Codelco Good Neighbor is a strategic program of the Corporation that is part of the Policy on Sustainable Development. Its objective is to contribute to the generation of favorable conditions that stimulate and strengthen the development of the surrounding communities of its operations.

Codelco Good Neighbour works continuously with the communities of its mining area in favor of the economic development, respect of environment and social progress.

This program looks for the appreciation and respect of the community, with the intention of building mutual trusts and positioning Codelco as a model of Corporative Social Accountability, increasing hereby the value of the Company.

Codelco is guided by the values of trust, solidarity, transparency and accountability and intends to act as an ally of its neighbors, establishing networks and alliances between public and private actors of the civil society and its employees and collaborators. This implies recognizing the social, cultural and political diversity.

This program works based on the development needs and priorities, indicated by the surrounding communities, and strives for a participation culture. Therefore it promotes long term projects, oriented towards the developments of human and social skills.

Among the actions of the program Codelco Good Neighbor are the following:

Hacienda Ecológica Los Cobres de Loncha.

The Hacienda Ecológica Los Cobres de Loncha, of Division El Teniente, is an example of the new mining, as it shows that in area where the tailings are deposited a sustainable ecosystem can exists.
This project was created in 1991 and strives to generate a protected area around the tailing deposit Carén, located 80 kilometers south of Santiago.

It implies conservation and recovery activities of the natural resources of the area, recreation, environmental education, ecotourism and programs related to community development.

In order to materialize this project, first the sustainable use of the hacienda Los Cobres de Loncha, of almost 23,000 hectares including the Carén reservoir, was evaluated through an agreement of the Agronomy Faculty of the Pontificia Universidad Católica de Chile. The goal is to achieve a sustainable coexistence between the operations, the surrounding ecosystem and the neighboring communities.

In June 2003, the Joint Initiative Group, which includes 12 public entities, the communities and Codelco, signed a pioneer agreement to work on the sustainability of the commune of Alhué, next to the hacienda. Currently, a rural tourist program is being developed which will be the main activity of the sustainable development of Alhué.

In 2003 started the implementation of the Centro de Educación Minero-Medioambiental (Mining - Environmental Educational Center) and the construction of an Educational Farm.

Currently, in the area of intensive use of the farm the agro-ecological farm is working, with areas dedicated to turkeys, chicken, rabbits, sheep, cows and horses, and an artificial lake, which is provided with fresh water from the Carén reservoir.

The lake next to the humid soil created by the deviation of the water from the Carén stream show the coexistence of the natural environment with a mining tailing deposit. In the humid soil nests an important colony of white-necked herons (Ardea cocoi), which is considered a rare species in Chile.
The hacienda ecológica has also a place to show the cultivation of vegetables (lettuce, broccoli, cabbage, green peas, chard, wheat, oats, onion and cauliflower), irrigated by fresh water from the reservoir.

Indigenous Populations Program

The Indigenous Populations Program constitutes a restructuring of the former Agricultural Program, which operated from 1995 to 2003. After nine years of continuous execution, the results were evaluated and the conclusion was that the program needed changes in order to achieve the following objectives:

• Support the execution of the Business Plan that Division Codelco Norte needs to execute in Alto Loa.
• Involve all indigenous communities (located in this area), in a program headed by Codelco Norte.
• Participate actively in the Indigenous Development Area Alto Loa, created to focus the assigned resources by the Chilean government to the indigenous communities.
• Improve the efficiency in the distribution of the resources contributed by Codelco Norte, coordinating these with governmental initiatives.
  

In summary, the Indigenous Populations Program of Codelco Norte, works together with the communities of Alto Loa in the execution of a development program which is culturally adequate, and which is able of integrating and complementing its actions with the initiatives expected by the Indigenous Development Area (IDA) Alto Loa.

It intends to execute the New Treaty Policy for the indigenous populations and strengthen the social capital of the communities and indigenous association members of the IDA Alto Loa, Quillagua and Oasis de Calama.

To achieve the above mentioned an annual Work Plan has been agreed with the leaders of the indigenous communities.

Voluntary Environmental Agreements

The Divisions El Teniente, Andina and Salvador have subscribed voluntary agreements with the environmental authorities of their respective regions. These protocols have as mission to solve historic environmental problems and contribute to the achievement of national and local goals in this issue.

In 2001 El Teniente Division subscribed the first Voluntary Environmental Agreement with the public entity of the area. As a result of this agreement an environmental work table was created which agreed with the authorities the most relevant matters and a work schedule. This table has complied with 60 percent of its initial commitments and extended its functioning until 2008.

In 2003 started the Decontamination Plan of Caletones, the most important environmental project of the central area of the country, with an investment of US$ 270 million dollars. In 2004 continues the progressive closing of 23 dumping areas of mining waste products.

25 thousand tons of waste mass have been stabilized coming from the copper smelting process. The use of asbestos has been replaced and 30 prevention plans have been elaborated related to spillings, processes and safe storage of dangerous substances.

At the Andina Division, the Agreement was signed in October 2002. Through a work table 42 environmental problems were identified. As of this date, concrete solutions have been given to 19 of them in relation to solid waste material, spill control and particulate material, among others. In 2003, among other activities, the cleaning of the dumping area Cola Los Leones was executed, through the excavation and withdrawal of dangerous waste material buried in that area.

These commitments are inspected according to a control and follow-up schedule, which will be evaluated integrally in December 2005.

Until 2004 works and studies have been performed amounting to US$4.2 million dollars. In the next years investments have been considered amounting to US$24.8 million dollars.

Salvador Division signed with the authorities of the III Region a Voluntary Agreement in November 2002, which established a regularization calendar of the environmental permits of the division, a handling and disposal program of liquid waste material and a cleaning and environmental management program.

In 2003, the agreement progressed in relation to the cleaning and environmental management programs. An inspection camera started to operate in the system of the sewage waters of the leaching process, as well as a treatment plant for the sewage waters of this process.

The objectives of the signed agreements have the intention of incorporating in the production sector strategic components as for example prevention measures, mitigation, cleaning of polluted areas, and as a result of them, the development of clean technologies that allow the achievement of environmental standards in accordance with current legislation and the public policies on environmental issues.

Radomiro Tomic Ecological Center

The work center Radomiro Tomic signed in 1998 an agreement with the Corporación Nacional Forestal, Conaf (National Forestry Corporation), to forest the dry areas in altitude, with a result of 13 hectares with 3,000 plants adapted to the conditions of this area.

Currently, actions are performed in the forestry area, contributing knowledge and techniques for the development of forestry in altitude. In addition, actions related to environmental awareness and education are being performed, mainly to children.

Important issues are the implementation of windscreens in Lasana and Chiu Chiu; the provision of trees to the project Forestemos Calama, and the execution of conferences on environmental education in this center.

During 2003, 1,700 persons visited the ecological center.

A green cover for Chañaral

Since 2001 Division Salvador is working together with Conaf in forestry and is experimenting with shrub-like species to adapt them to the conditions of the bay of Chañaral. This forestry plan in tailing sands from mining operations has the purpose of achieving a green cover that avoids the progress of the dunes.

Among the species with the adaptability are the Atriplex Nummularia and the Maritime Sosa, with great regeneration ability, high tolerance to the saltiness and very resisting.

As a complement to this project, since September 2002 a portion of the bay is moistened with sea water, avoiding also the dispersion of sand. In December 2003, and after decades of closure due to pollution, the Playa Grande [Large Beach] of Chañaral was given to its neighbor as a bathing area.
In addition, Codelco collaborates with a plan of tourist development of Chañaral through training in issues related to service quality, marketing and the elaboration of projects.

Huechún archeological museum

During 2003, Andina Division established this archeological museum in the area of Huechún to rescue the archeological pieces discovered in areas that will be flooded by the tailings. This project gives compliance with an environmental commitment with Conama to protect this heritage that belongs to the Aconcagua Cultural Complex.

Cultural Gallery

in 2002 the Corporate Head Office created the Cultural Gallery of Codelco, in which have exhibited over 100 national and foreign artists, as for example painters, goldsmiths, sculptors and photographs.
The gallery has emphasized especially the artistic diffusion of young artists, together with the work of known artists. Therefore, it does not have additional charges to the exhibitors, aiming also to the diversification of techniques and artistic trends in constant exhibition.

In addition, two large exhibits have been sponsored about the history of copper and its importance in the development of culture and civilization. One of them, the Civilization and Copper exhibit of the Codelco Collection, was exhibited in Chile, Argentina, Mexico, Peru and Bolivia; and the other, the Museum of the Large Mining is a permanent exhibit in Sewell (located in Chilean VI Region).
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Social reintegration workshops

During 2003, training was performed with Gendarmería de Chile (Prison Guards) for persons in jail at the prison Colina I, through a workshop of repoussé work on copper.

In 2004, a workshop was performed in the elaboration of products in copper plates LEC, which intends to create future labor integration alternatives and an effective personal rehabilitation, together with new selling options of copper products.