Relationships with unions

4.

Relationship with Unions

Drummond Ltd. confirms its commitment to continue working for economically viable, environmentally sustainable and socially responsible mining, through the operational management of its Corporate Social Responsibility Strategy, which contributes to meeting the Sustainable Development Goals. Through its management of its relationships with unions, it contributes to:

CONTRIBUTION TO MEETING SUSTAINABLE DEVELOPMENT GOALS

PEACE AND HUMAN RIGHTS

Strengthen capacities among stakeholders to build a peaceful, fair and responsible society that promotes respect for human rights. • Training and promotion • Peace and social dialogue • Coexistence and conflict resolution

ENVIRONMENTAL PERFORMANCE

Strengthen business capabilities that ensure world-class environmental performance. • Environmental Sustainability • Conservation and restoration

CSR STRATEGY Contribution to capacity-building

COMPREHENSIVE DEVELOPMENT

Strengthen local capacities for the well-being and prosperity of employees and their families, and the communities in our area of influence. • Education and training • Generation of opportunities

• Working Enviroment

GOVERNANCE FOR DEVELOPMENT

Strengthen local capacities for greater efficiency in public planning and management. • Transparency and citizen oversight • Institutional and community strengthening

TARGET

Target 8.8: Protect labor rights and promote decent working environments, with growth opportunities, that are safe and secure for all workers.

[GRI 407-1]

Operations and suppliers whose right to freedom of association and collective bargaining could be at risk31

STRENGTHENING RELATIONSHIPS WITH ALL UNION ACTORS REMAINS A CORNERSTONE FOR THE COMPANY.

It takes on this challenge based on respect for the right of association, freedom of association and collective bargaining and complying with the provisions established in Colombian labor laws, as established by corporate policies.

Additionally, it is critical to have opportunities for social dialogue, as a mechanism for interaction with workers and their representatives that make it possible to conduct evaluations and monitor issues of general interest to workers. To do so, the Company has the following spaces that are conducive to reaching consensus:

• Townhall meetings with our employees, led by the Vice

Presidents of operations and

Human Resources.

• Visits to work sites with representatives of the trade union organizations. • Regular meetings with our unions within the framework of the collective

Bargaining agreement.

• Meetings with our employees led by industrial Safety and operational area managers (360º).

31. During 2021 there were no operations and/or suppliers whose right to freedom of association and collective bargaining could be at risk.

• Meetings of the

Special committee for Monitoring and

Recommendations to optimize services under the

Hospitalization and

Surgery insurance policy.

• Recreation committee.

• Participation in the labor relations network with other companies in the industry. • Possible meetings requested by union organizations with senior management (president, vice presidents, management, superintendents).

• Participation on the Food and

Transportation committee.

• Visits from external stakeholders (clients, ngos, international unions).

[GRI 102-41]

Collective bargaining agreements

DRUMMOND LTD., IN COMPLIANCE WITH ALL BIOSECURITY RECOMMENDATIONS ISSUED BY THE NATIONAL GOVERNMENT AND THE WHO REGARDING TO COVID-19, CONTINUES TO PARTICIPATE IN AND PROMOTE OPPORTUNITIES FOR DIALOGUE WITH ITS UNION ORGANIZATIONS.

IT ALSO CONTINUES TO COMPLY WITH THE COMMITMENTS MADE IN THE CURRENT COLLECTIVE BARGAINING AGREEMENTS, WHICH BENEFIT 74.83% OF ALL OF ITS WORKERS. IT IS IMPORTANT TO NOTE THAT 64.46% OF THE COMPANY’S WORKERS ARE UNIONIZED.

[GRI MM4]

Number of strikes and lockouts exceeding more than one week’s duration, by country

DURING 2021 THERE WERE NO STRIKES OR CLOSURES, AND THERE WERE NO TERMINATIONS

OR SUSPENSIONS OF EMPLOYMENT CONTRACTS AS A RESULT OF COVID-19.

Additionally, and as a complement to the mechanisms for social dialogue, Drummond Ltd. workers and other stakeholders have a Complaints Channel at their disposal to submit complaints, concerns and/or claims on labor and employment issues, which guarantees absolute confidentiality. This mechanism can be accessed in the following ways:

Email:

denuncias@drummondltd.com

Telephone:

Ethics Line – Toll Free: 018000919161

Direct line:

+57 (5) 5719499 Internal extension: 8499

online portal for citizen services:

https://drummond.boreal-is.com/portal/drummond

Mailing address:

Calle 72 No. 10-07, Oficina 1302, Bogota, D.C.

All communications sent through these mechanisms are managed and answered through a committee, which includes members of Drummond Ltd.’s senior management, for purposes of guaranteeing the transparency and confidentiality of the information provided.

Finally, Drummond Ltd. has the appropriate means to communicate the steps that it has taken to promote and protect this right in all of its operations, such as:

Human rights training sessions

[GRI 402-1]

Minimum notice periods for operational changes

As a result of the emergency caused by the COVID-19 pandemic, Drummond Ltd. has strengthened its corporate communications channels to report on operational changes through emails, memos, newsletters, press releases, billboards and newspaper and magazine publications. This is how the company communicated the reduction of in-person work at its operations and the progressive return of employees to the Company’s facilities, following all protocols and recommendations made by the national government and the WHO.

THE COMPANY DOES NOT HAVE MINIMUM TIME PERIODS FOR REPORTING ON OPERATIONAL CHANGES; EACH CHANGE IS ANALYZED

INDEPENDENTLY ACCORDING TO ITS COMPLEXITY AND IS COMMUNICATED TO STAKEHOLDERS IN A TIMELY MANNER.

Corporate communications

Institutional presentations to our stakeholders

Delivery of the Employee Manual

Corporate employee onboarding

If there are any complaints, concerns or claims regarding respect for these rights, in addition to the mechanisms provided under Colombian labor law, we also have the measures that we have mentioned above.

MILESTONES CHALLENGES

• For the Company it is very important to highlight that during 2021, Drummond Ltd. maintained employment levels with all of the extra-legal and collective bargaining benefits that its employees enjoy, and did not suspend any employment agreements, in spite of the difficult conditions caused by

COVID-19 and the crisis in the domestic and international coal market. • Continue to carry out the commitments acquired in the different collective bargaining agreements and continue working to maintain good working relationships through dialogue and negotiations. • To sign the collective bargaining agreements that result from the negotiations that will be held in 2022, for the benefit of the workers and

Drummond Ltd.