STRATEGY
The capacity to move forward, navigating difficulties without straying from the charted path, choosing the best alternatives to achieve the objective of generating value for everyone.
Time Horizons
At Molymet we determine the life cycle of our assets using an average per asset class such as buildings, machinery or other. This formula also considers the assets’ residual value.
Strategic Objectives
The focal points and priorities of our management are defined using a six-part strategy.
Traditional Business
Increase the company's earnings through volume, risk management and market diversification.
Business Development
Expand the business portfolio in strategic metals and develop the molybdenum and rhenium market.
People
Ensure that the company attracts, develops and retains prepared and motivated internal and external candidates who have the potential to meet short- and long-term needs.
Excellence
Guarantee availability of finished products based on market needs, while constantly reducing costs and ensuring returns on investments.
Sustainability
Guarantee business sustainability by creating value for all stakeholders
Innovation
Drive a culture of innovation within the company, demonstrating results in excellence and sustainability.
STRATEGIC AGENDA
In 2021 we made considerable progress on our strategic agenda, deploying and consolidating purpose-driven initiatives, which has enabled us to achieve outstanding financial and operational results, while also improving the sustainability of our company.
Main Achievements
Traditional Business
- We conserved our market leadership by processing close to 30% of global molybdenum production through long-term contracts with the world’s main molybdenum producers and also made strides to sign agreements with new producers and develop the small and mid-sized mining industries in Chile.
- We also moved forward with the start-up of the new PurOx plant at our subsidiary Molymet Belgium and market development in India and Brazil.
- As important players in the rhenium market, we have continued to engage in initiatives that boost our business in the spot markets for this metal.
Processing Raw Materials and Selling Finished Products
- Thanks to the strict health protocols we applied to protect people, coupled with flexibility and operational efficiency measures, we continued operating in numerous markets, despite the context of restrictions, multiple public health measures, input shortages and poor logistic availability because of the pandemic.
- Our management has benefited from progress on our sustainability strategy and deployment of the Lean philosophy in our processes. This has enabled us to continue operating and meet all our commitments.
Business Development
- We are working to become a relevant player in the generation of green hydrogen by driving the use of rhenium in fuel cells.
- We are also exploring ways to participate in the lithium value chain and have installed a pilot plant at our facilities.
SUSTAINABILITY AGENDA
Our operations prioritize sustainability and value creation for all our stakeholders. Accordingly, in 2021 we launched our Sustainability Agenda 2030. This plan outlines 12 long-term commitments and action plans that we will address in the next few years that are associated with the United Nations Sustainable Development Goals (SDG). These commitments are:
Improve our positive perception indicators for diversity, equality and inclusiveness by 10%.
Increase percentage of women in leadership positions to 30%.
Increase water reuse by 64%.
Reduce water intensity by 10%.
Reach 5% of EBITDA from diversification, based on the average moving net profit for the last 5 years.
Invest at least 1% of average moving revenue from the last 5 years in innovation.
Our Sustainability Policy sets forth that Molymet and its Board–the highest corporate governance authority–will fully adhere to the policy’s provisions and make concrete commitments related to:
Sustainability, one the business’s strategic priorities
Business with positive impact
Efficient operations
Commitment beyond regulatory compliance
Corporate risk management
Our values and organizational culture
Our way of doing business
Protecting natural resources and the environment
Climate Change
Our concern for climate change focuses on managing risks with an environmental impact by surveying them and understanding their purpose in order to minimize their impacts on the sustainability of Molymet and its subsidiaries’ operations, image and reputation. Identified risks include:
Water pollution
Natural resources for operational continuity
Emissions, storage and handling of hazardous substances
Provisions of, compliance with and changes to environmental regulations
Circular Economy
We have identified business opportunities in the fields of circular economy and energy matrix efficiency. In particular, we have implemented initiatives to create value from the waste generated by our operations.
Regarding energy, we have plans and are making investments to move forward towards a cleaner, more efficient and more cost-effective matrix.
STRATEGIC RISKS
Molymet monitors identified strategic risks on an ongoing basis. These risks have the potential to impact business continuity and our future plans, so managing them is part of the company’s strategic agenda. The main identified risks are:
Operational sustainability
Commercial exposure
Financial solvency
Competitiveness
Human resources
Image and reputation
Subsidiary profitability
Industry changes
Tech support
Intellectual property
Growth
Corporate governance
HUMAN RESOURCES
People are always at the center of our business, which is why this year we have continued to drive initiatives to strengthen people’s commitment and wellbeing, in line with our purpose.
- We began using an index that will allow us to implement and enhance action plans that are consistent with our labor relations strategy.
- We also continued development and training programs as part of our talent management efforts,
- and implemented flexible benefits for our employees.
STAKEHOLDERS
We drafted several policies to strengthen engagement with our stakeholders, including:
Corporate Human Rights Policy
Donations Policy
Corporate Stakeholder Engagement Policy
Corporate Community Outreach Policy
Corporate Supplier and Contractor Policy
Corporate Policy for the Prevention of Environmental Incidents.
Investment Plans
Modernization and Strengthening of MolymetNos
Gas Cleaning and Roasting Facilities
The project at Molymet’s industrial complex in Nos to modernize the gas cleaning facilities at its molybdenum concentrate roasting operations, as well as its roasting facilities themselves, is one of the most important investments we have made to raise our sustainability standard. It will contribute to the company and, especially, to the communities surrounding MolymetNos, and does not contemplate any expansion of current authorized roasting capacity.
Progress
2020
In 2020, Molymet’s Board approved the first and most important sustainability investment in this modernization plan, which would result in a 40% reduction in the maximum authorized limit for SO2 emissions and the concentration of SO2 gases released into the environment from roasting operations at the MolymetNos industrial complex.
2021
The company obtained the environmental qualification resolution from environmental authorities for the modernization project. The second stage of the project consists of replacing ovens No. 2 and No. 3 in the roasting plan facilities with a single roasting plant with increased processing capacity and productivity, which will also serve as backup for oven No. 5 at the current roasting plant.
2022
The modernization works that began in 2021 by upgrading gas cleaning plant No. 3 will continue throughout 2022 and conclude in 2024 with the construction of an emergency SO2 absorption facility, followed by a new acid plant to replace acid plant No. 1.
Important Figures for MolymetNos Project
Start date
End date
Investment
US$ 60 million
Financing
Own resources
Percent completed
20%
Amount invested to December 31, 2021
50%
