sustainability report 2016 - antamina.com · |4| letter from the president & ceo we have...

Compañía Minera Antamina S.A.

SUSTAINABILITY REPORT2016

Contents

1. Letter from the President & CEO

| | Contents2

................................................................. 4

2. Our Organization .................................................................................... 7

2.1. Antamina’s history .............................................................................. 9

2.2. From the Andes to the coast and the world ................................................ 10

2.2.1. Strategic Framework .................................................................... 12

2.2.2. Risk management ........................................................................ 15

2.2.3. Associations and initiatives ............................................................ 17

3. Company organization .............................................................................. 19

3.1. Corporate compliance program .............................................................. 21

3.1.1. Ethics hotline ............................................................................ 23

3.1.2. The fight against corruption ........................................................... 25

4. Our stakeholders .................................................................................... 27

5. Social management..................................................................................31

5.1 Management for sustainable development .................................................. 31

5.1.1 Operational area of influence .......................................................... 33

5.1.2 Investment for development ........................................................... 35

5.1.3 Handling claims ........................................................................... 42

5.2. Our strategic partners ......................................................................... 44

5.2.1. Strategic partner assessment .......................................................... 47

Contenidos | |3

5.3. Our team ......................................................................................... 48

5.3.1. Social benefits ........................................................................... 52

5.3.2. Equal pay ................................................................................. 55

5.3.3. Industrial relations ...................................................................... 57

5.3.4. Training and development ............................................................. 58

5.3.5. Health and Safety ....................................................................... 62

5.4. Human rights .................................................................................... 63

5.4.1. Education in human rights ............................................................. 63

5.4.2. Human rights in the supply chain ..................................................... 65

6. Environment – responsible management ....................................................... 67

6.1 Environmental management system .......................................................... 67

6.2 Consumption of materials ...................................................................... 68

6.3 Energy ............................................................................................. 70

6.4 Water .............................................................................................. 71

6.5 Biodiversity conservation ....................................................................... 73

6.6 Emissions .......................................................................................... 75

6.7. Waste water ..................................................................................... 76

6.8 Waste management ............................................................................. 79

6.9 Closure plan ...................................................................................... 83

6.10 Environment investments and expenses .................................................... 84

7. About the sustainability report ................................................................... 87

7.1. Materiality process ............................................................................. 87

8. GRI Table of contents ............................................................................... 91

9. Appendixes ............................................................................................ 103

9.1. Complaints associated with land use ........................................................ 103

9.2. Personnel diversity tables ..................................................................... 105

9.3. Penalties and fines received in 2016 ......................................................... 107

| | Letter from the President & CEO4

We have prepared this sustainability report in a very special context: in 2016, Antamina celebrated its first 15 years of operation.

This has been a period of hard work, focused on achieving operational efficiency, safe for our employees and respectful of the environment. At the same time, we have sought to connect with our stakeholders and integrate ourselves as an agent that promotes the development in our area of operative influence.

In these first 15 years, we have consolidated the formation of a high-performance team, committed with our values, essential for our progress towards operational excellence. Besides, we have formed a culture of prevention where the most important things are the wellbeing and health of the people.

Another of our concerns has been the training of our employees and their motivation, boosting the integration of corporate values in their daily activities. Maybe due to motives like these, three studies found Antamina as one of the best companies to work in Peru.

Our search for operational excellence is also present in our environmental management. One

1. Letter from the President & CEO

Dear Friends:

Letter from the President & CEO | |5

of our main achievements in this field has been to reuse 99% of water that we require for mineral concentration and keep a complete compliance of environmental standards and regulations in our operation. We also invite our employees to present their “value ideas” which, once implemented, improve the productivity of Antamina.

The development of strategic partners that respond to our operative requirements has also been crucial in these 15 years: we have developed a mutually beneficial relation, based on effective communication at both operational and strategic levels. The monthly Transport Carriers and Strategic Partners Committee keep this relation alive through a constant synergy.

Our area of operative influence comprehends twenty districts with diverse development gaps. In these years, we have sought to consolidate us as development enablers and, through our multiactor social management model we promote that all the actors involved work together to raise the quality of life of the population. Dialogue with the people and their representatives is a key factor for this objective, therefore, our doors are always open to respond to their concerns.

We expect to continue operating for many years to continue growing hand to hand with our stakeholders and we consider that these first 15 years have been the preparation for the future.

The achievements motivate us to continue this demanding path and we humbly assume the challenges that will come to consolidate as a world class mining operation, safe, careful with the environment, and a catalyst of development.

Thus, I invite you to read our new sustainability report.

Abraham ChahuanPresident & CEO


(G4-1)

2. Our Organization

Our Organization | |7

Compañía Minera Antamina S.A.Organization Name

Countries where we Peru

operate

Shareholder

Shareholder Composition

Representative %

RAL Cayman Inc. BHP Billiton 33.75

Noranda Antamina, Ltd. Glencore 33.75

Teck Base Metals Ltd. Teck 22.50

Mitsubishi CorporationMitsubishi

Corporation10.00

Production and sales of mineral concentrates: copper, Main Products

zinc, molybdenum, lead/bismuth

Net Sales in 2016 US$ 2,379,627,828

Number of employees in 763 employees | 2,049 operative workers

2016

LiabilitiesCapitalization

Assets

US$ 1,526,103,000 US$ 5,265,348,591

(G4-9)(G4-4)(G4-3)

silver,

WE OPERATE?

OUR

The pipelinecover more than

and transports mineralfor export

STOCKHOLDERS

300kms

HUARMEY

WHERE DO

WHAT DO WE PRODUCE?

ANTAMINASan Marcos4300 meters

height

ÁNCASHHUARAZ HUARMEY

CHIQUIÁN

PATIVILCA

SANMARCOS

ANTAMINA

Shipping

Punta

Port

Lobitos

CuCOPPER

ZnZINC

PbLEAD

MoMOLYBDENUM

AgSILVER

BHP Billiton

Glencore

Teck

Mitsubishi Corporation

| | Our Organization8


2.1. Antamina’s history

The word «anta» means copper in the indigenous language of Quechua and was the source for the name “Antamina”, or copper mine. Since the time of the Chavin Civilization, the people of ancient Peru already knew about the properties of copper and they utilized it for religious purposes. Their skill in working with metals was used to communicate their beliefs because the motifs were complex religious symbols.

1860 Identification of the Antamina deposit by Antonio Raimondi

1952 Incorporation into the exploration mining project portfolio of Cerro de Pasco

Mining Company

1998 Preparation of EIA feasibility study and confirmation of project development

2001 Trial operations | First shipment of mineral

concentrates | Start of commercial production

2010 Announced project expansion

that increased production by 30%

1996 Privatization of

the Antamina ore deposit Antamina

1997 Completion

of exploration phase

In 1860, Italian scientist Antonio Raimondi documented the properties of the Antamina mineral deposit in his emblematic book entitled El Peru, published in six volumes between 1874 and 1913. The mine deposit remained forgotten for decades and it was not until 1952 when Antamina was included in the mining exploration project portfolio of Cerro de Pasco Mining Company.

In the 1960’s, Antamina passed into the Government’s hands where it remained until

1996. That year Canadian mining companies Rio Algom and Inmet purchased the ore deposit following a privitization process.

These companies began the formation of what we are today: Compañía Minera Antamina S.A. Thus, following a process of exploration and construction of the mining complex, we started preliminary operations on May 28, 2001. On October 01, 2001, we began commercially producing copper and zinc concentrates, and other byproducts.


2.2. From the Andes to the coast and the world

Antamina has a long-term contract with its four shareholders Glencore International AG, BHP Billiton Marketing AG, Teck Metals and Mitsubishi Corporation RtM International Pte Ltd. that went into effect in January 2014. In this contract, Antamina made a commitment to deliver products equally in quantity and quality among each party by way of an annual shipment schedule and in accordance with their shareholder percentage in Antamina. However, as the company advanced its exploitation of new phases of the mine, mineral composition kept changing. This factor made it increasingly challenging to manage the committed volumes, where commercial and maritime traffic management play a very important role in being able to meet the quality and scheduling requirements for shipments that are carried out in conjunction with personnel from the Port and the Mine.As of year-end 2016, there were no significant changes in our operations.

Company sales by destination %

China 66.5%

Chile 8.0%

Germany 4.7%

Spain 3.8%

Taiwan 3.5%

Japan 2.2%

Peru 2.2%

South Korea 1.8%

Bulgaria 1.6%

Finland 1.6%

India 1.5%

Philippines 1.5%

Belgium 1.0%

Australia 0.2% (G4-8)

Our Organization |11|

DIRECT ECONOMIC VALUE GENERATED (in millions of dollars) 2015 2016

Net Revenue

2,019.00 2,390.24

Total Revenue 2,019.00 2,390.24

DIRECT ECONOMIC VALUE DISTRIBUTED (in millions of dollars)

Operational Costs

Administrative expenses + non-strategic investments + Royalty payments + depreciation and amortization + land use and purchases + other

-25.21 -22.25

Payments to suppliers -659.59 -612.40

Employees

Salaries -108.92 -105.56

-29.78 -32.97

Government

Tax payments -176.76 -165.48

Community

Investment in social programs -21.68 -17.45

Other expenses -610 -1,000

Total Expenditures -1,631.94 -1,956.10

RETAINED ECONOMIC VALUE (in millions of dollars) 387.06 434.13(G4-13)(G4-EC1)


2.2.1. Strategic Framework

We have a Strategic Framework that follows a “causative” process. These strategic priorities are organized into the components Health and Safety, Sustainable Development, People Development, Operational Excellence and Value Creation. We want to convey the concept that we form part of a “vicious circle” that enables us to use our tangible and intangible resources better to generate value responsibly.

The reputation that we have developed with our people and processes reinforces the entire strategy, which is what is most important. If we lose our reputation, we lose opportunities, people, suppliers, capital, etc.

(G4-56)

PeopleDevelopment

Forging Antamina

Human Resources, Minerals, Assets, Supply Network,Information Technologies, Know-how, etc.

OperationalExcellence

BusinessDevelopment

Health andSafety

We implement processes of continuous improvement to

optimize company productivity and keep our

costs competitive

We met metallic

production plan targets

We managed resources and

reserves to maximize Antamina’s value

Constitutive act, Bold Statement, Statement of Responsibilities, Values.

We have excellent Health and Safety performance in our operations, projects

and transport with indicators within the standards of the global mining industry, controlling critical risks,

focusing on the achievement of zero damage and zero fatalities

SustainableDevelopment

We achieved an excellent performance in social management, generating conditions

favorable for developing our operation, while promoting the participation of teh

Government, communities and civil society, to improve perception of well-being and

quality of life in our strategic area of influence

A Peruvianmodel of mining

excellence

Our Reputation

Value Creation

Tangible andintangible

We selected and implemented the best

projects, adding the value offered in business cases

Our Resources

We have a motivated and competent team of people who are aligned with Antamina’s culture

OUR PROPOSAL FOR VALUEAND DIFFERENTIATIO

Maximize value with positive results for all stakeholder groups.

OUR STRATEGICPROCESSES

We achieve a high degree of efficiency showing continuous sustainable improvement, with

global recognition.

OUR SOCIAL-ENVIRONMENTAL

RESPONSIBILITY

We efficiently coordinate resources for communities

living in hour strategic area of influence promoting

sustainable development.We proactively espouse health and safety protecting people

and property.

We achieve extraordinary results

OUR PEOPLE

in every area with the commitment, participation and

leadership of our people.



Our mission

We achieve extraordinary and predictable results in health and safety, environment, community relations and efficiency, with the commitment, participation and leadership of our people.

Our vision

Be a Peruvian model of mining excellence in the world. Extraordinary leaders who transform challenges into successes. Working for tomorrow’s development …today!

•

Our values

Health and safety: We take health and safety into consideration in all of our actions and decisions, proactively protecting people and property.

• Integrity: We are our word, honor our commitments and comply with legislation and corporate policies.

• Responsibility: We are responsible for our actions and their consequences and for the efficient management of resources, operating with social and environmental responsibility, promoting sustainable development.

• Respect and recognition: We recognize the achievements of every individual, respect their traditions, and we promote a culture where ideas and contributions are valued.

• Continuous learning: We promote a culture of learning and continuous improvement for our team, strategic partners, customers and industry, by optimizing processes and the use of technology.

Our integrated management system

TUV Rheinland of Germany certified Antamina’s Integrated Management System (IMS or SIG as a Spanish acronym). They granted this certification because of the excellent work of our team located at the Mine, Punto Lobitos Port, Lima Offices, the ore pipeline and in outside transport. Preceded by the ISO 14001:2004 certification in Environment and the OHSAS 18001:2007 in Health and Safety, this certification encompasses Antamina’s entire operation.

This systems integration involves the process of continuous improvement and combining standards ISO 14001 and OHSAS 18001 that were previously implemented and certified since 2005 under the separate categories of Occupational Health, Industrial Safety, and the Environment).

Our IMS improves our organizational performance, enables management to become more agile and it prevents us from duplicating procedures. This system has demonstrated itself to provide reliable performance through management of objectives, goals as well as the review of results by company Executive Management. Similarly, it enables us to satisfy our stakeholders while our operations evidence steady improvement.

(G4-56)


Furthermore, we won the ISO 17025 accreditation for our laboratories located at Punta Lobitos Port facilities and the Mine. We also conform to the Code of the Protection of Ships and Port Facilities (PBIP) granted by the National Port Authority (APN).

At Antamina, we use a strategy formulation tool known as a SWOT analysis, which is subjected to regular reviews and where we identify the company’s current Strengths, Opportunities present in the market and the business environment, and Weaknesses and Threats that could pose risks. We use this information to formulate corporate objectives that include the economic, environmental and social impacts of our business activity.

We have a risk management system we call the Antamina Integrated Risk Management System (AIRMS or SIGRA in Spanish) that follows a strict process of identification, analysis and assessment on through to addressing risks, prioritizing resources to prevent or mitigate them, including continuous follow-up to ensure they remain under control. The AIRMS allows us to manage all critical risks in this way, seeking

2.2.2. Risk management

to prevent high impact accidents, setting up controls to minimize the probability of their occurrence while mitigating the consequences in the event they occur.

Shareholders review this process on a regular basis and a committee of shareholders audit risk management results. Both reviews were satisfactory during the past year, receiving good comments and scores for the progress and performance obtained in 2016.

Given that risk management follows a process of continuous improvement, the AIRMS is constantly fed information about lessons learned in the operation and the industry. At year-end 2016, we have all identified critical risks under control.

(G4-2)


2.2.3. Associations and initiatives

We belong to the following associations:

Furthermore, since 2004, we support the United Nations Global Compact, and endorse the Extractive Industries Transparency Initiative (EITI) since 2007.

Sociedad Nacional de Minería Petróleo y Energía (SNMPE) (National Society of Mining, Oil, and Energy)

Participation in meetings with members active on various SNMPE committees.

Cámara de Comercio Canadá Perú(Peruvian Canadian Chamber of Commerce)

Participation in work meetings and commercial events.

Cámara de Comercio Australia Perú(Peruvian Australian Chamber of Participation at vents and in work sessions.Commerce)

Grupo de Diálogo Minero (Dialogue Group on Mining)

Participation in meetings and work sessions.

Instituto Peruano de Economía(Peruvian Institute of Economics)

Associate members and Participation in meetings.

Cámara de Comercio de Huaraz(Huaraz Chamber of Commerce)

Participation at meetings and work sessions.

Organización Procobre - International Copper Association (ICA)

Participation in work sessions

Patronato de Perú 2021

(Peruvian Patronage Association 2021)Participation in training workshops and work meetings.

(G4-16) (G4-15)

3. Company organization

Company organization | |19

El órgano máximo de gobierno de la empresa es la Junta General de Accionistas, la cual delega en el Directorio la gestión estratégica de la compañía.

Board of Director

Our Board has nine official members and nine alternate members, who represent each of our shareholders (Glencore International AG, Teck Metals, BHP Billiton Marketing AG and Mitsubishi Corporation RtM International Pte Ltd.). The position of Chairperson rotates annually.

The Board convenes on a quarterly basis. Periodic virtual board sessions are held when necessary to approve certain topics of an urgent nature before the next ordinary meeting on economic, social or

Board Committees

Currently, our Board of Directors has two

environmental issues.

committees, each chaired by one shareholder representive. These committees are the Strategic Business Planning Committee and the Audit and Finance Committee.

In addition, the Board has an Advisory Committee composed of shareholder representatives. This committee convenes quarterly, like the Board of Directors, to adopt decisions regarding the company’s progress and make the necessary recommendations to Antamina’s Board of Directors for approval. This Committee also instituted two other Committees, the Projects Steering Committee and the Environment and Community Steering Committee.

| | Company organization20

Vice President, Legal Affairs and

Compliance

Vice President, Operations

Vice President, Business

Planning and Development

Senior Manager, Community Relations, Social Management

and Sustainable Development

Vice President, Human Resources,

Corporate Communication

and Security

Senior Manager, Health & Safety, and Environment

Vice President, Finance and

Administration

Senior Manager, Engineering and

Projects

President & CEO

The executive organization is led by the President & CEO and has the following structure:

(G4-34)


3.1. Corporate compliance program

We are an organization that operates within the highest standards and complies with Peruvian regulation.

Corporate Compliance Policy

Anti-bribery Policy

Procedure for Hiring Third Parties

Procedure for Reception and Delivery of Gifts and Entertainment

Procedures for Authorizing Expenses in Favor of Third Parties

Handbook for the Prevention and Detection of Money Laundering and the Financing of

Terrorism

Our Code of Conduct establishes the standards of behavior and rules regarding how we must work and relate with our fellow employees, suppliers and customers as well as with members of the community and other people connected with our company.

All employees sign this code upon starting their job with the company as a sign of their commitment and compliance. Moreover, we have a series of policies and procedures in place to prevent unethical practices or violations of human rights:


Our code of conduct is available to the public at www.antamina.com under the section “Corporate Governance”. Compliance with the guidelines contained in this document allows us to work with absolute integrity, maintain the same standard of behavior and a solid and enduring reputation.

The code includes a section about conflicts of interest considered violations. Complementing this aspect, we conduct information and awareness development campaigns with messages designed to prevent conflicts of interest, in addition to face-to-face training and E-learning sessions for all personnel.

The Compliance Department manages a centralized logbook to register statements of possible conflicts of interest. These statements are evaluated by the Compliance Department that notifies the deponent if a there is a conflict or not and what actions, if any, should be taken.

Every complaint related to a Conflict of Interest is registered in the Complaint Logbook managed by the Compliance Department and is investigated. Thus, in the event that an undeclared and unauthorized conflict of interest is detected, the company takes disciplinary action against the party involved.


At Antamina, we set up an Ethics Hotline to receive all complaints regarding violations of this nature, illegal activities and matters associated with the organization’s integrity. In addition, a complaint received through another channel, e.g. via email or telephone call to a Vice President, a manager or directly to the Compliance Department is treated the same way as a complaint received by the Ethical Hotline.

Currently, the Compliance Department, by way of a Compliance Specialist Officer, is in charge of reviewing all received complaints. It is worth noting that a third party hired by Antamina manages the Ethics Hotline and there is a Communication Protocol between the operator and Antamina.

The company has notified employees of the existence and use of the Ethics Hotline and other mechanisms available for filing complaints through and informational campaign (Email, brochures), in (face-to-face and E-Learning) training sessions and by providing information and links to the hotline on the corporate intranet and the Company Website.

The ethics hotline operates 24 hours a day everyday (voice mail, email and intranet web forms). If you wish to speak with a professional, office hours are Monday through Friday from 8:30 a.m. to 6:30 p.m. The informant is not

obligated to identify him or herself when making a complaint. This may be done anonymously. The Code of Conduct expressly prohibits any form of retaliation or threats against a person who has submitted a complaint.

All complaints received by the Compliance Department are treated with complete confidentiality. Antamina has a Complaint Handling Procedure. All complaints are received and channeled by the Compliance Department. Depending on the violation, the Compliance Department can reroute the case to another department in Antamina. If the complaint is linked with:

1. A violation of the Discrimination and Harassment Policy, it goes to the Department of Human Resources and Security.

2. A breach of Administrative policies or of Antamina Books and Records policies is sent to the Administration and Finance Department.

3. Confidentiality of Information, Political Contributions, Corruption, Bribery or Conflict of Interest, triggers an investigation overseen by the Compliance Department.

4. Logbook entries for any investigations sent to other departments of Antamina will not be closed in the log until it is proven that the case has been investigated and that actions were taken or decisions made that allow for closing the case.

3.1.1. Ethics hotline


Complaints handled

YearComplaints received

Complaints investigated and closed

Main topics of the complaints

2015 14 14 • Internal corruption in competitive bidding processes.

• Conflict of interest.

• Internal policies and procedures.2016 24 24

Similarly, within our company’s spirit of prevention, we have performed an analysis of all of its operations and identified two material risks associated with ethical practices and integrity: bribery and connections with illegal groups.

It is the policy of the Compliance Program that all donations that Antamina makes be reviewed by the Compliance Department aimed at preventing acts related to corruption associated with any payments of monetary contributions, goods or services in favor of third parties in compliance with current applicable Peruvian legislation and international standards in matters of anti-corruption. (G4-SO3)

The review includes verifying the identity of person and entity to receive the donation to assess the risk involving the donation and recipient. This review involves determining the (G4-SO3)

involvement of government agencies, Politically Exposed Persons (PEPs), and persons with legal problems, among others.

Furthermore, the form of donation is also reviewed to determine whether the disbursement complies with current policies regarding support and benefit in favor of Antamina’s target population. This process requires the approval of the Compliance Specialist, the Vice President of the division involved, the Vice President of Administration and Finance and the Vice President of Legal Affairs and Compliance.


(G4-SO4)

3.1.2. The fight against corruption

All employees received a copy of the Code of Conduct and given information about our anticorruption policies and procedures. In addition, all agreements with suppliers and strategic partners contain clauses that obligate them to respect this code and Antamina’s Policies and Procedures on Ethics.

Moreover, all employees, operators and strategic partners receive information about the Compliance Program during induction activities before hired by Antamina. The Compliance Department gives induction lectures to persons working in high risk jobs and departments once every year. Antamina also includes one inter-annual face-to-face session on its training calendar for strategic partners who represent Antamina before third parties.

In 2016, we conducted 33 face-to-face training sessions about the anticorruption system. Over 175 staff members of Antamina participated in these sessions. Training took place in Lima, Huaraz, and Huarmey or at the Mining Camp in Yanacancha.

E-Learning Program about the fight against corruption

Antamina implemented an E-Learning platform in June 2015. All Staff workers must log in and complete a test on the platform. During 2016, 99.87% of the staff logged in and passed the test within the specified time limit.

2015 2016

Sessions on the Anticorruption system

61 33

Collaborators who attended the training sessions

413 175

Our stakeholders | |27

We identify our stakeholder groups during workshops before drafting our report. We make use of the most efficient means to communicate with each stakeholder seeking to bolster mutually beneficial relationships. The frequency of these communications often depends on the forum, such as round table discussions and development, community assemblies and meetings among others, which by their nature lack a specific frequency.

4. Our stakeholders

(G4-25)

| | Our stakeholders28

Stakeholder group

Means of involvement Primary expectations

Shareholders• Quarterly and annual reports.• Advisory Committee.

• Maintain an excellent reputation in the market.

Community

• Round tables of discussion and development (strengthens Institutionalism)

• Forums for cooperation• Environmental committees• Joint environmental monitoring

activities• Community meetings• Community liaison processes

under the multi-actor model• Guided visits to the Mine and

Punta Lobitos Port.

• Job creation• Contribution to local economy• Development projects

Environment

• Relationship building with stakeholders

• Access to environmental information.

• Technical visits to the mine and Huarmey port.

• Mechanisms for conflict resolution and inquiries with the authorities

• Participatory environmental committees

• Submission of water and air environmental performance reports to the relevant authorities

• Environmental compliance• Control of potential environmental

impacts• Communications of results of

environmental monitoring

(G4-27)(G4-24) (G4-26)

Our stakeholders | |29

Stakeholder group

Means of involvement Primary expectations

Government

• Round tables for dialogue and development.

• Coordination meetings and forums for cooperation.

• Compliance with national laws and regulations.

• Appropriate Mining Canon approach.

Strategic partners

• Transport Carrier Committee.• Web Page.• Monthly MASSC Committee

Meetings (MASSC Spanish acronym for Environment, Health, Safety and Communities).

• “Suppliers of Excellence” Program.• “Exporting Ancash” Program.• Annual performance assessment.• Monthly Strategic Partner

Committee meetings.

• Developing skills and capacities of small suppliers.

• Recognition for good practices of health, safety and environment.

Collaborators

• Bimonthly magazine (published every two months) entitled “Forjando Antamina”

• Intranet• Web Page• Digital Channel (instead of wall

newspapers)• Digital bulletins• Corporate press releases and

notices• Infographics• Cartoons• Radio Yanacancha• Audiovisual Production

• Recognition of performance.• High standards of well-being,

health, safety and environment.• Good workplace environment.

Labor Union

• Joint Committee of Trade Union and Company

• Joint Committee of Health and Safety

5. Social management

Social management | |31

5.1 Management for sustainable development

Our mission for social management focus the efforts of Antamina to create value for every stakeholder, especially the Society. Thus, in alignment with our Sustainable Development objective, we attempt to ensure that our interaction with other key actors of development in our area of operational influence is that of a promotor under the multi-actor model.

Our multi-actor model significantly changes the traditional bilateral relationship and places local development as protagonist; drives the coordinated work and equalizes the role of every participant in the search for the sustainable development of communities, also strengthening the capacities for territorial management.

This way, we become one more agent of development and a strategic ally of subnational governments for mobilizing resources that allow the execution of strategic projects of the concerted plans of territorial development.

The multi-actor approach requires dialogue and agreement between the local, regional and national actors on issues revolving around territorial development. For this reason, we organized our social management into Territorial Management Units (TMU). The TMUs has promoted the establishment of spaces for development, in which we can count: the Development Boards in San Marcos, the Tourism Board in Chavin, the Board of the Bolognesi province, the Board of

Sustainable Development

We achieved outstanding social and environmental performance, which produces favorable conditions for our operational activities, promoting the participation of the

Government, communities and civil society while seeking to improve the perception of well-being and quality of life among the inhabitants of our strategic area of influence.

The sustainable development is one of the pillars of our value proposal, becoming one of our strategic objectives:

| | Social management32

Huallanca District, the Board of Llata, the Board of the Municipal Commonwealth of Fortaleza and Santa Valley and the Board of Catac. These spaces enable the articulation of ideas and coordination for establishing and strengthening respectful relationships, transparency and confidence with our stakeholders.

Local and Family

Development

Regional Government

Governors and Lt.

Governors

NGOs and cooperation

Rounds, irrigation and

teachers

Civil society

Other institutions

Company

Authorities, population centers and homesteads

Local Government

Central Government

Antamina's multi-actorapproach places developmentat the center of local, regional and national actors.


5.1.1 Operational area of influence

At Antamina, we have defined ourselves to be an active participant in the management of the development of our Operational Area of Influence (OAI), which covers 6 provinces and 20 districts and has a population of 115,000 inhabitants.

Territorial Management Unit (TMU)

Provinces

HuarmeyRecuay

Huari Huamalíes

Bolognesi

OcrosBarranca

Districts

TMU MinaSan Marcos

Huari – Ancash

San MarcosChavín de HuantarHuachisSan Pedro de Chana

TMU Llata Puños Huamalíes – HuánucoLlataPuños

TMU Huallanca BolognesiHuallancaAquíaChiquián

TMU Valle del Fortaleza

Bolognesi

CajacayAntonio RaimondiColquiocHuayllacayán

Recuay

CatacPampas ChicoMarcaLlacllinPararín

Barranca – Lima Paramonga (Zona Rural)

TMU Huarmey Huarmey Huarmey(G4-SO1)


5.1.2 Investment for development

Our intervention strategy seeks to strengthen the capacities for managing local development and increase the competitivity of the territory, promoting projects and programs in coordination with public and private actors in the topics of Education, Health and Local Economic Development, strengthening the leadership of local governments that institutionalize the development processes.

Education

EconomicDevelopment

Health & Nutrition

Strengthening of Local Regional Development

Mangement

Improve the quality of life of population

Provision of Assets

Capacity Buildej

Social Capital

Institutional Capital

The social intervention strategy also seeks to build institutionality in the territories to place the foundations of a development process with a intersectoral and multiannual vision, complementing the interventions focused on providing assets with capacity building. This articulation helps empowering the population to conduct their own development processes, strengthening the community’s social capital and, therefore, their perception of wellbeing.

On the other hand, the multiactor approach defies us to improve the proactive capacity of the territories, with the objective of mobilizing resources from the National Government and international cooperation to finance priority projects considered in the local development plans. This enables the use of different modes for the private sector participation in the financing and execution of projects, of which we can highlight the Public Works for Taxes.

During 2016, Antamina has made a social investment of S/41.6 millions in development interventions. On the other hand, the mobilized funds executed sums up to S/ 51.6 millions.


Programmatic Approach

Investment priorities

Typology N° Status Districts Beneficiaries

Economic Development

Productive development project

Project 20 20 in process

Huarmey, Colquioc, Cajacay, Antonio Raimondi, Huallanca, Huayllacayán, Catac

3,887 producers

Support 9 9 in processHuarmey, San Marcos, Aquia, Chiquián, Pampas Chico

227 producers

Road infrastructure

Projects 1 1 in process San Marcos, Chavín81,101 habitants

Support 4 4 completedHuallanca, San Marcos, San Pedro de Chana y Huachis

1,188 habitants

Irrigation infrastructure

Projects 54 completed

1 in processCajacay y San Marcos 210 producers

Estudios 2312 completed

11 in process

San Marcos, Antonio Raimondi

-

Support 6 6 concluidosParamonga, Marca, Aquía y Antonio Raimondi

115 producers

Tourism promotion


2 in process

Huarmey, Chavín y San Marcos

39,511 habitants





Education

Scholarships for higher and short education

Projects 9 9 in processHuallanca, Huarmey, Catac, San Marcos

73 youngsters

Higher education infrastructure

Project 1 1 completed Huallanca 60 youngsters

Educative infrastructure and equipment

Project /public works

1 1 completed San Marcos 20 students

Studies 3 3 in processPampas Chico, Chavín, Catac, Recuay, Pararín

-

Support 7 7 completed

Cajacay, Paramonga, Ticllos, San Marcos, Colquioc, Pararin y Huarmey

225 students

Educative quality

Project 1 1 in process San Marcos, Huaraz 150 students

Support 2 2 in process Colquic y Cajacay 180 students





Nutrition and health

Improvement of the resolutive capacity of health entities

Projects 2 2 completed Huaraz y Ticllos25,864 habitants

Studies 4 4 in processHuarmey, Huari, Llata, Chiquián

-

Support 41 completed

3 in process

Huarmey, Cajacay, San Marcos

3,300 habitants

Roads and paths

Projects 5 5 completedHuarmey, Colquioc, Huachis

11,621 habitants

Sanitation infrastructure


5 in process

Chiquián, San Pedro de Chana y Huachis

1,277 families

Studies 3 3 in process Huarmey y San Marcos -

Support 3 3 completedSan Pedro de Chana, San Marcos y Paramonga

620 habitants

Strengthening of Local Management

Strengthening of Local Management

Project 1 1 in processSan Pedro de Chana, Huachis, San Marcos

20 local governments

Studies 2 2 completedSan Pedro de Chana y San Marcos

2 local governments


Antamina’s investment and the resources mobilized under the multiactor model have allowed to improve the access to better health and education services. In the economic development topic it has improved productivity and the articulation of producers with the markets.

• 60 young persons of Huallanca district with opportunities to access to technical studies in Senati Huallanca, thanks to the joint action of the Municipality in the construction and implementation of the careers of automotive mechanics and maintenance mechanics.

• 73 young persons with scholarships for studying technical and university careers that will allow them to acquire the capacities for improving their employability level in the communities of AAHH Puerto Huarmey, AAHH 9 de Octubre, CC Santa Cruz de Pichiu, CC Ango Raju, Caserío de Juprog, CC de Ututupampa, CC de Llacuash, CC Catac, CC de Huaripampa y Canrash.

• 3,887 producers with strengthened capacities that allowed the improvement of productive chains of asparagus, avocado, peach, dairy products, silvopastoral activities, sheep cattle, beef cattle, guinea pig and textile activities. Eight producers’ associations have been formed that allowed them to integrate competitively to the market. In the sam way, we have contributed to improve the net income per hectare per campaign in products like peach, avocado and asparagus, mainly due to the Prodicom Program in reducing cost and commercial integration, seeking to improve the efficiency of cultivated areas.

• 91.5 hectares of irrigation improved that benefices 245 producers of de la CC Huaripampa, CC Aquía, Raquia community, Ichoca, Huaricanga and Carash.

• 82,289 inhabitants of San MArcs, Chavin and Huallanca districts have reduced the travel time and improved the competitivity of touristic services and their agricultural products thanks to the maintenance of 85km of roads and 37km of community tracks.

• 225 school students receive better education services thanks to the support with educative materials and equipment, as well as construction materials for 5 school lunchrooms in a joint effort with the educative community.

• 29,164 persons with access to health infrastructure with better resolutive capacities thanks to the dotation of medical and non-medical equipment to the following health posts: Huarmey, Santa Rosa, Cajaca and Ayash Huaripampa; hiring of health professionals for the Huaripampa, Carhuayoc, Ayash Huaripampa Centro PichiuCajacay and Huarmey health posts; and the improvement of infrastructure of Ticllos and the health micro-network of Palmira, under the mechanism of Public Works for Taxes.

(G4-EC7)


FOGEL is an initiative of Antamina that seeks to strengthen local governments, leaders of social organizations, communities and institutions from the 20 districts within its scope of intervention through training and technical assistance aimed at improving public administration, the participation and commitment of everyone. This enables us to generate forums of discussion with consensus-based agendas and coordinated activities that prioritize the development of each individual community.

Over the course of its two years of intervention, the experience from the FOGEL project has enabled us to promote 13 individual public forums oriented toward development, which in some cases had initially been bilateral negotiation committees emerging from conflict situations. At present, participants in these forums include municipalities, social organizations and private and public institutions equipped with better planning and management tools, and greater capacities for dialogue to coordinate and implement concrete projects and activities.

Similarly, we have been successful in training 35 staff members from district and provincial municipalities within our OAI, who

Strengthening of Local Management (referred to with the acronym FOGEL in Spanish)

participated in the certificate program entitled “Management for Private Investment”, and 81 social organization leaders who already have short and medium term management plans.

Local governments lead efficiently the development processes of their territories

The actors in the territories participate in a institutionalized

space, that priorizes and implements development initiatives

The civil society and base organizations participate in the development processes

of their territories

TERRITORY

FOGEL

INSTITUTIONALITY

PART

ICIPAT

IONM

ANAGEM

ENT

POLITICAL INCIDENCE


Public works for Taxes

In 2016, Antamina was awarded 41.36% of the Public Works for Taxes (PWFT) portfolio, and is leader in the annual ranking in this category for a private company with a committed investment of S/.273.4 million Peruvian Soles in the areas of health, education, sanitation, irrigation, highways, roads, and sidewalks.

This has been possible due to agreements signed with two provincial municipalities, ten district municipalities; the Regional Government of Ancash and with the Ministries of Education and Health. All of these agreements are a product of the consensus building strategy we applied.

The PWFT mechanism enables private enterprise to facilitate the rapid execution of the infrastructure projects that the country needs. Antamina has been financing projects in the Ancash Region under the PWFT modality since 2013 and as of the end of 2016 it has committed over 360 Million Soles.


5.1.3 Handling claims

The Social Management Department is responsible for Claims Handling Procedure. This system focuses on strengthening trust between Antamina and the local actors. It handles complaints from stakeholder groups who have a direct or indirect relationship with our company. The protocols permit reception of written or oral statements in which the claimant alleges that he or she is the victim of any type of harm arising from the execution of company activities, and/or acts committed by its workers or its strategic partners. In this sense, for purposes of this document, the concept of “claim” is to be interpreted as synonymous the words “complaint” or “dispute”.

Once these statements manifesting discomfort are recorded in our process, they are automatically considered as claims because they create an expectation on the part of the claimant, who considers that the case merits compensation, clarification, warning or amendment on the part of the company, due to the situation that motivated the complaint.

The attention of those claims requires the participation of different areas of the company, such as Environment, Legal, Social Management, Operations and Communication, among others.


The category entitled “Other social aspects” primarily includes claims associated with job opportunities and the provision of services. The most significant disputes have been those related to land property, involving 16 disputes.

Number of complaints by category

Environmental Resettlement Lands Health & Safety Other social aspects

60

50

40

30

20

10

0 6 3 5

1114 10

42

In process of attention Closed satisfactorily

(G4-SO11)

(G4-HR12)(G4-EN34)

(MM6) (MM7)

Complaint categories

During 2016, we recorded 91 claims, 76 of which were closed and 15 are still in process of being addressed. In addition, we handled a claim the previous year that was resolved in 2016.


5.2. Our strategic partners

Every supplier who works with us on a regular basis is considered a “strategic partner”. We desire this type of relationship with all of our suppliers for the mutual benefit of both parties. The strategic supplier is a Partner because the relationship involves a shared commitment toward the challenge of supplying the goods and services that Antamina needs; and it is Strategic because our suppliers’ performance and results represent key factors of success toward reaching our goals and target objectives.

Here, relationship building revolves around the pillars of i) supplier assessment and recognition, ii) strategic alignment with the Transport Carrier Plan; and iii) supplier development through two Programs:

• Developing Suppliers of Excellence, which seeks to contribution to the increase in competitiveness of the country through innovation and developing suppliers in the mining industry, and

• Exporting Ancash, which promotes synergies among institutions tied to the business sector to develop local suppliers of different goods and services, establishing a path to achieving competitiveness and insertion into the local, national and international markets.

The Logistics Department is responsible for managing our supply chain. This includes the planning, implementation, control of flow, timely and efficient warehousing of raw materials, products and services from the supplier to the mine or the Punta Lobitos Port.


We maintain an inventory of raw materials, critical supplies and high rotation products at the mine and Punto Lobitos Port facilities in Huarmey. We manage the replenishment of these goods mainly through Supplier Contracts and Annual Pricing Agreements. In addition to inventory products, the operation generates other requisitions for goods and services, which we address using Purchase Orders, Service Orders or Service Agreements.

Currently we have 5,383 registered suppliers, 1,139 of which conducted business with us in 2016 in amount of US$ 894.42 million dollars. Within the latter group, 137 came from Ancash and invoiced transactions totaling US$ 27.68 million dollars.

Moreover, our import purchases in 2016, amounted to US$ 70.7 million from 124 suppliers. Broken down, 35% of these were from the United States, 25% from Japan, 17% from China, 4% from Chile, and the remaining purchases from another 20 countries.

We use International Freight Agents to help us import products. They arrange to pick up the products of our suppliers around the world, consolidate them in their warehouse abroad and then ship them to Peru by sea, land or air. Once they arrive in Peru, we have Customs Agents who are responsible for the process of clearing the cargo through customs. Products that have cleared customs are then transferred to our Warehouse for Goods-In-Transit in Callao, where they are stored with the cargo delivered

there by our domestic suppliers. Our Logistics Operators then have these goods transported to the Mine or Punta Lobitos Port. However, some equipment and products having high volumes of consumption, are delivered directly to the mine by freight carriers hired by our suppliers. These carriers meet the safety requirements established by the company and are included in our Transport Carrier Plan.

In 2016, the transport carriers made 50,953 trips, of which 37,880 were freight cargo trips. Our transport suppliers traveled a total of 21,636,748.24 km without any accidents

Foreign

reported.

Purchases by origin in 2016

8%

Domestic 89%

Ancash 3%

(G4-12)


Antamina has a large demand for transport carrier services, and due to the nature of its business operation, transport carrier activities have exposure to a variety of risks that can have an impact on human life, the environment and community relations, while also affecting company operations.

To minimize the occurrence of accidents along their transportation routes and to ensure compliance with company objectives, we designed a strategic plan for transport carriers and suppliers, aiming to make their transport routes the safest routes that exist in Peru.

To help implement this strategy, we created the Transport Carriers and Suppliers Committee, which has convened every month since 2004, bringing Antamina together with freight and personnel transport companies and the suppliers that hire these companies.

This initiative enables representatives from the Departments of Logistics, Health and Safety and Emergency Services at Antamina, and representative of suppliers and transport carriers work as a team to implement the strategic plan, a plan aligned with Antamina’s strategic objectives and involves six subject areas of work: company development, health and safety, emergency services, environment and sustainable development.

Transport Carriers and Suppliers Committee

Each subject work area has a work group that is responsible for implementing initiatives that comply with the relevant objectives. These groups are composed of the supplier companies themselves, accompanied by an advisor from Antamina and they submit a monthly report on the progress completion of their objectives.

The implementation of this strategy through the Committee has enabled transport carriers and suppliers, which in any other setting would compete with each other, to cooperate and share their experiences in the work groups, and provide their services to our company with quality and safety, while continuously improving their business practices.

At the end of each year, the Committee awards companies with the best performance in the categories of Safest Company, Company with Excellent Performance, Best Driver, Escort Supervisors, Loader- Unloader, a Drawing and Painting Contest for the children and spouses of these partners, and Good Practices in Transport Management.


5.2.1. Strategic partner assessment

Antamina’s standard contract templates include clauses concerning ethical behavior in business, compliance with the law and Antamina’s policies. These clauses bind the contractor company to comply with Antamina’s code of conduct, its policies and the law. In addition, we have a formal mechanism for filing complaints in the events of violations of Antamina’s code of conduct, which permits people to submit their claims in writing, via email or by telephone through dedicated telephone lines expressly installed for this purpose. The claims are then processed by our compliance department, which takes the measures and steps needed until the claim is fully addressed and resolved. It is worth mentioning that to the extent that Antamina enters into agreements that comply with current regulations and laws, the probability of a violation of any human or employment right is substantially reduced.

Moreover, our mechanism of hiring suppliers and subcontractors guarantees the free right of association. There is no threat to the freedom of association at any of the locations of our operation or within the scope of activities of our supplier companies.

We have an annual program of administrative audits of our contractors, designed to check compliance with obligations in areas of employment, social rights and social benefits in addition to compliance with certain health and safety standards at work

so that companies can regularly improve their management practices.

Our company formally guarantees that no minors are hired to work at any of our centers of operation. In this respect, no significant or minor risk of child exploitation has been identified. In addition, owing to access control protocols implemented at the centers of operation, it is improbable that minors could enter our operational areas to perform any work activity. Current rules and regulations require occupational and high altitude medical examinations in addition to general and specific job induction activities for the type of work. All of the latter constitute natural filters within the process of admission of our personnel as well as the personnel of our contractors or their sub-contractors to operational areas. Starting in June 2016, the 2Personnel System was implemented to control access to operational areas. This system is directly fed information by authorized Health Care Centers and Induction Centers and by an authorized Insurance agents who validate the Supplementary Insurance for High Risk Work policies (SCTR the acronym in Spanish) or Personal Accident Insurance Policies. Under this system, and by applying the primary filter of checking the National I.D. card number, Passport or Alien Registration ID Card in the case of foreign nationals, we verify personal data and validate compliance with requirements governing access.(G4-HR4) (G4-HR5)

(G4-HR6) (G4-HR9)

(G4-LA15)(G4-EN30)


5.3. Our team

Over and above the production and sales of mineral concentrates, our company’s greatest competitive advantage resides in our human resources. The collaborators are the ones who shape the company’s leadership and soundness. Therefore, the company rewards each of them for their efforts with optimal job conditions, a good workplace environment and the stimulus provided by their overall professional and personal development.

In our company, the education, training and nurturing of our most valuable asset, our

employees, is of paramount importance. Therefore, given the importance of their work in the productive phase of the business, we concentrate our main efforts on those who work in the different areas of our operations. The company currently has 2,812 direct collaborators (763 employees and 2,049 operations workers), in addition to approximately 2,918 of strategic partners, who perform jobs in their different operational sites in a broad area of influence.

2,812

DIVERSITYBY GENDER

AGEDIVERSITY

2,648

286

1,993

533

(94.2%)

(10.17%)

(70.87%)

(18.95%)

(5.8%)

Male

164Female

Total number of collaborators

in 2016

DIVERSITY763

BY JOB CATEGORY

(27.13%)

(72.87%)

Employees

2,049Operators

Under theage of 30

Between 30and 50 yearsof age

DIVERSITYBY PLACE OF ORIGIN

919 (32.68%)Ancash

Over theage of 50

1,893 (67.32%)Otherregions


Diversity of the Antamina team in figures

More details of the figures on personnel diversity in the appendices are available in the appendices. (G4-10) (G4-LA12)


Personnel turnover

[1] % (Male/Female): value of the universe of the gender on the payroll. % Total: value of Antamina’s payroll.

[2] By place of reference.

Year Age

(1)New Hires

%TotalMale Female

N° % N° %

2016

Under the age of 30 48 38.4% 4 3.2% 41.6%

Between 30 and 50 62 49.6% 4 3.2% 52.8%

Over the age of 50 7 5.6% 5.6%

TOTAL GENERAL 117 93.6% 8 6.4% 100.00%

2016(2)Hires by Region

N° %

Ancash 53 42.4%

Lima 35 28%

Other regions 37 29.6%

Abroad

TOTAL 125 100.00%

(G4-LA1)


[3] (Male/Female): value of the universe of the

gender on the payroll. % Total: value of Antamina’s

payroll. Turnover based on Contract Term not

included.

[4] By place of reference.

Year

Turnover

(3)Age %TotalMale Female

N° % N° %

2016

Under the age of 30 6 8.2% 8.2%

Between 30 and 50 33 45.2% 4 5.5% 50.7%

Over the age of 50 27 37% 3 4.1% 41.1%

TOTAL GENERAL 66 90.4% 7 9.6% 100.00%

2016(4)Turnover by Region

N° %

Ancash 10 13.7%

Lima 53 72.6%

Other regions 10 13.7%

Abroad 0 0.00%

TOTAL 73 100.00%

Reason for Turnover2016

N° %

Death 1 1.4%

Mutual Agreement 39 53.4%

Trial Period 1 1.4%

Voluntary Resignation 25 34.2%

Justified Dismissal 7 9.6%

TOTAL 73 100.00%


5.3.1. Social benefits

Antamina has no part time workers. In addition, all workers hired for a Fixed Term have the same benefits as those hired for an Indeterminate Period. Therefore, there are few differences in the benefits that Antamina offers to skilled workers for work in operations and those offered collaborators qualified as Employees.

In addition, in the event of a job-related accident, the SCTR insurance policy covers 100% of the medical treatment of the worker until recovery. The worker also receives social

support from our Human Resource Department, in particular from the office of Social Welfare, through visits made while the worker is at the hospital or home to provide counseling in the management of activities during recovery. In addition, a series of health care visits are scheduled medical specialists from our company to help facilitate the worker’s recover.

[5]

Insurance coverage for

high risk work.


Legal Benefits

Additional Benefits

For Operators and Employees

For Operators Only

• Healthcare Insurance (complex care) - EsSalud.

• Subsidy for Temporary Disability for Work Activity - EsSalud.

• Subsidy for Maternity or Paternity.

• Subsidy for Breast-feeding.

• Subsidy for Death.

• Healthcare Insurance for Unemployment (latency) - EsSalud.

• Supplementary Health Insurance for workers in high risk jobs (SCTR).

• SCTR Supplementary Pension Insurance for workers in high-risk jobs.

• Bonus Compensation regularly disbursed near Peruvian Independence Day (one monthly salary).

• Christmas Bonus (one monthly salary).

• Employee Severance Indemnity (CTS).

• Health Insurance Plan from a Private Healthcare Provider for the titleholder, and dependents up to and including 25 years of age.

• Mandatory and Complementary Life Insurance from the first day of work with the company.

• Cancer Insurance

• Higher Education academic scholarships for children of workers

• Accident and Life Insurance - ESSALUD

• Additional bonuses according to special work conditions (High Risk Jobs, Night Work, Work at high altitudes, etc.).

(G4-LA2)


5.3.2. Equal pay

At Antamina, we make no distinctions between

In the table we can see the base salary of womenin relation to that of men, based on the averagesalary by job category. We see equality at the

men and women when setting compensation. Compensation is determined by the value of the job position and the study of market job salaries.

In the case of Staff personnel classified as Employees, we use a set of data sources as a reference about job salaries in the market in companies within the mining industry. Based upon this data, we prepare salary ranges for each job position or category. In addition, for operating personnel, we set salary increments through collective bargaining agreements, which sets uniform salaries for each level or category among operating personnel.

Collaborator CategoryBase Salary of Women relative to Men

(6)by job category in 2016

Staff Members 0.76

Employees 0.87

Operators 1.00

[6]

On the basis of

average earnings per worker category.

In general, a person who enters the company will be placed in the bottom third of their salary range. Subsequently, following good performance and years of service in the company, the collaborator can move toward the upper

operational level and gaps in staff memebers andemployees, in whose closure we are working.

third of the salary range.

(G4-LA13)


5.3.3. Industrial relations

Through the Industrial Relations Department, we maintain an open and permanent communication with workers and their union representatives, in harmony with the principals with collective labor management and in compliance with existing laws and regulations. To help us maintain close communication, we hold monthly meetings with the Board of Directors of Worker Unions where we address issues related to social welfare, health, food, lodging, and transport, etc. and we adopt resolutions that raise the quality of life of our collaborators.

Since the start of our operations, we have strived to maintain and promote good labor practices. To this end, we prefer ongoing communication and dialogue as a fundamental value.

As of the closing of 2016, we have three registered unions: SUTRACOMASA, SESTAFA and SITRASWORCOMASA, who represent 48.37%, 2.21% and 3.75% respectively of all of the company’s workers.

The collective bargaining agreement signed with SUTRACOMASA covers all workers within the scope of collective bargaining as it involves a majority union. The agreement is in effect for the period from August 01, 2015 until July

Sitrasworkomasa

31, 2018.

8%

Not affiliated 46%

Sestafa 2%

Sutracomasa 48%

(G4-11)


5.3.4. Training and development

During 2016, we consolidated the optimization of training and the use of the budget for these activities. We implemented a series of improvements in the identification of learning needs, planning and execution of activities.

We recorded 223,901 hours of training in this period. It should be noted that, despite the

impact of the economic crisis in the mining sector caused by the low price of metals, we continue to invest not only in training activities aimed at closing gaps of a technical nature or legal compliance, but also earmarked 13 % of total hours in activities related to reinforcing personal dimensions and management in its employees. The amount invested during 2016


in Training reached a total of USD $ 2,567,729.

We also optimize the use of the EduAntamina online platform. We implement the support and dynamization table so that users can navigate more easily. In total, 244 people have developed the Change Management course (53% of the total) and 266 the Leadership course (60% of the total). Likewise, four virtual courses of the DS-055 were designed and executed for supervisory staff, registering a 97% compliance.

2010 2011 2012 2013 2015 20162014

300.000

250.000

200.000

150.000

100.000

50.000

0

130.376 111.273

249.841

268.799

137.825 147.600

223.901

Below is the graph with the history of training hours since 2010:

(G4-LA9)


In 2016, we identified the need to reinforce a series of dimensions related to the interaction between our employees and highlight our values as a company. This is how we designed the conceptual framework of the “Todos Somos Antamina” program (TSA), with the close collaboration of the Vice Presidency of Operations and the Vice Presidency of Human Resources, Communication and Security, as well as the support of a renowned consulting firm in this themes.

The first step was the conformation of the TSA Mina Committee, since this is the area with the largest number of collaborators in the company. As part of the program and after a rigorous process of raising needs, we conducted the first round of workshops for four mine operations guards (609 participants, 56% of the total), the execution of reinforcing workshops for supervisors (24 participants, 80 % of the total) and the subsequent realization of a second round of workshops for all Mine Operations guards, which also had a lot of participation.

We identified a series of actions and work fronts in order to give sustainability to this process such as: support in supervisors’ projects, human resources talks in the changing of the guard and sports championships, among others.

We are all Antamina

We also formed the TSA Maintenance committee to support the program in this management. Thus, we held a first round of workshops for six groups of collaborators (a total of 635 participants, 78% of the total). Likewise, we carried out six focus groups with collaborators from all areas of Maintenance to gather in-depth information and execute a series of alignment workshops with Supervisors.


Performance Management System

We have a Performance Management system for our employees, a process that consists of four main stages:

The system has the platform “Maximize your Contribution”, which is a tool that is constantly being improved and that helps to manage all the information related to employee performance. During 2016, we improved the user experience of the platform, making it more user-friendly. We also improved the calibration process so that the evaluations could be reviewed by the managers and vice-presidents and we optimized the quality control for the elaboration of objectives and comply with the SMART methodology. Additionally, we permanently reinforce the evaluation criteria and how to give adequate feedback.

We also implemented the process of formal recognition for good performance (44 people awarded for their performance during the previous year), monitoring for performance improvement (seven people, in conjunction with the IRR) and defining a new scale for evaluating objectives (qualitative and simpler).

It should be noted that this system serves as input for other subprocesses of Human Resources, such as promotions or incentive plans.

Identification of strategic objectives coordinating with Management

Planning of objectives, where the supervisor and the colaborator identify together the main goals and actions to cover during the year

Mid-year review to follow-up and feedback on the advance towards the goals achievement.

End-year assessment that seeks to establish the score and the level that every colaborator has reached in complying with goals and actions

1 2 3 4


5.3.5. Health and Safety

The health and safety of our collaborators and strategic partners is a priority for Antamina. For this reason, we seek to minimize and control any job related risk by setting our targets at zero injuries and zero accidents.

In this regard, our Health and Safety management holds the international OHSAS 18001 certification, which establishes a set of certifiable requirements that seek to control occupational risks that affect the health and safety of its collaborators and strategic partners. Our Health and Safety Program is implemented in accordance with Supreme Decree N° 055-2010-EM and is primarily embodied and documented in the of Policy on Health and Safety, Environment, Community Relations and Human Rights, and Internal Regulations on Occupational Health and Safety .

Our Health and Safety Program includes worker induction and basic orientation, where the company gives instruction to the workers regarding our policies such as the rules and procedures of Health and Safety, Environment, Social Management, Human Resources and Physical Security. This training has a duration of eight hours per day for two days and is administered and supervised by the Department of Human Resources.

When a worker enters the company to start a job, the supervisor in charge gives him training

sessions related to the work area, which consists of theory and practice learning sessions. This training lasts eight hours for a period of 4 days. Once the worker has completed over six months on the job, he or she is given training according to the basic training matrix in mining occupational health and safety, where each worker must receive instruction of no less than 15 hours on a quarterly basis.

Guests who visit the mine must first attend a one hour induction training session on industrial safety in the Terminal located at the Entrance to the Yanacancha Camp.

(G4-LA6) (G4-LA7)

Accident Rate

Category 2015 2016

Human fatalities 0 0

Index of Disabling Accidents 0.11 0.30

Lost days Antamina 0 61

Lost days Strategic Partners 0.86 108

Occupational diseases 0 0

Index of reportable accidents Antamina 1.62 1.75

Index of reportable accidents Strategic partners

1.89 1.96


5.4. Human rights

5.4.1. Education in human rights

At the end of 2014, all of our personnel were trained in the Voluntary Principals of Security and Human Rights (VPSHR). This is why since 2015 only new personnel receive VPSHR training in their worker induction training programs. As of the end of 2016, we have no longer conducted this training.

Notwithstanding, all personnel from the Security Department are duly trained in VPSHR.

(G4-HR2) (G4-HR7)

Personnel

2016

Training hours

% trained

JV Resguardo (Private Security Contractor)

288 100


5.4.2. Human rights in the supply chain

The contracts that Antamina celebrates comply with current norms and laws, which minimized the possibility of vulnerating human rights, although, as is pointed in the section of evaluation of strategic partners, the contractors are audited following an annual program, where the respect to human rights is included. In the same way, our complaints channel is open to register any infringement to our code of conduct.

We also have a Policy on Health and Safety, Environment, Labor Practices, Community Relations and Human Rights. Our policy stipulates the behavior expected of all workers, strategic partners and everyone who has a permanent or temporary connection with our company. Among other things, the policy establishes respect for the Human Rights declared in the international arena and promotes compliance with the voluntary principles of security and human rights.

This demonstrates our commitment to good operating practices. Likewise, we expect to pass these on to our strategic partners, so they also learn to use them at all times, and in this way strengthen our corporate culture. We believe that a close and mutually strong bond can prevent any unwanted dispute by one of the parties. In this respect, we have included specific clauses in our standard contract templates, in which we require suppliers to

(G4-HR1)

respect our Code of Conduct, which demands mandatory compliance with all of our policies. It also includes specific guidelines regarding discrimination and harassment.

6. Environment – responsible

Environment – responsible management | |67

management

6.1 Environmental management system

We have assumed the promise to safeguard the environment. Similarly, we are devoted to protecting the collaborators, strategic partners and neighboring communities of our operation. For this reason, we strive to minimize and control emissions and discharges into the air, water and soil as well as the generation of waste and the occurrence of spills. To help us accomplish this, we use the most modern technologies available, and implement prevention and control programs to achieve environmental compliance in our operations.

Aiming to comply with the obligations in our Environmental Impact Study, legislation and environmental regulations, and in accordance with our Policy on Health, Safety, Environment, Community Relations and Human Rights, we have developed and implemented an Environmental Management System based on Standard ISO 14001:2004 in all operations has kept the certification for 7 years by international institutions.

With this system, environmental performance has improved throughout the company. Special attention has been given to the follow-up of our obligations, environmental and legal commitments, our permits and licenses.

Accordingly, we have optimized the consumption of water, electric power and paper with the participation of every collaborator and strategic partner.

Our management system places particular emphasis on compliance with the regulations and standards applicable to our business activity in topics such as waste, hazardous materials, domestic waste, transport, discharges, emissions and monitoring, among others.

(G4-14)

| | Environment – responsible management68

Total use of materials

6.2 Consumption of materials

As shown, there has been a 2.44% reduction in the total consumption of materials owing mainly to the lower use of explosives in the operation.

Year 2014 2015 2016

Consumption of Materials (in thousands of tons) 169,800 194,679 189,917


Total consumption of materialsIt is important to mention that, in comparison with the 2015 operating year, the consumption of new tires (by weight) and declined almost 18.4%, due to increased retreading of dump truck tires, thus extending the useful life of these materials. This reduction was achieved within the framework of the project entitled: “Developing Suppliers of Excellence” that promotes supplier innovation to contribute to positive company performance through improvements of processes and services. In this case, a local company supplies tire-retreading services to extend the average life of the tires used on haulage trucks.

In 2016, the company used a total amount of 76,147 tons of explosives and reduced the use of reactive substances in the processes.

MaterialsWeight (tons)

2015 2016

Tires 4,693 3,828

Reagents 40,101 37,279

Steel grinding balls

29,585 30,723

Other 31,450(7)materials

32,921

Total 105,829 104,751

(G4-EN1)

[7] Such as spare parts for major and minor

equipment (metals and belts, etc.).


The primary supplier of our energy consumption is the National Interconnected System. We do not generate our own power. However, on occasion, emergencies arise due to power restrictions, where we use power generators that consume diesel fuel to supply limited electric power.

It is important to point out that since March 2014, we are carrying out an initiative reduce electric energy consumption, which seeks to turn electric equipment off during the hours

Energy Source2014 2016

MW/h GJ MW/h GJ

Electricity (Interconnected System)

975,131.77 3’510,474.37 965,729.596 3’476,626.54

when rates are highest (between 6pm and 11 pm). According our estimates derived from our baseline data, we can state that our savings during 2016 amounted to 9,415.28 MW/h (in electric energy alone), without affecting our production plan.

(G4-EN3)

(G4-EN5) (G4-EN6)

6.3 Energy


6.4 Water

Since our operational startup, we continue to honor a commitment for the responsible use of water resources, despite our main operations are located in a region with an annual precipitation beyond 1000mm and with high water availability. We count with a Water Management plan developd to ensure the availability of the resource needed for operations, considering the best practices and an array of flexible options for its management; that allow us to minimize our impacts in the environment and, at the same time, avoid impacts on the water requirements of the surrounding communities.

a) Surface water

To satisfy our requirements for the mining area, we directly collect rainwater using dams and channels. This way, we do not compete with other users in the use of this resource.

It is important to mention that during 2016, 99.17% of the water used in the production process was recycled from the tailings pond, being one of the highest rates in the industry worldwide. The freshwater volume employed comply with our Surface Water Use Permit, authorized through Directorate Resolution RD 848-2013-ANA-AAA, that later was amended by R.D. No. 245-2014.ANA.AAA.M, No. 888-2014.ANA.AAA.M, No. 604-2015-ANA-AAA and No.576-2016-ANA-AAA.M.


2.3% of this consumption is explained by domestic uses (camps and offices). The remaining 97.7% is due to water use in the productive process itself; e.g. for dust suppression, concentrate transport via the ore pipeline down to Punta

Percentage water usage in mineral concentrate processing.

YEAR% Fresh Water

% Water in Process (Recycled)

2007 3.27 96.73

2008 2.81 97.19

2009 1.97 98.03

2010 1.93 98.07

2011 1.93 98.07

2012 1.03 98.97

2013 1.47 98.53

2014 0.78 99.22

2015 0.88 99.12

2016 0.83 99.17

Lobitos, preparation of reagents, equipment refrigeration, water use in camps, water evaporation from the tailings dam, and water retained in the tailings, etc. It is worth noting that the last three previously mentioned uses account for 84% of the total.

Besides, we return a high percentage of the water via outflows into the environment, ensuring that these outflows comply with the current maximum permissible limits (MPL), which is verified by national authorities such as the OEFA and the National Water Authority.

b) Ground water

Pumping water from the open pit is required to ensure the stability of open pit embankments and a safe mine. This pumping ascended to 62,357 m3 in compliance with our Ground Water Use Permit No. 001-2001-ANCASH-DR.AG-ATDR/AT, modified by R.D. N°322-2013-ANA-AAA.M and amended by R.D. N° 669-2013-ANA.M.

In this way, we limit the use of ground water to the minimum, without affecting an area that is not included in our footprint approved in the Environmental Impact Assessment.

(G4-EN8) (G4-EN10)


Antamina does not operate inside or near protected or restored habitats and it does not register activities in areas considered to lie within the National System of Natural Areas Protected by the State (SINANPE), or others with high values of biodiversity in their environmental setting. It is for this reason that we do not generate any significant environmental impacts on biodiversity in these specific areas. However, as part of the approved Environmental Monitoring Plan, we conduct biological monitoring of the direct environmental area of influence that has two components: hydro-biological monitoring carried out on bodies of water (water basins and lakes) and monitoring of terrestrial plants and animals.

The strategy of monitoring plants and animals is based on the assessment of both groups

6.5 Biodiversity conservation

(G4-EN13)

in the different vegetation units present in the direct environmental area of influence, distinguishing “exposure” monitoring stations and “control” monitoring stations, according to specific methodologies and ecological indexes. According to the results obtained at the close of 2016, we have not detected any significant changes that would indicate any effects from Antamina’s operation in the direct area of influence.

Every six months we perform hydro-biological monitoring in different bodies of water located around the mine and the Punta Lobitos port facilities. At the mine, monitoring focuses its attention lotic bodies of water (ravine water basins), where Antamina has its discharge points in still water environments, such as those in the different lakes located around Antamina’s operations. In both systems, we monitor water quality, sediment quality, macrobenthic organisms and fish. The results indicate that the presence of our operations generates no relevant impact on the diversity of the species in these environments. Moreover, in the case of Punta Lobitos Port, the historical timeline (1999-2016), we have observed no adverse effects generated by shipping port operations, while there are reports of natural fluctuations related to climatic events of a regional scale (El Niño event) and influences stemming from the Huarmey River.


We calculated the annual inventory of Green House Gas Emissions (GHG) in tons of carbon dioxide equivalents (t of CO2-eq), based on the guidelines established under standard ISO 14064-1: Part 1 Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions.

The calculation methodology is based on the guidelines established by the IPCC (2006), The GHG Protocol: HFC tool (WRI / WBCSD 2005); Guidance for voluntary, corporate greenhouse gas reporting, 2007 Calendar Year, Ministry for the Environment New Zealand Government. It is worth noting that SGS Peru accredited the calculation method in an audit.

We list the results obtained from our calculations for 2016 below:

During 2016, we changed fuels, moving from diesel 2 (D2) to biodiesel B5 (BD5), which is a fuel made up of a mix of diesel 2 and 5% (by volume) of biodiesel (B100) with low sulfur contents. In this way, we have become one of the first big scale companies to employ clean fuel in all their processes. This change was made in February 2016 and contributes to the reduction of CO2 emissions and of fine particles to the atmosphere (in example, PM2.5).

6.6 Emissions

Emmisions (tons of CO2-eq)

Year Scope 1 Scope 2 Total emissions

2015 475,039.50 278,887.69 753,927.19

2016 481,001.55 276,198.66 757,200.21(G4-EN16)(G4-EN15)


6.7. Waste water

Aligned with our water use efficiency, Antamina returns to the environment a high level of water used in its processes through their discharge points in compliance with applicable regulations We have four water discharge points divided into two basins as follows:

a) Ayash Ravine

The water discharges toward the Ayash basin, which flows north toward the Puchca River, which in turn converges with the region’s main river, the Maranon River.

• CO-13: Final discharge of process water from the Tailings Dam, the exit from the settling tank tunnel. Volume discharged in 2016 was

317,322,779 m .

• CO-16: Subsystem for treatment of surface run-off water from the Tucush Dump. Volume

3discharged in 2016 was 1,078,583 m .

• CO-21D: Point of discharge of the water flowing through the tailing dam filtration system. Total volume discharged in 2016

3was 5,295,270 m .


(G4-EN24)(G4-EN22)

b) Antamina Ravine:

The water discharges near the Pampa Moruna Basin and flows toward the Mosna River, changing names after Puchca River, which in turn converges with the region’s main river, the Maranon River.

• CO-24: Point of discharge of all water produced in the mine pit, which pours out from this single point. The treatment of this water is physical-chemical (continuous discharge). Total volume discharged in 2016 was 5,810,163 m3.

It is worth mentioning that as of the end of 2016, as in 2015, there was no spill to report.

Water discharge management at the mine

Basin StationDischarge Volume

3(millions of m )Receiving body

Antamina Ravine CO-24 5,8 Pampa Moruna Ravine

Ayash Ravine

CO-13 17,3

Ayash RavineCO-16 1,08

CO-21D 5,3

In addition, we have a quality-monitoring program that includes the sampling and analysis of our discharges, and of the receiving bodies, contracting with laboratories certified by Inacal. Consequently, we guarantee total compliance with current legislation and regulations at each of the discharge points.


Within the legal framework and in accordance with our environmental policy, we have undertaken to manage our waste without affecting the environment or public health. To this end, we carry out environmental control activities (primarily at the sources of emissions) and activities aimed at minimizing waste generation.

Comprehensive and sustainable waste management at our operations combines waste collection methods, waste separation systems, valuation and use. To accomplish this we have implemented different awareness campaigns and correct waste separation methods.

Currently, the practice of recycling and separating waste at the place where it is generated is gaining momentum and notoriety in our society. In this regard our collaborators are committed to these actions both for environmental and ecological reasons (preserving natural resources by reincorporating the waste into the industrial processes) as for economic ones (decline in costs

In 2016, Antamina (the Mine and Punta Lobitos

of collection, transport and final disposal).

6.8 Waste management

port) generated 13,135.9 tons of waste, 76% of which was non-hazardous waste and 24% was hazardous waste. At the Mine alone, 66% of the non-hazardous waste was reutilized while 69% of the hazardous waste was reused.


Mine Port

Non hazardous waste Tons % Tons %

Generation 9,856.4 100.0 152.2 100.0

Reutilization 6,590.6 66.8 25.1 16.5

Disposal in sanitary landfill site or in the East dump

3,265.8 33.1 127.1 83.5

Hazardous waste Tons % Tons %

Generation 3,002.9 100.0 124.3 100.0

Reutilization 2,081.7 69.3 12.7 10.2

Disposal in a security landfill site 921.2 30.6 111.6 89.7

The table below shows the waste generation numbers for 2016 at the mine and the port.

Organic waste is taken to a composting plant to produce organic fertilizer, which is sifted and bagged for its use in the Revegetation Program. Otherwise, it enters a worm composting process until obtaining work manure. Waste that is not composted is disposed of in the sanitary landfill at the mine or the East Waste Dump, under existing licenses.

Waste involving cardboard, paper and plastic bottles (PET) is conditioned and packaged into bundles for storage and sale through a solid waste distributing company (EC-RS), for processing in an authorized recycling plant. Scrap waste, tires, high-density polyethylene tubes and rubber waste materials are independently separated, stored and either reused internally or sold (G4-EN23)


through the EC-RS for subsequent recycling in authorized plants. In turn, waste with no commercial value and unusable bits and pieces are disposed of at the mine’s sanitary landfill site or the East Dump.

Wood packaging waste is separated, prepared, dismantled and classified for later reuse within the mine. Any remaining fragments are disposed of at the mine sanitary landfill. Finally, unusable inorganic waste is disposed of at the mine’s landfill or the East Dump.

Used mineral oils are stored at the mine and then sold through an EC-RS who transports this material to plants authorized by DIGESA for subsequent recycling.

Finally, all other hazardous waste is stored in the waste yard to be transferred to a secure landfill site outside the mine, using different methods to properly manage and transport them, such as segregation, compacting, pre-treatment or trituration.


Currently we have the Updated Closure Plan of the Antamina Mining Unit (APCM Antamina) (KCB 2012) approved under R.D. N° 200-2012-MEM/AAM dated June 20, 2012. This document describes the closure activities of every Antamina component.

The closure plan seeks to secure the long-term physical and chemical stability of every component and all infrastructure in compliance with current legislation. As part of the Antamina Plan, the company has been recovering organic soil, preserving it in piles and replanting it to prevent water and wind exposure. It is worth noting that as of the end of 2016, and according to the timetable, no mine closure work has been done anywhere in Antamina.

In January of 2016, the company fulfilled its obligation to provide its annual financial guarantee as provided in the last Closure Plan. The amount of the guarantee is US$ 41,217,510.00 US Dollars.

6.9 Closure plan

(MM10)


We guide environmental investment towards compliance with environmental legislation, as well as compliance with all obligations derived from its Environmental Management Instruments (IGAs), Licenses and permits and findings of Environmental Supervision.

It is also oriented towards the promotion of good practices and environmental projects that impact on the reduction of risks or towards a better management of costs, as well as the maintenance and strengthening of the Environmental Management System (EMS) based on Standard 14001.

6.10 Environment investments and expenses


Operative Expense Capital Expense

Solid waste management US$ 920,000

PPL environmental management US$ 790,000

Projects (closure studies) and erosion control US$ 1,800,000 US$ 180,000

Water and biodiversity management US$ 520,000 US$ 960,000

Air quality management US$ 430,000 US$ 160,000

Others US$ 190,000

TOTAL US$ 4,650,000 US$ 1,300,000

(G4-EN31)(8)

Additionally, each operational area is responsible for the management of its environmental aspects; for example, the internalization of costs in the management of solid waste, compliance with operational environmental management programs, the movement of organic soil (top soil), the water management system and disposal of tailings, among others.

On the one hand, the efficiency of environmental spending is evaluated in two ways:

• Monitoring of environmental objectives through the ICA indicator, which is a personalized indicator of each performance management in environmental issues of its operations or under its supervision.

• Number of supervisory findings (OEFA, internal and external audits of the GHS).

On the other hand, the efficiency of environmental investment is evaluated through the company’s budgetary and financial execution mechanisms. It is this system that accounts for the environmental investments of the entire company.

In 2016, the Environment Management was responsible for the following investments and expenses:

[8]

Data sheet pending

from Rosa Campos.

7. About the sustainability report

Acerca del reporte de sostenibilidad | |87

7.1. Materiality process

Phases of determining Report content.

We have prepared this report in accordance with G4 guidelines of the Global Reporting Initiative and the GRI Sector Supplement for Mining and Metals. There have been no significant changes in the scope or coverage of the report since the previous edition and coverage exclusively involves the performance of Compania Minera Antamina S.A. for the year 2016.

To determine the content of our Sustainability Report – 2016, we validated the materiality process developed for the preceding edition of this document. This analysis identifies the impacts of the company’s processes and the expectations of stakeholder groups.

(G4-28)

(G4-23) (G4-22) (G4-17)

(G4-18)

1 2 3 4

ReviewWe reviewed the Sustainability Report 2015 and other reports in our industry.

Reviewed Antamina's performance reports for 2016.

We identified the sustainability impacts of 2016 through interviews with managers.

We identified expectations through dialogue sessions with stakeholder groups in 2016.

We applied the principles of sustainability context and that of stakeholder group participation.

IdentificationPrioritize aspects of sustainability according to the relevance of the impacts and the maturity of expectations.

We apply the GRI materiality principle.

Prioritization ValidationWe validated aspects of prioritized GRI with the Office of the Manager of Corporate Communications.

We used the principle of completeness.

| | Acerca del reporte de sostenibilidad88

Following the described process, we defined 31 material aspects to report on.

No. Category AspectCoverage

Internal External

1Economy

Economic performance X X

2 Indirect economic consequences X

3

Environment

Materials X

4 Energy X

5 Water X

6 Biodiversity X

7 Emissions X

8 Discharges and waste X

9 Environmental regulatory compliance X

10 Transport X

11 General X

12 Mechanisms for making environmental claims X X

13

Work practices and decent work

Employment X

14 Health and safety in the workplace X X

15 Training and education X

16 Diversity and equal opportunities X

17 Equal pay for men and women X

18 Assessment of supplier labor practices X

Acerca del reporte de sostenibilidad | |89

It is worth indicating that our reporting cycle is annual, and the last edition of this publication was released in the year 2016, reporting on the performance of 2015.

No. Category AspectCoverage

Internal External

19

Human rights

Investment X X

20Freedom of association and collective bargaining

X X

21 Child Labor X X

22 Forced labor X X

23 Security Measures X X

24 Human Rights Assessment X X

25 Mechanisms for making claims in human rights X X

26

Society

Local communities X

27 Fight against Corruption X X

28 Social regulatory compliance X

29Mechanisms for making claims related to social impact

X

30 Artisanal and small-scale mining X

31 Closure plans X

(G4-30)

(G4-19) (G4-20) (G4-21)

(G4-29)

8. GRI Table of contents

GRI Table of contents | |91

We have prepared this Report in accordance with the G4 Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI), under the essential elements option. Outside content verification was not done for this edition.

| | GRI Table of contents92

General Standard Disclosures Page External assurance

Global Compact

Strategy and Analysis

G4-1 Statement from senior decision-maker 4-5 −

G4-2 Key impacts, risks, and opportunities 15 −

Organizational Profile

G4-3 Name of the organization 109 −

G4-4 Activities, brands, products, and services 7 −

G4-5 Location of headquarters 109 −

G4-6 Location of operations Perú −

G4-7 Ownership and legal form 109 −

G4-8 Markets served 10 −

G4-9 Scale of the organization 7 −

G4-10 Information on employees and other workers 49, 105 −

G4-11 Collective bargaining agreements 57 − P. 3

G4-12 Supply chain 44-45 −

G4-13 Significant changes to the organization and its supply chain 11 −

G4-14 Precautionary Principle or approach 67 − P. 7

G4-15 External initiatives 17 −

G4-16 Membership of associations 17 −

Identified Material Aspects and Boundaries

G4-17 Entities included in the consolidated financial statements 87 −

G4-18 Defining report content and topic Boundaries 87 −

G4-19 List of material topics 88-89 −

G4-20 Boundaries of the material aspects identified within the organization 88-89 −


General Standard Disclosures Page External assurance

Global Compact

G4-21 Boundaries of the material aspects identified out of the organization 88-89 −

G4-22 Restatements of information 87 −

G4-23 Changes in reporting 87 −

Stakeholder Engagement

G4-24 List of stakeholder groups 28-29 −

G4-25 Identifying and selecting stakeholders 27 −

G4-26 Approach to stakeholder engagement 28-29 −

G4-27 Key topics and concerns raised 28-29 −

Report Profile

G4-28 Reporting period. 87 −

G4-29 Date of most recent report. 89 −

G4-30 Reporting cycle. 89 −

G4-31 Contact point for questions regarding the report. 111 −

G4-32 GRI content index. 91-100 −

G4-33 External assurance. 91 −

Governance

G4-34 Governance structure. 19-20 −

Ethics and Integrity

G4-56 Values, principles, standards, and norms of behaviour. 12-14 − P. 10


Specific Standard DisclosuresPage Omissions External

assuranceGlobal

CompactDisclosure Management Approachs (DMA) and Indicators

Economic Performance

DMA Economic Performance 10 − −

G4-EC1 Direct economic value generated and distributed. 11 − −

Indirect Economic Impacts

DMA Indirect Economic Impacts 35-41 − −

Infrastructure investments and services supported.G4-EC7 36-39 − −

Environmental Category

Materials

DMA Materials 68-69 − −

G4-EN1 Materials used by weight or volume. 68-69 − − P. 7 y 8

Energy

DMA Energy 70 − −

G4-EN3 Energy consumption within the organization. 70 − − P. 7 y 8

G4-EN5 Energy intensity. 70 − − P. 7 y 8

G4-EN6 Reduction of energy consumption. 70 − − P. 7 y 8

Environmental Category

Water

DMA Water 71-72 − −

G4-EN8 Water withdrawal by source. 71-72 − − P. 7 y 8

G4-EN10 Water recycled and reused. 71-72 − − P. 7 y 8



assuranceGlobal


Biodiversity

DMA Biodiversity 73 − −

G4-EN13 Habitats protected or restored. 73 − −

Emissions

DMA Emissions 75 − −

G4-EN15 Direct (Scope 1) GHG emissions. 75 − − P. 7 y 8

G4-EN16 Energy indirect (Scope 2) GHG emissions. 75 − − P. 7 y 8

Effluents and Waste

DMA Effluents and Waste 76-81 − −

G4-EN22 Water discharge by quality and destination. 77 − − P. 7 y 8

G4-EN23 Waste by type and disposal method. 80 − − P. 7 y 8

G4-EN24 Significant spills. 77 − − P. 7 y 8

Compliance

DMA Compliance 107 − −

G4-EN29 Non-compliance with environmental laws and regulations. 107 − −

Transport

DMA Transport 47 − −

G4-EN30Significant environmental impacts of transporting products and other goods and materials for the organization’s operations, and transporting members of the workforce.

47 − −



assuranceGlobal


Overall

DMA Overall 84-85 − −

G4-EN31Total environmental protection expenditures and investments by type.

85 − −

Environmental Grievance Mechanisms

DMA Environmental Grievance Mechanisms 42 − −

G4-EN34Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms.

43 − −

Social Category

Labor Practices and Decent Work sub-Category

Employment

Enfoque de gestión de Empleo 48 − −

G4-LA1 New employee hires and employee turnover. 50-51 − − P. 6

G4-LA2Benefits provided to full-time employees that are not provided to temporary or part-time employees.

52-53 − −

Occupational Health and Safety

DMA Occupational Health and Safety 62 − −

G4-LA6Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities.

62 − − P. 2 y 4

G4-LA7 Workers with high incidence or high risk of diseases related to their occupation.

62 − − P. 2 y 4



assuranceGlobal


Training and Education

DMA Training and Education 58 − −

G4-LA9 Average hours of training per year per employee. 59 − − P. 6

Diversity and Equal Opportunity

DMA Diversity and Equal Opportunity 48 − −

G4-LA12 Diversity of governance bodies and employees. 49 − − P. 6

Equal Remuneration for Women and Men

DMA Equal Remuneration for Women and Men 55 − −

G4-LA13 Ratio of basic salary and remuneration of women to men. 55 − − P. 6

Supplier Assessment for Labor Practices

DMA Supplier Assessment for Labor Practices 47 − −

G4-LA15Negative social impacts in the supply chain and actions taken.

47 − − P. 4 y 5

Human Rights sub-Category

Investment

DMA Investment 65 − −

G4-HR1Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening.

65 − −

G4-HR2 Employee training on human rights policies or procedures. 63 − −



assuranceGlobal


Freedom of Association and Collective Bargaining

DMA Freedom of Association and Collective Bargaining 47 − −

G4-HR4 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk.

47 − −

Child Labor

DMA Child Labor 47 − −

G4-HR5 Operations and suppliers at significant risk for incidents of child labor.

47 − −

Forced or Compulsory Labor

DMA Forced or Compulsory Labor 47 − −

G4-HR6Operations and suppliers at significant risk for incidents of forced or compulsory labor.

47 − −

Security Practices

DMA Security Practices 63 − −

G4-HR7 Security personnel trained in human rights policies or procedures. 63 − −

Assessment

DMA Assessment 47 − −

G4-HR9Operations that have been subject to human rights reviews or impact assessments.

47 − − P. 1 y 2

Human Rights Grievance Mechanisms

DMA Human Rights Grievance Mechanisms 43 − −

G4-HR12 Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms.

43 − − P. 1



assuranceGlobal


Society sub-Category

Local Communities

DMA Local Communities 31-33 − −

G4-SO1Operations with local community engagement, impact assessments, and development programs.

33 − −

MM6Number and description of significant disputes relating to land use, customary rights of local communities and indigenous people.

43 − −

MM7The extent to which grievance mechanisms were used to resolve disputes relating to land use, customary rights of local communities and indigenous people, and the outcomes.

43 − −

Anti-corruption

DMA Anti-corruption 23 − −

G4-SO3Operations with significant actual and potential negative impacts on local communities.

24 − − P. 10

G4-SO4 Operations assessed for risks related to corruption. 25 − − P. 10

Compliance

DMA Compliance 107 − −

G4-SO8Non-compliance with laws and regulations in the social and economic area.

107 − −



assuranceGlobal


Grievance Mechanisms for Impacts on Society

DMA Grievance Mechanisms for Impacts on Society 43 − −

G4-SO11Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms.

43 − −

Closure Planning

MM10 Number and percentage of operations with closure plans. 83 − −

Appendixes | |103

9. Appendixes

9.1. Complaints associated with land use

During 2016, there were 16 claims associated with land use. These are described below:

Name of Claimant Description of Complaint Status

Crisóstomo Veramendi InglesClaim regarding lack of payment for 600 Hectares of land on the Fundo Yanacancha in his favor.

Closed

Bertha Bañez Francisco

Warning for Antamina to abstain from any negotiations for a Tucto property, explaining that she had successfully lodged an injunction to impede any agreement on this property.

Closed

Crisóstomo Veramendi Ingles Refer to the Usupallares case. Closed

Gonzalo Carlos Herrera Diaz (Maximiliana Diaz Valencia)

Mentions property rights on the corner of the Piruro property.

In process

Hugo Anibal Gaytán DiazIrene Nancy Diaz Guerra

Places Antamina on notice that the true owners of the Tucto rural property are the claimants and issues warning on negotiating the purchase of their land with the Association of Farmers and Cattle Ranchers connected with the heirs of the Lucia and Melchor Mauricio Muñoz family.

In process

Leonardo Cruz Valverde, presidente de la CC de Aquía

Claim regarding land acquisition in Carcas. Closed(MM6) (MM7)

|104| Appendixes

Pablo Huayta Leyva

Submits notice that in the event that his family members Juana María, Lucia, Nonato, Rufino, Perpetua, and Emiliano Huayta Layva take legal action for property rights, the claimant will have no responsibility whatsoever.

Closed

Wilfredo Héctor Huilcanina Espinoza

Requests meeting to talk about the severance, purchase and sale of a rural property in Airachin, Juprog sector.

In process

Anibal Quijano Paulino

Asks for clarification about returned money, S/ 19,500 he had received in compensation. States that Antamina requested that return the money because the company had overpaid him.

Closed

Marcial Cadillo BaltazarRequest a meeting and fulfillment of prior agreements.

In process

Walter Solorzano Llanos Claim for payment to intestate succession. Closed

Hermelinda Salvador RojasClaims that her mother is the owner of several land properties in the village of Juprog.

In process

Simeón Paucar Claims payment for his land. Closed

Walter Solorzano LlanosClaim on behalf of third party issue and hiring of legal advisor.

Closed

Asociación de agricultores y ganaderos de Pucayacu Pomacocha

Requests meeting to discuss position of concession.

Closed

Max Espinoza RubinaRequests replacement of perimeter wall near his property.

Closed

Appendixes | |105

9.2. Personnel diversity tables

(G4-10)

Year Category Age

Manpower/Labor

Grand TotalMale Female

Skilled Unskilled Skilled Unskilled

N° % N° % N° % N° % N° %

2016

Employee

Under the age of 30 21 0.7% 7 0.2% 28 1%

Between 30 and 50 477 16.9% 82 2.9% 559 19.8%

Over the age of 50 162 5.8% 14 0.5% 176 6.3%

Operators

Under the age of 30 226 8% 19 0.7% 10 0.4% 3 0.1% 258 9.2%

Between 30 and 50 1,364 48.5% 23 0.8% 44 1.6% 3 0.1% 1,434 51%

Over the age of 50 351 12.5% 5 0.2% 1 0 357 12.7%

TOTAL GENERAL 2,601 92.4% 47 1.7% 158 5.6% 6 0.2% 2,812 100%

|106| Appendixes

Year Category Age

Gender and Region


Ancash Other region Ancash Other region

% N° % N° % N° % N° %

2016

Employee

Under the age of 30 4 0.1% 17 0.6% 7 0.2% 28 1%

Between 30 and 50 57 2% 420 14.9% 10 0.4% 72 2.6% 559 19.8%

Over the age of 50 11 0.4% 151 5.4% 1 0 13 0.5% 176 6.3%

Operators

Under the age of 30 171 6.1% 74 2.6% 10 0.4% 3 0.1% 258 9.2%

Between 30 and 50 550 19.6% 837 29.8% 27 1% 20 0.7% 1,434 51%

Over the age of 50 77 2.7% 279 9.9% 1 0 357 12.7%

TOTAL GENERAL 870 30.9% 1,778 63.2% 49 1.8% 115 4.1% 2,812 100%

Year Category Age

Type of Employment Contract


Permanent Fixed Term Permanent Fixed Term

% N° % N° % N° % N° %

2016

Employee

Under the age of 30 13 0.5% 8 0.3% 7 0.2% 28 1%

Between 30 and 50 443 15.7% 34 1.2% 79 2.8% 3 0.1% 559 19.8%

Over the age of 50 160 5.7% 2 0.1% 14 0.5% 176 6.3%

Operators

Under the age of 30 90 3.2% 155 5.5% 9 0.3% 4 0.1% 258 9.2%

Between 30 and 50 7 0.2% 1,308 46.5% 41 1.5% 6 0.2% 1,434 51%

Over the age of 50 79 2.8% 349 12.4% 1 0 357 12.7%

TOTAL GENERAL 792 28.1% 1,856 66.1% 151 5.3% 13 0.5% 2,812 100%

Appendixes | |107

9.3. Penalties and fines received in 2016

(G4-SO8)(G4-EN29)

• Internal audits and inspections.

• External audits.

• Annual review by executive management, where the President and CEO reviews a series of topics ranging from policy and organizational objectives to the programs implemented each year.

• Use of software applications to register the compliance status of requirements related to accident investigations, inspection, committees, recommendations raised regarding assignments and other monitoring activities that come up in the annual health and safety program.

To prevent sanctions and fines, in our Integrated Management System, we have implemented the monitoring of regulatory compliance using different tools, such as:

• Use of software to register high-risk job checklist compliance, with immediate notification to executive management.

• Annual training program.

• Occupational Safety and Health Committee.

• Occupational Health and Hygiene Programs.

• Emergency response plan.

Aspects Administrative penalty Amount in Peruvian Soles S/

Health and Safety 5 (9)126,400.00

Employment-Workplace 0 0

Tax Law 0 0

Environment 2 Non-pecuniary observations

[9]

All five sanctions are

currently in process and have been refuted and

appealed in their entirety without receiving a

statement yet from the authorities.


Company Locations

Lima Offices

Av. El Derby 055, Torre I, Piso 8 – Santiago de

Calle Alberto Reyes 249, Huarmey

Surco

Huaraz Offices

Calle Celso Bambarén 1065 Plazuela Belén

San Marcos Offices

Huarmey Offices

Plaza de Armas s/n

To obtain more details regarding this report and Antamina, please write to:

Office of Corporate [email protected]

Advised by:

www.avanzasostenible.comAvanza Sostenible

(G4-3) (G4-7)

(G4-31)(G4-5)

SUSTAINABILITY REPORT 2016

sustainability report 2016 - antamina.com · |4| letter from the president & ceo we have...

Documents