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TRANSPARENCY
SUSTAINABILITY REPORT 2010   INTEGRITY
                             ACCOUNTABILITY
TRANSPARENCY INTEGRITY ACCOUNTABILITY




We are committed to embedding corporate responsibility into our
daily activities and to holding ourselves to the highest standards
of TRANSPARENCY, INTEGRITY and ACCOUNTABILITY. Our goal is to
continuously improve workplace health and safety, as well as our
environmental performance, and to share the benefits of mining with
our local communities.




                                        01
                              Sustainability Report 2010
TRANSPARENCY INTEGRITY ACCOUNTABILITY




Our People | Our Future
We are proud of our 100% national workforce at San Dimas, proof of our
commitment to hiring locally. Our workforce is young – with 40% of our
employees under the age of 30 – representing both the present and the
future of our organization.

In 2010, San Dimas maintained a full-time workforce of 1088, including contractors. The workforce is comprised of
586 employees and labor union workers, and 502 contractors carrying out surface as well as underground activities.

Pioneering gender equality, the ‘Miner Women’ project at San Dimas aims to employ more female workers in all
areas of the operation. Of the eighty-one women employed at the mine, nine are engaged in underground activities.


                           National Workforce                                                   Supporting Diversity




              Durango   Sinaloa   Zacatecas   Guanajuato   Other                                Other   Youth    Female
              78%       9%        4%          2%           7%                                   575     432      81




                                                                             03
                                                                   Sustainability Report 2010
We are proud of our 100% national workforce at
San Dimas, proof of our commitment to hiring locally.
TRANSPARENCY INTEGRITY ACCOUNTABILITY




Health & Safety
                                                                                     All Incidents
Safety is more than a policy at Primero;
it is core to our culture.                                                     140

                                                                               120

                                                                               100
• In 2010, there were seven lost time accidents at Sim Dimas -
                                                                               80
  a remarkably low ratio to the over two million man hours of
                                                                               60
  exposure that year.                                                          40

• 1.6 million hours with no lost time injuries                                 20

                                                                                0
• Over 6,000 safety talks were delivered                                                2005   2006   2007   2008   2009    2010   2011


• In September 2010 San Dimas was a finalist in the Mexican
  Mining Chamber’s National Mine Safety Contest



Primero is committed to delivering an
                                                                                                          Best
illness-free & injury-free workplace.                                                                   Practices


San Dimas achieved another outstanding safety performance
in 2010, reducing the all-accident injury index for the fifth
                                                                                      Monthly           Safety             Government
consecutive year.                                                                    Campaigns          System             Compliance

Our safety program focusses on 4 key areas

1. Best Practices in underground mining
                                                                                                       Behaviour
2. Training                                                                                             Training
3. Government Compliance
4. Monthly Campaigns

                                                            07
                                                  Sustainability Report 2010
TRANSPARENCY INTEGRITY ACCOUNTABILITY




San Dimas’s emergency response teams achieved first place in the First
Aid and self-contained breathing machine tests at the 2010 National
Mining Rescue Contest organized by the Mexican mining chamber.

EMERGENCY PREPAREDNESS
Specialized safety courses conducted on-site focus on required job skills, safety and emergency response. Primero
has trained and qualified emergency response personnel in case of accidents who are well equipped to deal with
emergencies in both surface and underground situations. The team works closely with the government authorities
to provide assistance to local communities when needed.

OCCUPATIONAL HEALTH & WELLNESS
The occupational health of workers is monitored through preventive programs and regular medical examinations.

In 2010, a variety of responsive treatments were offered - from vaccinations against influenza, tetanus and HPV,
to advice on nutrition and family planning. 



                                                           09
                                                 Sustainability Report 2010
TRANSPARENCY INTEGRITY ACCOUNTABILITY




Our Environment
Primero strives to be a responsible steward of the environment and to
continually reduce our overall environmental footprint. To achieve this, we
remain focused on minimizing the environmental impact of our operations
and to progressively rehabilitating areas impacted by our mining activities.



    4 Certified ‘Clean Industry’ by the Procuraduria Federal de Proteccion
       al Ambiente (Mexican EPA)

    4 Bioremediation work carried out on 300 tons of soil

    4 62% of the water supply used in the processing plant recirculates
       into the system




                                              11
                                   Sustainability Report 2010
TRANSPARENCY INTEGRITY ACCOUNTABILITY




MATERIAL AND WASTE MANAGEMENT
In 2010 expenditures at the mine focused on capital improvement programs which included a new state of the
art dry tailings plant. Approximately $1.5 million was spent installing a third tailings filter. The full project, which is
expected to cost @2.3 million, was 65% complete at December 31, 2010.

Waste rock impoundment engineering work was completed in 2010.

WATER MANAGEMENT
Water for the mining operations is obtained from wells and from the Piaxtla River. Water is also supplied to the
town of Tayoltita from an underground thermal spring at the Santa Rita mine. Water is recycled several times at the
operations, with 62% of the water used in the processing plant recirculated into the system.

“RESCUE THE PIAXTLA RIVER” CLEAN-UP CAMPAIGN
San Dimas holds annual clean-up campaigns along the Piaxtla River and within the Tayoltita community to coincide with
global milestones such as World Earth Day and World Environment Day, held on April 22 and June 5, respectively.

RENEWABLE ENERGY
In December 2010, Las Truchas Hydroelectric Plant, owned and managed by Primero, was connected to the Federal Power
Commission’s supply system. This 34 kVA power line from Las Truchas Dam, 42 km north of the San Dimas Mine, has
expanded the available power from 1.4 MW to 7.0 MW and reduced power costs from 11 cents/kWj to 1.5 cents/kWh.


                                                                 13
                                                      Sustainability Report 2010
TRANSPARENCY INTEGRITY ACCOUNTABILITY




Community
We actively engage with our local communities in order to understand and
contribute to their economic, social and development priorities. Primero
supports innovative community initiatives at San Dimas, generating new
jobs, incomes, technical skills and local capacity.

• Primero partnered with the Ministry of Social Development (SEDESOL) to launch a child daycare program.

• 227 local students at San Dimas attending school as a result of Primero scholarships

• 40 women received skills development training on handicraft production in partnership with the Ministry of
  Environment and Natural Resources (SEMARNAT)

PROMOTING EDUCATION
The Company supports various educational institutions attended by employees and their children.

The Company has partnered with the Municipality of San Dimas, to support the Duranguense Institute in Adult
Education (IDEA) provide better education to the community of Tayoltita.

In collaboration with the National Association of Professional Technical Education (CONALEP), Primero provides
training programs to update employees’ skills. In 2010 the company sponsored 47 high-school graduates interested
in pursuing a career in mining.




                                                             15
                                                  Sustainability Report 2010
TRANSPARENCY INTEGRITY ACCOUNTABILITY




ENCOURAGING YOUTH
The Center for Juvenile Integration at San Dimas provides advice on public health issues and addiction awareness
programs.

In 2010, talks on prevention addiction were taught in local schools and a variety of cultural, sporting and social
events were held.

SUPPORTING LOCAL ECOMONIC DEVELOPMENT
By encouraging the development of alternate sources of income, we support strategic local business initiatives that
strengthen local supply chains and increase entrepreneurial opportunities.

EMPOWERING WOMEN
In October 2010, Primero partnered with the Ministry of Environment and Natural Resources (Secretaría de
Medio Ambiente y Recursos Naturales) to deliver skills development training to 40 women entrepreneurs to create
eco-friendly handicrafts using recycled plastic bottles and bags.




                                                             16
                                                  Sustainability Report 2010
CONTACT US


Eduardo Luna
Executive Vice President
eduardo.luna@primerominas.com

Martin Aguilar
Mine General Manager
martin.aguilar@primerominas.com

Marco Navarro
Safety Superintendent of the Mine
marco.navarro@primerominas.com
TRANSPARENCY
INTEGRITY
ACCOUNTABILITY

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Primero csr 2010 final

  • 1. TRANSPARENCY SUSTAINABILITY REPORT 2010 INTEGRITY ACCOUNTABILITY
  • 2.
  • 3. TRANSPARENCY INTEGRITY ACCOUNTABILITY We are committed to embedding corporate responsibility into our daily activities and to holding ourselves to the highest standards of TRANSPARENCY, INTEGRITY and ACCOUNTABILITY. Our goal is to continuously improve workplace health and safety, as well as our environmental performance, and to share the benefits of mining with our local communities. 01 Sustainability Report 2010
  • 4.
  • 5. TRANSPARENCY INTEGRITY ACCOUNTABILITY Our People | Our Future We are proud of our 100% national workforce at San Dimas, proof of our commitment to hiring locally. Our workforce is young – with 40% of our employees under the age of 30 – representing both the present and the future of our organization. In 2010, San Dimas maintained a full-time workforce of 1088, including contractors. The workforce is comprised of 586 employees and labor union workers, and 502 contractors carrying out surface as well as underground activities. Pioneering gender equality, the ‘Miner Women’ project at San Dimas aims to employ more female workers in all areas of the operation. Of the eighty-one women employed at the mine, nine are engaged in underground activities. National Workforce Supporting Diversity Durango Sinaloa Zacatecas Guanajuato Other Other Youth Female 78% 9% 4% 2% 7% 575 432 81 03 Sustainability Report 2010
  • 6.
  • 7. We are proud of our 100% national workforce at San Dimas, proof of our commitment to hiring locally.
  • 8.
  • 9. TRANSPARENCY INTEGRITY ACCOUNTABILITY Health & Safety All Incidents Safety is more than a policy at Primero; it is core to our culture. 140 120 100 • In 2010, there were seven lost time accidents at Sim Dimas - 80 a remarkably low ratio to the over two million man hours of 60 exposure that year. 40 • 1.6 million hours with no lost time injuries 20 0 • Over 6,000 safety talks were delivered 2005 2006 2007 2008 2009 2010 2011 • In September 2010 San Dimas was a finalist in the Mexican Mining Chamber’s National Mine Safety Contest Primero is committed to delivering an Best illness-free & injury-free workplace. Practices San Dimas achieved another outstanding safety performance in 2010, reducing the all-accident injury index for the fifth Monthly Safety Government consecutive year. Campaigns System Compliance Our safety program focusses on 4 key areas 1. Best Practices in underground mining Behaviour 2. Training Training 3. Government Compliance 4. Monthly Campaigns 07 Sustainability Report 2010
  • 10.
  • 11. TRANSPARENCY INTEGRITY ACCOUNTABILITY San Dimas’s emergency response teams achieved first place in the First Aid and self-contained breathing machine tests at the 2010 National Mining Rescue Contest organized by the Mexican mining chamber. EMERGENCY PREPAREDNESS Specialized safety courses conducted on-site focus on required job skills, safety and emergency response. Primero has trained and qualified emergency response personnel in case of accidents who are well equipped to deal with emergencies in both surface and underground situations. The team works closely with the government authorities to provide assistance to local communities when needed. OCCUPATIONAL HEALTH & WELLNESS The occupational health of workers is monitored through preventive programs and regular medical examinations. In 2010, a variety of responsive treatments were offered - from vaccinations against influenza, tetanus and HPV, to advice on nutrition and family planning.  09 Sustainability Report 2010
  • 12.
  • 13. TRANSPARENCY INTEGRITY ACCOUNTABILITY Our Environment Primero strives to be a responsible steward of the environment and to continually reduce our overall environmental footprint. To achieve this, we remain focused on minimizing the environmental impact of our operations and to progressively rehabilitating areas impacted by our mining activities. 4 Certified ‘Clean Industry’ by the Procuraduria Federal de Proteccion al Ambiente (Mexican EPA) 4 Bioremediation work carried out on 300 tons of soil 4 62% of the water supply used in the processing plant recirculates into the system 11 Sustainability Report 2010
  • 14.
  • 15. TRANSPARENCY INTEGRITY ACCOUNTABILITY MATERIAL AND WASTE MANAGEMENT In 2010 expenditures at the mine focused on capital improvement programs which included a new state of the art dry tailings plant. Approximately $1.5 million was spent installing a third tailings filter. The full project, which is expected to cost @2.3 million, was 65% complete at December 31, 2010. Waste rock impoundment engineering work was completed in 2010. WATER MANAGEMENT Water for the mining operations is obtained from wells and from the Piaxtla River. Water is also supplied to the town of Tayoltita from an underground thermal spring at the Santa Rita mine. Water is recycled several times at the operations, with 62% of the water used in the processing plant recirculated into the system. “RESCUE THE PIAXTLA RIVER” CLEAN-UP CAMPAIGN San Dimas holds annual clean-up campaigns along the Piaxtla River and within the Tayoltita community to coincide with global milestones such as World Earth Day and World Environment Day, held on April 22 and June 5, respectively. RENEWABLE ENERGY In December 2010, Las Truchas Hydroelectric Plant, owned and managed by Primero, was connected to the Federal Power Commission’s supply system. This 34 kVA power line from Las Truchas Dam, 42 km north of the San Dimas Mine, has expanded the available power from 1.4 MW to 7.0 MW and reduced power costs from 11 cents/kWj to 1.5 cents/kWh. 13 Sustainability Report 2010
  • 16.
  • 17. TRANSPARENCY INTEGRITY ACCOUNTABILITY Community We actively engage with our local communities in order to understand and contribute to their economic, social and development priorities. Primero supports innovative community initiatives at San Dimas, generating new jobs, incomes, technical skills and local capacity. • Primero partnered with the Ministry of Social Development (SEDESOL) to launch a child daycare program. • 227 local students at San Dimas attending school as a result of Primero scholarships • 40 women received skills development training on handicraft production in partnership with the Ministry of Environment and Natural Resources (SEMARNAT) PROMOTING EDUCATION The Company supports various educational institutions attended by employees and their children. The Company has partnered with the Municipality of San Dimas, to support the Duranguense Institute in Adult Education (IDEA) provide better education to the community of Tayoltita. In collaboration with the National Association of Professional Technical Education (CONALEP), Primero provides training programs to update employees’ skills. In 2010 the company sponsored 47 high-school graduates interested in pursuing a career in mining. 15 Sustainability Report 2010
  • 18. TRANSPARENCY INTEGRITY ACCOUNTABILITY ENCOURAGING YOUTH The Center for Juvenile Integration at San Dimas provides advice on public health issues and addiction awareness programs. In 2010, talks on prevention addiction were taught in local schools and a variety of cultural, sporting and social events were held. SUPPORTING LOCAL ECOMONIC DEVELOPMENT By encouraging the development of alternate sources of income, we support strategic local business initiatives that strengthen local supply chains and increase entrepreneurial opportunities. EMPOWERING WOMEN In October 2010, Primero partnered with the Ministry of Environment and Natural Resources (Secretaría de Medio Ambiente y Recursos Naturales) to deliver skills development training to 40 women entrepreneurs to create eco-friendly handicrafts using recycled plastic bottles and bags. 16 Sustainability Report 2010
  • 19. CONTACT US Eduardo Luna Executive Vice President eduardo.luna@primerominas.com Martin Aguilar Mine General Manager martin.aguilar@primerominas.com Marco Navarro Safety Superintendent of the Mine marco.navarro@primerominas.com