Ciénaga, May 16th, 2016

Drummond would like to inform that on May 14 and 15, 2016, the company signed collective agreements with union organizations Sintramienergética, Sintradrummond, Agretritrenes, and Sintramineros.

These agreements constitute an integral solution that takes into account many of the concerns conveyed by the workers and the unions´ negotiating teams. We want to take this opportunity to commend the negotiating teams from the four union organizations for approaching this process with an open mind and a constructive attitude, without which these results would not have been possible.

The collective agreements can be summarized as follows:

• Term of the collective bargaining agreements: 3 years
• Wage increase:
  • 1st year: 7%
  • 2^nd year: CPI of 2016 + 0.23
  • 3rd year: CPI of 2017 + 0.50%

The conventions also include adjustments and improvements in other benefits such as the health coverage policy, education allowances and scholarships, and housing rotary funds, among others.

Drummond is pleased that the signing of these collective agreements, which will govern the contracts of the workers for the next three years, will allow us to continue to work together through this difficult period of the international coal market.

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FOR MORE INFORMATION

Pablo Urrutia – Mobile 57 (318) 735-7445, Tel. 57 (1) 587-1000 Ext. 5809

Margarita Saade – Mobile 57 (316) 312-4180, Tel. 57 (5) 571-9300 Ext. 8581

Wilma Calderón – Mobile 57 (310) 287-6085, Tel. 57 (1) 611-5014