Hellas Gold Sustainability Development
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CREATING VALUE SUSTAINABLE DEVELOPMENT REPORT 2015 CONTENTS 2015 Highlights 04 Message from the Vice-President and Managing Director 06 About this report 07 01. OUR COMPANY 08 History 09 Profile 10 Kassandra Mines Organizational Chart 16 Supply Chain 17 Materiality Analysis 18 Participations and Distinctions 25 02. PERMITTING AND 26 ECONOMIC PERFORMANCE Permitting and Regulatory Compliance 27 Economic Performance 32 03. Creating VALUE 34 FOR OUR EMPLoyeeS Employment 35 Health and Safety 42 04. CREATING VALUE 46 FOR THE LOCAL COMMUNITIES Social License to Operate 47 05. CREATING VALUE 56 BY RESTORING THE ENVIRONMENT Environmental Compliance 57 Solid and Liquid Waste 61 Land Use and Reclamation 65 GRI G4 Content Index 72 Greek Sustainability Code 74 Sustainable Development Report 2015 / Hellas Gold 2015 HIGHLIGHTS* 2,152 employees and contractors at Hellas Gold as at 31 December 2015 ~5,000 estimated direct and indirect jobs when the project is in full swing 16,396 ounces of gold produced from tailings retreatment 35,468 tons of zinc concentrate sold 14,509 tons of lead-silver concentrate sold 4 01. OUR COMPANY Sustainable Development Report 2015 / Hellas Gold €20.5 million spent on local suppliers (13% of Hellas Gold’s total expenditure) within the Aristotelis Municipality 5,522 €2.4 million hours invested in employees and contractors invested in initiatives that support Health and Safety training local communities 87% €10.6 million of Hellas Gold employees hired investment in the area during from local communities 2013-2015 83% of suppliers are Greek companies 29% 16% of site management employed of suppliers are Greek companies from the Aristotelis Municipality from the Aristotelis Municipality * for reasons of consistency with the respective data published by Eldorado Gold, the average euro-dollar exchange rate of the year has been used 01. OUR COMPANY 5 Sustainable Development Report 2015 / Hellas Gold MESSAGE FROM the Vice-President AND MANAGING Director G4-1 At Hellas Gold we recognize that corporate responsibility The economic development of the region plays an is a continuous effort that can enable significant devel- important role for the future and long-term success of opmental opportunities and benefits to our local commu- our employees, the majority of whom originate and per- nities, Greek society and the economy. It is an operating manently reside within the Aristotelis Municipality. Young philosophy that must be actively and carefully managed engineers and scientists are now pursuing successful to limit our social and environmental impacts, while main- careers close to their homes and families, something not taining consistent growth of our projects. possible before the development of our mines and projects. Beyond our own employees, the indirect employment The three pillars forming the foundation of opportunities generated for local contractors and suppli- ers are significant, with petrol stations, catering services, Hellas Gold’s corporate responsibility strategy hotels and others all benefiting from our investment. We are: a) environmental protection, b) support have seen the creation of new jobs and local companies to local communities and the economy, and related to our mining activities. These facilitate the continu- c) upholding the interests of our employees. ous growth and prosperity of local industry and the economy. In the environmental realm, we have developed one of the It is important to highlight the numerous initiatives and most integrated and comprehensive environmental mon- investments we make to support and enhance the quality itoring systems in Europe, measuring numerous parame- of life for residents of the Mademohoria region. These ters across all our projects, including soil, water and air include improving local roads and infrastructure, and quality, greenhouse gas emissions, noise and vibration. providing support to the medical center of Palaiohori. This monitoring system enables Hellas Gold to take an Additionally, during the summer of 2015 we invited 350 integrated approach towards environmental management students from the Aristotelis Municipality to participate and protection. in the Hellas Gold summer internships program, providing them with invaluable professional work experience prior to Our commitment to environmental protection is demon- graduating and entering the Greek labor market. Annually, strated by the reclamation of old tailings at Olympiada; one we also provide awards and cash prizes to newly admitted of the largest environmental reclamation projects ever un- university students from the Aristotelis Municipality to dertaken in Greece. This is testament to the environmental further support their studies. awareness and responsibility that characterizes Hellas Gold. Moreover, we are truly proud of the Olympiada plant Ensuring our people return home safely every day is para- nursery, which began as a value-add initiative for the mount, and we are committed to the highest Health and reclaimed tailings area, and evolved into one of the largest Safety standards. All European Union (EU) regulations plant nurseries in Greece. It is an example of a leading, are meticulously adhered to and our Occupational Health alternative development practice for the area, which sup- and Safety Management System is certified under OHSAS ports the reclamation and restoration of old mining areas. 18001. We improved our safety performance and had no fatalities in 2015, but I am deeply saddened to report the To encourage broader economic development of the tragic death of Mr. Konstantinos Strounis, an experienced Aristotelis Municipality, we have prioritized the repair underground miner at our Stratoni mine, in February of local infrastructure and monuments with the aim of 2016. A mines inspector examined the scene immediately increasing tourism in the region. Concurrently, in close following the accident and found no substandard operat- cooperation with the Mount Athos Area Organization, we ing conditions. For Hellas Gold, safety remains the highest have actively contributed towards advertising and promo- priority for all its operations. For this reason, the Company ting the region as an area of international interest at tour- has committed to reviewing safety procedures, while our ism events in Greece and abroad. internal investigation has resulted in findings that we have acted upon immediately in order to reduce the risk of a similar accident occurring again. We also provided support to co-workers, friends and immediate family members of the deceased. 6 01. OUR COMPANY Sustainable Development Report 2015 / Hellas Gold ABOUT THIS REPORT G4-22 G4-28 G4-29 G4-30 G4-31 G4-32 G4-33 Our commitment to corporate responsibility continues to This is Hellas Gold’s third annual Sustainable deliver measurable and tangible results, and we are Development Report (the Report) and covers humbled that our ongoing efforts have been recognized. For the second consecutive year, the Corporate Respon- activities, data and performance for the period sibility Institute commended Hellas Gold’s social and 01.01.2015 to 31.12.2015, unless stated other- environmental performance, and awarded the Company wise in specific sections. It covers Hellas Gold’s with the 2016 “Silver Award”. The award recognizes our operational, economic, environmental, and social sustainability initiatives and performance in Greece. We look forward to building on those results through 2016 performance in Greece for all operating units. and beyond. Our previous report was published in October 2015. In 2016 and beyond, Hellas Gold is faced with several opportunities and challenges to continue advancing its The objective of this Report is to provide accurate and sustainable development. This includes finalizing and complete information to our stakeholders on the Company’s publishing our comprehensive environmental monitoring sustainable development and its impacts on the Greek system across all our operations, which will be made economy, society, and environment. publically available and enable our communities and stakeholders to monitor our performance in real-time. Various Company departments have been involved in the We are looking to continue our reclamation and rehabil- development of this Report, by providing information and itation of old tailings at Olympiada, moving forward with data on their performance throughout 2015. Where appli- adding topsoil and planting new trees. We also aim to cable, restatements of prior-year data have been high- complete our renovation of the Olympiada flotation plant lighted throughout the Report. Restatements occurred as by March 2017; a critical step in moving the site closer a result of updated or more accurate data becoming avail- to commercial production. Finally, continuing with our able after our previous 2014 Corporate Responsibility construction and development activities, we look forward Report publication date. to achieving production at Skouries during 2019. This report has been developed with the support of the Our investment plans are significantly contributing to Climate Change and Sustainability Services Practice of the development of the region, and reinforce Hellas Gold’s commitment to the region, our people and our Ernst & Young (ΕΥ) in Greece and prepared in accordance country. Hellas Gold is part of Greece. We produce and with the “Core” requirements of the Global Reporting Initia- create value for our country, and will continue to do so tive (GRI) fourth-generation (G4) Sustainability