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Governance

"The value of a robust governance framework comes into its own in these challenging times." 

As a company with a premium listing on the Main Market of the London Stock Exchange, Hochschild Mining is required to report on the application of the principles and compliance with the provisions of, the 2018 edition of the UK Corporate Governance Code

Please click here for a copy of the Company’s statement of compliance in respect of 2020 which also describes our governance framework. 


THE HOCHSCHILD APPROACH TO GOVERNANCE

The Hochschild Group was established over a hundred years ago and, over time, we have differentiated ourselves not only as a sound mining operator but also in striving to achieve the highest standards.  This has been articulated most recently in our reformulated corporate purpose – “Responsible and Innovative Mining Committed to a Better World”.  It is this sense of responsibility that underpins our approach to governance.

Through effective leadership and collaboration, the Board supports the executive management team to ensure the successful delivery of our strategic goals.


THE BOARD

The Board comprises the Chairman - Eduardo Hochschild, the Chief Executive Officer and seven Non-Executive Directors, of whom six are considered, by the Board, to be of independent judgement and character.  A schedule of matters reserved for consideration by the full Board can be accessed here.

For more information on members of the Board please click here

The Board has approved a document which sets out the division of responsibilities between the Chairman and Chief Executive Officer.  Copies of these documents are available here


THE CHAIRMAN

Even though Eduardo Hochschild is the company’s major shareholder, the Board members consider that the composition of the Board and certain contractual arrangements act as a counter balance which prevent the exercise of undue influence.

Firstly, the significant presence of Independent Directors and the active role of the Senior Independent Director ensure that the views of minority shareholders are well represented. Secondly, the Company and Eduardo Hochschild have entered into a Relationship Agreement to ensure that the Group can operate independently of Eduardo Hochschild and his associates.


GOVERNANCE IN 2020

Impact of Covid

Every business across the globe has been impacted by the Covid-19 pandemic and such a crisis highlights the value of a robust governance framework. This report highlights how, against the backdrop of operational challenges, your Board has sought to lead effectively, and monitor progress against our strategic objectives through the implementation of processes, actions and controls.

The challenges arising from the pandemic have required us all to adapt. After our only in-person Board meeting in Lima in February 2020, all subsequent meetings of the Board and its Committees have been convened via video conference. This new way of working and a constant dialogue with the management team has allowed the Directors to bridge any gap in communications which is critical during this period of fast-changing developments.

Non-Executive appointment

I am delighted to report that in light of our Board evaluation process and succession plan, an opportunity was identified to add skills to the Board that would be aligned with our strategy as well as increasing the gender diversity of the Board. Following a process overseen by the Nomination Committee, the Board confirmed the appointment of Jill Gardiner as an Independent Non-Executive Director. She brings long-standing investment banking experience from the Canadian capital markets, a key hub for the mining sector.

2020 Board evaluation

I would also like to highlight the continued benefits that have accrued from our internal Board evaluation process which we report on in more detail from page 88. Regrettably, due to the Covid-related travel restrictions, we were unable to proceed with an externally facilitated evaluation as we had intended.

For further details, please click here.