Newsletter No. 18 | December 2023 | Green Leader Environmental & Sustainability Services

NEWSLETTER N°18

DECEMBER 2023

ENGINEERING, SERVICES, AND ENVIRONMENTAL SOLUTIONS WITH A CIRCULAR ECONOMY APPROACH FOR THE SUSTAINABLE DEVELOPMENT OF YOUR COMPANY

CIRCULAR ECONOMY | SUSTAINABLE DEVELOPMENT

In this edition Opinion Column: Dubai-COP 28 Agreement

Green Leader achieves Category A in the Supplier Companies Rating System (SICEP).

Green Leader expands its presence by relocating offices to the Industrial Zone of Antofagasta.

Javier Ramírez, CEO of Green Leader:

“An urgent need for a permitting system that promotes the entry of SMEs into the strategic Mining and Industry market” For Green Leader, the current regulatory burden in Chile is misaligned towards SMEs, and there is an urgent need for a permitting system that encourages the entry of entrepreneurs for enhanced market competitiveness.

OpinionColumn: Permissions for Projects in Chile, Where is the Balance?

Industrial Avenue No. 7280 Warehouse 6 Antofagasta, Chile

contacto@greenleader.cl +56 (55) 333 0218 www.greenleader.cl

In relation to the Fiscal Pact and the government's commitment to submit a bill in December to reform the permitting system, aiming to reduce sectoral authorization timelines by 30% and alleviate excessive bureaucracy that acts as a significant impediment to productivity, Green Leader's CEO, Javier Ramírez, stated, 'The current regulatory burden of permits in Chile, its high level of uncertainty, and excessive delays have discouraged the development of large-scale projects, particularly for SMEs”..

NEWSLETTER N°18

DECEMBER 2023

OPINION COLUMN:

Dubai Agreement: Heading Towards a Sustainable Fossil-Free Future

BY ORIETTA RAMÍREZ PUBLIC AFFAIRS MANAGER GREEN LEADER

In the context of COP28, a historic milestone has

wable energies and double the rate of improvement in

been achieved with the signing of the Dubai

global

Agreement by 198 nations. This pact, conceived as

collective commitment to radically transform how we

an immediate response to the climate crisis,

generate and use energy.

stands

the

The acceleration in reducing coal usage, the push towards

urgency of significantly, rapidly, and sustainably

energy systems with net-zero emissions, and the orderly

reducing greenhouse gas emissions, aligning with

transition from fossil fuels are bold steps that reflect the

trajectories aimed at limiting global warming to

global

1.5°C.

transformation. This agreement outlines a roadmap that

The foundations of this agreement constitute a

leads us towards a reality where dependence on fossil

blend

resources is a thing of the past

out

of

for

explicitly

ambitious

and

acknowledging

concrete

objectives,

energy

efficiency.

understanding

These

of

the

targets

imminent

represent

need

a

for

outlined with the purpose of redirecting our societies towards genuine sustainability. The goal

The emphasis on the development of clean technologies

for 2030 seeks to triple the global capacity of rene

READ+

OUTSTANDING EMPLOYEES DECEMBER 2023: In the Circular Economy Center Green Leader at SQM, distinguished as

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Loading and Unloading Service at the SQM Operational Support

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Service, and Mr. ENZO ROJAS, the Forklift Operator in the Truck

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GONZÁLEZ, the Senior Supervisor of the Pallet Recovery Management

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the outstanding collaborator of December 2023 was Mr. JUVENAL

NAL GON

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Warehouse. Both achieved the highest percentage in the Performance Evaluation and compliance with Safety and Occupational Health among

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Waste (RESPEL) Contract at FCAB Antofagasta, Mr. SEBASTIÁN CARRIZO was chosen as the outstanding collaborator for December 2023, achieving the highest percentage in the Performance Evaluation and compliance with Safety and Occupational Health among his peers.

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Congratulations to the distinguished members of Green Leader! .

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Meanwhile, in the Administration, Handling, and Transport of Hazardous

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NEWSLETTER N°18

DECEMBER 2023

Javier Ramírez López, CEO of Green Leader:

"Urgent Need for Permitting that Promotes SMEs' Entry into the Strategic Mining and Industry Supplier Market" For Green Leader, the current regulatory burden in Chile is misaligned towards SMEs, and there is an urgent need for a permitting system that encourages the entry of entrepreneurs for enhanced market competitiveness.

Regarding the Fiscal Pact and the government's commitment to submit a bill in December to reform the permitting system, aiming to reduce authorization deadlines in the sector by at least 30% and decrease the excessive bureaucracy that, according to the National Commission for Evaluation and Productivity, constitutes a significant hindrance to the country's productivity, competition, and growth, Green Leader CEO Javier Ramírez López stated, "The current regulatory burden in

Javier Ramírez López, CEO of Green Leader Environmental & Sustainability Services

Chile is poorly calibrated towards SMEs, and there is an urgent need for permitting that encourages the entry of entrepreneurs for greater competitiveness in supplier

different because the cost associated with this

markets around strategic sectors such as Mining and Industry."

waiting period is too high compared to the intended goal. Most SMEs end up succumbing in

Indeed, Green Leader's CEO added that currently, large

the process, resulting in a less competitive economy and the strengthening of larger companies that have been in the market for years.

supplier companies with financial capacity can endure the years-long wait for permits. However, when it comes to Small and Medium Enterprises, the reality is drastically

"Small and medium-sized enterprises (SMEs) lack sufficient incentives to enter the market because an endeavor involving chemical or biochemical processes for hazardous waste treatment, for instance, entails a permitting process that can easily take years," stated the CEO of Green Leader.

Javier Ramírez pointed out that, in the case of Hazardous Industrial Waste, for example, the market is dominated by 2 or 3 major companies in the country. "SMEs do not have sufficient incentives to compete in this market because an undertaking involving chemical, biochemical, and/or recycling processes for the treatment of such waste requires permitting that can easily take years. Given this prolonged wait, entrepreneurs do not have the financial resilience to endure the uncertainty of all that time."

Cochilco: Fewer Mining Projects According to the recent report from the Chilean Copper Commission (Cochilco) on 'Investment in Chilean Mining - Project Portfolio 2023-2032,' which outlines projects that mining companies plan to materialize in the next 10 years, the figures in this report reflect an 11% decrease compared to the previous 2022-2031 assessment. Among the reasons explaining this decrease in initiatives is the consensus among industry stakeholders that 03

NEWSLETTER N°18

DECEMBER 2023

"The permitting process for a mining project – for example – which should take no more than 3 years according to legal timelines, ends up taking 10. It's a timeframe that is illogical for a country that needs investments to grow and enhance all the economic activity associated with the mining ecosystem through its various service providers," states Javier Ramírez, CEO of Green Leader.

the current permitting system, among other factors,

in Chile," covering the period 2018-2022. The study

hampers attracting mining projects.

indicates 71 entities responsible for granting 309 permits necessary for project investment. Of these, 63

investments

and

increasing

"The permitting process for a mining project, for example, which should take no more than 3 years

are classified as critical since they have the potential to halt a project during its processing phase.

according to legal deadlines, ends up taking 10. It is a period of time out of sync for a country that needs investments to grow and enhance all economic

The study concludes that the recurring difficulties experienced by those carrying out projects, especially the more complex ones, are related to prolonged

activity

ecosystem

processing times, lack of coordination among various

through various service providers, and that's where we come in as an SME supplier to Mining and Industry," said Green Leader's CEO.

State Administration Bodies, and the repetition of procedures.

"These circumstances indicate a permitting system that discourages investment development, especially larger projects, as these are precisely the ones requiring the most complex priority permits." (CNEP, 2023)

associated

with

the

mining

OECD: Regulatory Complexity In the most recent OECD report (2023) analyzing the characteristics of Foreign Direct Investment (FDI) in Chile, it examines policies and regulatory frameworks impacting this investment, among other variables. According to this analysis, Chile has a conducive regulatory framework for competition.

However, the report highlights that regulatory complexity represents a significant obstacle, especially for large investment projects in strategic sectors, due to issues such as lack of clarity in approval processes, where discretion and substantial delays are mentioned as problematic aspects.

CNEP: 309 Required Permits Last July, the National Commission for Evaluation and Productivity (CNEP) published the study "Analysis of Priority Sectoral Permits for Investment 04

Reforming the Permitting System For Green Leader's CEO, the government's commitment to reform the permitting ecosystem to reduce waiting times by 30% is good news, and it is hoped that once the bill is submitted, the Congress will expedite the process. This understanding is crucial as the economy needs to attract more investments, grow, generate more jobs, and increase competition levels within the mining and industry markets so that SME service providers in environmental services and the circular economy, like Green Leader, can also make headway with more projects and investments in a market currently dominated by larger companies. READ+

DECEMBER 2023

NEWSLETTER N°18

Green Leader achieves Category A in the Supplier Company Rating System (SICEP) "The SICEP is a distinctive platform to showcase the capabilities of certified companies to the leading mining and industrial companies in the country. The categories range from A, which represents the highest level of standards compliance, to category E, which is the least advanced."

In a significant milestone as a Mining Supplier in the Antofagasta Region, Green Leader has announced with satisfaction the attainment of the coveted Category A during the certification process conducted by the Supplier Company Rating System (SICEP). This category represents the highest distinction awarded by the institution, consolidating Green Leader's commitment to the highest standards in the mining industry.

For Javier Ramírez, CEO of Green Leader, achieving the highest category in the recent certification not only signifies a significant accomplishment but also recognizes the company's ongoing commitment to continuous improvement.

"This Category A Certification positions Green Leader as a benchmark in the industry, demonstrating its commitment to excellence and sustainability in all aspects of its operation."

The

comprehensive

evaluation

conducted

by

specialized auditors included the application of the Basic Competency Assessment Survey. This rigorous analysis measured the level of development and implementation of standards in various crucial areas for the company's operation.

Among the evaluated aspects are: a. Infrastructure b. Human Resources c. Quality d. Environment e. Safety f. Connectivity and Automation g. Community READ+

Green Leader Expands its Presence with Office Relocation to the Antofagasta Industrial Zone With the aim of meeting the growing need for more space and consolidating new projects, Green Leader has successfully relocated its offices to the industrial sector of Antofagasta, starting from the month of December. This strategic move marks a significant stage in the company's expansion process, particularly focused on the development of initiatives in the Circular Economy.

The new facilities, situated at Av. Industrial No. 7280, Antofagasta, will provide Green Leader with the necessary space to continue its growth and strengthen its commitment to sustainable practices.

This relocation signifies not only a physical change but also a significant step towards achieving innova-

tive and sustainable projects in the field of the circular economy. The company reaffirms its commitment to excellence and contribution to sustainable development in its new location in the Antofagasta industrial zone.

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NEWSLETTER N°18

DECEMBER 2023

OPINION COLUMN:

Permits for Projects in Chile, Where is the Balance?

BY ANÍBAL CHAMORRO ALCAÍNO CHIEF SUSTAINABILITY OFFICER (CSO) GREEN LEADER

Every economic activity or new project requires obtaining various permits, which are governed by the current regulations in each country. For example, the development of a new large-scale mining operation, from its study stages to execution, may require more than 1,500 environmental and administrative sector permits, which are crucial for the project's progress.

Whenever a company initiates a new economic activity, a new project, construction, or any other endeavor, compliance with current legal and administrative regulations

is

necessary.

This

means

conducting

economic activities in accordance with the regulating norms, obtaining approval for a series of permits associated with project development, and ultimately the projected economic activity.

In 2020, the Inter-American Development Bank estimated that, on average, a mining project takes up to 4.5 years to process in Chile. Two years are spent on the environmental part and 2.5 years on the sectorial part. Similarly, maritime concessions take an average of 3.5 years.

This remains a problem that delays and inhibits economic activities in Chile, as the multitude of permits presents a cumbersome panorama, creating uncertainty and delaying large investment projects.

This, in turn, increases the cost associated with inactivity, ultimately discouraging any business or investment in economic activity development.

It is imperative to ensure investors operationalize their investment promptly, providing them with speed, order, and clarity. Simultaneously, it is essential to guarantee the state appropriate control to oversee and supervise the project's functioning.

For instance, for a mining project to progress in Chile, mining companies need to obtain permits from local, regional, and national authorities, of various technical nature, including environmental permits. Each permit entails technical requirements, scientific evidence, models and simulations, reports, studies, the collection of environmental variables for a specific location over periods, or even years – documents that are necessary but also make the process difficult, time-consuming, and often impossible to achieve, hindering the development of the required economic activity.

Technical safety and scientific rigor come into play to ensure that the intended economic activity does READ+

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DECEMBER 2023

NEWSLETTER N° 18

CIRCULAR ECONOMY | SUSTAINABLE DEVELOPMENT

New Year's Eve Lunch Celebration for Green Leader Employees

Green Leader organized a festive lunch to bid farewell to the year and celebrate the arrival of the New Year with its dedicated employees. The event aimed to express appreciation for their hard work and dedication throughout the year 2023.

During this joyful occasion, special recognition was given to Mr. Vladimir Gutiérrez Tapia, Mr. José Fredes Jeraldo, and Mr. Fidel Gallardo Rojas for their seven years of dedicated service to the company.

Congratulations to them! Wishing all Green Leader employees a happy and prosperous New Year!

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