2. About Primero............................................................................3
About This Report.....................................................................4
Letter from the CEO.................................................................8
Ethical, Transparent Governance......................................... 11
Materiality and Our Key Stakeholders...............................15
Building Primero Value...........................................................17
All currency is in United States dollars (USD) unless otherwise noted.
Committed to Our People......................................................21
Committed to Our Communities........................................29
Protecting the Environment..................................................33
In Closing..................................................................................40
GRI Index.................................................................................. 42
Corporate Directory.............................................................IBC
Recreational
facilities
for Tayoltita
3. PRIMERO 1 CSR 2014
Cover photo: Taken at the first softball game ever to be played in Tayoltita on a softball field.
Credit: Jorge Ortega, Head of civil service and construction.
In 2014, Primero, together with Silver Wheaton, built three recreational
facilities in the town of Tayoltita, the home of most of San Dimas employees.
For the first time, in this town of more than 5,000 people there are
playgrounds, outdoor fitness facilities for adults, youth softball and
soccer fields and a multipurpose court for basketball and volleyball.
These facilities promote health and well-being and encourage positive
interactions among families and friends within the community.
4. PRIMERO 2 CSR 2014
Primero is a Canadian-based precious metals producer with
operations in Canada and Mexico. The Company is focused on
becoming an intermediate gold producer by building a portfolio
of high quality, low cost precious metals assets in the Americas.
5. PRIMERO 3 CSR 2014
Primero currently has two producing properties, the San Dimas Mine,
located near the town of Tayoltita on the border of Durango and
Sinaloa states and the Black Fox Complex which is located near the
town of Matheson in Ontario, Canada. In addition, Primero has two
development stage projects, Cerro del Gallo in Guanajuato, Mexico
and Grey Fox, adjacent to the Black Fox mine in Ontario, Canada.
Primero also has an exploration property in Mexico (Ventanas, located
in Durango, Mexico) and exploration properties associated with the
Black Fox Complex (the Pike River and the Stock Mill properties).
2014 was a year of transition during which the Company began
the process of integrating its second producing mine - the Black
Fox mine. This involved strategic decisions to optimize operations,
increase efficiency, minimize risk and improve safety.
Operating results for the year were record-breaking, despite the
volatile gold market. Primero met production and cost guidance, and
produced a record 225,100 gold equivalent ounces, a 57% increase
over 2013. Cost controls are important for Primero and the cash cost
remained below industry average at $687 per gold equivalent ounce.
Through the year and into 2015, Primero has been engaged in standardizing
corporate-wide policies and procedures and making significant progress
in its plans for Corporate Social Responsibility, to ensure consistency
in goals and measurement as the Company moves forward.
about Primero
6. PRIMERO 4 CSR 2014
We are proud to present our fourth annual
Sustainability Report, which highlights our achievements
and challenges in 2014. As Primero has grown, we have
remained committed to continuous improvement in
environmental performance and workplace health and
safety, and in sharing the benefits of mining throughout
our host communities.
This report covers the period of January 1 through
December 31, 2014. Its content is guided by common
principles in sustainability reporting in our industry and
by the findings of a company-wide internal materiality
assessment that was started in 2013. As a result of
the materiality assessment, we have adjusted our data
collection and reporting emphasis, while maintaining
the requirements of a Global Reporting Initiative-
compliant report. The materiality assessment, its findings
and effects on our data collection and reporting, are
discussed in this report. In the future, we plan to engage
in further dialogue, including external assessments, to
refine our definition of stakeholders and to survey their
reporting needs and priorities.
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 based on data collected in 2014, with
comparative data from previous years. 2014 began with
the acquisition of the Black Fox Complex (consisting of the
Black Fox mine and mill, the Grey Fox development project
and associated exploration properties). While this report
is primarily based on data collected at and around the
San Dimas mine, it does include a general discussion
and some data from of our first ten months of operations
at Black Fox. Our other properties are not discussed.
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.
Apart from the newly acquired Black Fox Complex,
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 sustainability@primeromining.com.
GRI Declaration
This report is based on the report framework of the
Global Reporting Initiative (GRI), and is Primero’s third
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 been
considered and relevant 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 demonstrate our
commitment to transparent reporting.
The GRI Index can be found at the back of this report.
about This Report
“We are taking a comprehensive, inclusive approach to assessing
material issues for sustainability reporting. It is a long term process
and we are committed to it.”
Ernest Mast, President and Chief Operating Officer
7. PRIMERO 5 CSR 2014
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.
The first step is to translate vision 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.
In the third step, our sustainability practices must focus on materiality: 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. An internal materiality assessment
began in 2013 and the results have been applied to refine our Corporate Responsibility
Strategy. We regularly revisit materiality issues and in the future plan to expand our
materiality assessment to include surveying external stakeholders’ needs and consider
Primero’s most significant economic, environmental and social impacts. Later in this
report, our approach to materiality is discussed at length.
The fourth step is ongoing engagement. Only by engaging with our stakeholders and
including our host communities, can we build strong relationships, develop alliances
and maintain a long-term, balanced approach to sustainability. As Primero has grown
to become a multi-mine company with international operations, we are undergoing a
thorough sustainability policy renewal process.
Visit our website for more: www.primeromining.com.
Management’s Approach to Sustainability
1
2
3
4
8. PRIMERO 6 CSR 2014
Primero Value
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.
Protecting the Environment
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 a mine’s life cycle and practice the progressive
rehabilitation of areas affected by our activities.
Committed to Community Engagement
In the communities surrounding our operations, we
actively engage in meaningful dialogue with local
residents, community leaders and organizations
in order to identify opportunities and priorities
for economic improvement, training and social
development. We support schools, health care and
infrastructure and continually seek development
opportunities that will contribute to a sustainable
local economy.
In March 2015 - for the fourth consecutive year
- Primero was awarded the “Empresa Socialmente
Responsable” (ESR) or “Socially Responsible Company”
designation. This prestigious award, from CEMEFI,
the Mexican Center for Philanthropy, is the result
of a thorough independent assessment of Primero’s
corporate and social responsibility framework. It
recognizes our commitment 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.
Our Stakeholders
This report is written for Primero stakeholders, including:
employees and their families
our host communities
legislators and government officials
shareholders, investors and members of the financial
community
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 Annual General Meeting of shareholders,
community meetings, website and a dedicated email
address. Our ongoing assessments of materiality may,
in the future, refine our definition of stakeholders.
Feedback and Complaints
We maintain open channels through which complaints,
concerns and suggestions can be received and addressed.
In 2014, four complaints were received at San Dimas. In
each case, community members were concerned about
blasting, traffic dust and water issues. All issues were
addressed.
In 2015 we will work with stakeholders to establish
formal channels for concerns and standardize the
protocols for receiving, recording and responding to
feedback or grievances in the manner most suitable to
our stakeholders.
We invite sustainability-related comments and
suggestions at our dedicated email address:
sustainability@primeromining.com.
9. PRIMERO 7 CSR 2014
“To create more value, in terms of efficiency and optimization,
we began by consulting experts. But to change a company’s culture,
we knew we had to empower the individuals - the people on the
job - with that expert knowledge, so they embody their learning
and take ownership.
In effect, we’re giving them the responsibility for their success.
It’s the ownership that makes it stick.”
James Mallory, VP, Corporate Responsibility
10. PRIMERO 8 CSR 2014
We at Primero are proud to present our first Sustainability
Report as a multi-national company, with mines and
development projects in Mexico and Canada.
While 2014 was a difficult year for the mining industry,
it was a year of record-breaking performance for Primero.
Production increased by 57% over 2013 and we achieved
or exceeded all our operational objectives, while
maintaining strict controls on costs.
2014 was a year of transition and expansion. We
acquired the Black Fox Complex expanding our workforce
significantly and we worked to integrate our people and
operations into a single, unified Primero. The Black Fox
mine maintains strong relationships with its
communities and the Wahgoshig First Nation and
we look forward to a long future built on mutual
respect and collaboration.
Our primary goal is to always ensure the health and
safety of our people. In 2014, our safety performance
improved significantly: accident frequency reduced by
36% - an impressive statistic in a year of acquisition
and expanded production. But while accidents were
down, I regret to report a fatality at San Dimas. For
2015, our focus is on building safety awareness across
the organization. Our objective is to become a zero
harm operation, because no ounce of gold is worth
risking a life.
We recognize the impacts of mining on surrounding
regions. These can be positive, with new infrastructure,
employment opportunities and far-reaching economic
benefits, but there are also issues of concern to local
communities. Accordingly, we are committed to
improving our transparency in communication.
Materiality in reporting was one of this year’s
initiatives. In 2013, a company-wide process identified
the issues that are most important for our sustainability
strategy and reporting. This year’s report reflects these
findings. Of course, we understand that assessing
materiality is an ongoing process. As our industry
and the issues surrounding it evolve, so do our
stakeholders’ concerns.
“Our primary goal is
to always ensure the health
and safety of our people. “
Joseph F. Conway, CEO
Letter from the CEO
11. PRIMERO 9 CSR 2014
I would like to note some of the recognition that we have
received: in March 2015, for the fourth consecutive year,
we were named a “Socially Responsible Business” by
the Mexican Center for Philanthropy, in recognition of
our commitment to sustainable economic, social and
environmental operations. We’re committed to renewing
our two-year “Clean Industry” certification again in 2015
(the previous certification was received in 2013).
To improve our economic sustainability in today’s market
conditions, we began a company-wide analysis of our
value-generating activities - essentially a gap analysis
of processes, asset usage and maintenance, and our
local supply chain relationships. This business-focused
exercise was, I feel, instrumental in this year’s cost
Joseph F. Conway
Chief Executive Officer
reductions and will continue to have ripple effects on our
sustainability, and the sustainability of our suppliers and
local communities.
After such a good year, I look forward to an even
stronger 2015. I would like to thank the people of Primero
and the communities in which we live and work. Our
accomplishments would have not been possible without
their dedication and support.
Primero Management (from left to right): Tamara Brown, VP, Investor Relations, David Sandison, VP, Corporate Development,
H. Maura Lendon, Chief General Counsel and Corporate Secretary, Louis Toner, VP, Project Development and Construction,
Joseph F. Conway, Chief Executive Officer, Ernest Mast, President and Chief Operating Officer, Wendy Kaufman,
Chief Financial Officer, James Mallory, VP, Corporate Responsibility, Gabriel Voicu, VP, Geology and Exploration
Not Pictured: Maria-Luisa Sinclair, VP, Human Resources
13. PRIMERO 11 CSR 2014
Social responsibility and sustainable development
are integral to Primero’s 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
defines 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
Primero’s 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) 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. Weekly and
quarterly internal reporting tracks key performance
indicators in Corporate Responsibility. Two of the CRC’s
three members are independent members of the Board.
The complete CRC guidelines are available on the
Primero website (www.primeromining.com).
In 2014 the CRC reviewed Primero’s processes for
materiality in sustainability reporting, and ongoing policy
implementation in Health and Safety, environmental
practices and corporate social responsibility. In addition
to its regular meetings, the CRC met twice in 2014 to
assess overall sustainability performance.
We invite CRC-related recommendations or direction
from shareholders, employees or other stakeholders
at our dedicated email address:
sustainability@primeromining.com.
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.
Approximately 53% of San Dimas employees are
unionized (there is one union at the mine, two locals).
At San Dimas there have been no strikes since March 2011
(a 32-day strike), and the Company recently negotiated a
two-year agreement that will be in effect until 2017. There
is no union at the Black Fox mine. We do not believe that
the right to exercise freedom of association and collective
bargaining is at risk at any Primero location.
Ethical, Transparent Governance
14. PRIMERO 12 CSR 2014
Whistleblower Policy
Our corporate Whistleblower Policy incorporates leading
ethical practices, and has been delivered to all employees.
It allows any employee to communicate a concern or
complaint regarding ethical behaviour 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 have been informed of these channels
and they are also visibly posted in several areas at all
operations and offices and 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 2014, we conducted our second 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
and Black Fox mines. 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).
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). 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 2014, nor were any operations considered to have
significant risk for incidents of child labour.
Compliance with Laws and Regulations
In 2014, there were no legal actions taken against the
company for anti-competitive behaviour, and no form of
non-monetary sanctions were taken against either of
our mines.
In 2014, the Black Fox mill reported two non-compliance
events regarding mill effluent discharge. On two
occasions, samples taken at the final effluent discharge
exceeded the Environmental Compliance Approval daily
concentration for nickel (1.0 mg/l). These also caused
the monthly average limit (0.5 mg/l) to be exceeded. In
February 2015, The Ontario Ministry of the Environment
and Climate Change (MOECC) delivered a Notice of
Intention to issue an environmental penalty in the amount
of CDN $4,140.
16. PRIMERO 14 CSR 2014
Table 1 Material issues from the 2013 assessment considered in this report
Environmental
stewardship
Stakeholder engagement
and social progress
Economic
achievement
Governance
Energy use p.35
Community trust and
social license to operate p.28
Local procurement p.19
Ethical
business practices p.11
GHG emissions p.36 Community wellness p.28 Value creation p.18
Regulatory
compliance p.12
Tailing
management p.39
Diversity
and inclusiveness p.12, 18
Water
management p.34
Education and training p.31
Employee training and
career development p.27
Health and safety p.22
Infrastructure
and services p.1
Supplier development p.18
17. In a Sustainability 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 relevant enough that they should
be reported. While all issues are important, it is valuable
to establish the material topics and their priority for our
business and our stakeholders.
In 2013, we initiated a series of internal assessments
of materiality, based on independent guidelines and
standards that follow GRI guidance and best practices
for sustainability reporting. Many potentially material
issues were identified, and their importance was
discussed. The exercise resulted in an initial ranking
of material issues and their priorities for Primero’s
business. The list was further refined using the Primero
Enterprise Risk Management (ERM) process to plot
issues and assess their potential risks.
In 2014 we repeated the exercises with Black Fox
personnel. The initial results were consistent with
the list of material issues that had been identified
previously at San Dimas and the process is still ongoing.
The material issues identified, in order of priority,
were as follows:
Health Safety
Community Trust and Social License to Operate
Value Creation and Wealth Distribution
Regulatory Compliance
Water Management
See Table 1 for the complete list.
Through 2014, we brought the results to staff and
stakeholders in a number of workshops and presentations
that included discussions and the 2013 Sustainability
Report (in print and online). Primero management and
staff, union leaders, state agencies, industry associations
and the Wahgoshig First Nations representatives near the
Black Fox mine participated in these events.
Special note must be made of tailings management,
which is an issue of growing concern throughout
the industry. Several stakeholders raised the issue in
discussions during 2014 and we will be increasing our
transparency in reporting tailings matters, especially as
we review our tailings management plans at Black Fox.
We are pleased with the results of the year’s discussions
and are committed to proceeding, recognizing that this is
a long-term exercise.
PRIMERO 15 CSR 2014
MATERIALITY and Our Key Stakeholders
Water
Management
PAGE 34
5
1
Health
and Safety
PAGE 22
Community Trust
and Social License
to Operate
PAGE 28
2
Value Creation
and Wealth
Distribution
PAGE 18
3
Regulatory
Compliance
PAGE 12
4
19. PRIMERO 17 CSR 2014
* 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.
Primero is a Canadian-based company headquartered
in Toronto, Canada. 2014 was a year of transition and
expansion: when the year began the Company operated
one mine, the San Dimas mine in Mexico, and owned one
development project, Cerro del Gallo in Mexico and one
exploration property, the Ventanas project in Mexico.
In March 2014, the Company acquired the Black Fox
Complex, which comprises the Black Fox mine and mill,
an operating open pit and underground gold mine and
Grey Fox, an adjacent development project plus associated
exploration properties, in northern Ontario, Canada.
Because we operated the San Dimas mine for all of 2014
and the Black Fox mine for only ten months of the year,
most of the data in this report relates to San Dimas,
but data from Black Fox is also included where available
and relevant.
Due to the limited fieldwork on the Cerro del Gallo
property, its performance data is not covered in this
report. We are developing good relationships with
the communities around the Cerro del Gallo property,
including engaging with local schools and residents.
Through 2014, stakeholder mapping continued and a
more comprehensive mapping exercise and community
profiling has already occurred at the time of the writing of
this report (early 2015).
Building Primero Value
Table 2 Primero Operations Overview
Operating Mines
San Dimas Mine 100% Ownership
Black Fox Mine 100% Ownership
Location
San Dimas Mine
State of Durango (central west Mexico), approximately
150 km west of Durango, 125 km northeast of Mazatlán
Black Fox Mine Near Timmins, Ontario 600 km north of Toronto, Canada
Description
San Dimas Mine
Gold-silver deposit. Underground mine, using mechanized
cut-and-fill and long-hole mining methods
Black Fox Mine
Gold deposit. Open pit and underground mine. Open pit
mining is conducted 24 hours a day seven days a week.
Underground ore is mined using long-hole, mechanized
cut-and-fill, and narrow vein mining methods.
Production
220,067 Gold equivalent* ounces
185,286 Gold ounces
5.94 million silver ounces
Staff
1,817 Employees
169 Contractors
20. PRIMERO 18 CSR 2014
Adding Value by Increasing
Operational Efficiency
In 2014 we began a comprehensive initiative to analyze
our business processes and identify opportunities for
improvement to productivity and economic performance.
We explored all aspects of the San Dimas and Black Fox
operations, from organizational structure and production
processes to asset management and relationships with
our key suppliers. The results had an immediate effect:
both operations saw cost savings, employees are more
highly engaged and motivated and work teams are better
trained and higher performing on the job.
At Black Fox, consultants and employees participated in
analysis of equipment maintenance, goods and services
supplies and underground mine operations. Through
analysis and process improvements, they eliminated
a number of non-value-added activities in drilling
procedures, and optimized the performance of various
contract crews in different drilling scenarios (drilling in
soft, medium and hard ground).
At San Dimas, mine operations’ staff sought to increase
the tonnes of ore produced per day from an average of
2,480 tonnes per day (tpd) to in excess of 3,000 tpd.
Through a program of optimization, and gradual
execution of changes in blasting, mucking, shift
changes, and other mining operations, as well as
improvements to the plant’s ore crusher, the objective
was achieved - in fact, during the fourth quarter the
mine reached 2,846 tpd, which is 14% above the mill’s
nominal capacity.
In the fall of 2014, we began a comprehensive initiative
to analyze aspects of the supply chains at both sites,
with the objective of finding efficiencies, driving costs
down, and comparing procurement options among
local vendors. By engaging with key local suppliers and
developing new systems and standards with our top
local vendors, contracts and quotes were renegotiated,
resulting in net savings of approximately $250,000 (in
the last quarter of 2014 alone).
In 2015, productivity improvements will continue to
be implemented and we will also continue to examine
environmental and social performance requirements for
suppliers and contractors at all of our operations, and
continue to promote local entrepreneurship.
“When we talk about training and process improvement results,
we review data. But there is a more personal contribution that also
needs to be considered. During training we communicate how the
individual can be part of the solution and how to take ownership of a
given task. Consequently, the employee owns the results. When teams
and individuals take ownership, those improvements will last. It is
a lot of work, but is paying off. We’re seeing the results.”
Fernando Ragone, Director of Finance, Primero Mining
21. PRIMERO 19 CSR 2014
Distribution of Goods and Services Purchased in 2014
San Dimas Mine Black Fox Mine
For more detail on company and mine revenues, production, customers and markets, please refer to Primero’s Annual Report,
which is available at www.primeromining.com.
65.4%
1.9%
18.3%
14.4%
47.9%
42.2%
7.3%
2.6%
Local (within 100 km from site) Regional (within province or state) National (rest of country) International
Local Procurement
We are committed to supporting the development of
sustainable local economies through local purchasing
and small business development. At the San Dimas Mine,
we have established trucking contracts with a number of
entrepreneurs from local eijidos. (“eijido” is defined as land
owned and farmed communally under a system supported by
the state government).
At Black Fox, we continue to identify new business and
joint venture opportunities with the Wahgoshig First
Nation. The Matheson Chamber of Commerce recently
recognized Black Fox Mine for their contributions
to local economy. Black Fox also works closely with
goods and service providers from the city of Timmins,
a regional service and distribution centre with a long
history of supporting resource industries and a reliable
local source for goods and services to the mine.
Table 3 Direct economic value generated (in ‘000 US Dollars)
2012 2013 2014
a) Revenues 182,939 200,326 274,612
Economic value distributed
b) Operating costs (goods and services) 38,570 47,354 91,411
c) Employee wages and benefits 28,683 37,549 64,716
d) Payments to providers of capital 19 14,843 63,974
e) Payments to governments 592 728 11,377
f) Community investments 826 836 1,760
23. PRIMERO 21 CSR 2014
As we have grown into a multi-mine company with international operations,
we have not lost sight of the value of our core asset, our people. Our first
priority is the well-being of our employees: their safety on the job, their human
rights and their professional growth and development.
Our Vision
To be the most respected precious metals producer in
the Americas, admired for the excellence of its people,
its values and its delivery on commitments.
We value the diversity of our employees
and other stakeholders and treat each
other with dignity and honesty.
We have the courage to take bold steps
to excel and we apply a disciplined
approach to deliver on our objectives.
We have the courage to take bold steps
to excel and we apply a disciplined
approach to deliver on our objectives.
We work together and recognize
that each person contributes and
makes a difference.
We are uncompromising and
consistent in our commitment to
transparent, responsible actions.
We are uncompromising and
consistent in our commitment to
transparent, responsible actions.
FocusedFocused Integrity
Teamwork
Respect
Our Values
COMMITTED to Our People
24. PRIMERO 22 CSR 2014
Health and Safety
At every Primero operation 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 at San Dimas focuses on 10 critical tasks - such
as rock scaling, driver accreditation, and explosives
handling - to ensure that employees performing those
tasks have the prior training and, if appropriate, the
accreditation.
Our results: in 2014, our overall Total Reportable Injury
Frequency Rate (TRIFR) declined by a remarkable 36%.
While this is a major improvement, of which we are proud,
we must report a workplace fatality at the San Dimas
mine involving a contractor. It reinforces the challenges
that we in the mining industry face, and the need for a
relentless emphasis on safety. We will continue to learn
from our successes and to improve our training and risk-
identification, with the continuing objective of Zero Harm.
Health and Safety Governance
The key to building and maintaining a safety-first culture
is employee participation. We operate a variety of
safety-focused committees and groups. At San Dimas,
214 employees - or more than 16% of the mine’s
workforce - participated in safety committees or
continuous improvement teams in 2014. At Black Fox,
50 employees or 13% of the workforce participated in
safety initiatives.
At both Primero mines, Joint Health and Safety
Committees (JHSC) provide forums for employees from
the workforce and management through which they can
identify workplace hazards and make recommendations
for employee safety and/or to prevent equipment or
property damage. JHSC members also participate in
Operational Procedure reviews and take part in Accident
Investigations that relate to their scope of work.
Health and Safety System Model (San Dimas)*
“Our number one priority, at all times, is ensuring that our people return
home to their families at the end of their shift, healthy and safe.”
Guillermo Adrian, General Manager, San Dimas
CENTRAL
COMMITTEE OF
SAFETY AND
HEALTH
ACCIDENTS
INVESTIGATION
SYSTEMATIC
SCALING
GOOD WORKING
CONDITIONS
ENERGY
ISOLATING
KNOWLEDGEABLE
DRIVING
SAFE WORKING
AT HEIGHTS
WRITTEN PERMISSION
FOR NON-ROUTINE WORK
AUTHORIZATION TO WORK
WITH HOT MATERIALS
CORRECT
WEIGHT HOISTING
PROPER USE
OF EXPLOSIVES
KNOWLEDGE OF
EMERGENCY PROCEDURES
PREVENTIVE
OBSERVATION
CIRCLES
OF PREVENTION
OPERATION
PROGRAM
ZERO
HARM
DOCUMENTARY
SYSTEM
25. PRIMERO 23 CSR 2014
Key Performance Indicators
for Health and Safety
We have developed a number of Key Performance
Indicators (KPIs) for Health and Safety that have helped
us target the greatest risk factors, and focus on early
corrective measures. As a result of emphasizing these
KPIs in our safety programs, safety statistics markedly
improved - in many KPIs, the improvement is more than
100% over 2013.
San Dimas has instituted daily planned observation
checklists of each KPI. At Black Fox, employees use
10-point “Safety Cards”. The cards provide safety
messages and allow workers and supervisors to report
injuries or near misses, or to take note of any damage or
substandard conditions that are observed. The cards are
collected and documented so any situation can be acted
on by management and employees.
At Black Fox, employees use
10-point “Safety Cards”.
The cards provide safety
messages and allow workers
and supervisors to report injuries
or near misses, or to take note
of any damage or substandard
conditions that are observed.
Compliance with Safety Standards
No examples of non-compliance were identified at
either Primero mine in 2014. At Black Fox, the Ontario
Ministry of Labour Regulator visited the mine six times,
and the mill twice. No noncompliance issues were
identified and minor work orders were corrected.
At San Dimas, state regulators made four visits.
One was a follow-up to a previous visit to San
Dimas operations, while the other three visits were
to different contractors working in the mine.
Health and Safety Performance
We at Primero recognize the dangers inherent in the
type of work we do. Accordingly, we place enormous
emphasis on building and maintaining a strong safety
culture. Our efforts have resulted in a steady year-on-
year decline in overall accident frequency.
In 2014, our Total Reportable Injury Frequency was
down significantly over 2013: a 40% drop at San Dimas,
and a 31% drop at Black Fox. At San Dimas, this is the
ninth consecutive year of reductions in Total Reportable
Injury Frequency rates and the fifth consecutive year as
a Primero mine. San Dimas received special recognition
for its safety performance from the Durango State
Secretary of Labour and Social Welfare. In June 2014,
Black Fox celebrated more than one year without any
lost time injury - a significant achievement in the
mining industry.
For 2015, our goal is an overall reduction of 15% in our
All Injury Frequency Rate.
Table 4 Safety system key performance
indicators
San dimas kpis
% of Completion
2013 2014
Health and Safety
Committee Meetings
82% 82%
Supervisor Safety
Meetings
68% 107%
Scheduled Inspections 75% 100%
Planned Hazard
Observations
33% 105%
Corrective Actions
Closed
75% 79%
26. PRIMERO 24 CSR 2014
“The Mine Rescue Team members from Black Fox were very pleased
to have won the “First Aid Trophy” in the Ontario Mine District
Competition in Timmins in 2014. Emergency training is an imperative
part of our jobs and we were especially proud considering
it was only our second year competing.”
Graham Reid, HSE Security Manager, Black Fox
27. PRIMERO 25 CSR 2014
San Dimas and its two unions receive special recognition
for Primero Health and Safety Policies from the Secretary
of Labor and Social Welfare (STPS)
Black Fox wins the “First Aid Trophy” in the Ontario
Mine District Competition in Timmins
Bringing Home the Gold
LTIFR is the number of lost-time injuries per 200,000 hours worked. LTIFR = (Lost-Time Injuries x 200,000 hours) ÷ Total Hours Worked.
TRIFR is the number of reportable injuries per 200,000 hours worked.
2014 (Mar-Dec)
Black Fox
0
0
3
13
0.0
1.08
Table 5 Injury frequency
Injury Type
2011
San Dimas
2012
San Dimas
2013
San Dimas
2014
San Dimas
Fatalities 1 1 0 1
Lost-time injuries 3 6 3 4
Total reportable injuries 27 20 17 13
Significant potential incidents 65 42 29 10
LTIFR
(lost-time injury frequency rate)
0.18 0.36 0.17 0.26
Total reportable injury frequency rate 0.67
28. PRIMERO 26 CSR 2014
Health Protection and Training
Primero’s Safety System goes far beyond injury
prevention. It seeks to improve the health and welfare
of our workers, their families and the surrounding
communities. Through ongoing monitoring and check-
ups, we identify and prevent sickness. Checkups include:
Preventive programs for disease detection
Epidemiological disease-detection programs for all
employees exposed to noise, dust, hazardous chemical
substances, etc.
Biological 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. To the best
of the company’s knowledge, there were no workers with a
high incidence or high risk of specific diseases.
Table 6 Staff breakdown – December 31, 2014
Location
Full-Time
Employees
Union Contractors women men total
Toronto Office 29 0 2 14 15 31
Vancouver
Office
6 0 0 3 3 6
San Dimas
Mine
534 694 92 94 1,134 1,320
Cerro del Gallo
Project
17 0 2 5 12 19
Mexico City 12 0 0 5 7 12
Black Fox Mine 356 0 73 50 306 429
Total 954 694 169 171 1,477 1,817
29. PRIMERO 27 CSR 2014
Ongoing, monthly safety campaigns focus on specific
topics. The campaigns include awareness talks, training
courses and revision of standards. Topics have included
among others: lock out/tag out, defensive driving, safety
in work at heights and safe handling of sodium cyanide.
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.
Everywhere we operate, we seek to be recognized as an
employer of choice by offering competitive wages, above-
average benefits, by preferentially hiring locally and
recognizing and rewarding employee performance.
Health and Safety Agreements
Health and safety agreements apply to all employees
and 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 hourly
workers. The training is developed for each on the area,
based on the needs of each department.
At San Dimas in 2014, training was up 31% over last year,
with 27,088 hours 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 (San Dimas)
51% 3%
46%
Management
and staff
Operators and
labour workforce
Contractor
development
Table 7 gender distribution
Female 171 (10%)
Male 1,477 (90%)
total 1,648
30. PRIMERO 28 CSR 2014
In 2014 the Secretariat of Labour and Social Welfare presented
the San Dimas Mine with the “Family-Responsible Company” award,
in recognition of alignment of policies and practices to the need for
balance in personal, family and professional life.
31. PRIMERO 29 CSR 2014
* Donations for infrastructure and provision of services, provided
primarily as a public service, from which Primero does not seek
to gain direct economic benefit.
At Primero, we are committed to maintaining vibrant, economically diverse
communities around our mining operations. The presence of the San Dimas
mine has brought significant infrastructure upgrades to the community in
the form of improvements to roads, electrical and communication systems,
medical facilities and recreational facilities.
Although these initiatives were initially 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.
The town of Tayoltita, Mexico, which the majority of
our San Dimas employees call home, previously lacked
recreational facilities for families and youth. Primero, in
collaboration with Silver Wheaton Corp., has improved
the situation by building much-needed sports and
recreation infrastructure.
Following a comprehensive community survey conducted
in 2011, three sites were selected. In 2014, construction
began. We built a softball field for local youth, a family-
focused playground with fitness facilities, a children’s
soccer field and a multi-use recreation court
for basketball, volleyball, badminton and more.
The playground, soccer field, and recreation space were
opened in 2014, and the softball field was completed
in early 2015. The Tayoltita community was engaged
throughout the process, and plays an ongoing role in
managing these extremely popular facilities.
Sports and recreation centres are about far more than
fitness. They are valuable social tools for improving
quality of life, building community spirit and providing
local youth with positive activities. Through projects like
these, we at Primero are proud to contribute in material
ways to the health and well-being of our employees and
their families and to the social fabric of their communities.
Now that these facilities are complete, we are following up
with another community survey, to be completed this year,
to identify the community’s next priorities.
The Black Fox mine is located in an established mining
region of northern Canada. Relationships between the mine
and one of our neighbours, the Wahgoshig First Nation,
were already strong - an Impact Benefit Agreement (IBA)
has been in place since 2011 - and Primero is committed
to building on that foundation to ensure long-term mutual
benefits. A Wahgoshig Community Liaison is on full-time
staff at site and a joint Implementation Committee acts
as a forum for communication and cooperation to address
the provisions of the IBA that relate to employment,
training and workplace conditions, as well as business
and contracting opportunities that will contribute to a
sustainable local economy. The IBA provides a framework
for how the parties work together during any construction,
development and operations at the Black Fox Complex.
COMMITTED to Our Communities
Table 8 Public Infrastructure/
Community Contributions*
2014 Primero contributions (USD)
Direct contributions:
(Money or in-kind benefits provided
directly to community or organizations
for specified purposes.)
$1,214,508
Indirect contributions:
(Money or in-kind benefits or provisions
specified in land use, Impact–benefit or
reciprocity agreements.)
$545,235
33. PRIMERO 31 CSR 2014
Environmental Awareness
Raising environmental awareness in the community
is always a priority. In 2014, we continued our annual
environmental awareness campaigns. In San Dimas,
this year’s program surpassed the previous year’s by
50%, reaching a total of 1,500 students from pre-school
through high school levels. Topics included the recycling
and management of domestic waste, educational
videos on environmental protection, dissemination
of information on Global Environmental Day and
introductions to regional flora and wildlife.
In Tayoltita, in an effort to inspire community involvement
and environmental awareness, 82 employee and student
volunteers contributed to a municipal cleanup campaign,
and cleaned up the riverside along sections of the Piaxtla
River. The company provided logistical support and
helped remove more than 6 tonnes of scrap and residue.
At the Cerro del Gallo project, we held two workshops,
for students and parents in nearby rural schools, to
introduce environmental issues to the community,
and generate awareness and participation in waste
classification and recycling.
Culture and Recreation
At San Dimas, and the community of Tayoltita, Primero is a
strong force in communality culture and recreation. In 2014,
we built three new recreation parks in Tayoltita and offered
programs such as “Tayoltita Activa” and “Grandes Familias”
to offer recreational, cultural and sporting activities.
These popular, well-attended activities, which are open
to the entire community, promote sport and physical
activity. Coaching is available from experienced trainers
in a variety of sports and disciplines. More than
575 young athletes - most of them aged 9 to 15 -
participated in seven different sports programs over
the year-long program.
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. There were 22 new graduates from
this year’s program bringing the total to 178 over the last
8 years. We continue to provide logistical support for
classroom operations for rural students.
The Black Fox mine together with the Wahgoshig First
Nation and Timmins campus of Northern College, are
finalizing an operator training program in underground
mine equipment, which should become available in 2015.
The training co-operative will include equipment use, and
classroom-in-the-field training from qualified instructors.
Scholarships Awarded, 2014
85
22
7
Employee
scholarships
Family
scholarships
Community
scholarships
34. PRIMERO 32 CSR 2014
“At Primero we recognize that our most important asset is our people
and we also continue to be committed to protecting the environment
and contributing to the well-being of our communities.”
Homero Valenzuela, Social Responsibility, Mexico
35. PRIMERO 33 CSR 2014
As our company grows, and our production increases,
it is inevitable that our water consumption and waste
numbers will rise. We are 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’s 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 or exceed 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
We are committed to minimizing our environmental footprint through
improving process efficiency, recycling water and optimizing our operations
wherever possible.
through precautionary measures that mitigate damage
and promote recovery and reclamation. Our Primero
Risk Management Policy and processes are implemented
and are effective in identifying and avoiding, reducing or
eliminating the environmental impacts of mining
and processing.
protecting the Environment
“Clean Industry” Certification
In 2013, the San Dimas mine was granted a two-year
“Clean Industry” certification 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. Since 2013, San Dimas has
been implementing the Risk Management Policy and
improving its environmental aspect identification and
management plans. In 2014, the mine underwent an
internal audit process followed by an external review
of our Clean Industry framework in preparation for
recertification in 2015.
36. PRIMERO 34 CSR 2014
Water Management
Water Management is a prime concern in the
San Dimas region and at the Black Fox Mine. Water
use intensity increased slightly at San Dimas with the
increased production and a property wide water
balance is being updated to better focus on reducing
fresh water consumption and increase recycling and
re-use opportunities.
We plan to continue to improve water efficiencies
at both sites.
Water Use Intensity
(m3
fresh water per tonne of ore processed)
0.488
2014
San Dimas
0.529
2014
Black Fox
0.449
2013
San Dimas
0.455
2012
San Dimas
The San Dimas mill uses a thickened tailing and belt filtration strategy keeping most of the process solutions within the plant. The belt filtration
plant removes the final solutions which are recycled back to the plant.
The Black Fox mill utilizes a sub aerial tailing deposition strategy which requires more solution for tailings transport and as a result, a higher
recycle volume returned to the process plant.
2014
Black Fox
425,000 m3
0
1,476,000 m3
1,901,000 m3
77.6%
Table 9 water use
Total Water Withdrawal by Source
2012
San Dimas
2013
San Dimas
2014
San Dimas
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
439,000 m3
Surface water - including water from wetlands,
rivers, lakes, and oceans
0 0 0
Recycled water 282,000 m3
479,000 m3
472,000 m3
Total water used 610,000 m3
824,000 m3
911,000 m3
% Recycled water 46.1 % 58.1% 51.8%
37. PRIMERO 35 CSR 2014
Energy Use and Greenhouse Gas Emissions
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 65% of
the mine’s requirements in 2014. 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 2014 the Phase II expansion was completed, increasing
capacity to approximately 75 GW per year. San Dimas
is also implementing an energy management strategy,
in which up to 100% of the power required during
peak periods is supplied from Las Truchas. This has
eliminated unplanned brown-outs due to over demand
on the public grid, and has generated significant cost
savings by reducing peak demand on the public grid.
San Dimas is also
implementing an energy
management strategy, in
which up to 100% of the
power required during
peak periods is supplied
from Las Truchas.
Table 10 Energy Consumption (GJ)
2011
San Dimas
2012
San Dimas
2013
San Dimas
2014
San Dimas
2014
Black Fox
Direct
Diesel (stationary) 17,941 22,383 19,416 10,742 546
Diesel (transport) 90,593 89,134 84,117 98,413 292,638
Gasoline (transport) 3,764 2,047 3,781 5,177 5,590
Propane (heating) 36,969
Indirect
Electricity purchased:
Las Truchas
142,366 123,847 154,930 180,997 n/a
Electricity purchased 66,438 98,482 85,626 95,796 201,589
38. PRIMERO 36 CSR 2014
Air Quality Measurement
In 2014, 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. We
continue to do regular atmospheric studies and particulates
concentration in air discharges from our mining processes
have been in compliance with regulations.
In 2014, we have reported atmospheric emissions from both operations
with conversion factors consistent with their respective jurisdictions.
Average GHG Emission Intensity
(Tonnes of CO2
e per tonne of ore processed)
0.0261
2014
SanDimas
0.0378
2014
BlackFox
0.0329
2012
SanDimas
0.0283
2013
SanDimas
0.029
2011
SanDimas
Table 11 Greenhouse Gas Emissions (as tonnes of CO2
e)
2011
San Dimas
2012
San Dimas
2013
San Dimas
2014
San Dimas
2014
Black Fox
Direct
Diesel (stationary) 1,323 1,652 1,433 801 41
Diesel (transport) 6,525 6,714 6,336 7,298 21,770
Gasoline (transport) 272 147 271 361 396
Propane (heating) 2,245
Explosives (ANFO/Emulsion) 520
Indirect
Electricity 8,396 15,236 13,680 14,961 5,380
Total 16,516 23,749 21,720 23,421 30,352
39. PRIMERO 37 CSR 2014
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.
Black Fox mine operations are both open pit and underground generating higher waste rock volumes than those encountered at San Dimas,
which is only an underground operation.
In 2014, we spent $3.6 million on capital projects related
to environmental protection, in improvements to the
tailings pipeline, construction of a new waste rock dump,
installation of a potable water treatment system in
San Dimas, and the construction of a hazardous waste
storage warehouse in Durango.
Our 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. All hazardous
materials are collected, stored, transported and finally
disposed in a manner consistent with the hazardous
waste management plan for final disposal.
Table 12 Mining Waste
Process Waste
2011
San Dimas
2012
San Dimas
2013
San Dimas
2014
San Dimas
2014
Black Fox
Waste rock (000s tonnes) 1,038 950 831 1,292 5,846
Backfill % 76% 43% 32% 38% 1%
Waste rock storage % 24% 57% 68% 62% 99%
Tailings (000s tonnes) 663 721 767 899 804
At both sites the largest component of non-hazardous waste is scrap steel followed by domestic waste. The higher waste figure
at Black Fox is the biological waste /biosolids hauled off site for treatment.
The increase of hazardous wastes at San Dimas is attributed to used oil, industrial packaging and contaminated soils hauled off site for
processing and disposal.
Table 13 Hazardous and Non-Hazardous Waste
waste type
2012
San Dimas
2013
San Dimas
2014
San Dimas
2014
Black Fox
Non-hazardous waste (tonnes) 268 250 284 868
Hazardous wastes (tonnes) 165 198 217 25
41. PRIMERO 39 CSR 2014
Tailings
In 2014, several stakeholders raised the issue of tailing
management in our discussions of material issues.
In the future, we will increase our transparency in
reporting tailings matters, especially as we complete our
assessments and review our tailings management plans
at all our operations.
Black Fox utilizes a sub-aerial method of tailing deposition,
with spigoting inside a perimeter dam that creates a
‘beach’ of tailing sands. A water management pond, or
impoundment area, captures the supernatant and the
precipitation and run-off is recycled back to the mill.
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 2014, a technical review and risk assessment
of the Cupias tailing storage facility at San Dimas
was performed by Amec Foster Wheeler. The final
assessment will be delivered in 2015.
Biodiversity and Aquatic Monitoring
Since 2010, a third-party consultant has monitored water
quality and aquatic life in the Piaxtla River near the
San Dimas mine. In 2014, they monitored four sampling
stations: located upstream, within and downstream of
the area of influence of Tayoltita village and San Dimas
activities. A new sampling station (station VA-08) has
been added approximately 200 meters downstream
from the newly completed Herradura waste rock storage
project. In 2014 the habitat quality at all four stations
were categorized as sub-optimal*. The new station
(station VA-08) exhibited lower levels of richness and
abundance when compared to the other three sites and
that may be attributed to the habitat modifications that
occurred during the waste rock storage project.
Primero conducts ongoing Environmental Effects
Monitoring Studies (EEM) in the receiving water bodies
at both the Black Fox Mill and Black Fox Mine Sites.
These studies are completed by third party consultants
in accordance with Environment Canada requirements.
The conclusion of the studies (2012 2014) was that
the mine and mill effluents were not adversely affecting
the aquatic ecosystems in neither the mine nor the mill
receiving water bodies.
Mine Closure and Reclamation
The San Dimas mine has been in production for over
100 years, however, every mine has a finite life. At all
our operations we continue to update our plans for the
mine’s eventual closure. The Company reviews closure
costs annually and has accrued a decommissioning
liability consisting of reclamation and closure costs for
the San Dimas and Black Fox mines and the historical
San Antonio tailings and is reported in our financial
statements. There was no progressive closure activity
in 2014 and we expect to resume remediation of the
historical San Antonio tailings in 2016.
“Where we’re creating value, in
our management’s approach, is
in empowering our people. It’s as
much for the people on the job as
it is for our shareholders—they all
benefit when we see the gains.”
James Mallory, VP, Corporate Responsibility
* 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).
42. PRIMERO 40 CSR 2014
As a young, rapidly-growing gold producer with a multinational presence,
we are justifiably proud of the recognition and awards that we have received
for our social, health and safety, and environmental performance. In 2015
and beyond, we intend to build on this track record as we develop and
improve company-wide standards for recording and reporting sustainability
information at every one of our mining operations and development projects.
As we proceed along our growth trajectory, we will maintain our culture
of continual improvement in sustainability, and 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.
In Closing
“We’ve made great strides in reporting in materiality but realize that
assessing materiality is an ongoing process. As our industry evolves,
so do our stakeholders’ concerns and we will take great care to ensure
we are always transparent and accountable to them. Only by sharing
in the benefits of mining with our surrounding communities and
protecting the environment that sustains us all, can we truly thrive.”
Joseph F. Conway, CEO
44. PRIMERO 42 CSR 2014
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
8
1.2 Description of key impacts, risks and opportunities 8
2. ORGANIZATIONAL PROFILE Source Page
2.1 Name of the organization 3
2.2 Primary brands, products, and/or services 3, 17
2.3
Operational structure of the organization, including main divisions, operating
companies, subsidiaries, and joint ventures
3, 17
2.4 Location of organization's headquarters 17
2.5
Number and name of countries where the organization operates, with either major
operations or that are specifically relevant to sustainability
17
2.7 Markets served including geographic, sectors and customers 17
2.8 Scale of the organization 17
2.9 Significant changes during the reporting period regarding size, structure, or ownership 4
2.10 Awards received in the reporting period 6, 9, 24, 28
3. REPORT PARAMETERS Source Page
3.1 Reporting period (e.g., fiscal/calendar year) for information provided 4
3.2 Date of most recent report 4
3.3 Reporting cycle 4
3.4 Contact point for questions regarding the report or its contents 4
3.5 Process for defining report content 4, 14, 15
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint
ventures, suppliers)
4
3.7 Any specific limitations on the scope or boundary of the report 4
3.10
Explanation 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)
4
3.11
Significant changes from previous reporting periods in the scope, boundary, or
measurement methods applied in the report
4
3.12 Location of the Standard Disclosures in the report 4
3.13 Policy and practice relating to seeking external assurance 6, 12
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
6, 11
GRI index
45. PRIMERO 43 CSR 2014
4.8
Internally developed statements of mission or values, codes of conduct, and principles
relevant to economic, environmental, and social performance and the status of their
implementation
6, 11, 15, 21
4.12
Externally developed economic, environmental, and social charters, principles, or
other initiatives to which the organization subscribes or endorses
12, 21, 23, 33
4.14 Stakeholder engagement 6, 15, 39
4.15 Basis for identification and selection of stakeholders with whom to engage, 15
4.16
Approaches to stakeholder engagement, including frequency of engagement by type
and stakeholder group
15
4.17
Key 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
14, 15, 39
ECONOMIC INDICATORS Source Page
EC1
Direct economic value generated and distributed, including revenues, operating costs,
employee compensation, community investments and payments to capital providers
and governments
19, 29, 31
EC6
Policy, practices, and proportion of spending on locally-based suppliers at significant
locations of operation
19
ENVIRONMENTAL PERFORMANCE INDICATORS Source Page
EN3 Direct energy consumption by primary energy source 35
EN4 Indirect energy consumption by primary energy source 35
EN6
Initiatives to provide energy efficient or renewable energy based products and
services, and reductions in energy requirements as a result of these initiatives
35
EN7 Initiatives to reduce indirect energy consumption and reductions achieved 35
EN8 Total water withdrawal by source 34
EN10 Percentage and total volume of water recycled and reused 34
EN12
Description of significant impacts of activities, products, and services on biodiversity
in protected areas and areas of high biodiversity value outside protected areas
39
EN13 Habitat protected or restored 39
EN16 Total direct and indirect greenhouse gas emissions 36
EN22 Total weight of waste by type and disposal method 37
EN24
Weight 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
37
EN26
Initiatives to mitigate environmental impacts of products and services, and extent
of impact
26, 33, 35, 37, 39
EN28
Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with environmental laws and regulations
12
46. PRIMERO 44 CSR 2014
LABOuR PRACTICES AND DECENT WORK PERFORMANCE INDICATORS Source Page
LA1 Total workforce by employment type, employment contract, and region 17, 26
LA4 Percentage of employees covered by collective bargaining agreements 11, 26
LA6
Percentage of total workforce represented in formal joint management worker health
and safety committees that help monitor and advise on occupational health and
safety programs
22
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and total number
of work-related fatalities by region and by gender
25
LA8
Education, training, counselling, prevention, and risk-control programs in place to
assist workforce members, their families, or community members regarding
serious diseases
22, 26
LA9 Health and safety topics covered in formal agreements with trade unions 23, 27
LA11
Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings
27, 31
HUMAN RIGHTS INDICATORS Source Page
HR4 Total number of incidents of discrimination and actions taken 11
HR9
Total number of incidents of violations involving rights of Indigenous peoples and
actions taken
11
SOCIETY PERFORMANCE INDICATORS Source Page
SO7
Total number of legal actions for anticompetitive behaviour, anti-trust, and monopoly
practices and their outcomes
12
SO8
Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with laws and regulations
12
MINING SECTOR INDICATORS Source Page
MM2
The 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
39
MM3 Total amounts of overburden, rock, tailings and sludges and their associated risks. 37
MM4 Number of strikes and lock-outs exceeding one week’s duration, by country 11
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.
47. corporate Directory
Directors
Wade Nesmith
Chairman
Vancouver, BC
Joseph F. Conway
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
President and Chief Executive Officer,
Khan Resources Inc.
Mississauga, ON
Rohan Hazelton 1
Vice President Strategy,
Goldcorp Inc.
Vancouver, BC
Eduardo Luna 1
Corporate Director
Mexico City, Mexico
Brad Marchant 1
Chief Executive Officer,
Enterra Feed Corporation
Corporate Director
Vancouver, BC
Robert A. Quartermain 2, 3
President and Chief Executive Officer,
Pretium Resources Inc.
Vancouver, BC
Michael Riley 2, 5
Corporate Director
Vancouver, BC
Board Committees
1 Member of the Corporate Responsibility
Committee
2 Member of the Human Resources
Committee
3 Member of the Governance and
Nominating Committee
4 Lead Director until March 16, 2015
5 Member of the Audit Committee
Officers
Joseph F. Conway
Chief Executive Officer
Ernest Mast
President and Chief Operating Officer
Tamara Brown
Vice President, Investor Relations
Wendy Kaufman
Chief Financial Officer
H. Maura Lendon
Chief General Counsel
and Corporate Secretary
James Mallory
Vice President, Corporate
Responsibility
David Sandison
Vice President, Corporate
Development
Maria-Luisa Sinclair
Vice President, Human Resources
Louis Toner
Vice President, Project Development
and Construction
Gabriel Voicu
Vice President, Geology and
Exploration
Corporate Office
Toronto
79 Wellington Street West
TD South Tower, Suite 2100
Toronto, ON, Canada M5K 1H1
T 416 814 3160
F 416 814 3170
TF 1 877 619 3160
Investor Inquiries
Tamara Brown
Vice President, Investor Relations
T 416 814 3168
Website
www.primeromining.com
We welcome feedback on this
report or on any other aspect of
sustainability at Primero.
Please contact us at
sustainability@primeromining.com.
Corporate Responsibility
James Mallory
Vice President, Corporate
Responsibility
T 416 814 3143
F 416 814 3170
E sustainability@primeromining.com
Tania Shaw
Manager, Communication
T 416 814 3179
F 416 814 3170
E info@primeromining.com
Primero Mining is a proud member
of the World Gold Council.
Production Notes
Design and Production: Macrae Creative
Printing: RRD
Printed in Canada
This paper has been certified to meet the
environmental and social standards of the
Forest Stewardship Council® (FSC®) and
comes from responsibly managed forests
and/or verified recycled sources.
101537
48. www.primeromining.com
Primero is a Canadian-based gold mining company with mines in
Canada and Mexico, and a strong portfolio of development-stage
and exploration projects. After a year of production increases,
exploration success and management renewal, we look forward to
continuing to deliver disciplined growth and long-term value.
Through 2014, and into 2015, Primero has been engaged in
standardizing corporate-wide policies and procedures, and making
significant progress in its plans for Corporate Social Responsibility,
to ensure consistency in goals and measurement as the Company
moves forward.
