Antofagasta's ESG and Profitability Outlook Improves

Despite past opposition to operations and significant environmental fines, Antofagasta’s strong ESG policies and implementation are beginning to pay off

Sustainalytics 10 April, 2018 | 8:22AM
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Antofagasta’s (ANTO) revenue reliance on Chilean mines exposes it to water and community relations risks, as local farmers and communities have been affected increasingly by drought. Antofagasta has taken several steps towards mitigating water risks associated with its operations. It pioneered the use of thickened tailings technology to reduce water consumption and lower environmental impacts and risks.

In 2016, seawater accounted for 48% of its overall operational water use, while its reuse rates ranged from 71% to 94%. Some upcoming projects, including expansions at its Centinela and Los Pelambres mines, will make exclusive use of seawater. This approach supports cost-efficient regulatory compliance and benefits to local communities.

However, the firm has suffered some stakeholder controversies related to water use and community relations. Notably, its Los Pelambres mine is home to El Mauro, the biggest tailings dam in Latin America. The dam has been criticised by local stakeholders for diverting and contaminating local water supplies.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Antofagasta PLC1,407.50 GBX-1.81

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