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LOMO DE 1 cm ?

ANGLOAMERICAN

CHILE

Sustainable Development Report

2006

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Anglo American ChileAv. Pedro de Valdivia 291CP 750-0524 - Providencia, Santiago Telephone (56-2) 230 6000Fax (56-2) 230 6551www.anglochile.cl

Design / ProductionPeople Marketing Group

Advice on the use of GRI guidelinesYasmina Zabib M.

Contact us

For further information, please contact:

Lorenzo Menéndez

Safety and Sustainable Development [email protected]

Fernando Valenzuela

Environmental and Community [email protected]

Marcelo Esquivel

External Affairs [email protected]


2006

ANGLOAMERICAN

CHILE

� SuStainable Development RepoRt anGlo ameRiCan CHile

Message from the CEO

Scope

Company Profile

Energy Efficiency Programme

Our People

Safety and Occupational Health

Environmental Performance

Social Performance

Economic Performance

Targets and Commitments

Appendix 1

Appendix 2

Global Reporting Initiative Index

4

6

7

33

41

51

61

79

87

93

97

98

100

Contents

� anGlo ameRiCan CHile SuStainable Development RepoRt

Message from the CEO

Globalwarminganditsdirecteffectonclimatechangenotonlyhasscientistsconcernedbutalsocompaniesandtheinternationalcommunity.Mostexpertsbelievethattheconcentrationofgreenhousegasesintheatmosphere,mainlyduetohumanactivity,iscausingchangestotheweather.Ifsuitablemeasuresarenottakentoredressthissituationrightnow,computer-basedforecastsauguracomplexoutlook.

TheKyotoProtocol,theSternReport,andmorerecentlythereportoftheIntergovernmentalPanelonClimateChangeoftheUnitedNations,allconcurthattheearth’stemperaturehasrisen,thattherewillbelargechangestotheearth’sphysiognomy,andthatwehavetotakeactionimmediatelytospursomekindofpositivechangeforthefuture.

Asawayofestablishingstandardsonthisissue,AngloAmericanintendstoachieveademandinggoal:attain15%globalenergyconsumptionefficiencyinallitsoperationsworldwide,taking200�asthebasisand201�asthetarget.

Wearemovingsoundlyandsteadilytowardsachievingthiscommitment.WelaunchedourEnergyEfficiencyProgrammein200�,inwhichweestablishedtargets,thoseaccountable,methodologiesandstepstoachievethecorporateobjectives.Wethencarriedoutasurveyineachoperation,withtheCO2emissionsandenergyandwaterconsumptionsegmentedbyprocess.Wealsodefinedawayofmeasuringthisandcreatedtheconceptof“certifiedreductions”Wehavenowcertifiedreductionsof2.�8%inenergy,1.87%inCO2emissionsand2.5�%inwaterconsumption.

Atthesametime,wehavestrivedtofindwaysofboostingenergysavings:wewerethedriversofthecreationofaminingpaneltoshareexperiences,andwesignedanagreementwithHondaMotortopurchasehybridautomobilesforthecompanyanditsemployees.ThisendeavourearnedustheEnergyEfficiencyAwardoftheMinistryofEconomyandtheConfederationofProductionandCommerce.

MESSAGE FROM THE CEO

5 SuStainable Development RepoRt anGlo ameRiCan CHile

MESSAGE FROM THE CEO

Pieter LouwCEO

AngloAmericanChile

Anotheraspectwehavebeenespeciallyzealouswithisourcommunityengagement.WeappliedtheSEATin200�,whichhasenabledustolearnmoreaboutthesocio-economicrealityofthecommunitiesaroundouroperations.Wehavecarriedoutvariousinitiativesbasedonthisanalysisandwewillrepeatthisprocessin2007-2008.Wewillthenknowwhetherwehaveachievedtangibleprogress.

Moreover,inthe2005reportweinformedaboutthedecisiontoassignUS$�millionfortheestablishmentofarotatingfundtopromoteenterpriseandsocialdevelopment.Thiswasmaterialisedwithaninitiativecalledthe“Emerge”Programme,whichentailsdirectworkwithsmall-sizedcompaniesandalsoindirectsupporttolocalentrepreneursthroughthe“FondoEsperanza”micro-creditsfoundation.

Theprojectwillinitiallyhelpover1,800entrepreneursfromtheprovincesofQuillota,SanFelipeandChacabucooverthenexttwoyearsbymeansofaninvestmentofUS$500,000.Thegoalistoreach6,700entrepreneursinthreeyearswithatotalinvestmentintheorderofUS$2.5million.

Withregardtoourworkforce,AngloAmericanbelievesthatsafetyisacorevalue.Wehavethemoralobligationofassuringarisk-freeworkplaceforourownandcontractoremployees.Asaresultoftheinitiativesundertaken,thetotalLTIFRwas0.��in2006andtheaveragecontractoraccidentsratedroppedfrom0.85to0.�8intwoyears.Thisisanachievementwewouldliketoshare,butitisnoreasontorelaxinoursearchforthecorporategoalof“ZeroHarm.”AmanagementsystemcalledtheAngloSafetyWaywasalsodevelopedin2006,whichwasdrawnupbasedonthebestpracticesintheindustryandonrenownedinternationalstandardslikeOHSAS18001.

Asinpreviousreports,ourthirdsustainabledevelopmentreportpresentsabalancedvisionofourfinancial,environmentalandsocialperformance,andthistimewe

haveincludedtheimpactscausedbyminingoperations.Tocopewithsuchimpacts,wehavedevelopedoperationclosureplans;wehavesupportedthemostvariedresearchonbiodiversityinthedivisionswhereitisimportantforthelifeofautochthonousfloraandfauna;wehaveimplementedrecyclinginitiativesandwehavebackedvariouscommunity-focusedactivities,amongotheractions.

Iamconvincedweareontherighttrack,butwecandoevenbetterwiththeeffortofnotonlyAngloAmericanbutalsothesupportandcollaborationofourneighbours,theauthoritiesandeveryoneinvolvedinouroperations.Iamconfidentthatworkingasateamwecanleavealegacyofabetterworldforfuturegenerations.

6 anGlo ameRiCan CHile SuStainable Development RepoRt

Scope ThethirdsustainabledevelopmentreportofAngloAmericanChileoutlinestheeconomic,socialandenvironmentalperformanceofallitsdivisions,i.e.,LosBronces,MantosBlancos,ElSoldado,MantoverdeandtheChagresSmelter,plusthecorporateofficesinSantiago.Moreover,itincludesthefinancialandproductioninformationofitsstakeinCompañíaDoñaInésdeCollahuasi,whenrelevantandwhereitisexpresslystated.ItincludestheperformancefromJanuary1toDecember�1,2006,andinformationfrom200�isconsideredtomeettheprinciplesofcomparisonandclarity.Wehavealsoconsideredinformationfrompreviousperiods,wheneverapplicable.

Aslastyear,wehaveincludedaspecialchapteronourEnergyEfficiencyProgrammewithacommitmentofraisingenergyefficiencyby15%by201�.ThisprogrammealsoenvisagestargetstoimprovetheefficiencyofwaterusageandareductionofCO2emissions.

WewillalsotouchonsomeissuesaddressedbyourGoodCorporateCitizenshipprinciples,whichwereincludedinthetwopreviousreportsandarenowavailableonthecompany’swebsite.

Thestructurethisyearisasynthesisbetweenthe2002GlobalReportingInitiative(GRI)guidelinesandtheG�,whichisthenewgenerationofGRIindicators.WehavealsoincludedtheexplanationsandindicatorsoftheMiningandMetalsSupplementoftheGRIandtheGuidetoCommunicationonProgressoftheGlobalCompact.Themostimportantcommunityconcerns,accordingtothesocio-economicassessmenttoolbox(SEAT)process(seepages28and81),areaddressedinmoredetail.

TodrawupthisreportandensuretheimpartialityoftheinformationandabidancebytheGRIguidelines,wehiredtheservicesofanexternalconsultant,whichwasinchargeofcollectingtheinformationandadvisingusonhowtopresentit.�0internalandexternaldocumentswerereviewedforthis(seepage98)and15interviewswereheldofvice-presidents,managers,andvariousareaheads.Thiswastoguaranteethedocumentverificationprinciple.Regardingthis,thedataoftheLosBroncesDivisionwasauditedbyKPMGduringthecorporatereportingauditofAngloAmericanplc,andthefinancialinformationwasanalysedbytheexternalauditorsDeloitte&Touche.Theiropinionwaspublishedinthe2006AnnualReport.

ThefinancialinformationisstatedinUSdollars,unlessindicatedotherwise.Lastly,wehaveprinted1,500copies

inSpanishandwehavemadeadigitalEnglishversion.Tofacilitateaccess,wehaveincludedthecontactnames,shouldyouwishtohaveacopy.ThedocumentisavailableonthewebsiteofAngloAmericanChile(www.anglochile.cl)whereitispossibletoreviewallthereportsissuedbythecompany.

SCOPE

CompanyProfile

“How can trust be built between companies, NGOs and the public at large? One way is through very open reporting on standardised indicators such as those developed by the Global Reporting Initiative (GRI).”

Sir Mark Moody-Stuart

Chairman

AngloAmericanplc



Anglo American plcAngloAmericanplcisagloballeaderinminingfocusedonaddingvalueforshareholders,customers,employeesandthecommunitiesinwhichtheGroupoperates.Itownsawell-diversifiedrangeofhighqualityassetscoveringgold,platinum,diamonds,coal,ferrousandbasemetals,industrialmineralsandpaperandpackaging.

IthadsalesofUS$�8,6�7millionandearningsofUS$5,�71millionin2006,withChileanminingoperationsaccountingfor�5%.AngloAmericanplchasover6�operationsonthe5continentsanditemploys195,000people.

ItsheadofficeisinLondonanditssharesaremainlytradedontheLondonstockexchange,andonthefinancialmarketsinSouthAfrica,Switzerland,NamibiaandBotswana.In2006,itmaintaineditsSTOXXEuropeanregionalindexandobtainedasecondplacerankingontheDowJonesSustainabilityIndex(DJSI)withascoreof8�%,comparedwithanindustryaverageof57%andthehighestbeing86%.

Thegroupstrivestoattainworld-classperformanceinallitsbusinessareasthroughthefollowingdivisions:

• AngloPlatinum.• AngloDiamonds.• AngloGold.• AngloCoal.• AngloIndustrialMinerals.• AngloFerrousMetalsandIndustries.• AngloPaperandPackaging.• AngloBaseMetals. Chile

�5%

Group65%

Accolades

in February 2006, the uK association of

Chartered Certified accountants (aCCa)

awarded anglo american plc the best 2005

Sustainability Report.

Furthermore, in the 2006 Global accountability

Report on accountability and transparency

published by one World trust, the company

was one of the two multinationals (out of 10)

that obtained over 50% in the “participation,

Response and assessment, and Compliance”

categories, regarding the presentation of

information and response to external requests

Chile’simportancefortheGroupbasedon2006earnings

COMPANY PROFILE ANGLO AMERICAN PLC


Cynthia Carroll

on october 24, 2006, it was informed that the

north american Cynthia Carroll will take over

as the Ceo of anglo american plc effective as

of march 1, 2007, to succeed tony trahar who

held this office for six years. this is the first

woman to take the helm of this multinational

and the third in the history of a FtSe 100

company, which is a category of the one

hundred most highly capitalised companies

listed on the london Stock exchange. She

studied geology at Kansas university and

holds an mba from Harvard. one of her first

activities was to come to Chile in January

2007 when she visited the los bronces Division

and Chagres Smelter, and held meetings with

representatives of the Chilean mining industry

and government authorities.

SafetyisbeenadoptedasacorevalueforAngloAmerican.Thesmalldecreaseinfatalitiesin2006,amountingto��(�6in2005),isatopconcern.Thecompanycontinuestostrivetomeetitstargetof“ZeroHarm,”forwhichitcreatedasafetymanagementstandardbasedonthebestinternationalpracticescalledtheAngloSafetyWay.Thisintroducedannualauditsofthissystemandconcreteactionplanstoimprovetheconditionsbeyondtheregulation(seepages52and5�).

AllthedivisionshavetheISO1�001certification,almostadozenoperations,includingthe5operationsinChile,havecompletedtheSEATcommunityengagementprocess(seepages28and81),andalloperationsareimplementinganintegratedriskmanagementsystemthatconsiderseconomic,environmentalandsocialvariables.

OneofthemajorchallengeshasbeentoimproveenergyandwaterefficiencyandatthesametimelowertheCO2emissions.Withthisaim,thecompanyhassetdemandinggoalsforthenextfewyearssoastoconsolidateasustainablefutureforthecompanyandfuturegenerations(seepage��).

ImportanceofAngloBaseMetalsbasedonOperatingEarnings

anglo base metals

anglo platinum

anglo Ferrous metals and industries

anglo Coal

anglo paper and packaging

anglo Gold

anglo Diamonds

anglo industrial minerals

ANGLO AMERICAN PLC COMPANY PROFILE

1�%

8%

5%

5%

5% �%

2�%

�8%

15%

7%

5%

9%

5%

21%

25%

1�%

20062005


AngloAmerican ChileAngloAmericanChileispartoftheBaseMetalsDivision.ItisthethirdlargestminingcompanyinChileregardingproductionandoneofthelargestglobalcoppercompanies.Its2006earnings,includingthestakeinMineraCollahuasi,amountedtoUS$�,�0�million,andincreased67%onthosein2005.

ThedivisionsoperatedbyAngloAmericanprovidedirectjobsfor2,505employeesandindirectjobsfor�,118contractors.Collahuasihasanapproximateheadcountof2,500employees.

ThecompanyhasbeenpresentinChilesince1980andoperatesfivedivisions.Fourofthem(LosBronces,MantosBlancos,ElSoldadoandMantoverde)areengagedintheexploration,mining,processingandmarketingofcopperconcentrateandcathodes.LosBroncesalsoproducesandmarketsmolybdenumandtheChagresSmelterproducesanodes/blisterandsulphuricacid.

AngloAmericanoperatesthefivedivisionsthroughEmpresaMineradeMantosBlancosS.A.andMineraSurAndesLtda.Italsohasa��%stakeinCompañíaMineraDoñaInésdeCollahuasi.ThefinancialandproductioninformationofAngloAmerican’sinterestinCollahuasiispresentedinthisreport.However,alltheotherindicatorsonlyrefertothe5divisionsoperatedbyAngloAmerican,asCollahuasidrawsupitsownsustainabledevelopmentreport.

Anglo American’s strategy is focused on generating long-term value for its shareholders, customers, employees and the communities in which it operates.

2006ConcentrateSalesBreakdown

Chile / Codelco y Xstrata

China / traders

brazil / Caraiba metals

2006AnodeSalesBreakdown

uSa (phelps Dodge)

Chile (Codelco)

mexico (Cobre de méxico)

belgium (Cumerio)

USA22.�% Chile

29.8%

Mexico28.6% Belgium

19.2%

Brazil�0.�%

Chile60.6%

China9.1%

COMPANY PROFILE ANGLO AMERICAN CHILE


2006EarningsbyProductBreakdown

��%

�7%

2�.2%

0.6% �.2%

anodes/blister

Concentrates

Sulphuric acid

molybdenum

Cathodes

2006CathodeSalesBreakdown

mexico

brazil

peru

France

Germany

italy

Japan/Korea

taiwan

China

uSa

ANGLO AMERICAN CHILE COMPANY PROFILE

AngloAmericanChile’sCustomersWorldwide

ppe invex

Caraiba

Codelco - las ventanas

Codelco - las ventanas

Xstrata

molymet

various

tyssen

nexans France

Deutche Giessdraht

Kme metals

Cumerio

Cumerio

Furukawa electric

Walsin lihwa

Cheng Kuo

minmetals

Southwire

encore Wire

phelps Dodge

Cobre de méxico

Cathodes

Anodes

Concentrates

Molybdenum

SulphuricAcid

2%

8% 2%

27%1�%

20%

12%

11%

1%

�%


Copper MarketingAngloAmericanChilemarketscopperfromitsofficesinSantiagoforcustomersworldwide.Theproductsarecoppercathodes,copperconcentrates,copperanodes/blister,molybdenumconcentrateandsulphuricacid(seetableOperationsataGlance).

Thecompanyproduced��6,78�tonnesoffinecopperin2006(totalproductionincludingCollahuasiamountedto6�0,�9�tonnes),brokendowninto288,29�tonnesofcoppercontainedinconcentrate(accountingforaround900,000tonnesofcopperconcentrate),and158,�90tonnesofcathodes.Italsoproduced2,5�9finetonnesofmolybdenumand�99,2��tonnesofsulphuricacid.

OfthetotalproductionofcopperconcentratesbyLosBroncesandElSoldado,70%goestotheChagresSmelter(approximately5�0,000tonnesofcopperconcentrates)andtomeetlong-termcontractdemand.Ifthereareanyleftovers,thesearenormallysoldinthespotmarket1totraderswhomostlysellittoChina.

VirtuallyalltheconcentratefromtheMantosBlancosDivisionissoldtoXstrata’sAltoNorteSmelteratLaNegrainAntofagasta.Ifanyisleftover,thisissoldtotradersthatmainlysellittoChina.

AnodesandblisterareproducedbytheChagresSmelterforfourrefineries,forwhich90%to95%oftheproductionissetasideforCodelcoVentanas(Chile),PhelpsDodge(USA),CobredeMéxico(Mexico)andCumerio(Belgium).Shouldtherebeanyleftover,thisissoldinthespotmarket.

Over158,000tonnesofcoppercathodesaresoldtocustomersworldwide,withwhomAngloAmericandevelopsandmaintainsalong-lastingrelationshipoftrust.Someofthemajorcustomersare:SouthWireandEncoreWire(USA);PPE-Invex(Brazil);Cumerio(Belgium);Codelco(Germany);Thiesen(Germany);KME(Italy);Nexans(France);WalsinandChengKuo(Taiwan);andFurukawa(Japan).

Product Security

In2006,theauditarearequestedaformal“product”definitiontoestablishthefeaturesandmaximumlimitsofcertainelementstomeetthecontractscommitted.

Thehighcathodepurityfullymeetstheinternationalcertificationstandard.Inthecaseofcopperconcentrateandcopperanodes/blister,thequalityisexpresslylaiddowninthecontracts.Ifproductiondoesnotmeetthedefinedstandard,theproductcanbesoldtothelong-termcustomerwithitsconsent,oritissoldinthespotmarket.

Copper accounted

for 56.6% of Chile’s

exports amounting to

US$33,340.4 million

in 2006, essentially

due to its high price.

This was an 82.1%

increase on 2005,

according to data of

the Chilean Central

Bank

1SpotMarket:This isthemarketwhereproductsareusuallysold for immediate delivery in the commercial terms of themoment.


1� SuStainable Development RepoRt anGlo ameRiCan CHile

Thepre-productionworksofElSoldado’sExtendedPitwerecompletedinDecember2006toguaranteetheplantorefeedandmaintainfinecopperproductionofover70,000tonnesperannumandsulphidetreatmentof7.6milliontonnesayearforthenext16years.TheprojectentailedaninvestmentofUS$7�milliontopurchaseequipment,openthepit,andexpandworkshopsandotherminorworks.

Theengineeringphasecommencedin200�anditsmainchallengewastheminingoftheRiscoSurarea(1,�90m.a.s.l.)duetoitbeingimpossibletogetexcavatorsandheavy-dutyequipmentintothearea.Tosuccessfullycompletethisstageoftheproject,itwasnecessarytostripover20milliontonnesofmaterialfromthehighpeaksofElSoldado,whichweretransportedtotheElSaucedump.

CASESTUDY

El Soldado

completes the

extended pit works


1� anGlo ameRiCan CHile SuStainable Development RepoRt

ItislocatedintheAndesmountainsintheMetropolitanregion65kilometresfromSantiago.TheconcentratorplantandthetailingsdamarelocatedinLasTórtolassector,districtofColina.Thisistheonlydivisionthatproducesmolybdenum,acopperby-product.

Itislocatedinthecoastalmountains,districtofNogales,FifthRegion,600m.a.s.l.Thereisanopen-pitmineandanotherundergroundone.Italsohasoxideandsulphideoretreatmentplants.

Themineis800m.a.s.l.,�5kmnortheastofAntofagasta,SecondRegion.Itisanopen-pitminewithcrushingplants,whichusessolventextractionandelectro-winningtotreatoxideores.Italsohasasulphideoretreatmentplantthatproducescopperconcentratecontainingsilver.

Itislocated56kmfromtheChañaralport,ThirdRegion.Itisanopen-pitcoppermine,withacrushingplant,amechanisedmaterialconveyanceandstockpilingsystem,heapleachingandasolventextractionandelectro-winningprocess.

ThisisoneofthemostmodernsmeltersinChileandislocatedinCatemu,FifthRegion.Itsproductiveprocessisundertakenbymeansofaflashfurnaceanditscurrentprocessingcapacityis18�,000tonnesoffinecopperperannum.Thenominalsulphurcaptureisaround97%,whichmakesitoneoftheleadingsmeltersinChilefromanenvironmentalstandpoint.

2006 2005 200�

Totalcopperproduction(tonnes) 226,020 227,268 2�1,55�Copperconcentrate(tonnes) 18�,�87 188,�� 199,825Coppercathodes(tonnes) �2,5�� 8,8�� 1,729Molybdenum(tonnes) 2,5�9 2,12� 1,706

C12DirectCost(USc/lb) 6�.2 �9.5 �2.5

2006 2005 200�

Totalcopperproduction(tonnes) 68,697 66,�80 68,8�2Copperconcentrate(tonnes) 62,200 59,972 60,727Coppercathodes(tonnes) 6,�97 6,508 8,105C1operatingcost(USc/lb) 119.0 98.2 67.�

2006 2005 200�

Totalcopperproduction(tonnes) 91,7�5 87,711 9�,877Copperconcentrate(tonnes) �2,607 �9,108 �6,708Coppercathodes(tonnes) �9,1�8 �8,60� 58,169C1operatingcost(USc/lb) 112.1 87.1 69.�

2006 2005 200�

Copperproduction(tonnes) 60,�22 62,000 60,111Coppercathodes(tonnes) 60,�22 62,000 60,111C1operatingcost(USc/lb) 79.9 7�.9 65.2

2006 2005 200�

Finecopperproduction(tonnes) 17�,�1� 1�8,06� 165,010Acidproduction(tonnes) �99,2�� 17,870 ��0,51�C1operatingcost(USc/lb) 12.� 1�.5 8.5

Operations at a Glance LosBronces

ElSoldado

MantosBlancos

Mantoverde

FundiciónChagres

2C1cost:minecost+plantcost+overheads+salesexpenses(smelting,refiningandfreight).



*ParamayorinformaciónsobreelProyectodeDesarrollodeLosBroncesesposiblesolicitarfolleteríainformativa.

CASESTUDY

Los Bronces

Development Project

AngloAmericanChilesubmittedtheEnvironmentalImpactStudy(EIS)oftheLosBroncesDevelopmentProjectin2006,whichentailsasetofnewfacilitiestoincreasetheoreprocessingcapacityfromthecurrent58,000tonnesperdaytoanaverageof160,000tonnesperdayataninvestmentofUS$1.2billion.ThesemodificationswillraisetheproductionofLosBroncestoapproximately�70,000tonnesoffinecopper.

TheLosBroncesDevelopmentProjectincludestheconstructionofnewpipelinesandpumpingstationsintheAndesmountainsandthevalley.Itonlyenvisagestheuseofareasthathavealreadybeenintervenedwithoutaffectingmajorenvironmentalassetslikenewrockglaciers,“vegas”�(mountainmeadows),orothers.Inthecaseofadditionalwaterneededbytheproject,thiswillbeobtainedbyreallocatingcurrentusageandbyprocesswaterrecirculationfromtheLasTórtolastailingsdam.TheprojectdoesnotincludeanymodificationstothecurrentfacilitiesintheSanFranciscosector.

Operationalcontrolsandsafetymeasureswillbesteppeduptomonitorcompliancewiththeregulationsandobjectivesset.Moreover,thecitizenparticipationprocesswascarriedoutinTilTil,Colina,LoBarnecheaandLosAndesfromOctobertoDecemberaspartoftheEnvironmentalImpactAssessmentSystem.Mayors,councillors,opinionleadersandcommunity

representativesattendedthemeetings.Themainissuesraisedinthisprocesswerewateruseandconsumption,suspendeddustofLasTórtolas,andtrafficproblemsonthepublicroadtoLosBronces.

OncetheEnvironmentalImpactStudyhasbeenapproved,constructionwilltakethreetofouryears,andtheadditionalproductionisthereforeexpectedby2011

� “Vegas”aredenseorverydenseherbformations,integratedbytemporarysurfacedraining associatedwithsalinestreamsorsoils.



Thediagramshowsthekeyimpactsoftheminingoperations.AngloAmericanreportsonitsresponsetotheseimpactsinthe2006SustainableDevelopmentReport,assumingthematerialityprincipleoftheGlobalReportingInitiative(GRI).Theseissuesincludetheriskmanagementsystem(page2�),theISO9001,ISO1�001andOHSAS18001(page25)certifications,safetyandoccupationalhealthmanagementprogrammes(page51),theenergyefficiencyprogramme(page��),andcommunityinitiatives,includingtheimplementationoftheSEAT(page79).

1.Exploration

• Respectforculturaland ethnicsensitiveissues.• Careandprotectionof protectedareas.• Respectforneighbouring communities.• Respectforhereditary resources.• Promoteandmaintainclose conservation-focused relationswithNGOs.

3.Transport• Preventequipmentand trafficaccidents.• Minimisedustemissions.• Optimisetheuseoffossil fuelsandpreventfuelspills.

4.Processing• Minimiseworkerexposure tohazardoussubstances andothercausesof accidents.• Preventfuelandchemical spills.• Maximisetheefficientuse ofwaterandenergy.• Minimiseemissions.

5.Waste• Minimisesurfacewaste disposalimpacts.• Controlandmanagethe impactcausedbyacid fromwaste.

6.TailingsDams• Containseepage ofmetalsandother contaminants.• Preventfloodingand faults.

2.MiningOperationsandQuarries• Conservationofsurfaceand groundwaterresources.• Guaranteethestabilityofpit wallsandofdumpfacilities.• Minimisedust,noise,vibrations andvisualimpactgeneration.• Optimisethedeploymentof resourcesandmanagethe impactintheclosure processes.

Key Operation Impacts



7.WaterConsumption• Preventimpactsonthe groundandsurfacewater quality.• Maximiseefficientwater use.• Reduceglobalconsumption, especiallyinoverexploited areas.

9.Communities• Assuretheongoing commitmenttostakeholders tounderstandtheir concerns.• Contributetoeconomic development.• Contributetoachieving themillenniumdevelopment targets.• Promotelocallabour andlabourdevelopment opportunities.

10.Regulations&NationalandInternationalPolicies• Promoteandprotecthuman rights.• Preventcorruption.• Guaranteehighethical standards.• ComplywiththePrinciplesof GoodCorporateCitizenship.• Complywithapplicable legislationinadvance.

11.ClosureandRehabilitation• Minimisethelong-term environmentalandsocial impact.• Preserve,restoreand enhancethebiodiversity.• Assurefinalsustainable landuse.

8.Workers• Guaranteesafeworkplaces.• Offerconvenienthealth agreements.• Assurefairlabourpractices andopportunitiesfor personaldevelopment.



Good Corporate Citizenship Allthemembersoftheorganisationaregovernedbyadocumentcalled“GoodCorporateCitizenship:OurBusinessPrinciples,“�whichsetsoutthecommitmenttoallthecriticalaspectsofthecompanyanditisfocusedonconductingthebusinessinanethicalandsustainableway.Itaddressesissueslikebusinessintegrity,stakeholderengagement,therespectofhumandignityandtherightsofindividuals,healthprotection,worksafetyandcareoftheenvironment.Thisdocumentisembeddedintheorganisation’soperationandisaguideforemployeesandareferenceforstakeholders,especiallyinvestors,thegovernment,thefamiliesandcommunitiesassociatedwithitsoperations.

Differentactivitieswereusedtodisseminateit.Theprincipleswereincludedinthetwoprevioussustainabledevelopmentreportsthatweredeliveredtothemainstakeholders.TheyalsoformpartoftheinductionprogrammesandarestatedinaWelcomeManualgiventothoseenteringthecompany.Moreover,aclauseofabidancebytheseprinciplesisembeddedinthecontractorsandsuppliersdocuments,whomustpledgetocomplywithandrespectthemaspartoftheirwork.

GoodCorporateCitizenship:OurBusinessPrinciplesThefollowingarethekeyaspects5ofGoodCorporateCitizenship:

1. AngloAmericanasaworkplace• Weproposetoattract,developandretaintheservicesofthemostappropriately

skilledindividuals.• Werequireallouremployeesandcontractorstoperformtheirdutiesaccordingto

thehigheststandardsofethicsandintegrity.• Wewillnottolerateanykindofdiscriminationandwillpromoteworkplaceequality.• Wewillnottolerateinjuriestoourworkersandcontractorsandweshallcarryout

ouroperationspursuanttothisstandard.

2. AngloAmericanasaninvestment• Webelievethatofferingourshareholdersanexcellentreturnshoulderingourshare

ofsocialandenvironmentalresponsibilitiesarecomplementaryaspectsofmutualbenefit.

3. AngloAmericanasagoodcorporatecitizen• Weseektomakeacontributiontothewell-beingofthecommunitiesassociated

withouroperationsandwearecommittedtoabidingbytheprinciplesofsustainabledevelopment.

• Wewillfullycomplywiththecurrentregulationandwillnottakepartwhatsoeverinanycorruptoranti-competitivepractices.

4. AngloAmericaninthebusinessworld• Wewilltryandestablishmutuallybeneficialrelationshipswithourcustomers,

businesspartners,contractorsandsuppliers.Wewillstriveforthemtoseeusastheirpreferredsuppliersandpartners.

�Thecompleteversionisavailableonthecompanywebsitewww.anglochile.cl5ThenumberingindicateswhatthekeyaspectsofGoodCorporateCitizenshipare.Someexcerptsofthedocumentareincludedinthisreportandthecompletetextisavailableonthecompanywebsite.


COMPANY PROFILE / ANGLO AMERICAN CHILE (Presentación de la Compañía)COMPANY PROFILE / STAKEHOLDERS (Presentación de la Compañía)COMPANY PROFILE / INTERNATIONAL AGREEMENTS (Presentación de la Compañía)COMPANY PROFILE / VOLUNTARY NATIONAL AGREEMENT (Presentación de la Compañía)COMPANY PROFILE / MEMBERSHIP (Presentación de la Compañía)ENERGY EFFICIENCY PROGRAMME / CLIMATE CHANGE (Prog. Eficiencia Energética)ENERGY EFFICIENCY PROGRAMME / A DEMANDING GOAL (Prog. Eficiencia Energética)ENERGY EFFICIENCY PROGRAMME / PROGRAMME PROGRESS (Prog. Eficiencia Energética)ENERGY EFFICIENCY PROGRAMME / SHARING EXPERIENCES (Prog. Eficiencia Energética)PEOPLE / ORGANISATIONAL DEVELOPMENT (Personas)PEOPLE / RECRUITMENT (Personas)PEOPLE / LABOR RELATIONS (Personas)

PRESENTACIÓN DE LA COMPAÑIA ANGLO AMERICAN PLC

The company has even transmitted the principles of Good Corporate Citizenship to its business partners, contractors and suppliers. They have pledged to abide by them and make them part of their operations.



Corporate GovernanceUptoDecember�1,2006,theBoardhad1�members,whoreceivenoremunerationfortheirservices,madeupof7incumbentdirectorsandthesamenumberofalternatedirectors.AlltheboardmembersareexecutivesofAngloAmericanChileorAngloAmericanplcandtheywereappointedbythepartners.Hence,MineraSurAndesLtda.andEmpresaMineraMantosBlancosS.A.designatedthreeincumbentandthreealternatedirectorseach,andbothcompaniesjointlyappointedaseventhincumbentdirectorandhisalternate.

TheadministrationanduseofthetradenameAngloAmericanChileLtda.correspondstothepartnersthroughtheBoard,whomeetasmanytimesasnecessarytoevaluatethecompany’sperformanceaccordingtothearticlesofassociation.Someoftheissuestheyreviewaretheinvestmentplan,monthlyandannualresults,newprojects,thedisposalofrealestate,andthecompany’sbusinesses,amongothers.AlltheBoardmeetingsanddecisionsarerecordedintheBoardBookandanymodificationtothearticlesofassociationisregisteredintheCommerceRegistryandpublishedintheOfficialGazette.

Thecompanyholdsafullaccountingsystem,issuesanannualreport,balancesheetandfinancialstatementsthatarereviewedbyexternalauditorseachyear.Deloitte&Toucheweretheauditorsin2006.

Anglo American Chile Boardas of December 31, 2006

inCumbent alteRnateDDiReCtoRS DiReCtoRS

peter Smith Robert Cunningham

pieter louw John Dyer

Felipe purcell lorenzo menéndez

Simon R. thompson alejandro mena

brian beamish Jorge betzhold

mike John Gordon James edward beams

miguel angel Durán eduardo muñoz



• We support free enterprise as the system best able to contribute to the economic welfare of society as well as to promote individual liberty. Without profits and a strong financial foundation, it would not be possible to fulfil our responsibilities to shareholders, employees, society and to those with whom we do business. However, our investment criteria are not solely economic. they also take into account social, environmental and political considerations.

• We will comply with all laws and regulations applicable to our businesses and to our relationships with our stakeholders.

• We are implacably opposed to corruption. We will not offer, pay or accept bribes or condone anti-competitive practices in our dealings in the marketplace and will not tolerate any such activity by our employees.

• We prohibit employees from trading securities illegally when in possession of unpublished price-sensitive information.

• We require our employees to perform their duties conscientiously, honestly and with due regard for the avoidance of conflicts between any personal, financial or commercial interests and their responsibilities to their employer.

• We will maintain high standards of planning and control to: identify and monitor material risks; safeguard our assets; and to detect and prevent fraud.

• We will promote the application of our principles by those with whom we do business. their willingness to accept these principles will be an important factor in our decisions to enter into, and remain in, such relationships.

• We will encourage employees to take personal responsibility for ensuring that our conduct complies with our principles. no one will suffer for raising with management, violations of this policy or any legal or ethical concern.

Good Corporate Citizenship: Business Ethics and Integrity



MantosBlancosDivisionGeneral

ManagerAlvaro Aliaga

ElSoldadoDivisionGeneral

ManagerGiancarlo Bruno

MantoverdeDivisionGeneral

ManagerCarlos Flores

ChagresSmelterDivisionGeneral

ManagerMarcelo Glavic

LosBroncesDivisionGeneral

ManagerMarcelo Cohen

OrganisationalStructureAngloAmericanChile’sorganisationalstructureisfocusedonstrivingforandachievingefficiencybymeansofteamworkbetweenthecorporatestaffunitsandtheoperatingdivisions.ThismodelhasbeenappliedsinceMarch2005.

PresidenteEjecutivo

Pieter Louw

Fromlefttoright:JorgeBetzhold,FelipePurcell,LorenzoMenéndez,JohnDyer,MiguelAngelDurán,PieterLouwandAlejandroMena.

SeniorVPProjects&

TechnicalServicesJorge Betzhold

VPFinance&

AdministrationJohn Dyer

SeniorVP

OperationsMiguel Angel Durán

VPHuman

ResourcesAlejandro Mena

SeniorSafetyandSustainable

DevelopmentManager

Lorenzo Menéndez

VPMarketing&External

AffairsFelipe Purcell



ManagementSystemsToguaranteethesustainabilityofthebusiness,AngloAmericanChilebearsinmindstrategicvariableslikethereductioninoperatingcosts,thestrengtheningoftiesoftrustwiththecommunitiesandtheauthority,theboostingoftheorganisationalculture,andtheimplementationofinitiativestolowerandcontrolenvironmentalimpacts.Allthisistomeetitsvisionof“buildingoneofthemostvaluedandrespectedcopperbusinessesintheworld.”

Upto2005,theAngloAmericangroupusedtheTurnbullGuidesasamanagementtooltoassessthesevariables.Asof2006,aframeworkforintegratedriskmanagement(IRM)startedtobeimplemented,whoseobjectiveistoincorporatethisconceptinalltheprocessesofthedivisionsofAngloBaseMetalsandembeditinaculturebasedoncontinuity,proactivity,management,andsystematicevaluations.Thisschemeformalisesroles,thoseaccountable,metricsandperformanceindicatorsandconsiders17significantvariablesfortheprocesses,liketheforeignexchangerate,commodityprice,labourrelations,safety,occupationalhealth,environment,socialperformance,policies,regulations,reservesandresources,operatingperformance,capitalprojects,acquisitions,technologyandpossibleriskslikefire,explosionsandearthquakes,amongothers.

Furthermore,thereareothertoolstomanagethediversecompanyprocesses:

• Safetyandsustainabledevelopmentdatabase,whichcontainsinformationonalltheenvironmental,safetyandoccupationalhealthvariables.

• LetterofAssurance,whichisanannualreportthatissenttoAngloBaseMetalswithinformationoncompliance,applicationanddisseminationoftheprinciplesofGoodCorporateCitizenship,labourrelations,diversity,finesforbadpracticesandSEAT-relatedactions(seepage81),amongothers.

• Communityengagementplans,whichconsiderinformationextractedfromtheSEATprocess,thecommunityrequirements,andtheactivitiescarriedoutbythecompanyinitsinfluenceareas.

• BubbleChart,whichisatooltodefinethecompany’sstrategicsuppliesandtomanagethem.

• EnterpriseResourcePlanning(ERP),whichisamanagementsystemofallAngloAmericanChile’sprocesses.

The company’s vision is to build one of the most valued and respected copper businesses in the world.



Certification AllthedivisionshavecertificationpursuanttotheISO1�001andOHSAS18001standards,andMantosBlancosandMantoverdealsohavecertificationpursuanttotheISO9001qualitystandard.Inadditiontoundertakingthemaintenanceauditofallthestandards,thecompanyupgradedtothe200�versionoftheenvironmentalcertificationin2006.

Thisprocesscommencedin1999withthecertificationofMantoverdeandMantosBlancoswiththeISO9001qualitystandard.BothdivisionswerealsothefirstminingoperationsinChiletoobtaintheOHSAS18001safetycertificationin200�.AllthedivisionsalsohaveanintegratedenvironmentalandsafetymanagementsystemsinceDecember2005.

The Mantos Blancos and Mantoverde divisions were the first mining operations in Chile to obtain certification pursuant to the

OHSAS 18001 standard in 2004.



Safety, Occupational Health, Environmentaland Quality Policy

anglo american Chile is a mining company that strives for excellence in the production of copper. it carries out its activities in a socially and environmentally responsible manner, is committed to the principles of sustainable development endorsed by its parent company anglo american plc, providing quality products that meet the requirements and expectations of its customers.

to achieve this objective, anglo american Chile undertakes continuous improvement management based on the following commitments, encouraging its collaborators to adopt them:

• allocate the human, material and financial resources needed to comply with this policy.

• identify and evaluate the risks associated with its activities and implement the necessary prevention and control measures to protect the health and physical integrity of employees and contractors that work at the divisions, and prevent or reduce adverse environmental impact and damage to property.

• Respond efficiently to emergencies, accidents or incidents arising from operations.

• Guarantee a healthy, competent, responsible and committed workforce by means of ongoing employee selection, education, training and evaluation.

• Comply with applicable laws and regulations and other commitments undertaken by the company adopting, whenever appropriate, the best international practices commensurate with other company policies. promote suitable regulations based on sound scientific knowledge and with due consideration of the risks, costs and benefits.

• promote the conservation of natural resources with the efficient use of power and water, among other measures, maintaining active follow-up of the effects of its activities on these resources and on the biodiversity.

• Set objectives, targets and performance indicators for all the operations and evaluate their progress against such objectives and targets, including the applicable legal requirements.

• Cooperate with and maintain open and constructive dialogue with employees, customers, suppliers, local communities, authorities and other interested parties, reporting on the progress towards the achievement of the aims set.

• all the members of the organisation will be informed of this policy so they can incorporate it to their daily activities. it will be available to other interested parties and will be reviewed regularly.



The SEAT can be fully or partially replicated by any company that so wishes.

StakeholdersThe principles of Good Corporate Citizenship set out the company-defined segmentation of stakeholders into: investors, employees, communities, customers, commercial partners, governmental organisations and non-governmental organisations.6

As commented on in a special chapter of the previous report, in 2004 Anglo American Chile applied a socio-economic assessment toolbox (SEAT) to the communities surrounding its operations. This enabled information to be collected about who the major stakeholders are for the divisions and their requirements and expectations from the company (see page 81).

Hence, each Division not only collected information to define the stakeholders in each one of its areas but also data about their expectations.7

6Seethecompanywebsitewww.anglochile.cl7AlltheexpectationsraisedbythecommunityintheSEATwerepresentedinthepreviousreport.Youcanaccessthereportonthecompanywebsiteorbyrequestinga2005report.

COMPANY PROFILE STAKEHOLDERS


Division Stakeholders

LosBronces •NeighboursofLoBarnechea(fromLasPuertastoPasoMarchant),CorralQuemadosector(16km fromthefacilities),Quilapilún,TilTil,Peldehue,SantaFilomenaEstateandfamilyvegetable gardens.

•Districtorganisations:ElArrayánNeighbours’Committee,MapochoRiverIrrigationCommittee, ColinaMunicipalCorporation,ColinaPrivateCorporationandGrandmothers’Club.

•BoroughCouncils:LoBarnecheaandColina. •Schools:ColinaandLoBarnecheatechnicalschools,SanJoséSchoolofLoBarnechea,borough

councilschools. •ChileanArmy(Peldehue),NationalForestryCorporation. •DrugsandAlcoholCommissionoftheLoBarnecheaBoroughCouncil. •Othercompanies:AguasAndinas(andotherwaterutilities.)

MantosBlancos • Neighbourswhowalkalongtheroadinfrontoftheminesite. • AstronomyCommunity,SecondRegion. • BoroughCouncilofBaquedano. • Educationalestablishments:privateandstateuniversities,industrialsecondaryschool,

DonBoscosecondaryschool,schools. •Baquedanopoliceandfirebrigade. •Healthcarecentres.

ElSoldado • NeighboursofLosCaleos,Collahue,Chamizal,Carretón,ElMelón,Nogales,LaCalera,andQuillota. • Districtorganisations:landownersatElLitre,NogalesandElMelónNeighbours’Committees. • LasRosasFoundationandtheNogalesOldPeople’sHome. • FifthRegionprovincialandregionalauthorities,NogalesBoroughCouncil. • Controllingauthorities:NationalEnvironmentalCommission,NationalGeologyandMiningSurvey,

NationalForestryCorporation,AgriculturalandLivestockBoard,GeneralWaterBoard,andtheFifth RegionHealthService.

• Firebrigade,policeandcrimeinvestigationdepartmentofNogalesandElMelón. • NativeForestAustralCentre. • Othercompanies:SopravalandCementoMelón.

Mantoverde • NeighboursofChañaral,DiegodeAlmagro,andElSalado. • Educationalestablishments:ChañaralandElSaladoindustrialsecondaryschools,universities,

Chañaralprofessionalinstitutes. • BoroughCouncilofChañaral. • ChañaralDevelopmentCorporation,CORPROA,ChañaralDevelopmentBoard. • FireBrigadeandUndergroundRescueSchool.

ChagresSmelter • NeighboursofSanJosé,SantaMargarita,ChagresandLoCampo. • Districtorganisations:IrrigationCommittee,Mothers’,OldAgeandHandicappedPeopleCentres,

sportsclubsanddistrictneighbourcommitteeassociations. • BoroughCouncilsofCatemu,Panquehue,andLlayLlay. • SanFelipeGovernor’sOffice. • Catemu,PanquehueandLlayLlaypoliceandfirebrigadeofthesamecommunitiesplus

Puchuncaví. • CatemuHealthcareCentre. • Controllingauthorities:AgriculturalandLivestockBoard,FifthRegionNationalEnvironmental

Commission,NationalGeologyandMiningSurvey,andAconcaguaHealthService.

STAKEHOLDERS COMPANY PROFILE

�0 anGlo ameRiCan CHile SuStainable Development RepoRt

International Agreements AngloAmericanChileabidesbyalltheparentcompanyagreementsongoodenvironmentalandsocialpracticesandbusinessethics.

Themostsignificantagreementssignedinclude:VoluntaryPrinciplesonSecurityandHumanRights,signedin2005,whosepurposeistoprovideaframeworkforextractivecompaniestoguaranteethesafetyoftheiremployeesandrespectthehumanrightsofpeoplelivingneartheirfacilities;TheExtractiveIndustriesTransparencyInitiative(EITI),whichpromotestransparencyinthegenerationofemploymentandresourcesincountrieswhereextractiveoperationsarecarriedoutbymeansofgoodpracticesandthecreationofopendebatesonhowtogenerateandinvestcorporateresources.

ThecompanybecameasignatorytotheGlobalCompact 8 inJune200�,whoseobjectiveistogetorganisationstoembraceits10principlesonhumanrights,labourstandards,theenvironmentandanti-corruptionasanintegralpartoftheirstrategies.

AngloAmericanplcisalsoanOrganisationalStakeholder(OS)oftheGlobalReportingInitiative(GRI)9andChairmanSirMarkMoody-StuartisadirectoroftheGRI.HeplayedakeyroleasapanelistduringthepresentationofthenewversionoftheG�guidelinesinAmsterdam,HollandinOctober2006.

AngloAmericanplcalsoparticipatesinotherinitiativestopromotesustainabledevelopmentpractices:

• InternacionalCouncilonMiningandMetals(ICMM).• WorldBusinessCouncilonSustainableDevelopment (WBCSD).• InternationalBusinessLeadersForum.• GlobalBusinessCouncilonHIVandAIDS.• GlobalCorporateCitizenshipInitiativeoftheWorld EconomicForum.

Human Rights

anglo american plc signed the voluntary principles on Security and Human

Rights in 2005, which are mainly aimed at extractive companies.

the company translated the principles that same year and included them in

the security contractor contract bases in 2006. they are also published in the

Welcome manual given to all new employees.

95 security guards of the two private security companies that provide

services to anglo american Chile were trained on the principles in may 2006.

8www.globalcompact.com9www.globalreporting.org

COMPANY PROFILE INTERNATIONAL AGREEMENTS

�1 SuStainable Development RepoRt anGlo ameRiCan CHile

Voluntary National Agreements Chilean Chapter of the WBCSDAsco-founderandmemberoftheChileanChapteroftheWorldBusinessCouncilforSustainableDevelopment(WBCSD),AngloAmericansponsoredthesneakpeakprocessoftheG�guidelinesoftheGlobalReportingInitiative(GRI),heldinMarch2006inChile.TheeventwasattendedbyGRICEOErnstR.Ligteringen.

Clean Production Framework AgreementTheCleanProductionFrameworkAgreementwassignedinNovember2000bytheMiningCouncilandpublicsectorbodieswithcompetenceinissuesrelatedtotheagreement.Theobjectiveisforbothsectorstoworktogethertoapplyapreventiveenvironmentalstrategyintheworkprocesses,products,servicesandorganisationtoraiseefficiencyandcompetitiveness,topreventthegenerationofwastesatorigin,andreducehazardstopeopleandtheenvironment.

VOLUNTARY NATIONAL AGREEMENT COMPANY PROFILE


Atacama Mining Cluster

TheAtacamaminingclusterprojectcommencedinAugust200�,withthesponsorshipof11miningcompaniesintheregion,articulatedbytheAtacamaRegionDevelopmentCorporation(CORPROA).10VariousactivitieshavebeencarriedoutsincethentoconsolidateadevelopmentstrategyinAtacamathattranscendsthelifeofminingdeposits.MantoverdeisAngloAmericanChile’sDivisionthatparticipatesinthislocaldevelopmentactivity.

TheMiningCompanyCollaborationCommittee(CCME)wasestablishedin2006,whichisanewformofrelationshipforregionaldevelopment.ItincludesthoseaccountableintheprocurementandcontractadministrationareasofminingcompaniesthatbelongtotheAtacamaCluster,whichhasprioritisedthehomologationofrequirementsandthedesignofasuppliercertificationsystem.

Membership Membershipisrelatedtoindustry,safetyandsustainabledevelopmentorganisations.

IndustrialSector Safety SustainableDevelopment Others

NationalMining NationalSafety CorporateSocialResponsibility LibertadyDesarrollo

Board Council (CSR)Action

MiningCouncil RegionalMining InstitutoLibertad

Commitee

(CORESEMIN)

InstitutodeIngenierosde NationalMountain ICARE

ChileA.G. SafetyCommitee

Chilean-NorthAmericanChamber CentrodeEstudios

ofCommerce(AMCHAM) NuevaMinería

Chilean-SouthAfrican CentrodeEstudios

ChamberofCommerce Públicos-CEP

Chilean-BritishChamber

ofCommerce

NationalChamberofCommerce

RegionIIProductive

DevelopmentCorporation

AntofagastaIndustrial

Association

10www.corproa.cl

COMPANY PROFILE MEMBERSHIP

EnergyEfficiency Programme

“Clear targets that can be measured and monitored, like those applied by Anglo American, help to promote and work on this issue within the company, and they are also transparent commitments to the community and public sector. This is what we need to be aware, so we can learn from each other and make comparisons to detect possible improvements in operations”.

Nicola Borregaard

CEO

CountryEnergyEfficiencyProgramme

�� SuStainable Development RepoRt anGlo ameRiCan CHile

�� anGlo ameRiCan CHile SuStainable Development RepoRt

ENERGY EFFICIENCY PROGRAMME CLIMATE CHANGE

Climate Change“GlobalwarmingwillhittheGDPofworldeconomiesby5%to20%arisingfromnaturaldisastersandtheinfluxofhundredsofmillionsofrefugeesduetotheclimateanduprootedbytheincreaseinsealevels.Addressingtheproblemwouldonlycost1%oftheGDP,”11saysthereportdeliveredonMonday,October�0,2006,bySirNicholasStern,theformerChiefEconomistoftheWorldBank,totheBritishgovernmentaftermorethanayearofeconomicandscientificresearch.

QualifiedbySirDavidKing,thechiefscientificadvisoroftheBritishgovernment,as“themostdetailedeconomicanalysiseverymade,”theSternReportwarnsaboutthelikelyimpactofclimatechangeiftheworldcontinuesitstrendof“carryingonasalways,”althoughitalsostateswhatcanbedonetoreduceitsimpact.

Topreventglobalwarminganditseffects,scientistsarecurrentlyarguingthatitisnecessarytoreduceglobalgreenhousegas(GHG)emissionsby�0%by2050comparedwith1990.

Bearinginmindthissituation,countriesbelongingtotheUnitedNationsheldaconferenceinRíodeJaneiroin1992inwhatwasknownastheEarthSummit.TheUnitedNationsFrameworkConventiononClimateChange12.TheKyotoProtocol1�,signedin1997,notonlyrekindledtheagreementssignedintheEarthSummitbutalsohelpedtoestablishstrictercommitmentstoGHGemissionreductionsandlimitsfordevelopedcountries.

Stern Report on Climate Change

the Stern report, whose aim was to find out the financial implications of global warming, warns that

the current level of greenhouse gases in the atmosphere is equivalent to 430 parts per million (ppm) of

Co2, compared with the 280 ppm before the industrial Revolution. this concentration has caused global

warning of over 0.5ºC and will carry on causing a 0.5ºC increase in the next few decades due to inertia

inherent in the climate system. even if the annual emission rate remained at current levels, the GHG

levels would reach 550 ppm by 2050. as the annual emission rate accelerates according to fast-growing

economies investing in high carbon infrastructures and demand for energy and transport increases, this

level could be reached by 2035.

although it is not possible to predict exactly the effect of these changes on the global temperature,

the models indicate it is highly feasible it will increase by more than 2ºC. this would cause glaciers to

melt, raise the risk of flooding, reduce the supply of fresh water, a decline in harvests, heat waves, the

spreading of diseases like malaria and dengue fever, besides a 15% to 40% extinction of species.

11SternReport:http://www.ecosistemas.cl/1776/article-76�02.html12TheUnitedNationsFrameworkConventiononClimateChangehasbeenLawoftheRepublicsince1995.The1997KyotoProtocolemergedfromthisConventionduringthethirdconferenceofmembers.1�IntergovernmentalPanelonClimateChange(IPCC):www.ipcc.ch/languageportal/spanishportal.htm


A demanding goal: 15% energy savingAngloAmericanupholdstheconcernexpressedintheSternreportandassumesthecommitmentsundertakenbyEnglandandChileregardingtheKyotoProtocol.Forthisreason,asawayofstrengtheningitsglobalwarmingstandpoint,ithassetademandinggoalofachievinga15%globalenergyconsumptionsavingforthebusinessasusual1�inallitsoperationsworldwidefrom200�to201�.

Businessasusualimpliesanincreaseinspecificenergyintheminingindustryduetoloweroregrades,greatertransportdistances,deeperpits,amongotherfactors,inadditiontoproductionincreases.

Bearingthisobjectiveinmind,inOctober200�,theCEOofAngloAmericanChileinformedallitsemployeesofthelaunchofanEnergyEfficiencyProgramme.Thisinvolvedaplanningprocess,whichestablishedtargets,thoseaccountable,methodologiesandstepstomakeprogresswithachievingthetargetssetineachoneofthedivisions.

OneofthemilestoneswasthecreationoftheEnergyCommitteewithrepresentativesfromallthedivisionstodefinethe200�-201�generalconsumptionandemissiontable.“TheResponsibleUseofEnergy”campaignwaslaunchedinNovember2005asoneofthefirstmeasures,whoseobjectivewastoeducateallemployeesabouttherationalconsumptionofvarioustypesofenergyusedbythecompanyandindailylife.

Roles Responsibilities

ProjectLeader

DivisionLeaders

ProcessLeaders

Energy Efficiency Programme Roles & Responsibilities

1�Businessasusualmeanshowthebusinesswoulddevelopinthefutureifnoadditionalactivitieswereundertaken.

A DEMANDING GOAL ENERGY EFFICIENCY PROGRAMME

• Assureprogrammecompliance.• Leadtheworkteam,themeetingsoftheProjectCommitteeand guaranteeleadertraining.• Supportstudies,initiativesandexecutionofrelatedprojects.• Co-ordinatedisseminationoftheproject.• Periodicallyreportontheoverallprojectstatus.

• Assessenergyandemissionsavinginitiativestomeetthe division’stargets.• Accountableforissuingthemanagementreportsoftheirdivisions.• Accountableforthefollow-upofthetargetsset.• Attendprojectcommitteemeetingsandworksessions.

• Identifyenergyandemissionsavinginitiatives.• Executetheprojectscope,investigate,andcollectinformation,etc.• Drawupandissuedocumentsandreports.• Attendtrainingandworksessions.• CertifyreductionsofenergyandwaterconsumptionandofCO2emissions.


Programme ProgressInordertoachieveathoroughunderstandingabouttheconsumptionofthedifferenttypesofenergy,theCO2emissionsandthewaterconsumption,asurveyanddetailedbalanceweremadeineachdivision,separatedbyproductiveprocessesandtypesofenergyconsumed.Thisindicatedtheenergyconsumptionbreakdowntofocusinitialendeavoursonthemostsignificant.

Subsequently,amethodologywasproposedcomprisingspecificcontrolindicatorsintheprocessessoastohaveastandardisedmeasurementmethodandclarityregardingtheresultsobtainedinthedifferentinitiatives.Thesavingcalculationthereforeconsidersreductionsofenergyconsumption(GJ),reductionsof

The impact of a 15% reduction

in the energy consumption of Anglo American

plc by 2014 is equivalent to

taking 1,000,000 cars off the roads.

ENERGY EFFICIENCY PROGRAMME PROGRAMME PROGRESS

CO2(tonnesofCO2)emissions,andreductionsoffreshwaterconsumption(m�)asaresultofinitiativesbeyond“businessasusual”andbeingpermanentovertime.

Regardingthis,therearereductionsthatarecertified,potentialandtobediscovered.ThecertifiedreductionsareactionscarriedoutandcertifiedbytheDivisionalLeadersandtheProgrammeLeadertoprovidethetransparencyandreliabilityrequiredinthisprocess.Thepotentialreductionsarethoseidentifiedbutwhichhavenotbeenmaterialized,andthereductionstobediscoveredarethosethatareessentialtomeetthetargetbutwhichhavenotbeenidentifiedyet.


2003–2006ConsumptionandEmissionSummary

GJ CO2

200� 200� 2005 2006 200� 200� 2005 2006

LosBronces �,517,77� �,8��,870 �,099,82� �,281,765 211,107 228,0�2 2�6,080 258,�02

ElSoldado 1,�68,76� 1,��2,�00 1,�86,222 1,659,226 95,708 9�,�52 97,161 108,175

MantosBlancos 1,892,872 1,995,�78 1,751,789 1,769,257 2�6,700 271,�9� 2�2,�12 2��,�1�

Mantoverde 1,�08,6�1 1,�7�,7�0 1,��5,251 1,�9�,071 121,098 1�2,178 127,81� 1�0,890

Chagres 1,108,956 1,071,558 961,�09 1,075,�86 71,71� 62,�71 59,09� 6�,�79

Santiago 8,895 7,1�� 7,715 7,720 �76 �81 �12 �1�

Total 9,�05,892 9,725,070 9,652,110 10,186,�25 7�6,80� 788,907 762,971 805,67�

With thepotential reductionsdetected,which should consider specific actionin the next few years, the followingreductionscouldbeattained:

It was established that, with thereduction certificates issued, as ofDecember2006,theglobalreductionsregarding the base business (2006Plan)were:

TotalReductions

EnergyReduction

DirectEnergyConsumption

200� 200� 2005 2006

PetroleumNº6(tonnes) 11,295 �,�59 6,015 �,85�

OilUsed(m�) 17 27 0 0

Diesel(m�) 91,6�� 89,69� 92,519 102,�69

Petrol(litres) 2,�66,085 2,6�1,8�7 2,27�,260 1,586,7�6

Kerosene(litres) 0 0 �,9�� 0

NaturalGas(m�) 2,97�,00� 11,�97,700 6,51�,577 7,28�,161

Liquidgas(tonnes) 261 225 ��7 9�8

Electricity(KW/h) 1,�7�,9��,521 1,612,885,9�8 1,686,706,1�� 1,6�9,�05,75�

Energy(GJ) 2.�8% Energy(GJ) �.70% 6.2%

Emissions(tonnes of CO2) 1.87% Emissions(tons of CO2) 2.79% �.7%

Water (m3) 2.5�% Water (m3) 2.81% 5.�%

PROGRAMME PROGRESS ENERGY EFFICIENCY PROGRAMME


SharingExperiences InadditiontotheEnergyProgramme,AngloAmericanhasadoptedinitiativesliketheinteractionwithotherminingcompaniestolearnabouttheirenergyefficiencyexperiences,whichhasattractedtheinterestofgovernmentauthorities.Hence,NicolaBorregaard,theCEOoftheCountryEnergyEfficiencyProgramme,jointlywithAngloAmericanChileorganisedtheFirstMiningRoundtablewiththeparticipationofsixminingcompanies,ProCobre,andtheMiningMinistry.Thecompanyhascontinuedtopromotethisinitiativeandwasinchargeoforganisingthe�thversionofthisMiningRountable.

AngloAmericanalsosupportedtheproductionoftwoleafletsonenergyconsumption,publishedbyChileSustentableandtheCountryEnergyEfficiencyProgramme.Thecompanydistributed2,�00copiesofthefirstleafletinternallyand600forthecommunitiesaroundthefivedivisions.

TheCountryEnergyEfficiencyProgrammealsodesignedawebsitecalledParticipativeWorkArea(ETP)whereAngloAmericanandotherminingcompanieshavepublishedinformationonthedevelopmentandcharacteristicsoftheprogramme,measurementmethodsandconversionparameters.

2004September AngloBaseMetalsestablishestheprogramme objectives.October LaunchoftheEnergySavingProgrammewith aletterfromthecompanyCEO.

Energy Efficiency Award

the company won the 2006 energy

efficiency award in the mining category.

the ministry of economy, the Confederation

of production and Commerce (CpC) and

the Country energy efficiency programme

recognized anglo american Chile for its

energy efficiency programme.

ENERGY EFFICIENCY PROGRAMME SHARING EXPERIENCES


2006March Startofthemonthlyconsumptionandemission report by processes in all the divisions and reductioncertificatesstarttobeissued.June The reporting system is consolidated: list of certifiedreductions,monthlyreportbyprocess bydivisionandlong-termforecast.October Anglo American receives the Country Energy Efficiency Award in the mining category from the Ministry of Mining, the Confederation of Production and Commerce (CPC) and the CountryEnergyEfficiencyProgramme.November Anglo American Chile and Honda Motor sign an agreement to promote the use of hybrid cars.

2005February The200�consumptionandemissionbaseline isestablished.June AnEnergyManual isdesigned,containingthe basicdefinitionstocarryouttheprogramme.July The Energy Committee is created with representatives from the5divisionsand roles aredefined.August A general 200� – 201� consumption and emissiontableisestablished.September Themonthlyconsumptionandemissionreport startstobedisseminated.November Re-launchoftheEnergyandEmissionSavings Programme with a letter from the company CEO.November Launch of the programme dissemination campaign.

SHARING EXPERIENCES ENERGY EFFICIENCY PROGRAMME



CASESTUDY

Agreement

with Honda Motor

Around7billionstonnesofCO2arereleasedintotheatmosphereeachyear.Someexpertsestimatethatinthefuturetheincreaseinthesekindsofemissionswillbecausedbydevelopingcountries,mainlybythegreaternumberofvehicles.

Therearecurrently15carsperonethousandpeopleintheworld,andaccordingtoExxonMobilthisfigurewillincreaseto50carsperonethousandpeopleby2020.Hence,theforecastisanincreaseofaround�0%inthedemandforenergy,whiletheenergyefficiencywillonlyincreaseby1%ayear.

Inthelightofthis,AngloAmericanChilesignedanagreementwithHondaMotordeChiletoincorporateandencourageitsemployeestopurchasehybridcars,whichcontaminate80%lessthanconventionalcarsandprovidebetterperformancethanvehiclesthatareexclusivelypetrol-driven.

Theagreement,whichcomplementstheEnergyEfficiencyProgramme,involvesHondaofferingpreferentialcommercialconditionstocompanyemployeesandAngloAmericandevelopingaspecialprogrammetofacilitatethefinancingofcars.Thisinitiativeincludedthepurchaseoftwovehiclestousethemaspartoftheregularpoolofcompanycars.ThreecompanyemployeeshadalreadypurchasedhybridcarsfortheirpersonaluseasofDecember2006.

ENERGY EFFICIENCY PROGRAMME SHARING EXPERIENCES

Fromlefttoright:HitoshiAbe,presidentofHondaMotor;DaniloNúñez,TransportUndersecretary;PieterLouw,CEOAngloAmericanChile;NicolaBorregaard,CEOCountryEnergyEfficiencyProgramme,andFelipePurcell,VPMarketingandCorporateAffairsAngloAmericanChile.

People

“Adding value is about the attitude and will of each one of us. Good relations and communications among everyone at Anglo American Chile are essential in our company’s long-term strategic vision”.

Alejandro Mena

VPHumanResources

AngloAmericanChile



Organisational Development TheobjectiveofAngloAmericanChile’sorganisationaldevelopmentistogivethebusinessacompetitiveadvantagethroughitspeople.Ithasthereforefocusedon“aligningthehumancapitalmanagementprocessesatallorganisationallevelstoattract,developandretainexcellentperformingpeoplecapableofcreatingvalueforthecompany.”Thiswasthephilosophyofthefollowingactivitiescarriedoutin2006:

• ManagementDevelopmentProgramme(MDP)for supervisorsinChileforthesecondyearrunning.• Youngprofessionalshiringprogrammeandactivitiesto retaintalentedpeople.• Start-upoftheDevelopmentCentre.• Secondlabourclimatesurveywiththeparticipationofall thepersonnel.

PEOPLE ORGANISATIONAL DEVELOPMENT

• AdolfoIbáñezmanagementdiplomaforallunionleaders.• SupplierdevelopmentprogrammeattheChagresSmelter.• Internalauditofallcontractorcompaniestoassessthe HumanResourcesmanagement.

AngloAmericanChilehasaheadcountof5,62�people,ofwhich2,505areownheadcount,7�9areservicecontractors,1,518areoperationscontractorsand851areprojectcontractors.

Regardingtheemployeegenderdiversity,thefemaleheadcountremainedat�%,thesameasin2005.Inrelationtotheaverageageofemployees,thiscontinuedtobe��yearsold,withtheaveragecompanyservicetimedroppingfrom15yearsin2005to1�.5yearsin2006.

�� SuStainable Development RepoRt anGlo ameRiCan CHile

Employmentgenerated(asofDecember31,2006)Bydivision(includingthirdparties) 2006 2005 2004

LosBronces 1,�55 1,270 1,288MantosBlancos 997 977 1,0�1ElSoldado 1,05� 1,0�6 9�9Mantoverde 678 768 666ChagresSmelter �25 ��5 �62SantiagoOffices 26� 2�9 287ProjectContractors 851 1,008 76�TotalHeadcount 5,62� 5,75� 5,�56

Bydependence 2006 2005 2004

Ownemployees 2,505 2,�87 2,25�Servicecontractorpersonnel 7�9 707 760Operationscontractorpersonnel 1,518 1,651 1,680Projectcontractorpersonnel 851 1,008 76�Totalheadcount 5,62� 5,75� 5,�56

Ownemployeeeducationallevel 2006 2005 2004

BasicEducation 125 1�� 170Secondary 5�1 ��2 �62Technical 967 966 7�9University 872 855 872Totalownemployees 2,505 2,�87 2,25�

Breakdownofmanagementpositions 2006

Nºofvice-presidentsormaleseniormanagers �1Nºofvice-presidentsorfemaleseniormanagers 1Nºofvice-presidentsorseniormanagers �2Nºofmalemanagers 100Nºoffemalemanagers 1Nºofmanagers 101

Trainingarea 2006 2005 2004 Man Nºof Man Nºof Man Nºof Hours people Hours people Hours people

Safety,occupationalhealth, 21,01� 1,695 �6,109 1,79� 1�,755 1,780environmentandqualityManagement �5,607 1,�9� �9,879 2,8�5 19,07� 1,272Technical 82,�92 1,�02 50,7�0 1,02� 59,861 �,027Others 1�,�17 �57 1,207 78 80� 56

ORGANISATIONAL DEVELOPMENT PEOPLE

�� anGlo ameRiCan CHile SuStainable Development RepoRt

RecruitmentAngloAmericanisconstantlylookingforhigh-potentialyoungprofessionalsduetoitsinterestinhavingsuitablepeopletoparticipateinthesuccessionplans.Forthisreason,oneofthemainactivitiesin2006asintheprevioustwoyearswastheYoungProfessionalRecruitmentProgramme,inwhich1�newgraduatesparticipatedtoworkinthefirstlineoftheorganisation.

Moreover,theSeniorProfessionalHiringProgrammewasheldforthefirsttimetoboosttheorganisation’slineofsuccession.Aspecial2007scholarshipprogrammewasapproved,whichwillfundthecareersof2�studentsatimportantuniversitiesinthecountry.

Furthermore,aDevelopmentCentrewasstartedupin2006todesignindividualdevelopmentplansforpeoplewiththehelpofaspecialisedexternalcompany.

Supportcontinuedforoutstandingpupilsinthecommunitiessurroundingthecompany’soperationswiththefollowingprogrammes:

ProfessionalPracticeandThesisProgramme:thesearespecialplacesforworkers’childrenandstudentsofuniversitiesinthecitiesneartooperationstoundertaketheirprofessionalpracticeandtheses.

ApprenticeProgramme:thisinitiativestartedup12yearsagoatMantosBlancosandwasimplementedinallthedivisionsasof2005.Itentailsprovidingemploymentofatrainingnaturefora12-monthperiodforyoungstersof18to21yearsold,whohavecompletedtheirsecondaryeducationattechnicalschoolsinthecommunitiesnearthedivisions.Theobjectiveistosupportthemtodeveloplabourandpersonalskills.Itisestimatedthat�0%ofthoseschool-leaversfindajob(10%remaininAngloAmericanChileand�0%entercontractorcompanies).

the Direct line, created in 2004 for company employees, contractors, and suppliers, to reduce the

possibilities of practices infringing the Good Citizenship principles, continued to operate in 2006.

there was a decrease in the number of complaints due to the consolidation of the initiative.

Direct Line

PEOPLE RECRUITMENT


ThesisStudentProgramme 2006 2005 2004

Nºofmales 56 50 �0Nºoffemales 10 6 7Totalthesisstudents 66 56 �7Amountinvolved(US$) 161,��0 119,791 112,86�

ApprenticeProgramme 2006 2005 2004

Nºofmales 8� 115 60Nºoffemales 1� 7 19Totalapprentices 97 122 79Amountinvolved(US$) 27�,882 2�5,571 160,�8�

ProfessionalPracticeProgramme 2006 2005 2004

Nºofmales 109 88 91Nºoffemales � � �9Totalpractices 11� 91 1�0Amountinvolved(US$) 158,119 72,22� 101,��6

RECRUITMENT PEOPLE



CASE STUDY

thesource

Portal

In2006,AngloAmericanstartedaprocessofradicalchangeinthewayofunderstandingcommunications,knowledgemanagementandcollaboration.Theorganisationjoinedthegroup’sglobalinformationnetworkwiththeimplementationofthesourceportal,adding2,505usersthatareconnectedtoallthecompany’sinformationworldwide.

ThetrialrunstageendedinDecember2006andthesourcehasbeenoperatingnormallysinceJanuary2007.Theportaladdsnewapplicationsforcommunicationmanagement,information,andcollaborationamongemployeesbeyondgeographicalandculturalboundaries.Italsoprovidesaccesstodailynewsandincludesalltheapplicationsthatpreviouslyhadrestrictionslimitingtheirpotential.

PEOPLE RECRUITMENT


LabourRelationsForAngloAmericanChilelabourrelationsareakeyaspectinachievingitsvision.Thesearebasedoncollaborationandonrelationsoflong-termtrustwherethemanagementandemployeesworktogethertoachievecommonobjectivesofmutualbenefitwithincurrentregulations.

Thereare10unionswith��leaders.Unionisationreached99%in2006,eightpercenthigherthanthe91%in2005.ThiswasmainlyduetoanewunionbeingformedatMantoverdeduetotheinsourcingofloading,transportanddrillingoperationspersonnelcarriedoutin2005.

Asin2005,aworkshopwasheldtoinformtheunionleadersofthenatureofthecopperbusinessanditsimplicationsforthedomesticandinternationaleconomy.Thedevelopmentofunionleaderswasalsosupportedin2006bymeansofanAdolfoIbáñezUniversityUnionLeaderDiploma.Itsobjectivewastoprovideleaderswithmanagementtools.Theprogrammeentailedleadership,accounting,laborlegislationandteamworkcourses,amongothers.

Thecollectivebargainingagreementsarespecificforeachdivisionandtheysetforththebenefits,theworkingsystem,theunionfund,coachingandtraining,amongotherissues.Thereisafinancialincentiveforcomplyingwiththesafetystandardsatindividualandoperationlevel.

Life at OperationsOnlyLosBroncesandMantoverdeofAngloAmericanChile’sfiveoperationshavelodgingfacilities,duetotheirgeographicallocationandshiftsystem.

Evenconsideringtheexistenceofashiftsystem,theaverageworkingdayoftheorganisationis��hoursaweekandthenationalaverageis�5hours.Furthermore,alltheemployeesinthedivisionshaveabalanceddietinkeepingwiththeworkrequirements.Thecompanyalsohasemployeerecreationandentertainmentfacilities,anditco-ordinatesactivitiesthroughthesportsclubs.

LABOR RELATIONS PEOPLE


Principles of Good Corporate Citizenship: Employment and Labour Rights

• We are committed to the adoption of fair labour practices at our workplaces and our conditions of service will comply with applicable laws and industry standards.

• We will promote workplace equality and will seek to eliminate all forms of unfair discrimination.

• We will not tolerate inhumane treatment of employees including any form of forced labour, physical punishment, or other abuse.

• We prohibit the use of child labour.

• We recognise the right of our employees to freedom of association.

• We will operate fair and appropriate means for the determination of terms and conditions of employment. We will provide appropriate procedures for the protection of workplace rights and our employees’ interests.

• We will provide employees with opportunities to enhance their skills and capabilities, enabling them to develop fulfilling careers and to maximise their contribution to our business.

PEOPLE LABOR RELATIONS


Work Climate Management AngloBaseMetalscarriedoutthesecondorganisationalworkclimatesurveyinJune2006withtheparticipationofalltheemployeesatthedivisionsandinSantiagoand92%oftheAngloBaseMetalsoperations.

Thelocalresultsweredeemedsatisfactorycomparedwiththosein200�,whenthissurveywasundertakenforthefirsttime.Theaveragelevelofsatisfactionremainedat85%.

Thesurveyexamined10areasbymeansof61questions,i.e.,efficientleadership,clarity,standards,commitment,accountability,communication,teamcommitment,flexibility,diversityandreward.

Asin200�,focusgroupsweredevelopedforabettercomprehensionoftheresults.Theobjectivewastostart2007withthedesignandimplementationofactionplanstostrengthenthoseareasthatneedimprovement.

to implement an action plan to reduce the work climate survey gaps.

C o m m i t m e n t

WORK CLIMATE MANAGEMENT PEOPLE


Relationship with ContractorsThecompany’sphilosophyofworkingwithcontractorsisthatofmaintainingalong-termrelationshipbasedonprofessional,ethicalandfairpractices.Alltheorganisation’sactivitiesfocusedonthemaredevelopedinkeepingwiththis.

Tosucheffect,theChagresSmelterDivisionstartedtoimplementaSupplierDevelopmentProgrammewiththesupportofthePromotionBoard(CORFO)aimedatprovidingthemwithmanagementtools(seepage91).Theprogrammelasts�yearsanditsobjectiveistosupportthemtobecomecompaniesofexcellenceandtoprovideabetterservice,culminatingwithcertificationpursuanttotheNCh2909standard.Thisprogrammewillbeextendedtotheotherdivisionsinthenextfewyears.

IRConsultingcarriedoutanexternalauditin2006onallcontractorsandfocusedoncompliancewithlabourlegislation,theirhumanresourcemanagement,andtheirsafetyandinfrastructureconditions.Basedontheresultsofthisaudit,thosewithweaknessesandnon-conformitieswereinformedandundertookthecommitmenttoimprove.Thecomplianceprocesswillbemonitoredbythecompanyinasubsequentphase.

Anotherinitiativearisingfromtheresultsoftheauditwasthetrainingofthewholeorganisation’scontractadministratorstostandardisecriteriaandtoolswithcontractorinteraction.ThistrainingwascarriedoutbytheCatholicUniversityofChile.

Anend-of-yearcelebrationforcontractorsandtheirfamilieswasheldforthefirsttimeinallthedivisionsin2006,withsimilarstandardsthanthoseinplaceforemployeesofAngloAmericanChile.

GoodCorporateCitizenshipstressesthat“allemployeesandcontractorsshallperformtheirdutiesaccordingtothehigheststandardsofethicsandintegrity.”

PEOPLE RELATIONSHIP WITH CONTRACTORS

Safety and Occupational Health

“All accidents and occupational illnesses are preventable. All necessary steps must be taken to learn from incidents in order to prevent any recurrence, and common, simple, non-negotiable standards must be consistently applied.” These are the three principles of the Anglo Safety Way management system".



Asafetysystemaudit(SafetyPeerReview)wascarriedoutinJuly2006toassesstowhatextentChileanoperationsarecomplyingwiththestandards.AteamwasformedmadeupofeightpeoplefromthefivedivisionsandledbyaspecialistofAngloAmericanplc,whichundertookanauditandissuedareport.Asthisisoneofthefirstexperiencesworldwide,theresultswerequalitative.Thisauditdetectedtheneedofstrengtheningleadershipandtheworkercommitmentandboostingthemonitoringandcheckingstandard.EachDivisionreceivedasetofphotographsandreportswiththefindingstohelpthemdrawupthecorrespondingactionplans.

Moreover,AngloBaseMetalslaunchedastandardformatin2006toshareinformationaboutaccidentsandtheircausescalledtheSafetyIncidentFlashReport,whichbenchmarksandextractspreventiveconclusionsfromtheoperationsoftheentireGroup.Italsohelpstostandardisethewayofreportingwhenalost-timeaccidentoroneofhighpotential(inwhichnopersonnelareinjuredbuttherecouldbeaseriousorfatalinjury)occurs.Furthermore,accidentlogsaremaintainedinallthedivisions,whichincludeinformationabouttheaccident,itsdescription,causes,lessonslearned,andadiagram.ThisispostedontheIntranetandexperiencesareshared.AnaccidentstatisticalreportisalsosubmittedtotheNationalGeologyandMiningSurvey(SERNAGEOMIN),pursuanttonationallegislation.

SAFETY AND OCCUPATIONAL HEALTH SAFETY

AngloAmerican’sSafety

Principles

LEARNINGCULTURE STANDARDS

PreventRepeats

Allunsafepracticesandincidentswillbeinvestigatedtoidentifythecauses.

Wewilltakeallthenecessaryactiontopreventrepeats.

ZeroTarget

Allaccidentsandoccupationalillnessesarepreventable.

Weareallresponsibleforpreventingandcorrectingunsafebehaviourandworkconditions.

Simpleandnon-negotiablestandardsandrules

Wewilladoptasetofsimpleandnon-negotiablestandardsandrules.

Line-managementisaccountableforimplementingandmeetingthestandardsandrules.

SafetyDeterminedtomeetthedemandinggoalof“ZeroHarm”atitsoperations,AngloAmericanplcarticulatedanewsafetyandoccupationalhealthstrategythatisbeingappliedinallitsoperationsworldwideasofearly2006.Itisbasedonthreeprinciples:

1) Allaccidentsandoccupationalillnessesarepreventable.2) Allnecessarystepsmustbetakentolearnfromincidents inordertopreventanyrecurrence.�) Common,simple,non-negotiablestandardsmustbe consistentlyapplied.

AsafetymanagementsystemcalledtheAngloSafetyWayarosefromthisdecision,whichisdevelopedbymeansofaconsultationprocessthatestablishestwelvestandardsbasedonthePlan-Do-Check-Actmethodologyand1�2requirementsthatarereviewedineachstipulatedaudit(seediagramonpage5�).Thesestandards,whichweredrawnupfromexistingprocedures,thebestpracticesintheindustry,andrenownedinternationalstandardslikeOHSAS18001arethebasisforthedevelopment,enhancementandapplicationofextensiveandintegratedsafetymanagementsystems.

TheAngloSafetyWaywassupportedwithaglobaldisseminationcampaigncalled“OneInjuryisOneTooMany.”Posters,leaflets,banners,T-shirtsandinternally-usedarticleswereusedtocommunicatethiscommitment.


Anglo Safety Way Standards

1. Policy,LeadershipandCommitment

2. RiskandChangeManagement�. Legalrequirementsandothers�. Objectives,Targets&PerformanceManagement

5. Awareness,TrainingandQualification6. Communication,Consultation&Participation7. Data&DocumentControl8. OperatingControl9. EmergencyPreparationandResponse10. Contractor&CollaboratorManagement

11. AccidentInvestigation&Reporting

12. Monitoring,Audits&Reviews

Policy

Planning

Implementation&Execution

Checking&CorrectiveMeasures

ManagementReview

ContinuousImprovement

When the next safety peer review is undertaken in 2007, all the divisions must fully comply with the 12 anglo Safety Way standards.

C o m m i t m e n t

SAFETY SAFETY AND OCCUPATIONAL HEALTH

Thecompanyhasalsoestablishedadecentralisedorganisationchart,whichgivesindependencetothoseinchargeofsafetyandoccupationalhealth.IthasimplementedindicatorsfortheVisibleLeadershipprogrammelaunchedin200�andbenchmarkedallthedivisionsinChileonthemainsafetyprocesses,visibleleadership,behaviouralobservations,investigationofincidentsandnear-missreports.Thisistoestablishthequalityandeffectivenesswithwhichtheyareimplemented.Asaresult,anindividualreportwasmadeforeachDivisionwiththeareasforimprovementandthecompany’soutstandingpractices.Thedivisionsdrewupactionplansbasedonthisreporttoaddressitsfindings.

Managementandsupervisionmade18,8��contactsduringtheirsitevisitsin2006(�5%morethanin2005)toobservethesafetybehaviourandmotivatepersonneltoprotectthemselvesandtakecareofthecompany’sresources,accordingtotheVisibleLeadershipProgramme.


PerformanceAngloAmericanChilereduceditsaccidentratefrom0.�0in2005to0.��in2006.Thisindicatorincludestheownemployeeandcontractorrates.Theaverageaccidentrateofalltheoperationswas0.27foremployeesand0.�8forcontractors.Althoughthecontractorrateisstillhigherthantheinternalrate,itimprovedsignificantly,consideringthathistoricallythisusedtobethreetimeshigherthantheinternalrate.

ThefigurespositionthecompanyasoneoftheminingcompanieswiththelowestaccidentratesinChile,withtheannualaverageincidentrateoftheindustryaround2,000,whichisequivalenttothreeincidentsaday.EvidenceofthisisthatinDecemberAngloAmericanChilecompleted28monthswithoutanyfatalities.Moreover,theworkabsenteeismratewas2.87%in2006comparedwiththe2.20%in2005.Morethan70%ofthelost-timeaccidentsarerelatedtothe“lineoffire”(injuriesfromobjects)conceptandthesesituationsmostlyaffectthehands.

Furthermore,theincidentswiththegreatestpotentialofharmwererelatedtoheavy-dutyequipment.Oneoftheinnovationsthecompanywillintroduceinthisareain2007istheincorporationofinformationsystemsinminingtruckssodriverscandetectandbewarnedaboutthepresenceofsmallvehiclesaroundthem.Trainingwasalsodonetoreviewtheheavy-dutyequipmentandenergyoperationguidelines,assetforthintheGoldenRulesonsafety.

The drive to get Anglo American’s safety standards across to its contractors has reduced the accident rate in just two years from 0.85 in 2004 to 0.38 en 2006.



2005 LTIFR* LTISR**

Own Contractors Total Own Contractors Total Employees Employees

LosBronces 0.09 0.56 0.�5 �5 �2� 19�MantosBlancos 0.8� 0.26 0.�8 ��7 215 261ElSoldado 0.16 0.88 0.58 516 158 �06Mantoverde 0.�0 0.�� 0.�5 67 1�2 11�Chagres 0.52 0.26 0.�5 281 57 1�2Services&Projects 0.00 0.00 0.00 0 0 0ConsolidatedIndex 0.29 0.�8 0.�0 21� 195 202

*Lost-TimeInjuryFrequencyRate(LTIFR):Numberoflost-timeaccidentsper200,000man-hoursworked.**Lost-TimeInjurySeverityRate(LTISR):Numberofworkinghourslostper200,000man-hoursworked.

Accolades

• the las tórtolas concentrator of the los bronces Division received the Gold award and the Crystal Floating trophy for the best safety performance in 2005 of anglo american’s subsidiaries worldwide in the category of small operations (less than 300 people).

• los bronces won the national Safety Council award for its safety performance in 2005 in the mining and quarry category.

• mantoverde received an award from the mutual de Seguridad for attaining one million man-hours without any lost-time accidents.

• mantoverde received an award from the Regional mining Safety Committee for the best safety indexes in the atacama Region.

• the Chagres Smelter received a special mention in the John t. Ryan mining safety award.

Absenteeismrate(%)

2006 2.872005 2.202004 2.2�

200� LTIFR* LTISR**


LosBronces 0.�7 0.66 0.56 115 �1� 202MantosBlancos 0 0.90 0.60 0 �89 ��ElSoldado 0.6� 2.05 1.�7 108 5�8 ��6Mantoverde 0 0.�� 0.�5 0 1�6 1�0Chagres 0.56 0.6� 0.59 �05 17� 252Services&Projects 0 0.60 0.52 0 225 19�ConsolidatedIndex 0.�� 0.85 0.65 100 �� 2��

Ownemployeeandcontractoraccidentandseverityrates

2006 LTIFR* LTISR**


LosBronces 0.2� 0.2� 0.2� 202 181 191MantosBlancos 0.�� 0.22 0.29 �7� �5 15�ElSoldado 0.00 0.68 0.�1 0.00 �� 26�Mantoverde 0.00 0.�8 0.28 1� 1�9 9�Chagres 1.19 0.�7 0.79 �08 �6� �8�Services&Projects 1.19 0.�7 0 �08 �6� 0ConsolidatedIndex 0.27 0.�8 0.�� 170 221 199



Parity CommitteesEachdivisionhasaHousekeeping,Hygiene,andSafetyParityCommittee,pursuanttolawNº16.7��,andthereisalsooneattheSantiagooffices.Theseorganisationshadakeyrolein2006duetotheroll-outoftheContractorPlan.

Thisinitiativeaimstostandardisetherelationshipwiththirdpartiesatalltheoperationsandimprovetheirsafetyindicatorsandworkconditions.ThePlanenvisages�0variablesorrequirements:generalsafetyandproductivitystandards;regulatoryaspects;andalong-termdevelopmentplan.

In2006,theparitycommitteesworkedtoestablishtheminimumcontractorstandardsandrequirementsforoperationsandcarriedoutinitiativestomeetsuchrequirements.Theaimwastomakeaninitialdiagnosistoidentifythegapandgenerateactionplanstoresolvethis.TherequirementsandinitiativessetforthintheContractorPlanwillstarttobeappliedasof2007.Thelong-terminitiativescarriedoutwithcontractorswillbeavailableinthenextreport.

2007 Programme

the 2007 safety programme is focused on near-misses, hazardous behaviour, and learning from

other accidents with a proactive attitude. the following are some of the activities of this plan:

1) implement the anglo Safety Way system, with an emphasis on the standards for which gaps

were found in the analysis.

2) Consolidate basic safety processes. emphasise quality and effectiveness in applying safety

tools according to the minimum corporate standards.

3) Follow up and analyse preventive management by means of leadership indicators.

4) all the operations must fully meet the equipment and heavy-duty machinery guidelines in

2007, along with the power lockout practices and procedure.

5) enhance the audit process, using anglo american’s standard reporting protocol and findings

format.

6) undertake a new work climate survey, according to the Du pont scheme, to assess progress

from the previous one.

7) Carry out the outstanding activities of the Contractor plan, according to the minimum

standards and criteria.

8) maintain the iSo and oHSaS certification.




CASESTUDY

Emergency

Situations:

Crisis Management Plan

TheCorporateEmergencyResponsePlanwasapprovedanddisseminatedinAugust2006,andthisprovidesguidelinesonformingandactivatingtheEmergencyResponseCommittee(ERC)anddefinestherolesandresponsibilitiesofeachoneofitsmembers.

ThiscommitteeischairedbythecompanyCEOandismadeupofallthemembersoftheExecutiveCommitteeplustheExternalAffairsManager.Itevaluatestheinformationavailableanddetermineswhatemergencystagethesituationisin.Theobjectiveisatalltimestoprotecttheintegrityofemployeesandthecommunityandsafeguardtheenvironmentandthecompany’sinterests.

TheCorporateEmergencyResponsePlanincludestheresponsibilitiesofeachERCmemberandthealternatesofeachoneoftheroles.Italsosetsoutthewayofinitiallyrecordingemergenciesandofinformingthisinternallyaccordingtothedegreeofemergency.Inadditiontothisplan,aCrisisCommunicationPlanwasdeveloped,whichmustbeusedasanappendixtothisdocument.



Occupational HealthBasedontheSafety,OccupationalHealthandEnvironmentalpolicy(seepage27),thecompanyshall“identifyandevaluatetherisksassociatedwithitsactivitiesandimplementthenecessarypreventionandcontrolmeasurestoprotectthehealthandphysicalintegrityofemployeesandcontractorsthatworkinitsdivisions.”

Thespecificgoalforoccupationalhealthistopreventorminimisework-relatedinjuriesorillnessesofemployeesandcontractors.AllthedivisionshavetheOHSAS18001certificationasof2005,whichisaninternationalstandarddevelopedtoassessthesafetyandoccupationalhealthmanagementsystems.Moreover,alltheoperationsandcontractorshaveguidelinesongoodpracticesissuedbyAngloAmericanplc,whichrecommendminimalstandardsandthatinsomecountriesexceedthestandardsoflocallegislation.

Thisareaismanagedbyanintegratedsafetyandenvironmentalsystem,andtheSafetyandSustainableDevelopmentmanagementisinchargeofthemanagement,andthebusinessunitsparticipatedirectlyintheexecutionoftheprogrammes,designatingsupervisorsorriskpreventionpersonnel.EachoperationalsohasIndustrialHygieneandOccupationalHealth(IHOH)teamsmadeupofexecutives,advisors,andunionleaders,whomakeamonthlyreviewoftheprogrammesandcasesrecorded.Eachdivisionissuesaquarterlyreportonthisissue,whichisconsolidatedatAngloBaseMetalsandfinallyAngloAmericanplclevels.

ThecompanyalsoundertakesexternalauditswiththeMutualdeSeguridadwhichreviewaspectsrangingfromtheriskpolicytotheriskmitigationmeasures.

Risk ManagementThecompanyhasestablishedthatthemajorhealthriskfactorsinminingoperationsarenoise,vibrations,heavymetalemissions,combustiongases,heat,andworkataltitudeorindemandingergonomicsconditions.Thesearerelatedtothemostfrequentillnessesintheindustry,likehearingloss,pneumoconiosis,silicosisanddermatitis.

Thezerotolerancepolicyonrisksandoccupationalillnessesisexecutedbymeansofaspecificannualprogrammeforeachdivision.Thisstartswithpre-occupationalmedicalexaminationsandperiodicaloccupationalexaminations,anditisthenstructuredbasedontheanalysesofthepotentialhazardsofoperationsandtheclassificationofpersonnelaccordingtotheirexposureleveltothem.Basedontheriskintensity,theperiodicityofthemedicalcheck-upsisdetermined,whichcanrangefrommonthlytotwiceayearandarecarriedoutinternallyoratthefacilitiesoftheMutualdeSeguridad,accordingtotheircomplexity.

During2006theonlycaseofanoccupationalillnessinthecompanyoccurredinOctober.AnoperatoratMantoverdewasdisabledfor7daysbecauseoftendonitisofhisupperextremitiesduetotherepetitivemovementsoftheremotecontroloperationofanoverheadbridgecrane.

Thepurposeoftheseprogrammesistoreduceexposuretoalevelatwhichthehealthriskisminimal.Insomecases,thismeansactingonthesource.MantosBlancos,forexample,hasintroducedenhancementstotheelectro-winningplant,whichhasenabledittoreducetheconcentrationofacidmistby80%andtherebysignificantlylowerthelikelihoodofgeneratingrespiratoryillnesses.

Theoccupationalhealthprogrammealsoincludesaphysicalfitnesscheck-upaspartofthePhysicalWorkFitnessProgramme,whichisespeciallydesignedforthosepeoplewhoaresubjecttoconsiderablephysicaleffort,.

SAFETY AND OCCUPATIONAL HEALTH OCCUPATIONAL HEALTH


Duetothegreaterriskofexposuretoultravioletradiationfromthesun,thecompanyhasstartedbasicmeasurementstotakethenecessaryactiontopreventrelatedillnesses.TheMantosBlancosDivisioncarriedoutastudyin2006,whichquantifiedthestrengthoftheUVradiationtowhichsomeoperatorsdoingoutdoorworkareexposedtoestablishtheirdegreeofexposurebasedonwhatislaiddowninSupremeDecreeNº59�/01(“RegulationonBasicSanitaryandEnvironmentalConditionsinWorkplaces”oftheMinistryofHealth).

Themeasurementwasmadefrom12:12hoursto1�:15hoursonacleardayusingaradiometer.Theconclusionwasthatthemaximumexposuretimeperdayfortheunprotectedskinandeyesofanormalpersonduringthepeakradiationtime(12:00hoursto1�:00hours)is8.�minutes.Anyexposuretimeoverthislimitshouldbewithsuitableprotection,i.e.,long-sleevedwhiteshirtwithcollar,hardhatwithavisor,andsuncreamwithaprotectionfactorofover�0.

Asaresult,theoperatorsatMantosBlancosandMantoverdehavesuitabledressandsunblock,andthereisaspecialoperatorrotationsystematoutdoorminesitessonooperatorisexposedtothesunfortoolongduringpeakhours.

CASESTUDYUltravioletRadiationMeasurement

OCCUPATIONAL HEALTH SAFETY AND OCCUPATIONAL HEALTH

Environmental Performance

“We are committed to the rational use of resources and to attaining significant control of the environmental impact our activities in order to achieve a sustainable operation”.

Lorenzo Menéndez

SeniorManagerSafety&SustainableDevelopment

AngloAmericanChile



Environmental ManagementTheprinciplesofGoodCorporateCitizenshipestablishthat“seniorexecutivesandoperationandproductionmanagersareresponsibleforthecompany’ssafetymanagementandenvironmentalperformanceandtheallocationofsuitablefinancialandhumanresources.”Tomeetthisresponsibility,thegeneralmanagersofeachdivisionhavethesupportofthesafetyandsustainabledevelopmentmanagers,whoareco-ordinatedatcorporatelevelthroughtheseniorareamanager.

Formanagementtobeefficient,alltheinformationonrawmaterials,water,energy,biodiversity,wastemanagement,andenvironmentalincidentsisenteredintoasafety,occupationalhealthandenvironmentaldatabasecalledtheSHEDatabase.Likewise,in2006US$�0.2millionwereallocatedtoprojectsandactivitiesfortheenvironmentalenhancementoftheprocessesandinitiativesconcerningtheprotectionofautochthonousfloraandfaunaintheareasofoperations.ThisinvestmentamountedtoUS$10.�millionin2005,inadditiontotheUS$20milliontoimprovetheenvironmentalperformanceoftheChagresSmelter.

Maintenancewasundertakenin2006fortheISO1�001andOHSAS18001certification,andatthesametimeanupgradewasmadetothe200�environmentalregulation.

KpmG Sustainability auditors reviewed the

los bronces Division database during an audit

this company makes to draw up the 2006

Sustainable Development Report of anglo

american plc.

Raw MaterialsThesulphideandoxideoreminedisthemainrawmaterialforAngloAmerican’sprocesses.Consumptionin2006was192milliontonnes,�.8%morethanthe185milliontonnesin2005.Thefinecopperproductionincreasedby0.7%andtherawmaterialconsumptionratepertonneofproductrose�%comparedwith2005.

ThemainrawmaterialfortheChagresSmelteriscopperconcentrate,whichisusedtoproducemetalliccopperintheformofanodesandsulphuricacidasaby-product.Basedonthisscheme,thecompanydoesnotusewastefromexternalsourcesasrawmaterials,althoughsomesuppliesareproducedasaresultoftherecyclingprocesslikeleadanodesandtyresforminingequipment(seepage70).

Thecompanyclassifiessomeofitssuppliesasstrategic,accordingtothedefinitionmadefromanimpactversusriskanalysisfortheproductiveprocess.TheannualspendoneachstrategicsupplyisshownonagraphknownasaBubbleChartandsuppliesareprioritisedaccordingtothevariablesindicated.Thosementionedinthisreportarehighimpactandhighrisksupplies.

Consumptionoforemined(inmillionsoftonnes)

2006 2005 2004

192 185 17�

ENVIRONMENTAL PERFORMANCE ENVIRONMENTAL MANAGEMENT / RAW MATERIALS


StrategicSupplyItem 2006Consumption MeasurementUnit Use/Application

MineOperationsDieseloil 75,500 m� Fuelmainlyusedinhaulagetrucksandmining equipment.Explosives Ammoniumnitrate: 2�,000 tonnes EmulsionDye:20,000 tonnes Electronicdetonators:�2,000 units BlastingtoextractoreTyres 92� units �5”rimtyresandgreaterusedinloading, transportandsupportmineequipment.

ConcentratorPlantsGrindingballs 21,000 tonnes Steelballsofdifferentdiametresusedfor grindinginSAGandballmills.MIBC 792,81� kg Frothingagent:linesminuteairbubblesto helpthecopperparticlesimpregnatedin xanthateadheretothem.Xanthate 210,500 kg Reagentusedinthecopperfloatationprocess. Itactsasacollectorliningtheparticlesof coppercontainedinthesulphideore,making themimpermeable,whichcausesthemtorise tothesurface.Abrasionsteel �,5�5,�55 kg Steelthatlinespartsinconstantfrictionwith othermedia.Itprolongsthelifeofmachinery.SodiumSulfhydrate 2,269,�97 kg Reagentusedinselectivefloatation.It facilitatesthemolybdenumfloatation.Lime �1,58�,826 kg Floatationandwatertreatment.

SmelterDieseloil 6,�00 m� Fuelusedinthesmeltingprocesses.

HydrometallurgicalPlantsSulphuricAcid 610,000 MT Itisusedinthecopperleachingprocessto dissolvethecoppercontainedintheoxideores.Thinners 2,8�8 m� Theythintheextractantpreservingand enhancingitsproperties.Extractants ��,950 kg Selectivereagentthatseparatesthecopper dissolvedintheaqueoussolution.

RAW MATERIALS ENVIRONMENTAL PERFORMANCE

6�


Water ManagementAngloAmericanuseswater,mainlyintheoreslurrypipelinetransportprocess,leaching,flotationandrefrigeration,withtheLosBroncesDivisionneedingthemostwater.Thetotalfreshwaterconsumptioninthedivisionsamountedto��millionm�in2006,2.96%morethantheover��millionm�in2005.Althoughconsumptionincreasedduetotheneedsofoperations,efficiencyroseby�.09%.6�%ofthewaterusedwasre-circulatedin2006,1%lessthanin2005.

WaterConsumption(m3)

Divisions 2006 2005 2004 2003LosBronces 22,6�9,077 22,�98,192 21,95�,000 21,727,565ElSoldado �,185,921 �,�62,959 �,575,811 �,��,�80MantosBlancos �,766,770 �,56�,�96 �,97�,576 �,712,900Mantoverde 2,87�,116 2,610,897 2,802,��6 2,656,02�Chagres 1,50�,657 1,125,5�0 1,�7�,8�� 1,288,600Santiago 8,810 8,�12 7,259 12,15�Total ��,988,�51 ��,170,296 ��,788,915 �2,7�1,721

the national mining board (Sonami) and

the mining Council organised the “mining

and Water Resources” seminar in october

2006. this allowed for standardisation of

the criteria and visions of the different

stakeholders interested in domestic water

consumption. moreover, the Sonami

pledged to disseminate the conclusions of

this seminar regionally as of January 2007

through regional forums.

ENVIRONMENTAL PERFORMANCE WATER MANAGEMENT


DischargesSupremeDecreeNº90(DS90/00)onsurfacewaterdischarges,qualifiedasanindustrialliquidwasteemissionsource,cameintoforcein2000.Pursuanttothis,AngloAmericaninformedtheSuperintendencyofSanitaryServices(SISS)of9discharges,ofwhichtwohavebeeneliminatedandtwoarere-circulatedbackintotheprocess.

In2005,80%ofthetotaldischargescamefromthepurgeoftherefrigerationwaterattheChagresSmelterwithoutneedinganypriortreatment.In2006,thesmelter’sdischargesincreasedby�6%comparedwiththepreviousyear,andthisdifferencecanbeexplainedbythe�8-daysmeltershutdownin2005.

WaterDischarges(millionsofm3)

2006 2005 2004Totalwaterdischarged(millionsofm3) 1.5 1.1 1.5Varianceonpreviousyear(%) +�6 -26 -�0

CASE STUDY

Diagnosis

of the

Copiapó riverbed

water resources

1�0.�millionm�ofwellwateriswithdrawnfromtheCopiapóriverbedayear.75%ofthisisusedforirrigation(106millionm�ayear),1�%formining(17.7millionm�ayear)-Mantoverdeuses2.�millionm�ayear-and10%isusedbywaterutilitiesforhumanconsumption(1�.6millionm�ayear).

Thisisoneofthemostsignificantfindingsofthe“DiagnosisoftheCopiapóriverbedwaterresources”studythatwascommissionedtotheconsultantGolderAssociatesS.A.bytheAssociationofAgriculturalProducersandExportersoftheCopiapóvalley,Mantoverde,MineraCandelaria,theVigilanceCommitteeoftheriverCopiapóanditsaffluents,andSociedadPuntadelCobreS.A.(Pucobre)withtheco-ordinationoftheAtacamaRegionDevelopmentCorporation(CORPROA).

Althoughthisstudyisjustafirststep,AngloAmericandeemsitisprogresswithaddressingthewaterresourceissueraisedbyalltheriverbedusers.

WATER MANAGEMENT ENVIRONMENTAL PERFORMANCE

65


mantoverde provided financial support in 2006 for the construction

of facilities to start operating the mist trap system in the Falda verde

sector of Chañaral, whose objective is to irrigate vegetables and

harvest purified water for human consumption. the project has led to

ecological research of pupils from schools in the area and to theses of

university students from different parts of the country. national and

foreign researchers (German, Japanese, Spanish, north american,

among others) have visited the project to learn about the water

harvesting technique and the sustainable use of natural resources.

Mist Traps at Chañaral

SeepageSeepageintogroundwaterandspillsintosurfacewatercouldarisefromthetailingsdamsofLosBronces(includingthePérezCaldera1and2mountaindamsandtheLasTórtolasdam),MantosBlancosandElSoldado.Theycouldoccurfromburstwater,oreslurry,ortailingsslurrypipelines,andseepagesfromemergencyponds.Forthisreason,AngloAmericanhasimplementedconcretemeasurestocontrolandpreventthisfromoccurring.

AnincreaseinseepagefromforestirrigationwasdetectedlastyearattheLasTórtolastailingsdamofLosBronces,andthishadtobeanalyzedintheareasinvolvedalongwiththeimplementationofotheractioncurrentlyunderstudytounderstandtheproblembetterandassessthepotentialsolutions.Themostsignificantstudiesare:hydrogeologicalmodelsofthebasin;andstudyoftheevapotranspirationcapacityoftheforest.Thespecificactiontakentodateis:constructionofapilotseepageditch;detailedirrigation

programmebysectorsaccordingtotheevapotranspirationcapacityoftheforest,andinstallationofflowmetersateachoftheirrigationareas.

TheElSoldadoDivisionisupdatingandmakingquantitativeimprovementsoftheinformationandqualityoftheestimatedhydrogeologicalstudysubmittedwiththeexpansionoftheToritodamto181milliontonnesin200�.

Oneoftheresultsobtainedisthattheimpactofthedamonthegroundwaterremainswithinthemarginsconsidered.However,toassurethatthetrendinfutureyearsmaintainsitslevelofimpactthisnewstudymodelstheeffectivenessofadditionalmeasurestocontrolseepagefromthedam.Oneofthemeasurescarriedoutwastosealtheponddepositingslimeontheperimeterofthedampondthusleveragingitsimpermeabilitytoreducetheseepageofwaterindirectcontactwiththenaturalland.


ENVIRONMENTAL PERFORMANCE WATER MANAGEMENT


Significant EmissionsBothextractiveoperationsandsmeltingattheChagresSmeltergenerateemissions.Althoughthelimitslaiddownincurrentlegislationaremet,AngloAmericanstrivestopermanentlyreducetheseemissionsovertimebymeansofspecificinitiativesandsystematicmonitoring.

Extractive OperationsThedivisionsgeneratetwotypesofsignificantemissions:CO2asaresultoftheuseoffuelsinthedivisionsandtheconsumptionofelectricpower(seepage��);andparticulatematerial(PM10)fromblasting,rockmovementinquarriesandthepermanenttrafficofhaulagetrucksandothervehiclesonunpavedroads.ThePM10emissionsarecontrolledbymonitoringstationssetupinareasindicatedbytheauthority,whichmeasuretheconcentrationaccordingtosystematicmonitoringprogrammes.

SIGNIFICANT EMISSIONS ENVIRONMENTAL PERFORMANCE

67


Chagres SmelterTheChagresSmelterisoneofthemostmodernsmeltersinChile.Asinformedinthe2005SustainableDevelopmentReport,itsoptimisationprojectentailedaninvestmentofUS$60million,ofwhichenvironmentalenhancementsaloneaccountedforUS$20million.Thisincreasedthesulphurandparticulatematerialcaptureduetotheimprovementsofthegashandlingsystem.

ThemainemissionoftheSmelterissulphurdioxide(SO2).Thelegalprovisionsregulatingtheconcentrationsintheenvironmentaretheprimaryqualitystandard(DS11�/02)andsecondaryqualitystandard(DS185/92)thatmainlydependonthelevelofSO2emission.Tomonitorcompliance,AngloAmericanhasinstalledanetworkwithfourofficialstationsaroundtheSmelterwheretheenvironmentalconcentrationofSO2isrecordedandwhoseresultsarereportedeachmonth.ThecompanyhasnotexceedtheregulationonSO2emissionsinthelastthreeyears.

StudiesmadeindicatethattheparticulatematerialinChagresislowerandthedivisionthereforehastwomonitoringstationslocatedinthetownsofCatemuandLoCampo.ThegraphsbelowshowtheSO2performanceforthestationswiththehighestdetectionandtheannualregulation(threeyearsrollingaverage)ofthePM10stations.

ArsenicisanothersignificantemissionoftheSmelter,whichisregulatedbySupremeDecree165(DS165/98)withalimitof95tonnesperyear.Chagreshademissionsof8�.�tonnesin2006,equivalentto88%oftheregulatedvalue.

AnnualEnvironmentalConcentrationofSO2(ug/m3N)

StandardLimit 2006 2005 200� Primary SecondaryAnnualSO2 58 66.0 66.7 80 80

ENVIRONMENTAL PERFORMANCE SIGNIFICANT EMISSIONS

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

REGULATION LIMIT CATEMU LO CAMPO

PM

10

[µ

g /

m3N

]

20

40

60

80

100

3-YEAR PM10 CONCENTRATION

SUBESTACIÓN MARGARITA STANDARD

SO2 AT MARGARITA SUB-STATION

Co

nc

en

tra

tio

n (

ug

/m3)

Years2002 2003 2004 2005 2006

90

80

70

60

50

40

30

20

10

0


Waste Management AngloAmericanhasawastemanagementplanforitsthreeoperativetailingsdams(LosBronces,MantosBlancosandElSoldado)thatcomplieswithSupremeDecreeNº86(DS86/70)andthatwasupdatedin2006.ThisDecreeregulatesthedesignandsafeoperationoftailingsdamsandwastedumps.Furthermore,theNationalGeologyandMiningSurvey(SERNAGEOMIN)monitorscompliancewiththisregulation.

Thewastemanagementplanforthedamsincludescontinuousseepagemonitoringsystemstosamplethegroundwaterqualityintheirrespectivebasins.

Regardingotherwaste,SupremeDecreeNº1�8startedtobeappliedin2005,whichsetsforththesanitaryandminimalsafetyconditionsforthegeneration,possession,storage,transport,treatment,re-use,recycling,finaldisposalandothermeansofdisposingofhazardouswaste.Thecompanydevelopedamanagementsystemforthis.

Quantityofhazardoussubstancesidentified

Divisions QuantityidentifiedMantosBlancos 18�LosBronces 210Mantoverde 189ElSoldado 268ChagresSmelter 25�

(Notallthesubstancesaremanagedwithwarehousestock,someareonlypurchasedwhentheyneedtobeused)

WASTE MANAGEMENT ENVIRONMENTAL PERFORMANCE

69


Integrated Management System of Hazardous SubstancesAlltheinformationabouthazardoussubstancesandwasteusedorthatcouldpossiblybeusedbyownemployeesorcontractorswasupdatedandconsolidatedintoanewsoftwarein2006.ThissystemimprovesaccesstotheinformationontheMaterialSafetyDataSheets,offeringthoroughdataonproductsforallthosepeoplehavingaccesstoacomputerconnectedtotheAngloAmericannetwork.

1,10�hazardoussubstanceswereclassified.696oftheseareusedatcorporatelevelandeachoneisrelatedtoaSafetyDataSheetthathasinformationontheproductandsupplier,thehazardsandprecautions,thelegalregistry,physicalandchemicalproperties,firstaid,handlingandstoragemeasures,technicalrecommendations,theirstability,toxicologicalandecologicalinformationconcerningthedegradationandbioaccumulationofthesubstance,finaldisposalandinformationontransport,amongothervariables.

Moreover,eachhazardoussubstancehasacodetoidentifyitinthematerialadministrationERPsystemtodeterminethequantitythereisanditslocationinthecompany.ThisinformationisavailableontheIntranet,inthefivedivisionalwarehousesandeachpersonwhoisgoingtohandleahazardoussubstancealsoreceivesaSafetyDataSheet.ThereisalsoaSummarySheetwithbriefinformation,whichcouldfacilitatetimelyactioninemergencies.

Thesoftwarealsoprovidesinformationabouttheexistinglegalregulation,includingLaw19.�00onGeneralEnvironmentalBases,thespecificprocedures,scope,definitions,theprocedureforenteringanewsubstanceandtherelationshipwiththesustainabledevelopmentsystem.

16SafetySheetsonhazardouswastewerealsoadded,whicharebasicallyusedoilsandlubricants.Thesematerialsarestoredseparatelyanddispatchedforfinaldisposalbyanauthorisedhazardouswastedisposalcompany.Atruckcomestothedivisionsperiodicallytoremoveandtransferwasteanddisposeofitaccordingtothelegalpermitsandrequirements.

MantosBlancosundertakestwointerestingrecyclinginitiatives:thefirstisasystemtore-usetheleadwastegeneratedbythedissolutionoftheanodesusedinthisprocess.Asof200�,solidleadwaste(remainsofanodesequivalentto�0,000kgayear)aredeliveredtothecompanyInppamet,andasofJanuary2006anodeslime(whichaccountsfor25,000kgayear)istransportedbythecompanyRecicladoraAmbientalLtda.

Inthecaseofsolidlead,whenMantosBlancosbuyesnewanodesitreceivesarebatefromtheproducerInppamet.

CASE STUDYRecycling at Mantos Blancos

Regardingleadslime,RecicladoraAmbientalLtdaispaidtoremovethisandthepricedependsontheconcentrationofleadintheslime.ThisrecyclingcompanyisanaffiliateofInppamet,whichusestheremainsofanodesforfreshproduction.Theunitcostofanodesisexpectedtodropby20%asaresultofthewasterecoveredfromtheelectro-winningprocessbeingdeliveredtothesameleadsupplier.

Thesecondinitiativeaimstoresolvetheproblemofscrappedminehaulagetrucktyres,whichareanenvironmentalliability.AnagreementwasreachedtosellthescrappedgianttyrestothecompanyRAESandSantaMartaLtda.,whicharecurrentlyonspeciallyimplementedyards.Itwasalsoagreedtoremovescrappedtyresdirectlyfromtheminemaintenanceareaworkshopsastheyarescrapped.

TheoutcomeofthisisasalesrevenueofCh$70,000foreachgianttyreandCh$�5,000formid-sizedtyres,andthespacefreedupfromthetyrescanbeusedasadump.Thisalsoeliminatesthecostoftransportingandhandlingtyres,whichisequivalenttoanenergysavingandareductioninCO2emissionscommensuratewiththeEnergyEfficiencyProgramme.

ENVIRONMENTAL PERFORMANCE WASTE MANAGEMENT


Waste Management (tonnes)2006 HazardousWaste Non-hazardousWaste external internal externalDivision Recycling Final Recycling Final disposal disposalLosBronces 1,129 2�0 0 1,819 1,811MantosBlancos 197 �1 0 1�8 28ElSoldado 119 1�5 0 1,��1 �8�Mantoverde 220 195 0 �� 80ChagresSmelter 29,0�� 0 0 2,105 1�1AngloAmericanChile �0,709 601 0 5,�27 2,8��

2005 HazardousWaste Non-hazardousWaste external internal externalDivision Recycling Final Recycling Final disposal disposalLosBronces ��7 18 0 1,508 1,��6MantosBlancos 278 89 55 855 62ElSoldado 117 �11 28 258 5�1Mantoverde 2�5 186 16 105 �06Chagres 0 0 0 �91 208AngloAmericanChile 1,076 60� 99 �,217 2,�5�

2004 HazardousWaste Non-hazardousWaste external internal externalDivision Recycling Final Recycling Final disposal disposalLosBronces �96 0 0 1,520 ��8MantosBlancos �82 267 92 6�� 19ElSoldado 229 0 18 2,109 710Mantoverde �12 166 12 �5 27�Chagres 0 0 0 1,�00 0AngloAmericanChile 1,�19 �� 122 5,608 1,751

WASTE MANAGEMENT ENVIRONMENTAL PERFORMANCE

71


BiodiversityAngloAmericaniscommittedtotheefficientuseofitsnaturalresourcesandtoprotectingandrehabilitatingthoseecosystemsaffectedbyitsdisturbance,andtodrawingupbiodiversityactionplans.Thisledittoestablishingthequantityoflandsoccupiedandtocarryingoutastudyin200�ontheimplementationofprojectsconcerningprotectionofthebiodiversityinitsdivisions.AccordingtotheSafety,OccupationalHealthandEnvironmentaldatabase,AngloAmericanoccupiesatotalof8�,797hectares,andoperationsaccountfordisturbanceof9,1�0hectaresofthetotal.

ElSoldadoistheonlyoperationthathasrehabilitatedpartofitsland,specificallybecausesomeofitsdumpsareintheclosurestage.Theotherdivisionshavenotconsideredlandrehabilitationyet,asallthedumpsarecurrentlybeingused.Therehabilitationplansarealsoenvisagedintheclosureplans.

Division Totalland Landdisturbed Rehabilitatedland (hectares) (hectares) (hectares)LosBronces �5,�07 �,710 -MantosBlancos 6,800 1,888 -ElSoldado 8,155 9�5 7Mantoverde ��,�95 1,557 -FundiciónChagres �0 �0 N/ATotal 8�,797 9,1�0 7

ENVIRONMENTAL PERFORMANCE BIODIVERSITY


Management of BiodiversityAstudywasmadein200�toimplementprojectstoprotectthebiodiversityinallthedivisions.LosBroncesandElSoldadoaretheoperationswiththegreatestrisk,astheyarelocatedinareasdeemedbytheauthoritiestobeprioritysitesforbiodiversityconservation.

BiodiversityStrategyPrinciples

• Allocateresourcesandresponsibilitiesforthemanagementofbiodiversity.• Incorporatebiodiversityelementstothebusinessplanning.• Implementawareness,educationalandtrainingprogrammesonthisissue.• Drawupactionplansthatincludeinventoriesofbiodiversity,resourcesandsystems,

riskassessment,andtheimpactofbiodiversityactivities,monitoringprogrammesandcorrectiveaction.

• Incorporatebiodiversitycriteriarelatedtoclosure,abandonmentandrehabilitation.

Los BroncesTheLosBroncesdivisionhasdevelopedtheYerbaLocaNatureSanctuaryConservationprojectandVillaPaulinawiththeBoroughCouncilofLoBarnecheaandtheNationalForestryCorporation(CONAF).Theaimistoraiseknowledgeofthesectorandsupportthebiodiversityconservationofbothsanctuaries.

Tosucheffect,itdrewupaBiodiversityManagementPlanforVillaPaulina.In2006,itcarriedoutsatellitefollow-upofthreeAndeancondorsbornincaptivityandreleasedin2005.ItcreatedaCleanEcologyGuidesTrainingProgrammewiththeBoroughCouncilofLoBarnechea,whichwillbeimplementedasof2007.Theobjectiveistotrainmonitorsthatcanshowthebenefitsoftheseareasandteachvisitorstoprotectandlookaftertheenvironment.60guidesweretrained,whoreceivedaninternationally-validcertificate.

BIODIVERSITY ENVIRONMENTAL PERFORMANCE

the los bronces Division, the borough Council of lo barnechea and Corporación la montaña signed two agreements: the first one binds them to develop a waste disposal programme for the next ski season, and the second one to schedule an outing for 600 pupils in eighth grade of basic educational schools in the district to clean up the mountain.

C o m m i t m e n t

7�


El Soldado DivisionNativeforestaccountsfor�50hectaresofthe8,155hectaresownedbyElSoldado,andminingactivitiesaccountfor9�5hectares.ThemineisinaMediterraneanecosystemthatisonlypresentinfiveplacesintheworld.Asurveywascarriedoutin200�,andtheoutcomewasthatthisareapossessesoneofthehighestconcentrationsofthefollowingspecies:BellotodelNorte(Beilschmiediamiersii)(naturalmonument);Naranjillo(rare)(Citronellamucronata);Guayacán(Porlieriachilensis)(vulnerable);andPuyaberteroniana(vulnerable).TherearealsoLinguedelNorte(Persealingue),Temo(Blepharocalyxcruckshanksii)andPuyachilensis(allvulnerable).Regardingthefauna,therearespeciesintheconservationcategoryliketheCulpeo,ChillaandCururofoxes,theLemniscatalizard,thecondorandtheringdove.

ElSoldadohasanactionplanforthemanagementofbiodiversityandpermanentlysupportsvariousresearchandstudiesonprotectingthefloraandfaunaofthelandarounditsfacilities:• PropagationprojectforspeciesthataredifficulttoreproduceliketheNaranjilloand

GuayacánwiththeChristaMockagriculturalhighschoolofNogales(seepage75).

• AgreementwiththeFoundationfortheRecoveryandPromotionoftheChileanPalmTreeforthe“BellotodelNorteforFutureGenerations”project,whichconsistsoftheresearch,conservation,protectionandpromotionoftheenvironmentalheritageoftheBellotodelNorteandwhichhaspropagatedmorethan50,000newplants.

• PromotionofthesustainableuseplanfortheElSoldadoterritorywiththeNaturalResourcesStudiesCentreofUniversidadMayor(OTERRA),whoseaimistoacknowledgetheenvironmentalattributestomakethemcompatiblewiththepresenceofalargeproductiveactivity.TheobjectiveistodefineactiontoarticulatethespecificprogrammesandtheincorporationofsustainabilitycriteriatotheElSoldadominingoperations.Theprocesswillendin2007withthedevelopmentoflandmanagementprogrammesthatwillbesteadilyimplemented.

• VegetativereproductionresearchontheBellotodelNortewiththePlayaAnchaUniversity.

• ScientificresearchontheBellotowiththeCatholicUniversity,whichentailsdesigningatransferprotocol,vegetativepropagationandmicro-propagationwithgeneticmaterialofthetransplantedspeciesandtheresearchintotheself-ecologyofthespecies.

ENVIRONMENTAL PERFORMANCE BIODIVERSITY


SCHEDULEDCLOSUREYEARBYDIVISION

Division Lastyear ofoperationMantosBlancos 2012LosBronces 20�1ElSoldado 202�Mantoverde 201�

CASE STUDY

Biodiversity

at El Soldado

TheElSoldadolandislocatedinthemountainrangecalledthe“ElMelónCordillera,”classifiedbytheNationalEnvironmentalCommission(CONAMA)aspriority1fortheconservationofthebiodiversityofthelandecosystemsoftheFifthRegion.Itsimportancewasrevealedduetothepresenceoflargequantities

Closure Plans Basedonthehalf-yearlyplanning,itwasnecessarytoupdatetheclosureplansofallthedivisionsin2006,sinceoperationsareflexibleandtheirresourcesthereforechangeovertime.

TheclosureplansconsiderthevariablesproposedbytheauthorityinDS1�2/0�andalsoincludeAngloAmerican’scorporaterequirements,whichaimtoguaranteethatwhatisleftafterclosuredoesnotinvolveanyenvironmentalorsocialharmwhatsoever.Thepossibleimpactsoftheoperationarealsoidentified,solutionsaredefinedandtheirvalueisquantifiedtomakeafinancialprovisionfortheclosurecost.TheprovisionscurrentlyexistingfortheclosureofAngloAmericanChile’sminesitesamounttoUS$1�5.5million.

ofMediterraneannativeforestwithahighdiversityandendemicityoffloraandfaunaspecies.

AngloAmericanhasmaintainedaco-operationagreementsince2002withtheChristaMockagriculturalhighschoolofNogalestoinvestigatemethodsofpropagatingnativeforestspecies,especiallythosethatarethreatenedorarevulnerabletoextinction.Todate,thisschoolhaspropagatedmorethan20,000nativeplantsanditisexpectedtoproduce60,000moreinthenextthreeyears.AlltheseplantshavebeenaddedtothereforestationandforestryenhancementprogrammesonandoffthelandownedbyAngloAmericaninthearea.

Furthermore,acommunityplantpropagationprogrammewasstartedduetotheknowledgegained.AgreementsweresignedwithsmalllandownersinthecommunitiesaroundElSoldado,withthefirstgoalbeingthepropagationof20,000plantsby2007.Allthesewillbepurchasedbythedivisiontousetheminitsreforestationprogramme..

CLOUSURE PLANS ENVIRONMENTAL PERFORMANCE

75


Land ManagementToidentifythosehavingrightsonaparticularlandholding,especiallysurfacelandowners,thepublicregistriesoftherespectiverealestate,mine,easementandlienregistrarsareused,amongothers.Sitevisitsarealsomadetoidentifyoccupantshavinganyotherlandtitleorpossession.

Thecompanyconstitutessurfaceandminingownershipofthelandsitisinterestedinexploiting.Thesurfacepropertytitleisindefinite,providedthatitdoesnotdefaultonpaymentoftherespectivemininglicence.Italsoconstitutesmineeasementsonthird-partylandstoprovideaccesstominingoperationsbymeansofroads,toaqueducts,toelectricpowerlines,etc.

ENVIRONMENTAL PERFORMANCE LAND MANAGEMENT


NumberofEnvironmentalIncidents

LosBronces MantosBlancos ElSoldado Mantoverde Chagres Total2006 1 15 5 9 11 �12005 6 2 1� 16 9 �72004 6 10 6 5 1 28

Environmental Incidents Thecompanyclassifiesenvironmentalincidentsaccordingtotheirimpactandeffectontheenvironment,consideringthephysicalandbiologicalenvironment,protectedspecies,levelofcommunitydisturbance,third-partyhealthandproperty,culturalvaluesandcompliancewithregulations.

Incidentsareclassifiedintothefollowing�categoriesbasedonthesevariables:Level1:Minorimpact,short-termeffects.Level2:Moderateimpact,medium-termeffects.Level3:Majorimpact,long-termeffects.

AccordingtotheSafety,OccupationalHealthandEnvironmentaldatabase,therewere�1environmentalincidentsin2006comparedwith�7in2005.Mostofthesituationsinformedwerelevel1.

ENVIRONMENTAL INCIDENTS ENVIRONMENTAL PERFORMANCE

77


Therewerethreesituationsofspecialimportancein2006,moreduetotheirsocialimpactratherthanenvironmentalimplications.TwoofthemwererelatedtovehicleaccidentsonthepublicroadtoLosBronces.ThefirstoneoccurredinMarchandinvolvedafueltransporttruck,andthesecondonewasinAugustandinvolvedavehiclethatwastransportingammoniumnitrate.Inbothcases,asmallpercentageofthespillseepedintotheriverSanFranciscocompellingthedrinkingwaterplanttosuspendimpoundmentforafewhours.

Asaprecautionarymeasure,thesafetynormswerereviewedwithallthesuppliersandcontractorsandnewspeedcontrolsystemswereimplemented,includingthere-openingofacontrolpointatLasPuertas,whichwillcalculatethespeedoftrucksbetweenthispointandtheentrancetotheDivisionandoperations.

ThethirdincidenttookplaceinDecemberandentailedtheoreslurrypipelinefromLosBroncestoColinabursting,whichcausedthematerial(basicallygroundrock)toseepdownhill.TheemergencypondofthepipelinereceivedpartofthismaterialandtherestflowedintotheElDuraznocreekwhereitjoinstheriverColina,locateddownstreamofstationNº2.Thisledtotheriverturningaleadcolourduetotheeffectofthesandsinsuspension.

Theirrigationchannelgateswereclosedtimelytocontrolthesituation,dikeswerebuiltintheElDuraznocreektoseparate*solidsandstartaprocesstoclarifythewaterintheriverColina.Theirrigationassociationcommitteewascontactedtoassessthesituationinthenext12and2�hourstoallowittocontinueirrigation.Everythingdoneenabledtheflowtoreturntonormal2�hoursaftertheincident.Athoroughanddetailedclean-upoperationwascarriedoutintheentireareainthenextthreemonths.

Copper is a malleable and ductile

metallic element, a very good conductor

of electricity and heat, and it is very

resistant to atmospheric corrosion.

it is present in virtually everything

around us. it is a good electrical and

thermal conductor (60% of the global

production is focused on this function),

and also has various benefits for human

health, agriculture, communications and

medicine.

Furthermore, copper alone contributes to

conserving natural resources, minimising

waste and reducing the energy use. this is

because it is estimated that around 80%

of all the copper ever extracted is still in

use. moreover, up to 40% of the annual

global demand for copper comes from

recycling.

Spillsofsubstances(m3)2006 LosBronces MantosBlancos ElSoldado Mantoverde Nº Volume Nº Volume Nº Volume Nº Volume

Processwater - - 2 7 - - - -Acid/Solutions - - 2 5 1 �0 1 0.1Oil/Fuel - - - - - - - 0.1�Slurry/Tailings 1 - - - - - - -

2005 LosBronces MantosBlancos ElSoldado Mantoverde Nº Volume Nº Volume Nº Volume Nº Volume

Processwater 2 1,�61 - - 2 �,2�0 - -Acid/Solutions 1 50 � 6 - - 12 0.�6Oil/Fuel - - - - 7 0.5 � 0.1�Slurry/Tailings 1 16 - - - - - -

2004 LosBronces MantosBlancos ElSoldado Mantoverde Nº Volume Nº Volume Nº Volume Nº Volume

Processwater - - - - - - - -Acid/Solutions - - 9 �� 1 �.5 - -Oil/Fuel - - 1 0.08 1 0.� - -Slurry/Tailings - - - - 1 2 - -

ENVIRONMENTAL PERFORMANCE ENVIRONMENTAL INCIDENTS


Social Performance

“The application of the SEAT methodology in Anglo American Chile’s five productive divisions generated important information to improve the company’s social and environmental performance, to serve as a useful resource to draw up its engagement plans, and to adopt social intervention strategies with clear objectives involving the community”.

Ximena Abogabir,

Director

Casa de la Paz Foundation

79anGlo ameRiCan CHile SuStainable Development RepoRt


Thecompanyvisionassumesasanethicalobligationthatitsproductiveoperationsgeneratefruitsintermsofsocialreciprocity,whichmeansthateachoneofitsoperationsnotonlyprovidesreturnstothecompanybutalsobettereconomicandsocialconditionsfortheareawhereitislocated.Themainendeavoursarefocusedonmaximisingworkopportunitiesforthelocalworkforcewiththesupportofsuitabletrainingprogrammes,thepromotionoftrainingforitsemployees,thedevelopmentofongoingallianceswithvarioussignificantareasofthecommunity,andthefosteringofsmallandmid-sizedlocalbusinesses.

Tocarryoutthesecommitments,thegeneralmanagersofthedivisionshavethetechnicalandoperativesupportofthesafetyandsustainabledevelopmentmanagers,whoareorganisedcorporatelythroughtheseniorareamanager.Moreover,asof2006theco-ordinationofprojectsandsocialpoliciesissupportedbyamanagementspeciallyengagedintheseissuesandthatasof2007willalsoberesponsiblefortheAngloAmericanFoundation,whoselegalproceedingsarebeingprocessed.Itsmissionwillbetodevelopcorporateprogrammestosupportsmallandmid-sizedbusinesses(seepage86).

Complementingthisstructure,aSustainableDevelopmentCommitteehasbeenoperatingsince200�,headedbythecompanyCEOandmadeupofallthevice-presidents,andtheseniorsafetyandsustainabledevelopmentmanager.Itsobjectivesaretoembedthesocialresponsibilityconceptsinthecompany’sstrategicdefinitions,toidentifykeyaspectsandassessanddevelopastructurefortheintegrationofsocialvalueswithintheorganisation,andtoestablishconcretelongtermgoalsinthedifferentdevelopmentareas.

SOCIAL PERFORMANCE


SEATTheGoodCorporateCitizenshipdocumentsetsoutthatthecompanyshalltryandidentifythoseaspectsthatmightaffectcommunities.Theimplementationofthesocio-economicassessmenttoolbox(SEAT)ispartofthisstatement,whichwasappliedbyallthedivisionsinthecountryin200�.Thisnotonlyformalisedaseriesofprocessesandpracticesundertakenbythecompanytodatebutalsohelpedtohaveaplanningtooltomanagethesocial,environmentalandeconomicimpactsofoperations.Theprocess,supportedbytheCasadelaPazFoundation16,endedupwithareportforeachdivisionthatincludedthefollowing:

• Theprofileofmininganditsrelatedcommunities.• Theidentificationandassessmentofthesocio-economicimpactsofeachdivision.• Theeconomicandsocialimpactsraisedbythestakeholders.• Theassessmentofkeyissuesandtheirimpacts.• Generalmanagementmeasures.• Performanceindicators.• Theaddedvaluethateachdivisionprovidestoitscommunity.• Thequantityofmaterialgoodsandservicesacquiredlocally.• Thelocalcommunitypercentageoftheworkforce.• Theinvestmentinpublicinfrastructureandsocialcontributions.• Indemnityandtaxpayments.

TheapplicationoftheSEATalsoconsideredthedevelopmentofmanagementresponsestothekeyissuesraisedincommunityengagement,whichwereimplementedin2006andextendto2007.Socialperformanceindicatorsweredevelopedtofollowupontheseactivities.Itwasnecessarytohomogenisethemfortheirapplication,andtheywillthereforebeworkedonin2007.

16CasadelaPaz(www.casadelapaz.cl);aCivilSocietyOrganisation(NGO)engagedbymeansofsupportinitiativesinpromotingcitizenparticipation,environmentaleducationandrelationsbetweencompaniesandcommunities,amongothers.

to articulate management and standardisation policies for the social development indicators in 2007.

C o m m i t m e n t

SEAT SOCIAL PERFORMANCE

81


Moreover,in2006AngloAmericanplcsubmittedthesecondversionoftheSEATwithfournewtools,sincethepreviousprocesshelpedtoestablishcertainbasiccommunityneeds.Theseconcernsupportingthelocalpublichealthsystems,lookingforinitiativesprovidingsynergybetweenthecommunityandtheinvestmentsininfrastructuremadebythecompany,peoplerelocationplanningbyconsideringeconomic,environmentalandsocialvariablesfortheirtransfer,andthedevelopmentoflocalskillstoreinforcethem,makingthemmoreeffectiveandefficienttomeettheneedsoftheirowndistricts.

Inthelightofthis,eachdivisionhasabudgettoimplementtheactivitiescontainedintheCommunityEngagementPlans(CEP).Thetotalsocialdevelopmentbudgetpresented,whichamountedtoUS$1.2millionin2006,includespaymenttoassociations,donationsinmoney,supportofsocialinitiativesandtheapprentice,thesisandprofessionalpracticeprogrammes(seepage�5).Italsoconsiderstheworkshopspromotedbythecompany,tradecoursesandstudyscholarships.ThebudgetforcommunityactivitiesamountedtoaroundUS$1.�millionin2005,andUS$7��,000in200�.

Furthermore,US$�millionwereprovisionedin2005fortheoperationoftheAngloAmericanFoundation.US$500,000ofthiswasallocatedin2006asafirststagetotheEmergeProgrammeandtheagreementwithFondoEsperanza(seepage86),ofwhichUS$290,000wereactuallyinvested.

Los Bronces DivisionLosBronceshasthreetypesofinitiatives.ThoseforthedevelopmentofkidsandyoungstersliketheinaugurationofabuslibraryinColina,thecomputerequipmentoftheCorporaciónPrivadadeColina,thepurchaseofnewwindinstrumentsfortheYouthOrchestraofColina,thefinancialsupportoftheYouthOrchestraoftheLoBarnecheaCorporation,andtheexpansionofthereadingcentreofthesamedistrict.AswimmingpoolwasalsobuiltattheRigobertoFontthighschoolofColina,andanagreementwassignedwiththecompanySodexhoandtheMunicipalEducationalCorporationofColinatostartthespecialisedcateringcourseinthatsameschool.

Thesecondtypeofinitiativeisfocusedondrugandalcoholaddictionpreventionprogrammes.Sevenearlyprevention

projectswerefinancedinvariousneighbourscommitteesofLoBarnechea,itsupportedthe�rdDrugandAlcoholismPreventionFamilyWalk,andsupportedthe“SebayCabezadePelota”project,whoseaimistoeducatekidsinfirstandsecondgradeofbasiceducationonpreventionandawarenessofthedangersandconsequencesofaddictionbymeansofacademicmethodology.

Thedivisionalsosupportsinitiativesconcerningthedevelopmentofpublichealth.Tomeetthisobjective,itstartedtherefurbishmentofthecurrentemergencyhealthcareclinic(SAPU)inthedistrictinalliancewiththeBoroughCouncilofColinasoastoprovideaqualityemergencyservicetothepeople,andaseveryyearitprovidedcateringservicestotheChileanPoliceatthecompany’sfacilitiesintheLaErmitasector.

SOCIAL PERFORMANCE SEAT


VariousinitiativesarosefromtheapplicationoftheSEATtopartlyaddressthecommunityconcernsabouttheoperations.TheprojectsimplementedincludedtheGoatandBeekeepingAgriculturalFarm,whichreceivedtheGoodCorporateCitizenshipAwardfromtheChilean-NorthAmericanChamberofCommerce(AMCHAM),traininginagriculturaltradesattheChagreshighschoolandtheOpenDoorProgramme17.

However,theapplicationoftheseinitiativesallowedthecompanytorealisetheymustbecomplementedtoattaindeepertieswiththecommunity.Forthisreason,inlate2005andearly2006participativeworkwascarriedouttoidentifythoseinitiativesthatwereofinteresttothecommunitiessurroundingtheSmelter,whichwouldmakeacontributiontoimprovingthequalityoflifeofthepeoplewhilealignedwiththecorporatepolicies.

Astrategywasadoptedtodeveloplocalleadersbymeansofthejointdesignandmanagementoftheprojectsarisingfromtheseinitiativesandaspartofthe5-yearMasterCommunityEngagementPlan.Toapplythisstrategy,groupsofneighbourswerecreated,madeupoflocalorganisationleaderscalled“CommunityDevelopmentTeams.”

17Seethe2005SustainableDevelopmentReport.

TheCommunityDevelopmentTeamsofeachtownareinchargeofdesigningtheprojectsandmanagingtheirexecutionandassessment,alwayswiththesupportofAngloAmerican.Theprojectstobedevelopedmustmakeacontributiontothecommunityandincludecommunityparticipationthroughvoluntarywork,materialsorfinancialresources,withoutfosteringarelationshipofassistance.

Asaresultofthisapproach,therelationshipevolvedfromanindividualisticstancetooneofacommonvision,thecommunity’sknowledgeofAngloAmerican’scontributiontotheseinitiativesincreased,anditimprovedthewaythecommunitycanraiseitsconcernsaboutoperations.

Moreover,aMasterCommunityEngagementPlansymposiumwasheldinDecemberforallthemembersofthecommunitydevelopmentteams.Duringthatoccasion,eachteamsharedtheirprojectsmakingthisanexcellentknowledgesharingopportunity.

Chagres Smelter Division

FirstMeetingofCommunityDevelopmentTeamsattheChagresSmelter

SOCIAL PERFORMANCE


Mantos Blancos DivisionMantosBlancossignedanagreementwiththeNationalMiningBoard(ENAMI)in2006,inwhichthedivisionpledgedtoreceivetheproductionofsmall-sizedcopperproducerswhohadnoonetosellittoduetothelimitedquotasoftheoldprocessingfeesystem,accordingtothedataoftheMiningTradeAssociationofAntofagasta(AGREMA).

Furthermore,asinthelastthreeyears,themainfocuswasonthefinancingoftheDeLTA–UCNProgramme(developingandleadingacademictalent),whichisbeenimplementedjointlywiththeCatholicUniversityoftheNorth,theAndesFoundationandtheboroughcouncilsofAntofagastaandMejillones.

Thisisanextra-curricularacademicprogrammeforlowincomefamilies,thatisdevelopedasacomplementtoschooleducationaimedatpupilswithacademictalentfromthesixthgradeofbasiceducationtothelastyearofsecondaryeducation.Itaimstodevelopandempowertheirintellectualandsocio-affectiveskills,bycontributingtoeducatingcreativeandcriticalpeoplewhoarehighlymotivatedforknowledge,andinturnethicallyresponsible,sociallycommittedandaffectionatelyintegrated.

StudentsjoiningtheDeLTA-UCNProgrammeperyear

Year 6thGrade 7thGrade 8thGrade 1stGrade 2ndGrade 3rdGrade 4thGrade Total Basic Basic Basic Secondary Secondary Secondary Secondary Education Education Education Education Education Education Education

2004 �0 �0 802005 �0 �0 �0 �0 1602006 �0 �0 �0 �0 �0 �0 2�02007 60 �0 �0 �0 �0 �0 �0 �00

SOCIAL PERFORMANCE

El Soldado DivisionThemaininitiativein2006wastherepairoftheLosCaleosdam,whosewaterisusedbytheAssociationofLandowners.Thiswork,whichcostCh$10million,involvedchangingthegeomembranetoimpermeabilisethedamandincreaseitsoriginalcapacityby8%.Duetothis,landownerscanmakebetteruseofthewaterforthetechnicalirrigationoftheircrops.

ElSoldadoalsocontinuedtosupportthetransportof120pupilsfromtheirhomesinCollahue,LosCaleosandtheMacalIIIhousingestatetotheirclassesattheFelipeCortéshighschool,theSantaIsabelschoolandtheMunicipalSchoolofElMelón,contributingtohigherschoolattendanceandimprovingthetransportsafety.Beforethisproject,thechildrenusedtowalk10kilometresadaytoattendclasses.

ThedivisionalsosupportedtheMunicipalHealthServicewiththepurchaseofanecotomographandthemonitoringoftheneighbours’wells,andalsosupportedotherElMelónandNogalesdistrictinitiativessuchastheFireBrigade,theneighbours’committeesandelderpeople’shomes.

Mantoverde DivisionMantoverdeprovidedfinancialsupporttotheRegionalMiningSafetyCouncil(CORESEMIN18)ofAtacamain2006tosupporthealthandriskpreventionprogrammesofsmallminersinthenorth.

Thesocialbudgetisalsofocusedoneducationalandculturalactivities,supportfortheChañaralandElSaladoFireBrigades,productiveorganisationsandlocalauthorities.Aseriesoftalksweregivenduringtheyeartosecondaryeducation,technicalanduniversitypupilsandstudents.Culturalactivitieswere 18www.consejonacionaldeseguridaddechile.cl

sponsored,likepresentationsofartisticandmusicalgroups,andtheactivitiesoftheFireBrigade’sUndergroundRescueSchoolandtheUrbanRescueCentreweresupported,amongothers.

AnagreementwasreachedwiththeNationalTrainingInstitute(INACAP)tolaunchthecomplementarytrainingprogramme“GastronomyAssistantandFoodPreparation”inthedistrictofChañaral.Thisprogrammetrainsover�0youngstersof�rdand�thgradeofsecondaryeducationattheFedericoVarelahighschooltoprovidethemwithnewknowledgeandtoolssotheycangainaspecifictradeandincreasetheirpossibilitiesofemploymentwhentheyleaveschool.Thisinitiative,whichwaslaunchedin200�intheMantoverdeDivision,hastrainedover120youngstersinthisspeciality.

MantoverdealsoplaysanimportantroleintheAtacamaRegionDevelopmentCorporation(CORPROA),whichismadeupofbusinessmenandcompanyrepresentatives.ItsobjectiveistopromotetheminingclustertoconsolidatetheprocessinAtacama,boostinglocalsmallandmid-sizedcompanies.Alltheseactivitiesarefocusedonsupportingthetwolargeidentifiedneedsofeducationandemployabilityofthepeopleinthearea,andonlocalcharityinstitutionsandcommunityservice.


SOCIAL PERFORMANCE


CASE STUDY

Signing of an Agreement

with Fondo Esperanza

AccordingtotheMinistryofPlanning(MIDEPLAN),20%ofthepoorestfamiliesinChileliveonanaveragemonthlyincomeoflessthanUS$215,whereas20%ofthewealthiestfamiliesliveonUS$�,000.ThisrealitywasnotedduringtheapplicationoftheSEATandwhenthelocalcommunityrequirementswerereceived.

Thisiswhy,asmentionedinthelastreport,thecompanyapprovedabudgetofUS$�millioninlate2005tocreatearotatingfundthatwillhelpsocialundertakingsanddevelopment.BymeansofitsEmergeProgramme,theFondoEsperanzaFoundation(anHogardeCristoorganisation),AngloAmericanChilestrivestocontributetotheeconomicdevelopmentandwell-beingofthecommunitiesarounditsoperationsbysupportingsmallbusiness.ThecreditmethodologyoftheFondoEsperanzaFoundationisbasedontheformationofcommunitybanksmadeupofgroupsof18to25peoplewholiveinthesamedistrictandwhoundertaketheirbusinessindependentlyandpledgejointlyandseverallytopaybackthecapitallent.

Thefirststageoftheprojectwillbenefitover1,800entrepreneursfromtheprovincesofQuillota,SanFelipeandChacabucooverthenexttwoyearswithaninvestmentofaroundUS$500,000.Basedontheresults,theproposalallowsforexpansionthatwouldreachover6,700entrepreneursinthreeyearswithatotalinvestmentofUS$2.5million.

Amethodologyofdirectsupporthasbeendevelopedforthoseentrepreneurswhohavemovedbeyondsubsistence,whichwillstarttobeappliedasofMay2007withthefirstundertakingsselectedfromthesurvey.Over20projectswiththepotentialofenteringthisprogrammearecurrentlyunderanalysis.

19www.fondoesperanza.cl

SOCIAL PERFORMANCE


AngloAmericanespropietariadel��%delaCompañíaMineraDoñaInésdeCollahuasi.


Economic Performance

“Excellence in safety performance, best practice in sustainable development and sound business performance go hand in hand”.

Tony Trahar

CEO

AngloAmericanplc.


Highlights of 20062006willberememberedforthehighcopperpriceininternationalmarketswiththeaveragepricereaching�05.�US$c/lb,an8�%increaseontheaveragepriceof167.1US$c/lbofthepreviousyear.ThisreallyboostedAngloAmericanChile’searningsofUS$�,�0�.2million,67%higherthanin2005,includingtheresultofCollahuasi.

ThetotalfinecopperproductionofthefourminingdivisionsoperatedbyAngloAmericanamountedto��6,78�tonnes,whichwasa0.7%increaseon2005.Collahuasihadtotalproductionof��0,019tonnesoffinecopper,a�%increaseonthepreviousyear.

AngloAmericanChile’stotalproductionoffinecopperamountedto6�0,�9�tonnes,1.�%higherthanin2005.Thetotalmolybdenumproductionwas�,028tonnes,withtheLosBroncesDivisionaccountingfor2,5�9tonnesandthe��%productionofCollahuasiaccountingfor1,�79tonnes.Around85%ofthecopperproducedbyAngloAmericaissmeltedinChileandisexportedasmetalliccopper.

TheChagresSmelterhadrecordproductionof17�,�1�tonnesofanodes/blister,whichwasa26%increaseon2005.Itproduced�99,2��tonnesofsulphuricacid,whichwas��.�%higherthanthepreviousyear.

20AngloAmericanowns��%ofCompañíaMineraDoñaInésdeCollahuasi.

ECONOMIC PERFORMANCE HIGHLIGHTS OF 2006


MainResults(millionsofUS$)

2006 2005 2004

AngloAmericanNetIncome 2,960.9 1,890.7 1,�61.6

CollahuasiNetIncome(��%) 1,��2.� 751.1 6�0.2

TotalIncomebeforetaxes �,�0�.2 2,6�2 2,102

TotalTaxes 1,1�9.8 2�� 5�.2

AngloAmericanEarnings 1,68�.7 800.2 6�8.�

CollahuasiEarnings 777.2 �25.6 282.9

TotalEarnings 2,�61.9 1,125.8 921.�

AngloAmericanfinecopperproduction(tonnes) ��6,78� ��,�60 �55,�75

Collahuasifinecopperproduction(tonnes) 19�,609 187,890 211,629

Totalproduction(tonnes) 6�0,�9� 6�1,�50 667,00�

OperatingCost(US$c/lb) 89.8 7�.2 61.�

CapitalInvestments 181 12� 115

ROCE 155% 75% �6%

Averagecopperprice(US$c/lb) �05.� 167.1 1�0.1

2006 ResultsAngloAmericanChile’searningsaftertaxrose119%year-on-yeartoUS$2,�61.9million.Thisincreasenotonlyreflectsthehighcopperpricebutalsogreatertotalfinecopperoutputandcostsavings.

TotaltaxesamountedtoUS$1,1�9.8million,withfirstcategorytaxaccountingforUS$�65.2million,theadditionalprofitremittancetaxaccountingforUS$5�1.5million,andtheminingroyaltyforUS$1��.2million.Morethanthreetimesthetaxwaspaidin2006comparedwiththeUS$�10millionin2005.

US$181millionwereinvestedindifferentoperationalprojectsin2006,anincreaseontheUS$12�millionin2005,mainlytoincreasethelifeofoperationsortooptimiseprocesses.Thesocialinvestmentin2006wasUS$1.5million,whichwasa1�.6%increaseontheUS$1.�millionin2005.

2006 RESULTS ECONOMIC PERFORMANCE

89


the procurement and Contracts area is in

charge of the commercial relations with

contractors and suppliers. periodically

it undergoes self-evaluations using a

methodology known as the Supply Chain

Ci Guidelines, which includes 9 dimensions

related to sustainable development, such

as hazardous materials, ethical business,

waste reduction and the environment,

among others. this not only enables the

performance of this management area to be

evaluated but also its results to be compared

with other divisions of anglo base metals.

Suppliers and Contractors ThePrinciplesofGoodCorporateCitizenshipextendtocontractorsandsuppliers,whohadtosignaclauseofadherencetotheseprinciplesinthecontractsenteredintowiththemin2006.

Thecompanyhadcommercialrelationswith1,1�1suppliersin2006andrequestedtheservicesof600contractorcompanies,whichgenerated�,118indirectjobs(7�9services,1,518operationsand851projectjobs)in2006.AsofDecember2006,98%ofthesupplierpaymentsweremadewithinthetermsagreedon.1.0�%wasmadewithinthenext60daysand0.87%before90days.Only0.09%ofthepaymentsweretotallyoutoftheordinary,generallybecauseofwithholdingduetothecontractor’sfault,accordingtotheinternalauditdata.

Likewise,theMantosBlancosandMantoverdedivisionsstartedtouseQuadrem’sQMarkettool,joiningotheroperationsthatwerealreadyusingit.AsupplierclassificationwasmadeandthosenotregisteredinQuadremwereinvitedtodosotobolsterthecommercialtransactionsthroughthisplatform.

Thismechanismreducesthetransactioncostsandimprovetheresponsetimesgeneratingfasternegotiationprocessesandofferingmorecompetitiveness,transparencyandequalopportunities.

TheMantosBlancosDivisionalsousestheGoodsandServicesSupplierCompanyClassificationSystem(SICEP),whichisasupplierregistrysystemdevelopedbytheIndustrialAssociationofAntofagasta(AIA)andtheminingcompaniesintheregion.Itallowsforanupdateddatabaseofsuppliers/contractorsandtheircompliancewithlegislation,andenvironmental,socialandsafetyaspects.

Atthesametime,AIAaskedAbasteminoftheMiningCouncil,whichincludesalltheprocurementareasintheminingindustry,tostandardisethesafetyrequirementsforthirdpartiesandtoincludeanintellectualpropertyarticleinthecontractssothatcontractormaintainownershipoveroperationsinnovations.AngloAmericanconsideredtheseclausesinitsnewcontractsaccordingtothestandardsdefined.

AnothersignificanthighlightwasthepublicationofthenewGeneralAdministrativeBases,whichentailsanewcontractformatinwhichthemaincharacteristicisthatadministratorsmustrequirethird-partyworkerstobepaidthroughPrevired.TheobjectiveistoguaranteecompliancewithlabourregulationsregardingsocialsecuritypaymentsandtoimplementitbeforetheeffectivenessoftheSubcontractingLaw,whichcameintoforceonJanuary1�,2007.

ECONOMIC PERFORMANCE SUPPLIERS AND CONTRACTORS

Initiatives with Commercial Partners TheChagresSmelterundertookasystematicSupplierDevelopmentProgramme.Mantoverdeapprovedthebudgettoimplementsimilaractivitiesin2007,consideringtensuppliers,andtheotherdivisionscarriedoutongoingactivitieswiththeircommercialpartners.

ChagresimplementedaSupplierDevelopmentProgrammeaimedattraining17companiesthatprovidesuppliesandservicesaspartofitscollaborationpolicytoboostthesustainabledevelopmentofcontractorsandraisetheservicequalitywithhighperformancestandards.

ThefirstdiagnosisphasewasundertakenbyFUNDES21andwasco-financedbyAngloAmericanChileandCORFO22.Theaimofthisinitiativeistoincreasethecompetitivenessoftheproductivechain,strengthenthestabilityofthesubcontractingrelationshipamongsmallandlarge-sizedcompaniesandpromotethebusinessdevelopmentofthesmallandmid-sizedcompaniesparticipatinginalong-termprocess,whoseresultsinthefuturearedeemedbeneficialforboththesuppliersandthecompanyusingtheirproducts/services.

Mantoverdesupportedastudycalled“AtacamaSupplierCharacterisationDiagnosis,”co-financedbyCORFOandtheAtacamaRegionDevelopmentCorporation(CORPROA).

TheobjectivewastocharacterisesuppliersofmininggoodsandservicesinAtacamainordertodefinegapsontherequirementsofthecompaniesrequestingsuchgoodsandservices.Aninterventionplanwillthenbeproposed,whichwillallowlocalsupplytopositionitselfcompetitivelyinthemarket,leveragingexternalfactorsthataregeneratedwiththeproductivechain.Theinterventionwillboostsmallandmid-sizedcompaniesaccordingtotherequirementsofthecompaniesrequestingservices.

SUPPLIERS AND CONTRACTORS ECONOMIC PERFORMANCE

Basedonthediagnosismade,259companiessupplytheminingoperations,ofwhich1�1arelocalsuppliersand118external.Inotherwords,5�.6%ofthepurchasesmadebyminingcompaniesinAtacamaarefromlocalsuppliersintheregionandtheremaining�5.�%fromexternalproviders2�.

Moreover,MantoverdesponsoredtheIIBusiness“Win-Win”Session,whoseaimwastogetsmallandmid-sizedcompaniesclosertominingoperations.Thisisameetingpointforentrepreneurswheretheycanexchangesupplyanddemandforproducts,services,technologyandprojects,andthelabourmarketrequirements.

ElSoldadosignedfouragreementswithneighboursintheareasofLosCaleos(JuanAltamiranoandRenéBlanco)andCollahue(JacquelineMoralesandAlfonsoRamírez)toproducenativeplantsinthenextthreeyearswitheachofthemproducing5,000plantsperyear.AnagreementwasalsoreachedwiththeChristaMockAgriculturalSchoolinNogalestoproduce20,000nativeplantsayear.

Thepropagationiscarriedoutonthedivision’slandandtheneighboursaregiventechnicalassistanceandmostoftheseeds.Theagreementwaspossibleduetotheinterestoftheseneighboursinparticipatingintheprogramme.TheplantsproducedwillbeallocatedtothereforestationprogrammesoftheForestryStewardshipPlanscarriedoutbytheElSoldadoDivisionandtootherregionalreforestationprogrammes.

21www.fundes.cl22www.corfo.cl2�CompleteinformationinthedocumentpublishedbyCORPROA“MiningindustrysuppliersinAtacama,EconomicSituationAnalysisNº�2,May6,200�”


Suppliersofgoodsandservices 2006Suppliersofgoods 1,1�1Suppliersofservices 600Totalsuppliers 1,7�1

National Foreign TotalSuppliersofgoods 1,0�5 96 1,1�1Suppliersofservices 555 �5 600Total 1,590 1�1 1,7�1

Paymenttosuppliersin2006(nationalandforeigncurrency)

National % Foreign % Total % Currency Total Currency Total Total Ch$ ThUS$Suppliersofgoods �50,60� �9.7 16,915 1.9 �67,518 �1.6Suppliersofservices 500,�72 56.7 15,�18 1.7 515,791 58.�Total 851,07� 96.� �2,2�� .6 88�,�09 100




9�anGlo ameRiCan CHile SuStainable Development RepoRt



Thetablebelowshowsthedegreeofcompliancewiththeaspectsconsideredinthepreviousreportandalsoexhibitsthe2007commitments.

Issue 2006Target

Seguridad

Maintainzerofatalities √ Zerolost-timeaccidents X ImplementGoldenRulesauditplans √ Implementinitiatives/shortenthegapsdetectedintheDuPontdiagnosis. √ CompleteimplementationoftheBehaviour-BasedSafetyProgrammeatMantoverde. Reinforceinotherdivisions. √ MaintaintheISO1�000andOHSAS18000integratedcertificationinalldivisions. √ Implementtheplantoaligncontractorpersonnelworkstandardsandconditions. √

OccupationalHealth

ImplementthejobpositionstudybasedontheWorkFitnessProgramme √ attheMantosBlancosandMantoverdedivisions. EnsurecontractorcompliancewithAngloAmerican’soccupationalhealth √ andhygieneguidelines.

Environment

Certifications MaintaintheISO1�001andOHSAS18000integratedcertificationinallthedivisions. √Tailingsdamseepage ContinuetoimprovethecontroloftheLasTórtolasandElToritotailingsdams. √

Alternatives/productiveuseoftailingswater DeveloptheLasTórtolaspilotprojectstudyfortheagriculturaluseoftailingswater. X

Processwaterdischargescomplyingwith ImprovementssubmittedtoandapprovedbytheauthoritybeforeSeptember2006. √SupremeDecree90.Industrialwastemanagement Approvaloftheindustrialwastemanagementplans. √

Landuse DefinetheareatobeprotectedforconservationofthebiodiversityatElSoldado. ► Theforestationof7.8hectaresplusthe�hectaresoutstandingfrom2005areequivalentto √ atotalof10.�hectaresrehabilitatedin2006.Chagresemissions Completeimplementationoftheoptimisationproject. ►Energyconsumption Identify/developnewenergyreductioninitiatives. ►Waterconsumption Identify/developnewwaterconsumptionreductioninitiatives. ►Implementationofkeybiodiversityactionplans Propagateafurther20,000Bellotosfromseeds. √

UndertakeanotherprojectatYerbaLoca. √ Carryoutstudies/researchattheolddamsforrehabilitationusingautochthonousflora. √

Closureplans CompletethenextdetailedstageoftheMantosBlancosclosureplan X

SocialDevelopment

CommunityEngagementPlans Consolidation/implementationofthe2006CommunityEngagementPlans. √ Implementthe“opendoor”conceptinallthedivisions. PublishthesecondSustainableDevelopmentReport √

TARGETS AND COMMITMENTS



Thetablebelowshowsthedegreeofcompliancewiththeaspectsconsideredinthepreviousreportandalsoexhibitsthe2007commitments.

Issue 2006Target

Seguridad

Maintainzerofatalities √ Zerolost-timeaccidents X ImplementGoldenRulesauditplans √ Implementinitiatives/shortenthegapsdetectedintheDuPontdiagnosis. √ CompleteimplementationoftheBehaviour-BasedSafetyProgrammeatMantoverde. Reinforceinotherdivisions. √ MaintaintheISO1�000andOHSAS18000integratedcertificationinalldivisions. √ Implementtheplantoaligncontractorpersonnelworkstandardsandconditions. √

OccupationalHealth

ImplementthejobpositionstudybasedontheWorkFitnessProgramme √ attheMantosBlancosandMantoverdedivisions. EnsurecontractorcompliancewithAngloAmerican’soccupationalhealth √ andhygieneguidelines.

Environment

Certifications MaintaintheISO1�001andOHSAS18000integratedcertificationinallthedivisions. √Tailingsdamseepage ContinuetoimprovethecontroloftheLasTórtolasandElToritotailingsdams. √

Alternatives/productiveuseoftailingswater DeveloptheLasTórtolaspilotprojectstudyfortheagriculturaluseoftailingswater. X

Processwaterdischargescomplyingwith ImprovementssubmittedtoandapprovedbytheauthoritybeforeSeptember2006. √SupremeDecree90.Industrialwastemanagement Approvaloftheindustrialwastemanagementplans. √

Landuse DefinetheareatobeprotectedforconservationofthebiodiversityatElSoldado. ► Theforestationof7.8hectaresplusthe�hectaresoutstandingfrom2005areequivalentto √ atotalof10.�hectaresrehabilitatedin2006.Chagresemissions Completeimplementationoftheoptimisationproject. ►Energyconsumption Identify/developnewenergyreductioninitiatives. ►Waterconsumption Identify/developnewwaterconsumptionreductioninitiatives. ►Implementationofkeybiodiversityactionplans Propagateafurther20,000Bellotosfromseeds. √

UndertakeanotherprojectatYerbaLoca. √ Carryoutstudies/researchattheolddamsforrehabilitationusingautochthonousflora. √

Closureplans CompletethenextdetailedstageoftheMantosBlancosclosureplan X

SocialDevelopment

CommunityEngagementPlans Consolidation/implementationofthe2006CommunityEngagementPlans. √ Implementthe“opendoor”conceptinallthedivisions. PublishthesecondSustainableDevelopmentReport √

Actionundertakenin2006 2007Targets

Maintainzerofatalities.Theaccidentratedroppedfrom0.�in2005to0.��in2006. Zerolost-timeaccidents.NewversionoftheGoldenRules. ImplementtheAngloSafetyWaysystem. Consolidatebasicsafetyprocesses. Makeafollow-upandanalysisofthepreventivemanagementbymeansofleadership indicators. Alltheoperationsmustfullycomplywiththeheavy-dutyequipmentandmachinery guidelinesin2007,andthepowerlockoutproceduresandpractices. EnhancetheauditprocessusingAngloAmerican’sstandardreportingprotocoland formatforfindings. UndertakeanewworkclimatesurveyaccordingtotheDuPontscheme. CarryoutthependingactivitiesoftheContractorPlanaccordingtotheminimalstandards andcriteria. MaintaintheISOandOHSAScertifications.

EnsurecontractorcompliancewithAngloAmerican’soccupationalhealth andhygieneguidelines.Compliancecloseto100%

MaintaintheISO1�000certification.

ThehydrogeologicalstudyoftheElToritodamwasupdated ContinuethestudiesandimprovementsoftheElToritotailingsdamseepage.andimproved;studieswereconductedonthehydrogeologicalmodelsofthebasinandontheevapotranspirationoftheforestattheLasTórtolasdam. ImprovetheforestirrigationsystematLasTórtolas.

Thewastemanagementplanwasupdatedin2006pursuanttoSupremeDecree86/70.

Therehabilitationplanwascompliedwith.

Progresswasmadewithcomplyingwiththetargets Identify/developnewinitiativestoreduceenergyconsumptionandCO2emissions.oftheEnergyEfficiencyProgramme. Identify/developnewinitiativestoreducewaterconsumption. Propagate20,000Bellotoplants. ExpansionoftheYerbaLocaprotectionagreement. Updatetheclosureplansinthe5divisions.

(addressedintheSocialPerformancechapter) AssessandupdatetheCommunityEngagementPlans. Continuethe“OpenDoor”conceptinallthedivisions. PublishthethirdSustainableDevelopmentReport. Implementasupportprogrammeforsmallandmedium-sizedbusinessinthe5divisions.

Targetachieved: Processesbeingdeveloped: Targetnotachieved:√ X

95

TARGETS AND COMMITMENTS

Appendix 1

Legal System and OwnershipMineraSurAndesLimitadawasestablishedasacorporationbymeansofapublicdeedissuedbytheSantiagoNotaryofMr.EulogioAltamirano,onSeptember6,1916.Thefolioofitsexcerptwasregisteredonsheet79�Nº�06oftheSantiagoCommerceRegistryoftheRealEstateRegistrarthesameyear.ItscurrentandonlypartnersareInversionesAngloAmericanSurLimitadawith99.9%ofthecapitalstock,andAngloAmericanSurS.A.withtheremaining0.1%,andbotharesubsidiariesofAngloAmericanplc.EmpresaMineradeMantosBlancosS.A.wasestablishedasacorporationbymeansofapublicdeedissuedbytheSantiagoNotaryofMr.JaimeGarcíaPalazuelos,onOctober19,1955,andtheexcerptofitsfoliowasregisteredonsheet6.101Nº�.598oftheSantiagoCommerceRegistrythesameyear.Itscapitalstockisdividedinto157,8�7,925registerednon-par-valuesharesofasingleseries,ofwhichapproximately99.98%belongtoAngloAmericanplc’ssubsidiarycompaniescalledInversionesAngloAmericanNorteLimitada,MinorcoInversudS.A.,andInversionesMinorcoChileS.A.Toleveragethesynergiesarisingfromtheworkoftwocopper-producingcompanieswithsimilarproducts,andespeciallywithhumanresourcesthatcouldworkineithercompany,itwasdecidedtoformAngloAmericanChileLimitadapursuanttoapublicdeed,datedMarch1�,200�,issuedbytheSantiagoNotaryofMr.AndrésRubioFlores,whosefolioexcerptwasregisteredonsheet7.11�Nº5.596oftheSantiagoCommerceRegistryinthesameyear.

Subsidiaries, Affiliates and Related CompaniesEmpresaMineradeMantosBlancosS.A.hasastakeinthefollowingcompanies:

a)MineraAngloAmericanChileLimitada,engagedinmineexplorationandexploitation,thepurchaseandsaleofminingclaims.57.22%stakeofthecapitalstock.b)MineraSantaRosaSCM,engagedintheexploration,developmentandexploitationofminingclaims.25.12%stakeofthecapitalstock.c)AngloAmericanChileLimitada,engagedinprovidingmanagement,planningandconsultancyservicesinvariousareas.�0%stakeofthecapitalstock.d)CompañíaMineraAngloComincoLimitada,engagedinmine

explorationandexploitation.MantosBlancosparticipatesinthiscompanyindirectlythroughitsstakeinMineraAngloAmericanChileLimitada.Thelattercompanyowns50%ofthecapitalstockofCompañíaMineraAngloComincoLimitada.

MineraSurAndesLimitadahasastakeinAngloAmericanChileLimitada,engagedinprovidingmanagement,planningandconsultancyservices.70%stakeofthecapitalstock.

Corporate Governance of Related CompaniesEmpresaMineradeMantosBlancosS.A.hasaboardmadeupofthreeincumbentdirectorsandthreealternatedirectors.ThereisalsoaGeneralManagerappointedbythecompanyboard,andJohnDyerHopwoodholdsthisposition.

MineraSurAndesLimitadahasaboardmadeupof5incumbentdirectorsand5alternatedirectors.

INCUMBENT DIRECTORS ALTERNATE DIRECTORS

pieter louw Felipe purcell

John Dyer Gastón véliz

eduardo muñoz lorenzo menéndez

INCUMBENT DIRECTORS ALTERNATE DIRECTORS

pieter louw alejandro mena

miguel angel Durán lorenzo menéndez

John Dyer Claus bunger

Felipe purcell Gustavo tapia

Robert Cunnigham ignacio Quiñones

APPENDIX 1


Appendix 2All the material consulted and the list of interviewees that participated in this project have been included to make the 2006SustainableDevelopmentReportingprocessmoretransparent.

Internaldocumentsconsulted Externaldocumentsconsulted

2005&2006AnnualReports. GolderReport:diagnosisofthewaterresourcesoftheCopiapó riverbed.

2005&2006SustainableDevelopmentReports. 2006GlobalAccountabilityReport–OneWorldTrust.

Thecompany’sarticlesofassociation. SEAT200�ReportsofallthedivisionsissuedbyCasadelaPaz.

TheBoard’sbookofminutes. AngloAmericanplcSDAssurance2006presentation–siteclose outmeetingdrawnupbyKPMG.

CorporateEmergencyResponsePlan. SAMBenchmarkingReport.

PrinciplesofGoodCorporateCitizenship. 2006MiningandBiodiversity.DocumentbytheNationalMining Board.

LetterofAssurance. ChileanMiningPulse2006–DocumentbyMoriandtheCatholic UniversityofChile.

SEATandnewtools. ReportontheEvaluationofExternalServiceCompanyLabour Relations–IRConsulting.

2005&2006CommunityEngagementPlans.

BulletinonIntegratedRiskManagement(IRM–frameworkforIntegratedRiskManagement).

AgreementwiththeEsperanzaFoundation.

“Product”definitionprocedure.

AngloworldcorporatenewslettersNº25&27

Welcomemanual“Welcometobuildingoneofthemostvaluedandrespectedcopperbusinessesintheworld.”

CulturalModel:SummitProject.

Feedbackontheresultsoftheworkclimatesurvey.

Safety,occupationalhealthandenvironmentaldatabase

LosBroncesDevelopmentProjectleaflet

LosBronces,ElSoldado,MantosBlancos,MantoverdeandtheChagresSmeltercollectivebargainingagreements.

Documentsonhandlinghazardoussubstances.

APPENDIX 2


99

Interviews:

1. AlejandroMena, Vice-PresidentHumanResources

2. LorenzoMenéndez, SeniorManagerSafety&SustainableDevelopment

�. JuanAlbertoRuiz, SeniorManagerProcurement&Contracts

�. MauricioBianchi, SeniorManagerMarketing

5. FernandoValenzuela, EnvironmentalManager

6. IgnacioQuiñones, LegalAffairsManager

7. CarlosWilhelm, SafetyManager

8. CarlosCruces,GerentedeIngenieríadeMateriales, Warehousing&LogisticsManager

9. HernánGómez, Procurement&ContractsManager

10. BenjamínGaldames,GerentedeRelaciones OrganisationalEffectivenessManager

11. OscarTorres, HumanResourcesAdministrationManager

12. FerrucioMedici, Maintenance&EnergyAdvisor

1�. ChristianClark, SustainableDevelopmentAdvisor

1�. GracielaBustamante, ManagementControlAdvisor

15. JorgePoblete, Social&EconomicDevelopmentAdvisor

nGlo ameRiCan CHile SuStainable Development RepoRt

APPENDIX 2

Global Reporting Reporting Initiative

GLOBAL REPORTING INITIATIVE INDEX

GlobalReportingInitiativeIndex/GlobalCompactPrinciples

VisionandStrategyGRIIndicator GlobalCompactPrinciple PageNº

1.1Organisationvisionandstrategy. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. �&2�1.2MessagefromtheCEO. �

Profile GRIIndicator GlobalCompactPrinciple PageNº

2.1 Nameoftheorganisation. 102.2. Primaryproductsandservices. 10-152.� Operationalstructureoftheorganisation. 1�2.� Descriptionofthemaindivisions,operatingcompanies,subsidiariesandjointventures. 62.5 Numberofcountrieswheretheorganisationoperates. 82.6 Legalform. 972.7 Marketsserved. 11-122.8 Scaleofthereportingorganisation. 102.9 Listofstakeholders. 28-292.10 Contactpersonforrelatedissues. Pocket2.11 Reportingperiod. 62.12 Dateofmostrecentpreviousreport. 62.1� Scopeofthereport. 62.1� Significantchangesintheorganisation. N/A2.15 Basisforreportingonsubsidiaries. 102.16 Explanationoftheeffectofanyre-statementsofinformationprovidedinearlierreports. 62.17 DecisionofnotapplyingGRIprinciples. N/A2.18 Criteriaanddefinitionsused Footnote2.19 Significantchangesinthecalculationmethod. N/A2.20 Policiesandpracticestoguaranteeaccuracy,thoroughnessandveracity. 62.21 Policyandcurrentpracticeswithregardtoseekingexternalassuranceforthereport. 62.22 Meansbywhichuserscanfindadditionalinformation. 6/footnote

GovernanceStructureandManagementSystemsElementoGRIGRIIndicator GlobalCompactPrinciple PageNº

�.1 GovernanceStructure. 20�.2 Percentageofnon-executiveindependentdirectors. N/A�.� Processfordeterminingtheexpertiseofdirectors. 20�.� Proceduresforidentifyingandmanagingeconomic,environmentalandsocial opportunitiesandrisks. 2��.5 Linkagebetweendirectcompensationandtheachievementofthefinancialand non-financialobjectives. N/A�.6 Organisationalstructure. 22�.7 Statementsofmissionandvalues,principles,codesofconduct,andpoliciesrelevant toenvironmental,social,andeconomicperformance. Report�.8 MechanismsforshareholderstoproviderecommendationstotheBoard. N/A�.9 Processfordefiningstakeholders. Notreported�.10 Methodsforconsultinginterestedparties. 28-81�.11 Typeofinformationgeneratedbystakeholderconcerns. 2005Report�.12 Useoftheinformationobtainedasaresultofstakeholdercommitments. 28-81�.1� Explanationoftheuseoftheprecautionaryprinciple. Nº7:Businessesshouldsupportaprecautionaryapproachto environmentalchallenges. Notreported�.1� Economic,environmental,andsocialcommitments,principles,orothervoluntaryinitiatives towhichtheorganisationsubscribes. �0-�1�.15 Membershipofbusiness/industryassociations. �2�.16 Policiesand/orsystemsformanagingimpactscausedbyprocessespriortoandafter thoseoftheorganisation. 2��.17 Organisation’sfocusonthemanagementoftheindirecteconomic,environmentaland socialimpactsofitsactivities. 2��.18 Maindecisionsmadeduringthereportingperiodregardingthelocationormodification ofoperations. N/A�.19 Programmesandproceduresregardingeconomic,environmentalandsocialperformance. ��-��/61-92�.20 Certificationstatusofeconomic,environmentalandsocialmanagementsystems. 25



EconomicPerformanceGRIIndicator GlobalCompactPrinciple PageNº

EC1. Netsales. 10&89EC2. Geographicalbreakdownofmarketsforeachproduct. 10&11EC�. Costsofallrawmaterialsandgoodspurchased,andalltheserviceshired. 92EC�. Percentageofcontractspaidpursuanttoagreedterms. 90EC5. Totalpayroll. StrategicEC6. Distributiontocapitalproviders,brokendownbyinterestondebtandborrowings,and dividendsfromsharesofanykind. NotreportedEC7. Retainedearningsattheendoftheperiod. 89EC8. Totalsumoftaxesofalltypespaid. 89EC9. Subsidiesreceived. N/AEC10. Donationstothecommunityincashandkind,brokendownbytypesofgroup. 82MM1. Identifythosesiteswherethelocaleconomiccontributionanddevelopmentimpactis ofparticularsignificanceandinteresttostakeholders. MM2. Valueadded(totalearningsminustotalacquisitioncost). 89&92 EnvironmentalPerformanceGRIIndicator GlobalCompactPrinciple PageNº

EN1. Totalconsumptionofrawmaterials. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. 62EN2. Percentageofrawmaterialsusedthatarewaste. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. 62EN�. Directenergyconsumptionbyprimaryenergysource. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. �7EN�. ndirectenergyconsumption. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. �7EN17. Initiativesforusingrenewableenergysources. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. Nº9:Encouragethedevelopmentanddiffusionofenvironmentally-friendlytechnologies. �0EN5. Totalwaterwithdrawal. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. 6�EN6. Locationandsizeoflandownedbythecompanywithhighbiodiversityvalue. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. 72-75EN7. Analysisofsignificantimpactsofactivities,and/orproductsandservicesonbiodiversity inland,saltwaterandfreshwaterenvironments. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. 72-75EN2�. Totalamountoflandorpropertyforproductionactivitiesorextractiveuse.

1. Totallanddisturbedandnotyetrehabilitated.2. Totalamountoflandnewlydisturbedwithinthereportingperiod.�. Totalamountoflandnewlyrehabilitatedwithinthereportingperiod. 72-75MM�. Thenumberofsitesidentifiedasrequiringbiodiversitymanagementplans,andthe numberofsiteswithplansinplace. 72-75EN25. Impactscausedbyactivitiesoroperationsinprotectedandsensitiveareas. 72-75EN26. Changestonaturalhabitatsasaresultofactivitiesandoperations,andpercentage ofprotectedorrestoredhabitats. 72-75EN27. Programmesandobjectivestoprotectandrestoreecosystemsandautochthonous speciesindegradedzones. 72-75EN8. Greenhousegasemissions. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. �7-67EN9. Useandemissionsofozone-depletingsubstances. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. 67EN10. NOx,SOx,andothersignificantairemissionsbytype. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. 67EN11. Totalweightofwastebytype. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. 69-71EN12. Significantspillsintowatercourses(byamountorimpact). Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. 65EN1� Chemical,oilandfuelspills. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. 78EN�1. Anyproduction,transport,importorexportofhazardouswaste. 70-71EN1�. Significantenvironmentalimpactsofmainproducts. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. 78EN15. Percentageweightofproductssoldthatarereclaimedattheendoftheirlife. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility.EN16. Eventsandfinesfornon-compliancewithagreements/treaties/declarations. Nº8:Undertakeinitiativestopromotegreaterenvironmentalresponsibility. NoneEN�5. Totalenvironmentalprotectionexpenditures. 62MM�. Percentageofproductsderivedfromsecondarymaterials(excludinginternalrecycling). 70MM5. Describepoliciesforassessingtheeco-efficiencyandsustainabilityattributesofproducts. 27MM6. Describetheapproachtomanagementofoverburden,rock,tailings/waste,andsludge. 66&69


SocialPerformanceGRIIndicator GlobalCompactPrinciple PageNº

LA1. Breakdownofworkforcebyregions/status(employees-non-employees), employmenttype(full-time-part-time),employmentcontract(indefinite-term). �2-��LA2. Netemploymentcreationandaverageturnover. �2&89LA�. Percentageofemployeesrepresentedbytradeunionorganisations. Nº�:Businessesshouldupholdthefreedomofassociation andtheeffectiverecognitionoftherighttocollectivebargaining. �7LA�. Policyandproceduresoninformation,consultationandnegotiationwithemployees. Nº�:Businessesshouldupholdthefreedomofassociationandtheeffective recognitionoftherighttocollectivebargaining. �7LA5. Methodsofrecordingandnotifyingworkaccidentsandoccupationaldiseases. 58LA6. Describejointmanagementandtradeunionhealthandsafetycommissions. 56LA7. Ratesofabsenteeism,workaccidentsandinjury,dayslostandnumberoffatalities. 5�-55LA8. DescribepoliciesorprogrammesonHIV/AIDS. GoodCorporateCitizenshipLA9. Averagehoursoftrainingperyearbyemployeecategory(executive,operator,technician). ��LA10. Describeequalopportunityprogrammesandpolicies. Nº6:Theeliminationofdiscriminationinrespectofemploymentandoccupation. 9&�8LA11. Compositionofseniormanagementandcorporategovernancebodies,includinggender ratioandotherindicatorsofdiversity. Nº6:Theeliminationofdiscriminationinrespectofemploymentandoccupation. 9&��HR1. Policies,guidelines,corporatestructureandproceduresonhumanrights. Nº1:Businessesshouldsupportandrespecttheprotectionofinternationally proclaimedhumanrights. �8HR2. Evidencethathumanrightsareconsideredinthecompany’sstrategy. Nº1:Businessesshouldsupportandrespecttheprotectionofinternationally proclaimedhumanrights. Nº2:Makesurethattheyarenotcomplicitinhumanrightsabuses. �0&�8HR�. Policiesandprocedurestoassesshumanrightsperformancewithinthesupplychain Nº1:Businessesshouldsupportandrespecttheprotectionof andcontractors. internationallyproclaimedhumanrights. Nº2:Makesurethattheyarenotcomplicitinhumanrightsabuses. �0,90&91HR�. Globalpoliciesandprogrammestopreventdiscrimination. Nº1:Businessesshouldsupportandrespecttheprotectionofinternationally proclaimedhumanrights. Nº6:Theeliminationofdiscriminationinrespectofemploymentandoccupation. �2,��,�8HR5. Describethefreedomofassociationpolicyandtheextenttowhichitisapplied. Nº�:Businessesshouldupholdthefreedomofassociationandtheeffective recognitionoftherighttocollectivebargaining. �7,�8HR6. Describethepolicyofanti-childlabour. Nº5:Theeffectiveabolitionofchildlabour. �8HR7. Statementofthepolicyagainstforcedorcompulsorylabour. Nº�:Theeliminationofallformsofforcedandcompulsorylabour. �8SO1. Describethemanagementpoliciesoftheimpactsoncommunitiesinregionsaffectedby activities(supportforlocaldevelopment,workforcetraining,andbiodiversityprojects). 61-86SO2. Describethemanagementsystems/complianceproceduresoncorruptionandbribery. Nº10:Businessesshouldworkagainstcorruptioninallitsforms,including extortionandbribery. 21-��SO�. Describethemanagementsystems/complianceproceduresaddressingcontributions andpoliticallobbying. 21SO7. Describethemanagementsystemstopreventanti-competitivebehaviour. 21-��PR1. Describethepolicyonthecustomer’shealthandsafetyduringtheuseoftheproduct. 12PR2 Describethepoliciesandmanagementsystemsonproductlabellinganddescription. 12PR�. Describethepoliciesandmanagementsystemsoncustomerprivacy. N/AMM7. Describesignificantincidentsaffectingcommunitiesduringthereportingperiod,and grievancemechanismsusedtoresolvetheincidentsandtheiroutcome. 78MM8. Describeprogrammesthataddressartisanalandsmall-scalemining. 8�MM9. Describeresettlementpoliciesandactivities,transferofcamps,transferindemnity. N/AintheperiodMM10. Numberorpercentageofoperationswithclosureplans,coveringsocial,environmentaland economicaspects. 75MM11. Describetheprocessforidentifyinglocalcommunities’landandcustomaryrightsoflocal communities,andgrievancemechanismsusedtoresolveanydisputes. 76MM12. Describetheapproachtoidentifying,preventing,andrespondingtoemergencysituations affectingemployees,localcommunities,ortheenvironment. 57MM1�. Numberofcasesofoccupationaldiseasebytype.Describeprogrammestoprevent occupationaldisease. 58-59

INDICE GLOBAL REPORTING INITIATIVE




We are interested in your opinion Toimprovenextyear’sreport,wewouldliketoknowyouropinionandthereforeaskyoutocompletethisquestionnaireonourwebsitewww.anglochile.cl.

1. Whatinterestgroupdoyoubelongto?

___ Shareholders ___ SuppliersandContractors___ Customers ___ Authorities___ Workers ___ Communityingeneral

2. Whatisyouropinionaboutthe2006SustainableDevelopmentReport?

2.1. Ingeneralterms:

____ Theinformationisprovidedcomprehensiblyandwithanorderlystructure.____ Theinformationisprovidedcomprehensiblybutdisorderly.____ Theinformationisnotprovidedverycomprehensiblybutisorderly.____ Theinformationisnotprovidedverycomprehensiblyandisdisorderly.

2.2. Concerningthecontent:

___ IconsideritprovidesalltheinformationIneed.___ IconsidertheinformationprovidedisnotwhatIneed.___ Iconsidertheinformationisprovidedimpartially.___ Iconsidertheinformationprovidedispartial.

3. Ifyouconsidertheinformationprovidedisnotwhatyouneed,helpustoimproveournextreportbylettingusknowwhatkindofinformationyouwouldliketoseeinourreport.

4. Commentsorsuggestions

Thankyouverymuchforyourtime

10�

Associatedsteps

STEPE:Developamanagementandsupervisionplan forkeyissues, including formulation of key performanceindicators(KPIs)onalowerscale.

STEPF:Improve the application and contribution of non-coreactivities.

STEPG:Post-closureplanning

STEPH:Prepare a report summarising the assessmentconclusionsandstakeholderfeedbackcontribution.

Co

nti

nu

ou

sIm

pro

vem

en

ta

nd

En

ga

ge

me

nt

STAGE2:Identify&assesssocialandeconomicimpactsandshareresultswith

stakeholders.

STAGE�:Developmanagement

responsestokeyissues,includingclosureplanning.

STEPA:ProfiletheminingoperationsofAngloAmerican

STEPB:Profilethecommunityandstartengagementwithkeystakeholderstoidentifycoreissues.

STEPC:Identifyandassessthesocialandeconomicimpactsoftheminingoperationsandassessexistingmanagementmeasuresandsocialinvestmentinitiatives.

PasoD:Share results of impact assessment (quantitativeand qualitative) with stakeholders and obtainrecommendationsformanagementofissues.

➧➧

➧

SEATAngloAmericanChileappliedthesocio-economicassessmenttoolbox(SEAT)withthesupportofCasadelaPaztothecommunitiesaroundthedivisionsin200�.Theobjectiveofthisinstrumentwastoraisecomprehensionoftheexpectationsandrequirementsofthesestakeholders.

AngloAmericanlaunchedanewversionofthisinstrumentin2006,SEATII,toimprovetheprocessinthelightofsituationsthatwereaconstantfactorinallitsoperations,likethelocalhealthproblems,thesearchforsynergyininfrastructureinvestments,resettlementplanning,andthedevelopmentoflocalskills.

ThetoolboxandtheprocesswerecommendedbythejudgesoftheWorldBusinessAwards,whicharejointlypresentedbytheInternationalChamberofCommerce,theUnitedNationsDevelopmentProgrammeandtheInternationalBusinessLeadersForumforthesupporttheyprovidetotheUNMillenniumDevelopmentGoals(MDGs).

STAGE1:Profilethemining

operationsofAngloAmerican

andrelatedcommunities.

Etapa�:Reporttheresultsofthe

assessment.



Keyquestiontoaskateachstage

yes No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

yes

yes

yes

yes

yes

yes

yes

yes

yes

yes

Doyouhaveaprofileofyourminingoperation? ToolA1:Miningoperationprofile

ToolB1:Stakeholderidentificationandgapanalysis.

ToolB�:Overviewofpotentialissuesandpossiblecauses.

ToolB�:Guidanceonpossibleconsultationapproaches.

ToolB5:Guidanceongenericquestionstobeaskedduringconsultation.

Tool C1: Identification of Anglo American’s activities that havesocialandeconomicimpacts.

Tool C2: Assessment of issues raised during the consultationprocess.

ToolC�:Howtocalculateaminingoperation’svalueadded.

ToolC�:Inventoryofallpaymentsmadetothepublicsector.

ToolG1:Guidanceonclosureplanning/planningforthefuture.

ToolH1:Operationprofiletemplate.

ToolC5:Calculatingtotalemploymentgeneratedbyyourminingoperation.

ToolE1:Developmentofamanagementandmonitoringplan.ToolE2:Developmentoflocalkeyperformanceindicators.

ToolB2:Buildingabasiccommunityprofile.ToolB5:Overviewandguidanceonbaselineformulation.

Toolstoanswerthequestions

Doyouhaveaprofileofyourassociatedcommunities?

Doyouknowallyourkeystakeholders?

Doyouunderstandallthewaysinwhichyoumightimpactuponthecommunity,positivelyandnegatively?

Doyouknowwhatquestionstoaskstakeholders?

Doyouunderstandtherelationshipbetweenon-siteactivitiesandcommunityimpacts?

Doyouknowyourminingoperation’svalueaddedtothedomesticeconomy?

Doyouknowthetotalpaymentsyourminingoperationmakestothegovernment?

Doyouknowthetotalnumberofjobsyourminingoperationcreates,bothon-andoff-site?

Haveyouevaluatedtheeffectivenessofexistingmanagementmeasuresandsocialinitiatives?

Haveyousharedtheresultsoftheassessmentwithstakeholders?

Haveyoudevelopedamanagementplanforsocialandeconomicimpactsandidentifiedmeasures

totrackprogress?

Haveyoudevelopedyourownguidanceforestablishinginitiativestoimproveyoursocialand

economiccontribution?

Doyouhaveplansfortheeventualclosureordownsizingofyourminingoperation(forforeseen

closure,i.e.,forminesorasacontingency)?

Doyouhaveastandardisedreportingmodelfordocumentinganddisseminatingtheresultsofyour

assessmentofsocialandeconomicimpactsandthemanagementmeasures?

Doyouhaveaframeworkforanalysingandassessingissuesraisedbystakeholdersduringconsultation,

qualitativelyandquantitatively?

Areyouconfidentthatyouknowthebestwaystoconsultyourcommunity,includingthekeyquestionstobeasked?

ToolC1:IdentificationofAngloAmerican’sactivitiesthathavesocialandeconomicimpacts.ToolC6:Identificationandassessmentofexistingcommunitysocialinvestments.ToolC7:Guidanceonassessingperformanceinrelationtocorporatepolicies.

ToolF1:Increaseinlocalpurchasesandoutsourcingtosupportthedevelopmentoflocalcompanies.ToolF2:Establishmentofnewcommunitysocialinvestmentinitiatives.ToolF�:Developmentofhumancapital.ToolF�:Howtoestablishpartnerships.

ToolB�:Guidanceonpossibleconsultationapproaches.

ToolD1:SharingSEATprocessresultswithstakeholders.

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yes

yes

yes

PANTONE: 021 C PANTONE: 307 C

LOMO DE 1 cm ?

ANGLOAMERICAN

CHILE


2006

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6

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Anglo American ChileAv. Pedro de Valdivia 291CP 750-0524 - Providencia, Santiago Telephone (56-2) 230 6000Fax (56-2) 230 6551www.anglochile.cl

Design / ProductionPeople Marketing Group

Advice on the use of GRI guidelinesYasmina Zabib M.

Contact us

For further information, please contact:

Lorenzo Menéndez

Safety and Sustainable Development [email protected]

Fernando Valenzuela

Environmental and Community [email protected]

Marcelo Esquivel

External Affairs [email protected]