Minera San Cristóbal S.A. is publishing its Sustainability Report for the eighth consecutive year. In 2022, it invested more than USD 2.2 million in measures to reduce water use and waste generation, thus mitigating impacts on local biodiversity
La Paz, September 2023 – Despite internal and external setbacks and challenges, Minera San Cristóbal (MSC) contributed USD 402.1 million in taxes, royalties and surface rental fees in 2022. This is stated in its 2022 Sustainability Report entitled “Overcoming Challenges”, in which information is shared on the company’s performance in the economic, social and environmental spheres.
MSC is the largest open-pit mining operation in Bolivia that operates under a mining contract signed with the State; it focuses on safe operations, state-of-the-art technology, social commitment and respect for the environment.
In 2022 it produced 327,000 tonnes of zinc-silver concentrate and 67,000 tonnes of lead-silver concentrate. In terms of its financial performance, concentrate sales decreased by 23% (USD 194 million) compared to the previous year, due to a decline of 138% (USD 269 million) in the volume of concentrate sold. This was largely due to a fire at the port of Mejillones, Chile, in the last quarter of 2022.
However, favorable zinc prices in the reporting year partially offset the decline in sales. The result was a 38% increase (USD 75 million) in net revenues. In addition, last year no fines or monetary penalties for non-compliance with laws or regulations were imposed on the company.
“The net result of the fiscal year was negative in USD 21 million, mainly due to the payment of taxes concerning previous years, the devaluation of fixed assets, the decrease in concentrate sales and the increase in production costs. The cost of supplies went up as a result of international conflicts, supply chain bottlenecks and inflation,” points out Dave Assels, President of the company, in his introductory message to the document.
Positive Impact
In 2022, MSC took steps to reduce its water use and waste generation, thereby mitigating impacts on local biodiversity. An amount of more than USD 2.2 million was invested in, primarily, civil works for mine drainage, watering of roads (mine and camp), cleaning and maintenance of dams and stripping of topsoil (top layer of fertile soil, rich in minerals and nutrients) in Wila Khara; as well as in the rehabilitation, revegetation and maintenance of areas disturbed by the mining activity, both in and outside the area of operations.
The mining company attributes its achievements to its workforce of 1,322 workers distributed in the camp and its offices in Potosí and La Paz, as well as to its 1,501 contractors. It applies voluntary international standards, including ISO 45001, OSHA, MSHA and ACGIH, ensuring high standards in occupational health and safety. Moreover, it fosters a culture of prevention and takes control measures to maintain a safe working environment for its direct employees, contractors and visitors.
MSC is part of the International Council on Mining and Metals (ICMM), an international organization devoted to promoting principled, safe, fair and sustainable mining. Accordingly, since 2018, it has complemented its Management System with the ICMM principles and position statements, which are in turn aligned with the Sustainable Development Goals (SDGs) of the United Nations.
At the end of last year, the Bolivian-German Chamber of Commerce and Industry and ICR Systems & Management granted the company a recognition for “Best Practice in the Sustainability Reporting Process” according to the Global Reporting Initiative (GRI). As a matter of fact, its 2022 Sustainability Report was prepared according to GRI standards and its Mining and Metals Sector Supplement.
Development: USD 2.9 million for the communities
As a mining company with formal and legal operations in the country, MSC complies with Bolivian legislation on the rights of indigenous peoples and supports the enhancement of productive development projects in the region. The 2022 Sustainability Report highlights its ongoing commitment to supporting projects in the field of community development, education, health and infrastructure.
Its investments in the communities surrounding the mining operation totaled USD 2.9 million. Last year it completed several major projects such as the construction and commissioning of the 115 kilowatt outlet bay and the medium voltage installations at the Litio substation. This project had a significant socioeconomic impact on rural electrification in Lípez.
It also signed conciliation agreements with the communities of San Cristóbal, Culpina K, Río Grande, Santiago K and Colcha K regarding the use of land for the railway line, which will be extended for an additional 20 years. It also further optimized the coordination with the community of Culpina K in the Environmental Commission aimed at monitoring and following up the activities related to management of the tailings deposit and at controlling environmental factors.
The Quinoa Project continued with its training and technical assistance as regards the application of certification-oriented techniques and practices; the Camelid Project increased its production of llama meat derivatives and expanded its market; and in the Vicuña Project, more animals were captured and shorn, obtaining more raw fiber compared to the year before.
The Tourism Project strengthened the business units and sponsored their participation in national fairs; and through the Education Project, 43 young people graduated from humanistic technical secondary school and computer equipment was delivered to one school.
About Minera San Cristóbal S.A.
Located in the province of Nor Lípez of the department of Potosí, the leading mining company in Bolivia conducts its operations with a focus on promoting sustainable development. Its operation is focused on the production of zinc-silver and lead-silver mineral concentrates.
It combines the use of innovative technology, constant further training of its workers, and the protection of health and safety, with environmental preservation and development of the communities. It strives to ensure a positive economic, social and environmental impact, and adheres to high standards of corporate governance.
The company will continue to work in partnership with its stakeholders to constantly improve its performance and contribute to sustainable development of the region, the department of Potosí and the country, where it has been developing a new way of mining for over 15 years, aimed at building a better future for all.
Access the Sustainability Report at: https://www.minerasancristobal.com/reportedesostenibilidad/?lang=EN