• Technological innovation, energy efficiency, diversification of the business, and updated best practices are some of the new developments announced by the report.
• The report was developed according to the GRI’s G4 Sustainability Reporting Guidelines and verified by the firm BSD Consulting.

2013-2014 Sustainability Report

This Sustainability Report is a testament to our commitment to community development and responsible mining, and to informing our stakeholders about the challenges that we face every day, our current performance and the proposed objectives for the sustainable future of the company in Colombia.

Reflecting the company’s commitment to all of its stakeholders and to responsible mining that promotes development, Drummond Ltd. has presented its sustainability report for the years 2013 and 2014. It analyzes in detail the company’s performance related to the environment, industrial safety, human resources, and its social and economic contribution.

According to the President of Drummond Ltd., José Miguel Linares, “This report reflects our conviction about the importance of reporting the challenges we face on a daily basis, the company’s current performance, and our objectives related to the Company’s sustainable future in Colombia.” He also indicated that this is the first time this document has been prepared using the GRI G4 Sustainability Reporting Guidelines and verified by BSD Consulting, which also verified that the document complies with the Sector Guidelines for Mining and Metals.

The document describes developments such as the construction of the direct ship loading system and the largest cargo port in Latin America, modern infrastructure that has the capacity for 60 million tons a year and required an investment of 412 million dollars.

Drummond also implemented a new “highwall mining” system to extract coal remaining in the high wall, a technological innovation that in 2014 permitted additional production of 715,379 tons of coal.

In terms of economic contributions, despite the 53-day strike in 2013 and the cease in port operations during the first three months of 2014, Drummond Ltd. paid COP506.5 billion in royalties in 2013 and COP533 billion in 2014

Relative to its community work, Drummond reports on its efforts in education and culture, healthcare and nutrition, promotion of recreation and sports, and infrastructure maintenance, based on commitments made in 2012 to towns in Cesar and Magdalena. In total, the company invested close to COP8.5 billion in programs targeting community development in 2013 and 2014.

One of the most outstanding educational projects was the program for school improvements and remodeling, which in 2013 and 2014 benefited close to 18,000 children and young people in the area of influence in Cesar and Magdalena. In addition, 75 high school graduates from low-income families have received scholarships for college or technical schools, plus a subsidy for living expenses, through the La Loma and El Descanso scholarship programs.

Relative to healthcare and nutrition, in 2014 Drummond Ltd. invested COP86 million to remodel and equip a pediatrics wing in the San Cristóbal Hospital, providing coverage for more than 1000 inhabitants. In addition, the electric power system at the San Andrés Hospital was upgraded, contributions were made to the La Loma water main, and equipment was provided for the San José y Luisa Santiaga Márquez Hospital. The total investment in all programs in this area was COP470.9 million.

Investment projects in infrastructure maintenance included paving 2,600 meters of roads in La Loma, with an investment of 4.1 million pesos, and maintaining urban and rural roadways in the towns of Bosconia, El Paso, Chiriguaná, Fundación, Agustín Codazzi, La Jagua de Ibirico and Becerril. Drummond Ltd. also reports the diversification of its business with the exploration of unconventional hydrocarbons such as coal bed methane gas obtained from coal seams.

In the area of the environment, the company’s report highlights the rehabilitation of 758 hectares, and the rescue, preservation, and relocation of wildlife entering the operation. It also describes progress made and results produced by its strategies for taking care of the air, using water efficiently, and properly disposing of materials and waste products.

It highlights setting aside 4,666 hectares as a conservation measure to improve water management and recover and protect forests, along with planting 140 hectares with more than 150 native species, some of which are highly threatened

As part of its commitment to transparency in its operations, Drummond’s document also reports lessons learned from incidents that occurred in the 2013 – 2014 period, as well as updates to its policies for communications, human rights, resettlement, human resources, salaries, environmental sustainability, and other matters.

“In an economic context that is increasingly difficult due to the fall in the international price of coal and increased restrictions on thermal energy, this sustainability report reiterates our commitment to Colombia and to responsible mining that produces development and value not only for our employees and their families, but also for communities, our clients and providers, and the country’s economy,” concluded Drummond’s president.

See the report at:

http://www.drummondltd.com/news-publications/sustainability-reports/?lang=en