Chilean National Copper Corporation
Headquarters
Orphans 1270
Box 150-D
O Santiago, Chile
CODELCO
PE-049/2023
Santiago, May 02, 2023.
Mrs. Solange Berstein Jáuregui
President
Financial Market Commission
Av. Libertador Bernardo O’Higgins 1449
Present
Ref.: ESSENTIAL FACT.
Codelco Chile, Registration Registry of Values N2 785.
From our consideration:
In accordance with the provisions of Law No. 18.045 and General Rule No. 30 of the Commission for the Financial Market, I comply in informing you, as an essential fact, that, after the promulgation and publication of Law No. 21.546, which amended Law No. 19.993, the Board of Directors of Codelco authorized the temporary closure of the Ventanas Division Foundry, For this, it must have the prior authorization of SERNAGEOMIN, and also decided to advance in its definitive closure, as authorized by the aforementioned law.
Codelco is convinced that the operating conditions of the Ventanas Division Smelter in a saturated industrial pole and in a bay with adverse atmospheric conditions, presents high risks of generating socio-environmental events that impact the surrounding communities. All this, added to the high level of uncertainty generated for the business by the instability of its operation, is the basis for the decision to temporarily close the operation of the Ventanas Division Foundry and advance in its definitive closure.
The decision of temporary closure, in accordance with the nature of the Operation and the legislation in force, must be adopted beforehand, and then advance to the definitive closure. This first step implies that, once the authorization of SERNAGEOMIN has been obtained, the Ventanas Division Smelter will be stopped and the operation of the Refinery will continue. In addition, special recognition is given to the 199 workers of the Foundry who, due to the temporary closure, will benefit from an exit plan and 122 will be relocated to one of Codelco’s divisions.
The implementation of the temporary closure required several accounting adjustments that as of December 31, 2022 totaled 137 MUSD of losses recorded in the 2022 financial statements. During 2023, other accounting effects could materialize, which are not yet possible to quantify.
Finally, Codelco reiterates its commitment to carry out this process ensuring a just transition for its workers, collaborators and the community.
Yours faithfully
Link to file in CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=0ea22dc89f9604bda2514950d3f7fdeaVFdwQmVVMTZRVEZOUkVVMFQxUkZNazVuUFQwPQ==&secuencia=-1&t=1683075181
