Corporate Responsibility Country Report 2013 Ghana

Transcription

1 KINROSS GOLD CORPORATION GHANA 2013 CORPORATE RESPONSIBILITY COUNTRY REPORT Corporate Responsibility Country Report 2013 Ghana

2 TABLE OF CONTENTS 01 CEO message 02 Our corporate responsibility strategy 03 Generating economic value 05 Engaging our workforce 06 Workforce health and safety 08 Human rights 09 Empowering communities 12 Managing our environmental footprint 18 Contact information

3 GHANA 2013 CORPORATE RESPONSIBILITY COUNTRY REPORT KINROSS GOLD CORPORATION CEO MESSAGE At Kinross, we believe the mining industry has a unique opportunity to make a positive and lasting difference in the lives of individuals, communities and over time, even countries. When managed responsibly and respectfully, mining generates well paid jobs in often remote locales, provides valuable skills training and educational opportunities, supports much-needed community services, bolsters the local tax base, and protects the environment while mitigating impacts. See map of operations on Kinross.com to learn about Kinross Chirano operation. This summary of our 2013 Corporate Responsibility report provides a snapshot of our CR approach and performance over the past two years. I encourage you to visit our full online report at 2013corporateresponsibilityreport. kinross.com. J. Paul Rollinson Chief Executive Officer Kinross Gold Corporation KINROSS GOLD is a Canadian-based gold mining company with mines and projects in Brazil, Canada, Chile, Ghana, Mauritania, Russia and the United States, employing over 9,100 people worldwide. Kinross maintains listings on the Toronto Stock Exchange and the New York Stock Exchange. > In 2014, Kinross engaged KPMG to carry out a limited assurance of performance indicators for See our assurance parameters here. 1

4 OUR CORPORATE RESPONSIBILITY STRATEGY Kinross believes we have a responsibility to conduct our operations in a manner that is safe for our employees, protective of the environment and fair for the host countries and communities where our operations are located. Through responsible mining, we believe we can generate sustainable value in our host countries and host communities. Our Corporate Responsibility Strategy integrates this commitment into our business strategy at each stage of the mine life cycle by establishing: a policy framework articulating our commitments and standards in key areas, including environment, health and safety, social and community, suppliers and human rights; a Corporate Responsibility Management System (CRMS) that requires each operation to establish management systems addressing site-specific social, environmental and health and safety performance criteria and the procedures, responsibilities, and metrics necessary to maintain those criteria; and Site Responsibility Plans that provide a strategic approach for two-way stakeholder engagement, community investments and partnerships; and measurement and reporting criteria to track progress in each of these areas. We conduct biennial audits of on-the-ground compliance with our standards in key areas of environment, health and safety, and community relations. We have also developed specific metrics to track individual site performance in environment, health and safety, and community relations on a quarterly and annual basis, as part of the corporate performance management system and management compensation. EXTERNAL COMMITMENTS AND MEMBERSHIPS KINROSS EXTERNAL COMMITMENTS AND MEMBERSHIPS ARE AN IMPORTANT PART OF OUR CR STRATEGY. CORPORATELY, KINROSS SUPPORTS THE: United Nations Global Compact Extractive Industries Transparency Initiative International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide for the Production of Gold International Network for Acid Prevention Voluntary Principles on Security and Human Rights IN GHANA, KINROSS IS A MEMBER OF THE GHANA CHAMBER OF MINES. 2

5 GENERATING ECONOMIC VALUE Our operations create economic wealth in our host countries through job creation, procurement and tax payments, which in turn helps in reducing poverty and sustaining strong communities. Our approach to generating economic value consists of two complementary strategies: first, by maximizing the value generated through rigorous financial discipline and a high-performance operating culture; and second, through careful consideration of our recruitment, procurement, and community investment activities to ensure host countries and communities have opportunities to benefit from that value. This direct economic impact our benefit footprint creates wealth in the communities where we operate. Kinross tracks our benefit footprint by recording the geographic breakdown of our spending in terms of direct benefits, taxes, wages and supplier purchases including capital expenditures at the local, regional, national and international levels. Understanding our benefit footprint at each of our sites better informs our strategies for community engagement, community investment and public-private partnerships, local procurement, and hiring policies, processes and local impacts. On a consolidated basis, 88% of Kinross revenue was spent in host country through wages, procurement and taxes. The benefit footprint for Kinross shows the importance of procurement, wages, and benefits in generating value within host countries. > See more in our case study video on generating economic value at Tasiast. 3

6 2013 ECONOMIC VALUE DISTRIBUTED AND RETAINED IN GHANA Our Chirano mine generated a range of socio-economic benefits in 2012 and 2013: provided employment for approximately 1,050 employees and 921 contractors (of whom 99% are from Ghana), purchasing $247.2 million in goods and services within Ghana, and contributing over $63.6 million in taxes, royalties and payments to governments in Ghana. We also invested $2.18 million in various community programs BENEFIT FOOTPRINT Operating and Capital Spending Value Generated Net Investments in Operations Revenue from Metals Sales Spending Breakdown (%) Community Investment Procurement Wages Taxes Host Country Spending Breakdown (%) Host Country Local Host Country Region Host Country Outside Region Other Countries Corporate & Other The benefit footprint is our metric for tracking the distribution of our direct economic impact. This amount is significant: in 2013, when compared with total revenue from gold sales, in-country spending by operations amounted to 88% of the total value we generated as a company Host country spending also represents 78% of the total expenditure by our operations and approximately 26% of this amount was spent locally, i.e. within the appropriate adminstrative unit for each Kinross site whether a municipality, county or district. 4

7 ENGAGING OUR WORKFORCE As an employer, we are committed to attracting and retaining the best people in the industry. Our goal is to be the employer of choice among global mining companies. Our culture and commitment is underpinned by the first of Kinross four core values: Putting people first. Health and safety of our employees is our number one priority. We treat each other with fairness and respect, and seek to provide a wide range of training opportunities for professional development and personal growth. We foster a working environment that celebrates and supports diversity and recognize that, as a global company, we must remain sensitive to local cultures, customs and practices. We value innovation, adaptability and accountability in our workforce, and want our employees to be known for their passion and initiative. In Ghana, our employee workforce includes: 1,050 employees 99% hired from within country 91.4% of management hired from within country 62% represented by collective agreements 2013 KINROSS EMPLOYEES BY COUNTRY U.S. 1,798 Russia 2,197 Mauritania 1,495 Brazil 1,419 Canada 235 Chile 924 Ghana 1,050 > See more in our case study video on training at Kupol. 5

8 WORKFORCE HEALTH AND SAFETY Taking care of health and safety is the most important part of everything we do at Kinross. Working safely reflects a well-run operation and a skilled and dedicated team making the right decisions. Safety Time Out workshops are now organized on a monthly basis for the open-pit and underground mining departments and in the heavy mobile equipment department to reinforce Health, Safety and Environmental values and ensure continuous improvement in these areas. Mandatory safety training is conducted at all of our sites, including exploration projects. An estimated 250,000 hours of safety training was delivered to employees and contractors at Kinross sites in In 2013, Kinross Chirano mine was awarded the second place in two national safety competitions: the Inspectorate Division of Minerals Commission Mine HSE Audit, and the Ghana Chamber of Mine s Inter-Mine First Aid and Safety Competition. Our programs address such issues as hearing and respiratory protection, thermal stress, industrial hygiene, ergonomics and occupational health. We monitor exposure of our employees and contractors to occupational health hazards and conduct regular risk assessments of potential health issues. When issues are identified, formal occupational health and industrial hygiene programs are developed and implemented. We also plan for the unexpected. All Kinross operations are required to have formal emergency plans in place for potential emergencies, including hazardous chemical spills and exposures. SAFETY PERFORMANCE AT CHIRANO (Total reportable injury frequency rate per 200,000 hours worked) Kinross Chirano Total Reportable Injury Frequency Rate is the sum of the Lost-Time Injury Frequency Rate, Restricted Work Activity Frequency Rate and Medical Treatment Case Frequency Rate. 6

9 HEALTH AND WELLNESS Kinross has developed a comprehensive set of standards and guidelines to assist our operations in minimizing potential occupational health risks. We provide training, instructions, procedures and protective equipment to address such issues as hearing and respiratory protection, thermal stress, industrial hygiene, ergonomics and occupational health. We regularly monitor our employees and contractors, as well as our workplace environment, for exposure to occupational health hazards. Each Kinross site engages a qualified industrial hygienist and conducts regular risk assessments of potential health issues. When significant risks are identified, formal occupational health and industrial hygiene programs are developed and implemented. We conduct regular testing of workplace air quality, supported by biological monitoring campaigns for workers with duties that potentially increase their risk of exposure to workplace contaminants. Our standard is to meet American Conference of Governmental Industrial Hygienists (ACGIH ) recommended exposure limits. We conduct basic testing for tuberculosis at our Chirano and Tasiast sites, which are located in regions where tuberculosis is endemic. In Ghana, malaria continues to be the leading cause of death among children and pregnant women despite the fact that it is preventable and treatable. At Chirano, the Malaria Control Program takes an integrated vector control management approach to malaria prevention and which led to an 82% reduction of overall malaria incidence rates (laboratory confirmed plus presumptively treated cases vs. baseline) among our employees, their dependents, and on-site contractors. The Chirano Malaria Control Program is among the gold industry programs featured in a World Gold Council video Gold for Health-Ghana Spotlight produced to support World Malaria Day. 7

10 HUMAN RIGHTS We conduct all of our activities in accordance with accepted standards in the protection and promotion of human rights. We respect the cultural and historical perspectives and rights of those affected by our operations, in particular indigenous peoples. This commitment to respecting human rights is implemented in numerous ways. Our commitment to the UN Global Compact; Our commitment to support and respect the protection of human rights in the workplace and the community, in accordance with the Universal Declaration of Human Rights; Our commitment to implement the Voluntary Principles for Security and Human Rights; Kinross Code of Business Conduct and Ethics; and Our internal practices and procedures, such as our Environmental Health and Safety (EHS) and labor policies, community relations practices, and our project permitting/ consultation practices. In 2013, 603 security people, representing almost 81% of Kinross security personnel and approximately 1,800 training hours, received human rights training consistent with the Voluntary Principles for Security and Human Rights. 8

11 EMPOWERING COMMUNITIES Responsible mining can generate sustainable value in host countries and host communities. Achieving these benefits requires engagement, partnership, and co-ordination between Kinross and its partners in the private sector, governments, and civil society and stakeholders in our host communities. Engaging host governments and public stakeholders cover a spectrum of approaches, including regular meetings with officials and neighbors; negotiated agreements; formal dialogue tables and stakeholder committees; community, business, government and school presentations and partnerships; targeted and public mine tours; participation in local cultural and sports events; and informal, impromptu conversations. We recognize the unique considerations of indigenous peoples, and consult with indigenous communities near our operations to avoid, minimize, or mitigate any adverse impacts due to our activities. We also engage with them to help bring positive benefits aligned with their aspirations. Our aim is to develop and operate projects in a manner that respects and strengthens their communities and brings positive long-term contributions to their quality of life. KEY STAKEHOLDER ISSUES IN CHIRANO INCLUDE: Farmers crop compensation Employment > For details on our management of these issues at our other operations, read the Key Stakeholder Issues table in the Kinross corporate CR report. 9

12 SITE RESPONSIBILITY PLANS To help ensure that our actions in the community consistently align with our Ten Guiding Principles for Corporate Responsibility, our Site Responsibility Plans provide a consistent Kinross Way for managing community issues at the site level. Key elements include: Engagement, Evaluation, Action and Monitoring. Disclosure & Consultation Plan Stakeholder Mapping Formal Consultation Groups Socio-Economic Analysis Benefit Footprint Defined Community Capacity Community Needs Analysis Perception Surveys Grievance Procedure KPIs Sustainable Community Programs Sustainable Communities Plan Donations Policy Community Programs Employee Engagement Plan COMMUNITY HIGHLIGHTS IN GHANA Chirano initiated the development of a new Corporate Responsibility Strategy in mid Developed in consultation with the Community Consultative Committee (CCC), which is comprised of stakeholder representatives from traditional authorities including tribal chiefs and security agencies, and local government, farmers and institutions, the updated strategy is currently awaiting final ratification. In the interim, we continue to support community priorities, such as educational and sanitation infrastructure as part of our community investment program. Our community investment strategy has reached over 120,000 beneficiaries during the reporting period through a range of initiatives: We contributed $433,120 to educational initiatives including funds to build three local schools in the communities of Etwebo, Akoti and Paboase. The new schools reduced overcrowding in existing schools, replaced unsuitable buildings, and enabled children who previously travelled to other communities to attend school to stay in the local community. Following construction, the schools were transferred to the Ministry of Education. Funding was also directed to building a new kindergarten and primary school for approximately 275 children in Obrayeko, which significantly reduced overcrowding in the Chirano schools. Kindergarten blocks for Kwame-Aninkrom and Lawerkrom, and a block of six classrooms for Akasso, were also built. In Etwebo and Akoti, support was also provided for extra classes, desks and furniture, and reading and writing materials. > See our case study video on community monitoring in Paracatu for more information on Kinross approach to empowering communities. 10

13 To supplement the investment in physical infrastructure, we also provided equipment, training and maintenance support for six IT labs as well as an additional information technology lab and library at Chirano. We continued to support the Chirano Malaria Control Program, an integrated vector control management approach to malaria prevention. Since the inception of the program in 2009, the program has contributed to a 20% reduction in the incidence of malaria in 13 beneficiary communities and an 82% reduction of malaria in our workforce. By the end of 2013, we had invested approximately $7 million in the program. Together with community stakeholders and the government, Kinross is evaluating sources of continued funding for this program. 11

14 MANAGING OUR ENVIRONMENTAL FOOTPRINT We exercise utmost vigilance in protecting the environment and seek ways to minimize our environmental footprint wherever we operate. We will always meet and, where possible, exceed regulatory requirements in our environmental performance. To support our commitment, all sites are routinely audited against corporate standards and compliance requirements. Our corporate environmental governance programs are embodied within Kinross Corporate Responsibility Management System (CRMS). Our CRMS is modeled on ISO and other internationally recognized standards, as well as best practices from around the world. Recognizing the importance of maintaining the highest standards of cyanide management, Kinross was one of 14 initial signatory companies to the International Cyanide Management Code (ICMC) in The Cyanide Code requires on-site verification by an independent third-party auditor for initial certification and recertification every three years thereafter, as well as ongoing monitoring and annual reporting. Compliance with the Cyanide Code is a key part of Kinross commitment to protect our workers, communities, and the environment in which we operate. In 2013, we received certification at Chirano. > For detailed environmental performance for Chirano, see the 2013 Data Tables available in our complete CR Report. 12

15 WATER MANAGEMENT We have established high standards to protect water resources at our sites. Controls include management plans, comprehensive and current water balance models, and ongoing surface and groundwater monitoring programs. Water usage is monitored at each operation, and opportunities for conservation are routinely evaluated. Prior to mine development, our water footprint is assessed and steps taken to ensure that impacts on water supply are minimized. All of our milling and heap leach process operations are designed to re-circulate water. WATER CONSUMED PER TONNE OF ORE PROCESSED (litres/tonne) Kinross Chirano Overall, Kinross uses approximately 350 litres to process one tonne of ore. This varies from operation to operation, and from year to year, but in general depends mostly on the type of ore processing and the environmental context (climate) at the operation. As a milling operation, water use at Chirano is slightly higher than the Kinross average, which includes several heapleaching operations. Chirano water use varies from year to year depending on the amount of precipitation in a given year, as all rainfall within the collection area of the tailings areas is collected and used in the process. 13

16 AIR EMISSIONS Every Kinross operation has been designed so that air emissions will not have a significant impact on air quality. Dust produced from road travel as well as mining and ore crushing is the largest air emission from our operations. It is controlled with surfactants and water sprays, as well as bag houses at point sources. We monitor opacity, which refers to the degree that dust obscures visibility, and have set a corporatewide goal of maintaining our particulate emissions below 20% opacity. Each of our operations maintains an inventory of all air emission sources and calculation of annual emissions (physical and chemical). Kinross routinely tests point sources from processes associated with refining, carbon regeneration, and retorting to determine emissions levels and the adequacy of existing controls. 14

17 ENERGY AND CLIMATE CHANGE ENERGY CONSUMED (DIRECT AND INDIRECT) PER TONNE OF ORE PROCESSED (megajoules/tonne) Since 2006, Kinross has publicly disclosed our energy consumption and greenhouse gas (GHG) emissions as part of the Carbon Disclosure Project (CDP). While our energy demand and GHG emissions have increased over time as a result of increased production, on an intensity basis (per amount of ore processed) our emissions and energy use have remained relatively consistent. To reduce our environmental impact and to remain competitive, we must continue to advance our efforts to reduce energy consumption and improve energy efficiency wherever practical. Going forward, we have developed a three-pronged strategy for energy and GHGs that focuses on core business improvements: At existing operations, our focus is on high-use and high-risk sites to establish energy strategies focused on both optimizing supply and reducing consumption. We are focusing on new opportunities and initiatives already underway. For example, at Chirano we are exploring options around the use of biomass as a source of energy generation; At our major growth projects, we are reviewing energy supplies and opportunities to reduce consumption, include less energy-intensive alternative processing methods, other conventional power options such as natural gas or electricity, and a review of alternative and/ or renewable energy options where there are resources available; and As part of the environmental impact assessment (EIA) required for the approval and permitting of new mine projects, we are assessing climate change impacts and strategies Kinross Chirano PRODUCTION OF GREENHOUSE GASES PER TONNE OF ORE PROCESSED (kilograms CO 2 e/tonne) Kinross Chirano 15

18 WASTE MANAGEMENT Our mining operations produce two categories of waste: mineral waste, such as tailings and waste rock; and non-mineral waste, which includes everything else. For the relatively large amount of mineral waste generated, our goal is to ensure that these materials are handled in a way that does not pose a long-term environmental risk (for example, due to leaching of harmful materials from the waste) or a physical risk (for example, due to landslides or erosion). Each of these mineral waste storage facilities is carefully engineered and managed to achieve the goal of long-term stability. Waste rock is carefully assessed to determine the potential for acid drainage or metals leaching, and geotechnical conditions are extensively studied to ensure materials are placed in a way that does not lead to ground slippage. Tailings are disposed of in storage facilities designed, built, operated and closed to meet regulatory and engineering safety and environmental standards. In addition to requiring an annual inspection of each Kinross tailings facility by a geotechnical engineer, each tailings facility is subject to an additional level of oversight led by an external geotechnical expert who reports to senior management at Kinross. For the relatively small amount of non-mineral wastes, our management focus is to reduce the amount of waste generated and recycle or reuse as much as possible. We dispose of materials that cannot be recycled or reused in a manner that is environmentally acceptable, in compliance with regulations. We have recycling programs at each of our operations. In 2013, we recycled approximately 36% of non-mineral wastes. KINROSS NON-MINERAL WASTES INTENSITY (kilograms/tonne of ore processed) Non-mineral waste generation in 2013 was affected by operational as well as one-time activities at Maricunga. The recently inaugurated SART plant generates a non-hazardous gypsum that is disposed of on the mining property. The on-site landfill reached its permitted capacity and domestic waste was shipped off-site to a municipal landfill, pending the completion of a new landfill. Also at Maricunga, the operation cleaned up laydown and contractor project yards that had accumulated over the years. These operational and onetime activities accounted for approximately 43% of the Company s total non-mineral waste generation in Non-Mineral Recycled Wastes Non-Mineral Disposed Offsite Non-Mineral Wastes Disposed Onsite 16

19 BIODIVERSITY Understanding the ecosystems in the areas where we work is a fundamental part of our environmental and project planning. Our projects are located in very different environments, and sitespecific baseline studies provide us with critical information regarding diversity, populations, critical habitat and ecosystem services. With this information, we are able to develop Biodiversity Management Plans that allow us to avoid, minimize and mitigate our impacts. Our initial assessment and ongoing management plans are carried out in consultation with local stakeholders governments, NGOs, indigenous peoples and other community members who can best help us understand and protect local ecosystems. > For insight into Kinross work to address biodiversity, see our case study on mining and fish hatchery co-existing in Alaska. 17

20 RECLAMATION AND CLOSURE At Kinross, we recognize our responsibility to manage the environmental impacts associated with our operations at all stages of a mine s life cycle. We require all of our sites to develop and maintain reclamation and closure plans that demonstrate industrywide leadership. Working with our stakeholders, reclamation planning entails an extensive analysis of land use options, environmental factors and community development concerns and objectives. Closure planning is an integral consideration during initial mine planning and is regularly updated as new information becomes available or mining operations are optimized. LAND STATUS, CHIRANO (2013) (hectares) 13 Previously Reclaimed New Reclamation 3 17 New Disturbances Protected Habitat 112 Previously Disturbed and Unreclaimed 1,023 CONTACT INFORMATION Kinross Chirano Web: Telephone: thomas.nyarko-danquah@kinross.com 18