Our purpose is:
“To create value for the evolution of humanity, through products developed by people who think about the well-being of the planet.”
Message from our CEO
The disruption of Covid-19 has accelerated the role companies must play in driving positive social impacts. Right now, there is an urgent need to regain trust and this means our challenge of development across the entire industry has become more complex. We need to restore trust at all levels, attract talent, access new forms of financing and meet the highest international standards. This demands a new way of doing business in order to build the society we want and make it sustainable over time.
Looking back at 2021, Trust and Purpose have been dominant themes in driving a much larger strategic transformation at Molymet. As Aristotle observed more than two thousand years ago, human beings are social creatures and social trust is the underlying foundation of relationships among work colleagues, individuals, groups, and communities. This conviction of being trustworthy has guided us since our origins and it continues today.
Equally important has been the journey of rethinking our company purpose. Purpose is not something that leaders can impose on their people. It has to come from within and from this profound work of reflection and sharing with more than 300 of our employees and leaders, our purpose emerged: ‘to create value for the evolution of humanity, through products developed by people who think about the well-being of the planet’.
2030 Sustainability Agenda
Visions and missions may change as markets and geopolitical events change but purpose is our ‘Why’, our North Star. It is rooted in our values, distinctive to our brand, meaningful for the people who make our products and meaningful for those who use them. In short, purpose is about the value our company brings and about the role we play in the world.
Articulating our purpose has taken us to the next level of maturity and enhanced the integration of sustainability into our business. First, in 2018, by adhering to a sustainable business model, then by developing a corporate sustainability strategy which started in 2019 and has already reached 77% compliance. Now we are taking our commitments to an even higher level by launching our 2030 Sustainability Agenda.
I invite you to review our 4th Sustainability Report and our recently released Molymet 2030 Sustainability Agenda. In future, these will be published together annually, allowing us to keep track of the progress we are making on each commitment.
People at the heart of what we do
Much is said about putting people at the centre of business but for us, this statement is totally genuine and we put these words into concrete actions within our company.
I can say with absolute clarity that at Molymet, our people are at the heart of our organization. We believe that our employees are the main engine for reaching our purpose and they are the ones enabling our transition to the cultural change demanded by these current times.
Our work on our company purpose has been deeply reflective. In this past year our 40 purpose influencers shared our purpose among their colleagues and 90 conversations took place.
We have made real progress with our Strategy for Diversity, Equity and inclusion and our commitment to increase the percentage of female staff and the number of women in leadership positions. We have made investments to boost our talent management and training while also measuring the quality of our labor relations and evaluating the perceptions our employees and other stakeholders have of our company.
¿How to know if we are doing well?
Both sustainability issues and the needs of our stakeholders are evolving at a great pace. This is why we need to act quickly and assertively.
To this end we are participating in different indexes and rankings carried out by independent, reputable international 3rd parties, which allow us to move closer to best global practices.
We have started with the Dow Jones Sustainability Index, Clarity AI and the Labor Relations Index and the SSI Index which gives us valuable information about how we are perceived by our stakeholders.
Economic Figures
With regards to production, at the close of December 2021, the total Molymet processing capacity was 200 million pounds of molybdenum oxide annually. This represents approximately 24,3% of world consumption. Our sales were 1.453 million USD, a 38% improvement on the previous year. With respect to EBITDA, by 31 December this reached 193 million USD, an increase of 69% on 2020 which was 114,15 million USD.
We invite you to review our 4th Sustainability Report which contains information about our sustainable performance from 1 January to 31 December 2021. It also contains our 2030 Sustainability Agenda which will be the engine and heart of our report and management here and going forward.
JOHN GRAELL
CEO
The big numbers
Other economic figures:
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Total annual Molybdenum production
Corporate structure – Main shareholders
For un updated overview of Molymet ownership, please click on the following link:
Molybdenum figures by subsidiary
Note 2: Total Costs includes Cost of Sales, Distribution Costs, Administrative Expenses, Other Expenses by function and Other Profit-Loss.
Note 3: Include employees at our Corporate Headquarters & MolymetNos.
Our commitments and goals
This year we achieved significant progress in terms of our sustainability commitments. The details are in our Sustainability Agenda in chapter 3.
2021 Milestones
Our mission
We are working to strengthen our global position in the molybdenum and rhenium markets through flexible processing capacity, innovative process optimization and the search for new business opportunities in strategic metals.
The values that inspire us
Transcendence
Confidentiality
Excellence
Sustainability
People & Integrity
Innovation
Company and Subdiary Activities
We purchase molybdenum concentrates (molybdenite) and use our processing technology to produce a wide range of molybdenum products like molybdenum oxide or pure products which are sold to different clients in the global market.
Tolling Line
We do business with several mining companies who send molybdenite to us. For a tolling fee, we transform the raw concentrates into molybdenum oxide and send them back as marketable products.
Through our roasting and oxidation processes we recover byproducts from molibdenum, like rhenium, copper cathodes and sulfuric acid which are sold in the market.
Subsidiaries not related to Molybdenum
Carbomet Energía generates renewable energy through run-of-river hydroelectric plants.
Inmobiliaria San Bernardo is an agricultural estate located in our green belt buffer zone. It plays a significant role in Molymet’s efforts towards environmental conservation and carries out commercial production of organic walnuts.
Introducing our company and its subsidiaries
Molymet has 5 productive subsidiaries located in Chile, Mexico, Belgium and Germany. We also have 5 commercial offices in 5 countries.
Our products are used by customers in steel, metallurgical, aerospace, chemical, electronic and medica device industries. Our main markets are Europe, Asia and North America.
Molybdenum Subsidiaries
Commercial Offices
Subsidiaries not related to Molybdenum
Our History
1930
Carburo y Metalurgia S.A. was founded by Antonio Gianoli and George Mustakis in Los Andes, Valparaíso Region, Chile – the company that led to the birth of Molymet 39 years later.
1940
The Carburo y Metalurgia S.A. plant was relocated to San Bernado (Planta Nos) in Santiago.
1970
Ciro Gianoli and Constantino Mustakis, sons of the founders of Carburo y Metalurgia S.A., started planning how to add value to molybdenum and they installed the first roasting furnace.
Molibdenos y Metales S.A. was created by Ciro Gianoli and Constantino Mustakis following the division of Carburo y Metalurgia S.A. Trading as Molymet, the company took over production and sale of molybdenum oxide, ferromolybdenum and byproducts. A year later, Molymet acquired patents for these products.
1980
Molymet achieved the milestone of processing 13% of molybdenum consumption in the Western World.
Molymet began production of metallic rhenium and pure molybdenum trioxide.
1990
Our globalization began with the acquisition of a plant in Sonora, Mexico which became Molymex
Molymet shares were listed on the Santiago Stock Exchange.
2000
Molymet’s expansion into Europe began when we acquired Chemiemetall Alemania in Leipzig (now Molymet Germany) where mainly metallic molybdenum is produced.
Molymet acquired Sadaci in Ghent (now Molymet Belgium) and increased its roasting capacity by 30%.
Our first bonds were issued in Santiago for a total amount of USD 202 MM.
Our first bonds were issued in Mexico for a total amount of USD 52 MM.
2010
- Production started at our 2nd Chilean subsidiary: Molynor S.A. Industrial Complex in Mejillones, Antofagasta. This increased Molymet’s molybdenum roasting capacity by 22%.
- Molymet expanded into China after acquiring 50% of Luoyang Hi-Tech Molybdenum & Tungsten Material Co. Ltd. in China where molybdenum metal was produced.
- Our second issuance of bonds in the Mexico market sold for a total amount of USD 52 MM.
- We successfully raised additional capital of USD 274,5MM.
Se concluye y pone en marcha el Proyecto “Ampliación Capacidad Productiva Molynor”, el cual consideró un segundo Horno de Tostación, mejoras en la Planta de Ácido Sulfúrico y un segundo tren de desalinización de agua de mar, en conjunto con otras obras necesarias para la operación ampliada de la compañía, dejando a Molynor con una capacidad de tostación instalada total de 60 millones de libras de molibdeno al año.
- Molymet continued to pursue the most optimal ways to enhance efficiency and productivity as well as ongoing technological development for perfection of our oxidation and molybdenum roasting processes.
- The project to build a new Pure Products plant at our Belgian subsidiary , Sadaci, was initiated.
The Molynor Industrial Complex was inaugurated.
Two expansion projects were completed at our Belgian subsidiary, Sadaci :
Roaster capacity was boosted to reach 33 MMlb/y and Briquette Plant capacity to 24.5 MMlb/y. Together, these projects increased group oxidation capacity to 207 MM pounds. Molymet Belgium.
The Modernization and Strengthening of Gas Cleaning Systems and Roasting Facilities at MolymetNos was approved by the Board. The rationale behind this, our biggest project in decades, was to ensure reliability and operational sustainability and to go way beyond current environmental regulations by voluntarily reducing MolymetNos’ sulfur dioxide (SO2) emissions by 40%.
Construction began on the Molynor Ferric Chloride Concentrate Cleaning Plant. This investment allowed the conditioning of molybdenite with higher impurity to be transformed into commercial oxide. In addition, copper cement was obtained as a by-product.
- Built our corporate Sustainability Strategy and launched our Zero Emissions initiative.
- Definimos nuestro propósito corporativo.
- Started the process of implementing Lean philosopy and digital transformation towards Industry 4.0.
2020
- Implemented new Corporate Policies: Health and Safety; Community Engagement; Diversification Investment; Project Investment.
- Received a favorable Environmental Qualification Resolution (RCA) to go ahead with the Modernization and Strengthening of Gas Cleaning Systems and Roasting Facilities at MolymetNos where we are voluntarily reducing MolymetNos’ SO2 emissions by 40%.
- Our Company Purpose was launched.
- We found a use for ferrous chloride, achieving a breakthrough in circular economy.
- We became the world leader in molybdenum sales.
- Adaptation to the COVID-19 pandemic.
- Our Molymet brand was updated and consolidated worldwide and the names of our European subsidiaries were changed to Molymet Belgium and Molymet Germany.
- Launch of the 2030 Molymet Sustainability Agenda.
- Launched our Code of Conduct.
- Launched our Human Rights Policy.
- First application of the Dow Jones Sustainability Index (DJSI)
- Implemented the Labor Relations Index for the 1st time at our American subsidiaries and at our corporate headquarters.
- First measurement of our progress against the Stakeholder Sustainability Index (SSIndex)
Sustainable governance
Our CEO and the Corporate Sustainability Committe lead sustainability matters and periodically present them to the board. They are responsible for the reporting process which is carried out each year with the support of our corporate sustainability management team who give ongoing strategic direction to Molymet’s Economic, Social and Governance issues.
Each subsidiary also has its own sustainability team which oversees the environmental and community issues at each operational plant. In total, 23 people are dedicated exclusively to driving and managing sustainability across the Molymet Group.Our Board Directors play an active role in sustainability issues. This year in particular, they had ongoing involvement in the planning of our 2030 Sustainability Agenda where we had deep discussions about each one of the commitments we intended to make. Our monthly Board reports have a specific section dedicated to Sustainability issues in order to keep all the directors updated with the advances being made.
For more information on the following topics, please access our 2021 Financial Report.
Alliance & Associations
IMOA Alliance
As the global molybdenum leader, we work closely with the IMOA which not only seeks new applications for molybdenum and rhenium but also focuses on moving towards a sustainable certification model for these minerals. This is because the options currently available are labels or classifications that apply to copper mining and these do not necessarily generate the same impacts as our processes.
Within Chile, Mexico, Belgium and Germany we play an active role in industry associations, community and environmental organizations.
Industry Certification and Recognition
Certification
- In 2014 Molymet’s corporate building was awarded the prestigious Platinum LEED Certification for leadership in energy & environmental design.
- Our Crime Prevention Model has been certified since 2014 by BH Compliance. In 2020 it was recertified for the 4th time and will be valid for two years.
- AS9100: 2016 Certification.
- ISO 45001: 2018 certification, awarded by SGS Mexico.
- ISO 14001: 2015 Certification, awarded by SGS Mexico and Europe.
- SO 45001 Certification, awarded by SGE valid from 15 February 2020 to 14 February 2023.
- ISO 50001: 2018 Certification, TÜV Rheinland, since 2015.
Recognition
- Molymet was recognized in the “Ranking of Creativity and Innovation C3” in the category of Research and Development. (Prepared by consulting firm Brinca and the UDD)
- In 2020 Molymex received PROFEPA Clean Industry Certification (performance level 2) for the 19th consecutive year. This is granted by the Mexican Federal Environmental Protection Agency (PROFEPA) under the Voluntary Environmental Audit Program.
- Great Place To Work Certification, awarded by Las Mejores Empresas para Trabajar, S.A.P.I. de C.V. since 2019.
- EBO (energy policy agreement) certification since 2018 for our European subsidiaries
- Molymex received an Environmental Excellence Award from Procuraduría Federal de Protección al Ambiente (PROFEPA) in 2018.
- The Sonora Mining Cluster recognized Molymex’s commitment to Corporate Social Responsibility, where Dr. Alfonso Durazo, Governor of Sonora, presented the award for leaving a positive social, environmental and economic footprint in the community.
- In May 2021, Molymex was recognized by the Instituto de Empresa Inteligente ABA, S.C. (ISEI) for their positive social, environmental and economic footprint in the community. They also won first place in the 2021 ISEI Innovation competition.
- MolymetNos received a distinction for: “Commitment to Corporate Social Responsibility 2021” by the San Bernardo Industries Association (AISB).
- Molymet was placed 7th in the Industrial category of Recognition in Ranking Merco, Corporate Reputation Business Monitor
Awards
- HuellaChile Quantification Seal, awarded by the Chilean Ministry of Environment to Molynor and MolymetNos in 2021. The objective of this voluntary program is to support and encourage voluntary management of GHG emissions, carbon footprint calculation and standardized reporting formats.
- Certification of carbon footprint calculation scope 1 and 2 for Molymex, carried out by the company ECODES as of February 2021.
- For the 11th consecutive year, Molymex was awarded the Socially Responsible Company (ESR) distinction by the Mexican CBetween for Philanthropy (CEMEFI).
- COVID-19 Seal, awarded by ACHS to MolymetNos, December 2021.
Our Stakeholder Groups
Shareholders
Employees
Customers
Communities
Suppliers
Authorities
Environment
We are committed to our environment, adopting all necessary measure to reduce our negative impact and strengthen natural ecosystems.
To achieve optimal management, we need a systematic approach that takes all the variables into account.
Stakeholder Communication channels
As the building of our Purpose progressed, we also modernized our company brand. These changes required a renewal of our internal and external communications.
One of our first actions was to update the Molymet website, transforming it into an effective channel for contact and content sharing with different audiences, along with design aligned with our new brand.
Another significant move was the creation of a social media strategy focused on LinkedIn, Instagram and Facebook platforms. Our external communication work began in 2019 and matured throughout 2020 and 2021 as we gained more followers each year.
Employee Sustainability Communication Strategy
When Sustainability was first talked about some 30 years ago, it was about interacting with the environment in a way that ensures there will be enough resources for future generations. Over the years it has broadened to include a more people-centred agenda, especially after the Sustainable Development Goals adopted by the United Nations in 2016 brought together the three dimensions of sustainability: economic, social and environmental.
Molymet has developed a robust internal communication campaign, linked to our purpose to sensitize, motivate and connect all our employees to our new Sustainability Strategy.
The aim is for each employee to be a sustainability champion and to have the information that enables them to speak about the progress and milestones we have achieved over the years.
Employee Sustainability Communication Strategy
- Launch of CEO campaign.
- Our leaders as spokespeople.
- Employee spots: ¿Do you know what Sustainability is?
- A mix of interviews, videos, capsules and spots featuring company leaders and employees.
Risk Management
Led by the Corporate Vice-Presidency of Compliance and Risk, integrated risk management is fundamental to achieving our business mission. It allows us to proactively identify, prevent, control and mitigate situations that could significantly damage our sustainability and company reputation.
Risk Management forms part of our Strategic Agenda and issues are managed across 6 columns:
a. People
b. Sustainability
c. Excellence
d. Core Business
e. Growth & Development
f. Innovation
Ethical Management
Sustainable management of our business requires us to operate with high ethical standards based on integrity in the was we undertake our activities and compliance with current legislation. Transparency and social responsibility are a central part of our company culture and guide the behavior of each one who is part of Molymet. At Molymet, ethical management is based on our company values and principles that provide a map for navigating how we act. It is in this light that we have launched our code of Conduct.
Code of Conduct
Beyond compliance, we deeply value the trust and respect we have worked hard to build. This is something we guard fiercely because once lost it is difficult to get trust and respect back. However, we cannot assume that everyone will instinctively know how they should behave in different situations. This is why in 2021, we drew up a formal Code of Conduct – to give all our employees across the world clear guidelines for how they are expected to interact with others at work.
It is not about policing employees. In fact, if anything, a code of conduct empowers employees. It makes them sure of what the limits are and how they should handle ethical dilemmas. Above all, when desired behavior is clearly articulated it tends to unify teams because they know they are part of an organization where everyone maintains certain standards of conduct and they feel proud to belong to it.
Our Code of Conduct aims to guide and unite employees around behavior that reflects the inherent Molymet culture.
“The creation of this Code of Conduct brings together the main values and principles defined in our internal policies. It is a tool that declares the type of behaviour required in our professional work and decision making. Its implementation is a strategic milestone, providing the framework for situations in our daily work.”
Claudia Avendaño, Vice-president Corporate Risk and Compliance
Protection against retaliation
Molymet’s reputation for integrity is a valuable asset. Therefore, any suspected or actual violation of internal policies or the Code of Conduct must be reported. If any employee believes that he or she is being retaliated against for following the Code of Conduct, or questioned for reporting a violation, they should use the tools and resources outlined in the Code to report it immediately. Our company will not tolerate retaliation against those who are acting in the interest of upholding our integrity.
Ethical Culture
To ensure an ethical culture, we develop cross-cutting practices that seek to promote employee awareness and behaviour that matches our company values, principles and standards of conduct. Since 2017 this has been boosted by an intensive training and awareness campaigns aimed at raising awareness and facilitating adoption of good practices in areas like the safeguarding of information; knowledge of whistleblowing channels; compliance; risk and crime prevention. To make sure everyone is quite sure of what is expected of them, all newly hired employees go through an induction process to understand these practices.
Confidential Ethics Hotline
All employees, suppliers, customers, contractors and communities have access to a confidential ethics hotline – either by telephone or email.
Through the hotline, our stakeholders can report possible irregular conduct occurring within the company or conduct that may have a potential impact outside the company.
Whistleblowing Channel
This line is an anonymous communication channel where incidents contrary to our values and ethics can be reported in a secure and confidential manner. It is also a useful tool for alerting the company to possible fraud and corruption. At the same time, the channel has safeguards to prevent its inappropriate or malicious use to damage people’s honor. It is also an accessible way for our stakeholders to express their doubts, concerns or discomfort about any aspect of our operations.
As a way of managing the absolute confidentiality and anonymity of this channel, we have outsourced this service to Fundación Generación Empresarial. Complaints are then referred to the Corporate Vice-Presidency of Compliance and Risk which initiates a process of investigation, conclusion and compliance with action plans or disciplinary measures, as appropriate in each particular case. Each existing conflict is flagged as a risk and if it is a risk which did not previously exist, a new one is created.
This line does not exclude the right of anyone to make in person or written complaints directly to the company or through relevant judicial channels.
How to file a complaint
Go to https://molymet.ines.cl/molymet/formulario/
The receipt of each complaint is strictly confidential, safeguarding the anonymity of the complainant and the impartiality of the investigation.
During 2021 there were five complaints. All were investigated and resolved, two of them with sanctions.
It should be noted that the whistleblowing cases were limited to our MolymetNos subsidiary. This is because currently, our Crime Prevention model is only certified at our Chilean subsidiaries. We have not yet extended this model to Molymex and our European subsidiaries but we are working on it.
Crime Prevention Model
In accordance with the provisions of Law No. 20.393, our Crime Prevention Model supports inductions and talks that address anti-corruption and ethical procedures so that we can share good corporate practices and the concept of integrity. This model has been recertified by BH Compliance for the fourth time in 2020, guaranteeing its correct functioning.
