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With its contribution to 10 SDGs and the adoption of six initiatives to improve its practices, Drummond presents its 2018 Sustainability Report

Bogotá, September 3, 2019

  • With the creation of 10,178 direct and indirect jobs, in 2018 the company achieved its third consecutive year as the largest producer and exporter of Colombian coal.
  • The company signed or voluntarily adhered to six initiatives to improve its practices, including Bettercoal evaluations and its participation in multi-actor initiatives such as the Working Group on Human Rights and Coal, the Mining and Energy Committee, and others.

With a view to increasing and sharing its benefits with its stakeholders in the areas of influence through building and strengthening local capacities, Drummond Ltd. presents its 2018 Sustainability Report. In this version, the company gives an account of how its work is reflected in its contribution to meeting 10 of the Sustainable Development Goals (SDGs) promoted by the United Nations through the 2030 Agenda.

“Based on the pillars of our Corporate Social Responsibility strategy (Environmental Performance, Governance for Development, Peace and Human Rights, and Comprehensive Development), the company identified its contribution to meeting the SDGs in Colombia,” said José Miguel Linares, President of the company. They include generating decent jobs and economic growth; high-quality education; sustainable cities and communities; responsible production and consumption; life on land ecosystems; as well as peace, justice and solid institutions.”

In terms of economic development, at the end of 2018, Drummond had produced 30.8 million tons of coal and exported 31.5 million tons, which represented payments of royalties and compensation to the national government of USD $387.5 million and more than USD $236 million in taxes, fees and contributions.

“The company’s operations also contributed to business growth, both in its area of influence and in the rest of the country. With 930 domestic suppliers, of which 448 are from the Caribbean region, in 2018 we made purchased of more than USD $1.2 billion,” Mr. Linares added.

Under the Comprehensive Development pillar, in matters related to managing human talent, in 2018 Drummond created 10,178 jobs (5,142 direct employees – 5,035 contractors), of which 98.3% of its direct employees were covered by extralegal benefits, 103 employees received university scholarships, 55 participated in in-house training (of 712 people who have participated in the program to date) and 24 professionals were in training.

“Additionally, in 2018 Drummond invested COP $6.7 billion in more than 30 projects developed in the 11 municipalities in its area of influence, benefiting more than 1.3 million people in Magdalena and Cesar. Moreover, 130 graduates of public high schools in the two departments received professional degrees,” said Juan Pablo Arteaga, Drummond’s Vice President of Sustainability.

Specifically regarding occupational health and safety, in 2018 the Management System was also re-certified under the OHSAS 18001:2007 standard. In addition, Drummond received the Emerald Cross Medal of Merit in the category of Excellence in Industrial Safety for the Transportation Department’s operations (Railroad).

In terms of the Environmental Performance pillar, the Forest Compensation program stands out as a pioneer in Colombia that seeks to form biological corridors between natural ecosystems in Cesar through restoration and conservation nuclei and income-producing projects. In this regard, in 2018 a recovery process began on more than 150 hectares of areas affected by mining, more than 60,000 trees from approximately 30 native species were planted and 494 wild animals were released.

In 2018, Drummond also allocated more than COP $45.9 billion to managing air quality at its mining and port operations, to implement and maintain appropriate emission control strategies, taking into account the region’s socioeconomic dynamics and climatic conditions. Regarding the management of its water resources, last year the company reduced its use of water from natural sources by 54.8% (compared to 2017), recycling rainwater stored in the mining complex.

Under the pillar of Governance for Development, specifically its work related to resettlement, in 2018 Drummond, Prodeco and CNR signed the Resettlement Action Plan (RAP) in the community of El Hatillo (Cesar). They also took actions to improve the quality of life of families from Boquerón (Cesar) in terms of education, community infrastructure, job creation and community building. In the case of Plan Bonito, it continued with the implementation of the Livelihood Restoration Program (LRP) for the families relocated in 2015.

Finally, in terms of the pillar of Peace and Human Rights, in 2018 the company focused its efforts on due diligence on human rights. Its contribution included promoting peaceful coexistence by former combatants and the communities in its territory, the creation of opportunities to build trust to prevent conflict, and dialogue cycles with employees, contractors and the communities about the company’s performance in this area and the ways in which we can improve our performance.

“Despite the industry’s challenges in Colombia and the dynamism of the coal market, these results allow each one of our employees, our families, contractors and suppliers to tell the country that we are deeply proud of being miners. That is what we are and what we want to show the world, the Mining Well Done that we develop in Colombia, that generates wealth and builds the country,” the President of the company concluded.

Link to 2018 Sustainability Report (Spanish): http://www.drummondltd.com/noticias-publicaciones/informes-de-sostenibilidad/