CHAPTER 2

Sustainable Development

We promote principled mining focused on social, environmental, and economic responsibility. Sustainable well-being is integral to our corporate strategy.

Organizational structure and relationship with the management system

The documentary structure, responsibilities, and dissemination of commitments in various sustainability areas are specified in the components and levels of the Management System:

List of material topics

The Material Topics represent the company's most significant impacts on the economy, the environment and people, including human rights impacts. Our Material Topics are:

KEY TOPICS
MATERIAL TOPIC
FUTURE OF MSC
• Prolonging the life of the company.
• Closure plan.
• Transition to new shareholders.
Operation of the mine
• Efficiency and productivity.
• Concentrate management.
• Health and safety in operations.
Employment
• Diversity, inclusion, and non-discrimination.
• Relationship with workers.
• Working conditions.
• Supplier / contractor management.
• Availability of local employment.
KEY TOPICS
MATERIAL TOPIC
COMMUNITY
• Contribution to community resilience.
• Engagement with new generations in communities.
• Fulfillment of commitments to the community.
HUMAN RIGHTS
• Human rights.
Environment
• Water management for communities.
• Water management in operations.
• Wila Khara management (tailings pond).
• Climate change.
• Waste management.
• Biodiversity / protected areas.
• Energy management in operations.

Our sustainability performance

Below are the 2023 objectives and their achievement:

Average t of concentrate produced per day

TARGET

1,146

2023

1,007

% execution of the exploration program

TARGET

100%

2023

100%

Comprehensive risk management

TARGET

< = 3.00

2023

2.04

Work-related fatalities

TARGET

0

2023

0

Occupational diseases

TARGET

0

2023

0

Total Recordable Frequency Rate - TRFR MSC

TARGET

1.00

2023

0.18

Total Recordable Frequency Rate - TRFR Contractors

TARGET

1.00

2023

0.35

Compliance with quality
standards in the local health network

TARGET

98%

2023

99%

Compliance with quality
standards in the external health network

TARGET

60%

2023

62%

Compliance with health care,
prevention and promotion programs

TARGET

98%

2023

96.20%

Human Rights violations

TARGET

0

2023

0

Social License to Operate (annual average)

TARGET

3.50

2023

3.73

General compliance of
agreements with communities

TARGET

90%

2023

91.37%

l/t treated in diesel consumption

TARGET

<2.01

2023

2.43

l/t treated in gasoline consumption

TARGET

<0.031

2023

0.036

kWh/t processed

TARGET

19.91

2023

21.10

Environmental events to be reported externally

TARGET

0

2023

0

m3/day average of industrial water extracted from wells

TARGET

39,000

2023

26,973

m3/day of industrial water from wells used per t treated

TARGET

<0.60

2023

0.56