Driving Socio-Economic Development in Tarapacá and the Country
Contribution to National and Tarapacá GDP
Effective operational and financial management not only benefits the company but also generates positive impacts for the country and the region, both directly and indirectly, due to the multiplier effect of mining activities on the rest of the economy.
In 2022, Collahuasi contributed USD 3.442 billion to the country’s GDP. This contribution accounts for 1.25% of the national total, more than double what it was three years ago. Additionally, the company’s contribution represented 56.74% of Tarapacá’s GDP in 2022, nearly doubling the percentage from 2019. Thus, the total economic contribution in Chile (both direct and indirect) reached USD 5.748 billion in 2022, which is 2.09% of the national GDP, significantly higher than the 1.23% in 2019.
Supplier Development
The primary goal of supplier management is to ensure the availability of the goods and services necessary for value creation in the company and the communities within appropriate timelines, efficiently and sustainably. This management is conducted according to the principles defined in our contractual policy, extending to our suppliers and contractors the same requirements we impose on ourselves in areas such as safety, occupational health, environmental protection, quality, human resource management, community engagement, and ethics.
We also strive to ensure that contractual relationships develop in a context characterized by mutual respect, proper and transparent handling of potential conflicts of interest, and non-discrimination in access to information and contract awards.
Since October 2021, we have also incorporated circularity and sustainability attributes as evaluation criteria in all our bidding processes for services and goods purchases. This criterion accounts for 20% of the total offer weighting, broken down as follows:
- 8% weighting for the hierarchical incorporation of the 5Rs: refuse, reduce, repair, remanufacture, and recycle.
- 8% weighting for the regional development variable, aimed at favoring local and mixed companies that hire labor and procure supplies from the region. In 2022, a percentage for women and people with disabilities in the workforce was added.
- 4% weighting for the variable of CO2 emissions reduction, which also gives an advantage to local companies, as their logistical carbon footprint is smaller.
In terms of results, from October 2021 to December 2022, 88% of the amounts awarded in contracts incorporated the circularity attribute. In terms of the number of contracts, this corresponds to 63% of the total.
