March 13, 2017

Cerrejón Reports

Cerrejón has learned of the ruling of the Constitutional Court on the tutela action brought by the community of Media Luna 2 related to a project to undertake further engineering works in Puerto Bolívar, and we respect the legal decision.

Since 2010, Cerrejón has included three engineering works as part of the project at the Puerto Bolívar operations. The works consisted in increasing the dredging volume of the navigable channel, building a tugboat dock, and expanding the capacity of the water desalination plant.

In 2012, Cerrejón sent a formal communication to the Ministry of the Interior requesting certification of the presence of ethnic communities in the project’s area of direct influence. The Ministry studied the case and, in 2013, it certified there were no communities that might be impacted by the engineering works. A copy of this certification was sent to the ANLA to be taken into account as part of the permitting process.

The community of Media Luna 2 decided to bring a tutela action requesting a prior consultation. This claim was granted in the first instance by the Sectional Council of the Judiciary of La Guajira and later revoked in the second instance by the High Council of the Judiciary.

In the review of the verdict, the Constitutional Court made the decision to safeguard the right to prior consultation of the community of Media Luna 2 on the three port engineering works and to declare invalid the ANLA resolution whereby these works were authorized until the consultation process takes place.

Furthermore, the ANLA was ordered to review the company’s Environmental Management Plan and Cerrejón was ordered to prepare a mitigation plan.

Although the current market conditions (as we notified the ANLA in 2015) do not allow us to undertake additional engineering works in Puerto Bolívar, Cerrejón’s priority is to continuously improve our socio-environmental management. Therefore, we decided to execute one part of the water desalination plant expansion (authorized by Resolution 428 of 2014), which will allow us to improve the environmental impact mitigation controls. The company is at the disposal of the Ministry of the Interior to undertake the corresponding prior consultation with the community of Media Luna 2 concerning this engineering work.

Cerrejón’s responsible environmental performance in Puerto Bolívar is what allows us to co-exist beside the Bahía Portete National Nature Park, declared a reserve zone in 2014. Socially, the company has made efforts to maintain good engagement and provide Media Luna with support. In fact, in recent years we have invested over USD 1 million in housing, water distribution, healthcare, educational reinforcement, use of free time, employability, and training in production activities.

Since the start of our operations over 30 years ago, Cerrejón has operated in accordance with the highest social and environmental standards, which has garnered us various relevant acknowledgements, such as the 2016 BIBO Award from El Espectador and the WWF in the category of Sustainable Development, second place in the 2015 Caracol Award for Environmental Stewardship, and the 2014 Portafolio Award in the category of Environmental Stewardship.

In a recent ranking by the MERCO reputation monitor, Cerrejón has received recognition as one of the most solid and effective companies in Colombia performing social investment. The list was based on work by the Department of Social Prosperity of Colombia and the World Bank, wich ranks Cerrejón 12 th out of the 100 companies noted as the most responsible in the country.

Cerrejón always endeavours to carry out informed and constructive dialogue with our various stakeholders.

We also hold to our commitment to respect court rulings and abide by Colombian law, making responsible use of the resources that the legal system provides us.