Fundacion Minera2006 Ingles

annual report 2006 minera escondida
fundación minera escondida

annual report 2006 • balance sheet and financial statements
Minera Escondida Fuondation
“Optimize resource exploitation,

aggresively develop new projects
and discover new orebodies

”
Presentation
t he search for a closer and more permanent link with the community that
welcomed our operations led to the decision by Escondida and our Owners, BHP
Billiton (57,5%), Río Tinto (30%), Japan Escondida Corporation (10%) and Inter-
national Finance Corporation of the World Bank (2,5%), to create Fundación Mi-
nera Escondida, (FME) in 1996.
Fundación Minera Escondida a non-profit autonomous institution, is one of

more than 106,000 Chilean institutions that are grouped under the concept of
Organizations of Civilian Society(*).
The statutes governing FME were approved on August 11, 1994, and the legal
status of the Foundation was obtained through Decree N° 95 of the Ministry of
Justice, and published in the Official Gazette on February 13, 1996.
The legal residence of FME is the city of Antofagasta on Coquimbo Street, 888,
office 301. Likewise, the Foundation has an Office for Indigenous Affairs, in the
Atacamanian town of San Pedro de Atacama, on Toconao Street. Both offices
are located in the Region of Antofagasta, Chile.
(*) According to a Comparative Study of the Non-Profit Sector

(Sector Sin Fines de Lucro -ESFL) in Chile, Johns Hopkins University 2003 - 2006.
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Message from the President
9.
FME Charter
12.
FME’s Operational Plan
16.
Board of Directors
19.
Operating Team
20.
Citizen Advisory Council
21.
Outline
23.
History
25.
Strategic Planning Process
29.
Strategic Objectives
30.
Main Achievements
38.
Institutional Management Indicators
64.
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Participants
68.
Number of Projects
69.
Financial Statements
82.
Index
Texts: Fundación Minera Escondida
Design: Edwards Asociados
Photographs: Oliver Llaneza
No part of this document can be

reproduced in any format, paper
or electronic, without written consent
from Minera Escondida Limitada.
Minera Escondida Limitada

All rights reserved
Printed in Chile
Message from the President
s ince Minera Escondida settled in the Region of Antofagasta, a little over two
decades ago, it was clear that the wealth did not only lie below the ground or in the men
who participated in this enterprise.
The wealth was also comprised of the people who inhabited the cities, the people
that belong to this territory and the ethnic groups that have populated the desert for
thousands of years.
This is the reason why it has not only been important to consolidate a world-class mining
operation or become one of the leaders in the copper industry, with rigorous safety, risk
prevention and environmental standards.
Beyond promoting the productive and economic value chain of the local communities
where we operate, by being an effective partner and responsible neighbor, it has been
crucial for us to learn to discover the wealth existing in the people and various institutions.
We have materialized this intent by means of our community social responsibility
activities driven by Fundación Minera Escondida, our External Affairs team, the Center
for Industrial and Mining Training (Centro de Entrenamiento Industrial y Minero - CEIM)
and the various groups of workers who perform volunteer work.
With the permanent support of Minera Escondida, under the imprint of our corporate
intent to “be a responsible corporate citizen and to be recognized as such”, this genuine
network of social responsibility activities, has been able to transform problems into
opportunities of innovation and creativity, challenging paradigms and encouraging
people to bring about their own development.
When facing this challenge the work of Fundación Minera Escondida during these past
10 years has been particularly relevant, always focused on developing Social and Human
Capacities, in its different forms and expressions.
Based on this associative focus, we have been able to build a valuable legacy which
transcends the productive activity, contributing from the mining industry to build a
future that goes beyond mining, approaching an effective model of sustainability.
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A student in the Fundación Minera Escondida School.
In this process, one of the main success factors has been trust, because we have learnt
that economic resources alone are not sufficient to gain community valuation.
The way in which we carry out social investment is essential. We discovered this has to be
done with participation, respect for the dignity of the people, working face to face and
generating permanent associative networks to build trust and affection.
Therefore, the main contribution of Minera Escondida through our Foundation goes
beyond the resources and work that benefit thousands of persons and entities, in
particular people with low income or those in search of an opportunity to improve their
volunteer work to help those people in need.
The main contribution of FME has been to provide the tools to encourage the emergence
of the community’s valuable social wealth.
This associative dynamics has contributed to place Minera Escondida, and therefore
BHP Billiton, its operator, as a leading benchmark in matters related to Corporate Social
Responsibility in the country.
This statement is based on facts and not only words. The hundreds of thousands of people
who have participated in the work carried out by the Fundación Minera Escondida, in the
Region of Antofagasta and in many other regions of the country bear witness to it.
Bert Nacken
President
Minera Escondida Limitada
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Fundación Minera Escondida
We are a Corporate Foundation, created and
financed by Minera Escondida Limitada.
We aspire to be an institution that is validated

by its social innovation, networks of trust and
effectiveness in community development.
Our Institutional Purpose is to install and develop human and social

competencies with particular emphasis on quality education
and as an expression of Minera Escondida’s
Social Community Responsibility.
In order to achieve our Purpose we must contribute by:

• Improving the quality of subsidized
education;
• Social mobility in low-income sectors;
• Strengthening social organizations;
• Integrating indigenous people to
development, respecting & preserving their
cultural and natural heritage;
• Opening spaces for a broad and diverse
entrepreneurship & participation.
FME Charter
Our value framework is characterized by:
Trust, valuing diversity and promoting We will be successful when:

human relations as elements that • The Educational Institutions we are
generate union and social capital; involved with, offer development
opportunities for human and social capital;
Solidarity, sensitizing ourselves to • The social environment surrounding these
detect and understand community institutions become effective educational
sentiments, promoting associativity improvement allies;
with other social sectors; • We develop innovative methodologies for
social intervention;
Responsibility, meeting our commitments • We develop levels of trust with all those we
both at the personal as well as at the relate with, at a personal and institutional
institutional level; level;
• We effectively articulate associative actions
Transparence, being integral, between the public sector, the private
honest and objective in the allocation sector and civil society at large;
of institutional resources. • The community demonstrates high regard
for us on account of the effectiveness of
our actions.
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Girls at the Laura Vicuña Home.
The main contribution made
by Escondida through its
Foundation goes beyond the
resources and projects that have
benefited thusands of persons
and institutions, especially the
underpriviledged or those who
are looking for an opportunity to
maximize their volunteer work for
the benefit of the ones that need
it most.
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BHP
Billiton
FME
Board of
Directors
Rio Tinto
FME
Community Citizen
Advisory
Council
Minera
Escondida
Limitada
Escondida
Owners
Council
JECO Japan
Escondida
Corporation
FME
Operating
Team
IFC
International
Finance
Corporation
FME’s Operational Plan
I n its community work, FME maintains relationships

that are characterized by permanent feedback and mo-
FME’s professional team is responsible for managing
projects, searching for and applying the best national
nitoring of the problems and opportunities that are pre- and international experiences, coordinating strategic
sent in the social environment, particularly in the urban alliances and cooperation networks with public and pri-
and rural districts of the Antofagasta Region. vate entities. To this we can add the valuable synergy
that arises from the various awardable funds the com-
The community feedback process relies on formal en- munity can apply to in association with and supported
tities such as the Citizen Advisory Council, constituted by non-profit organizations.
by people who are prominent in the educational, social
and voluntary work fields. These people are invited to The permanent coordination with Minera Escondida is
participate in the Council, to express their concerns and also relevant, in particular with respect to improving
to provide a critical viewpoint of the projects and our social work and contributing to the vision of being a
institutional progress. responsible neighbor, committed to the community’s
interests.
On the other hand the Board of Directors has a de-
cision-making role, and other than representing the With a more global vision, Minera Escondida’s Owners
community’s interests, it also represents the challenges Council, constituted by the shareholders of the com-
of the company and of its shareholders, particularly in pany, is also a part of this permanent feedback exercise.
connection with making a contribution to effective sus- The Escondida Owners Council periodically reviews the
tainability beyond the mining activity. effectiveness of the purpose that gave birth to FME.
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A participant of the Studies Completion Program.
Board of Directors
President Bert Nacken Representative of Minera Escondida Limitada
Vicepresident Fernando Rivas Roces Community Representative
Secretary Mauro Valdés Raczynski Representative of Minera Escondida Limitada
Treasurer Jorge Muñoz Del Pino Representative of Minera Escondida Limitada
Directors Alejandro Guillier Álvarez Community Representatives

Eric Goles Chacc
Felipe Berríos Del Solar. S.J.
Lucía Santa Cruz Sutil
Glynn Cochrane Representatives of Minera Escondida Limitada

José Aguilera López
Nicolás Cruz Cruz
Honorary Directors Carlos Gajardo Roberts

Guillermo Rodríguez Rodríguez
Máximo Pacheco Gómez
A new Director is incorporated

During the first Board meeting of the year, (44th in the institution’s history), the new Director of the Foundation,
Glynn Cochrane, Senior Community Relations Advisor, Rio Tinto, was officially incorporated.
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Operating Team
Executive Director Advisors

José Miguel Ojeda Figueroa (until October 2006) Legal
Ricardo López Sánchez
Area Coordinators
Education Finance and Accounting
Juan Álvarez Guzmán (until March 2006) Profit Ltda.
Ronald Ramírez Gómez (since July 2006)
Communications
Health and Infrastructure Yuri Rojo Galleguillos
Sergio Molina Berríos
Technical Management
Social Development and Youth Zavar Consultores
Petri Salopera (until August 2006)
Mario Pizarro Delgado (since November 2006) Changes in Executive Management
After 10 years of valuable work in the management of
Indigenous Development
the institution, during which he was an important su-
Manuel Escalante Pistan
pport for the consolidation of the Foundation as one of
Information Technologies the leading entities of the country in matters of Com-
Javier Muñoz Carrazana munity Social Responsibility, the Executive Director, José
Miguel Ojeda, left his position in October. Sergio Molina
Processes
Berríos, Health and Infrastructure Coordinator, tempo-
Jorge Butte Alarcón (since August 2006)
rarily assumed said position until the end of December.
Internet and Audiovisual Resources
Carla Martínez Landsberger
Communications, Logistics and Events

Francisco Contreras Walton
Citizen Advisory Council
a s a form of fostering interaction with the community and obtaining a critical analysis of its institutional
management, Minera Escondida Foundation has a Citizen Advisory Council where different viewpoints of the
community can be valued.
The Citizen Advisory Council is comprised of 29 distinguished persons of the public, private, academic and Civil
Society sectors, which have a valuable and varied experience.
Counsellors
Agustín Llagostera Martínez Fidel Arriagada Valenzuela María Inés Verdugo Escobar
Aldo Barrales Godoy Gabriela Montenegro Rojas Miguel Sepúlveda Campos
Alejandro Bustos Cortés Geraldo Juzakos Lazo Nibaldo Acuña Camus
Alex Arroyo Meneses Hipólito Hurtado Iguail Renato Agurto Vargas
Alfonso Leppes Navarrete Hugo Donoso Palacios Ricardo Sepúlveda Bagú
Arturo Basadre Reyes Ivania Zadjelovic Araya Solange Veloso Villarzú
Carlos Sáez García Jacqueline Durán Morgado Sonia Jopia López
Catalina Jones Sepúlveda Jaime Valenzuela Acuña Tomislav Ostoic Ostoic
Eva Cruz Ramos Juan Music Tomicic Wilson Reyes Araya
Fernando Cortés Guerra Marco Kutulas Peet
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A participant in the Dental Program for Men and Women.
Outline
t he Purpose of Fundación Minera Escondida is to

Develop Human and Social Competencies, in their diffe-
Therefore, FME’s main contribution goes beyond the re-
sources and work that benefit the community. Our main
rent forms and expressions. To build a valuable legacy contribution lies in sharing experience and learning
that transcends the productive activity, contributing through a solid social network developed with public,
from the mining industry to a future beyond mining. private and civil entities.
By way of our different Strategic Objectives, FME makes As a consequence of this work, sustained by face to face
important and innovative contributions to education, so- contact, where a key component has been our learning
cial institutions health and indigenous communities, at to listen and motivate associativity, FME has been ac-
the same time opening spaces for initiatives of the same knowledged by several communities as an example of
grassroots organizations and different social entities. effective integration, synchronized with the country’s
and region’s social needs and challenges.
With community investments in excess of US$ 28.9
million in its decade of existence, the aim of Fundación Consequently, we are a tangible expression of the decla-
Minera Escondida has been to provide the necessary ration made in the Escondida and BHP Billiton Charters
tools to support the materialization of the community’s that say “we are successful when the communities in
valuable social wealth. which we operate value us as a corporate member”.
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Participants in the training program for Tourist Guides for Valle de La Luna in San Pedro de Atacama.
History
a s the first foreign mining investment in Chile du-

ring the ‘80’s, Minera Escondida Limitada commenced
Two years later, on January 24, 1996, the legal status of
the Foundation was obtained through Decree N° 95 of
operation at the end of 1990. the Ministry of Justice, and published in the Official Ga-
zette on February 13, 1996.
Conceived as a project that would change the mining
industry in Chile, both at the technological level as in Minera Escondida, through its Foundation which was
its relationship with the community, Minera Escondida officially inaugurated on July 14, 1997, faced the challen-
had to understand the complexities of human develop- ge of initiating an activity that was totally different from
ment and their history. the mining business, to respond to the community’s ex-
pectations in a different and innovative manner.
There was an unexplored space for a joint company-
community enterprise, in which the company could Conceived as a non-profit autonomous institution, in
be valued as a responsible member, committed to the these 10 years of operation FME has made a sustained
community’s needs and challenges. investment in social and community projects in the
country, with the institutional vision of “Being a
This inspired the Escondida Owners Council to create Foundation with continuous social innovation and
the Foundation in 1994, and the by-laws governing it building networks of trust, to contribute to community
were approved on August 11 of that same year. development with effective results, with emphasis on
the II Region”.
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Education is a cross sectional and
priority issue in our search for
elevating the quality of formal
teaching and materializing
initiatives to enable effective social
mobility in the mid term.
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School of Arts and Crafts for children with special requirements.
Strategic Planning Process
t he Strategic Planning Process used by FME has been adapted from that used by Escondida. The fundamental
element is the 5-Year Rolling Strategic Plan, which is updated annually on the basis of the Operations & Investments
Master Plan with a 1-year planning horizon which, in turn, is revised every 90 days in order to identify and execute
additional actions to ensure its performance.
Figure 1
FME’s Strategic Planning Process
Planning Evaluation Relevant

Plan / Action Horizon Period Indicators
FIVE-YEAR %
ROLLING 5 years contribution
annual
STRATEGIC PLAN (revised each year) to institutional
2006 - 2010 Vision/Mission
Feedback
• Transfer capabilities
• Operational efficiency
YEAR X 1 year
90 days • % Compliance of annual plan
OPERATING PLAN (revised every 90 days)
• % Co-financing of projects
• Others
Feedback
• Progress of annual plan

90 DAY • Completion of planned activities
90 days 30 days
PLAN • Budget compliance
• Others
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t he fundamental pillars of our strategic plan are the
Strategic Objectives, toward which we must focus our
institutional efforts in order to achieve goals that are
identifiable & attributable to FME in each area. These
Objectives may change as a result of changes in the ex-
ternal context and in Escondida’s requirements.
These Objectives that prioritize our social investments

based on Strategic Actions are supported by key indica-
tors and annual goals that will objectively monitor the
correct execution of the initiatives and the real impact
at quantitative and qualitative levels. This does not only
allow better monitoring, control and focus of our re-
sources, but it also generates the necessary corrections
to our programs, should we detect they may not achieve
the expected results.
The axis of FME’s social intervention and main Strategic The Second Strategic Objective seeks to Contribute to
Objective is to Strengthen Formal Education, through Social Development & Opportunity Creation, through
initiatives that promote associativity and quality, as is strategies and actions that will gradually focus around
the case of Escondida’s Network of Schools (Red de Es- the area of influence of the REME Schools. The aim is
cuelas Minera Escondida - Escuelas REME), which works a comprehensive support of social and educational de-
with schools in Antofagasta, Mejillones and San Pedro velopment of the students and their families. To attain
de Atacama.In this area, special emphasis has been pla- this objective, special emphasis has been placed on:
ced in the following Strategies: • Stimulate entrepreneurship and providing integral
• Improve learning skills in mathematics, science, En- support to female heads of household, through per-
glish, communication & language. sonal development and labor insertion programs, mi-
• Strengthen participation of local schools in national cro-entrepreneur training and leveling of studies.
and international educational networks. • Provide training to various non-profit institutions
• Provide psycho-social support to REME School stu- that are an integral part of the civil society.
dents, with emphasis in preventing risky behaviours. • Promote training in health issues, especially preventi-
• Strengthen teachers’ development through the Es- ve health and family support.
condida Pedagogical Exchange System, by way of • Stimulate youth entrepreneurship through specific
specialized training opportunities and graduate de- programs.
grees for local educators.
• Consolidate the educational intervention carried out
by the Foundation at FME’s municipal school.
• Supporting pre-school education with infrastructure
projects and programs aimed at strengthening the
teaching.
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Developing human and productive competencies with The Fourth Strategic Objective is focused on Streng-
identity in the local Indigenous Communities, particu- thening trust and associative participation capacity
larly in San Pedro de Atacama, is the Third Strategic Ob- via Awardable Funds - FOCO, which is one of the main
jective. The axis of these strategies and actions will be strategies toward installing social capital. The resources
focused on: heretofore applied for purposes of project co-financing,
• Strengthening associative work to support the muni- are now being redirected from infrastructure & equi-
cipal educational system with improvement progra- pment towards associability & training for installing
ms, especially in Municipal and Public Schools of San competencies; thus, contributing toward developing
Pedro, aimed at improving the Quality of the Formal their social capital. Four annual awardable funds have
and Intercultural Education. The production of inter- been implemented:
cultural pedagogical material to be used at communi- • Strengthening the links between REME Schools and
ty schools is also supported; their respective social environment, through the
• Continuing the university scholarship program for in- SCHOOL- COMMUNITY FOCO.
digenous students; • Strengthening civil society organizations through the
• Organizing exchange workshops about cultural iden- execution of projects funded by the FOCOS.
tity and heritage; • Strengthening the development of indigenous orga-
• Co-managing the development fund of the Peine Ata- nizations with the execution of the projects funded
camanian community; by the FOCOIN.
• Promoting programs for productive development and • Promoting the involvement of Escondida and con-
entrepreneurship in the community; tractor employees with community organizations,
• Carrying out training workshops aimed at strengthe- through the Corporate Social Responsibility awarda-
ning indigenous organizations. ble funds FOCO RSC.
Increasing the internal capacities of Methodological In- Contributing to Escondida’s Valuation, through FME, is
novation within FME is the Fifth Strategic Objective. The the Sixth Strategic Objective, where it is essential that
aim is to be able to determine and monitor the impact the actions performed are effective and generate trust
of FME’s programs in the community, which until some to obtain institutional appreciation, through strategic
time ago was hard to identify due to the complexity of management of communications. An element that
the social system. This led FME to evolve in its interven- emerges from the strategic analysis is the role the Foun-
tion style, including the following systems in its data- dation must play to articulate a system of exchange of
processing platform: social experiences. It is considered that there are ade-
• Geographic, Educational and Social Information Sys- quate conditions for the various community organiza-
tem (SIGTES): A system, used to systematize, com- tions to share their experiences, in particular those that
plement and exchange geographic information with arise from the different awardable funds. The strategies
social and educational information to improve moni- are the following:
toring of the results of the projects’ impact. • Promoting knowledge and appreciation of FME.
• Scope Mapping: this program permits the systemati- • Positioning the social and institutional projects.
zation of the crossed information obtained through • Developing the Communications Strategy.
the SIGTES. This innovation offers an important qua-
litative jump, both regarding FME’s data-processing
technologies as well as in identifying, monitoring,
evaluating and following-up the effects produced as a
consequence of the installation of the FME programs
in those groups which are subject to intervention.
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School-Community Awardable Funds.
OBJETIVES STRATEGIES
Quality Education to the REME- Minera Escondida School Network

Domestic & International Networks with the REME Schools
Strengthening Formal Education Psycho-social support to REME Schools
Improvement of Teaching Capabilitites
Consolidating intervention on REME Schools
Supporting pre-school education
Integral support to women heads of household

Contributing to Development Training the OSC Civilian Society
and Social Mobility Training for Health Promotion
Youth entrepreneurship
Quality of Formal & Intercultural Education

Developing human & Indigenous Scholarships
productive competencies Identity and Cultural Heritage
with identity, amidst Peine Fund
Indigenous Communities Productive Development & Enterprising
Training
Strengthening trust & Education & Community: FOCOS Escuela-Familia (School-Family)

associative participation Strengthening of Social Organizations: FOCOS
capacity via awardable Strengthening of Indigenous Organizations: FOCOIN
funds – FOCOS Social involvement of Escondida employees & contractors: FOCO RSC
Increasing the internal capacities Social Geographic Information

for Methodological Innovation Managing the Mapping of Scopes
Contributing to Promoting knowledge and appreciation of the FME

Escondida’s valuation Positioning social and institutional projects
through the FME Communicational Strategic Development
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The fundamental principle
behind the eduational initiatives
developed by FME in the region,
is the generation of networks
between different schools and
their surrounding communities,
fostering interaction and
developing projects aimed at
giving students an integral
education.
Students at the Fundación Minera Escondida School.

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Education children to obtain another vision of the world and share
As the main axis of the FME, Education has been a trans- the digital reality, through cooperative work, in the sub
versal and priority matter in the path towards improving sectors of learning such as mathematics, science, phy-
the quality of education and materializing experiences sics, biology and language.
that in the medium term will allow social mobility in
the most vulnerable sectors of the Antofagasta Region. The improvement of coverage and quality of English
teaching has been another priority: Ten students were
The engine of this challenge continues being the REME, granted scholarships to obtain a teaching degree in
where through the associative and integrated work English and/or Bilingual Translation at the Universidad
with different educational communities of Antofagas- Católica del Norte, who will in the future work in REME
ta, Mejillones and San Pedro de Atacama, and together schools; the implementation of the English Discoveries
with educational programs of recognized reputation program to reinforce teaching and learning of this lan-
and excellence, the first changes in the learning levels guage and; the internship program for 20 local English
have been achieved, in particular in the first years of teachers at the University of Queensland (UQ), in Bris-
Grade School Education. bane, Australia.
Among the most noteworthy results we can highlight The Ministry of Education highlighted the impact of
the Matte Reading program, which achieved that in this project, pointing out that at national level a total
the majority of the schools, first grade students were of 46 professional internships are granted, of which in
reading and writing several months before the end of 2006 the FME generated almost 50% of the total offer
the school year, successfully combining the integrated of internships of the country.
effort of students, teachers, parents and tutors.
Another important milestone for the year was the exe-
Another very motivating experience has been the in- cution of the Program “English Opens Doors – Volunteer
troduction of technology to improve learning through Center” (Programa Inglés Abre Puertas - Centro de Vo-
the Pocket PC program, which has allowed hundreds of luntarios), also in association with the Ministry of Edu-
Main Achievements
cation. This alliance allowed 33 English-speaking foreign cambio Pedagógico – TIPE) became an important space
volunteers to participate in this Project to improve the for sharing experiences and learning, introducing sub-
teaching and learning of this language, increasing the ject matters such as English, reading and writing, ma-
options of directly listening and practicing in the class- thematics, science and educational technology.
room, preferentially in municipal establishments.
Furthermore, the Master Degree Program in Quality
Owing to the Foundation’s contribution, which co-fi- School Administration and Management was initiated
nanced 60% of the Project, the program expanded from where 23 professors and directors of municipal esta-
Antofagasta to other communes, reaching isolated blishments of Antofagasta participate, with the pur-
townships, such as Socaire, Camar and Peine, to the in- pose of learning to handle new tools which contribute
terior of San Pedro de Atacama. to the integral improvement of the process of teaching
and learning, particularly within the public system. This
This Project had a special impact, as in many cases, the was possible through the associative effort of the FME,
volunteers were the only opportunity both teachers and the Education area of Fundación Chile, the Universidad
students had to practice English with a native speaker. del Desarrollo who co-finance part of this master’s de-
Some even went further and participated in volunteer gree, and the teachers themselves.
work with the community, as was the case of young
Americans who gave some entertaining lessons in Me- Generally speaking, the most relevant part of the
jillones during night time through the local radio in the educational efforts FME promotes in the region
program “Radio Gringo”. is that they tend to create spaces for articulating
networks between different schools and their edu-
In connection with the strengthening of the participa- cational communities, creating closer ties and ad-
tion of local schools in educational networks, the cycle vancing projects that allow the students to have
of Pedagogical Exchange Workshops (Talleres de Inter- access to an integral training.
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annual report 2006

Reading will change your world... “Through reading, stories especially, a different world,
unknown but enchanting, opens up, where it is possible
For an educator, one of the most marvelous moments to fly without having wings, or to dream without ha-
of teaching is when a child learns to read and write, as ving hope. For these children, reading will change their
it is a fundamental step for the social and educational world, and that is the magical part. The earlier the bet-
construction of the world. ter …”, she says.
For the teacher Zulema Rodríguez, this achievement is That is why she assures that having been able to know
particularly relevant when it comes to students of low- and apply the Matte Reading Project of the Primary Ins-
income municipal schools, like the España School, loca- truction Society, through the REME, has been a life-mar-
ted in a poor district called Pedro Aguirre Cerda in Anto- king experience in her profession.
fagasta, where she has taught for more than 15 years.
– What did the project generate?
Zulema says that learning to read and write before the – A strong impact. It was amazing to see how the
end of first grade may, in these cases make a significant parents and educational community were involved.
difference between the future success or failure of the They saw that through reading and writing the
life project of the people. world is built and defined, and therefore the future is
woven.
Main Achievements
– Is the work method innovative? – Which are the key aspects?

– Yes, but the issue goes beyond the technical and – There are many variables, but the main thing is the
methodological aspects, or the valuable training we commitment and teamwork of all those that are a
receive. What is fundamental is the relationship the part of the system.
child builds with his reality through the project, the
way we encourage them, with love and affection, to – There is always a main aspect…
make learning more effective. – From that point of view, the family involvement in
the teaching process of something as basic as reading
– What other aspects are valuable? is essential, and is, finally a master key to open the
– The experiences, the life stories that arise from the doors to a better future.
fact that everybody is rowing in the same direction.
Of seeing that the parents, by teaching their children, – And were the goals achieved?
can also learn to love them more, are motivated to – More than achieved. When all my pupils learnt to
read and, in short, that there arises the idea of impro- read before the end of the year I couldn’t believe it.
ving oneself. Really, I couldn’t believe what my ears heard when the
children proudly practiced reading out loud…
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Proyecto Lector Matte.
One of the most marvelous
moments of teaching is when a
child learns to read and write, as
it is a fundamental step for the
social and educational
construction of the world.
43
annual report 2006

Social Development One of the important projects that had priority in the
Several social initiatives were carried out during the social environment of the REME schools in Antofagasta
year, mainly in the social environment of the REME and schools that develop FME projects in the region, was
schools, through enterprise, labor insertion of parents the delivery of the “Dental Program for Men and Women”.
and tutors and stimulating the network between the More than 400 people with serious dental problems and
social organizations themselves. loss of teeth were able to recover their smile. One has to
take into account that in order to achieve an effective so-
One of the most significant achievements was the ex- cial mobility a good set of teeth can remove barriers to
tension of the Heads of Household Program beyond the labor integration and self-realization. The dental program
limits of Antofagasta, incorporating Calama and Mejillo- managed by the Rotary Club of Antofagasta, was carried
nes. The 218 women who were able to pass the courses out in the cities of Antofagasta, Calama, Mejillones and
graduated in trades such as Food Handling, Administra- Taltal, including parents, tutors and teachers.
tive Assistant, Nursing Assistant and Coast Guard.
In matters regarding the organizational and network
At the same time, other than learning a trade, these strengthening, the “Outcome Mapping” was extensively
parents were able to complete their studies and have carried out among the social organizations that parti-
access to professional aid to raise their self-esteem. The cipate in FME’s different awardable funds. Furthermore
high commitment shown by these women heads of the organizations were provided orientation as to their
household was outstanding, and was evidenced in the mission within the community, aspart of a larger objec-
low rate drop-out which was only 15%. tive of improving the way they manage their business.
160 social and educational entities participated in 15
A part of the women who participated in the Project com- workshops that covered the main cities of the Antofa-
plemented their training with the Miemprex program, gasta Region.
where they strengthened their enterprising capacities and
micro-entrepreneur development skills through a special With the same aim of improving social impact and
training process, in order to stimulate them to create their strengthening associative work of the entities, we orga-
own business or to further labor independence. nized the first “Social Experiences Exchange Workshop”
Main Achievements
(Taller Intercambio de Experiencias Sociales - TIES), in What was also relevant in this effort was to have con-
which the organizations, through a didactic method, tributed for the first time in Chile to obtain a real di-
were able to share experiences and organizational prac- mension of the economic and labor importance of Ci-
tices, and to internalize institutional training. vil Society. After three years of research the results of
the First Comparative Study of the Non-Profit Sector
More than 140 representatives of social and educational (ESFL) was completed and presented pubicly. This stu-
entities that develop projects with the FME, participated dy was articulated and administered by FME together
in this workshop. The groups came from different cities of with the Program for Development of the United Natio-
the region, and also from Santiago, Copiapó and Caldera. ns (PNUD), Fundación Andes, Telefónica Chile and go-
vernment institutions such as the Service of Technical
Within this same line of opening spaces to share expe- Cooperation (Sercotec) and the Institute of Agricultural
riences, the young people of the region also had their Development (Indap).
own space of analysis and thought, through the Third
Regional Youth Meeting. As one of the conclusions of the ESFL states, an impor-
tant achievement of the study was to obtain the su-
During two days, with the support of a role-playing me- pport of a large variety of interests and concerns to ga-
thod, close to 70 young people of the region met in Antofa- ther basic information that allowed to understand the
gasta to analyze the various challenges and opportunities scope of the work of non-profit entities in Chile. It was
that development was creating from the perspectives of determined, for instance, that these institutions are im-
Enterprise and Micro-enterprise, Volunteer Work, Culture portant employment generators. In terms of Full Time
and Identity, Education, Sports and Recreation, and Com- Equivalent, 4,9% of the economically active population
munity and Youth Movement. of Chile works in them, a figure which is four times lar-
ger than that of mining (1,3%) and more than half of
Among other achievements, it was possible to define and that registered in construction (8,1%).
agree on strategies or workplans from the young people’s
perspective, to face the challenges implied in obtaining
an effective social and community development.
45
annual report 2006

Inventiveness at the service of education... One of Pedro’s secrets is that he has taught his students
how to fish, and to transform their problems into opportu-
Gabriela Mistral said that a teacher is someone who “ex- nities. Many of these experiences have been assayed in the
plains what he knows and teaches what he is …”. This is various Fundación Minera Escondida initiatives in which he
precisely the case of Pedro González, Chemistry teacher has participated, including the Scope Mapping, Escondida
for 25 years, 19 of them in the Oscar Bonilla Technical Entrepreneurship and awardable funds projects.
School in Antofagasta.
– Has it really helped?
When he first arrived at the school, González started – The awardable fund gave us the drive we needed
teaching in the desert with a lab that had only three when working with our students. We created the Se-
test tubes. With great effort, the teacher did much with covich Association (Seguridad Ecológica para Seres
little. With much he has made marvels, but the marvels Vivientes = Ecological Safety for Living Beings). We
are still too few to be able to help all his pupils. bought sewing machines to reuse the industrial clo-
thes discarded by the mining companies and we em-
However, in spite of the needs he is grateful because al- broidered the T-shirts with our own corporate image.
though resources lack, there is abundance of inventive- Thus, the students went to their work practice with
ness. “We have made a lot of progress in equipment and the right clothes.
above all in networking with the idea of always going a
one step further. We started with 3 test tubes and now – What other milestones did you achieve?
we are teaching the specialized subjects of Chemical – With this help we were also able to transition from
Laboratory Technician, Management and Industrial Me- teaching with chalk and blackboard to working with
chanics”, he says proudly. a multimedia projector and notebook, which was
Main Achievements
fundamental to adapt ourselves to the needs of the – Have you managed to generate other cooperative
companies where our students will eventually work. networks?
And maybe what is more important is that the Foun- – Yes, and with several mining and industrial firms. For
dation is always inviting us to its training workshops, instance, in one of the encounters to which we were
where we have learnt to permanently better oursel- invited we were able to meet with people who wor-
ves, to improve our projects, to work in a computer ked in the mine. This was the connection the school
network and to look for more growth alternatives. and its students needed to work with the group of
High Tonnage Equipment Operators of Minera Escon-
– Have you had results? dida. And we have not only had access to technical
– Many results as well as many failures, as is usual in knowledge but we have also studied, for instance,
life. The main thing is that we have learnt to tolerate emotional intelligence.
frustration, which is the first step to achieve succe-
ss. Nobody used to know us before but nowadays we – And how about your emotions?
manage adequately and the companies trust us as an – Fine. I’m a happily married man with a beautiful son.
educational community and the specialization level The only bad part is that having so many activities
of our students. We have many students who are par- with my students, who sometimes consider me as a
ticipating in trainee programs. father, my family scolds me for coming home late. But
those are “occupational hazards” …
– How have you been able to improve in this way?
– There have been various factors. We have learnt to
make the best use of networking, to sell our ideas and
to associate ourselves, in particular with enterprises.
Additionally, we are always creating projects and loo-
king for other training opportunities or links.
47
annual report 2006

The Secovich Group, participate in the Achievement Mapping Workshops.
We have made a lot of progress
in equipment and above all in
networking, with the idea of
always going a one step further.
We started with 3 test tubes and
now we are teaching the
specialized subjects of Chemical
Laboratory Technician,
Management and Industrial
Mechanics”, he says, proudly.
49
annual report 2006

Indigenous Communities In the strategy of supporting the productive develop-
The indigenous communities of the region are always ment and enterprise through an effort shared with the
a priority, particularly the Atacamanian ethnic group or local township and the Electrical Cooperative of San Pe-
Lican Antai. This is evidenced in the active work carried dro de Atacama, capacities in and technical professional
out by the Office of Indigenous Affairs which has been teaching were strengthened. This network executed
operating for almost 6 years in San Pedro de Atacama, the project of implementing an electricity lab in the Li-
with the aim of fostering direct contact and further spe- can Antai School, equipped with modern facilities and
cifying the orientation of its work. tools, which will mean new labor opportunities for local
youth, through the access to the profession of Electrici-
During the year a significant work was done in streng- ty Technician.
thening the education by incorporating the E-26 Grade
School of San Pedro de Atacama to the REME. The Active For the tenth consecutive year the program of “Scholars-
Minds and Matte Reading projects, which consider that hips for University Studies for Atacameño and Quechua
language, must be the basis of the school program, here Students of the Second Region” was presented. During
also implemented. The scheme included all the commu- the year, two young members of the indigenous commu-
nity of this school, integrating students, teachers, tea- nities of San Pedro de Atacama and Chiu Chiu were able to
chers’ assistants, parents and helpers. attend university studies through this scholarship, consi-
dered as one of the most complete of Chilean university
The starting point of this important initiative begins education. Four other students obtained the renewal of
with the development of vocabulary, through written this benefit, due to their good academic performance.
and oral expression, understanding and reading habit,
with the library as the center of learning. This led to The new scholarship awardees studied Nursing in the
the implementation of a special reading room for stu- Universidad Arturo Prat of Iquique, and Bachelor’s De-
dents at the Public Library Haimaitier Turi (House of gree and English Teacher in the Universidad de Tarapacá
Knowledge). of Arica.
Main Achievements
Transparency, trust and being able to listen are crucial to To raise the standard of rural health care, the execution
obtain results in this associative work. This was put into of the project “Improvement of Access and Care Quali-
practice in the “Leadership and Conflict Solving Works- ty in Rural Health Clinics of San Pedro de Atacama” was
hop”, which was done at the request of the Foundation started in Toconao, Socaire and Peine, Atacamanian vi-
and co-financed with the local township. llages with higher levels of indigenous population.
32 indigenous leaders from 22 grassroots organizatio- The program included the acquisition of equipment and
ns from San Pedro de Atacama, Ollagüe and Calama, training of the personnel which will permit to have bet-
participated in this workshop with the purpose of sti- ter emergency care, daily and ambulatory consultations
mulating a process of participatory training of cultural and medical rounds, and the results will be appreciated
relevance. The identification of problems and conflict during the following years.
solutions improved with the workshop, both in their or-
ganizations as in their work and areas of influence. In the dynamic of face to face social intervention it has
been possible to verify that matters such as better acce-
With respect to strengthening identity, the educational ss to health and education remain priority matters for
and cultural textbook “Licana: Texto de Lengua y Cultu- local communities, especially in the indigenous area,
ra Atacameña para Nivel Básico 2” (Licana: Atacamanian with their particular cultural vision. This calls for a diffe-
Language and Culture Textbook for Grade School) was rent work focus, where the respect for the ethnic group
published in a joint effort with the Anthropology Depar- and its traditions are essential.
tment of the Universidad de Antofagasta, also co-finan-
ced by the township. The textbook, preceded by versio-
ns for other educational levels, teaches the rudiments
of the Cunsa language for the Third and Fourth grades.
51
annual report 2006

The key lies in trust... Through this Project he was also able to return to
his roots and through its management, to generate
Although the Atacamanian engineer Waldo Corantes knowledge and progress in the commune, after beco-
says, with a lot of humor, that he has never been an ming one of the first scholarship holders to obtain a
athlete nor practiced the relay race (Note: here there is a degree through the program “Scholarships for Tertiary
play upon the word “posta”. A relay race is called in Spa- Studies for Atacameño and Quechua Students of the
nish “carrera de postas” and the word used for health Second Region” annually awarded by FME.
clinic is also sometimes “posta”), he knows a lot about
“postas” in San Pedro de Atacama. He says that these ru- “It is really something of which I am very proud and I feel
ral health clinics fulfill a strategic role for the well-being doubly gratified by being able to participate in this Pro-
of the “likanas” of the areas of Peine, Socaire y Camar, ject. On one hand, due to my Atacamanian roots, and on
where the most numerous indigenous population of the other, as an ex-scholarship holder, to be able to work
the district is concentrated. side by side with my community, making a contribution
to improve the life quality standards of our commune”,
As the person in charge of the acquisitions department says Corantes.
of Health and Education of the township of San Pedro,
this engineer in International Commerce of the Univer- – Have you grown as a professional?
sidad Técnica Metropolitana, was one of the promoters – Yes, gradually. Since I entered the municipal system,
of a Project to improve and standardize the sanitary on March 2006, I have been acquiring a lot of expe-
standards in rural health clinics of the district, an ini- rience and strengthening new knowledge. However,
tiative co-financed with the contributions of the Indige- the main thing is that this opportunity has positively
nous Affairs Office of the FME. changed the opinion I had of my ethnic group and the
future of my commune, which goes to show, without
Main Achievements
demeaning anybody, that it is essential to be able to ties of Peine, Socaire and Camar, through their respec-
have in the commune more professionals with indi- tive rural health clinics, may have access to primary
genous roots and committed to their communities. health care of the same level as that of San Pedro.
– How has this opinion changed? – What is sought with this initiative?
– I have a more optimistic lookout. San Pedro de Ataca- – Together with leveling the health care standards, with
ma has new productive sources and many future ones new equipment and infrastructure, we prevent people,
in this land, besides agriculture and cattle-raising. We in particular elderly people, from traveling miles and
have to insert ourselves once and for all into tourism miles to go to a dental exam, for instance. To reduce
and profit from our comparative advantages. the levels of medical referrals and standardize the
quality of health care is fundamental in life quality.
– Which is the formula?

– Does the community perceive and value
– I think it is important to carry out long-term enterpri-
these efforts?
sing projects sustained over time and create appro-
– Absolutely. Together with education, primary health
aches because the key lies in trust. It is also very va-
care is essential and a very sensitive matter for the
luable to work in education and social strengthening
indigenous communities. This can be seen in the
matters so that the more isolated communities may
massive participation of the people in these matters,
have access to a better life quality.
particularly when it comes to validating the Commu-
– What do you think about the improvement of rural nal Development Plan (Pladeco), which defines the
health clinics? annual plan of investments …
– It will have a tremendous impact in the future. That is

why we designed this project, so that the communi-
53
annual report 2006

We designed this project, so that
the communities of Peine, Socaire
and Camar, through their respective
rural health clinics, may have access
to primary health care of the same
level as that of San Pedro.
Improvement of rural healthcare centers in Toconao, Socaire and Peine.

55
annual report 2006

Associative Participation For instance, at a global level, and in comparison with
With the passing of years and due to the institutional 2005, the funds’ co-financing grew from 25% to 31.48%,
training, FME’s awardable funds have been redirec- the network projects increased 120%, and the participa-
ted towards a larger and more effective social impact. ting institutions, 62%.
During 2000, infrastructure and equipment projects
were given priority in respone to the need expressed by The applications for awardable funds grew 15%, which
the organizations and now gradually the projects are shows the great interest and demand there exists for
addressing to training and associativity. this kind of funding, constituting a valuable opportuni-
ty to listen to the community, to obtain feedback and
Meanwhile, co-financing changed from 0 to the present build, from the base itself, the community’s valuation
30%, which allows the organizations to acquire a sense and reputation capital.
of ownership which arises when they share the risk
of investing resources of their own in their projects, During 2006 the Awardable Funds for Strengthening
becoming one of the most important strengths of these Social Organizations of the Second Region (FOCOS VI),
funds. for Development of Indigenous Projects (FOCOIN IV)
and Corporate Social Responsibility (FOCO RSC IV) were
Although this working model has implied more obliga- executed.
tions and demands for the community entities, both in
the formulation as in the progressive increase of the Furthermore, for the first time the School - Community
projects’ co-financing, the interest for participating in Awardable Fund (FOCO ESCUELA – Comunidad I) was
the funds has grown and the organizations have un- implemented, oriented to strengthening the liaison
derstood that this formula is essential to obtain auto of the Schools with their social environment, and had
sustainability. great relevance due to the participation of several net-
Main Achievements
works comprised of schools, parents’ associations, com- The FOCOIN IV, which was directed at indigenous so-
munity organizations, students’ centers and private and cial organizations from the province of El Loa, selected
academic entities. a total of 12 projects. To improve the impact and ma-
nagement of the entities, before starting their execu-
An indispensable requirement was that the Project had tion, FME organized the workshop “Construction of the
to be focused on an educational community, in partner- Vision Projects FOCOIN IV”, with the participation of
ship with other entities matters oriented a strengthe- representatives of the benefited communities, namely,
ning, the system either through culture, sports, values’ Río Grande, Camar, Toconao, Taira, Ayllu de Cucuter, Ca-
orientation, extracurricular activities or support to spe- lama and San Pedro.
cific subjects. Altogether 27 associative projects were
executed with the online participation of 90 entities. The aim was to motivate the selected organizations to
create the vision of their projects, to obtain a commit-
With regards to the quantitative impacts, the FOCOS VI, ment with the proposed objectives and to generate a
which works preferably with unitary projects and within space of trust for the future appraisal of the final results.
a network with social organizations, 27 projects, mate-
rialized, 50% of which occurred in the district of Antofa- Another example of social participation, but focused
gasta, and the remaining was distributed in other cities on stimulating volunteer work done by ESCONDIDA’s
of the region. The initiatives placed special emphasis on workers and contractors in benefit of the community by
social, community, quality of life, education, personal associating themselves with social organizations, is the
development, entrepreneurship, sports, culture, compu- FOCO RSC. In its fourth version, the fund executed 12
ter knowledge and drug prevention matters. initiatives, with the direct participation of 26 entities.
57
annual report 2006

Children at the Laura Vicuña Shelter, and participants of the Corporate Community Responsibility Awardable Funds.
Main Achievements
Another aspect to be highlighted in the development of In this sense, a distinctive feature of the associativity
the projects is the commitment and participation of the promoted by FME through its four bidding funds, which
volunteers in enlistment and safety training sessions of has been reinforced by the workshops of exchange of
the community, and of the organizations themselves, social experiences, is that in promoting networking the
which is an important addition to this program. shared training helps the entities to improve their own
practices, maximizing their performance to the benefit
of the communities with which they work.
Table 1
2006 Awardable Funds Situation
FOCO School
BIDDING FUND FOCOS VI FOCOIN IV FOCO RSC IV & Community
N° Bidding Applications Requested 442 75 100 239

N° Projects Submitted 48 14 24 38
N° Selected Projects 41 12 12 27
N° Institutions Participating
in Selected Projects 61 18 26 90
N° Executed Projects (2006) 27 11 12 26
N° Projects under Development (2007) 14 1 0 1
N° Cancelled Projects (without execution) 0 0 0 0
Actual Social Investment Amount
(FME contribution) (a) $75,496,294 $25,708,032 $42,786,807 $77,772,288
Counterpart Co-financing Amount
(Contribution of Institutions) (b) $32,363,997 $11,463,050 $14,262,270 $42,188,266
Total Amount (a + b) $ $107,860,291 $37,171,082 $57,049,077 $119,960,554
59
annual report 2006

One has to learn to put oneself in Antofagasta former patients of this rehabilitation
in the place of the other... center, through which the young girl developed and led
an innovative project to sensitize the school communi-
The expressive eyes of Karla Miranda brighten up when ty about the frustration and psychological pain of the
she talks about her dreams. One of them is to get to people that suffer from any discapacity.
know Diego Torres, who sings “Color Esperanza”, the
hymn that is an inspiration for her and feeds her illusio- With the support of FME, the Association “Pas: Amistad
ns of improving herself, in spite of the Apert syndrome y Servicios”, plus the participation of a kinesiologist of
that has malformed part of her delicate body. the Teletón, the young people of the JAT visited more
than 6 establishments of Antofagasta.
Karla wants to know that it is possible …that there are
spaces in which to progress; that just nice her, there Together with their life testimonies, the idea was to
are many who are trying and that some day may be show and put themselves in the place of the other, to
able to succeed. be able to see what the persons suffering from any dis-
capacity feel, when they are made fun of or suffer from
The struggle of this 22 year old girl from Antofagasta social isolation.
has known no respite or truce. But, curiously, what least
worries her is her serious disease. Her great challenge Karla specifies that “this is a latent problem in society,
lies in the invisible, silent and always present enemies in which is generated in school, where the children, due
the world of the handicapped: discrimination and lack to their ingenuity, can be very cruel if they do not have
of opportunities. a real sensitization to this problem. Together with tea-
ching them to put themselves in the place of the other,
Her ally in this battle is the entity Teletón Youth Ac- they must also teach the people who are different or su-
tion (Jóvenes Acción Teletón -JAT), which congregates ffer from any discapacity”.
Main Achievements
– Have you been subject to discrimination? – What is the greatest pain when you suffer from some
– Not only to discrimination, but also to mockeries and discapacity?
rejection. They consider us as aliens. I am strong, but – Psychological pain because it leaves no physical scars
I have some friends who are deeply affected. My only and is borne within oneself, many times in silence.
problem at the moment is that I cannot find work to That is also why it is the pain which is hardest to re-
be able to save some money to study and become a pair and that is why it is essential to carry out this
professional. kind of projects in the early school years…
– Have you thought about any profession – How did it work?

in particular? – Very well because I think they got the message and
– I like Differential Education or any other related pro- learnt a lot. The school children created awareness
fession to work in the field of discapacity. I believe I about what it is to suffer from some incapacitating
was born to help people … problem …
– What are the things that make you happy? – Together with helping others, what are the other
– Improving myself, creating things or making projects. things that give you a thrill?
For instance, with the initiative of the JAT and the – I love to write. I wrote this poem to my mother: I
Foundation we obtained much satisfaction, specially at swam in the sea of your womb, during nine months I
a personal level, because we shared experiences with lived in that happy world; you taught me to breathe,
hundreds of children who for a while put themselves to feel you, above all I listened to your loving; as con-
in our place. We made them go around on wheelchairs, ches who listen to the sea …
walk with crutches or use mittens to pick up things.
61
annual report 2006

We experienced many
satisfactions, especially on a
personal basis, when we interacted
with hundreds of children who,
for a moment, put themselves in
our place. We made them sit on a
wheel chair, walk with crutches or
wear mittens to pick up things.
63
annual report 2006

Costs and Social Investment
The management of internal processes have been in
constant development and improvement, principally
in the systems that provide support to the institution.
The monthly information submitted to the Board of
Directors and the Citizen Advisory Council is provided
by the database platforms which control the financial
and technical aspects of the institutional work in real
time. Among other things this information has allowed,
to establish performance indicators which permit
applying corrective measures when the results are not
as expected.
Figure 2: shows the historic evolution of the adminis-

tered amounts, since 1996 until December 31, 2006.
The Cost Structure of FME (Table 2), specifies the destina-

tion of the resources and of what is effectively invested
in each one of the Projects. The Total Social Investment
corresponds to the sum of the Direct Social Investment,
plus the Indirect one. The Operational Efficiency Index
(IEO), shows the Social Investment percentage effecti-
vely received by the participants calculated on the basis
of the Total Social Investment.
Figure 2
Historic Evolution of Costs and Social Investment
4000
3.559
3500
3.136
3000
2.531
2500
Millions Ch$
2.001
1.928
2000 1.870
1.746
1.687
1.614
1500 1.338
1.225
1.142
1.014 1.039
1000 850
803
526
434 432
500 266 264 258 271 266 229
198 200 225 234 226
137 146 148 165 134
20 40 75 58 72 49
10 6 3 9 9 5 24 0 18 30 15 25 10 26
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Investment Administration and Fixed Costs Indirect Operational Costs Total Social Investment (Direct and Indirect) Total
Table 2
Unbundled Total Investment, period 1996 - 2006
Item 1996-2000 2001 2002 2003 2004 2005 2006
Investments 64,035,330 14,680,438 25,058,399 71,562,497 10,043,557 25,644,753 49,101,229
Administration and Fixed Costs 516,327,825 165,402,413 198,129,057 225,408,031 264,495,947 225,661,329 266,389,798
Operational Costs 114,308,650 134,120,942 199,889,106 233,646,825 257,620,610 278,328,608 229,136,166
Strategic Development (*) 87,485,856 82,694,989 176,708,222 75,345,943 51,073,331 95,446,941 64,443,946
Indirect Social Investment 193,441,537 220,083,056 192,042,245 182,704,291 114,096,798 71,723,734 69,294,137
Direct Social Investment 2,162,951,403 1,393,567,386 2,944,364,468 1,817,897,943 1,223,519,294 1,160,575,240 1,073,059,229
Total 3,138,550,601 2,010,549,224 3,736,191,497 2,606,565,530 1,920,849,537 1,857,380,605 1,751,424,505
65
annual report 2006

According to the aforesaid, the Total Social Investment corresponds to the sum of the Direct Social Investment plus
the Indirect one. The IEO (Figure 3), calculates the Social Investment percentage effectively received by the partici-
pants calculated on the basis of the Total Social Investment.
Figure 3
Historic Evolution of the Operational Efficiency Index, IEO.
3500 96,0
95%
3.136
3000 94% 94% 94,0

93%
2500 92% 92,0

91% 91%
2.001 91%
Millions Ch$
2000 90% 90,0
(%) OEI
1.614
1500 1.338 88,0

1.225
1.142
86%
1000 850 803 86,0
434
500 266
84,0
3
0 82,0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Total Social Investment in Social Projects (Direct & Indirect) Operational Efficiency Index
Another indicator which allows measuring the annual Table 3

2005-2006 Global Operational Efficiency Index (IEOG)
institutional performance is the Global Operational Effi-
ciency Index (IEOG), which measures the percentage of
2005 2006
Total Social Investment, including the co-financing of
Target 71% 68%
counterparts, over the total expenses done in FME. This
Real 71% 72%
indicator takes into account all the resources with whi-
ch FME operates, as what is contributed by the partner
institutions in the projects, enters the Institution and is
administered by it.
The Administration Costs permit to keep in operation jects. The percentage value of the Administration Costs
the organizational structure of Fundación Minera Es- with respect to the Total Investment for 2006 had a slight
condida. They consider the physical spaces and various increase with respect to 2005, but remains within the le-
services necessary for the execution of the social pro- vels considered appropriate for these kind of institutions.
Figure 4
Evolution of Management of Administration Costs + Fixed Costs
3500 3.736
35
32%
3000 30
26%
2500 2.607 25
% Administration Cost
Millions Ch$
2000 2.011
20
1.921
1.842
1.751
1500 13% 14% 15%
15
14% 14%
1.101 12%
1000 1.035
9% 10
8%
531
500 432
5%
5
40
0 0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Total Investment % Administration Cost
67
annual report 2006

Participants
d uring 2006, the participants in the projects finan-

ced and co financed by FME, reached a total of 18,537
of Antofagasta – SOME which brought some 178,666
people, a figure that contributed to 81% of the bene-
people. This diminution compared to previous years is ficiaries of said year. In 2006 the institutional work was
related to the reduction of the projects developed in the highly focused working with a reduced number of par-
health area, which generally include a large number of ticipants to improve the impact. To the participants of
participants. An example of this occurred in 2005 with this year we can add the projects executed in previous
the Project of Equipment of the Service of Statistical years which continue benefiting the community which
Medical Orientation Service of the Regional Hospital included during this year 673,843 people. (Figure 5).
Figure 5
Evolution of the Number of Participants
800,000
700,000
220.614
600,000
18.537
500,000
Participants
479.873
400,000 407.096
51.645
56.257
300,000 298.871
79.895 247.218
200,000
85.254
100,000 116.835
28.182
779 4.570 8.651
0
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Year 2006 Participants Previous Year

Number of Projects
t o count the number of projects it is considered

that their “existence” expresses itself through a con-
Finished Projects
The projects considered as finished are the ones that
vention of legal value which sets out the obligations have had an accounting closure during the year, without
of the appearing parties. The limitations of this cri- taking into account its start date.
terion are that it does not discriminate the projects
with respect to the amount of resources individua- Projects under Development
lly involved. Its advantage is that each convention The projects under development include those that
must be entered into FME’s Project Control System, are still continuing, both in the technical and accoun-
in which each Project always has someone in char- ting aspect, at the end of the respective year. They may
ge, permiting to record online and in real time all the have been created during the year or belong to a project
history and learning ensuing from its performance. whose duration exceeds twelve months, or may well be
a project of previous years.
Figure 6
Historic Summary of Annual Projects
250
146
171
200
150
127
N° of Projects
150 113
56
100 44
80
22
50 55
18 44
40
10 33 32 30
3 17 19
10
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Completed Ongoing
69
annual report 2006

FME’s work has been recognized
by different communities as an
example of effective integration,
that is tuned in with the social
needs and challenges that the
region and the country experience.
71
annual report 2006

t he summary of projects and their status as of December 31, 2006, is presently shown. They are ordered
by area of intervention and strategic objective, identifying their status as of December 31, 2006, the place
where they occurred and the real associated investment.
Education Projects
Strategic Objetive: Strengthen formal education
Status as of Investment
Strategy Projects and/or Programs 31/12/2006 Location 2006
Quality of Education Matte Reader Project In development Antofagasta 52,203,811

in the Minera Active Minds program
Escondida School Grades 5 and 6 In development Mejillones 2,666,667
Network (Reme) Active Minds program
Grades 5 and 6 In development Antofagasta 20,000,000
English Discoveries for Grade Schools In development Antofagasta 56,298,135
Mobile technology program
for Grade Schools (Pocket PC) In development Antofagasta 30,667,439
Curricular development for Mobile
technology in Grade Schools In development Antofagasta 10,000,000
English speaker
volunteer program Completed Antofagasta 49,743,908
National and i-Net Completed Antofagasta 5,168,556
International
Education Networks i-Net Projects 2006 Completed Antofagasta 4,015,236
Teacher Escondida pedagogical
Development Initial exchange program (SIPE) Completed Antofagasta 7,320,483
Formation Masters in Quality Asministration and Management In development Antofagasta 18,200,000
and Training School Certification Consultancey - Fundación Chile Completed Antofagasta 507,308
CEIM Scholarships In development Antofagasta 18,000,000
FME Scholarships for English teachers 2006 In development Antofagasta 11,745,000
Matte Reader project at Escuela Rafael Sanhueza Completed Santiago 22,750,000
Field supoprt for Queensland University Internship program In development Antofagasta 10,435,800
Pre-school Architecture and engineering for: Construction and
Educaction furnishing of three Pre-Schools and 12 Day care Centers Completed Antofagasta - Calama 18,953,437
Reinforcement Matte Reader project at Escuela FME - 2006 Completed Antofagasta 10,836,293
of Reme Psyco-social support program for Escuela FME Completed Antofagasta 3,070,000
School Programs Maintenance at Escuela FME 2006 In development Antofagasta 29,598,706
Study: Evolution of the academic results at
Escuela FME - REME and others Completed Antofagasta 1,214,870
Promote student enrollment at Escuela FME Completed Antofagasta 930,167
Electrical maintenance at Escuela FME Completed Antofagasta 18,950,265
Total 403,276,081
Tables of Projects
Social Development Projects

Strategic Objetives: Contributing to Development and Social Mobility
Integral Support Women heads of household (PJH)

to Women Escondida Fosters Employability Completed II Region 64,573,799
Heads of Women heads of household (PJH) Formation of
Thouseholds mico-entrepreneurs (MIEMPREX) In development II Region 32,598,824
Women heads of household (PJH) – Compeltion of Studies Completed Antofagasta 2,133,328
Civil Second cycle of Associativity and
Sociaety Training Outreach Mapping Completed II Region 13,374,179
Seminar Youth Today Completed Antofagasta 13,325,731
Comparative Study of Non Profit
organizations - Chile (ESFL) Completed II Region 8,696,968
Exchange of Social Experiences Workshop Completed Antofagasta 504,520
Assocaitivity Workshop Cycle In development Antofagasta 5,000,000
Health Dental Program for Men and Women Completed Antofagasta 53,130,895
Intermediation Labour Office Diasble People
(carryover 2005) Completed Antofagasta 2,600,000
Youth Evaluation of the Impact of the Escondida
Entrepreneurship Entrepreneurship Program Completed Antofagasta 6,614,400
Miemprex Seminars Completed II Region 4,096,925
Escondida Entrepreneurship Program Completed II Region 49,000,000
Total 255,649,569
73
annual report 2006

Indigenous Community
Strategic Objetive: Devecop human and productive capabicities with identity in the indigenous
Communities.
Quality of formal Matte Reader Project & Pedagogical Support Completed San Pedro de Atacama 13,231,299
education Furnish Reading Room of library in the Cultural
Center Turi-House of Knowledge at San Pedro de
Atacama Completed San Pedro de Atacama 3,191,781
Active Minds program - Fundación Minera
Escondida, for Math and Science in Grades 5 and 6
Completed San Pedro de Atacama 8,606,250
Support to the District Educational System at San
Pedro de Atacama and Evalauation of the Results Completed San Pedro de Atacama 1,139,829
Textbook for Atacameninan Language and Culture - Grade 3 Completed Comunal 6,000,000
Furnish the Electricity Laboratory at the Likan
Antai High School Completed Comunal 23,150,050
Indigenous University Scholarships for Atacamenian and
scholarships Quechua Students from the II Región Completed San Pedro de Atacama 17,726,252
Peine fund Peine Fund Completed Peine 22,937,449
Productive Map of available productive incentives and
development & possible niches in San Pedro de Atacama Completed Comunal 2,000,000
entrepreneurship Improve Access and Quality of Service at the Rural
Medical Centers at San Pedro de Atacama Completed Peine, Socaire, Toconao 9,221,744
Miemprex Seminar in San Pedro de Atacama
Completed San Pedro de Atacama 2,991,000
Training Training for Indigenous Social Organizations Completed San Pedro de Atacama 3,440,104
113,635,758
Tables of Projects
Associative Participation
Strategic Objetive: Strengthen trust and associative participation through acuardable funds.
Projects and/or Programs Status as of Investment

Strategy FONDO ESCUELA Y COMUNIDAD 31/12/2006 Location 2006
School and The community is committed to its children and

Community Fund encourages reading Esc. F-96, CGPA F-96, J.Vecinos
Vientos del Sur y Comité Selecc.Libros Completed Antofagasta 1,073,723
Mejillones, Past, Present and Future, a Live History
Esc E123, CGPA. Madres Hijas de Mejillones y
J.Vecinos J.Panadés B. Completed Mejillones 1,461,600
From the High Scool to the Home: We will face
emergencies with prevention, Liceo C-3, CGPA C-3,
Unión Comunal de Junta de Vecinos Completed Tocopilla 2,786,556
Social leadership and Social Entrepreneurship, The
Giant School, CGPA The Giant y Grupo Pastoral
Juvenil Parroquia San José Catedral Completed Antofagasta 3,500,000
Matematics brings us close to the family and the
community, Jardín Infantil FME, CGPA J.I.FME y
Centro de Madres Algo Nuevo Completed Antofagasta 938,394
Enhance brilliant minds through computer
technology, Jardín Infantil Caracolito, CGPA
J.I.Caracolito y SERPAJ Chile Completed Antofagasta 419,979
Physical excersise and adequote eating habits we
will achieve better quality of life, Esc.Esp.F-9, CGPA
F-9 y J.Vecinos J.Santos O. Completed Tocopilla 3,906,694
A Library for my Community, Esc. D-137, CGPA D-
137, Iglesia Evangélica Pentecostal de Chile y Club
Deportivo Escolar Esc. D-137 In development Tocopilla 5,000,000
Learning Modules through Geometry, Esc. D-126,
CGPA D-126, Club Deportivo Esc. D-126, Esc. E-34
y Esc.D-54 Completed Calama 1,729,522
Implementation of School Band, Esc. D-68, CGPA
D-68, Club Deportivo Esc. D-68 y Banda Escolar
Esc. D-68 Completed Antofagasta 350,000
Responsible Love 2006, Liceo A-17, CGPA A-17 y
Club de Damas Rotarias Rotary Club Antofagasta Completed Antofagasta 1,166,667
A Friend Always in Traffic: Implementation of the
School Safety System, Esc. E-67, CGPA E-67 y Pref.
Carabineros Afta N°4 Completed Antofagasta 2,750,034
Equinotherapy and Autism “An Oasis in the
Desert”, Esc. Esp. RAICES, CGPA RAICES y CGPA
ISMA Completed Antofagasta 1,128,400
English for Everyone, Colegio Montessori, CGPA
Montessori e Iglesia Evangélica Bautista Getsemani Completed Antofagasta 4,173,784
75
annual report 2006

School and Preparing Ourselves to Achieve Effective Learning

Community Fund in our Educational Community, Esc. F-53, CGPA
F-53 y Agrupación de Sordos del Loa Completed Calama 1,640,420
Digital Alfabetization for our School and
Community, Esc. D-7, CGPA D-7 y Junta de Vecinos
21 de Mayo Completed Tocopilla 4,550,000
Psicosocial Support for the Students, Liceo B-29,
CGPA B-29, Acción Social de Apoderados B-29, Esc.
F-96 y CGPA F-96 Completed Antofagasta 3,500,000
Reading School - Everyone´s Responsibility,
Community Challenge, Esc. D-138, CGPA D-138 y
Club Social Deportivo Villa Gabriela Mistral Completed Antofagasta 2,155,718
School Community Progressing Towards Special
Education for Chilfren and Tennagers, Esc. Esp. E-77,
CGPA E-77 y Agrupación Síndrome de Down Afta. Completed Antofagasta 2,333,000
School and Community - Preventing Violence, Esc.
E-12, CGPA E-12, Grupo Vecinos Organizados del
Colectivo Oriente, Esc. E-3 y CGPA E-3 Completed Tocopilla 3,611,380
Beyond Silence, Esc. D-7, CGPA D-7 y Jardín Infantil
Los Siete Enanitos Completed Tocopilla 1,730,471
An Innovative methodology to Unlock
Unmeasurable Human Potential, Esc.Párvulos
San Luciano, CGPA San Luciano, J.Vecinos Pta.
Angamos, Liceo C-18 y Esc.E-132 Completed Mejillones 3,500,000
High School Students Face their Youth Challenges,
Liceo A-15, CGPA A-15, CEAL A-15 y Corporación
Cultural Galnut Completed Antofagasta 10,849,825
Improving Quality of Life with Innovative
Teaching Strategies, Esc.Esp.Camino de Amor,
CGPA C.de Amor y Comité Vivienda Un Camino
por Recorrer Completed Calama 3,426,171
Affectiveness and Sexuality in our Children, Jardín
Infantil Capullito, GGPA J.I. Capullito Completed Antofagasta 303,333
Protecting the Environment for our Young People,
Colegio Ejército de Salvación, CGPA E. Salvación y
Ejército de Salvación Completed Calama 5,965,000
School, Family and Community
United to Improve, Colegio Femenino
Madre del Rosario, CGPA Madre del Rosario
y Fuente Nueva Vida Completed Antofagasta 4,928,126
Social Fund Furniture Workshop, Agrupación
Artística Trébol Dorado Completed Antofagasta 700,000
Practicing and Fostering Cheerleading,
Agrupación Elite Black Devil Cheer Completed Antofagasta 377,993
Audiovisual Training for Teenagers
in Social Risk at Miramar Central, Agrupación
Juvenil “Nace una Esperanza” In development Antofagasta 2,551,500
Tables of Projects

Social Fund Formation of Monitores for Non

Discrimination of the Disabled in School,
Grupo Jóvenes Teletón Completed Antofagasta 146,995
Down Artisans, Agrupación Síndrome
de Down de Antofagasta - ASDA In development Antofagasta 1,933,112
Development of Social and Human Capabilities
in Children under Social Risk, Agrupación Social
Cruzada Cristiana por los Niños Completed Antofagasta 1,724,989
Construction of Batting Tunnel, Asociación de
Béisbol y Softbol Antofagasta Completed Antofagasta 3,635,970
Responsible Ownership of Thouse Pets, Asoc.
Médicos Veterinarios Afta - AMEVET y Unión
Comunal de J. Vecinos Afta Completed Antofagasta 3,210,988
Labour Training for Women Heads
of Households, Buen Pastor Antofagasta y
Pastoral para Inmigrantes In development Antofagasta 1,263,069
Fashion and Crafts Workshop,
Centro de Madres Lenka Franulic y Centro
de Madres Gabriela Mistral In development Antofagasta 952,000
Information technology, a Support Tool for the
Highschool Band, Centro de Padres Liceo A-15
Mario Bahamonde Completed Antofagasta 398,986
Creativity: Art, Therapy and Autism, a Hope
of Breaking the Silence, Centro de Padres y
Apoderados Escuela RAICES Completed Antofagasta 1,565,907
Parents Towards an , Information Technology
Future, Centro General de Padres y Apoderados
Escuela Gustavo Le Paige de Walque Completed Antofagasta 2,996,000
Hair Dressing Course, Centro Social Hermann
Gmeiner Aldeas SOS, Hogar Comunitario Gotitas
de Amor y Hogar Comunitario Nubeluz In development Antofagasta 1,379,000
The Little Brilliant Ones, Club Social y Deportivo
Los Pequeños Brillantes Completed Antofagasta 1,014,160
Cultural Adventure II, 2006, Compañía de Teatro
Independiente “Teatro de los Sueños” In development Antofagasta 1,166,666
Food Processing Techniques and Kitchen
Equipment to Improve Meal Provision to
Undrepriviledged Groups, Com.Parroquial
Transfiguración del Señor Completed Antofagasta 937,034
Optimize Education for Cancer
Prevention in Antofagasta, Corporación
Nacional del Cáncer - CONAC Completed Antofagasta 874,916
Training on Ventilation and Forced Entry
Techniques, Norma NFPA 1001, Cuerpo de
Bomberos de Antofagasta Completed Antofagasta 3,500,000
Together we can Achieve More, Fundación Hogar
de Cristo Antofagasta In development Antofagasta 2,048,128
77
annual report 2006

Social Fund Sea of Hope for our Children, Fundación Tierra de

Esperanza - Proyecto Sullay In development Antofagasta 1,293,317
LMA_Pro – Secovich, Grupo Juvenil Ambientalista
SECO-VICH In development Antofagasta 2,343,460
Promotion of Healthy Lifestyles, Junta de Vecinos
Nº43 y Centro Infanto Juvenil El Trigal Completed Antofagasta 3,689,000
Safe Building and Risk Prevention, Liga Contra El
Mal de Parkinson Completed Antofagasta 785,051
Growing Towards Employability and
Micorcompanies, Parroquia Nuestra
Señora del Carmen Completed Antofagasta 1,651,993
Eco Education Workshop, Red Eco-90 Completed Antofagasta 140,000
Projecting Our Children’s Lives with a Positive
Vision, Servicio para el Desarrollo Cristiano Completed Calama 2,011,366
Modern Technology is Reachable, Sociedad La
Mujer y Adulto Mayor Renacer Mutualista In development Antofagasta 910,000
Education - Canine Control and Strengthening
regional Image, Red Agrupación Amigos de los
Animales AAA In development Calama 8,050,000
Empowerment School for Leaders, Agrup.Social,
Cultural, Recreativo y Dep.de Mujeres Progresistas
del Loa y Red Mujeres del Loa In development Calama 928,118
Purchase of Computers, Centro General de Padres
Escuela Andrés Bello Completed Calama 1,486,100
Improving our Management Skills with the Computer,
Centro General de Padres Escuela Kamac Mayu Completed Calama 1,321,740
Cooking Course for Diabetic Patients
and Assistants in Food Preparation,
Club de Leones Calama Completed Calama 1,248,569
Digital Alfabetization:
An Integral Rehabilitation Tool,
Comunidad Terapéutica CEPAS Completed Calama 622,853
Training, Social & Economic Insertion to
Community Life for HIV Positive People, Corp.
Benef.Regazo de Cristo y Of. Apoyo Comunitario y
Acción Social In development Calama 2,551,500
My Limitations do not Prevent me From Living a Health
Life, Corporación de Rehabilitación y Capacitación Laboral
para Deficientes Mentales - CORCALDEM In development Calama 1,597,924
Preparation of Educational Videos for Healthy
Lifestyle and Cancer Prevention, Liga Chilena
Contra el Cáncer de Calama Completed Calama 5,000,000
Training for Schools that Provide Differential
Education, Agrup.Padres y Amigos de Niños
Autistas - APANAL, Esc. RAICES y Agrup.Padres y
Amigos de Niños Especiales Completed Calama 3,217,200
Tables of Projects

Social Fund Music and Dancing Training, Conjunto Folclórico

Renacer Pampino Completed María Elena 847,000
Course for Bar Service and Cooking, J.Vecinos Nº8
Ampliación Ferrocarril, J.Vecinos Nº2 C.Urzúa,
J.Vecinos Nº01 J.Panades B. y Club Social y Dep.
Fertilizantes Completed Mejillones 2,479,211
ExpresArt: Young Art and Culture School -
to Show What we Are, Casa de la Cultura y Todas
las Artes de María Elena y Agrup.Juvenil “EJE Sol
de Esperanza” In development María Elena 843,010
Evaluation of FOCOV and carry Over projects from year 2005 Completed Antofagasta 2,149,481
Indigenous Fund Promote our Music and Image,
Comunidad Atacameña de San Santiago
de Río Grande y Banda Instrumental Renacer
de Río Grande Completed San Pedro de Atacama 1,820,000
Provide Costumes for National and Andean
Folklore Activities, Grupo Social, Cultural y
Deportivo del Pueblo de Coska Abarsak Completed Ollagüe 1,336,900
Developing Ideas for the Senior Citizen,
Club Adulto Mayor Simón Benítez Completed San Pedro de Atacama 1,050,000
Arts and Crafts School for Children with Special
Requirements in San Pedro de Atacama, J.Vecinos
N° 1 SPA y Agrupación de Padres de niños con
necesidades especiales de SPA In development San Pedro de Atacama 2,378,177
Training and Equipment for People Working at
the Geiser del Tatio, Comunidad Atacameña de
Toconce Completed Toconce 2,345,000
Training and Construction of Pens for Protection
and Breeding of Fowl, Comunidad Indígena, Ayllu
de Cucuter Completed San Pedro de Atacama 3,323,040
Training for Tourist Guides and Land Owners at
Valle de la Luna, Asociación Valle de la Luna In development San Pedro de Atacama 1,178,375
Home-School Joint Work, Com.Atacameña de
Solor, Com.Atacameña de Camar, Com.Atacameña
de Talabre y CGPA Esc.San Bartolomé de Socaire Completed San Pedro de Atacama 3,101,000
Stage 3 of Water Transportation
with 75 mm. H.D.P.E. Piping,
Asociación de Regantes Paso Jama Completed San Pedro de Atacama 1,400,000
Indigenous Youth Bet on their Development:
Organization, Preservation of our Culture and
Improvement of Our Academic Results, Asoc.Indígena
Quechua Inti Llajta y Agrup. Juvenil Rostros del Desierto Completed Ollagüe 1,379,000
Children Musical/Artistical Group in the
Community of Taira, Comunidad Indígena
Atacameña de Taira Completed Calama 1,176,700
79
annual report 2006

Indigenous Fund Recovery and Added Value to Agriculture, Com.

Atacameña de SPA y Grupo de Regantes y
Agricultores N° 7 de SPA Completed San Pedro de Atacama 4,046,484
Carry Over of FOCO
In III and FOCOIn IV Completed San Pedro de Atacama 3,470,626
Corporate Social Training in Computer Skills and Formation of
Responsability Parent Monitors, Club Deportivo Social Jorge
Fund Álvarez - Turno D y CGPA Escuela D-121 Completed Antofagasta 6,000,000
Furnishing of Community Center and Catering,
Club Social y Deportivo Solmec (Soldadores-
Mecánicos), Agrup. Adultos Mayores Jesús Obrero,
Grupo de Adulto Mayor Otoñal y Centro de
Madres 10 de Octubre Completed Antofagasta 5,717,948
Furnishing of Entrepreneurship Development
Center, La Pintana - Santiago, SBS BHP
Billiton Santiago y ONG de Desarrollo Corp.de
Beneficencia Jesús Niño Completed Santiago 5,331,631
Forma Violin Group at Escuela
Nueva Luz - Stage I, Melodías de la Nueva Luz
y Corp. Atención Integral al Ciego
y Disminuido Visual Completed Antofagasta 2,000,167
Psyco-pedagogical Support and Computer
Training for Girls from the Laura Vicuña Home,
Grupo de Amigos Hogares de Niñas y Fundación
de Beneficencia Hogar de Cristo Completed Antofagasta 2,040,000
Improve Installations and Equipment at the
Special School Rayito de Sol, Ames Chile Industrial
Ltda. y Corp. Ayuda al Niño Limitado - Escuela
Especial Rayito de Sol Completed Antofagasta 4,316,352
Furnish Open Kitchen Santísima
Trinidad, Comité de Damas
Minera Escondida Ltda. y Arzobispado
de Antofagasta Completed Antofagasta 2,084,648
Furnish Audio-library: A Place to Listen and Learn,
Equipo Mantención Turno E Área Seca Planta
Óxido y Baeza y Vargas Ltda. - Esc. Especial de
Lenguaje Mis Mágicas Palabras Completed Antofagasta 2,232,704
Prevention of Drug and Alcohol
Consumption in Teenagers,
Alianza Estratégica por una Vida sin Drogas
y Hogar Crea Chile Completed Antofagasta 937,485
Improve Installations in Pre School Palomita
Blanca at Caldera - III Región, Grupo Ayuda
Solidaria Mecánicos G y Fundación Educacional
para el Desarrollo Integral del Menor Completed Caldera 3,098,176
Extension of the Kitchen and Dining Room at the
Don Orione Home, Otraco Chile S.A. y Congregación
de Pequeñas Hermanas Misioneras de la Caridad Completed Antofagasta 5,037,800
Tables of Projects

Corporate Social Improve Installations of the Sendero Children’s

Responsability Home at Copiapó - III Región, Turno G-1 y otros y
Fund Fundación Tierra de Esperanza Completed Copiapó 4,897,710
Awardable Funds for Corporate Social
Responsibility, FOCO RSC IV and Evaluation of
FOCO RSC III In development Nacional 728,149
228,851,175
Community Valuation of Minera Escondida

Strategic Objetive: Social Research and Investigations.
Research and Comparative study of

Investigations non-profit sector Completed Community 71,647,036
Total 71,647,036
Total Direct Investment 1,073,059,619
81
annual report 2006

Educadora de la escuela Fundación Minera Escondida participante del Programa Dental para hombres y mujeres.
Más de 400 personas, con graves
problemas odontológicos y pérdida
de piezas bucales, pudieron
recuperar su sonrisa. Esto,
tomando en cuenta que para lograr
una efectiva movilidad social una
buena dentadura permite derribar
barreras para la integración laboral
y la realización personal.
83
annual report 2006

Figures in thousand
chil
ean
p es
os
Financial Statements
December 31, 2006
rs
ito
ud
tA
en
nd
pe
de
f In
to
s
nt
or
e
p
tem
Re
t a
1.
l S
n cia
ina
2. F ctivi
ties
fA
ts o
te men
3. Sta
4. Cash Flow Statements
5. Notes to th
e Financ
ial State
ments
85
annual report 2006
financial statements
1. Report of the Independent Auditors
To the Board and Directors of,

We have audited the accompanying statement of financial position of Fundación Minera

Escondida (“the Foundation”) as of December 31, 2006 and 2005 and the related statements
of activities and of cash flows for the years then ended. These financial statements are the
responsibility of the Foundation’s management. Our responsibility is to express an opinion
on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards in Chile.
Those standards require that we plan and perform an audit to obtain reasonable assurance
as to whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of Fundación Minera Escondida as of December 31, 2006
and 2005, as well as the results of its activities and its cash flows for the years then ended,
in conformity with generally accepted accounting principles in Chile.
Charles Guaita R.
ERNST & YOUNG LTDA.
Antofagasta, March 2, 2007
87
annual report 2006
Assets Ch$ 2006 Ch$ 2005
Current Assets
Cash 292,125 88,432
Time deposits – 11,345
Other current assets 1,068 1,172
Total current assets 293,193 100,949
Property, Plant and Equipment

Land 275,385 275,385
Office equipment 67,674 53,076
Furniture 36,217 35,494
Installations 46,381 46,382
Vehicles 13,502 12,172
Assets provided free of charge 458,057 458,057
Subtotal 897,216 880,566

Less: Accumulated depreciation (156,667) (137,741)
Total property, plant and equipment, net 740,549 742,825
Other Assets
Fixed term deposits with temporary restriction 2,899,939 2,815,665
Fixed term deposits with permanent restriction 2,600,436 2,602,691
Guarantees 3,108 3,108
Other assets 24,922 9,719
Total other assets 5,528,405 5,431,183
Total Assets 6,562,147 6,274,957
The accompanying notes are an integral part of these financial statements.

2. Statements of Financial Position
Liabilities and Equity 2006 Ch$ 2005 Ch$
Current Liabilities
Accounts payable 415,372 120,962
Withholdings 6,917 6,621
Provisions 28,006 40,364
Funds received in administration 3,698 4,207
Total current lialbilities 453,993 172,154
Equity
Unrestricted capital 607,779 684,447
With temporary restrictions 2,899,939 2,815,665
With permanent restrictions 2,600,436 2,602,691
Total equity 6,108,154 6,102,803
Total Liabilities and Equity 6,562,147 6,274,957
89
annual report 2006
3. Statements of Activities
Revenue and Support Ch$ 2006 Ch$ 2005
Donations 1,601,301 3,558,244

Financial income 257,105 155,982
Net operational income 1,858,406 3,714,226
Project Expenses
Strategic development (44,905) (97,451)
Strengthening formal education (403,276) (433,273)
Contribution to social development and creation of opportunities (255,650) (585,366)
Development of competencies in indigenous communities (113,636) (108,841)
Building trust and the capacity for joint participation
through awardable funds (228,851) (50,423)
Development of internal capacities for methodological innovation (19,539) –
Community appreciation of Esconidida through the FME (71,647) –
Indirect social investment (77,260) (80,275)
Indirect operating costs (199,162) (255,326)
Distributable indirect operating cost (29,974) (28,848)
Total project expenses (1,443,900) (1,639,803)
Other Expenses and Income

Other (expenses) and income (9,861) 1,533
Administration expenses (247,612) (208,965)
Administration expenses for San Pedro de Atacama Office (18,778) (21,435)
Depreciation and amortization (23,191) (19,373)
Exchange rate correction (109,713) (34,915)
Total other expenses and income (409,155) (283,155)
Net operating balance 5,351 1,791,268

4. Statements of Cash Flows
Cash Flows from Operating Activities Ch$ 2006 Ch$ 2005
Net operating surplus/(deficit) 5,351 1,791,268

Charges/(credits) to income not representating cash flows
Depreciation and amortization 31,157 26,418
Exchange rate correction 109,713 34,915
Other 1,559 (19,050)
Decrease (increase) in
current assets:
Other current assets 11,449 (3,158)
Increase (decrease) in
current liabilities:
Suppliers and withholdings 294,706 (110,590)
Provisions (12,358) 10,307
Other accounts payable (509) 3,414
Net positive/ (negative) cash flows

generated by operating activities 441,068 1,733,524
Cash Flows from Investment Activities

Acquisition of fixed assets (28,798) (26,184)
Long-term financial investments (193,464) (1,704,962)
Other (20,323) (7,236)
Cash flows used in

investing activities (242,585) (1,738,382)
Net positive (negative) cash flows 198,483 (4,858)

Effect of inflation on cash and cash equivalents (6,135) (3,954)
Net increase (decrease) in cash and cash equivalents (192,348) (8,812)

Cash and cash equivalents at beginnings of year 99,777 108,589
Cash and cash equivalents at end of year 292,125 99,777
91
annual report 2006
(1) Constitution of the Foundation
Fundación Minera Escondida (“FME”) was formed as a non-profit institution on January 17, 1995, with legal
residence in the city of Antofagasta with a 50-year charter. The purpose of the Foundation is to develop
educational programs and projects, technological research and all kinds of activities aimed at the sustained
improvement of community life.
(2) Summary of Significant Accounting Policies
(a) General
These financial statements cover the years ended December 31, 2006 and 2005.
(b) Basis of preparation
These financial statements have been prepared in accordance with generally accepted accounting
principles in Chile (“Chilean GAAP”) and Technical Bulletin No. 63 of the Chilean Association of Accounts,
which establishes presentation standards for financial statements of non-profit institutions.
For the convenience of the reader, these financial statements have been translated from Spanish to
English.
(c) Basis of presentation
The Financial Statements for year 2005 and notes have been readjusted by 2.1% to allow an accurate
comparison with the Financial Statements for the current year.
(d) Monetary Correction
These financial statements have been restated to reflect variations in the purchasing power of the
Chilean peso during each year. The restatements were calculated based on the official indices issued by
the National Institute of Statistics, that indicate a 2.1% variation in the Chilean CPI for the year ended
December 31, 2006 and 3.6% for year 2005.
(e) Assets and liabilities in Unidades de Fomento
Assets and liabilities expressed in Unidades de Fomento (UF- a peso denominated, inflation indexed
monetary unit) are translated to Chilean pesos based on the current exchange rate as of December 31,
2006 and 2005 Ch$ 18,336.38 and Ch$ 17,974.81, respectively.
5. Notes to the Financial Statements
(f) Fixed term deposits
Fixed term deposits are reported based on their investment value plus accrued interest and readjustments
as of each year-end. Principal amounts subject to permanent restrictions, described in Note 7 (c), are
presented as Other Assets.
(g) Allowance for doubtful accounts
As of December 31, 2006 and 2005 the Foundation has not increased its allowance for doubtful accounts.
The only account that was provisioned corresponds to the funds given in administration to Fundación
Sointral.
(h) Funds received in administration
This refers to contributions made by public, private and social institutions and organizations, some of
which are attributable to specific projects.
(i) Property, plant and equipment
Property, plant and equipment are valued at their purchase cost and restated according to the monetary
variation as of December 31 for each year.
Depreciations are calculated using the straight-line method on the basis of the restated historical cost of
each asset, over their remaining useful lives. Depreciation of fixed assets for the period is Ch$ 25,827,000
(Ch$ 26,418,000 in 2005). Of this figure, Ch$ 7,966,000 (Ch$ 19,373,000 in 2005) are included as Indirect
Social Investment under Project Costs, and Ch$ 17,861,000 (Ch$ 19,373,000 in 2005) as Depreciation
and Amortization under Other Expenses and Income.
(j) Vacation provisions
The annual cost of staff vacation is recognized each year as an expense on an accrual basis.
(k) Provision for employee benefits
As of December 31, 2006 and 2005, the Foundation has constituted a provision for vacation bonuses in
accordance with the Benefits Manual and a provision for a performance bonus.
93
annual report 2006
(l) Income taxes
In accordance with the current tax legislation, the Foundation has not recorded a provision for income
taxes, given it did not have taxable income as of December 31, 2006 and 2005.
(m) Donations
In accordance with the provisions of Article 47 of Law Decree No. 3,063 of 1979 and Article 2 of DFL No. 1
of 1986 of the Treasury Ministry, the Foundation can legally receive tax-exempt donations. Accordingly,
all donations from the Foundation’s founding company, Minera Escondida Limitada, as well as all other
donations from other companies or institutions, are subject to a tax benefit. In accordance with Article
10 of Law No. 19,885, all donations are treated as a tax expense for purposes of calculating First Category
income tax payable, up to 4.5% of the donor’s First Category taxable income. Other than this benefit,
donors of Fundación Minera Escondida do not receive any other tax benefit such as those established by
the Law for Donations for Educational Purposes and the Law for Donations for Cultural Purposes, etc.
(n) Statement of cash flows
For the preparation of the cash flow statements and based on the Technical Bulletins N° 50 and 63
issued by the Chilean Association of Accountants the Foundation defines cash equivalents as all short-
term, highly liquid financial investments made as part of normal cash surplus management that mature
in 90 days or less and have minimal risk of significant loss.
Cash flows from operating activities include all business-related cash flows, as well as interest paid
interest income and, in general, all cash flows not defined as those related to investing or financing
activities. The concept of operations used in this statement is more comprehensive than that used in
the Statements of Activities.
(3) Price-level Restatement
Price-level restatement of non-monetary assets and liabilities and equity is detailed as follows:
(Charge) credit to income

Ch$ 2006 Ch$ 2005
Restatement of:
Equity (125,523) (149,822)
Property, plant and equipment 15,717 26,749
Other assets 93 88,158
Net Charge to income (109,713) (34,915)

(4) Fixed Term Deposits
Fixed term deposits are detailed as follows:
December 31, 2006

Currency Restrictions
Bank or index Unrestricted Temporary Permanent Total
Banco Bice Ch$ – 1,300,503 – 1,300,503

Santander Investment Ch$ – 1,599,436 2,600,436 4,199,872
Total – 2,899,939 2,600,436 5,500,375
December 31, 2005

Santander Santiago Ch$ – 77,080 2,602,691 2,679,771
Banco Bice Ch$ – 745,434 – 745,434
Santander Santiago UF – 209,753 – 209,753
Santander Santiago UF – 1,783,398 – 1,783,398
Santander Santiago Ch$ 11,345 – – 11,345
Total 11,345 2,815,665 2,602,691 5,429,701
(5) Assets Provided Free of Charge
(a) Corporación Nacional del Cáncer (“CONAC”)
In August 1999, the Foundation provided real estate and equipment in the city of Antofagasta free of
charge to the Corporación Nacional del Cáncer (“CONAC”) for use as a home for cancer patients. The
related contract has a five-year renewable term.
95
annual report 2006
(b) Universidad del Mar
In May, 2003 the Foundation provided a vehicle free of charge to the Universidad del Mar, for use as a
Mobile Library.
The detail is as follows:
Ch$ 2006 Ch$ 2005
Corporación Nacional del Cáncer

Land 87,529 87,529
Buildings and infrastructure 330,282 330,282
Furniture and equipment 31,030 31,030
Subtotal 448,841 448,841
Universidad del Mar

Vehicles 9,216 9,216
Subtotal 9,216 9,216
Total 458,057 458,057
Less: Accumulated depreciation (69,370) (61,243)
Net value 388,687 396,814

(6) Funds Received in Administration
The amounts received for project co-financing during 2006 are Ch$ 239,303,000 (ThCh$ 295,079,000 in
2005) are detailed as follows:
Ch$ 2006 Ch$ 2005
Educational improvement fund 42,761 20,547

General fund for strengthening social organizations 32,393 30,195
REME: English Discoveries, Mario Bahamondes Elementary School 23,100 30,630
REME: Matte Reading Project, Escuela España y Japón 19,672 22,462
Non-profit sector comparative study project 18,591 24,068
Men and women dental service 18,480 –
REME: Active minds, elementary education 17,319 13,579
REME: Mobile technology for eduaction 15,802 7,658
Awardable funds for corporate social responsibility initiatives 15,061 17,275
Awardable funds for strengthening indigenous organizations 11,464 11,185
Electricity laboratory project for “Liceo Likan Antai” 10,300 –
ProBono foundation office 3,857 –
Project development “Escondida” 3,250 –
Equipment of rural community clinics San Pedro de Atacama 3,000 –
Campus FME maintenance 2,366 –
Training for indigenous organizations 1,500 –
Other projects form formal education development 387 11,844
Healthcare promotion facility – 44,108
Primary healthcare dental clinics – 38,798
Evaluation of educational system, 2005 – 6,892
Trauma recovery center, Hospital 21 de Mayo – 4,901
Development and improvement of quality of studies
at Universidad de Antofagasta – 3,584
Improvement of employment opportunities for high school students – 2,553
Net iNET - Escondida – 1,608
Publication and distribution of NB2 textbook and CD; training – 1,532
Miscellaneous indigenous developments projects – 1,018
Seminar on donations for the promotion of culture, Law 18985 – 642
Total 239,303 295,079
I-NET: International Networking for Educational Transformation

REME: Red de Escuelas Minera Escondida
Of the total amounts received during 2006, there is a remaining balance of Ch$ 3,698,000 (Ch$ 4,208,000 in
2005).
97
annual report 2006
(7) Equity
(a) Movement in equity accounts
Restrictions
Unrestricted Temporary Permanent Total
Balance as of January 1, 2005 565,480 1,054,758 2,455,876 4,076,114

Price-level restatement of equity 20,357 37,971 88,412 146,740
Surplus 84,532 1,665,023 4,871 1,754,426
Balance as of December 31, 2005 670,369 2,757,752 2,549,159 5,977,280
Balance as of December 31, 2005 restated

by 2.1% for comparison purposes 684,447 2,815,665 2,602,691 6,102,803
Balance as of January 1, 2006 670,369 2,757,752 2,549,159 5,977,280

Price-level restatement of equity account 14,078 57,913 53,532 125,523
Surplus (76,668) 84,274 (2,255) 5,351
Balance as of December 31, 2006 607,779 2,899,939 2,600,436 6,108,154
(b) Constitution of the Foundation
In accordance with the by-laws of Fundación Minera Escondida, Minera Escondida Ltda. has made the
following contributions, totaling US$ 9,000,000:
US$
Contribution at the time the foundation obtained legal status 3,000,000

Contribution within one year of obtaining legal status 3,000,000
Contribution within two years of obtaining legal status 3,000,000
Total 9,000,000
In 2006, the Foundation received an additional donation of Ch$ 1,559,243,000 from Minera Escondida
Ltda. for financing new projects (Ch$ 3,558,244,000 in 2005). Ch$ 2,059,000 was received in 2006 from
Fluor Chile S.A. (no additional donations were received in 2005).
(c) Restrictions
The Foundation is subject to a permanent statutory restriction on the equity contribution from Minera
Escondida Limitada established in Note 7 (b), which requires that 50% of the total contribution remain
invested in fixed-income instruments issued by solvent parties. The remaining 50%, together with the
income from these investments, is to be used to finance the Foundation’s activities.
In June 1999, the Board of Directors placed a temporary restriction on the contribution received
during 1999 and future contributions, so that 50% remains invested in fixed-income instruments
issued by solvent parties, along with the income from these investments. This restriction will remain
in force until the Board of Directors decides to lift it. The Board also extended this restriction to the
interest accrued on the investment of 50% of the initial equity contribution, as indicated in the by-
laws. The purpose of these restrictions is to generate long-term, economic resources to sustain future
operating costs.
On April 5, 2001, the Foundation’s directors authorized the Executive Director to lift the temporary
restriction on investments to fund projects presented to the Board for their approval. The restriction
was lifted in 2002 to finance the requirements for social investments during the period. The same policy
has continued during 2005 and 2006.
99
annual report 2006
(d) Classification according to the statement of activities as of December 31
Restrictions
Unrestricted Temporary Permantent Total
Income
Donations of the year 2006 1,601,301 – – 1,601,301
Financial income 257,105 – – 257,105
Total income 1,858,406 – – 1,858,406
Project costs (1,525,919) 84,274 (2,255) (1,443,900)

Other income and expenses (409,155) – – (409,155)
Net operating (76,668) 84,274 (2,255) 5,351
(8) Subsequent Events
No significant subsequent events have occurred after December 31, 2006 that may significantly affect the
foundation’s financial position or the interpretation of these financial statements.
Pedro del Campo Toledo Jorge Muñoz del Pino Lambertus J. Nacken
Executive Director Board Treasurer Chairman of the Board
We invite yoo to see
this information in
www.escondida.cl
www.fme.cl
awa to send us your
suggestions and commentsº.

Calle Coquimbo 888, Oficina 301, Antofagasta
Fono (56) (55) 455000, Fax (56) (55) 455050
Calle Toconao 535, San Pedro de Atacama
Fono (56) (55) 851546, Fax (56) (55) 851545
www.fme.cl • info@fme.cl

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annual report 2006 minera escondida

fundación minera escondida

“Optimize resource exploitation,

and discover new orebodies

Fundación Minera Escondida a non-proﬁt autonomous institution, is one of

(*) According to a Comparative Study of the Non-Proﬁt Sector

fundación minera escondida

fundación minera escondida

No part of this document can be

Minera Escondida Limitada

fundación minera escondida

fundación minera escondida

We aspire to be an institution that is validated

Our Institutional Purpose is to install and develop human and social

In order to achieve our Purpose we must contribute by:

Our value framework is characterized by:

Trust, valuing diversity and promoting We will be successful when:

fundación minera escondida

fundación minera escondida

I n its community work, FME maintains relationships

fundación minera escondida

President Bert Nacken Representative of Minera Escondida Limitada

Vicepresident Fernando Rivas Roces Community Representative

Secretary Mauro Valdés Raczynski Representative of Minera Escondida Limitada

Treasurer Jorge Muñoz Del Pino Representative of Minera Escondida Limitada

Directors Alejandro Guillier Álvarez Community Representatives

Glynn Cochrane Representatives of Minera Escondida Limitada

Honorary Directors Carlos Gajardo Roberts

A new Director is incorporated

fundación minera escondida

Executive Director Advisors

Communications, Logistics and Events

fundación minera escondida

t he Purpose of Fundación Minera Escondida is to

fundación minera escondida

a s the ﬁrst foreign mining investment in Chile du-

fundación minera escondida

fundación minera escondida

Planning Evaluation Relevant

• Progress of annual plan

fundación minera escondida

These Objectives that prioritize our social investments

fundación minera escondida

fundación minera escondida

Quality Education to the REME- Minera Escondida School Network

Integral support to women heads of household

Quality of Formal & Intercultural Education

Strengthening trust & Education & Community: FOCOS Escuela-Familia (School-Family)

Increasing the internal capacities Social Geographic Information

Contributing to Promoting knowledge and appreciation of the FME

fundación minera escondida

Students at the Fundación Minera Escondida School.

fundación minera escondida

fundación minera escondida

– Is the work method innovative? – Which are the key aspects?

fundación minera escondida

fundación minera escondida

fundación minera escondida

fundación minera escondida

fundación minera escondida

fundación minera escondida

– Which is the formula?