Sustainable development priorities

The strategic importance given to sustainable development in Codelco is shown by a number of changes adopted in 2001.

The Corporation began a process of structural adjustment that involved the creation of a Vicepresidency of Operational Excellence, Promotion and Sustainability, under which were created four management areas: those of market development and operational excellence; and two more related to this issue: Sustainable Development, and Environmental Management and Sustainability.

In June 2003, the Executive Committee approved the Policy on Sustainable Development of Codelco which, among other commitments, will intend to develop and maintain ethical and responsible business practices, respect and protect the fundamental human rights and the dignity of all persons that work in its operations.

The Policy on Sustainable Development of the Corporation privileges also the dialogue with the interested public, internal and external, looking forward to build mutual trusts and cooperate in the construction of the common good based on equity.

The new policy strengthens the Environmental, Security and Occupational Health Administration Policy, approved in September 2001, which replaced the Environmental Policy (valid since 1995).
For Codelco the commitment of the mining industry to sustainable development implies some key actions:

• A modern management of environmental, safety, occupational health and community relationship issues.
  
• Mitigation of the possible environmental impacts of the productive processes.
• A project investment plan that reduces environmental impacts and increases efficiency in the use of scarce resources.
• A compensation policy for those cases in which it is not possible to eliminate or to mitigate the environmental impacts.
• A policy of solution of historical environmental problems.
  

Since 1995, the environmental strategy of Codelco takes into account the economic, legal and ethical aspects of the issue. From an economic viewpoint, we understand that an irresponsible environmental performance may have dire consequences, both from the viewpoint of financial risks as from that of image leading to value loss for the shareholders. From a legal viewpoint, we have a fundamental commitment to comply with the existing legislation, but with the ethical challenge of going beyond that, through a commitment to responsibly manage the environmental impacts.

The strategy to improve environmental management of Codelco has been an agressive one and it is reflected in an investment portfolio that is unprecedented in the company`s history. Between 1994 and 2000, 773 million dollars were spent in environmental projects, including the reduction of smelter emissions, actions to improve the efficiency of water and energy use and the management of solid and liquid wastes.

In 2001, the total of the environmental investments of the Corporation amounted to approximately 50 million US dollars. During 2002, Codelco destined over 204 million US dollars in investments in environment and labor security. In 2003, the total of the investments in environment and labor security amounted to over 57 million US dollars.