How do you approach managing legal aspects during periods of instability or crises, and how does your legal strategy align with the broader business strategy to ensure the organisation’s resilience?

Managing legal aspects during periods of instability or crisis is fundamental to safeguarding Orica’s interests and stability. As the leader of the regulatory area in Latin America, I have encountered various critical moments where we have adopted a proactive and multifaceted approach closely aligned with the global business strategy to ensure resilience and business continuity.

With a presence in over 130 countries and clients worldwide, we prioritise early identification of potential legal risks. This enables us to take preventive and mitigating measures in a timely manner, thereby avoiding contractual defaults.

Due to these factors, I am convinced that our strategy is based on three pillars.

Firstly, proactive risk management. We implement preventive measures to anticipate and mitigate potential adverse legal impacts. This involves regularly reviewing and updating internal policies, contracts, and procedures to ensure compliance with legislation and corporate standards, and adapting to changing circumstances. This pillar is embodied in Orica’s platform of enabling titles and regulatory obligations, overseen by the regulatory area, which contains a complete record of tasks, responsible parties, and due dates.

Secondly, efficient dispute resolution, legal challenges are addressed proactively and efficiently, prioritising prompt and favourable dispute resolution. This may involve negotiation of out-of-court settlements, mediation, or ultimately, defence in legal proceedings. In practice, this is achieved by maintaining open communication with our employees, suppliers, and clients, providing them with efficient communication platforms to resolve any disputes.

Finally, strategic collaboration. We work closely with the operational and commercial areas of the company to align the legal strategy with the organisation’s objectives and values. This ensures that our actions support and reinforce the business strategy in a cross-cutting manner, strengthening Orica’s resilience and adaptability in the face of uncertainty, while also ensuring that our activities maintain high standards.

How do you prioritise diversity and inclusion within your legal department, and what initiatives have you implemented to foster a more inclusive and equitable work environment?

In our regulatory department, promoting and showcasing diversity and inclusion is fundamental to fostering a more equitable and enriching work environment, especially in the mining sector where female labour participation is around 6%. With this in mind, we have implemented several initiatives to promote diversity and inclusion within our team.

We organise programs and workshops to sensitise our team, addressing issues such as unconscious bias, equal opportunities, and the creation of an inclusive environment. Additionally, we push the team to participate in events organised by our stakeholders in this area, such as Women in Mining and the Australian Embassy.

We also strive to implement hiring policies that promote diversity and inclusion, ensuring that a wide range of talent and experience is considered. A significant milestone was the development of the Orica School for Women Operators project, which launched in 2023. This initiative led to a significant increase in female participation in Latin America, rising from 10% to 18%, well above the aforementioned average of 6%.

We actively encourage the creation of affinity groups within the organisation, where employees can connect, share experiences, and provide mutual support in a safe and welcoming environment. For instance, on March 8th, we are organising a conversation that will bring together women from all the countries where Orica operates. During this event, we will share experiences and showcase inspiring women.

Furthermore, we regularly evaluate our internal policies and practices to identify areas for improvement concerning diversity and inclusion. A particularly useful tool for developing this pillar is Orica’s global open and anonymous line through which concerns, ideas, or proposals for improvement can be raised.

Can you discuss a particularly challenging dispute or M&A scenario you encountered and the innovative strategies you implemented to address it?

One of the most challenging scenarios I encountered was being part of the executive team representing Exsa during its US$203mn acquisition by Orica. As one of the five executives involved, which included Exsa’s CEO, CFO, CLO, and two senior-level advisors, I played a crucial role in navigating the complex legal landscape surrounding the M&A process.

Our primary task was to assess compliance with licenses, permits, and authorisations from various governmental bodies, including the Explosives Superintendence, Peru’s Financial Intelligence Unit, and ministries such as Production, Interior, Environment, Energy and Mines, and Agriculture. This involved a meticulous review of documents and interviews with managers from multiple business areas to ensure legal compliance, assess the duration of permits, and evaluate the feasibility of over 50 types of permits.

To address these challenges, we implemented innovative strategies such as drafting comprehensive legal memoranda and reports detailing our findings. Additionally, we established clear communication channels and promptly responded to queries from external lawyers in Peru and Australia, ensuring transparency and alignment throughout the process.

Our proactive approach and attention to detail were instrumental in overcoming the complexities of the transaction. By leveraging our collective expertise and adopting innovative strategies, we successfully navigated the legal intricacies associated with the M&A, ultimately facilitating a smooth and successful acquisition for both parties.