Indigenous Peoples and Mining in Chile: Perspectives from the Industry Amparo Cornejo, Director Corporate Affairs and Social Responsibility, Teck Chile

Agenda We are Teck Our Approach to Sustainability Chilean Context Mining Projects and Indigenous Consultation Projects in Chile Originarias: UN Women project

Canada’s Largest Diversified Resource Company # 1 Producer of steelmaking coal in North America # 2 Seaborne exporter of steelmaking coal globally Top ten copper miner in the Americas #3 zinc miner in the world Building an energy business Implementing a comprehensive sustainability strategy Safety is a core value

Teck’s Operations and Projects 10,000 employees primarily in the Americas Focus on world-class, long-life (decades) assets in stable jurisdictions that operate through multiple price cycles Chile: Two operations, two major development projects and various exploration efforts

Our Approach to Sustainability

Sustainability Leadership Best 50 Corporate Citizens in Canada 2016 On the Dow Jones Sustainability World Index seven years in a row Top 50 Socially Responsible Corporations in Canada Listed on FTSE4Good Index in 2015

Relationships with Indigenous Peoples A long and proud history of working with Indigenous peoples whose traditional territories/lands we are operating within We actively seek engagement with Indigenous Peoples at every stage of mineral development, including: Exploration Operation Closure and Reclamation We negotiated formal agreements to create mutual, lasting benefits We support programs to advance capacity building

Teck’s Indigenous Peoples Policy Build respectful relationships through early, inclusive dialogue and collaborative processes Work to achieve free, prior and informed consent Work with IPs to achieve self-defined community goals that provide lasting benefits

Teck’s Approach to Agreements Build trust, mutual respect, cooperation and open communication of interests and concerns Can create opportunities for: Employment and Training Contracting Environmental stewardship Reduce business risk strengthen certainty for all parties

Chilean Context

Chilean Context Poverty 29% in 2006 11.7% in 2016 Mining contribution to GDP 16% in 2010 7.7% in 2016 Mining Projects 12 Currently under review Representing ~US$13 billion Participation in Mining Total: 204,004 Men 91.1% Women 8.9%

Indigenous Context in Chile The Indigenous Act (1993) recognized the existence of 9 Indigenous Peoples in Chile’s territory Indigenous Peoples comprise 9.1% (1.6 million) of the population 74% of the Indigenous population live in urban areas, 26% in rural settings 23% live below the poverty line (income-based)

Mining Projects and Indigenous Consultation

Indigenous Consultation Process International Labour Organization Convention 169: significant impact on the consultation processes with Indigenous Peoples More demanding context for project approvals Perception vs technical aspects of environmental evaluation Government is conducting more detailed analyses of social impacts and communities

Indigenous Consultation Process Indigenous communities envision ICP as a unique window for negotiation Creation of new indigenous communities Indigenous communities, companies and the environmental authority are rapidly gaining experience and skill in the ICP, but we are all in a learning phase

Our Projects in Chile

Quebrada Blanca Phase 2 Project Overview: 25-year mine life. Expected annual production: 275,000 tonnes copper; 7,700 tonnes molybdenum* Capital estimate: US$4.7 billion Social and Environmental: ~11,000 jobs during construction Opportunities for local hiring & procurement Desalinated seawater use during operation Progress: Progressing through environmental assessment process * First 5 years

QB2 Indigenous Consultation Process Indigenous Consultation Process to start in March 2017 Engagement with over 20 communities - Indigenous groups - Coastal communities / fishermen Active presence of indigenous and non indigenous people inside organizations or settlements Agreements consider training, employment and procurement opportunities Challenge/ opportunity : To establish long term engagement beyond Indigenous Consultation Process

NuevaUnión Project Teck and Goldcorp 50/50 JV Life of mine 32 years 190,000 tons of copper and 315,000 ounces of gold per year over the first 10 years Pre-feasibility study to be completed in the second half of 2017 100% desalt water during the operation Local employment opportunities in the Province of Huasco

NuevaUnión Project Reduced environmental footprint Participatory approach More than 50 Diaguita communities and associations Huasco Altinos agricultural community located within the area of interest of the project Early community participation process with the local indigenous and non-indigenous communities started in 2016 Opportunity: To establish in Chile a new engagement model of Indigenous and community participation from early project stages

Our Initiatives

Teck & UN Women Partnership Promoting the empowerment, leadership and the economic and social participation of indigenous women from the north of Chile

Outlook Communities, government and industry are all working to ensure environmental approval systems are robust and include rigorous indigenous consultation processes (consistent with ILO 169) We have the opportunity to bring Canadian experience to Chile and negotiate formal agreements to create mutual, lasting benefits and advance capacity building Programs like Originarias represent our long term commitment to work with Indigenous women (two vulnerable groups)

Thank You