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Transcript of Primero csr 2013
SuStainability RepoRt 2013
Committed to
SuStainability
contents
about primero 1
about this Report 2
letter from the president and Ceo 6
ethical, transparent Governance 9
materiality and our Key Stakeholders 13
building primero Value 15
Committed to our people 18
Committed to our Communities 28
protecting the environment 34
in Closing 44
GRi index 46
Corporate directory ibC
Committed to
SuStainability
All currency is in United States dollars (USD) unless otherwise noted.
Front Cover Photo: Bianey Alvarado (Environmental Coordinator) and Emmanuel Santana (Environmental Supervisor) conducting quarterly water sampling along the Piaxtla River.
1
P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
Primero is a Canadian-based mining company that
recently took its place among the mid-tier ranks
of precious metals producers. As of early 2014, the
company has two producing mines, the San Dimas
mine in Mexico and the Black Fox mine in northern
Ontario. The company also has a development
project, Cerro del Gallo in Mexico, and an advanced
exploration project, Grey Fox, which is adjacent to the
Black Fox property. A third property in Mexico, the
Ventanas project, is in the exploration phase.
This growth follows a record-breaking year
of production growth, reserve expansion and the
announcement of the Brigus acquisition. This report
only discusses results at the San Dimas mine, which,
in 2013, was the company’s only operating mine.
Last year’s production at San Dimas exceeded
143,000 gold equivalent ounces.
As a multi-mine company, with operations in two
countries, we are in the process of establishing
corporate-wide policies and procedures for Corporate
Social Responsibility to ensure consistency in our
goals and measurement as we move into the future.
About PRiMERO
2
P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
W e are proud to present our third annual
Sustainability Report, which highlights our
achievements and challenges in 2013.
As we grow, we will not lose sight of our objectives of
continuous improvement to workplace health and safety,
environmental performance, and of sharing the benefits
of mining throughout our host communities. We remain
committed to transparency and accountability in sustain-
ability reporting. We have appointed a new Vice President
of Corporate Responsibility, whose many responsibilities
include working to improve data collection and reporting,
and encouraging the engagement of employees, communi-
ties and other stakeholders in our sustainability initiatives.
This report covers the period of January 1 through
December 31, 2013. its content is guided by common prin-
ciples in sustainability reporting in our industry and by the
findings of an extensive internal materiality assessment
process, which is described later in this report. in the
future we will broaden these materiality discussions to
include various external stakeholder groups.
Economic performance is not emphasized in this report: as
a public company, our financial results are audited annually
and reported on a regular basis, and our Annual Reports,
Financial Reports and Regulatory Filings are posted on our
website. Nonetheless, key economic drivers are discussed
in the Delivering Primero Values section of this report.
This report is primarily based on data collected at
and around our San Dimas mine in Mexico. Our other
properties are not discussed: the acquisition of the Cerro
Del Gallo property was completed in May 2013, and
the acquisition of Brigus Gold (the Black Fox mine and
Grey Fox advanced exploration project) was completed
in early 2014. All of our assets will be included in the
2014 Sustainability Report. The environmental and
broader sustainability impact of our offices in Toronto,
Vancouver and Mexico City had little effect on our overall
impact, and the offices’ energy consumption data are not
included in the environmental data.
This report is based on data collected in 2013, with
comparative data from previous years. Our previous
Sustainability Reports contained errors in water
consumption data, which is discussed later in this report;
but there are no significant changes from previous
reporting periods in the scope, boundary or measurement
methods applied.
For any questions regarding this report or its contents,
please contact us at [email protected].
GRi deClaRation
This report is based on the standards of the Global
Reporting initiative (GRi), and represents Primero’s second
Sustainability Report to attain a GRi level C standard
of sustainability reporting. The GRi is an independent
institution that has developed voluntary guidelines for
sustainability reporting. The mining and metals sector
supplement of the GRi reporting guidelines have also
been considered and available data is included in this
report. We believe that the GRi reporting guidelines help
us to maintain a high standard of transparency, clarity
and comparability, and that applying GRi standards
demonstrates our commitment to transparent reporting,
especially in those categories that are most important to
our stakeholders. A GRi index can be found at the back
of this report.
About THiS REPORT
Our ongoing assessments of materiality will, in the future, increase the breadth of engagement in our sustainability reporting. We will be engaging in formal exercises to refine our definition of stakeholders and to survey their reporting needs.
3
P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
At Primero, we believe that sustainability is
fundamental to our success. At the corporate
level and in our relationships with our host
communities, our prosperity depends on
good corporate governance and building a
solid framework for economic, community
and environmental sustainability.
Our four-step approach to sustainability begins
with creating and nurturing a corporate culture
based on a vision of environmental stewardship,
social progress, economic achievement, and
ethical, transparent governance. That vision
translates into values that inform decision-
making and that, ultimately, guide our
behaviours, as a company and as individuals.
The second step is to apply that vision and those
values to developing policies and procedures that
support sustainability with consistency and rigour,
through standardized company-wide systems.
Third, our sustainability practices must
focus on materiality: on those aspects of our
corporate behaviours that most concern our
stakeholders. if we engage our stakeholders
and ascertain their priorities—and then focus
our efforts on those concerns—we are better
positioned to manage risk. Later in this report,
our approach to materiality is discussed at
length. in 2014, we will enhance our stakeholder
engagement and use the results to review and
refine our Corporate Responsibility Strategy.
The fourth step is ongoing engagement. Only by
engaging with our stakeholders, including our host
communities, can we build strong relationships,
develop alliances and maintain a long-term,
balanced approach to sustainability. As Primero
has become a mid-tier mining company with two
producing mines, we are undergoing a thorough
sustainability policy renewal process. Visit our
website for more: www.primeromining.com.
manaGement’S appRoaCh to SuStainability
“ Our philosophy is focused on
generating economic, social
and environmental value in
the places where
we operate.”homero Valenzuela Social Responsibility Manager, Mexico
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
eConomiC aChieVement
By maximizing earnings and reducing operating costs,
we produce results for our shareholders while also
contributing to the economic and social development
of our host communities. Only by creating value for our
shareholders and host communities, can we sustain our
company over the long term.
Community enGaGement
We actively engage in meaningful dialogue with local
residents, community leaders and organizations to
identify opportunities and priorities for economic
improvement, better training and social development.
We support schools, health care and local infrastructure,
and we continually seek development opportunities
that will contribute to a self-sustaining economy in the
communities surrounding our operations.
in February 2014, for the third consecutive year, Primero’s
CSR framework and commitments were assessed and the
company was again awarded the “Empresa Socialmente
Responsable” (ESR) or “Socially Responsible Company”
designation by CEMEFi, the Mexican Center for
Philanthropy. This is a prestigious award that has been
given to fewer than 950 companies in 2013. it recognizes
companies that are committed to sustainable economic,
social and environmental operations in all areas of
corporate life, including business ethics, employee
health and safety, involvement with the community,
and preservation of the environment.
enViRonmental SteWaRdShip
At all times, we seek to operate in a responsible manner
and to mitigate the impact our operations may cause to the
environment. We operate with an awareness of the mine’s
life cycle and practice the progressive rehabilitation of areas
affected by our activities.
ouR StaKeholdeRS
This report is written for Primero stakeholders, including:
employees and their families
our host communities
legislators and government officials
shareholders, investors and financial analysts
civic, special-interest and non-governmental advocacy organizations (NGOs)
These groups are generally accepted as key stakeholders
for sustainability reporting, and we engage with them
through our AGM, community meetings, website
and a dedicated email address.
Our ongoing assessments of materiality will, in the future,
increase the breadth of engagement in our sustainability
reporting. We will be engaging in formal exercises to refine
our definition of stakeholders and to survey their reporting
needs. Also see Materiality and Our Key Stakeholders, later
in this report.
We invite sustainability-related comments and
suggestions at our dedicated email address:
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
LETTER from the President and CEO
F or Primero, 2013 was a year of growth,
diversification, and record-breaking performance.
At the San Dimas mine, our continued commitment
to achieve zero harm had tangible results: the lost-
time injury frequency rate was approximately half that
of 2012, while annual gold production was up nearly
30%. We completed the acquisition of the Cerro del
Gallo development property and began the acquisition
process—which is now complete—of the Black Fox
mine and the Grey Fox advanced exploration project.
With these acquisitions, our workforce has grown
from 1,300 to over 1,800.
in preparation for our next phase of growth, we renewed
our corporate obligation to sustainability. We crafted
a statement of Primero “Vision and Values”, that puts,
in simple language, the core principles of our culture of
corporate responsibility. We are now in the process of
bringing this vision and these values to every one of our
operations. They will guide our behaviour and decision-
making as we mature as a company.
in recent years, investors and other stakeholders have become increasingly concerned with our industry’s sustainability priorities. Sustainable practices are seen as major risk-mitigating factors. As Primero has grown, we have consciously expanded our sustainability team. Not only is this the best practice for health, safety, the environment, and the welfare of our local communities, but it’s a significant component of corporate risk management. We are committed to responsible, sustainable mining, and we are building the framework for consistent industry-leading performance within a culture of continual improvement.
i am proud to note that, in 2013, the San Dimas mine was certified as “Clean industry” by the Mexican environmental authorities.
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
in this light, i would like to note our continued
commitment to sustainability, as demonstrated by the
addition of a new executive to our senior management
team: James Mallory, the Vice President of Corporate
Responsibility. His mandate reflects our proactive stance
on sustainability, responsibility and transparency. Led by
our newest Vice President, we have begun the processes
of policy renewal in health and safety, environmental
monitoring and reporting, and corporate social
responsibility. We have initiated a company-wide process
for materiality: a process that, essentially, identifies the
most important issues to our business and stakeholders
for our sustainability reporting. Early results of that
initiative can be seen in this report. in 2014, and beyond,
our materiality outreach will expand to embrace
external stakeholders.
i am proud to note that, in 2013, the San Dimas mine was
certified a “Clean industry” by the Mexican environmental
authorities. We intend to maintain that designation in the
future. We also earned the coveted ESR designation
Joseph F. Conway
President and CEO
(in English, “Socially Responsible Enterprise”),
for the third consecutive year, for our best practices
and sustainability policies.
i would like to take this opportunity to thank the people
of Primero. Our remarkable progress would not be
possible without everyone’s hard work and dedication.
As we look to the future, our focus is on the long term.
We believe that we can only thrive when we act with
responsibility, transparency and accountability toward
our local communities. We share in the benefits of
mining and expend considerable effort in protecting the
health and welfare of our people, the economies of the
communities in which they live and the environment
that sustains us all.
primero management (from left to right): Gabriel Voicu VP, Geology and Exploration, tamara brown VP, Investor Relations,
James mallory VP, Corporate Responsibility, Joseph F. Conway President & CEO, louis toner VP, Project Development and Construction,
h. maura lendon VP, Chief General Counsel and Corporate Secretary, Renaud adams COO and david blaiklock CFO.
Not pictured: david Sandison VP, Corporate Development
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
S ocial responsibility and sustainable development
are integral to our company-wide strategy. Our
corporate sustainability program guides our policy and
decision-making regarding environmental protection, the
health and safety of our people, and the socio-economic
development of our host communities. Our goal is to
continuously improve workplace health and safety and
environmental performance, and to share the benefits
of mining with local communities.
Code oF buSineSS ConduCt and ethiCS
Our operating practices are governed by our corporate
Code of Business Conduct and Ethics. The Code is
applicable to all directors, officers and employees. it
embodies the commitment of Primero and our subsidiaries
to conduct business in accordance with all applicable laws,
rules and regulations and the highest ethical standards.
The complete Code of
Business Conduct and Ethics is available in the
Corporate Governance section of the Primero website
(www.primeromining.com).
CoRpoRate ReSponSibility Committee
Sustainability practices are governed by the principles
set out in our Health and Safety Policy, Environment
and Social Responsibility Policy and Code of Business
Conduct and Ethics. The Board’s Corporate Responsibility
Committee (CRC), formerly the Environmental,
Health and Safety Committee, provides oversight in
occupational health and safety, community relations,
and environmental management.
The purpose of the CRC is to review and
recommend corporate policies
and programs and monitor activities as they relate to
health, safety, environment and social matters. The
CRC reports to the Board. Two of the three members of
the CRC are independent members of the Board.
Reflecting our focus on sustainability, a new Vice
President of Corporate Responsibility was appointed in
March 2014. Reporting directly to the COO, the new
VP is responsible for Occupational Health and Safety,
Environmental Management, Community Relations,
and Risk Management.
Our internal weekly and quarterly reporting tracks key
Corporate Responsibility performance indicators. The
complete CRC guidelines are available on the Primero
website (www.primeromining.com).
For 2014, the CRC will be reviewing Primero’s processes
for materiality in sustainability reporting, and ongoing
policy implementation in Health and
Safety, environmental practices
and corporate social
responsibility.
ETHiCAL, TRANSPARENT Governance
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
We invite CRC-related recommendations or direction
from shareholders, employees or other stakeholders at our
dedicated email address: [email protected].
human RiGhtS
Primero respects internationally proclaimed human
rights, and strives to ensure that we are not complicit
in human rights abuses. There have been no incidents
of discrimination, nor have there been any incidents of
violations involving the rights of indigenous peoples,
at any mine or project under Primero’s management.
ColleCtiVe baRGaininG and FReedom oF aSSoCiation
All Primero workers enjoy the right to freedom of
association as provided by applicable labour law. There
are two unions at the San Dimas mine, and approximately
53% of San Dimas employees are unionized. in March
2011, there was a strike at the San Dimas mill that lasted
32 days until the unions and management reached a
mutually satisfactory agreement. There have been no
strikes since that time. We do not believe that the right to
exercise freedom of association and collective bargaining
is at risk at any Primero location.
WoRKplaCe diVeRSity, non-diSCRimination and eQuity
At Primero, we do not discriminate on the basis of race,
religion, ethnicity, national origin, colour, gender, age,
sexual orientation, citizenship, veteran status, marital
status or disability. Harassment, including sexual, physical
and verbal, is prohibited. We do not allow forced or
compulsory labour.
We do not allow child labour as defined by the
international Finance Corporation (iFC) and Primero will
not knowingly employ a person who is under the legal
age of employment or where that employment would
contravene the iFC definition of child labour. There were
no incidents of child labour reported to the company
in 2013, nor were any operations considered to have
significant risk for incidents of child labour.
ComplianCe With laWS and ReGulationS
in 2013, there were no legal actions taken against the
company for anti-competitive behaviour. There was no
form of non-monetary sanction taken against the site
during the reporting period.
in 2012, the Federal Attorney for Environmental Protection
(PROFEPA) notified the Company of a 31,200 peso fine
related to a tailing spill in 2012. The resolution notification
referred to non-compliance to a “hazardous waste”
regulation. in March 2013, the Company and PROFEPA
came to terms that the tailings are not considered
“hazardous waste”, at which point the Company agreed
to pay the nominal fine, which was paid in the first quarter
of 2013. Following the corrective actions implemented by
the Company, an external consulting firm completed an
on-site inspection and concluded that the actions taken
by the Company were sufficient and that no long-term
damage to the aquatic life had resulted.
“ It’s an inclusive process, where we can’t do it alone. We value the contributions of our employees and our community. And I think the community feels that
they’re being heard.”Jim mallory VP Corporate Responsibility
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
WhiStlebloWeR poliCy
in 2013, our corporate Whistleblower Policy was
updated to reflect leading ethical practices. it allows
any employee to communicate a concern or complaint
confidentially and anonymously, with the expectation
of a timely response and the assurance that there will
be no retribution or negative consequences. Employees
have three options to communicate concerns securely
and anonymously. All employees are informed of these
channels, which are also posted on our website.
ConFliCt-FRee Gold
The Conflict-Free Gold Standard is an industry-led
approach to combat the potential misuse of mined gold
to fund armed conflict (www.gold.org). Primero supports
the World Gold Council in its efforts to eliminate unethical
gold production and to increase transparency of gold
mining companies. The gold that we produce is in
conformance with the Conflict-Free Gold Standard:
it has been extracted in a manner that does not cause,
support or benefit unlawful armed conflict, nor does
it contribute to serious human rights abuses or breaches
of international humanitarian law.
in 2013, we conducted an assessment and process
review to ensure our compliance with the Conflict-Free
Gold Standard. Our internal assessment and processes
were then reviewed by Ernst and Young LLP (EY), who
carried out a limited assurance engagement on Primero’s
Conflict-Free Gold Report for the San Dimas mine’s
operations in 2013. The complete report, Conflict-Free Gold
Report for Primero Mining Corp, along with EY’s limited
assurance statement, are available on the Primero website
(www.primeromining.com).
We’re Listening ! Speak Up with Confidence through ClearView Connects™
3 Easy Options: 1. Online: www.clearviewconnects.com 2. Phone: 0 1 800 253 3222 (Mexico) 1 866 840 8719 (Canada) 3. Mail: P.O. Box 11017 Toronto, ON M1E 1N0 Canada
We’re Listening ! Speak Up with Confidence through ClearView Connects™
3 Easy Options: 1. Online: www.clearviewconnects.com 2. Phone: 0 1 800 253 3222 (Mexico) 1 866 840 8719 (Canada) 3. Mail: P.O. Box 11017 Toronto, ON M1E 1N0 Canada
TABLE 1 the Complete liSt oF mateRial iSSueS ConSideRed in 2013’S inteRnal aSSeSSment
environmental stewardship
Stakeholder engagement and social progress economic achievement Governance
Energy useCommunity trust and social license to operate
Local procurement Ethical business practices
GHG emissions Community wellness Resource nationalism Regulatory compliance
Tailing management Diversity and inclusiveness Tax reform and legal risk
Water management Education and training Value creation
Employee training and career development
Wealth distribution and economic contributions
Health and safety
infrastructure and services
Land access
Security
Supplier development
“ We really want to understand our stakeholders’ sustainability concerns and what role we play in working
together with them.”Jim mallory VP Corporate Responsibility
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
I n a Sustainability and Strategy Report, it is essential
to identify the material topics—those economic,
environmental, social and governance topics of greatest
importance to our stakeholders and to the company—
and the threshold at which aspects become sufficiently
important that they should be managed and reported.
in 2013, we committed to a process of internal
assessments of materiality and during the year we began
the process. We utilized independent guidelines and
standards, described in Global Reporting initiative (GRi)
guidance and best practices used to define materiality
for Sustainability reporting.
We explored many potentially material issues, which were
identified through industry benchmarking, international
standards, emerging issues and internal discussions.
We discussed their importance to Primero’s vision for
sustainable development. Through this exercise, we
developed an initial ranking of material issues and their
importance to the business. The list was further refined
using the Primero Enterprise Risk Management (ERM)
process to plot the issues and assess the possible
risks they may pose.
The material issues and priorities identified in the internal
assessment will drive our sustainability reporting and our
medium to long-term strategy. Our reporting will improve
as we focus on performance measures and other key
performance indicators (KPis) that reflect and address
our stakeholders’ concerns.
The internal assessment determined these material
issues and priorities: 1) Health and Safety, 2) Community
Trust and Social License to Operate, 3) Value Creation
and Wealth Distribution, 4) Regulatory Compliance and
5) Water Management. The complete list of issues
considered is in the table on page 12.
While we understand that all the issues are important,
it is valuable to establish priorities in order to take a long-
term, focused, balanced view of the most material issues
to our business and our stakeholders.
in 2014, we will continue to improve our process for
reporting materiality through a validation process with
our key external stakeholders and refine our Corporate
Responsibility strategy.
MATERiALiTY and Our Key Stakeholders
Community tRuSt and SoCial liCenSe
to opeRate
PAGE 29
Value CReation and Wealth diStRibution
PAGE 15
ReGulatoRy ComplianCe
PAGE 10
WateR manaGement
PAGE 36
1
2
3
4
5
health and SaFety
PAGE 19
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
$111MStRonG CaSh balanCe
29%pRoduCtion inCReaSe
32%ReSeRVeS inCReaSe
$200MReVenue GRoWth
15
P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
P rimero is a Canadian-based company with
headquarters in Toronto and offices in Vancouver
and Mexico City. in May 2013, Primero Mining acquired the
Cerro del Gallo development project and in late 2013, the
acquisition of Brigus Gold was announced. in March 2014,
that deal was finalized, transforming Primero into a multi-
mine company with the addition of the Black Fox mine.
in 2013, we operated one mine, the San Dimas mine
in Mexico’s San Dimas district, as well as the Ventanas
exploration project in Durango State. Most of the data in this
Sustainability Report relates to San Dimas, but our corporate
offices are included where relevant.
Primero is developing a good relationship with the com-
munities around the Cerro del Gallo property and is planning
a more comprehensive stakeholder mapping and community
engagement program for 2014. Because of the limited field-
work on the Cerro del Gallo property, which was acquired in
May 2013, its performance data is not covered in this report.
BUiLDiNG Primero Value
TABLE 2 San dimaS FaCtS
ownership 100% Primero
locationState of Durango (central west Mexico), approximately 150 km west of Durango,
125 km northeast of Mazatlán
descriptionGold-silver deposit
Underground mine, using mechanized cut-and-fill mining methods and longhole
2012 2013
production Gold equivalent* ounces 111,132 143,114
Gold ounces 87,900 111,983
Silver million ounces 5.13 6.05
Staff Employees 1,148 1,247
Contractors 117 73
% Union members 45.6% 52.6%
% Mexican 100% 99.9%
* Gold equivalent ounces include silver produced and converted to a gold equivalent, based on average commodity prices received in the period.
Our products are sold to refineries or smelters, and then into worldwide precious metals markets. We do not sell directly to the public.
Vancouver Corporate Office
Toronto Corporate Office
Black Fox Mine
San Dimas MineCerro del Gallo Project
Mexico City Office
Grey Fox Exploration Project
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
TABLE 3 diReCt eConomiC ReVenue GeneRated in 2012 and 2013
direct economic value generated (in uS dollars)
2012 2013
a) Revenues 182,939,000 200,326,000
economic value distributed
b) Operating costs (goods and services) 38,569,645 47,353,724
c) Employee wages and benefits 28,683,336 37,549,034
d) Payments to providers of capital 19,074 14,843,000
e) Payments to governments (Mexico) 591,633 728,565
f) Community investments 826,089 836,242
economic value retained 114,249,223 99,015,435
Greater detail on the company’s and mine’s revenues,
production, customers and markets is included in the
Annual Report, which is available on Primero’s website:
www.primeromining.com.
loCal pRoCuRement
Primero is committed to helping create a sustainable
local economy through local purchasing and small
business development. At the San Dimas Mine a local
supplier is providing uniforms for our employees and
a number of new entrepreneurs are providing trucking
services to mine operations.
in 2014 we will explore environment and social
performance requirements for suppliers and
contractors at all our operations and continue
to promote local entrepreneurship.
diStRibution oF GoodS and SeRViCeS puRChaSed in 2013
Local (Tayoltita)
Regional (Durango state)
National (rest of Mexico)
international
67%
16%
16%
1%
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
Committed to ouR
PEOPlE
“ It’s not that one individual is going to work towards sustainability, it’s something the whole organization needs to work on together.”Jim mallory VP Corporate Responsibility
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
ouR ViSionTo be the most respected precious metals producer in the Americas, admired for the excellence of its people, its values and its delivery on commitments.
ouR ValueS
ReSpeCt We value the diversity of our employees and other stakeholders and treat each other with dignity and honesty.
inteGRity We are uncompromising and consistent in our commitment to transparent, responsible actions.
FoCuSed We have the courage to take bold steps to excel and we apply a disciplined approach to deliver on our objectives.
teamWoRK We work together and recognize that each person contributes and makes a difference.
health and SaFety
At every Primero mine and project, we strive to protect the health, safety and
welfare of our people and their communities. We focus on safety leadership
and fostering a safety-first work culture through programs like our Zero Harm
program and our Circles of Prevention. The Zero Harm program focuses on
10 critical tasks, such as rock scaling, driver accreditation, and explosives
handling, and ensures that employees performing those tasks have the prior
training and, if appropriate, the accreditation. in 2013, our injury statistics
continued to improve: accident frequency declined by 25% and the
All Accident Frequency index dropped for the sixth consecutive year.
COMMiTTED to Our People
As we grow from a one-mine operator to a multi-mine
company, we are very focused on our core asset—our
people. Our first priority is our people, and their safety
and well-being on the job, their human rights, and their
professional development.
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
health and SaFety GoVeRnanCe
At the San Dimas mine, there are a number of committees
and groups whose purpose is to maintain a safety-first
culture and monitor safety performance. in total, more
than 130 employees or 10% of the workforce participated
in the different committees and continuous improvement
working groups.
Central Safety and Security Committee, a Formal Health and Safety Committee, guides our Health and Safety Administration system. The committee is chaired by the mine’s General Manager and includes operations and services superintendents (permanent members) and area heads, supervisors and employees (temporary members). The committee meets on a monthly basis to discuss potential risks and preventive measures, and to choose a safety “employee of the month”.
documentary System Subcommittee, an 18-member subcommittee, has joint management/labour representation and defines safety-related work procedures and instructions.
preventive observations Subcommittee detects unsafe acts and conditions and follows up until they are corrected. in 2013, there were more than 3,000 of these preventive observations conducted (approximately eight per day).
accident and incident investigation Subcommittee analyzes and investigates lost-time accidents and near-miss incidents. in 2013, three lost-time accidents and six near-miss incidents were investigated.
Circles of prevention at San Dimas enhance a safety-first work culture through developing improvement opportunities and helping monitor and advise on occupational safety programs. in 2013, there were five different working groups, on subjects including assessing rock fall incidents, improving underground workplace conditions, reducing risk in the processing plant, and maintaining an orderly workplace.
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TABLE 4 SaFety SyStem Key peRFoRmanCe indiCatoRS
2013 Key performance indicators % Completion
Health and Safety Committee Meetings
82%
Supervisor Safety Meetings 68%
Scheduled inspections 75%
Planned Hazard Observations 33%
Corrective Actions Closed 75%
Key peRFoRmanCe indiCatoRS FoR impRoVed health and SaFety
Our ongoing Health and Safety governance processes are
generating leading Key Performance indicators (KPis) for
health and safety. These are proving valuable in helping us
adjust our focus to the factors that represent higher risks,
and helping us focus on early corrective measures, which is
already resulting in improved safety performance.
We are committed to generating, and acting on, more
KPis as we continually review and refresh our safety
management system.
ComplianCe With StandaRdS
The mine was inspected three times by the regulators
and no examples of non-compliance were observed.
in addition, a new Standard for Underground Mines
was implemented in October of 2013.
health and SaFety peRFoRmanCe
Primero recognizes the dangers inherent in the type of
work we do. Accordingly, we place enormous emphasis
on safe work practices and training—efforts that have
resulted in a steady year-on-year decline in overall
accident frequency.
Our ultimate objective is to become a zero harm
operation. For 2014, our goal is an overall reduction
of 15% in our All injury Frequency rate at operations
in Canada and Mexico.
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
“ We know that mining is a high-risk activity; however, we are taking every possible measure to identify those risks, give our workers the tools to
control them and, this way, have a safer work environment.”miguel mares Safety and Environmental Manager
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
1.85
1.10.95
1.5
2011 2012 2013 2014
* LTIFR is the number of lost-time injuries per 200,000 hours worked. (Lost-time injuries x 200,000 hours) ÷ Total Hours Worked.
** AIFR is the number of all injuries per 200,000 hours worked. Includes employees and contractors at all sites and corporate offices as well as the corporate exploration team.
TABLE 5 inJuRy FReQuenCy
injury type 2011 2012 2013
Lost-time injuries 3 6 3
Total reportable injuries 27 20 17
Significant potential incidents 65 42 29
Fatalities 1 1 0
LTiFR (lost-time injury frequency rate)
0.18 0.36 0.17
AiFR (all injury frequency rate) 1.84 1.50 1.12
For 2014, our goal is an overall reduction of 15% in our All Injury Frequency rate at operations in Canada and Mexico.
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
health pRoteCtion and tRaininG
in addition to injury prevention, the San Dimas mine’s
integral Safety System is intended to improve the
health and welfare of our workers, their families and the
surrounding communities.
The system seeks to identify and prevent sickness through
ongoing monitoring and check-ups, including:
Preventive programs for disease detection
Epidemiological disease-detection programs for all employees exposed to noise, dust, hazardous chemical substances, etc.
Biological and environmental monitoring
Annual medical exams
Anti-doping and alcohol tests for workers
The San Dimas mine maintains on-site hospital facilities,
with x-ray, ultrasound, a surgery room and clinical lab,
which are available for all employees and contractors.
The management is assessing the results of the programs.
A new major injury-prevention program began in
November 2013. As well, an ongoing, monthly safety
campaign focuses on a specific topic. The campaigns
include awareness talks, training courses and revision
of standards. Topics have included among others: energy
isolation (lock out – tag out), defensive driving, safety in
work at heights, and safe handling of sodium cyanide.
“ At Primero, Community and Social Responsibility isn’t just about developing programs, it’s about making a real difference in the lives of people—at work and
in their communities.”Renaud adams Chief Operating Officer
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TABLE 6 StaFF bReaKdoWn
locationFull-time
employeeshourly
(union) Contractors Women men total
Mexico City Office 10 0 0 4 6 10
San Dimas Mine 553 694 73 119 1,201 1,320
Vancouver Office 5 0 1 3 3 6
Toronto Office 19 0 1 6 14 20
total 587 694 75 132 1,224 1,356
manaGement appRoaCh to labouR pRaCtiCeS
Throughout Primero, we foster a culture of inclusivity
and acceptance of gender, race, cultural background,
age, religion and disability. We are committed to fair
and equitable labour practices in every operation and
office. More than half of our mining workforce
(52.6%) is unionized.
Everywhere we operate, we seek to be recognized as
an employer of choice by offering competitive wages,
above-average benefits, as well as by preferentially
hiring locally and recognizing and rewarding
employee performance.
TABLE 7 GendeR diStRibution (San dimaS)
Female 119 (9%)
Male 1,201 (91%)
total 1,320
ReGional hiRinG 2013 employee turnover: 8.4%
Durango State
Sinaloa State
Zacatecas State
Guanajuato State
Other
78%
8%
3%
3%
8%
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27
health and SaFety aGReementS
More than half the mining workforce at the San Dimas
mine is unionized, with health and safety agreements
that include:
Personal protective equipment
Joint management-employee health and safety committees
Participation of worker representatives in health and safety inspections, audits, and accident investigations
Training and education
Right to refuse unsafe work
Periodic inspections
WoRKeR and manaGement tRaininG
Primero runs an annual training program for
superintendents, area managers, supervisors and workers.
The training is developed based on the needs of each
department and depending on the area.
in 2013, more than 20,600 man-hours were dedicated
to theoretical and practical training, with topics including:
Safety leadership
Underground heavy-equipment operations
Explosives handling
First aid and mine rescue training
Rock mechanics
Environmental awareness in the workplace
Computer training
Project management
English classes
diStRibution oF employee tRaininG
Management
Superintendents
Area foreman
Supervisors
Assistants
Operators and labour workforce
45%
5% 10%
12%
18%
10%
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
Committed to ouR
COmmunitiES
“ It (Primero) cares about its people, their sources of em-ployment and the communities that we live in… The truth is, my family is happy living here with me and it’s a privilege to
work for Primero.”Gustavo berrios Process Plant Superintendent
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COMMiTTED to Our Communities
Community deVelopment
We are committed to maintaining a vibrant,
economically diverse local community.
The San Dimas mine has brought significant
infrastructure upgrades to the community, in the
form of improvements to roads, electrical and
communication systems and medical facilities.
Although these were developed to serve the
mining operations, they are shared by the entire
community. in addition to these benefits, we
actively contribute to a broad range of social and
community initiatives, often in collaboration with
local and regional authorities.
TABLE 8 publiC inFRaStRuCtuRe/Community ContRibutionS*
2012 2013
Community infrastructure facilities (water supply, roads, schools, hospitals, etc.)
$232,734 $235,594
Community services (through funding of costs and/or staffing with Primero employees)
$593,355 $600,647
* Donations for infrastructure and provision of services, provided primarily as a public service, from which Primero does not seek to gain direct economic benefit.
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
“ When I was 11 years old, we had to leave this community and I came back five
years ago to work in this company that gave me this chance. And the truth is, I’m
very happy to return to my community and give something back, especially in
environmental issues, which are so important nowadays.”bianey alvarado Environmental Coordinator
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
Child CaRe
With the change of administration of the Federal
Government, the daycare facilities program that operated
in Tayoltita through the Secretariat of Social Development
(SEDESOL) was closed. We are still in discussions with
the SEDESOL in search of a solution to reopen the
daycare facilities.
enViRonmental aWaReneSS
Raising environmental awareness in the community
is always a priority. in 2013, we continued our annual
environmental awareness campaign, reaching
approximately 1,000 students from 10 different educational
institutions. Students from preschool through to high
school participated in discussions relating to environmental
education, energy and water conservation, waste
classification, and regional flora and wildlife.
CultuRe and ReCReation
Recreational, cultural and sporting activities were provided
for employees and their families in the 2013 Primero
“Grandes Familias” program. Monthly activities included
recreational sporting activities and training sessions
for spouses and other family members. in 2014, the
recreational program “The Community is Primero” will
continue these sporting and cultural activities and extend
them to the entire Tayoltita community.
“ Primero Grandes Familias
is a program that focuses
on housewives and the
workers’ children, looking for
a sense of belonging within
the company.”José luis Ramírez díaz Human Resources Superintendent
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
“ By taking an internship in the company, the students have the opportunity to access the lab facilities, workshops, mine, topography maps when needed and the installations inside and outside the mine.”octavio prado pacheco
Director CONALEP, Tayoltita Campus
the ColleGe oF pRoFeSSional teChniCal eduCation (Conalep)
Community tRaininG
The College of Professional Technical Education (CONALEP) trade school in Tayoltita was established in 2004 by the San Dimas mine in cooperation with the state government. The mine funded the construction and equipping of the school, where students participate in classroom activities as well as hands-on practical experience in Primero’s laboratories and workshops. We continue to provide logistical support for classroom operations and lodging for rural students.
in 2013, our support for CONALEP won us First Place Distinction for Practices in Education and Employment from the Mexican Ministries of Education and Labour.
Since the program began, there have been seven years of graduating classes and more than 60% of the 156 graduates have been hired to work for primero.
We continue to work in concert with the Durango Adult Education institute and more than 260 participants from Tayoltita have been part of the program.
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TABLE 9 aCademiC SCholaRShipS
level of study Staff that benefits number of scholarships
2012 2013
Technical high school studies Union employees’ children 21 23
Computing courses Union employees’ children 12 21
Technical studies/CONALEP Union employees’ children 7 7
High school Employees’ children 8 7
Bachelor’s degree Employees’ children 10 10
Master’s degree Employees’ children 2 1
total 60 69
employee Scholarships
Primero offers post-secondary educational scholarships and student loans. in 2013, there were 10 employees completing their post-secondary education either in
person or online.
Community Scholarships
Primero offers a scholarship program for local Ejido land-
owners and their communities. in 2013, 15 scholarships
were presented to students at the post-secondary (6)
and preparatory or high school level (9).
“ It’s a company that honestly puts its workers before everything else.”adriana alvarado Sanchez Assistant Mine Planner
Adriana was a CONALEP student when the San Dimas mine began the Women Miners program. She was employed while she completed her training as a metallurgical technician, and on graduation was hired full time at San Dimas as a heavy equipment operator.
She then received a scholarship to take an Engineering degree in Mining at the University of Guanajuato. Adriana is employed as an Assistant Mine Planner while completing her University degree.
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pRoteCtinG the
EnvirOnmEnt
“ We strive at all times to act with responsibility and transparency in our actions
and in our reporting practices.”Jim mallory VP Corporate Responsibility
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
PROTECTiNG the Environment
As our company grows, and our production increases, it is inevitable that
our water consumption and waste numbers will rise. We are nonetheless
committed to minimizing our environmental footprint through improving
process efficiency, recycling water and optimizing our operations
wherever possible. We strive at all times to act with responsibility and
transparency in our actions and in our reporting practices. in order to
provide accurate comparisons of year-on-year environmental performance,
we are including measurements of the intensity of our activity—in other
words, our environmental impact per tonne of ore processed.
manaGement appRoaCh to enViRonmental ReSponSibility
Our mining, exploration and development activities are subject to the applicable
environmental laws and regulations, which include planning for the eventual
closure of the mine and reclaiming the mining properties after mining and
processing has ceased. Our aim is to match the environmental standards
of leading gold and silver producers.
At all times, we manage our operations in compliance with, or in excess of,
all relevant environmental standards. Precautionary measures are taken to
avoid damage to ecosystems wherever possible. When adverse impacts occur,
integrated programs are implemented to promote the recovery of the affected
ecosystems.
At San Dimas, the Environmental Management System (EMS) helps reduce or
eliminate environmental impacts through precautionary measures that mitigate
damage and promote recovery and reclamation. Our system is widely respected
for its effectiveness in identifying and avoiding, reducing or eliminating the
environmental impacts of mining and processing.
We are committed to minimizing our environmental
footprint through improving process efficiency,
recycling water and optimizing our operations
wherever possible.
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* Water use for 2011 is not reported, as we believe previous statistics to be inaccurate. Since 2012, the plant has been maintaining a more detailed water balance, which was not available in 2011.
TABLE 10 WateR uSe*
total Water Withdrawal by Source 2012 2013
Self-extracted water—water drawn from the environment via a facility or equipment controlled by the operation (e.g., bores, rivers, dams. etc.)
328,000 m3 344,000 m3
Surface water—including water from wetlands, rivers, lakes, and oceans
0 0
Recycled water 282,000 m3 479,000 m3
total water used 610,000 m3 824,000 m3
% Recycled water 46.1 % 58.2.7%
“Clean induStRy” CeRtiFiCation
in 2013, the San Dimas mine was certified a “Clean
industry” by PROFEPA, Mexico’s Federal Environmental
Protection authority. The Clean industry initiative
is a voluntary program that assesses regulatory
compliance and best practices in environmental
performance. The mine’s audit process was completed
in 2012 and the two-year certification was granted
in May 2013. We intend to continue to improve our
environmental standards and performance.
0.4550.449
2012 2013
WateR uSe intenSity (m3 FReSh WateR peR tonne oF oRe pRoCeSSed)
WateR manaGement
Water management is a prime concern in the San Dimas
region. While production at the mine grew significantly
in 2013, overall water use increased only slightly, due to
significant improvements in the amount of water recycled
back to the process plant. We plan to continue to improve
water efficiency through recycling, reuse and treatment.
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
Most of the electrical power for the San Dimas mine is
provided by our own hydroelectric generation system,
the Las Truchas dam and power plant. The Las Truchas
hydroelectric power plant provides economical,
reliable and clean power that supplied approximately
63% of the mine’s requirements in 2013. A 34 kVA
power line runs 42 km from the dam to the San Dimas
mine. The remainder of the mine’s requirements are
supplied by the Federal Power Commission Supply
System (FPCSS), and hydroelectric and back-up diesel
generators, which are interconnected with the FPCSS.
in 2012, a Phase ii expansion was approved, that will
increase capacity from its current 43 GW to approximately
67 GW per year. This will support mine and mill expansion.
The Phase ii expansion is due for completion in the second
half of 2014.
As shown in the tables below, the San Dimas mine uses
both direct energy (primary sources such as diesel and
gasoline) and indirect energy (produced by converting
primary energy into other forms, such as electricity).
TABLE 11 eneRGy ConSumption
direct 2011 2012 2013
Diesel (stationary) 17,940.96 GJ 22,382.73 GJ 19,416.2 GJ
Diesel (transport) 90,592.52 GJ 89,134.29 GJ 84,116.9 GJ
Gasoline (000s litres) 3,764.45 GJ 2,047.33 GJ 3,780.9 GJ
indirect
Electricity purchased: Las Truchas
142,365.6 GJ 123,847.2 GJ 154,929.6 GJ
Electricity purchased:Mexican Federal Power Commission
66,438 GJ 98,481.6 GJ 85,626.0 GJ
eneRGy ConSumption and GReenhouSe GaS emiSSionS
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The National Greenhouse Accounts Factors have been
used to convert energy consumption into atmospheric
emissions (in CO2e). The same CO
2 conversion factors
were used for the last three years.
in 2014, we will be reporting atmospheric emissions for
multiple mine sites and will adjust conversion factors
consistent with their respective jurisdictions.
TABLE 12 GReenhouSe GaS emiSSionS (aS tonneS oF Co2e)
direct 2011 2012 2013
Diesel (stationary) 1,323 1,652 1,433
Diesel (transport) 6,525 6,714 6,336
Gasoline 272 147 271
indirect
Electricity 8,396 15,236 13,680
total 16,516 23,749 21,720
0.0329
0.0249 0.0283
2011 2012 2013
aVeRaGe GhG emiSSion intenSity (tonneS oF Co2e peR tonne oF oRe pRoCeSSed)
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aiR Quality meaSuRement
in 2013, we engaged a third-party contractor
(On-Site Analítica de México, S. A de C.V.) to carry out
an atmospheric study of the San Dimas operation.
* Particulates from mining processes were in compliance with regulations.
TABLE 13 total SuSpended paRtiCulateS (nom-043-SemaRnat-1993)
process limits (mg/m3) 2011 2012 2013*
Refinery 480 3.8 4.9 22.8
Sample Preparation 600 8.0 1.5 2.8
Laboratory 750 4.9 0.0 4.6
Laboratory (refinery) 570 9.8 3.4 2.5
Crushing Dust Collector (1) 410 80.8 15.9 36.1
Crushing Dust Collector (2) 400 13.7 5.2 140.3
Emissions from the plant’s hot oil heater at the refinery
were in compliance with regulations (NOM-085-
SEMARNAT-1994, for burners with heating capacity of less
than 5250 Mj/h).
WaSte manaGement
in any mining operation, waste materials are generated.
These wastes are categorized as:
Non-hazardous process waste (mining waste), which includes waste rock and materials that are removed in order to access the mineralized ore and the tailings.
Non-hazardous general waste, which includes scrap steel, packaging and other non-hazardous discarded materials and domestic waste.
Hazardous wastes: materials that can pose a threat to health unless safely managed, such as used oil or grease, contaminated soil, chemical packaging, batteries, etc.
The following table presents the results of three
years of measurement.
At San Dimas, the Hazardous Waste Management Plan
establishes procedures for planning, reducing, collecting,
storing, transporting, and performing final disposal of
hazardous residues. The Mining Waste Management
Plan ensures that the areas where wastes will be stored
comply with safety measures that ensure the stability
of the deposit and prevent acid drainage, leachate and
runoffs into the environment, including monitoring. in
2013, permitting was received, and construction began,
on a new waste rock storage area. Construction is
nearing completion.
Hazardous wastes increased, compared to 2012, because
the operation’s chemical supplier stopped allowing the
return of the contaminated packaging for reagents.
Additionally, the volume of materials recovered from
sump maintenance increased. All hazardous materials
are collected, stored, transported and finally disposed
in a manner consistent with the hazardous waste
management plan for final disposal.
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TABLE 14 mininG WaSte
process Waste 2011 2012 2013
Waste rock (000s tonnes)
Backfill % Waste rock storage %
1,038
76% 24%
950 43% 57%
831.1
32% 68%
Tailings (000s tonnes) 663.0 721.3 766.9
TABLE 15 haZaRdouS and non-haZaRdouS WaSte
Waste type 2012 2013
Non-hazardous waste 268 tonnes 250 tonnes
Hazardous wastes 165 tonnes 198 tonnes
tailinGS
Tailings management at San Dimas is challenged by the
district’s rugged terrain and steep canyons. San Dimas
operates a dry stack tailing deposition facility producing a
filtered “cake” that is deposited and compacted inside the
tailing storage area. in 2013, the company purchased a third
tailing pump and made improvements to the containment
system for the tailing pipeline.
in January 2012, a broken pipeline between the plant
and the Cupías tailings storage facility (TSF) caused a
spill of tailings containing 5 ppm cyanide into the Piaxtla
River, affecting an area of 2.5 kilometres. The fault was
corrected and both PROFEPA and CNA were notified.
The municipality of San Dimas considered the incident to
be localized and controlled, stating that the damage was
limited to the death of small concentrations of fish.
All of PROFEPA’s recommendations were implemented,
including a new containment structure for the tailings
pipe. in September 2012, CNA fined Primero 93,500
pesos, which we promptly paid. PROFEPA later notified
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
Va-03
Va-06
Va-04
VA-05
VA-10
VA-032 Km
VA-06
VA-04
tayoltita
tailing Storage Facility
Piaxtla River
Piax
tla R
iver
process plant
the company of a 31,200 peso fine for non-compliance to
a “hazardous waste” regulation; Primero and PROFEPA
later came to terms that the tailings were not considered
“hazardous waste”, and in early 2013, a nominal fine was
paid. An external consulting firm inspected the site and
concluded that the corrective actions were sufficient and
there had been no long-term damage to aquatic life.
biodiVeRSity and aQuatiC monitoRinG
Since 2010, a third-party consultant (Environmental
Consulting and Technology inc. de CV) has monitored
water quality and aquatic life in the Piaxtla River. in 2013,
they monitored three sampling stations:
Located upstream of the area of influence of Tayoltita village activities (station VA-04)
Located within the areas of influence of the village of Tayoltita/San Dimas (station VA-06)
Located further downstream of Tayoltita/San Dimas (station VA-03)
Habitats are classified as Optimum, Sub-optimal, Marginal
and Poor. The EPA characterizes “Sub-optimal” as adequate
to maintain the populations of the epifauna and fish areas,
while “Marginal” is less than desirable for their viability
(EPA, 2002a).
in 2013, the habitat quality at station VA-04 was
categorized as Sub-optimal (unchanged from 2012), while
the habitat quality at VA-03 and VA-06 stations declined
from Sub-optimal to Marginal.
General pH values from all stations and sampling from
2010 and 2013, ranged around 7.3. The historical average
concentration of dissolved oxygen (DO) is 7.47 mg/L, and
the average flow values at all stations is 6.07 m3/sec.
Notwithstanding the decline in habitat quality over 2013,
station VA-03 recorded the highest values of richness and
abundance. During 2013’s sampling, 8,575 organisms were
collected. insects represented more than 90% of the macro
invertebrates. The abundance of fish was lower than in
previous surveys (2010 through 2013), which may be due
to climatic conditions, as the study was conducted after the
rainy season had ended.
mine CloSuRe and ReClamation
Every mine has a finite life. As mining proceeds at
San Dimas, we continue to update our plans for the
mine’s eventual closure. The Company has accrued a
decommissioning liability consisting of reclamation and
closure costs for the San Dimas mine and is reported in
our financial statements.
There was no progressive closure activity in 2013 at
San Dimas and we expect to resume remediation
of the historical San Antonio tailings in 2015.
44
P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
As one of the industry’s newest mid-tier gold
producers, we intend to demonstrate an unyielding
commitment to sustainability at each of our
operations. Through 2014 and beyond, we will
establish and maintain company-wide standards for
recording and reporting sustainability information,
and we will continue to meet stringent Global
Reporting initiative guidelines. Primero did not
seek assurance for this report, but consulted
Ernst and Young for input and advice.
We are proud of the recognition and awards that
we have received for social, health and safety, and
environmental performance. They are proof of our
ability to deliver on our commitments. As Primero
proceeds along its growth trajectory, we will maintain
our culture of continual improvement in sustainability.
iN Closing
“ As we look to the future, our focus is on the long term. We believe that we can only
thrive when we act with responsibility, transparency and accountability toward our
local communities. We share in the benefits of mining and expend considerable effort
in protecting the health and welfare of our people, the economies of the communities
in which they live, and the environment that sustains us all.”Joseph F. Conway President and CEO
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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
1. StRateGy and analySiS Source Page
1.1 Statement from the most senior decision maker of the organization about the relevance of sustainability to the organization and its strategy 6
1.2 Description of key impacts, risks and opportunities 6
2. oRGaniZational pRoFile Source Page
2.1 Name of the organization 1
2.2 Primary brands, products, and/or services 1, 15
2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures 1, 15
2.4 Location of organization's headquarters 15
2.5 Number and name of countries where the organization operates, with either major operations or that are specifically relevant to sustainability 15
2.7 Markets served including geographic, sectors and customers 15
2.8 Scale of the organization 15, AR, Q Reports
2.9 Significant changes during the reporting period regarding size, structure, or ownership 2
2.10 Awards received in the reporting period 33, 36, BC
3. RepoRt paRameteRS Source Page
3.1 Reporting period (e.g., fiscal/calendar year) for information provided 2
3.2 Date of most recent report 2
3.3 Reporting cycle 2
3.4 Contact point for questions regarding the report or its contents 2
3.5 Process for defining report content 2, 4, 13
3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers) 2
3.7 Any specific limitations on the scope or boundary of the report 2
3.10Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g. mergers/acquisitions, change of base years/periods, nature of business, measurement methods)
2
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report 2
3.12 Location of the Standard Disclosures in the report 2
3.13 Policy and practice relating to seeking external assurance 11
4. GoVeRnanCe, CommitmentS, and enGaGement Source Page
4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks AR, Website
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body 10
GRi iNDEx
47
P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
4.8internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation
7, 19, 21, 35
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses 2, 11, 4, 21
4.14 Stakeholder engagement 4, 13
4.15 Basis for identification and selection of stakeholders with whom to engage, 4, 13
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and stakeholder group 13
4.17Key topics and concerns that have been raised through stakeholder engagement, and how the organization has reported to those key topics and concerns, including through this report
12
eConomiC indiCatoRS Source Page
EC1Direct economic value generated and distributed, including revenues, operating costs, employee compensation, community investments and payments to capital providers and governments
17
EC6Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation
17
enViRonmental peRFoRmanCe indiCatoRS Source Page
EN1 Materials used by weight or volume 42, 43
EN3 Direct energy consumption by primary energy source 38
EN4 indirect energy consumption by primary energy source 38
EN6initiatives to provide energy efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives
17, 38
EN7 initiatives to reduce indirect energy consumption and reductions achieved 38
EN8 Total water withdrawal by source 36
EN10 Percentage and total volume of water recycled and reused 36
EN12Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas
42
EN13 Habitat protected or restored 43
EN16 Total direct and indirect greenhouse gas emissions 39
EN22 Total weight of waste by type and disposal method 42
EN24Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex i, ii, iii, and Viii, and percentage of transported waste shipped internationally
42
EN26initiatives to mitigate environmental impacts of products and services, and extent of impact
35, 36, 38
EN27initiatives to mitigate environmental impacts of products and services, and extent of impact
35, 41
EN28Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
42
48
P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3
labouR pRaCtiCeS and deCent WoRK peRFoRmanCe indiCatoRS Source Page
LA1 Total workforce by employment type, employment contract, and region 15, 25
LA4 Percentage of employees covered by collective bargaining agreements 10, 29
LA6Percentage of total workforce represented in formal joint management worker health and safety committees that help monitor and advise on occupational health and safety programs
19
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region and by gender 23
LA8Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases
20, 24
LA9 Health and safety topics covered in formal agreements with trade unions 20, 27
LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings 27, 29
human RiGhtS indiCatoRS Source Page
HR4 Total number of incidents of discrimination and actions taken 10
HR9Total number of incidents of violations involving rights of indigenous peoples and actions taken
10
SoCiety peRFoRmanCe indiCatoRS Source Page
SO7 Total number of legal actions for anticompetitive behaviour, anti-trust, and monopoly practices and their outcomes 10
SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations 42
mininG SeCtoR indiCatoRS Source Page
MM2The number and percentage of total sites identified as requiring biodiversity management plans according to stated criteria, and the number (percentage) of those sites with plans in place
43
MM3 Total amounts of overburden, rock, tailings and sludges and their associated risks. 42
MM4 Number of strikes and lock-outs exceeding one week’s duration, by country 10
CautionaRy Statement
This report may contain “forward-looking” statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance. in certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, ”estimates”, ”forecasts”, ”intends”, ”anticipates” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, ”could”, “would”, ”might”, or “will be taken”, “occur” or “be achieved”, or the negative of these words or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Such factors include various risks related to the Company’s operations, including, without limitation, fluctuations in spot and forward markets for gold, silver and other metals, fluctuations in currency markets, changes in national and local governments in Mexico and the speculative nature of mineral exploration and development, risks associated with obtaining necessary exploitation and environmental licenses and permits, and the presence of laws that may impose restrictions on mining. A complete list of risk factors are described in the Company’s annual information form and will be detailed from time to time in the Company’s continuous disclosure, all of which are, or will be available, for review on SEDAR at www.sedar.com.
CORPORATE Directory
diReCtoRS
Wade nesmithChairman Vancouver, BC
Joseph F. ConwayPresident & Chief Executive Officer Primero Mining Corp. Toronto, ON
david demers 2, 3, 4, 5
Chief Executive Officer Westport innovations inc. Vancouver, BC
Grant edey 3, 5
Corporate Director Mississauga, ON
Rohan hazelton 1, 5
Vice President Strategy Goldcorp inc. Vancouver, BC
timo Jauristo 2
Executive Vice President Corporate Development Goldcorp inc. Vancouver, BC
eduardo luna 1
Corporate Director Mexico City, Mexico
brad marchant 1
Corporate Director Vancouver, BC
Robert a. Quartermain 2, 3
President & Chief Executive Officer Pretium Resources inc. Vancouver, BC
michael Riley 5
Corporate Director Vancouver, BC
boaRd CommitteeS1 Member of the Corporate Responsibility
Committee
2 Member of the Human Resources Committee
3 Member of the Governance and Nominating Committee
4 Lead Director
5 Member of the Audit Committee
oFFiCeRS
Joseph F. ConwayPresident & Chief Executive Officer
Renaud adamsChief Operating Officer
david blaiklockChief Financial Officer
tamara brownVice President, investor Relations
h. maura lendonVice President, Chief General Counsel and Corporate Secretary
James malloryVice President, Corporate Responsibility
david SandisonVice President, Corporate Development
louis tonerVice President, Project Development and Construction
Gabriel VoicuVice President, Geology and Exploration
CoRpoRate oFFiCeS
VancouverOne Bentall Centre, Suite 1640 505 Burrard Street, Box 24 Vancouver, BC, Canada V7x 1M6
t 604 669 0040 F 604 669 0014
toronto20 Queen Street West, Suite 2301 Toronto, ON, Canada M5H 3R3
t 416 814 3160 F 416 814 3170 tF 1 877 619 3160
opeRation oFFiCeS
mexico CityArquimedes 33, 2nd Floor Colonia Polanco 11560 Mexico, D. F. Mexico
t +52 55 52 80 6083
inVeStoR inQuiRieS
tamara brownVice President, investor Relations
t 416 814 3168
tania ShawManager, investor Relations
t 416 814 3179 F 416 814 3170 e [email protected]
WebSite
www.primeromining.com
We welcome feedback on this report or on any other aspect of sustainability at Primero. Please contact us at [email protected].
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Primero Mining is a proud member of the World Gold Council.
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www.primeromining.com
in February 2014, for the third consecutive year, Primero’s CSR
framework and commitments were assessed and the company was
again awarded the “Empresa Socialmente Responsable” (ESR) or
“Socially Responsible Company” designation by CEMEFi, the Mexican
Center for Philanthropy. This is a prestigious award that has been
given to fewer than 950 companies in 2013. it recognizes companies
that are committed to sustainable economic, social and environmental
operations in all areas of corporate life, including business ethics,
employee health and safety, involvement with the community,
and preservation of the environment.