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OTTAWA

OTTAWA. October, 2003. MINING INDUSTRY AND SOCIAL RESPONSIBILITY: THE COLLAHUASI CASE. C H I L E. Collahuasi’s Geographical Location. COLLAHUASI’S SHAREHOLDERS.

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OTTAWA

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  1. OTTAWA October, 2003 MINING INDUSTRY AND SOCIAL RESPONSIBILITY: THE COLLAHUASI CASE

  2. C H I L E

  3. Collahuasi’s Geographical Location

  4. COLLAHUASI’S SHAREHOLDERS Falconbridge/Noranda (Canadá) 44%Anglo American p.l.c. (United Kingdom) 44%Japanese Consortium – Headed by Mitsui 12%

  5. Shareholders: Consistently profitable, investment-grade company with long-term growth potential Customers: Reliable supplier with quality products, participating in the promotion of copper Employees: Stable and rewarding place to work Environment: Safe, efficient and environmentally responsible Chile: Contributing to the growth of Chile’s First Region COLLAHUASI’S VISION To be among the world’s leading copper producers

  6. MARKET During the year 2002, Collahuasi produced 434.000 tonnes of copper; 373.000 tonnes in concentrate and 61.000 tonnes in cathodes. Collahuasi represents 3.2% of the world’s copper-mine production.

  7. INFRASTRUCTURE INVESTMENTS IN MUS$ Pozo Almonte–Coposa Road 38.0Housing Plan in Iquique 43.0Mining Technological Center in Iquique 3.0Purchase of Public Land 10.6Restoration of buildings in Iquique 2.3 TOTAL: 96.9

  8. OUR PEOPLE Employment and Opportunities Operations Own Personnel 1,000 workers Direct Contractor Personnel 1,300 workers Proyects Original Project 5,000 workers during 24 months Current Project 3,500 workers during 24 months

  9. OUR PEOPLE • Accident Frequency Index (*) • Collahuasi has been certified under the international loss control system “NOSA”, obtaining maxim distinction. • (*) Number of accidents per 0.2 million manhours.

  10. OUR PEOPLE – COMPENSATION AND BENEFITS (2002) • Principal Benefits • Complementary Health Insurance. • Educational Assistance for children from workers. • Housing Compensation. • These benefits involve an investment of US$4 million per year. • (*) Source: I.N.E.

  11. OUR PEOPLE • The equivalent of 2.5% of the working period is devoted to training. In 2002 Collahuasi was distinguished by “SENCE” for its leadership in training in the 1st. Region. • Labor Union Relations: The Company respects the principle of free affiliation and does not allow activities against Labor Unions. Most workers are affiliated to Collahuasi’s Labor Union. • Ethic Code: Values promoted by the Company in matters of interpersonal relations, with others and with the environment.

  12. ENVIRONMENT • Environmental Impact Study: Original project was approved in 1995. • Concentrator Plant Expansion: Environmental Impact Study Project, was approved in 2001. • Collahuasi’s Optimization Project: Environmental Impact Declaration, was approved in 2003. • Sectorial Technical Permits Obtained: 150 • 2 External Environmental Audits: 100% of accomplishment • ISO 14000 Certification of all of its processes: 2001 • ISO 9001 Certification for all of its processes: 2003

  13. MAJOR ENVIRONMENTAL INITIATIVES • Leadership in the research on the effects of working at altitutde. • Reforestation of native species at 4,000 meters above sea level (Queñoa-polilepsis tarapacana) – unique case in the world. • Relocation and recovery of wetlands in Chilean altiplano. • Forestation of arid area (25 hectares) using process water. • Participation in Salar del Huasco basin biodiversity study – United Nations program. • Recovery of archeological areas and sites. • Development and implementation of the “Clean Production Agreement” with Chilean Authorities. • Energy and water use optimization programs. • Development of Collahuasi’s Mine Closure Plan.

  14. WORKING WITH THE COMMUNITY • Education: • Scholarship program for youngsters from Pica and Pozo Almonte to attend the Technological Mining Center in Iquique. • Training in (mainly) agricultural activities for members of the Pica and Pozo Almonte communities. • University scholarships to students from local and ethnic communities. • Donation of educational material to local communities. • Sponsorship of various educational activities in Chile’s 1st. Region.

  15. WORKING WITH THE COMMUNITY • Cultural Area: • Purchase of the installations of the Humberstone and Santa Laura (former) nitrate operation and subsequent donation to the Nitrate Museum Corporation. • Sponsorship of the “Cultural heritage of the Iquique province” study, the first of its kind in Chile. • Sponsorship of concerts in Iquique (3 presentations/year). • Construction of art gallery and auditorium in Iquique, open to the community. • Sponsorship of various scientific and cultural publications.

  16. WORKING WITH THE COMMUNITY • Infraestructure and Quality of Life: • Huatacondo development initiative: new irrigation system and pavement of main roads. • Huasco and Collacagua: Installation of solar panels to provide electricity to aymara families. • Pica: Community Center (Infocentro), town infrastructure and local radio station. • Pica/Matilla: Improvement to irrigation system.

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