Memoria 2015 Enaex P. 001-067

2015 ANNUAL REPORT / INTEGRATED REPORT

Chairman’s letter to Stakeholders 6

Enaex at a Glance 10

Mission and Vision 11The Company 12Consolidated Financial Summary 14

Company History 16

Corporate Governance 20

Board of Directors and Management 21Ownership Structure 22Corporate Governance Practices 23Corporate Values 24Policy on Sustainability, Diversity and Inclusiveness 26Stakeholders 27

CHAPTER 1 / COMPANY INFORMATION

p. 5

CHAPTER 3 / BUSINESS AREAS

Business Model 30

Products and Services 32Blasting Services and Technical Support 34Clients 35Production Plants 36Service Plants 36Key Partners 37

Innovation and Development 38

Trademarks, Patents and Licenses 41

Opportunities and Risk Factors 42

Financial Policy 45

CHAPTER 2 / STRATEGY

p. 29Corporate Development Plans 48Britanite 50Davey Bickford 51Mining Industry 52Explosives Market 53

p. 47

Emissions Management and Carbon Credits 64Energy Efficiency 66Regulatory Compliance 67

CHAPTER 3 / BUSINESS AREAS

CHAPTER 5 / ENVIRONMENTAL PERFORMANCE

CHAPTER 4 / SOCIAL PERFORMANCE

Human Resource Management 56HSEC Risk Management 59Community Involvement 60

p. 55 p. 63

CHAPTER 6 / GENERAL INFORMATION

CHAPTER 7 / CONSOLIDATED FINANCIAL STATEMENTS

Shareholder Information 70Investments in Other Companies 72Board Compensation 75

p. 69

Signing of the Annual Report 220

p. 83

CHAPTER 1 / COMPANY INFORMATION

Chairman’s letter to Stakeholders


Dear Shareholders:

It is my pleasure to present, on behalf of the Board of Directors of Enaex S.A., the 2015 Annual Report and Financial

Statements. This was a very challenging year for the Company as we undertook an important growth process and

solidified our position as an international leader in comprehensive mining services.

This Annual Report goes beyond last year's financial results to include significant facets of our operations in all areas.

It is written in accordance with the Integrated Reporting Committee (IIRC) framework, a model which aims to provide

a more thorough, precise and comprehensive representation of how the Company's resources are creating value.

This is part of ongoing efforts by the Company and the Board to disclose information beyond economic performance

in order to encompass all factors that predict a sustainable future. We believe that this is essential to the Company's

development, given the increasing demands and competition inside and outside our line of business.

In 2015, the Company sought to create value in all areas through several initiatives related to a client-focused

approach, innovation, safety, training, emissions control and energy efficiency.

In the last 12 months, Enaex achieved two important international milestones that demonstrate its leadership as a

global mining supplier. In May 2015, the Company purchased a 66.7% interest in Britanite, making it the sole

shareholder of Brazil's largest explosives company. Then, in July 2015, Enaex acquired 91% of France's Davey Bickford

group, one of the world's leading manufacturers and distributors of detonators for the explosives industry.

Expanding to provide cutting-edge initiation systems increased the Company's value offering and strengthened its

position as a comprehensive supplier of rock fragmentation products and services. Both deals were part of the

strategic plan to maximize international development and capitalize on strengths in the region by offering innovative

products that meet client needs and improve mining site efficiency ratios.

Despite economic slowdown and the mining industry's poor performance last year, Enaex posted favorable results

thanks to the aforementioned acquisitions and the Company's strong performance in foreign markets. These results

are a testament to the Company's progress within its line of business. As of December 2015, the Company recorded

US$761.8 million in revenue and US$104.6 million in profit, representing 18% and 5% growth, respectively, relative to

the prior year.

7COMPANY INFORMATION

Regarding investments in Chile, the multimatrix plant located in the Prillex complex in Mejillones opened in

September. Its 250,000 ton annual production capacity will enable Enaex to manufacture emulsions for different

applications and, thus, offer client-specific solutions. Furthermore, in Calama's Río Loa complex, a new packaged

emulsions plant began operations in order to increase production capacity and meet the constant demand for this

type of product.

Enaex exported 219,000 tons to international markets, primarily: Peru, Mexico, Argentina and Bolivia. Meanwhile, high

explosive exports reached 1,490 tons.

In rock fragmentation and blasting services, subsidiary Enaex Servicios S.A. began new operations in the Collahuasi

and Cerro Colorado mines—owned by Glencore, AngloAmerican and BHP Billiton, respectively—a testament to the

confidence that major, world-class mining operators place in our services.

Enaex's innovation process has been a cornerstone of its growth. A company priority, innovation is one of our

strategic pillars and is systematically practiced within the organization. It is a fundamental tool for contributing to our

clients' productivity and generating value in their operations. Once merely desirable, we believe that innovation is

now essential as the industry faces problems that require timely solutions and non-traditional insights. Joint

innovation efforts involving mining companies and their suppliers have become fundamental to the industry's

sustainability.

This year, as in years past, new and important steps were taken in developing custom products and services to meet

clients' everyday needs. Highlights in innovation include additions to the product line within the last two years,

including: Energex®, a high-energy, high-power explosive product that increases rock fragmentation; Pirex®, a

blasting agent designed especially for rock minerals with high pyrite content; and Hidrex®, an explosive specially

designed to control slopes and buffer blasts. ESE Business School at Universidad de los Andes recognized our

continuous development of industry solutions and our highly efficient processes, awarding Enaex the leading

position on the Most Innovative Companies Chile 2015 ranking.

In this Annual Report, we further integrate financial, social and environmental results. Regarding the environment,

the Company continues to work on the 2006 Clean Development Mechanism (CDM) projects to reduce nitrous oxide

emissions at the Prillex complex in Mejillones. On June 26, the United Nations renewed accreditation for the project,


Juan Eduardo Errázuriz O.

CHAIRMAN

9

which began in 2006, for a second, seven-year period. The Company's energy efficiency projects also continue,

translating into significant energy savings. Today, the Company has the capacity to cogenerate nearly 50% of its

electric power consumption, reducing CO2 equivalent emissions by approximately 30,000 tons annually. The

international organization Carbon Disclosure Project (CDP) recognized Enaex as one of the eight best companies in

Latin America and the best in Chile in terms of climate change management.

We are optimistic about our future and see much potential for growth. We will continue to work in close coordination

and alignment with our suppliers and clients, to whom we are thankful for their confidence and support of our

operations.

I would like to thank our employees, clients, suppliers, team of banks and bond holders who have accompanied us

throughout the years and all challenges and goals we have set for ourselves. To our new employees from Britanite

and Davey Bickford, I offer a warm welcome and an invitation to join our continued efforts to expand in local and

international markets while we strengthen our leadership in manufacturing, quality, sustainability and innovation.

Likewise, I am grateful to the shareholders who have placed their trust in us and to the directors who have taken part

in this endeavor.

COMPANY INFORMATION

THE COMPANY AT A GLANCE


11

MissionTo grow along with clients, supplying

high-quality Ammonium Nitrate,

related chemicals and mining services.

To provide world-class safety standards,

reliability and innovative services. To

establish a global presence and

leadership in Latin America. To

generate value for shareholders and

employees. To be recognized as a

company that is respectful of the

community and the environment.

VisionTo be the mining industry's most prestigious company, delivering �rst-rate blasting solutions in the most important regions of the world.

COMPANY INFORMATION

The CompanyEnaex S.A., a subsidiary of the Sigdo Koppers Group, has more than

95 years'

experience in the explosives market. Over the years, the Company has become the world's third largest producer of low-density Ammonium Nitrate. In 2015, it established a significant global presence, consolidating its position as the leading provider of comprehensive rock fragmentation services for the mining industry in Chile and Latin America.


Enaex thinks big.

The Company earned several recognitions and

certifications in 2015. Phibrand named Enaex the

Best Domestic Supplier 2015 on its ranking of mining

service suppliers, while Universidad de los Andes

awarded the Company first place on its Most

Innovative Companies Chile 2015 ranking for the

mining services sector. Finally, the international

organization Carbon Disclosure Project (CDP) recognized

Enaex as a leader in Chile and Latin America in its

Annual Climate Change Management Report.

The Company is known for its innovation, sustainability,

exceptional quality, safety and passion for service.

These values are crucial to satisfying client needs and

providing on-site solutions.

Enaex owns the world's largest Ammonium Nitrate

production complex: Prillex América. The plant has a

nominal capacity of 850 thousand tons/year and

produced a total of 782 thousand tons of Ammonium

Nitrate in 2015.

Enaex S.A., has contracts with a large portfolio of

important clients, including the region's main open-pit

and underground mines. In Chile, Enaex supplies the

world's most prestigious mining companies with rock

fragmentation and blasting services. The Company has an

extensive network of service plants to meet client needs

and requirements. Located at the main mining sites

throughout Chile, each plant provides a variety of services

for the mining industry, such as: shot blasting, loading

blasting agents, shallow mooring, plugging blast holes,

checking blasting holes, and magazine management.

In the rest of South America, Enaex stands out for its

continuous growth. In Argentina, the Company's subsidiary

Enaex Argentina SARL has a bulk emulsions plant in

operation since 2014. In Peru, Enaex acquired a 80%

interest in Chemtrade, which holds an Ammonium

Nitrate supply contract for Minera Antamina, Peru's

largest and one of the world's most important open-pit

mines. In May 2015, Enaex strengthened its presence in

Brazil, acquiring a 100% interest in the country's largest

manufacturer and seller of civil explosives and initiation

systems, IBQ Industrias Químicas (Britanite). The acquisition

solidified Enaex's position as the region's leading mining

services provider.

In June 2015, Enaex began to expand beyond Latin

America, acquiring a 91% interest in Davey Bickford, a

world leader in manufacturing electronic detonators. The

French-based company has offices in Australia, Chile and

the United States.

The Company's growth is aligned with the needs of the

community and the environment. It is underpinned by a

variety of sustainability initiatives, the most noteworthy of

which is the Carbon Credit project under the Kyoto

protocol and the United Nations. The project has resulted

in annual CO2-equivalent reductions of nearly 1 million

tons, making the initiative the most important of its kind

in Chile.


(in thousands of US$)

Summary of Consolidated Financial Results

EBITDA

2008

2009

2010

20112013

66,548

110,153

92,461

142,341150,476

2012

152,348

2014

2015

154,170

180,657

14

2008 2009 2010 2011 2012 2013 2014 2015

Sales 321,119 311,717 409,468 575,149 641,429 648,482 645,950 761,766

Net Operating Income 52,024 80,685 91,980 108,192 126,211 122,505 130,341 148,629

Sales Margin 16% 26% 22% 19% 20% 19% 20% 20%

EBITDA 66,548 92,461 110,153 142,341 152,348 150,476 154,170 180,657

EBITDA Margin 21% 30% 27% 25% 24% 23% 24% 24%

Profit for the year (Net Profit) 56,956 69,755 77,196 79,045 90,907 93,914 99,148 104,581

Assets 608,671 621,499 683,193 746,161 816,351 788,259 835,547 1,097,355

*EBITDA calculations do not include other income (losses) for 2009, 2010 and 2011.

Key Figures for Enaex 2008 2009 2010 2011 2012 2013 2014 2015

Average Price of Ammonia (US$/ton) 593 272 406 577 605 547 549 449

Ammonium Nitrate Production (thousands of tons/year)

466 472 642 738 811 773 782 782

Number of Employees 1,219 1,221 1,311 1,392 1,558 1,703 1,970 3,533

Number of Production Plants 4 4 4 4 4 5 7 13

Number of Service Plants 20 20 22 23 25 25 25 24

Number of Mobile Manufacturing Units 70 69 70 71 86 100 106 124


2 0 0 8

2 0 0 9

2 0 1 0

2 0 11

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

504

543

671

834

853

838

867

937

Explosives Volume(Thousands of Tons)**Explosives, Ammonium Nitrate and Chemicals

2 0 0 8

2 0 0 9

2 0 1 0

2 0 11

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

321

312

409

575

641

648

646

762

Enaex Sales Revenue(in mill ions of US$)


16

COMPANYHISTORY



1923Explosive manufacturing began at the Río Loa plant. The corporate name was changed to Compañía Sudamericana de Explosivos.

1983Production of nitric acid and Ammonium Nitrate began at the plant in Mejillones (Prillex América), allowing the Company to independently supply itself with the main raw material in its explosives.

1987The Company was privatized through acquisition by Chilean investors, FAMAE, and U.S.-based Austin Powder Company.

1972Through the Chilean Economic Development Agency (CORFO), the Chilean government took full control of the Company, changing its name to Empresa Nacional de Explosivos.

1990Sigdo Koppers acquired a 33% interest in Enaex S.A.

1999Production of Ammonium Nitrate began at the new plant in Mejillones.

2000The Company acquired 56.55% of Samex (Peru), boosting Samex's growth and Enaex's international expansion.

2001Enaex earned the National Quality Award (Premio Nacional a la Calidad) in the large corporation category.

2003Enaex and Dyno Nobel ASA merged their subsidiaries in Peru to create a new company, Dyno Nobel Samex S.A., which provides comprehensive blasting services in the Peruvian market.

1991Enaex was formed as a publicly held corporation.

1992Construction of a new Ammonium Nitrate plant began on the Company's property in Mejillones.

1997The Ammonium Nitrate project began with an investment of approximately US$130 million in a new plant with production capacity of 350,000 tons/year, bringing the Company's total capacity to

450,000 tons annually.

1994Enaex S.A. and Austin Powder Co. created Enexsa S.A. in Peru, which subsequently changed its name to Samex S.A.

1989The Company's corporate name was changed to ENAEX S.A.

1993Sigdo Koppers increased its ownership interest in Enaex to 50.01%. Production capacity at the nitric acid and Ammonium Nitrate plant increased.

2006The Company carried out a successful capital increase of US$68 million and secured two loans totaling US$125 million in order to finance the new Ammonium Nitrate plant in Mejillones. The Company decided to implement a carbon credit project in Mejillones.

18

Compañía de Explosivos de Chile was founded on November 9.

1920


2010The new Ammonium Nitrate plant (Panna 4) opened, bringing total annual production to

850,000

tonsand making Enaex S.A. the owner of the largest explosive-grade Ammonium Nitrate production complex.

2011The Prillex complex reached its maximum, nominal capacity, at 850,000 tons of Ammonium Nitrate per year. UNFCC approved the Panna 4 carbon credit project. Enaex solidified its position as the national leader in CO2 reduction and emission of carbon credits (Certified Emission Reduction, CERs).

2012Enaex acquires a one-third stake in IBQ Industrias Quinimas (Britanite). In late 2012, Enaex launched a new project called "The New Enaex Cycle", updating its image and headquarters, aligning them with new growth and productivity challenges.

2013Contracts were renewed with major mining clients in Chile and new contracts were signed for sites owned by Antofagasta Minerals and Anglo American. Enaex was awarded 90% of the tons put out for bid in 2013. Sales of high explosives exceeded 2012 figures by 26%. This year was key in defining Enaex's focus on a model based on continuous innovation.

2014In Peru, the Company acquired a majority interest in Chemtrade, a company through which Enaex was awarded the Ammonium Nitrate supply contract for Minera Antamina. In Chile, new contracts were signed with the Collahuasi mines, increasing Enaex's domestic market share.

In the first half of 2015, Enaex became the

sole shareholder of IBQ Industrias

Químicas (Britanite). In the second half of

the year, it acquired 91% of the Davey

Bickford Group, a world leader in

manufacturing electronic initiation systems

for the mining industry. Phibrand, a

Chilean company, named Enaex the Best

Domestic Supplier for the mining industry.

The Company also earned first place on the

Most Innovative Companies Chile ranking

by Universidad de los Andes. Finally, in

October 2015, Enaex conducted its first

bond issuance on the local market, for a

total of UF 2.5 million.

2015

2008The carbon credit project's certified emissions reduction initiative was launched. Subsidiary Enaex Servicios S.A. was created and the Company was split into manufacturing and service divisions. Enaex sold its share of Peruvian affiliate Dyno Nobel Samex to Orica.

2009The carbon credits project was approved under the Kyoto Protocol and the United Nations officially issued the first emissions reduction certificates, allowing Enaex to sell its carbon credits to Mitsubishi Corporation in Japan.

2007Subsidiary Enaex Argentina SRL was created to serve the growing Argentine market. The carbon credit project and construction of a new Ammonium Nitrate plant began.


CORPORATEGOVERNANCE


Chief Executive Officer (CEO)Juan Andrés Errázuriz Domínguez / 9.350.009-1Civil Engineer

Chief Financial Officer (CFO)Pablo Busquet Errázuriz / 11.472.210-3Business Administration

Chief Executive Officer, Enaex Servicios S.A.Edmundo Jiménez Gallardo / 12.622.945-3Civil Engineer

Vice President, Supply Chain Pablo Wallach Beovic / 12.585.165-7Civil Engineer

Vice President, Human ResourcesPatricia Valenzuela Urra / 8.267.412-8Psychologist

Vice President, ProductionClaudio Yévenes Constanzo / 9.383.155-1Civil Engineer

Planning, Development and Control ManagerFrancisco Baudrand Biggs / 8.922.866-2Civil Engineer

Regional Sales ManagerMiguel Ángel Peña Duarte / 10.279.473-7Civil Engineer

Operations Support Manager Jorge Rioja Ovando / 6.553.741-9Civil Engineer

Production ManagerAlejandro Castillo Hamati / 9.152.917-3Civil Engineer

HSEC ManagerLeonel Cataldo Morales / 8.054.812-5Civil Engineer

Major Companies Manager Erick Muñoz del Pino / 7.719.693-5Civil Engineer

Operations Manager Luciano López Cordero / 12.227.163-3Civil Engineer

Project ManagerJuan Suban Padilla / 8.691.388-0Civil Engineer

Corporate ControllerFernando Moreno Pérez / 10.742.624-8Accountant

Board of Directors


Company Management

*Member of the directors' committee, created in accordance with art 50 bis of the Corporations Law.

VICE CHAIRMAN*Jorge Carey Tagle4.103.027-5Attorney

Kenneeth Pickering Ewen12.087.835-2Mining Engineer

Norman Hansen Fernández6.062.403-8Sociologist

Sergio Undurraga Saavedra*4.280.259-KBusiness Administration

Naoshi Matsumoto Takahashi*3.805.153-9Business Administration

Alejandro Gil Gómez5.054.638-1Businessman

Horacio Pavez García3.899.021-7Civil Construction

Juan Pablo Aboitiz Dominguez7.510.347-6Civil Engineer

CHAIRMANJuan Eduardo Errázuriz Ossa4.108.103-1Civil Engineer

As of December 31, 2015

Ownership Structure

12.59%Grupo Karlezi

Solari

14.42%Pension Fund Administrators

(AFPs), Investment Funds and Other Minority Shareholders

60.72%Sigdo Koppers S.A.

12.27%Inversiones Austin Powder Chile Ltda.

In late 1990, the Sigdo Koppers S.A. Group acquired an

interest in Enaex. Later, in 1993, the group became the

Company's controlling shareholder. This prominent group

has investments in: the service sector, through Ingeniería y

Construcción Sigdo Koppers, Puerto Ventanas S.A. and its

subsidiary Fepasa; the industrial sector, through Enaex,

Magotteaux and Compañía de Hidrógeno Bío Bío; the

automotive sector, through SKBergé S.A.; and importation,

sales and leasing of heavy machinery, farm equipment

and transportation for construction and inputs, through

SK Comercial S.A.

As of December 31, 2015, Enaex S.A.'s share capital was distributed as follows:

Shareholder No. of Shares O wnership Interest (%)

Sigdo Koppers S .A. 74,687,564 60.72%

Invers iones Aust in Powder Chi le Ltda. (1) 15,096,100 12.27%

Lucec Tres S .A. (2) 5 ,300,000 4 .31%

Moneda S.A. - Pionero Fondo de Invers ión 5 ,252,000 4 .27%

Invers iones S anta Fi lomena L imitada (2) 4 ,912,668 3 .99%

Invers iones y Valores Harabuquen Ltda. 4 ,359,373 3 .54%

Invers iones Auguri Ltda. (2) 2 ,850,000 2 .32%

Agrícola Cechi Ltda. (2) 2 ,425,000 1 .97%

Eight y Three LLC 1 ,575,000 1 .28%

Moneda Corredora de B olsa Ltda. 757,382 0 .62%

Invers iones S chwember y Cia Ltda. 738,000 0 .60%

Compass Smal l Cap Chi le 452,491 0 .37%

(1) Non-controlling shareholder with more than 10% interest. Tax ID No.: 96.935.940-5

(2) New non-controlling group with more than 10% interest.

As of December 31, 2015, Enaex S.A.'s share capital was divided into 123,000,000 shares. The Company's 12 main shareholders were:


Corporate Governance Practices


Enaex has a Corporate Governance Code and formal

policies on issues including: proposal for candidates

for director, induction of new directors, hiring

independent consultants, self-assessment by the board

of directors, board confidentiality, use of insider

information, and succession of key executives.

Risk ManagementEnaex's Corporate Risk Management Model includes a

Risk Committee as well as formal risk management

policies and procedures designed to provide reasonable

certainty that objectives will be achieved and the

Company's value will be maximized.

The Internal Control Area is responsible for coordinating

updates to the corporate risk map, monitoring

mitigation plans, auditing the main business risks and

eliciting commitments to improve.

Communication and Independent Reporting on Control AreasDirect, ongoing communication is maintained through

quarterly board meetings. Once a year, the Chief

Executive Officer is excused from the meeting while the

Board analyzes performance in conjunction with:

a. Independent Auditors: The external audit program

and its results, deviations and potential conflicts of

interest related to the audit company or its personnel,

among other issues.

b. The Chairman of the Risk Committee: Proper

functioning of the risk management process, methodology,

risk map, residual risk levels, recommendations for

improvement, action and contingency plans, among

other issues.

c. Internal Controller: The Internal Audit program

and its results, process risks, detected weaknesses,

recommendations for improvement, follow-up on

action plans, strengthening the control environment

and the effectiveness of the crime prevention model.

d. Human Resources Division and Sustainable Development Unit: Effectiveness of diversity and

inclusiveness policies; organizational, social and cultural

barriers that could inhibit natural diversity; as well as

the usefulness of and reaction to sustainability reports

distributed to relevant stakeholders.

Ethical Behavior and Self-RegulationThe Enaex Code of Conduct establishes an ethical-

behavioral framework for directors, employees and/or

consultants. Knowledge and application of the

provisions are mandatory.

The Enaex Corporate Ethics Committee is responsible

for promoting values and ethical conduct within

the organization, addressing and resolving complaints

and conflicts of interest in a timely matter and

enforcing the Code of Ethics.

Complaint ChannelEnaex has a formal procedure for processing reports

of possible irregularities or illegal activities so that

each is duly addressed. The procedure—which takes

complaints from employees, shareholders, clients,

suppliers or third parties—guarantees whistle blowers

anonymity and freedom from retaliation.

Crime Prevention Model (Law 20,393)Law No. 20,393 establishes criminal liability of legal

entities for the crimes of money laundering, terrorism

financing and bribery of a public national or foreign

official. To uphold the law with a preventative

approach and maximum diligence, Enable has a

long-standing Crime Prevention Model. The model

is has been certified by an external company,

BH Compliance, and is periodically audited to

confirm validity.

24

Listening to others, providing effective solutions and making a difference in the life of others.

2Passion for Service:

Being ever-alert to risk situations, respecting safety and occupational health regulations, being environmentally responsible and protecting individual integrity.

1Employee Wellness:

Corporate Values:Enaex Spirit


Keeping our word, fulfilling our promises in a timely manner and assuming responsibility for decisions, actions and results.

3We Ful�ll Our Commitments:

Striving for the highest quality standards, performing tasks with excellence and team work, and valuing honesty and trust.

4We Strive for Excellence:


• To promote ethical behavior and

collaboration between all the organization's

members.

• To always seek long-term profitability for

shareholders and investors, meeting high

transparency and quality standards.

• To promote close, transparent dialog with the

communities where the Company operates,

actively participating in the generation of

social capital, especially through education

and environmental protection.

• To endeavor to support local suppliers and

socially responsible behavior, fostering

collaborative relationships.

• To build cordial relationships with the relevant

authorities through timely compliance with

applicable legal standards.

• To maintain and promote fair competition

based on ethical business practices.

1Consideration and Collaboration with Stakeholders

• To promote environmental responsibility in all

business areas seeking, first and foremost, to

comply with all current rules and regulations.

• To progressively increase the efficiency with

which the Company uses and manages natural

resources.

• To maintain its leadership position in climate

change management, maintaining low-carbon

Ammonium Nitrate production and promoting

energy efficiency initiatives.

• To encourage implementation of management

systems that ensure ongoing process

improvement as well as identification and

control of environmental aspects.

2Environmental Protection

• Conscious of the value of accepting differences,

Enaex seeks to eliminate discrimination and

exclusion based on ethnicity, gender or other

aspects that could affect individual dignity.

3Inclusiveness and Diversity

• Enaex considers innovation a key element in

creating long-term value. Thus, the Company's

long-term strategy includes innovation in processes,

products and services in areas like safety,

sustainability and infrastructure.

4Innovation

Policy on Sustainability, Diversity and Inclusiveness

Through its policy on sustainability, diversity and inclusiveness, Enaex seeks to establish measurable, long-term commitments related to four main themes:


To produce long-term profitability while upholding high standards of quality, sustainability and transparency.

2Investors and Shareholders

To provide comprehensive solutions, focusing on client needs and expectations, delivering excellent, innovative, competitive products and services in a timely manner.

3Clients

To maintain and promote fair competition based on ethical business practices.

7Competitors

To maintain a transparent relationship and actively fulfill applicable legal standards.

6Regulatory Authorities

To promote open, transparent and harmonious communication, contributing to the creation of shared value.

5Suppliers

To support the social, economic and environmental development of the communities in which we operate, actively helping to generate social capital.

4Community Our business success depends on harmonious, hand-in-hand work with all our

stakeholders. Thus, we must work to identify the challenges facing the Company and

areas for improvement.

Enaex maintains a holistic, strategic relationship with each of its primary stakeholders,

thereby enabling effective communication, in pursuit of mutual collaboration and

sustainable competition.

Enaex's primary stakeholders and the corresponding relationship management plan is

described below:

Stakeholders

To provide equality, opportunities for development, participation and team work while encouraging dialog and safety.

1Employees


CAPÍTULO 2 / STRATEGY

30

BUSINESS MODEL


31STRATEGY

• Specialized sales team

• On-site technical support

• Work-site staff

• CRM system

• Client satisfaction survey

• Major mining companies with operations in Argentina, Australia, Brazil, Chile, Colombia and Peru

• Clients purchasing Prillex Ammonium Nitrate and specialty explosive products in more than 40 countries

• Civil works clients

• Comprehensive logistics for product and service distribution in Chile and around the world

• The world's largest Ammonium Nitrate production complex

• Packaged emulsions plants

• Bulk emulsions plant

• Detonator plant

• Service plants in mining work sites

• 124 Mobile Manufacturing Units

• Highly committed, competent employees

Specialized product manufacturing:

• Ammonium Nitrate

• Bulk explosives

• High explosives

• Initiation systems

• Accessories

• Customized blasting services

• Technological development

• Innovation

• Carbon credit project

• Energy efficiency

• Suppliers of inputs

• Suppliers of technology

• Innovation managers

• Firms specializing in research and development

• SK Group companies

• Legal advisors

• Audit firms

• National and international banks

• Bond holders

• Inputs

• Compensation

• Depreciation and amortization

• Maintenance

• Logistics

• Other costs

Value Proposal

CostsKey

PartnersKey

ActivitiesKey

Resources

Client Relationships Clients

Revenue Sources

Distribution Channels

• Sale of blasting services

• Sale of raw materials and bulk explosive products

• Sale of high explosives

• Sale of initiation systems and accessories

Products and Services

Enaex owns the world's largest Ammonium Nitrate production complex.

Ammonium Nitrate, Explosives and

Other ProductsThanks to our vast experience in Ammonium

Nitrate production, Enaex has become the

largest producer in Latin America and third in

the world. With 95 years in the industry, it has

established its leadership on the market for

blasting services for large-scale mining in Chile

and become a major player in the region's

explosives manufacturing market.

32

• Prillex: Low-Density Ammonium Nitrate

• Prillex LR: Low-Density Ammonium Nitrate

(Long Range)

• Prillex ULD: Ultra Low-Density Ammonium

Nitrate

• Prillex HPURE: Emulsion-Grade High Purity

Ammonium Nitrate

• Prillex FR: Ammonium Nitrate for Emulsions

• 84% Ammonium Nitrate Solution

• Emulsions

• Water Gels

• Bulk ANFO (Aluminized)

• Heavy ANFO (pourable and pumpable)

Raw Materials for Explosives

Blasting Agents

Product Family

• ANFO in sacks

• Packaged Emulsions

• Dynamite

• Coal Mine Permissible Dynamite

• Seismic Exploration

• Boosters

• Cone Boosters

• Landslide Control

• Non-electric Detonators

• Electric Detonators

• Electronic Detonators

• Detonating Cords

• Koolkap Self-Inflating Bags

• Power Deck Plugs (Taponex)

• Quikdraw Cannons

• Flame Retardant

• Expansion Cement

• Rock blasting accessories

• 60% Nitric Acid

High Explosives

Initiation Systems

Other Products

Other Chemical Products

Ammonium Nitrate is also sold as a raw material

used for on-site manufacturing of blasting agents

at various mining sites. Enaex provides client- and

site-specific solutions using Ammonium Nitrate

and other products. Today, the Ammonium Nitrate

produced by the Company is sold directly to

clients within Chile and abroad, including important

destinations like Peru, Argentina, Mexico, Japan

and Australia.

In its explosives product range, Enaex produces a

large amount of high explosives—including

various types of dynamite, boosters, cartridge

emulsions and detonators—at the Río Loa plant in

Calama. These products are used in blasting for

open-pit and underground mining as well as

small- and medium-scale mining operations.


33STRATEGY

2015 Sales Revenue by Product/Service

2%Chemical Products (Ammonia, Nitric

Acid)

12%Blasting

Accessories

1%Other

39%Bulk (ANFO, Matrix

Solution, and Ammonium Nitrate

in Mines)

11%Cartridged

(Dynamite, APD, Emulsions)

22%Direct Sales of

Ammonium Nitrate

13%Blasting Services

and Technical Support

21%Other

79%Chile

2015 Sales Revenue by Market

34

Blasting Services and Client Technical Support

Thanks to ongoing efforts to meet our clients' needs

and add value, Enaex has become the largest

explosives manufacturer and distributor in Chile and

South America. Likewise, with its sights set on offering

ever-more efficient products, Enaex is also Chile's

leading provider of comprehensive rock fragmentation

services.

The Company has an extensive network of service

plants to meet client needs and requirements. Located

at the main mining sites throughout Chile, each plant

provides a variety of services for the mining industry,

such as: shot blasting, loading blasting agents, shallow

mooring, plugging blast holes, checking blasting

holes, and magazine management.

The blasting designs on which Enaex's services

are based may be submitted by the client or proposed

by the Company's highly qualified, experienced

engineering team. These proposals enable Enaex to add

value to client operations by training, advising and

recommending the most appropriate techniques and

products for each situation.

Leveraging its vast experience in blasting impact

and knowledge of downstream crushing and grinding

operations, the Company has optimized the fragmentation

process and offers complete blasting engineering services,

from blast hole design to blasting design.

Enaex offers the entire value chain for comprehensive

rock fragmentation services. The quality of its products,

ongoing innovation, technological development, efficient

logistics and commitment to the client have made it a

leader in the region.


35STRATEGY

Clients YearCl ient Mine Sales Began

TECK Quebrada B lanca 2012

Minera Doña Inés Col lahuas i 2015de Col lahuas i

Grupo Vale Mines in Braz i l l 1995 R ío Tinto Mines in Austra l ia 2009 Other companies Cía . Explotadora de Minas S .C .M. 1998 Minera Mer id ian - El Peñón 2000 Cemento Polpaico 2000 Atacama Kozán 2002 Haldeam Mining Co. S .A. 2006 Construc tora Hocht ief Tecsa S .A. 2008 SQM Nit ratos 2008 Mirabela 2009 Cerre jón 2010 Construc tora Fe Grande - Impregi lo Angostura 2010 Minera Flor ida 2011 B elo Monte 2011 Newmont 2012 Or ica - Exsa - Maxam -

YearCl ient Mine Sales Began

Codelco Coldelco Nor thern Division (Chuquicamata, R adomiro Tomic, Minist ro Hales) 1922 El Teniente D iv is ion 1922 Codelco El Salvador D iv is ion 1959 Codelco Andina D iv is ion 1970

Anglo Amer ican Mantos B lancos 1986 Los Bronces 1995 Soldado 1996 Mantoverde 2007

BHP B i l l i ton Escondida 1989 Cerro Colorado 2015 Antamina (Peru) 2014

Antofagasta Michi l la 1990Minerals Los Pelambres 1995 Cent inela 2000 Antucoya 2014 Encuentro 2014

KGHM Sierra Gorda 2011 Franke 2011

Service Plants

Our service plants, which are located near clients' mineral

deposits and mining sites, feature all the equipment

necessary for safe, high-quality, productive operations.

The most noteworthy include: storage silos for

Ammonium Nitrate and emulsions, magazines for storing

high explosives and initiation systems, equipment for

transporting raw materials, support offices and mobile

manufacturing units. The latter are specially designed

to transport raw materials (Ammonium Nitrate and oil) to

be mixed on-site where they will be used. Mobile

manufacturing units are custom designed and equipped

for each mine, in accordance with the most stringent

safety standards.

As of December 2015, Enaex had a fleet of 124 factory

trucks for open-pit mining operations and 12 trucks for

underground mining operations.

Production Plants

36

Mobile Manufacturing UnitsOperational Support Chile

Type of Mobile Equipment and/or Vehicle TOTAL

Mobile Manufacturing Units* 124

Mobile Loading Equipment for Underground Mining 12

Plugs 44

Cranes 12

Grinders 4

Mobile magazines 34

Pick-up trucks 168

Matrix solution (emulsions) transport trucks 60

Bulk Ammonium Nitrate transport trucks 47

Nasol transport trucks 4

Totales 509

Chile

Ammonium Nitrate Plant (Prillex América) Located in Mejillones. Production of Ammonium Nitrate.Current production capacity: 850 thousand tons/year.

Multimatrix Plant (Prillex América)Located in Mejillones. Production of bulk emulsions.Current production capacity: 250 thousand tons/year.

Dynamite and Explosives Plant (Río Loa)Located in Calama. Production of cartridge explosives (dynamite, pentolite, PETN), ANFO in sacks and bulk emulsions.

Initiation Systems Plant (Río Loa)Located in Calama. Production of non-electric detonators, non-electric dual detonators, non-electric trunk line detonator.

Argentina

Emulsions Plant and Distribution Center (Campanario)Located in the Province of San Juan. Production of bulk emulsions.

France

Electronic Detonators and Other Accessories PlantLocated in the city of Héry. Production of electronic detonators and other accessories.

Brazil

Emulsions and Boosters PlantLocated in Quatro Barras. Production of emulsions, packaged emulsions, boosters and other.

*23 are high tonnage Milodón trucks.


Key Partners

DomesticBBVABanco BiceBanco Crédito e InversionesBanco de ChileBanco EstadoBanco ItaúBanco SantanderBanco SecurityCorpbancaHSBCScotiabank

Main Banks

InternationalBNP ParibasCorpbanca ColombiaCorpbanca New York Citibank N.A.HSBC New YorkScotiabankEDCBank of Tokyo-Mitsubishi Bank of America Merrill LynchJ.P Morgan

• Physical damage, which covers physical assets under company ownership or responsibility, including loss due to business interruption resulting from

an accident.

• Corporate third-party civil liability (third-party damages and operations in Mejillones port terminal).

• International transport for import/export goods.

• Vehicles and mobile equipment.

• Transportation and cabotage for all goods transported between the plants or distribution centers within Chilean territory.

• Personal accident coverage for all executives.

• Insurance policies on local sale and export loans.

The main insurance policies are detailed as follows:

For supply of ammonia, the main raw material in the production of Ammonium Nitrate, Enaex holds a long-term supply contract with Transammonia, a major player on the international ammonia market.

Enaex is constantly developing supplier relationships in order to obtain the best supply conditions. It establishes strategic supply relationships, especially for the raw materials, packaging and products that constitute approximately 80% of its purchases.

By reinforcing corporate management structures, Enaex has achieved interesting synergies, which are further enhanced by our ongoing search, beyond ocean borders, for global supply opportunities.

To ensure sustainability, Enaex also balances its suppliers to include both Chilean and international suppliers capable of making and faithfully fulfilling commitments.

The Company's main suppliers of raw materials and services include: Transammonia Inc., Compañía de Petróleos de Chile and Pst Industries, among others.

Suppliers

Deloitte Auditores y Consultores Ltda.

Auditors

37STRATEGY

Legal Advisors

Villaroel y Compañía Limitada.

INNOVATIONAND DEVELOPMENT


Enaex has been working on systematizing the innovation

management process in order to make innovation

sustainable over time. A significant part of these efforts

has focused on developing specialized products and

services to meet our clients' specific and significant

everyday needs. Innovation focus points were established

in order to harness factors affecting competitiveness and

their respective solutions as guides on our search for new,

positive, high-impact projects.

In 2015, the culture of innovation was strengthened.

The first step in the process was inviting the entire

organization to be part of this cultural change. Then,

a plan was elaborated to spread innovation throughout

all the company's divisions. The processes and

methodologies for successful innovation set forth in the

plan demand a high level of discipline and alignment

with the Company's strategic objectives.

The Innovation Intensity Index, which measures value contribution to results, reached

13.9%Nearly 60 projects in the innovation portfolio.

The wide collaboration networks and international

strategic alliances created as part of innovation

management also marked an important milestone

in 2015.

Finally, it is important to highlight that as a result of

great effort by each of the persons who has worked to

boost innovation in the Company, Enaex earned first

place in the Mining Services Category of Universidad

de los Andes' Most Innovative Companies 2015 ranking.

39STRATEGY

Factors Affecting Competitiveness and Enaex Solutions

Our solutions seek to solve the problem inherent to mines. As copper concentrations decrease, greater depths must be reached to located it, making efficiency and proper slope control essential.

1Copper Mineral Law:

Solution for slope control and perimeter blasting

Hidrex® and Panfex®

Explosives specially designed to control slopes and blasts.

Since the blasting process has an important effect on the energy consumed during crushing and grinding, we seek to harness chemical energy and thereby optimize high-cost electric energy.

2Energy:

High Fragmentation

Energex®

A high-energy, high-power explosive product that improves rock fragmentation.

Solutions that aim to slow the reaction of rock minerals with high pyrite content.

3Reactive Rocks:

Pirex® This blasting agent is specially designed to retard the reaction of Ammonium Nitrate and the pyrite in the rock.


Solutions that seek social innovation in the blasting process in order to achieve sustainable development and community protection.

5Sustainability:

Explosives Carbon FootprintApproximately 800,000 tons of CO2 equivalent are reduced annually. The Annual Climate Change Management Report published by the international organization Carbon Disclosure Project (CDP) recognized Enaex as one of Chile and Latin America's best companies on this item.

Blast Site Watch®

A system that measures and controls the vibrations from blasts located near communities.

Solutions that seek to increase productivity of the blasting processes.

4Productivity and Logistics:

Scaled Solutions

Milodón® Truck

With its 30-ton storage capacity, this is the world's largest MMU for manufacturing surface blasting explosives.

UBT Truck Designed to manufacture and load emulsions in underground mines, this autonomously powered truck can operate for more than 12 hours.

EVS®Enaex Value Simulator is a technological tool developed to quantify the value generated by the products for operational mining processes

The Company's assets include several trademarks. Given their

track record and use, some of the brands, including Amongelatina®,

Iniciador APD®, Softrón® and Enaline®, have become market

bellwethers. Milodón® is another of the Company's noteworthy

trademarks. In terms of products, the following stood out in

2015: Pirex®, Hidrex®, Energex®, Vertrex® and Panfex®. In special

technological developments, the InfoBlast® and IntelliDrill®

trademarks were registered.

The Company recently began registering trademarks like Enaex®

and Prillex® for use in some of the countries where the Company

plans to conduct business, including but not limited to: Australia,

New Zealand, Indonesia and Japan. Furthermore, it owns

the rights to emulsions manufacturing technology as well as QED

Plus—Austin Powder Co.'s design, evaluation and blasting

simulation software.

Trademarks, Patents and Licenses

41STRATEGY

OPPORTUNITIES AND RISK FACTORS


Innovation and Development:Enaex has developed a technology portfolio including

products and processes through in-house development,

licensing agreements and technology exchange with

industry leaders. This culture of innovation has enabled

Enaex to win several bidding processes with new

clients and report increasingly better results. With the

acquisition of Davey Bickford, Enaex solidified its

international leadership in mining innovation.

Training to Improve Productivity:All Enaex employees have access to training and

development programs which aim to help the

Company meet high quality standards and maintain

long-term relationships with all clients and suppliers.

Multicultural Communication:As an organization with a newly established global

presence, communication between the group's

subsidiaries is essential to objective alignment, innovation

culture, efficient processes and across-the-board

service quality.

Opportunities

Developing Synergies:With the acquisition of new subsidiaries in 2015, Enaex

covers the entire rock fragmentation value chain and

boasts important synergies to be leveraged in the short-

and medium-term.

On one hand, the incorporation of Britanite expands the

civil works knowledge base and offers direct access to

iron and aluminum markets in Brazil, where a respective

7% and 12.5% of the world's reserves are located.

On the other hand, the addition of Davey Bickford—with

its leadership in initiation systems and presence on

almost all continents—grants the Company access to an

international distribution network.

Enaex continues to boost its regional presence through

its subsidiaries in Argentina, Peru and Colombia as it

becomes the region's leading provider of complete,

comprehensive rock fragmentation service.

In order to create multicultural unity, the Company implemented an integration program for all employees that is promoted in several languages.

43STRATEGY

Risk Factors

Market Risk:The Company is highly exposed to the region's

mining industry, from which approximately 90% of

revenues originate, directly or indirectly. This year's

acquisitions have increased the Company's presence

in other markets in the region and around the world.

Credit Risk:The Company maintains medium- and long-term

relationships with regional clients renowned for their

experience and solvency. On the other hand, insurance

policies have been purchased to cover certain clients

with a different risk profile.

Accident Risk:The Company holds insurance policies to cover

physical loss to its property, losses due to resulting

business interruptions, as well as civil liability.

44

It is important to note that Enaex maintains a sound �nancial position, as re�ected in Feller Rate's maintenance of its risk rating (AA-, Stable outlook) and Fitch Ratings (AA-, Stable outlook) in 2015.

Input and Production Factor Risk:The Company is impacted by variations in international

ammonia prices, which are sensitive to oil and natural gas

prices. To mitigate the risk of fluctuation in this input,

client contracts stipulate periodic rate adjustments based

on indexation formulas that account for this product.

Risks in fluctuations in the cost of other relevant

production inputs, like oil or electricity, are also covered

using indexation formulas.

Financial Risks:The Company manages currency, interest rate and

working capital financing risk. Hedging mechanisms

are in place to mitigate the impact of exchange rate

fluctuations on operating and non-operating results.

In terms of interest rate risk, the Company has decided to

hedge its entire long-term debt in US dollars. It maintains

interest and currency rate swaps with a fixed weighted

average indebtedness rate at maturity of approximately

3.01% annually.

Instrument Fitch Ratings Feller Rate

Stock Level 3 Fi rst c lass, Level 3

B ond L ine AA-(Stable) AA-(Stable)


Enaex's Main Consolidated Financial Ratios 2008 2009 2010 2011 2012 2013 2014 2015

Financial D ebt/EBITDA 2 .4x 1 .8x 1 .8x 1 .5x 1 .3x 1 .1x 1 .2x 2.0x

L iabi l i t ies/Equit y 0 .9x 0 .7x 0 .7x 0 .7x 0 .7x 0 .54x 0 .57x 0.98x

EBITDA/Financial Expenses 19.4x 45.1x 31.3x 31.0x 31.6x 32.9x 37.5x 18.8x

45STRATEGY

Enaex's conservative financial policy has resulted in a sound financial position.

For major investment projects, Enaex policy allows for a mixed financing structure, including external sources (local and international banks), publicly tendered bonds, company-generated funds and capital contributions. The Company aims to maintain a conservative medium-term debt structure and comfortable covenant cushion.

The Company's smaller investments aim to sustain growth and ensure normal replacement of operating assets, upgrades and new equipment to expand and improve production capacity, which were generally funded with the Company's operating cash flows.

Financial PolicyShort-term bank debt is generally used to cover working capital needs, which are primarily related to the purchase of ammonia. It is worth noting that levels of short-term bank debt can vary throughout the year as a result of fluctuations in the international price of ammonia and the efficiency of production processes.

Given the importance Enaex places on efficiently managing financial resources and implementing strategies to face exchange market volatility, the Company maintains strict control of its investments, cash flows and working capital while focusing on maintaining its stock and credit ratings.

CAPÍTULO 3 / BUSINESS AREAS

In 2015, important progress was made toward consolidating Enaex as a global company capable of effectively operating in a multinational environment and positioning itself as the world's most prestigious company in the field.

In Enaex's assessment of the 2015-2020 strategic

development plan, this year's acquisitions helped the

Company successfully achieve some of its first goals,

like regional leadership and increased global presence.

The Company also earned recognition for its strong

innovation and development, which has focused on

continuously improving process productivity with an

emphasis on meeting client needs. Thanks to this

effort, the Company won bids with new clients and is

able to offer unique products. The Company's strong

performance was also thanks to our employees, who

have kept the highest quality standards and have

embraced a global culture.

Enaex Argentina SRLEnaex Argentina has been servicing open-pit and

underground mines since 2007. It owns the High

Explosives Plant in Olavarría and, as of 2014, the

Campanario Emulsions Plant (PEC) in the province of

San Juan, which has an annual production capacity of

approximately 65,000 tons. This project secures supply

for local clients, minimizing risks associated with import

substitution policies, increasing competitiveness and

increasing the probability of being awarded future

contracts. The company also performs underground

loading operations with the Underground Bulk

System—the first of its kind in Argentina—using UBS

equipment and emulsions produced at the Campanario

Emulsions Plant.

In late 2015, Argentina's new government took power,

announcing guidelines for a new macroeconomic

framework and economic reforms like elimination of

exchange market and international trade restrictions.

.

Enaex Colombia S.A.SEnaex has been operating in Colombia since 2010, when

it built and opened a high-tech packaged emulsions

plant through a partnership contract with the defense

industry.

The mining energy sector is the bedrock of the

Colombian national economy. Colombia is home to

large-scale, open-pit coal mining operations as well as

gold, nickel, copper, limestone and iron ore operations,

which are becoming important alternatives for the

country's mining development. Likewise, Colombian

roadway and port infrastructure development is in full

swing. Given the topography of the country, these

infrastructure concessions will necessarily include tunnel

construction, meaning significant growth in the demand

for explosives in coming years and important opportunities

for blasting services and technical support.

Chemtrade S.A.C.In 2014, Enaex re-entered the Peruvian market, acquiring

an 80% interest in Chemtrade, an explosives manufacturing

and blasting accessories company. The Company's

Peruvian operations also manufacture pyrotechnic

detonators and ANFO in sacks, which are distributed

primarily to the local market. Products like Ammonium

Nitrate, boosters, dynamite and cartridge emulsions will

be imported, primarily from Chile. In 2015, the four-year

Ammonium Nitrate supply contract with Peru's largest

copper mine, Antamina (BHP) became effective.

Corporate Development Plans


49BUSINESS AREAS

Davey Bickford Smith

Davey Bickford AustraliaEnaex Argentina

Chemtrade PeruBritanite

Enaex Colombia

Enaex Chile

Davey Bickford Chile

Davey Bickford USA

Founded in 1961, Britanite is an explosives and rock

fragmentation services company. With more than 50

years of experience, it has strong market share in

recent major infrastructure projects in Brazil.

Britanite's history is marked by entrepreneurial spirit,

determination and the strength of its team. Today,

the company leads its segment in Brazil and operates

in South and Central America. Its main products are

detonating chord, pumpable and cartridged emulsions

and electric and non-electric initiation systems. They

primarily supply the heavy civil construction, mining

E-Blasting®The world's �rst e-portal for explosives sales.

975 employees

Britaniteand quarrying industries as well as a wide network

of distributors. The company differentiates itself by

providing technical support and distribution to these

industries. Headquartered in the city of Quatro Barras,

Britanite operates throughout Brazil and has a small office

in Panama.

In 2015, Britanite developed the world's first e-portal for

explosives sales, called E-Blasting®, which allows users to

purchase products and have them delivered in just a few

steps. The widely used portal was very well-received

by clients.


51BUSINESS AREAS

Davey Bickford

French company, Davey Bickford, leads the world in

design, manufacturing and distribution of electronic

detonators, which are known for producing more

precise results in the rock fragmentation process.

Founded in Héry, France in 1831, the company has

nearly 200 years of innovation experience in

detonator chords, electric, non-electric and electronic

detonators. Operating on almost every continent,

Davey Bickford primarily serves the markets of blasting,

excavation and seismic exploration for mining.

With its history of ongoing innovation, growing

10% annually in the last five years, the incorporation

of Davey Bickford broadens Enaex's ability to

innovate and develop new blasting solutions. Davey

Bickford also focuses on safety, from design to

implementation, for all its products. The company

also complements its products with services proven

to increase productivity and save clients time.

These services seek to avoid any uncontrolled

interruptions, such as those caused by radio

frequencies, pulses, electromagnetic, electrostatic

discharge and leakage current.

World leader in electronic detonators and initiation systems.

Nearly

200 years of experience

600employees

52

In 2015, many developed economies recorded higher

growth than in the prior year. This was especially true

in the United States where the GDP grew nearly 2.4%.

Meanwhile, the euro zone expanded nearly 1.5%, up

from the 2014 figure of 0.9%. On the other hand,

Chinese economic growth was about 6.9%, down

from the 7.3% recorded in 2014.

Mining Industry

The economy was dominated by the expected 2015 increase in the US

monetary policy rate, which was raised 25 base points in December

2015. The slowdown in China this year and the increase in copper

production inventories in Chile drove the average price of the red

metal down from US$3.11/lb in 2014 to $2.49/lb in 2015.

In 2016, based on increased demand from China, the United States

and India, copper prices are expected to average $2.15/lb.

These price projections could drive global copper demand upwards

by 2.3% in 2016 and 2.6% in 2017, according to studies by the Chilean

Copper Corporation (Cochilco). Cochilco also cites another reason for

the lower price projected for 2016: global copper supply is expected

to increase 4.6% as a result of expanded capacity and new projects in

Peru, a country expected to become the world's second largest

copper producer.

Copper Prices

Global Economic Performance

Emerging economies grew 4% in 2015, with India

standing out at 7.3%. Chilean economic growth was

similar to the prior year; at nearly 2.0%, its was above the

Latin American average.

In 2016, growth numbers are expected to rise for

developed economies. However, growth projections

place Chinese figures at nearly 6.3%, a decrease compared

to the 2015 figure of 6.9%.


Chilean mining operations produced nearly 5.76 million tons in

2015. The 0.25% increase leaves production practically unchanged

in relation to 2014.

In 2016, copper production levels are expected to remain steady,

increasing just 0.1%. According to Cochilco, growth is expected to

resume in 2017 at a rate of 3.1% for a total of 5.95 million tons.

As of year end 2015, the potential project portfolio and existing

investment for 2024 total nearly US$77 billion. If the entire project

portfolio comes to fruition, Chile can be expected to produce nearly

7.84 million tons in 2024.

Molybdenum, the most important sub product in copper production,

reached production levels of nearly 52,700 tons, a 7.8% change

relative to the year prior.

Copper Production

53BUSINESS AREAS

In 2015, the majority of commodities related to the

explosives market experienced price decreases; even

so, total production of these commodities remained

steady relative to the prior year.

On the other hand, these decreases have been offset

by the demand for explosives due to maturation of

mining sites. Reduced mineral grade and increase in

the overburden-ore ratio drive up consumption of

explosives. In other words, more blasting material is

required to keep production constant.

Despite falling commodity prices, the regional market

also remained in line with 2014. New projects and the

drop in mineral grade from mining sites kept the

demand for explosives steady.

Finally, at the local and regional levels, the explosives

market is expected to expand in the short- and

medium- term, primarily due to the project portfolio

in the region's main markets.

Explosives Market

CAPÍTULO 4 / SOCIAL PERFORMANCE

In 2015, following the acquisition of the

subsidiaries Britanite in Brazil and Davey

Brickford in France, Enaex's strategic challenge

is "to become a global company able to

operate in a multinational environment and to

be the industry's most prestigious company in

the world." Consequently, this year marked the

beginning of the second cycle of a cultural

transformation process that promotes

leadership and globalization, while we

continue to strive to become a

high-performance company.

The following section highlights the main

initiatives implemented in 2015.

Recognition ProgramIn 2015, the Company continued its recognition

campaign, which is designed to foster a culture that

encourages positive employee attitudes. This year, the

number of awards rose approximately 40%. Each year, the

program culminates with the Company's highest honor:

the Enaex Spirit (Espíritu Enaex) award.

Organizational ClimateAs it does every year, Enaex measured its workplace

climate. Results indicated high satisfaction as employees

highlighted aspects like pride in the Company's brand,

benefits and leadership

Flexible Benefit ProgramThe flexible benefit program allows employees to select

benefits according to their individual needs. This year's

enhanced program included additional alternatives within

the established categories. Launched in 2014, this year

the participation rate reached 92%.

Human Resource ManagementOrganizational Culture


57SOCIAL PERFORMANCE

Recruitment and SelectionThis year our employer brand was optimized by

updating the image of our recruitment platform,

cultivating relationships with universities and developing

new selection formats.

Internal MobilityIn 2015, 60% of vacancies were filled from within the

Company. Additionally, we began to offer intragroup

mobility as new subsidiaries were incorporated.

Young Professionals ProgramAt Enaex, young professionals are a differentiated

segment that receives special attention. The Company

aims to carefully develop their careers and separately

measures their perceptions of the work environment.

Talent Development and Succession PlansThe Company uses a performance-potential matrix to

continuously map and monitor its teams of professionals.

Executives meet periodically to identify critical positions,

succession plans and other relevant facets.

People at the Right TimeKnowledge ManagementGiven the highly specialized and growing nature of the

Company, the Human Resources Division began designing

a knowledge management model this year. The

long-term project ensures the Company's ability to

protect data and facilitate transfer of the knowledge that

gives it a competitive advantage and is inherent to the

business. The program leads to a certificate, for which

Enaex will apply in 2016.

CommunicationThis year's focus extends beyond current channels to

make the Company's leadership the main source of

communication.

As part of the process of integrating recently acquired

companies, a new newsletter is distributed to all Grupo

Enaex employees.

By Role

Senior Management 14

Management 99

Supervisory 381

Middle-Management 86

General 1,265

Subsidiaries 1,688

Employee Data

By Company

Enaex Servicios 1,401

Enaex S.A. 444

Britanite 975

Davey Bickford 600

Other Subsidiaries 113

As of December 31, 2015, the Company had

3,533 employees.

58

In 2015, Enaex provided more than 25,000 hours

of training to more than 1,500 people, making sure

to cover technical specialization, certifications and

re-training of critical positions.

The year's main programs are:

Maintenance Training, Prillex Plant:Training was provided on more than 30 topics, primarily technical and specific to the area of production.

Re-training, Prillex Plant:This program seeks to meet OSHA standards for operator training.

Training, Río Loa Detonator Plant: Initial training using interactive iBooks as a method of instruction. This pilot project will continue in 2016 in the explosives area and will be expanded to the plant's acid area.

Sales Model Program in Service Plants:This program for managers, supervisors, heads of plant and service KAMs seeks to teach concrete, client-focused tools for sales and key positions within the company.

Service Plant Certification:More than 350 employees were certified through a driver-certification plan for mobile manufacturing units instituted at all service plants.

English Program:Special efforts were made in the area of English-language training, including employees from all the regions where the Company operates.

Training Scholarship ProgramIn 2015, 51 employees had their studies funded by the

scholarship program. The program gives preference

to programs leading to technical and professional

degrees over post-graduate degrees.

Leadership ProgramEnaex is concerned with developing leaders and providing

the tools necessary for excellent performance. In

2015, special attention was paid to the concept of

natural leadership teams, which work with an expert

consultant to identify opportunities for improvement.

Leaders from the human resources area also joined

the effort in order to adopt the leadership technique

as part of corporate culture.

Training Labor Relations

Enaex conducted six successful collective bargaining

processes: four with unions (unions 1 and 2 as well as the

intercompany union at the Río Loa plant and union 4

from Radomiro Tomic) and two with negotiating groups

(Sierra Gorda and Mantoverde plants). Union leadership

gathered for its annual day of objective alignment and

training on new trends.

Organizational Diversity


Board of Directors Management Organization

Men 9 15 2,927

Women - 1 606

By Gender


Chilean 8 14 1,872

Brazilian - 1 954

French - 1 460

Other 1 - 247

By Nationality


Under 30 - - 848

Between 30 and 40 - 2 1,343

Between 41 and 50 . 6 777

Between 51 and 60 2 6 494


Over 70 5 - 1

By Age


Between 0 and 3 1 2 1,378


Between 7 and 8 - 1 212

Between 9 and 12 - 2 247

More than 12 6 4 742

By Years of Seniority

*At Enaex, the salary gap between men and women is close to 2.7%.

Driver fatigue and drowsiness are latent risk at

Enaex given the routes and distances driven. In

response, a Fatigue Control Program was implemented

at the Prillex plant in 2015. The project uses an

ocular control device (FIT 2000) into which an

individual's normal parameters are programmed.

When parameters are out of this range, the device

sends an alert. The early alert provided by the

device obliges drivers to rest, impeding their

departure until they pass the ocular control test.

The new fatigue control protocols drove the number

of serious transportation-related accidents down to

zero in 2015.

Fatigue and Drowsiness Detection Program

For the second straight year, Enaex has awarded

scholarships for training on Emergency Management

involving Hazardous Materials (HAZMAT) in the

United States.

In 2015, the scholarships were awarded to two

emergency response team members at the Prillex

and Río Loa plants and firemen in the Mejillones

and Antofagasta brigades.

The five-day course, aimed at Spanish speaking

emergency response personnel, took place at the

University of Texas. Participants earned a technical

degree in responding to emergencies involving

hazardous materials.

Scholarship for HAZMAT Training in the United States

In terms of comprehensive management of risks

related to operating processes and resource protection,

Enaex focused its efforts on enhancing worker

occupational safety and health to maintain the highest

possible level of physical, mental and social wellbeing

among its people.

The most common HSEC risk management activities

include pre-employment and on-the-job health screenings,

qualitative and quantitative assessments of risk agents,

epidemiological surveillance and programs that specifically

aim to control the risk of occupational disease.

In accordance with one of Enaex's main values, "Employee

Wellness", the Company has made special efforts to

promote a healthy lifestyle and self-care in order to

reduce cardio metabolic risks related to chronic

diseases like obesity, high cholesterol, diabetes, and thus

improve its employees' quality of life and job safety.

HSEC Risk Management


The following are highlights from the 2015 efforts to improve employee occupational health and wellbeing:

Safety Statistics

January - December 2015

Enaex S.A. Enaex S er vicios S.A

Frequenc y R ate* 0.0 1.01

Accident R ate** 0.0 0.21

Total Hours Worked 953,826 2,970,267

Average No. of Employees 438 1,404

* Number injured x 1,000,000/ Number of man hours worked

** Number injured x 100 / Number of workers

60

Community Involvement

The open door program seeks to increase community

awareness of the Company's operations by inviting

the community into its plants for monthly visits and

through Enaex employee visits to the community. In

2015, there were a total of 18 visits. The Company also

donated emergency evacuation vehicles to the

Integra day care center, supplies to the Julia Herrera

Varas school, personal protection equipment to

differently-abled youth at the Juan José Latorre

Benavente technical school, potable water to the

fishing village of Michilla and the funds collected

during the corporate matching campaign to the 2015

telethon. The Dual Education program incorporated

10 students into plant operations. Each worked under

the supervision of a mentor, then applied the knowledge

gleaned to specific projects.

The Prillex plant in Mejillones

continued its

Open Door and Dual Education programs.

At Green Day Mejillones, the entire community, including

families and the Company, came together around caring

for the environment by recycling. The mayor thanked

Enaex for organizing this important event which

demonstrates the Company's commitment to the

environmental wellbeing of Mejillones and its residents.

Enaex organized the �fth annual

Green Day Mejillones

Enaex also participated in the �fth annual

Expomejillones,

The event’s central theme was Sustainability. The Prillex plant's

energy efficiency and greenhouse gas reduction initiatives were

presented, along with the Company's community involvement

through planting trees in plazas and cleaning up the coastline.

Additionally, more than 500 plants from the Prillex plant

greenhouse, one of the symbols of Enaex's sustainability in the

community, were donated.



Like Prillex, the Río Loa plant has engaged with the

community on several social responsibility issues. This

year, Enaex partnered with the zone's farming community

to participate in the 2nd Agriculture Expo 2015—an

initiative by ProLoa. The Company also made a donation

to support the PRODEMU foundation's celebration of

Chile's national holidays. On the other hand, after last

September's earthquake in Chile's region IV, Enaex and its

service providers conducted an important aid campaign,

collecting cleaning supplies and nonperishable food

items for the families whose homes were damaged in the

town of Canela.

As part of our continued efforts to improve education for

children and young people, Enaex invited students

seeking technical-professional internships at the Job Fair

hosted by Minero B-10 school to visit the operations

conducted at the Río Loa plant where they can develop

their talent. Enaex's Human Resource Division also helped

the community by seeking to improve the employability

of people in poverty through an external training

program on general machine maintenance. The program

funds the studies of 15 individuals in the city of

Talcahuano. Participants may then apply for a position

at Enaex or continue their studies in the Risk

Prevention Program at the SK Group's Center for

Technical Training in Talcahuano.

In 2015, activities involving the Calama

community and the environment were also

redoubled. Thanks to installation of

containers for separating household waste,

Enaex and Calama Recicla collected a total of

1,962 Kg of plastic, paper, cardboard, glass and cans.

Furthermore, on November 10th, a Punto

Limpio recycling center was launched so that

service providers may separate their

household waste, thus comply with the

recommendations in Environmental

Assessments.

Finally, the Calama Decontamination Plan was

updated. Between October 21st and

November 30th, Enaex actively participated in

the call from Antofagasta's Regional

Ministerial Secretary of the Environment to

draft the first and second reports: "Updated

emissions information for breathable

particulate matter and its precursors in the

city of Calama."

CAPÍTULO 5 / ENVIRONMENTAL PERFORMANCE

64

Emissions Management and Carbon Credits

Carbon CreditsIn 2006, the Company implemented a Clean

Development Mechanism (CDM) project to reduce

nitrous oxide emissions from the nitric acid plant.

Thanks to this project, CO2 equivalent emissions at

the Prillex América complex in Mejillones are down

98%. On June 26, 2015, the United Nations approved

this project's accreditation for a second, seven-year

period.

Furthermore, the CDM project at the acid plant in Río

Loa, reduced emissions by approximately 50%.

Nitrous Oxide (N2O) Reduction in CDM Projects

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5 *

1,528

1,561

1,539

1,597

177 978 373

211 522 828

656207 676

642405 550

(in thousands of tons of CO2 equivalent)Potential Emissions without projects

Real Emissions Certified Emissions Reductions Un-certified Emissions Reductions

In 2015, the United Nations issued the company CERs (Certi�cates of Emissions Reductions) for nearly

550thousand tons of CO2 equivalent.

*Most recent measurement, March 2015.


2015 Carbon FootprintIn 2012, Enaex began to assess the environmental impact of its

operations, using GreenHouse Gas protocol methodology to

calculate its carbon footprint. Calculations are made in order to

seek continuous improvement, make performance information

more transparent and strive to be a low-carbon emissions

company.

The initiative revealed the strengths of greenhouse gas

emissions management, as well as the opportunities for

improving process efficiency. In 2015, emissions were

approximately 1.5 million tons of C02 equivalent—65% of which

were indirect emissions generated by third parties and related

companies, mainly attributable to purchases of inputs.

The 2015 Carbon Footprint, broken down by production plant

was: 95% Prillex América plant, 4% Río Loa plant and 1% Punta

Teatinos and offices.

Carbon Disclosure Project

In 2015, Enaex participated for the second time in the annual

climate change questionnaire, which the Carbon Disclosure

Project's (CDP) conducts of more than 4,500 companies around

the world. The survey is performed at the request of 822

investment firms that, in addition to assessing the financial

soundness and management of the companies where they

invest, also value commitment to climate change. The 2015 CDP

report recognized Enaex as one of the best companies in Chile

and Latin America in this area, earning 96% for transparency

(22% higher than 2013) and a B-rating for managing initiatives

that successfully reduce greenhouse gases. These results earned

the Company a place among the eight best companies in Latin

America and tied it with Colbún S.A. for the best in Chile.

65ENVIRONMENTAL PERFORMANCE

66

Since 2010, Enaex has developed energy efficiency

projects that have significantly reduced operating

costs while indirectly reducing CO2 equivalent emissions.

Energy Ef f iciency

In 2015, the Prillex complex in Mejillones used steam to self-generate

30% of total potential consumption. In terms of greenhouse gas emissions,

16,700

tons of CO2 equivalent were not released into the atmosphere.

Recycling Plastics

In 2015, Enaex and partner Greendot recovered

182,073 Kg in recyclable plastic waste—the equivalent of approximately 290 tons of CO2 equivalent.


67ENVIRONMENTAL PERFORMANCE

Regulatory Compliance Plan

As part of the Company's sustainable development, Enaex has established procedures to

identify and manage its regulatory obligations and thus mitigate the risk of sanctions and

losses resulting from breaches thereof.

There were three main milestones in 2015

2. Work continued on the Regulatory

Compliance Matrix, which is meant to

serve as a preventative control for

compliance with applicable legal

standards and regulations. In 2015,

progress was made on aligning these

matrices with those on operational

compliance at each production plant.

3. In order to encourage internal

compliance with the regulatory matrices,

like the protocols related to public

employees and entities, a training plan

was instituted for all Enaex workers. The

first phase included training at the

Santiago office and the La Serena and Río

Loa plants.

1. For the first time, internal criteria for

distinguishing the Company's legal

documents were established. A formal

database makes it possible to quickly

and easily identify applicable legal

documentation for all the Company's

everyday paperwork, processes and

procedures.

Documents

Memoria 2015 Enaex P. 001-067