Chilean National Copper Corporation
Headquarters
Orphans 1270
Box 150-D
Santiago, Chile
CODELCO
PD-146/2022
Santiago, December 02, 2022
Mrs. Solange Berstein Jáuregui
President
Financial Market Commission
Av. Libertador Bernardo O’Higgins 1449
Present
Ref.: ESSENTIAL FACT. Codelco Chile,
Registration of Securities Registry No. 785.
From our consideration:
In accordance with the provisions of Law No. 18,045 and General Standard No. 30 of the Commission for the Financial Market, I inform you, as an essential fact, that today, Codelco has signed a Collaboration Agreement with the Office of the Comptroller General of the Republic that will consolidate and increase progress in probity. in addition to resolving the legal divergence that both entities have maintained in Justice for five years.
The safeguarding of the principle of probity, the status of a State enterprise and the commercial nature of the operations of the Corporation that develops in a competitive market, are the basis of the agreement signed between the entities and formalized by Jorge Bermúdez, Comptroller General of the Republic, and Máximo Pacheco, Chairman of the Board of Directors of Codelco.
Among the main aspects stipulated, the controlling agency recognizes the significant progress made by the company since the issuance of Final Report No. 900 of 2016, regarding its contracting mechanisms and the modifications in internal regulations, which has allowed to reinforce and raise the standard of probity in its different processes.
Among the terms of the agreement, Codelco committed to comply with a series of requirements for the signing of contracts with related parties, in qualified cases. The requirements include the existence of an obvious benefit for Codelco: that the operations conform to the conditions of equity that usually exist in the market, that the well-founded approval of the board explains these requirements and that the background of these operations be deposited in a repository that will be created for this purpose.
The repository in which this information will be recorded will be confidential. Cochilco and the CGR will have expeditious access to it, through their specially mandated inspectors, when they exercise their powers under the law.
On the other hand, the Comptroller’s Office will collaborate with Codelco in the verification of the declarations of interests, assets and kinship of its directors and senior executives, so that the company activates the pertinent corrective measures.
Finally, the conditions of this agreement allowed both institutions to agree to the presentation of a withdrawal before the Court of Appeals of Santiago, to finish the judicial case that they have maintained since 2017, attaching in said presentation a copy of the signed agreement.
Yours faithfully
Máximo Pacheco M.
Chairman of the Board
Link to file in CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=3ee4d08809e8b149914b06dce05e0a91VFdwQmVVMXFSWGxOUkZFeFQxUlZNRTFuUFQwPQ==&secuencia=-1&t=1682376108
