Minera Escondida Limitada (MEL) in northern Chile is the world’s largest supplier of copper. BHP Billiton is the major shareholder and operator of the mine, which is located in the remote Atacama Desert in the Second Region, 170 kilometres south-east of the coastal city of Antofagasta. Copper concentrate is carried by a slurry pipeline to a company-built port at Coloso, 14 kilometres south of Antofagasta. MEL has recognised that its ability to operate is, in part, dependent on its health, safety, environment and community (HSEC) performance, as managed through highly demanding international standards, the scope of which covers goods and service suppliers. Since 2003, MEL has been promoting the organisation and participation of these companies in a Supplier Development Program aimed at helping them gain ISO 14001 certification.
Having achieved ISO 14001 certification for the environmental management systems at all its operations, during 2003 MEL collaborated in a Supplier Development Program to support the certification of five of its service provider companies. As a result, the companies have developed and implemented their own environmental management systems, enhanced their productivity and improved control of associated environmental risks.
Following certification, Patricio Mora, General Manager of SALFA Arrendadora de Vehiculos Ltda, a supplier to MEL, said his company participated in the initiative because, ‘We want to be leading actors rather than simple spectators in environmental issues’. Andrés Jensen, General Manager of Jensen Ingeniería Ltda, agreed, stating, ‘If we can avoid harming the environment we ought to do it’. Noting that the benefits of the certification process extended to employee behaviour, Patricio Mora added, ‘This enterprise has changed since certification; we are not the same any more. People are relating in a different way’.
Supplier Development Program with an HSEC focus
Following the success of the initial collaboration, MEL has extended the initiative to its other supplier companies, through a second Supplier Development Program focusing on HSEC issues. The program, which is being supported and administered by the Chilean Production Development Corporation (CORFO) for the Second Region, encourages the companies to foster a Zero Harm culture, which is a priority for MEL. For that purpose, MEL, among other activities, is providing the participating companies with training to develop internal audit procedures, HSEC risk evaluation methodologies, instruction manuals and processes for coordinating with relevant government entities.
Currently, 36 of MEL’s supplier companies are taking part in the Supplier Development Program with the objective of implementing a comprehensive HSEC management system based on the 15 BHP Billiton HSEC Management Standards. These cover areas such as Leadership and Accountability; Risk and Change Management; Planning, Goals and Targets; and Product Stewardship. Of the 36 companies, ten are small and medium-size companies and the remainder are large enterprises. Implementation of an HSEC management system will help these companies to prepare for ISO 14001/OHSAS 18001 certification during 2004.
The Supplier Development Program, developed through the joint efforts of CORFO, Corporación de Desarrollo Productivo de Antofagasta (Second Region Chile) and MEL, is aimed at significantly improving HSEC risk control at the participating companies, which in turn will provide benefits for the local community and for MEL, particularly in helping to minimise HSEC incidents and liabilities.