Drummond Ltd. launches its Sustainability Report 2019, as part of its ongoing conversation with its stakeholders

Cienaga, October 2, 2020

  • Producing 32.6 million tons in 2019, the company was the largest coal producer and exporter in Colombia for the fourth consecutive year
  • At the close of 2019, the operations provided 10,577 direct jobs, thus supporting the country’s economic growth and comprehensive development.

To demonstrate the work it does in each area to meet the Sustainable Development Goals – SDG – and eradicate poverty, Drummond Ltd. published its Sustainability Report 2019. The report describes its strategic vision, involving its different stakeholders, for increasing and sharing the benefits of its business project by building and strengthening local skills.

“When we understand the role of business as a promoter of partnerships and a co-creator of solutions with the multiple parties involved in generating progress and meeting the SDGs, we can then meet our goals for having a positive impact,” emphasized Jose Miguel Linares, President of Drummond Ltd. Colombia.

In the context of the four pillars (Peace and Human Rights, Governance for Development, Environmental Performance, and Comprehensive Development) that support and focus the company’s social responsibility efforts, the company did a materiality analysis to establish economic, social, and environmental impacts, marking out the path forward with different stakeholders, as reflected in the report.

Under the Peace and Human Rights pillar, which promotes a society that gets along and respects basic rights, with accompaniment for the State, and fomenting transparency and stronger practices, five years ago the company adopted the Voluntary Principles on Security and Human Rights, and the UN Guiding Principles on Business and Human Rights. It also meets the Bettercoal code, and is a member of the Working Group on Human Rights and Coal, the Extractive Industry Transparency Initiative (EITI), and the IFC, and it joined the Board of Directors of the Energy and Mining Committee on Security and Human Rights (CME).

Pablo Urrutia, Vice President of Public Affairs and Communications, indicated that, “Under this pillar, 1,984 people participated in projects that focus on reducing violence, protecting human rights, and building peace and protective surroundings.” The company also provided a total of 419 hours of training for security personnel in human rights policies and procedures, training 100% of the personnel providing guard services in this same subject.

In connection with the Governance for Development pillar, the company invested around 1.2 billion pesos in institutional and community infrastructure. It trained 6 municipal ombudsmen in monitoring and controlling the resources invested from the General Royalties System, and trained 200 public servants in subjects related to public administration, including governors, deputies, mayors, and councilpersons-elect in the area of influence.

Under the Environmental Performance pillar, it concentrated efforts on recovering areas affected by the advance the mining operation, involving 1,245 ha, approximately 20% of the total. The company released more than 8,500 rescued wildlife specimens and planted nearly 40,000 seedlings and 3,000 kg of seeds native to the tropical dry forest, which will produce more than 500,000 native trees from the company’s nurseries.

Under thepillar of Comprehensive Development, the report highlights the jobs provided to 5,137 direct employees, hired mainly from the areas of influence of the mines and port. An additional 5,440 jobs have been created at contractors, and 90.60% of those workers are from the Caribbean region.

Relative to its operational and financial performance during 2019, Drummond stood out for the fourth consecutive year as the company with the largest volume of coal production and exports in Colombia. ” During that same year, that performance also meant it generated royalties and compensations of USD$332.5 million, along with USD$209.7 million in taxes, fees and contributions. These resources allow the State to invest in the sustainability of the region and the country,” added Juan Pablo Arteaga, Vice President of Sustainability.

As pointed out by Jose Miguel Linares, the company’s president, understanding the role of business in society is fundamental for building a better future and for the sustainable development of the country. “We want the communities of Cesar and Magdalena to be increasingly less vulnerable, and for their development to not depend mainly on mining. We want to act in a way that shares in the responsibility for the region’s progress.”

Learn more about Drummond Ltd.’s commitment to sustainability at: https://issuu.com/drummondltd/docs/informe_sostenibilidad_dltd_2019?fr=sN2Q5YTE5NDM2ODk