TIDMANTO
RNS Number : 8640I
Antofagasta PLC
06 April 2020
NEWS RELEASE, 6 APRIL 2020
LOS PELAMBRES EXPANSION PROJECT WILL REMAIN ON CARE AND
MAINTENANCE UNTIL FURTHER NOTICE
Further to the announcement made of 2 April, Antofagasta
Minerals SA today announced further details on the suspension of
the Los Pelambres Expansion project, referred to in Chile as the
INCO project. A translation of the announcement is as follows:
"ANTOFAGASTA MINERALS SUSPENDS INCO PROJECT CONTRACTING
COMPANIES AGREEMENTS
-- This action, which will be periodically reviewed based on the
evolution of the emergency, will in principle apply for an
estimated maximum period of 120 days and, in most cases, does not
imply the contract will be terminated. "This is a temporary
suspension that has been taken as it is not possible to continue
with the construction of the project as originally planned and is
only for the duration of the emergency, as we hope to resume work
as soon as possible," explained Francisco Walther, Vice President
of Projects at Antofagasta Minerals.
-- In the next few days, the terms of this decision will be
reviewed with each of the contracting companies, with the central
aim to maintain a minimum monthly salary for each workers' of at
least Ch$500,000(1) , in addition to what the worker is entitled to
in accordance with the law. "We all must make an effort so that the
cost of this crisis affects the project's workers as little as
possible," said Walther.
Salamanca, April 4, 2020
As it is not possible to continue working normally as a result
of the health emergency caused by the coronavirus, Antofagasta
Minerals has decided to temporarily suspend the contracts with most
of the companies building the INCO project of Minera Los
Pelambres.
This decision makes it possible to strengthen general hygiene
and social isolation measures, thus protecting the health of both
workers and communities.
The suspension, which in principle will have a maximum duration
of up to 120 days, should in most cases not lead to the termination
of the contracts. "We want to maintain a contractual relationship
with most of the contractor companies with which we are working
today, but we must accept that, given the current conditions, many
cannot do the work for which they are contracted," explained
Francisco Walther, Vice President of Projects at Antofagasta
Minerals.
For this reason, instead of terminating contracts as other
companies have done, the Company has proposed this course of
action, which seeks to build solutions and tries to avoid such an
outcome. "It is a temporary suspension for the duration of this
emergency, as we hope to resume work as soon as possible, hopefully
well before the end of the initially defined timeframe," Walther
said.
The terms that will apply to contractor companies during this
suspension period will be agreed in the coming days. However, each
case will be reviewed individually, seeking to maintain, whenever
possible, each workers' minimum monthly income equal to
Ch$500,000(1) , and avoiding the termination of their employment.
Additionally, if legally applicable, this benefit would be in
addition to any benefits that may eventually receive under the
law.
"We must all try to reduce the cost of this crisis on the INCO
project's contractor workers as much as possible. Therefore, we are
contributing so that, whenever possible, workers from the INCO
project are not left without an income in these difficult times,"
said Walther.
At los Pelambres the workforce reductions of its regular
operations that have already been implemented(2) are being
maintained, with the aim of ensuring the necessary hygienic
conditions to protect the health of those who work on site and in
the communities. In each case, the company will agree the
contractual conditions with each of the contract companies
involved."
The original announcement by Antofagasta Minerals in Spanish can
be found at www.aminerals.cl/comunicaciones/noticias/ .
1 This is the minimum wage set by Antofagasta Minerals on 1
January 2020 for all its on-site contractors and is approximately
two-thirds higher than the national minimum wage.
2 As previously announced on 20 March 2020 and 2 April 2020,
workforce numbers at Los Pelambres have been reduced by
approximately 50% with critical employees remaining at work to
ensure production continues largely unaffected.
Investors - London Media - London
Andrew Lindsay alindsay@antofagasta.co.uk Carole Cable antofagasta@brunswickgroup.com
Telephone +44 20 7808 0988 Telephone
+44 20 7404 5959
Andres Vergara avergara@antofagasta.co.uk Will Medvei antofagasta@brunswickgroup.com
Telephone +44 20 7808 0988 Telephone +44 20 7404 5959
Media - Santiago
Pablo Orozco porozco@aminerals.cl
Paola Raffo praffo.van@aminerals.cl
Telephone +56 2 2798 7000
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