workers Union
(Sintramienergética). These workers presented
a list of requests that began a collective
bargaining process which, unfortunately, did
not result in a collective labour agreement.
Age
Employees
2010
% 2010
This collective disagreement will be put before
a compulsory court of arbitration. Most CMU
workers are covered by a collective contract
that is in force until 2015.
++ The workers at Carbones de la Jagua SA are
covered by a collective agreement whose
renegotiation will take place in 2012.
++ Comparing the 2010 figures to those from
2011, the number of employees who opted to
join a trade union grew by 17%.
++ In 2011 there were no incidents of
discrimination or lack of respect for freedom
of association and collective bargaining. There
were also no cases of child or forced labour.
++ Furthermore, to mitigate any impact on our
employees and their families, we promote an
established practice of giving advance notice
of operational changes that may occur.
Employees
2011
% 2011
Growth
% Increase /
2010 employees
Number of union
employees covered by
collective bargaining
agreement
409
19.0%
774
31.1%
365
17.0%
Number of non-union
employees covered by
collective bargaining
agreement or a
company benefit plan
1,744
81.0%
1,716
68.9%
(28)
-1.3%
Total
2,153
100.0%
2,490
100.0%
337
15.7%
47
Our environmental commitment
Our commitment is to carry out our business in an environmentally responsible
and sustainable manner and in harmony with our neighbouring communities.
We are committed to:
++ Behaving as responsible stewards in accordance with good environmental practices.
++ Preventing, eliminating, controlling, mitigating, compensating and restoring the environmental impacts of our operations.
++ Continually improving our efficient use of
water, energy and natural resources.
++ Minimising air emissions and
greenhouse gases.
++ Reducing and minimising the discharge of
wastewater.
++ Avoiding net losses and degradation of natural habitat, biodiversity and landscape.
++ Reducing waste and its toxicity.
++ Preventing or mitigating the adverse impacts
of environmental incidents.
++ Obtaining feedback from stakeholders to
improve environmental preservation.
48
Prodeco
“
Our goal is to preserve
the long-term viability of the
natural environment
in our areas of operation.
”
Policy
We are aware of the environmental impact of our business
and we make great efforts to clearly identify this impact.
This helps us to find and implement the best measures to
prevent, eliminate, control and mitigate these effects and
make compensation for, and restoration of, our impact
where necessary. We strive to conduct our business
responsibly and in harmony with the environment as
part of our commitment to the sustainable development
of our regions and local communities.
Calenturitas and La Jagua mines. Our goal for 2012 is to
rehabilitate 126 more hectares in the two mines.
Our goal is to preserve the long-term viability of the
natural environment in our areas of operation.
Approach
All our operations have mine closure plans with
environmental, social and legal components. These
plans are periodically adjusted to account for changes
in our operations and in the natural environment.
To achieve our environmental policy of maintaining
long-term biodiversity and minimising the impact of
our operations, we implement rescue and relocation
programmes for wildlife and reclamation programmes
for areas affected by mining. The areas are replanted and
reforested to facilitate the development and return of the
original flora and fauna and rehabilitate an ecosystem that
is suitable for the development of biodiversity. In 2011 we
reclaimed 53 hectares of land disturbed by mining in the
As part of our overall environmental management,
we continually undertake training to raise the
environmental awareness of our employees and our
contractors and to identify potential environmental
risks and opportunities. This is done as a part of safety
training. In 2011, 11,175 people were trained. We are also
carrying on an environmental education programme
to complement this training, in seven educational
institutions within our areas of influence.
We use management tools to implement prevention,
elimination, mitigation, control, correction and compensation measures regarding potential environmental impacts. We also use a monitoring and follow-up
plan to confirm the effectiveness of measures being
implemented.
49
To ensure long-term financial resources for our
restoration work, as of 31 December 2011 we had made
a provision for USD 24 million for rehabilitation and USD
33 million for forest compensation.
Energy
http://www.siel.gov.co/portals/0/
3
Boletin%20Diciembre%202011.pdf
Water
In 2011, our mining equipment and related support
equipment consumed 6,758 terajoules worth of fuel.
This is an increase of 25.7% over the previous year’s
consumption. This rise was due to increased production
at our mines and a greater export volume at the port.
We also purchased 198 terajoules of electricity from
the national energy system, a rise of 30.9% from the
previous year. This was mainly due to growth in our
production and exporting.
77.9 %
cogeneration
50
Prodeco
5.5%
alternatives
Water uses and sources
Most of the water we use in our operations is for
environmental control: road wetting and other activities
for dust suppression and control. The main water source is
rainwater stored in reservoirs or in our inactive mine pits.
This is an environmentally friendly approach because it
reduces pressure on surface water sources such as rivers
and streams.
In September 2011, we finished paving 11.2 kilometres of
the road connecting the town of La Jagua de Ibirico with
the village of Boquerón. This road had previously required
watering several times a day to control dust emissions
produced from vehicles travelling on it, with water collected from the Sororia River and Paujil Creek. By investing USD 8,180,175 in paving this road, we will be able to
save more than 112,897m3 of water every year.
At the port, in addition to rainwater stored in reservoirs,
we used 81,967m3 of water taken from the Toribio river to
wet down coal, wash train cars and water internal roads.
16 %
0.5 %
We buy our energy from the Colombian national energy
system, which uses hydroelectric energy (77.9%), coal,
gas and fuel (16.0%), alternatives (wind and biomass)
(5.5%) and cogeneration (0.5%) as their primary sources
of energy3.
Human consumption
coal, gas
and fuel
hydroelectric
ENERGY
At La Jagua mine, water for human consumption is taken
from the Santa Cruz Creek. We also use water stored in the
south pit. In 2011, workers at this operation consumed
40,253m3 of water.
At the Calenturitas mine, water is obtained from wells; our
people consumed 66,485m3 of water in 2011.
Water supply source
At Puerto Prodeco, water for human consumption is obtained from the municipal water source; in 2011 10,700m3
of water was consumed.
During 2011, total water consumption within the Prodeco
Group’s operations amounted to 2,359,576m3, representing an increase of 15.5% over the previous year4.
Consumption (m3/year)
Surface water
Ground water
Rain water
Water from local
suppliers
151,729
66,485
2,130,655
10,700
4 This figure does not include water
consumption at Puerto Nuevo, as this
project is currently under construction.
51
Waste water
Our operations generate different types of waste water: mining water, water from washing equipment and
workshops, and domestic waste water.
At the Calenturitas and La Jagua mines, with new maintenance shops entering into operation, water used for
washing equipment is handled in a closed circuit that
enables us to recycle it for further washing use. Therefore, this activity discharges no waste water.
At the Calenturitas and La Jagua mines, water stored in
the pits is used for watering roads. Surplus stored water
from La Jagua, is drained into Las Delicias ravine and the
Tucuy river after sedimentation.
Domestic waste water at all our operations is treated,
prior to dumping, by compact treatment systems that
remove 90% of contaminants.
In 2011, we treated 64% of our waste water. The percentage of treated water decreased by 12% due to the
new equipment maintenance shops at our Calenturitas
and La Jagua operations, which do not generate waste
water. We are currently constructing two settling ponds
to treat waste water from our integrated mining operations at the La Jagua mine. This will help us to achieve
the goal we have set for 2012, which is to treat 100% of
the water from this mine’s pits.
We do not use water that has been discharged by third
parties, nor are our discharges used by third parties in
their activities.
When the two settling ponds planned for construction
at the La Jagua mine begin operation, these values will
decrease considerably.
Water discharges
m3 in 2011
%
Treated wastewater discharges
99,828
64%
Untreated wastewater discharges
55,558
36%
155,386
100%
Total
Effluent composition in 2011
Parameter
Discharged (tonnes)
Total suspended solids
1,226
Chemical Oxygen Demand (COD)
771
Biological Oxygen Demand (BOD)
450
52
Prodeco
Air emissions
Dust
One of the largest impacts of open-pit mining, especially in dry and high-temperature areas like those at our
areas of operation, is the dust generation.
In 2007, the mining companies operating in the department of Cesar donated their dust emission equipment and
monitoring stations to the regional environmental authority
(Corporación Autónoma Regional del Cesar or Corpocesar).
With this equipment, and with the support of mining
companies, the Cesar Air Quality Network was formed.
This agency is managed by Corpocesar and currently
operates through the Industrial University of Santander.
The network currently has 16 measurement sites and 27
monitors (16 PM10 monitors, 10 TSP monitors and one
PM2.5 monitor) that measure the amount of ultrafine
particles in the environment. As it is managed by the
regional environmental authority and operated by an
independent third party, the fairness and accuracy of
the data recorded is ensured.
In 2011, the regional environmental authority started measuring PM2.5 levels. Consequently, the network began meas-
uring this parameter, quantifying particles that may affect
the respiratory system (particles smaller than 2.5 microns).
++ Wetting of roads, transfer points and unloading hoppers.
In Santa Marta, where Puerto Prodeco is located, a
similar air quality network operates, managed by the
Regional Autonomous Corporation of Magdalena (Corpamag). The network has 14 measurement points and
16 monitors (7 PM10 monitors and 9 TSP monitors). The
goal by 2012 is to include three PM10 monitors, to be
located in Puerto Nuevo’s area of influence.
++ Compacting and wetting the coal in our railroad wagons.
The Prodeco Group also maintains and controls six additional air quality monitoring stations for in and around
the mines’ area of influence. These monitors are used to
gather data in areas not covered by the Cesar Air Quality
Network and complement its work. This allows corrective
action to be taken more effectively and immediately.
As our operations are close to those of other mining
companies, we cannot specify the dust emission levels generated by our operations. However, the areas of
our operations that produce the highest emissions are
heavy and light roadways within the operations, coal
piles, and the mining pits. To reduce and control these
impacts, we have applied a series of dust reduction
measures, including:
++ Covers on conveyor belts.
++ Covering our train loading and unloading stations.
++ We increased the tanker fleet as follows: at the Calenturitas
mine, we have a fleet of 10 tankers (eight 20,000-gallon and
two 5,000-gallon tankers), and at the La Jagua’s combined
operations we have nine tankers (five 20,000-gallon, one
6,000-gallon and three 4,000-gallon tankers).
++ In 2011 we combined the coal stockpiles at the La
Jagua mine, changing from four coal piles to a single
pile equipped with emission control technology. This
amalgamation considerably reduces particle generation.
++ Paving of 11.2 kilometres of the road between La Jagua de
Ibirico and Boquerón, as previously detailed.
Our goal for 2012 is to pave 8.3 kilometres of
the road from the La Jagua coal pile to the mine
entrance checkpoint and from the Calenturitas
mine entrance to its coal pile. This will improve
the air quality of our mining operations and
reduce the water needed to wet our internal
roadways.
53
5 Calculation based on tools provided by
the Greenhouse Gas Protocol.
6 Assuming an average carbon emissions
factor of 120 g CO2/kWh for Colombia
between 2006 and 2008, as set forth in
CO2 Emissions from Fuel Combustion –
Highlights, Edition 2010, International
Energy Agency.
Greenhouse gas emissions
Our main source of greenhouse gas (GHG) emissions
is the use of fossil fuels (diesel). In 2011, 497 thousand
MT of CO2 were emitted as a result of the consumption
of 156 thousand MT of diesel5. This represents a 25%
increase compared to our consumption in 2010 and is
due to the growth of our operation in sector A of the
Calenturitas mine and the increase in production at the
La Jagua mine.
There are additional GHG emissions associated with coal
extraction and processing. According to the calculation
methods presented in the IPCC 2006 Guidelines (the Intergovernmental Panel on Climate Change), these emissions can be estimated at 12,704 MT of methane (CH4),
corresponding to a CO2 equivalent of about 317,000 MT.
This represents a 46% increase compared to 2010 and is
the result of increased production at both mines.
54
Prodeco
CO2 emissions from the electricity used in 2011 correspond
to 6,700 MT6.
In total, our direct and indirect CO2 emissions came to
821,000 MT in 2011. This represents a rise of 32% and
was caused by the increased volume of operations at
the Calenturitas and La Jagua mines.
Additional GHG emissions result from the transport of
coal from the La Jagua mine to the Calenturitas mine,
the transport of coal from the Calenturitas mine to Puerto Prodeco, and the floating cranes operating in Puerto Prodeco. However, some of these emissions will
be reduced considerably when Puerto Nuevo goes into
operation in early 2013, as the new port will replace the
existing operation at Puerto Prodeco. At that time, nine
barges and six floating cranes will cease to operate.
NOx
SO2
CO
NMVOC
Quantity
(tonnes)
Change (%)
5,120
24.87
156
24.80
1,673
24.75
12,197
44.8
Other emissions
Apart from dust and GHG emissions, there are additional emissions from diesel combustion in our mobile
machinery and from coal handling. Based on emission
factors taken from the European Environment Agency
EMEP/EEA Guide 2009 emissions inventory, we generated
the following emissions:
Waste
General waste from the mines is dealt with by a contractor from the local community who collects and recycles
it when possible and is responsible for putting it in landfill. The waste from Puerto Prodeco and Puerto Nuevo is
handled by the municipal cleaning service. In 2011, of
1,378 MT of waste we generated, we recycled 69 MT of
glass, cardboard, and plastic.
Hazardous waste, such as batteries, oil filters and used
oil is dealt with by a specialised contractor with the appropriate license issued from the Colombian environmental authority. In 2011, around 76% (1,811 MT) of our
2,379 MT of hazardous waste was used oil, which was
recycled by the contractor company as a mix of fuel, in
accordance with the percentages allowed by Colombian regulations. The rest of the waste was incinerated.
Our operations generated 263,873,294 MT of waste rock
in 2011 (by using 41,204 MT of explosives), representing a 40% increase in comparison with 2010, caused by
the growth in production in sector A of the Calenturitas
mine and at the La Jagua mine.
Some of the waste rock was used to fill the pit (backfilling)
and the rest was saved in waste dumps for future reclamations. Rock analyses have shown that no acid drainage has
occurred. In addition to our handling procedures for rock,
we store the topsoil removed during our excavations separately in independent stockpiles so that it keeps its agrological properties and can be used in future reclamations.
”
Parameter
In 2011, we
recycled 69 MT of
glass, cardboard,
and plastic
55
”
Biodiversity
Conservation of wildlife
and vegetation
Our mining activities have biodiversity management plans
(BMP), which consider the protection of local ecosystems
and prevention of biodiversity loss. A full study and assessment is carried out for these plans, covering the areas to be
set aside for mining, to identify the wildlife and vegetation
with the aim of designing specific plans for their appropriate handling, protection and preservation.
Our evaluation has established that 272 species of birds, 28
species of mammals, 58 species of reptiles and 14 species
of frogs live in the planned mining area between La Jagua
de Ibirico, El Paso, and Becerril.
In 2011, we rescued 1,682 animals. In addition 9,112
fish were relocated during the relocation of the Caimancito stream.
In terms of vegetation, the area is classified as a dry
tropical forest.
Before clearing the area where mining will take place,
we collect seeds from the trees and, whenever possible,
move young trees to preserve the germ plasm of local
ecosystems. This protects native species and ensures
biological material for the future reclamation of areas
where mining activity has ceased. In 2011, we collected
nine kilograms of seeds from native species.
We have three plant nurseries for our operations: at the
La Jagua mine, the nursery La Lucy produced no seedlings in 2011 as there were excess seedlings from 2010; at
the Calenturitas mine, the Marañones nursery produced
Species established
In 2011, we
rescued
1,682
animals
and
relocated
9,112 fish.
Birds
Mammals
”
56
Reptiles
Frogs
Prodeco
272
28
58
14
”
7,210 seedlings in 2011 and at Puerto Prodeco, the nursery produced 4,050 seedlings. All the seedlings are used
in our diverse reforestation programs and the majority of
seedlings used in our reclamation processes are native.
Trees planted
Area
2011
La Jagua
41,250
Calenturitas
11,116
Puerto Nuevo
1,690
Total
54,056
Land reclamation
In 2011, the Prodeco Group disturbed 522 hectares and
reclaimed 53 hectares of land. The total area of disturbance from our activities comes to 2,898 hectares, 295
of which have already been rehabilitated.
In 2011, we hired the Pro Sierra Nevada de Santa Marta
Foundation (Prosierra) to create a forestry offset programme, which covers over 8,120 hectares of land in
the Pachita and Mata de Palma swamps and around
the sources of the rivers Tucuy and Maracas. This programme will incorporate the forest offset obligations
of all the mining projects at La Jagua and Calenturitas.
We are currently agreeing the plan with Corpocesar. The
plan will be presented for approval to the Ministry of
the Environment and Sustainable Development in 2012,
and put into action as soon as we receive this approval.
Since 2010 we have also been developing a forestry
offset programme in the Serranía del Perijá, on the
advice of Prosierra, which will revegetate more than
2,000 hectares of forest (see Environmental Projects
59). The programme has been initiated because the La
Jagua mine is situated in what was part of the Serranía
de Los Motilones nature reserve. When the Prodeco
Group obtained the concession, most this area had already been mined without removing it from the forest
reserve. For this reason, we put forward a request for
the mined area to be removed from the nature reserve
and to work with the Colombian government to establish suitable environmental offsets within the forest
reserve area.
Furthermore, we have been carrying out additional
reforestation work in the Sierra Nevada de Santa
Marta, within the Pachamama forest reserve, to protect the middle and upper basin of the Toribio river.
In 2011, we planted 1,000 seedlings, including timber
and fruit species.
57
Environmental incidents
We classify our
environmental incidents
by importance, monitor
corrective action taken and
the consequent learnings, in
accordance with GCP.
++ Class A: Major: Incident or spill with a major
environmental impact that has a long-term
effect reversible only by subsequent longterm remediation.
++ Class B: Moderate: Incident or spill with a
significant reversible environmental impact
requiring remediation but not necessarily
aftercare.
++ Class C: Minor: Incident or spill with a minor
reversible environmental impact requiring
minor to no remediation with no aftercare.
++ Near-miss incident (NMI): An incident that
under slightly different circumstances could
have caused illness, injury, or damage to
individuals, assets, the environment or the
company’s reputation, but did not.
In 2011, 18 incidents were recorded, all of which were
classed as minor. 2011 saw a decrease of 40% on this
figure. This was due to the best environmental practices
being used and the commissioning of new infrastructure,
mainly in areas where fuel and lubricants are handled. In
2011, there were no environmental sanctions.
58
Prodeco
Environmental projects
The Serranía del Perijá
forestry offset programme
The Prodeco Group supports projects that contribute
to the development of the regions in which it works, as
part of its search to generate sustainable development
in the areas where it operates. This is a reflection of our
responsibility towards society.
Our forestry offset plan for the Tucuy river basin is an
ambitious project that is being developed with the Ministry
of the Environment and Sustainable Development,
Corpocesar, Prosierra and the inhabitants of the village La
Victoria de San Isidro, in the municipality of La Jagua de
Ibirico, in the department of Cesar.
USD 3.4 M
With an investment of more than USD 3.4
M the Prodeco Group finances the forestry
offset plan for the Tucuy river
This plan is part of our commitment to offset areas
affected by mining. The programme seeks to revegetate
more than 2,000 hectares of forest in the Serranía del
Perijá and set it aside for conservation to create natural
corridors in the upper basin of the Tucuy River. The aim
is to protect and regulate a water source that provides
water to the majority of the rural and urban population
of the region.
The programme submitted to the environmental
authorities took the views of the local communities
into account. It went beyond reforestation to include
activities that directly involved inhabitants, with the aim
of creating economic, social and environmental benefits.
The participation of 74 owners of farms located in the
districts of Zumbador, Altos de las Flores, Argentina Norte
and Nueva Granada is fundamental to this programme.
The farms were selected during a preliminary process and
undertook to release part of their land for reclamation
and conservation of the natural conditions of the basin
for a period of 15 years. Now referred to as environmental
protectors, these farmers are responsible for taking care
of and defending the basin.
The environmental protectors will receive a financial
incentive from the Prodeco Group for 48 months; we
aim to move the agro-ecological plan forward on their
properties and provide them with adequate alternatives
for production until they are economically sustainable.
Also with the funding of the Prodeco Group, the farmers
will be given technical support and training for the
establishment of commercial profitable projects by
Prosierra, the organisation chosen to manage and run
the programme.
59
This initiative is intended to offer alternatives for
sustainable production through crops with high economic
potential (such as coffee, cocoa, avocados, tree tomatoes,
lulo (Solanum quitoense) and bananas), subsistence crops
and timber species. These plantations help establish
agroforestry systems that can drive the region’s agricultural
capacity and replace inadequate crop practices.
Above all, these crops will give the environmental
protectors a source of income to compensate for the
areas protected by the Serranía del Perijá forestry
offset plan.
Supplementary actions are also being promoted by
Prosierra, such as the adaptation and maintenance
of stubble fields. These actions would reclaim these
areas and set them aside for conservation, allowing
previously agriculturally exploited farms to be used for
conservation and environmental protection.
The forestry offset plan will require an investment of
USD 3,429,942 by the Prodeco Group. The benefits
divide into three areas.
Economic
++ Setting up 196 hectares of sustainable
production systems, with practices
adapted to agroforestry production,
will drive the area’s agricultural development.
++ It will create income sources for more
than 260 people.
++ An increase in the regional agricultural supply with products such as
avocados, cocoa, coffee, lulo, tree tomatoes and bananas.
3,429,942
The forestry offset plan will require an investment
of USD 3,429,942 by the Prodeco Group
“I have been living in this beautiful district for 19 years,
and we are very happy with the contribution that
Prodeco is making because we’re developing a spectacular project; in my district not only are we cultivating
avocados and cocoa beans, but also subsistence crops
like bananas, corn, and beans. Moreover, Prodeco has
offered us very good workshops in which we have learnt
to live in harmony with others (…) An environmental
protector is aware of the environment, of looking after
the water; we know that we can’t cut down trees or burn
them. It’s an education not only for me, but for younger
generations.”
Abimael Bonilla
60
Prodeco
“I have learned to take care of
the environment, the woods,
the animals. Others are learning from me.”
Víctor Manuel,
Environmental Protector
Environmental
Social
++ Revegatation of 2,124 hectares of land
set aside for conservation.
++ The implementation of social actions aimed at improving healthcare, education and road infrastructure for the programme’s
beneficiaries, approximately 135
families.
++ The creation of safe havens for wildlife.
++ The creation of biodiversity corridors.
++ An improvement in the basic nutritional diet of the inhabitants
due to the implementation of subsistence crops.
++ The protection of soil and erosion
control.
++ Water regulation.
++ Workshops and training at schools
in the districts, aimed at the population, to promote a sense of belonging to the area and to create
awareness in terms of environmental protection.
++ A decrease in the practice of burning
woodlands.
++ Planting with more efficient and
cleaner agricultural techniques that
ensures the appropriate use of pesticides.
“The valleys were drying up
and the land was losing life.
The program is a source of
pride. For example, I didn’t
know how to grow things
properly, and I’ve learned how
to do it with organic fertilizers
and not chemical ones.”
“I am very happy with the program.
My farm was empty, now it has
crops. Being a Protector is protecting the environment. The program
arrived here with many initiatives
and this is changing things. Before
we grew crops however we wanted.
Now we have technical assistance.”
Abel Julio Hernández,
Environmental Protector
José Pérez, Environmental
Protector
61
The Serranía
del Perijá
forestry offset
plan in 2011:
++ As of December 2011, the Prodeco Group has paid USD 430,865 to our
environmental protectors, of which USD 214,367 were incentive payments.
++ We have established a target for landscape management: 52 hectares for
settlement and biodiversity corridors, and 140 hectares for enrichment.
++ By December 2011, 178 hectares had been established as agroforestry
systems (AFS), out of our ultimate target of 193.5 hectares.
++ The subsistence crops established for the environmental protectors produced
over 616kg of bananas, 717kg of beans, and 667kg of yucca, among other
crops.
++ Prosierra undertook nine workshops and courses over this period, both for
environmental protectors and for the local communities. These included
agroforestry workshops, workshops on the preparation of microbiological
fertilisers or culture mediums, workshops on farm design and agriculture
without stubble burning (enabling farmers to contribute to the management
of the Tucuy river basin), and courses on soil restoration, setting up nurseries,
vegetable gardens, control and prevention of fires, prevention and
management of illnesses and first aid.
++ Other activities of
communal benefit were
carried out, including:
* Evaluation and assessment of the
Community Action Boards in the
districts of Alto de las Flores, Zumbador
and Argentina Norte to allow their
restructuring and improvement;
* The nomination of healthcare volunteers
and start of their training process;
* Support for the development of two
healthcare teams in Nueva Grenada and
Alto de las Flores, led by the Mayor’s office
in La Jagua de Ibirico.
* Maintaining and improving roads from
the village of La Victoria de San Isidro
to the districts of Argentina Norte and
Argentina Sur;
++ Infrastructure
improvements were made:
* The construction of three runoff drains
at critical points along this road;
* Improvement of infrastructure for
schools in the districts of Argentina
Norte and Alto de las Flores, with
community support.
62
Prodeco
Environmental School Education
Programme (PRAE)
We have been working on the design and implementation
of Environmental School Education Projects (PRAEs) in
seven local schools, with the support of our contractor
Portafolio Verde SAS and of teachers at these schools.
According to the Colombian government’s national
environmental education policy, created in 2002,
“addressing the systemic nature of the environment,
Environmental Education must be considered as the
process that allows the individual to understand relations
of interdependence with his surroundings, based on
thoughtful and critical knowledge of his biophysical,
political, economic, social, and cultural reality so that, based
on the idea of taking ownership of this concrete reality,
attitudes of value and respect for the environment may be
generated within the individual and his community 7.”
The seven PRAEs promote the analysis and
understanding of problems and regional environmental
potential, creating opportunities for the participating
schools to join in while bringing good environmental
practices into these schools’ academic curriculums.
The participating schools are located in the areas of direct
influence of the mines of La Jagua, Puerto Prodeco, and
Puerto Nuevo, within: Estados Unidos, in the municipality
of Becerril (Cesar); La Victoria de San Isidro, in the
municipality of La Jagua de Ibirico (Cesar); municipal
centres in La Jagua de Ibirico and Becerril; the village La
Loma, in the municipality of El Paso (Cesar); Costa Verde
district, in the municipality of Ciénaga (Magdalena);
and the municipal centre Ciénaga, Comuna 8 of the
municipality of Santa Marta (Magdalena).
In 2012, experts in this area will support the
implementation of the programme in institutions and
the education community, so that those who participate
in the project will be able to run the projects themselves.
7 National Policy of
Environmental Education
formulated in 2002.
Schools where PRAE programmes are run
Id
School
Location
1
Educational Institution Alianza para El Progreso
Ciénaga (Magdalena)
2
Municipal Secondary Educational Institution Alfredo
Correa D’Andrés (previously Inemuba)
3
Bellavista District Educational Centre
4
La Victoria Agricultural Education Institution
La Jagua de Ibirico (Cesar)
5
Trujillo Educational institution
Becerril (Cesar)
6
Luis Carlos Galán Educational Institution (Colnorte)
La Jagua de Ibirico (Cesar)
7
Benito Ramos Trespalacios Educational Institution
La Loma settlement, El Paso (Cesar)
63
Through our
non-profit
foundations,
we reinforce
our presence
in the
community
and bring our
investment
programmes
to life
64
Prodeco
6
Our social commitment
65
Our social commitment
It is our priority to approach the local communities with a focus on their social development and
their surroundings.
The foundations
of the Prodeco group
We are committed to the development of the areas
around our operations. All of our projects respect the local people and the individuality of their communities and
land. We achieve this with transparent communication,
local development management and engaging communities in the work of our foundations. We maintain open
communication channels with the local communities
with a good neighbour policy and open dialogue.
vice the communities in the municipalities of El Paso,
Becerril, and La Jagua de Ibirico (department of Cesar),
which are in the area of direct influence of our mines.
In turn, the Prodeco Foundation (founded in 2009)
services the communities in the area of influence of
Puerto Prodeco, formed of the neighbourhoods of the
so-called Comuna 8: Don Jaca, Pozos Colorados, Aeromar, Los Lirios, Cristo Rey, and others.
Through our non-profit foundations, we reinforce our
presence in the community and bring our investment
programmes to life:
In addition, Sociedad Portuaria Puerto Nuevo S.A. has
a community service office in downtown Ciénaga. It
was launched in March 2011 and offers service and
support for the social programmes offered by Puerto
Nuevo.
The Calenturitas Foundation and the La Jagua Foundation (founded in 2002 and 2005, respectively) ser-
Carrers studied by our scholarship holders
5%
11%
Financial Administration
and Banking
Law
16%
GradUATES
5%
DEGREE IN PRIMARY
EDUCATION
16%
11%
Environmental
Engineering and
Health
NURSING
5%
iNTERNATIONAL
BUSINESS
5%
Degree in
Mathematics
and Physics
5%
MEDICINE
5%
11%
CIVIL ENGINEERING
Electrical
Engineering
5%
Degree in English
and Spanish
Language
11%
5%
IT technician
66
Prodeco
Business
Administration
84%
STUDENTS
Total Students: 16
Total GRADUATES: 3
Our priorities in social investment are education, healthcare, basic infrastructure, and entrepreneurial projects. The
initiatives to achieve our investment plans are developed
in accordance with the interests and perspectives of each
community. This is made possible thanks to our ongoing
communications with them and to the participation and
leadership of their members in formulating proposals.
Education and training
In 2011, the Prodeco Group awarded 10 university
scholarships to youth from the departments of Cesar
and of Magdalena. In total, the Prodeco Group has provided scholarships to 17 young people, including the
10 new ones awarded in 2011. Three scholarship holders have already graduated and several have undertaken their professional work practice at companies of
the Prodeco Group or in the town halls of their municipalities, offering their knowledge to their communities.
Through our Scholarship Plan, the scholarship
holders have their tuition fees paid and are given a
monthly allowance for living expenses for the duration of their course.
Places of origin of our
scholarship holders:
Testimonies
of scholarship
holders
5%
ARACORAIMA
5%
27%
BECERRIL
LA VICTORIA
Yady Andrea Dávila,
20 years old.
5%
LAS PALMITAS
32%
Expert in International Business, University of Magdalena. Beneficiary of the Scholarship Plan
COMUNA 8
5%
LA LOMA
16%
LA JAGUA
5%
EL PASO
“When I was a child, I dreamt of being a teacher, or
perhaps a fashion designer. One day I realised that,
to make my wishes come true, I would have to turn
them into goals; and so I began to fill myself with courage and take important steps to build the path which
would take me where I wanted: to be an expert in international business. Today, I want to give my family a
better future and thanks to the Prodeco Foundation, I
will be able to do it.”
67
We strengthen community participation by training and
instructing their leaders so they may contribute to the
plans for development and for participative budgets.
This allows communities to influence regional public
policies and the proper investment of royalties.
To that end, we formed an alliance with the Higher School
of Public Administration (ESAP), the Andean Development
Corporation (CAF), and the University of Magdalena,
creating diplomas and courses in Transformational
Leadership, Royalty Management, and Citizen Oversight. In
2011, we provided training on these topics to 108 leaders
from the municipalities of La Jagua de Ibirico and Becerril
(in the department of Cesar) and of Ciénaga (in Magdalena).
Furthermore, as a special project, the Prodeco
Foundation donated funding for the Cristo Rey municipal
recreation centre in the Los Lirios neighbourhood. It also
provided funding for schoolrooms at the educational
institutions of Don Jaca and Bellavista in Santa Marta.
Through this funding, we support approximately 530
students, improving the quality of education in these
communities by creating facilities so that the children
have appropriate materials for their classes.
In addition, as part of the project “The School Seeks a
Child”, organized by the University of Magdalena, we
arranged for the Systems Engineering students at that
institution to carry out their work studies at the Aeromar
Educational Institution by teaching there.
68
Vida (Festival of Life) in the municipalities of La Jagua de
Ibirico and Becerril.
The programme tackles psychosocial problems affecting
young people in our area of influence, such as teen
pregnancies, sexually transmitted diseases, addictions,
domestic violence, child prostitution and others.
To approach these problems, the company has been
implementing two special projects in the framework
of the Life Networks Programme: (i) the Festival of Life,
an initiative created to provide free services in general
medicine and dentistry to communities in rural areas.
In 2011, approximately 7,600 persons participated
from the municipalities of Becerril and Ciénaga. (ii) The
project Baby? Think It Over! which is an initiative to raise
awareness in adolescents about the responsibilities
of having an unwanted baby as a minor. In 2011, the
programme was implemented in the municipality of
Becerril, aiding 2,500 students at the Trujillo School.
In the area of influence of Puerto Nuevo, in the framework
of psycho-social assistance projects for children and adults
in Ciénaga, we launched our Life Networks Programme,
which started with a strategic plan to identify the potential
and interests of our neighbouring communities.
Infrastructure programmes
Healthcare programmes
Improving the physical conditions in our communities is
part of the commitment we shouldered to improve the
quality of life of their inhabitants.
In 2011, we extended our Redes de Vida (Life Networks; see
page 72) programme, along with its project Festival de la
We built an aqueduct in the district of Tucuycito in the
municipality of Becerril (department of Cesar), improving
Prodeco
To do so, we built and equipped a poultry shed of laying
hens in the settlement of Boquerón and another in La
Victoria de San Isidro (in Cesar). These projects benefit
30 families from La Victoria de San Isidro, represented
by female heads of family belonging to the Farmers Association of La Victoria de San Isidro, and a further 15
families from Boquerón. These families received training
in managing these types of production projects.
Moreover, we built an exhibition and sales room for the
the quality of life for more than 35 families in this district
who did not previously have access to drinking water.
In addition, we made improvements to the community
headquarters for the district of La Victoria de San Isidro,
benefiting approximately 1,500 inhabitants.
In the vicinity of our port operations in Santa Marta, we
upgraded the computer room at the Aeromar Educational Institution and the toilets at the Don Jaca Education Centre.
In addition, with participation from Energía Social and
other players, we upgraded the electrical power system
in the Don Jaca neighbourhood, so as to provide coverage to a total of 130 families.
We built and equipped a healthcare centre in the settlement of Cordobitas. This has allowed, among other
things, the creation of healthcare teams, the inclusion
of the community in the Goverment΄s National System
for the Identification and Classification of Potential Beneficiaries for Social Programmes (SISBEN), vaccination
campaigns, service days for expectant mothers, and programmes to monitor the growth of children from 0 to 5
years old. This healthcare centre offers services to more
than 450 inhabitants from the settlement of Cordobitas.
Production and
entrepreneurial projects
We support the inhabitants of our neighbouring communities through production and entrepreneurial projects
putting the community on the path to economic and administrative sustainability, particularly generating employment in activities other than mining.
art works produced by the Coal-Carving Artisans Association (Asociación de Artesanos de la Talla del Carbón),
with the aim of offering strategic support to this association to sell its products. This association has more than
60 members.
In 2011, we built septic tanks for the pig sties at the
Octavio Mendoza Technical Agro-Industrial Institution,
located in the village of Cuatro Vientos, in the municipality of El Paso. Students took part in the technical decision-making processes related to building and installing these pig sties. In addition, they received training
in cleaning and maintaining the sties΄s runoff system
through workshops to increase their technical skills. This
project continued our ongoing support of agro-industrial skills and knowledge for the students of this institution, which started in 2010 with the provision of fishponds and an irrigation area in this institution. Since we
began this support, we have benefited approximately
1,700 students.
In Becerril, we built an industrial clothing factory, used by
45 female family heads belonging to different Becerril associations engaged in the production of industrial clothing. This project received support from Asojuntas and the
Becerril mayor’s office.
In Santa Marta, we equipped the artisanal fishing communities of Pozos Colorados, Aeropuerto, and Don
Jaca with maritime safety equipment and trained them
in their use. We also supported them with a training
programme on good fishing practices. This project
benefited 90 fishermen, of which 43 were certified in
the use of this equipment. This project received support from the Coast Guard of the Colombian Navy, the
General Maritime Directorate, and the Colombian Institute for Rural Development.
69
Special strategic
programmes
In the month of December, we organized recreational
and leisure activities for 2,017 children in order to
promote occasions for integration and outreach with
the youth population in the areas of influence of our
operations in Cesar and Magdalena.
In 2011, we continued our support for inhabitants in La
Jagua de Ibirico and Becerril by delivering uniforms to
a group of young sports enthusiasts who are regular
football players in order to motivate them in the good
use of their free time. In addition, we supported the
Ángela María Suárez Torres Education Institution in the
municipality of Becerril by painting its classrooms, thus
contributing to improving the environment for over
3,500 students.
In Santa Marta, we support various initiatives from
the office of the First Lady of the Santa Marta district,
carrying out activities together in order to disseminate
and internalise information about the rights of children
and promoting adequate use of free time. These
activities benefit approximately 850 boys and girls
from Comuna 8.
People
450
Building a healthcare centre
Inhabitants
1,500
2,500
Improvement of the community hall in La
Victoria de San Isidro
Baby? Think It Over!
Families
People
165
10,191
Aqueduct and electrical power upgrades
Life Networks (Festival of Life)
Basic social
infrastructure
programs
70
Adolescents
Prodeco
Healthcare
programs
Fishermen
90
Provision of maritime equipment for
artisanal fishermen
Students
Children
Members
530
850
60
Equipping and upgrading schoolrooms
Support for the Office of the President’s
program for children
Construction of exhibition hall for works
of art by the Asoartesanos
Students
Students
Students
10
3,500
1,700
Scholarship Plan
Physical upgrading of schoolrooms
Agro-industrial projects
Leaders
Children
Families
108
2,017
45
Diploma in leadership and courses in
citizen oversight and royalty management.
Recreational activities and delivery
of Christmas gifts
Construction of poultry projects
Education
and training
program
Special
programs
Production
projects
71
Special
projects
The life networks
programme
The La Jagua Foundation, which works in the municipalities of Becerril and La Jagua de Ibirico, identified problems
with high rates of teen pregnancy and other psychosocial
problems, such as addiction, domestic violence, sexual
abuse, lack of life projects and low self-esteem.
In 2010 it therefore began an investigation to determine
the causes of these problems, which can not only lead
young people to become teen parents, but can also increase into more serious psychosocial problems.
The foundation’s response was the Life Networks programme. This programme’s objective is to promote
healthy cultural practices among the children and teenagers local to our mining and port operations. This will
hopefully decrease the main problems affecting their
psychosocial development.
The programme’s success has led to its implementation
by the Prodeco Group’s other foundations in 2012.
As part of the programme’s development, it is taking on
and incorporating our “Baby? Think It Over!” programme.
This uses baby simulators (portable computers inside a
doll that acts like a new-born baby) to give young people
the experience of continuous uninterrupted responsibility for a “baby.” This allows them to more accurately assess how their lives would change if they had a baby, and
whether they are really prepared for this commitment.
This programme also allows us to identify cases that
might be at risk of child abuse, and require the intervention of organisations like the Colombian Institute
of Family Welfare, Family Commissions and the Police for Children and Teenagers, who work with this
programme.
The Life Networks programme is also developing the
Festival of Life, a strategy to reach communities in rural
areas, which are part of our areas of influence but where
we are unable to maintain a constant presence.
72
Prodeco
This programme offers healthcare, recreational, cultural
and sports services that can notably improve the quality
of life for these communities. Contractors from our mining projects and service providers are linked to this activity, developing close direct contact with these communities and creating a social support network.
Achievements
We have achieved surprising results through “Baby? Think
It Over!” in very little time. The most important one is the
fact that we have helped reverse the trend of teenage
pregnancy in the municipality of La Jagua de Ibirico by introducing this programme in this municipality’s schools.
In 2011, the company Realityworks Inc, which created
the “Baby? Think It Over!” tool, gave a special mention
to the Prodeco Group for being the only organisation
in Latin America to have created a programme of great
community impact with its tools. “We congratulate the
La Jagua Foundation for the professional work it has done
and its impact on communities.”
Activities in 2011
In 2011, the Life Networks programme educated
3,800 young people on “Life Project”, giving them
the skills to spread the Life Networks information
themselves. We followed this up with our “Launch
the Network” activities, which consist of the participating students visiting schools, organising talks on
healthy lifestyles and preventing addictions. We organised 80 events and educated 1,331 students from
schools in the municipalities of La Jagua de Ibirico
and Becerril. The programme also organised 15 educational events for 1,859 young people this year,
through talks and film clubs on topics related to the
prevention of teen pregnancies.
We organised 101 motherhood/fatherhood simulations through “Baby? Think It Over!” Of these, 56 were
identified as cases at risk of abuse or negligence in
how they treated their “babies”. These special cases
were given support by the Family Commission and
the Colombian Institute of Family Welfare. We also
used the Life Festivals to carry out 39 simulations for
young people in rural areas of our areas of influence.
Seventeen employees of the Prodeco Group from the
Barranquilla administrative division took part in the
experience to raise awareness within our company.
Resettlements
Air quality monitoring in the area led to a governmental decree issued by the Ministry of the Environment
and Sustainable Development. This ordered CI Prodeco SA and three other mining concession owners in
the region to resettle the communities of Plan Bonito,
El Hatillo, and Boquerón. They are located in the municipalities of El Paso and La Jagua de Ibirico, in the
department of Cesar. This process will affect approximately 600 households.
The project began in 2011 with the contracting of
the National Financial Fund for Development Projects
(FONADE), an industrial and commercial state company that took responsibility for implementing the initial
phase of resettlement. The aim was to establish a baseline of the villages subject to resettlement and collect
all the data required to organise and design a resettlement action plan (RAP) with the necessary elements
for the relocation process.
During an assessment and community consultation
carried out at the end of the year 2011, it became clear
that residents’ expectations were not being met by the
process. For this reason, the four companies appointed
an additional external team to support and expedite activities. To undertake this task the companies appointed
RePlan Inc., a world-renowned company with both local Colombian and international resettlement expertise,
which deployed a team of experts at the beginning of
2012. They have met with community representatives in
Plan Bonito, El Hatillo and Boquerón and have collaboratively established negotiation committees, created
committee’s rules and procedures and have established
fluent and harmonious relationships, which has helped
the process to advance properly.
Main achievements
of 2011:
++ The Government’s decision to resettle these populations and the impact and scope of this order
was disseminated among the communities of
Plan Bonito, El Hatillo, and Boquerón and among
local and departmental authorities.
++ The socio-economic census of the Plan Bonito
settlement was carried out.
++ The topographical and cadastral survey of the
constructions and buildings located in Plan Bonito was carried out.
Objectives for 2012:
++ To continue building trust and harmonious
relations with the communities involved in the
resenttlement process.
++ To rectify certain gaps and inconsistencies
found in the information compiled in 2011.
++ To complete the design and preparation of
the RAP for the process, which must include
specific needs and actions for every community
to be resettled, and to begin implementation.
++ To link the settlement of Boquerón to the
process.
Despite the difficulties we have faced, Prodeco is committed to carrying out this process in the best and most
responsible manner. Our objective is to ensure that the
resettlement communities improve their quality of life
and are fully satisfied with their new areas of residence.
We comply with best practices in this field; this includes
the International Finance Corporation’s Environmental and
Social Sustainability Performance Standard 1 (Assessment
and Management of Environmental and Social Risks and
Impacts), Standard 5 (Land Acquisition and Involuntary Resettlement) and Standard 8 (Cultural Heritage).
73
Our goals
Goal
What we will do to achieve it
Timeline
Health and Safety
Zero fatalities
LTIFR < 1
(lost time injury frequency rate)
TRIFR < 6
(total recordable injury
frequency rate)
PDFR < 15
(property damage
frequency rate)
Decrease rates
of occupational diseases
74
Prodeco
Update our list of critical activities with a higher
fatality risk
31/10/2012
Implement an audit plan for critical activities
30/11/2012
Apply the certification programmes for work at
height and critical tasks
30/06/2013
Certify operators for special equipment
30/06/2013
Perform monthly monitoring of the activity plan
based on the corporate health and safety programme
31/08/2012
Update our operation’s risks analysis
30/09/2012
Implement protocols to disclose changes in each
operation to the general public
30/11/2012
Verify compliance using Job Safety Analysis (JSA)
31/08/2012
Verify compliance with the application of safe task
permits for high-risk activities
31/08/2012
Certify the training programme “La Escuelita”
Ongoing
Implement a programme for the correct order and
cleanness of our workplaces
30/04/2013
Verify compliance with programme for job orientation, reorientation, and defensive handling
Ongoing
Promote the investigation of accidents using the
ICAM methodology
30/11/2012
Perform monthly monitoring of the training plan
Ongoing
Implement a signage project for work areas
31/12/2013
Promote the logging system for non-compliance in
health and safety
31/08/2012
Update epidemiological surveillance programmes
31/12/2012
Apply hygienic risk measures (noise, particulate matter, vibration, heat stress, lighting)
30/06/2013
Update job profiles for all positions
30/09/2012
Analyse problems concerning high number of workers with medical restrictions
31/10/2012
Implement the fatigue management programme
31/12/2013
Implement the management programme for workers
with medical restrictions
31/12/2013
Strengthen the Healthy Lifestyle programme
Ongoing
Goal
What we will do to achieve it
Timeline
Enviromental
Reduce minor environmental
incidents by 5%
Ongoing inspections of areas with highest risk of
incidents
Train personnel who handle fuels and lubricants
31/12/2012
Investigate any incidents and monitor plans of action
Train personnel in waste management
Increase amount of material
recycled by 15%
Monitor progress in amounts of material recycled by
the contractor firm with expertise in waste management
31/12/2012
Revegetate 80 hectares in our
mining operations
Plan periodic meetings with mine management to
monitor revegetation plan
31/12/2012
Reduce total suspended solids
discharged into surface water
sources by 30%
Build settling ponds for pump works at the La Jagua
mine
01/06/2013
Measure and monitor all indicators at Puerto Nuevo
Implement data gathering mechanisms
31/12/2012
Our projects
Health and Safety Projects
OHSAS 18001
Align the Prodeco Group's safety management system with the requirements of OHSAS 18001.
31/12/2013
SAFESTART programme
Develop our safety culture to help workers prevent
errors and incidents.
31/12/2013
Safety programme for contractors
Implement a safety programme for contractors
through audits and monitoring plans.
31/12/2013
Fatigue management programme
Implement a fatigue management program for all
business units.
30/06/2013
Programme for employees on
restricted work
Implement a management programme for employees on medically restricted work.
31/12/2013
Training programme
Implement a management training programme in
health and safety issues, designed for the specific
needs of each business unit.
31/03/2013
Complete design and preparation of the Resettlement
Action Plan.
31/01/2013
Communities
Resettlement of Plan Bonito,
Hatillo and Boquerón
75
76
Prodeco
77
Glossary
Departments:
Political subdivision in Colombia which is a republic formed of thirty
two departments and a capital district. Each department is made up
of various municipalities.
Direct loading:
A coal-loading system using conveyers belts that carry the mineral
from the storage yards to the loading point, where is a ship loader that
deposit the coal directly in the ship´s hold. The ships dock at the cargo
pier. This system is call direct loading because the coal is not moved
once it reaches the shipping area.
Fatality:
A work related accident that results in the death of an employee o r
contractor, without any effect on how days lost due the group-level
injuries are counted.
Freedom of
association:
The right of workers to form or be a part of group chosen by themselves, including trade unions, particularly when this groups may act
together to collectively negotiate with employees.
GCP:
Glencore Corporative Practice, our parent company´s corporate responsibility and management framework and programme.
GRI:
The Global Reporting Initiative is a network organisation that develops
and publishes voluntary guidelines for sustainability reports.
IFC EHS
guidelines:
Environmental, Health and safety guidelines (EHS), which include social aspects, adopted by International Finance Corporation (IFC) of the
World Bank Group.
Industrial
security:
Measures taken to guarantee the security and protection of industrial
sites.
ISO 9001:
An international guide lie applied to quality management system (not
a performance guideline) issued by The International Organisation for
Standardization. It is a voluntary standard that can be independently
audited by certifying bodies.
ISO 14001:
A similar standard to ISO 9001, but applied to environmental management systems.
Local procurement:
78
Prodeco
All good and services procured from local suppliers.
Local supplier:
Those individuals or legal persons registered in (i) the Chamber of Commerce of the city of Valledupar, residing in: Aguachica, Aguas Frias, Agustín
Codazzi, Becerril, Bosconia, Chiriguaná, Currumaní, El Copey, El Paso, La
Gloria, La Jagua de Ibirico, La Loma, San Diego, or Valledupar; (ii) in the
Chamber of Commerce of Santa Marta domiciled in: Ciénaga, Fundación,
Pueblo Nuevo or Santa Marta; and (iii) in the Chamber of Commerce of
Barranquilla, domicilied in: Barranquilla, Malambo, Sabanagrande or Soledad; or any other person who, due to the nature of their service or activity,
can considered a local supplier.
LTI:
A lost Time Injury is a work –related injury that results in the employee
or contractor being incapacitated and thus unable to attend work the
day following the injury (supported by official medical certification).
LTIFR:
The Lost Time Injury Frequency Rate is the number of LTIs registered
per million hours worked.
MTI:
An injury that requires medical treatment that has not been classified a LTI or RWI, which requires medical treatment beyond first
aids.
Non-Profit
Foundation:
Non-profit organisations that may donate funds, support other organisations, or provide a source of funding for its own charitable causes.
Open-pit mining:
The extraction of rock or minerals from the ground using a pit, the
opposite of underground tunnels.
OHSAS 18001:
The Occupational Health and Safety Assessment Series, the internationally recognised specification for the evaluation of occupational
health and safety systems.
PDFR:
The Property Damage Frequency Rate is the number of unplanned
damages per million operational hours of equipment.
RAP:
Resettlement action plan.
Risk
Management:
The prediction and evaluation of risks for companies and the identification of processes to avoid or minimise their impact.
Reserve base:
The total amount of extractable metals or minerals within a mine.
Royalties:
The economic compensation paid to a national government for the
exploitation of the non-renewable natural resources of that country.
RWI:
An injury or occupational condition that unables a worker in a physical or mental manner, to perform some or all his regular duties or
functions in the shift following the one in which the injury occurred.
SENA:
Colombia´s National Learning Service (Servicio Nacional de
Aprendizaje de Colombia), attached to the Colombia Ministry of
Social Proteccion, which is responsible for issues to do with employment, occupational relations, healthcare, and social security.
Terajoules:
One trillion (1012) joules; a joule is the unit from the international
system for measuring energy and is the work required to produce
one watt of power for one second.
Thermal coal:
Any coal suitable for use in steam boilers; also know as a steam coal
or energy coal.
TRIFR:
The Total Recordable Injury Frequency Rate is the sum of four elements: fatalities + lost time injuries + restricted work injuries + injuries with medical treatment, per million hours worked.
79
GRI Indicators
GRI CONTENT
2011 Report
Observations
Page
1. Strategy and analysis
1.1 Declaration from the person of highest
authority in decision-making in the organisation regarding the relevance of sustainability
for the organisation.
* CEO's message
1.2 Description of the main impacts, risks, and
opportunities.
* CEO's message
* Explanation of impacts and
opportunities
* Risk management system
4
2.1 Name of the organisation
* Prodeco: The energy
that moves Colombia
The Prodeco Group.
10
2.2 Main brands, products and/or services.
that moves Colombia
* Scope of the report* Explanation of the types of coal
exported (coal for energy
production – coal for the
metallurgical industry)
12
2.3 Operative structure of the organisation, including the main divisions, operative entities,
affiliates and joint businesses.
that moves Colombia
* Description of the operations (2 open-pit mines, 2
ports, 1 railway)
12
2.4 Location of the organisation’s headquarters.
that moves Colombia
* Barranquilla headquarters
12
2.5 Number of countries in which the organisation operates and names of the countries in
which it carries out significant operations.
that moves Colombia
* Map of operations in
Colombia
12
2.6 Nature of property and legal form.
that moves Colombia
* International Trading
Company
-
2.7 Markets served (including geographic
breakdown, sectors supplied and the types of
customer/beneficiary).
that moves Colombia
* Europe and North America
10
2.8 Size of the reporting organisation.
that moves Colombia
* The most relevant figures
from the operation of the 2
mines, 2 ports, and railway.
12
2.9 Significant changes during the period covered by the report in terms of size, structure,
and property of the organisation.
* Registration as a Business Group
2.10 Prizes and awards obtained during the
period.
that moves Colombia
- Awards and honourable mentions.
4
2. Profile of the organisation
7
* “Medalla Cultura Ciudadana ciudad de Santa
Marta” (City of Santa Marta
Civic Culture Medal) Prize
10
3. Report parameters
Profile of the organisation
3.1 Period covered by the information included in the report
* Scope of the report
7
3.2 Date of last report (if applicable)
7
3.3 Presentation cycle of the report (annual,
biannual)
7
3.4 Point of contact for questions regarding
the report and its content.
80
Prodeco
7
GRI CONTENT
2011 Report
Observations
Page
3.5 Process to define the content of the report
* Relevance assessment
7
3.6 Coverage of the report (countries, divisions, affiliates)
3.7 Indicate the existence of limitations as
regards the scope and coverage of the report.
3.8 Basis for the inclusion of information in the
case of joint business, affiliates, leased installations, subcontracted activities, and other
entities that may affect the comparability
between periods.
7
3.9 Techniques to measure data and bases
to make calculations, including hypotheses
and underlying techniques in the estimations
applied in the compilation of indicators and
other information contained in the report.
7
3.10 Description of the effect that the repeating of information contained in previous
reports can have, together with the reasons for
said repetition.
* GRI Table:
- No information is
repeated.
-
3.11 Significant changes compared to previous
years in the scope, coverage, or assessment
methods applied to the report.
Local purchase
-
* GRI table page
80
* Verification memorandum page
77
Scope and coverage of the report
7
* The Fenoco case
7
Contents index for the report
3.12 Table indicating the location of the basic
content of the report.
Verification
3.13 Current policies and practice as regards
the request for external verification of the
report.
4. Governing, commitments, and participation of stakeholders
Corporate Governance
4.1 Management structure of the organisation, including the committees of the highest
governing body responsible for tasks such as
the establishing of strategy or the supervision
of the organisation.
* Graph to show the
structure of the organisation
/ There is a sustainability
committee
18
4.2 Indicate whether the chairman of the highest governing body is also an executive officer
(if this is the case explain his function within
the organisation and the reasons to justify it).
* The chairman of the
highest governing
body also carries out an
executive role.
The Steering Committee
also carries out general
administrative work within
Prodeco
18
4.3 For those organisations that have a unitary
management structure, the number of members of the highest governing body who are
independent or not executive officers must be
indicated.
* There are no independent members on
the Board of Directors
The Steering Committee
also carries out general
administrative work within
Prodeco
18
* Corporate Governance:
Communication between
Prodeco's management and
employees is constant.
18
4.4 Mechanisms of the shareholders and employees to communicate recommendations or
indications to the highest governing body.
81
GRI CONTENT
2011 Report
Observations
4.5 Link between the salaries of the members
of the highest governing body, senior managers, and executive agents and the organisation’s performance.
Page
-
4.6 Procedures implemented to avoid conflicts
of interest in the highest governing body.
* Corporate Governance: All
Prodeco employees must
sign annual declarations
to verify the absence of
conflicts of interest between
Prodeco and its employees.
-
4.7 Procedures to determine the abilities
and experience required of the members
of the highest governing body to guide the
strategies of the organisation in economic,
environmental, and social aspects.
* All members are aware of
the relevant issues to advise
on the sustainable management of Prodeco
-
4.8 Declaration of mission and internally
developed values, codes of conduct, and
relevant principles for economic, social, and
environmental performance, and the status of
their implementation.
-
4.9 Procedures of the highest governing body
to supervise the identification and management, by the organisation, of economic, environmental, and social performance, including
the related risks and opportunities, such as
adherence to or compliance with internationally agreed standards, codes of conduct, and
principles.
* The Sustainability Report
is a mechanism for the
control and monitoring of
the organisation’s economic,
social, and environmental
performance.
4.10 Procedures to evaluate the performance
of the highest governing body itself, especially
as regards economic, social, and environmental performance.
-
-
Commitments to external initiatives
4.11 Description of how the organisation
has adopted a precautionary approach or
principle.
* Risk management system
30
4.12 Social, environmental, and economic
principles or programs developed externally,
as well as any other initiative that the organisation endorses or approves.
* Foundations* Educational
initiatives* Healthcare initiatives* Basic infrastructure
initiatives
66
4.13 Main associations to which it belongs
(such as industry associations) and/or national
or international bodies the organisation supports.
* Large Scale Mining*
Colombian Safety Council*
ANDI
-
Participation of stakeholders
82
4.14 Account of stakeholders that the organisation has included.
* Our stakeholders
* Involvement with
stakeholders
26
4.15 Basis for the identification and selection
of stakeholders with which the organisation
makes a commitment.
* Our stakeholders
* Involvement with
stakeholders
26
4.16 Approaches adopted to include stakeholders, including the frequency of their participation by type and category of stakeholder.
* Our stakeholders
* Involvement with
stakeholders
26
4.17 Main concerns and topics of interest
that have arisen through the participation of
stakeholders and how the organisation has
responded to such in the compilation of the
report.
* Our stakeholders
* Involvement with
stakeholders
26
Prodeco
Economic indicators
GRI
Indicator
Page
Economic performance
EC1
Direct economic value generated and distributed, including income, mining costs, employee salaries, donations and other investments in the community, non-distributed
profit and payment to capital providers and to governments.
11
EC2
Financial consequences and other risks and opportunities for the organisation's activities
due to climate change.
54
EC3
Coverage of the organisation’s obligations due to social benefit programs.
11
EC4
Significant financial aid received from governments.
We do not
recive financial
aid from
goverments
Market presence
EC5
Range of the ratios between the standard entry-level wage and the local minimum wage
in places where significant operations take place.
45
EC6
Policy, practices, and proportion of expenses corresponding to local suppliers in places
where significant operations take place.
11
EC7
Procedures for local contracting and proportion of senior executives from the local community in places where significant operations take place.
41
Indirect economic impacts
EC8
Development and impact of investment in infrastructure and services rendered principally for public benefit through commercial, pro bono, or in-kind commitments.
11-66
EC9
Understanding and description of significant indirect economic impacts, including the
scope of said impacts.
11
Environmental Indicators
GRI
Indicator
Page
Materials
EN1
Materials used, by weight or volume.
55
EN2
Percentage of materials used which are recycled input materials.
55
Energy
EN3
Direct energy consumption broken down by primary source.
50
EN4
Indirect energy consumption broken down by primary source.
50
EN5
Energy saving thanks to conservation and improvements in efficiency.
54
EN6
Initiatives to provide products and services which are efficient in energy consumption or
products and services based on renewable energy, and reductions in energy consumption
as a result of said initiatives.
-
EN7
Initiatives to reduce indirect energy consumption and reductions achieved with said initiatives.
-
Water
EN8
Total water collection by source.
50
EN9
Sources of water which have been significantly affected by water uptake.
50
EN10
Total percentage and volume of water recycled and reused.
52
Biodiversity
EN11
Description of land adjacent or located within protected natural spaces or areas of high
non-protected biodiversity. Indicate the size and location of plots of land owned, leased,
or managed of high biodiversity in areas outside protected areas.
57
83
GRI
Indicator
Page
EN12
Description of the most significant impacts on biodiversity in protected natural spaces
or on non-protected areas of high biodiversity caused by the activities, products, and services in protected areas and areas of high biodiversity in areas outside protected areas.
57
EN13
Protected or restored habitats
EN14
Strategies and actions introduced and planned for the management of biodiversity
impacts.
56
EN15
Number of species, broken down according to the danger of their extinction, included
on the IUCN's Red List and on national lists and whose habitats are found in areas affected by operations according to the degree of threat to the species.
56
57-59
Emmissions, effluents, and waste
EN16
Total emissions, direct or indirect, of greenhouse gases, by weight.
54
EN17
Other indirect emissions of greenhouse gases, by weight.
54
EN18
Initiatives to reduce greenhouse gases and reductions achieved.
54
EN19
Emissions of substances which are destructive to the ozone layer, by weight.
54
EN20
NOx, SOx, and other significant emissions into the air by type and weight.
54
EN21
Total wastewater discharged, by nature and destination
52
EN22
Total weight of waste managed, by type and treatment method.
55
EN23
Total number and volume of the most significant accidental spillages
58
EN24
Weight of waste transported, imported, exported, or treated which are considered dangerous according to the Basel Convention classification, Appendices I, II, III, and VIII and
percentage of waste transported internationally.
55
EN25
Biodiversity and habitats affected by discharge of water.
52
Products and services
EN26
Initiatives to mitigate the environmental impacts of products and services, and degree of
reduction of this impact.
56
EN27
Percentage of products sold, and their packaging material, which are recovered at the end
of their service life, by product category.
-
Compliance
EN28
Cost of significant fines and number of non-monetary sanctions due to non-compliance
with environmental regulations.
58
Transportation
EN29
Significant environmental impacts of the transportation of products and other goods and
materials used for the organisation's activities, such as the transportation of staff.
54
General
EN30
84
Prodeco
Breakdown by type of the totals for environmental costs and investments.
-
Social Performance Indicators
GRI
Indicator
Page
SOCIAL PERFORMANCE INDICATORS: LABOUR PRACTICES AND DECENT WORK
EMPLOYMENT
LA1
Breakdown of workforce by type of employment, contract, and region.
LA2
Total number of employees and average employee turnover, broken down by age group,
gender, and region.
41-43
LA3
Social benefits for full-time employees which are not offered to temporary or part-time
employees, broken down by main activity.
39
40
COMPANY/WORKER RELATIONS
LA4
Percentage of employees covered by a collective bargaining agreement.
LA5
Minimum notice period(s) regarding organisational changes, including whether these notifications are specified in the collective bargaining agreements.
46
-
HEALTH AND SAFETY IN THE WORKPLACE
LA6
Percentage of the total number of workers who are represented in joint managementemployee health and safety committees, established to help to control and advise on programs for health and safety in the workplace.
35
LA7
Rates of absenteeism, occupational diseases, days lost, and number of work-related fatalities by region.
35
LA8
Education, training, consultancy, and risk prevention and control programs that are applied to the workers, their families, or to members of the community in relation to serious
illnesses.
32
LA9
Health and safety issues covered by formal agreements with trade unions.
35
TRAINING AND EDUCATION
LA10
Average number of hours of training per year per employee, broken down by category
of employee.
44
LA11
Skills management and ongoing training programs that promote worker employability
and that support them in the management of the end of their professional careers.
44
LA12
Percentage of employees who receive regular performance and professional development assessments.
44
DIVERSITY AND OPPORTUNITY
LA13
Composition of the corporate management bodies and workforce, broken down by gender, age group, minority groups, and other diversity indicators.
40
LA14
Ratio of basic wage of male workers against that of female workers, broken down by professional category.
40
SOCIAL PERFORMANCE INDICATORS: Human Rights
MANAGEMENT PRACTICES
HR1
Percentage and total number of significant investment agreements that include human
rights clauses or which have been subject to analysis in terms of human rights.
23
HR2
Percentage of the main suppliers and contractors which have been subject to analysis on
the subject of human rights, and measures adopted as a consequence.
-
HR3
Total number of hours of employee training on policies and procedures related to those
aspects of human rights that are relevant to its activities, including the percentage of employees trained.
23
NON-DISCRIMINATION
HR4
Total number of discrimination incidents and measures adopted.
-
85
GRI
Indicator
Page
Freedom of association
HR5
Company activities where the right to freedom of association and recourse to collective
bargaining agreements may be at significant risk, and measures adopted to support
these rights.
46
Child exploitation
HR6
Activities identified as carrying potential risk of child exploitation incidents, and
measures adopted to contribute to their elimination.
41
Forced labour
HR7
Operations identified as being at considerable risk of being the origin of episodes
of forced or non-consensual labour and the measures taken to contribute to their
elimination.
-
Security practices
HR8
Percentage of security personnel trained in organisational policies or procedures in
aspects of human rights relevant to the activities.
23
Indigenous rights
HR9
Total number of incidents related to violations of indigenous rights and measures
adopted.
N.A.
Social performance indicators
Community
SO1
Nature, scope, and effectiveness of programs and practices to evaluate and manage the
impacts of operations in the communities, including the company’s entry, operations, and
closure.
-
Corruption
SO2
Percentage and total number of business units analysed with respect to risks related to
corruption.
SO3
Percentage of employees trained in the organisation’s anti-corruption policies and
procedures.
-
SO4
Measures taken in response to incidents of corruption.
-
23
Public politics
SO5
Position on public politics and participation in them and in the holding of lobbying
activities.
-
SO6
Total value of financial and in-kind contributions to political parties or related
institutions, per country.
-
Unfair competition practices
SO7
Total number of actions due to causes related to monopolistic practices and against free
competition, and their results.
-
Compliance with regulations
SO8
Monetary value of sanctions and fines and total number of non-monetary sanctions
resulting from non-compliance with laws and regulations.
-
Social performance indicators: product responsibility
Client health and safety
86
PR1
Phases of the life cycles of products and services, the impacts of which on the health and
safety of clients are assessed in order to be improved where necessary, and percentage
of categories of significant products and services that are subject to said assessment
procedures.
-
PR2
Total number of incidents arising from non-compliance with legal regulations or voluntary
codes in relation to the impacts of the products and services on health and safety during
their life cycle, distributed based on the type of result of said incidents.
-
Prodeco
GRI
Indicator
Page
LABELLING OF PRODUCTS AND SERVICES
PR3
Types of information on the products and services that are required by current procedures and regulations, and percentage of products and services subject to such informative requirements.
N.A.
PR4
Total number of incidents of non-compliance with regulations and voluntary codes in
relation to the information and labelling of products and services, distributed based on
the type of result from said incidents.
N.A.
PR5
Practices with respect to customer satisfaction, including the results from customer
satisfaction studies.
N.A.
MARKETING COMMUNICATIONS
PR6
Programs of compliance with laws or adherence to standards and voluntary codes mentioned in marketing communications, including advertising, other promotional activities,
and sponsorships.
N.A.
PR7
Total number of incidents as a result of non-compliance with regulations in relation to
marketing communications, including advertising, promotion and sponsorship, distributed based on the type of result from said incidents.
N.A.
CUSTOMER PRIVACY
PR8
Total number of duly founded claims in relation to respect of privacy and the leaking of
customer’s personal details.
N.A.
COMPLIANCE WITH REGULATIONS
PR9
Cost of significant fines resulting from non-compliance with regulations in relation to the
supply and use of the organisation’s products and services.
N.A.
Mining Indicators
GRI
Indicator
Page
MM1
Quantity of land (owned or leased, and managed for production or extraction activities)
disturbed or rehabilitated.
48
MM2
The number and total percentage of sites identified as requiring plans for the management of biodiversity in accordance with established criteria, and the number (percentage) of sites with plans.
48
MM3
Total amount of overburden, rock, tailings, and mud and their associated risks.
48
MM4
Number of strikes and closures lasting more than a week, per country.
MM5
Total number of operations that take place in or next to territories of Indigenous Peoples,
and the number and percentage of operations or sites where there are formal agreements with the communities of Indigenous Peoples.
N.A.
MM6
Number and description of significant conflicts related to the use of the ground, due to
the constitutional rights of local communities and indigenous peoples.
N.A.
MM7
The measure in which complaint mechanisms were used to resolve controversies relating to the use of the land and the customary law of local communities and indigenous
peoples, and the results.
N.A.
MM8
Number (and percentage) of production centres belonging to the company where there
are artisanal and small-scale operations, the risks associated and the measures adopted
to manage and mitigate these risks
-
MM9
Sites where resettlement was carried out, the number of families resettled in each site
and how their livelihoods were affected in the process.
-
MM10
Number and percentage of operations with plans to close.
-
MM11
Programs and advances in relation to materials for production
-
-
87
2011
Our sustainability report 2011 - PRODECO

Our sustainability report

Transcription

Similar documents

Nationalist Heroines - Newark Public Library

go green. think blue.

the Strategic plan - Avon Maitland District School Board

tenure track faculty position announcement librarian ii

Club Lifestyle

Postgraduate Diploma in Sustainable Business

proyecto ejecutivo de un ecoalojamiento en la reserva de la biosfera

Bradford Coal Breaker

GREEN MOVEMENT IN TURKEY

Teaching Sustainability thru Interac"ve Systems Thinking Educa"on

Jagua: A Journey into Body Art from the Amazon