Bogotá, August 3, 2022
* 144 intervened hectares were rehabilitated at the Pribbenow and El Descanso mines.
* 10,969 jobs were created last year, both direct, and also indirect through its contractors.
In its Sustainability Report 2021, Drummond Ltd. confirmed once again its commitment to weaving social fabric in the country, describing the positive impact of its operations in the Departments of Cesar and Magdalena. With figures and testimonies that reveal a tangible contribution to the Sustainable Development Goals (SDG), and alignment with work in favor of the environment, society, and corporate governance, the company offers a detailed analysis of its performance, and describes its role in the energy transition.
“These last two years have represented a challenge for the Company and the world in general. Nevertheless, the effort and enormous responsibility with which our entire workforce decided to take on this challenge, has positioned Drummond for the sixth consecutive time as the main producer and exporter of Colombian coal. Our commitment is with Colombia, as well as with customers in more than 20 countries around the world. In the energy transition process, our mineral will also continue to play a key role. It is for this reason that we will continue working with our employees, contractors and communities, ratifying our commitment to responsible and sustainable mining.” Expressed the President of Drummond Ltd., Jose Miguel Linares. Press Release
Relative to communities and employees, the Report specifies that a budget of more than 68 billion pesos was executed in 2021 in social projects. In terms of beneficiaries, more than 183 local farmers were involved in the supply program, achieving 536 million pesos in income by the close of 2021, while 40 families in Cesar participated in food security projects. In addition, 186 high school graduates received college scholarships (and stipends for expenses), and Drummond Ltd. helped launch 1,515 new readers in Cesar through its literacy program.
The report also shows how more than 2.2 billion pesos were invested in 10 new institutional and community infrastructure projects, and more than 270 children and youth participated in programs to build values and reweave the social fabric.
In 2021, close to 99% of the 5,053 employees benefited from the company’s extralegal compensation and benefits. In addition, 177 employees received college scholarships. Drummond also provided 124,786 hours of education and training as part of employee development.
“For Drummond, it is essential that all business units meet the highest quality and sustainability standards. Effectively executing our ESG strategy requires understanding of industry developments and global dynamics, and delivering on stakeholder expectations, all while honoring our promise to incorporate best practices in environmental, social, and corporate governance (ESG) into our platform. As we leverage available opportunities, the success of the Company will be reflected in the regions where we operate with responsible and sustainable methods,” stated Carolina Riaño, Sr. VP & Chief Sustainability Officer (CSO).
In order to strengthen our commitment, in 2021 the company joined the United Nations Global Compact, adopting this initiative based on its commitment to promote the 10 universally-accepted principles for fighting corruption, and to incorporate best practices in the areas of human rights, labor rights, and the environment. Therefore, Drummond contributes to the global commitment to strengthen the mining sector through actions that confirm the work of these companies toward responsible and sustainable mining.
In terms of due diligence in human rights, by the close of 2021, 89.09% of all significant investment contracts and agreements signed by Drummond Ltd. had clauses guaranteeing the protection of human rights. In addition, 334 employees were trained in human rights policies and procedures and other aspects. Plus, three human rights conversations were organized in Valledupar and Santa Marta with 145 community members and local authorities, as well as the company’s contractors and suppliers.
In the area of occupational health and safety, during 2021 the company was re-certified under the ISO 45001:2018 standard initially obtained in the year 2020, reaffirming its commitment to responsible and sustainable operations under a management system providing safe and healthy conditions at work.
Relative to environmental sustainability, Drummond Ltd. made contributions to SDG 6, 12 and 15, with actions such as meeting 100% of the goals for its program to save and efficiently use water, the recovery of 85% of all its waste products (nonhazardous), planting 63,839 trees at the operations, and the recovery of 144 hectares that had been intervened in the mining operations. It was also the company in the mining sector that made the greatest contribution to the national government’s #SembrarNosUne program, planting more than 543,800 trees.
The new geopolitical and economic context the world is facing has also put in evidence the importance of energy security, in which the production of steam coal will continue to be a fundamental component. For that reason, the company is getting prepared for the energy transition. In 2021 it began implementating the ISO 14064-1 standard for measuring its carbon footprint. In addition, through Drummond Energy, it began developing solar energy projects in partnership with the French company EDF Renewables, an important world player in the generation of renewable energy.
“In addition to its work in the social, environmental, corporate governance, and human rights arenas, from the start of Drummond’s operations in Colombia, the company has produced and exported 532.6 million tons of coal. These exports represent payments to the Nation in the amount of 14.5 trillion Colombian pesos in royalties and compensations, and 10 trillion Colombian pesos in taxes, fees, and contributions. That’s Drummond’s positive impact: mining that is environmentally sustainable, socially responsible, and economically viable,” concluded Linares.
Learn all about Drummond Ltd.’s work during 2021, and its social, environmental, and economic contribution to energy for the future: