DEVELOPMENT
COMMITMENT SUSTAINABILITY REPORT 2018 Modern Mining
OPPORTUNITIES Contents Message from the CEO Relationship With Our Environment and Country Manager Stakeholders Regional Development About the Report Financial Performance and Institutional Strengthening About us High Operational Standards Appendix Corporate Governance Our People GRI Table Our Sustainability (Global Reporting Roadmap Community and Regional Initiative) Development Disclaimers
POINT OF CONTACT (GRI 102-53)
Modern Mining Headquarters Colombia Office Investor Relations Suggestions and 155 Wellington Street West, Suite 2920 Calle 7 n.o 39-215, of. 1208 [email protected] concerns related to this report Toronto, ON M5V 3H1 El Poblado, Medellín (+1) 416 583 5610 [email protected] Canada Colombia (+1) 877 273 8228 (Toll free) (+1) 416 583 5610 (+57) 4 3121026 Queries can also be sent via postal mail to our (+1) 877 273 8228 (toll-free) Medellin or Toronto offices, or can be delivered directly to our community relations staff at our Buriticá Wellness Center.
SUSTAINABILITY REPORT 3 2018
Message from the CEO and Country Manager Modern Mining, A Partner for Regional Development (GRI (Global Reporting Initiative)102-14) About the Report Safety: Our 2018 Sustainability Report details the About Us Improved by Company’s performance—both the positives and negatives—and outlines our efforts to improve Corporate Governance both in construction of the first modern large- 55 % scale gold mine in Colombia and as a member of Our Sustainability in terms of Total Recordable the communities surrounding our projects. Roadmap Injury Frequency Rate (TRIFR) The slogan of our Company is “Modern Mining” (“Mineria Moderna”). For our Company, “Modern” Relationship With includes more than the state-of-the-art technology Our Stakeholders Equality: utilized in our mine. It also refers to our actions “outside the mine gate”, which involve responsible Financial Performance mine development and meeting society’s increasing
23 % expectations for natural resource development High Operational of our direct employees are Standards and operation. We embrace all of those impacted women by the project as stakeholders, neighbours, valued Our People community members and friends and we are Knowledge Transfer: doing our best to respond to their expectations. Community and The first We are unwavering in our aspiration to make Regional Development Ari Sussman, CEO, Continental Gold positive contributions towards issues affecting Colombia, including water quality, economic Environment 38 women to graduate inequality and gender neutrality in the work place. with an Underground Mining Modern Mining is the objective of our Regional Development ransparency is a guiding Corporate Sustainability Roadmap that contains an and Institutional Career in Colombia principle that not only shapes implementation strategy based on five pillars: High Strengthening our values but is fundamental Operational Standards; Our People; Community Regional Development: in our approach to the and Regional Development; Environment; and Appendix responsible development Relationship and Institutional Strengthening. Our GRI Table T of our Buriticá project in organization firmly adheres to the concept of direct Colombia. We, at Continental 421 “Modern Mining”, as it is our ticket to guarantee beneficiaries and 1,653 Disclaimers Gold, strive for transparency our current and future success. This is why at that has no limitations and covers all aspects indirect beneficiaries from Continental Gold sustainability touches every of our performance, whether financial, social the Siembra Futuro program. aspect of our operation. Back to table of contents or environmental.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 4 2018
Message from the CEO and Country Manager
About the Report
About Us
Corporate Governance Colombia Our Sustainability Cañasgordas Buriticá Roadmap Health and Safety Performance ANTIOQUIA Giraldo Relationship With Safety is the first and foremost consideration Our Stakeholders Santa Fe de Antioquia in our daily routine and we are continuously striving to improve our safety performance. Financial Performance Our 2018 Total Recordable Injury Frequency High Operational Rate (TRIFR) improved materially over 2017 Gender Equality MEDELLÍN Standards as we added additional key personnel to the We provide equal employment opportunities safety division of the Company and mandated and promote diversity in the workplace. At Our People much improved safety training and risk the end of 2018, we had 229 women working recognition programs. under direct contract which represented Community and approximately 23% of our workforce (we Regional Development ended the year working with 506 women, Protection to Individuals including contractors). We are proud to lead Environment Despite our excellent progress in safety, we initiatives that encourage the participation were immensely saddened by fatalities from of women in the mining sector. In 2018, 38 Regional Development criminal acts that took place in 2018. Our women graduated from the co-sponsored and Institutional in-depth investigations into the incidents program between the Company and SENA, in Strengthening resulted in improved measures being Underground Mining Equipment Operation Commitment to Collective Change”—positioning implemented to help prevent reoccurrences, and Maintenance, the first in Colombia with the message that “women are debunking myths in Appendix including the overhaul of our security division. these technical skills. mining”. Other initiatives to promote participation GRI Table We are confident in our revamped Further, we strive to empower women by of women in the mining sector included providing security team and plan, but will always be promoting their participation in events and educational and economic alternatives to Disclaimers reminded that we must remain vigilant in our forums oriented towards gender equality contribute to improving their quality of life. In efforts to ensure that every person working —such as the “IV Relianz Mining Forum 2019, we will continue with these initiatives to help for Continental Gold returns home each day WIN - Now, Let’s Talk About Equity” and strengthen gender equity in our Company and in Back to table of contents safe and healthy. “Semana Sostenible Forum - From Corporate the territory.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 5 2018
Message from the CEO Our alliances seek to create value for and Country Manager stakeholders and contribute to the Company’s About the Report Sustainability Model with initiatives
About Us that generate local employment, productive
Corporate Governance supply chain linkages and economic diversification through agriculture. Our Sustainability A clear road ahead Roadmap Modern Mining requires diligence and strong teamwork. We are fortunate to have highly- Relationship With committed and engaged employees at Continental Our Stakeholders Strategic Alliances formalized the Coffee Alliance to increase profitability Gold who look out for one another and our At Continental Gold, we foster participation of public for coffee growers and improve the quality of life of neighbours and are proud of collaborative Financial Performance and private entities in our social programs. We coffee families in five municipalities of the Region. successes. High Operational believe in partnerships as a key element to contribute The Productive Supply Chain Linkages Program Ethics, integrity and trust are the foundation of Standards to regional development by aligning our common (known as “PEP” by its Spanish acronym) is a joint our Company. As a team, we strive for excellence interests and joining forces with the community, effort among the Inter-american Development Bank in our execution while maintaining an openness Our People government, private companies and social sector. Our (IDB), the Chamber of Commerce of Medellin and towards continuous improvement without alliances seek to create value for stakeholders and Interactuar Corporation. It provides business support compromising the environment, the well-being of Community and contribute to the Company’s Sustainability Model with to small local entrepreneurs, to integrate them into our communities and safety. Regional Development initiatives that generate local employment, productive the supply chain of the Company, our contractors and On behalf of our Board of Directors, you have supply chain linkages and economic diversification other projects in the region. In 2018, we benefited 44 our commitment that we will continue our hard Environment through agriculture. Our program “Siembra Futuro” local companies, 52% of which are run by women. work and accept no compromises in creating long- (Future Harvest) has the support of strategic local We are a strategic partner of Plan Buriticá, a social lasting value for Continental Gold stakeholders in Regional Development and regional partners such as Comfenalco and TECOC dialogue and development initiative led by the local Colombia and internationally. and Institutional (Western Catholic Technological Corporation), which government. Plan Buriticá promotes coordination, Strengthening provide technical assistance for the Siembra Futuro information sharing and consensus building between program. In 2018, we consolidated 322 agricultural public and private actors around four fundamental Ari Sussman Appendix productive units with 421 direct and 1,653 indirect areas: Rule of Law, Social and Welfare Programs, CEO, Continental Gold GRI Table beneficiaries—validation that co-existence between Institutional Strengthening and Local Economic agricultural and mining sectors in the territory is Development. Disclaimers indeed possible. We believe that our local, national and international Also in 2018, with the participation of the National partnerships maximize the benefits of the Buriticá Federation of Coffee Growers, Western Antioquia Project and help promote the collective construction Back to table of contents Coffee Growers Cooperative and local town halls, we of sustainable ecosystems in the territory.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 6 2018
Message from the CEO and Country Manager We’ve Made Progress on All Fronts (GRI 102-14) About the Report eading a company like We are fortunate to have a team full of values, About Us Continental Gold doesn’t just knowledge and technical skills; which has allowed us represent an opportunity to to consolidate the Company’s goals and maximize Corporate Governance contribute to the promotion achievements. In 2018 we generated many new jobs of modern mining in Colombia, and increased our workforce by 1,658 additional Our Sustainability L it’s also an opportunity to fulfill employees (counting direct hires and contractors). Roadmap our higher purpose: “Improving We ended the year with 1,075 direct employees people’s lives and adding value (including 146 apprentices) and 2,217 contractors, for Relationship With via sustainable mining.” This requires maximum focus a total workforce of 3,292. Our Stakeholders on efficiency and sustainable production, in order to Our commitment to promoting the quality promote territorial development for this land that has of employees’ working lives, and their personal Financial Performance embraced us. wellbeing, helped us obtain re-certification as a High Operational This report reflects the progress, achievements Family-Responsible Company (FRC or EFR in Spanish). Standards and challenges experienced in the second year of We also implemented new benefits and wellness construction for the Buriticá Project, where the strategies. One such benefit was the creation of the Our People Company has gone through several difficult moments Family Wellness Center, in Buriticá, which is a space and situations, that have generated multiple learning for employees and their families to enjoy. Community and moments and forced us to rethink our corporate In order to strengthen our workforce, promote Regional Development Luis Germán Meneses, Country Manager. strategy. Today, we prioritize maintaining a solid the holistic development of our employees, and strive social license, maximizing positive impacts for the for continuous improvement, we’ve established a Environment region, communities and the environment, as well as Corporate Skills Model and conduct performance identifying and responsibly managing any impacts assessments to more than 96 % of our management Regional Development generated by the Project. and administrative staff. and Institutional Safety is one of our core values and we take Strengthening it seriously. Our Occupational Health and Safety Management System (SG-SST) received re-certification Appendix 2018 was a year where we implemented under the OHSAS 18001: 2007 Standard. We also GRI Table new benefits and wellness strategies. updated our prevention policies regarding alcohol, tobacco and drug usage, as well as our road safety Disclaimers One such benefit was the creation of the Family policies. This was done in order to strength our culture Wellness Center, in Buriticá, which is a space of self-care and to improve health, safety and well- being conditions for all our stakeholders, including Back to table of contents for employees and their families to enjoy. workers, contractors and special interest groups.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 7 2018
This year, however, we faced one of the Knowing how important it is for communities Message from the CEO Employment: and Country Manager most challenging moments in the history of to take care of their water supply, and as part Continental Gold. After two shameless attacks of our environmental impact management About the Report by armed criminal groups, we lost four-valued 1,658 new jobs, including strategy, we installed equipment that CNL employees. These unfortunate events led us direct hires and contractors. improves the accuracy and reliability of the About Us to become closer to one another and to support water quality data collected, to help improve and accompany the families of these employees, decision making. In 2018, we monitored Corporate Governance which strengthened us as a Company. We decided 249 specific points, in 63 focal areas, fully Environment: to honor their memory and demonstrate how complying with the monitoring and follow-up Our Sustainability resilient we are as an organization by continuing plan requirements established in our Roadmap to generate legal jobs, improve the quality of environmental license. families benefit from the life for communities and help build peace in our 60 The construction of our state-of-the-art Relationship With areas of influence. Payment for Environmental Services water treatment plant (WTP) is another Our Stakeholders We consolidated the environmental program in Buriticá. major accomplishment. It uses cutting- management portion of our Sustainability edge technology and cost over USD 44 Financial Performance Model framework. We strengthened our Online million. The WTP was designed based on water monitoring points High Operational Environmental Indicators System, our system 249 the characteristics of the water present in Standards for auditing contractors on Sustainability in 63 focal areas. our mining project and is compliant with issues and implemented measures for the safe Colombian environmental regulations. Our People handling of cyanide. We received ISO 14001: 2018 was a busy year for the construction 2015 re-certification for our Environmental Local Purchases: of our Project, with challenges in managing Community and Management System. Over any possible impacts and risks generated by Regional Development Regarding biodiversity, we continue with our an increased flow of people and machinery. habitat restoration and protection of endangered The Community Health and Safety Plan that Environment species initiatives to protect the wildlife present in we developed allowed us to continue the our area of influence, such as the ocelot (Leopardus COP 11,526 construction process without any significant Billion spent in our area of influence. Regional Development tigrinus). We also strengthened the Payment for setbacks. and Institutional Environmental Services (PES) program, which Strengthening encourages families to preserve the ecosystems in the region. We are currently protecting a total Appendix of 2,539 hectares, and this year we added 30 new We demonstrated how resilient we are as an GRI Table families, for a total of 60 families that participate in the program throughout Buriticá. Organization by generating legal jobs, improving Disclaimers the quality of life for communities, and helping to build peace in our areas of influence. Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 8 2018
Message from the CEO and Country Manager Every year, we strengthen our programs aimed Building relationships based on trust, with every at maximizing social and economic benefits, About the Report community in our area of influence, is key to the success of the Buriticá Project and is fundamental including productive supply chain linkages, About Us for the sustainability of the territory. Every year, we strengthen our programs aimed at maximizing support for agriculture, and increased access Corporate Governance social and economic benefits, to generate local to educational opportunities. employment, productive supply chain linkages, Our Sustainability support for agriculture, and increased access to Roadmap educational opportunities. We are pleased to share the first results of Relationship With our training strategy and partnership with SENA Our Stakeholders (Colombia’s Public Technical and Vocational We continue to encourage the agricultural vocation Training College), which in 2018, graduated 99 and farming history of the region via programs such as Financial Performance apprentices from our Project’s area of influence, Siembra Futuro (Future Harvest) and continue to advance High Operational in careers related to underground mining. This this initiative, together with allies at the local, national and Standards included the first 38 women in Colombia to ever international levels. These partnerships are fundamental graduate with these skills and the opening of two for favorable socio-economic development in the region. Our People new technical training programs –Plant Operator We are proud to demonstrate how effective public-private and Industrial Maintenance Technician– and the partnerships could be in generating local development. Community and creation of the first Mineral Processing Technical 2019 will be a year full of challenges. We must strengthen Regional Development Program, which was taken by 55 young people our management systems and our workforce, to prepare from the region and 22 employees. Not only the Company for the transition into the operation Environment do these efforts contribute to the development phase of the Project. Consolidating spaces for dialogue, of our Company, but they also help with the exchange and cooperation between the Company and Regional Development progress and legality of Western Antioquia. citizens, as well as public and private institutions we work and Institutional In 2018 we promoted local purchases of with, is paramount. We believe that close dialogue and Strengthening goods or services by working directly with relationships of trust with our stakeholders are essential 226 suppliers from Western Antioquia. Local so that our Company, with its modern mining proposal, Appendix purchases increased to over COP 11.526 Billion can successfully contribute to the construction of a more GRI Table (USD 3,898,679) on items such as food, textiles, sustainable and equitable territory. accommodation, construction and civil works, Disclaimers among other things. Luis Germán Meneses Country Manager Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 9 2018
Continental Gold Message from the CEO employees perform and Country Manager underground work using About all necessary safety gear and personal protection. About the Report the Report elements. About Us (GRI 102-32, 102-45, 102-50, 102-51, 102-52, 102-54) At Continental Gold, we believe in building long-term Corporate Governance relationships with our stakeholders based on trust and transparency. Our Sustainability Therefore, every year, we present a Sustainability Roadmap Report, where we showcase our performance and operating results. This reveals how committed we are Relationship With as a company, with sustainability, our communities, Our Stakeholders and the region that has embraced us. Our fourth Sustainability Report presents the Financial Performance achievements and challenges faced throughout 2018, High Operational on issues such as health and safety, environment, Standards community relations, gender equality, human resources, work practices, partnerships, corporate Our People governance, among others. This report, similar to the one presented for 2017, Community and has been prepared following GRI standards, using the Regional Development Core option, and considering Mining and Metals Sector Supplement guidelines. It covers Continental Gold´s global mining industry and those related to international We also use the following as references: Environment operations in Western Antioquia, including our flagship standards, for the most broadly-accepted socio- »» Corporate Social Responsibility (CSR) Buriticá Project, a high-grade gold mine. It also includes environmentally responsible behavior: Implementation Guide for Canadian Business. Regional Development key aspects of prospecting and exploration activities »» International Finance Corporation (IFC)’s »» United Nation’s Sustainable Development Goals and Institutional carried out by subsidiaries through which our Company Environmental and Social Performance Standards. (SDGs). Strengthening operates: CGL Gran Buriticá S.A.S., CGL Berlín S.A.S., »» International Council on Mining and Metals (ICMM)’s This report was approved by the Board of Directors, CGL Dojura S.A.S., Continental Gold Limited’s Colombia Sustainability Framework. the Chief E xecu ti ve O fficer (CEO) and Countr y Manager. Appendix Branch, CGL Dominical S.A.S., Minerales Suramérica »» Voluntary Principles on Security and Human Rights. Monetary units are reported in US Dollars (USD) GRI Table S.A.S., Minerales Suramérica II S.A.S., Andina Sur II »» The Organisation for Economic Co-operation and and Colombian Pesos (COP). S.A.S. and Costa SOM. Development (OECD) Due Diligence Guidance for Disclaimers The content reflects material aspects for the Responsible Mineral Supply Chains in Conflict- Company and its stakeholders, including the main Affected and High-Risk Areas. issues addressed during “Dialogues with Continental” »» ISO and MSHA/OSHA standards that apply to our Back to table of contents in Buriticá, as well as items that are relevant to the operations.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 10 2018
Message from the CEO and Country Manager Buriticá Project About the Report
About Us NISP (PINE) GREAT GEOLOGICAL POTENTIAL Corporate Governance National Interest Strategic Project Our Sustainability Roadmap
Relationship With Our Stakeholders
Financial Performance
High Operational More than More than Standards Our People USD 512m USD 1b 3,000 3.7m 3,000 Community and Construction Taxes and Direct and Ounces of Tons/day Regional Development Investment royalties indirect jobs gold reserves by 2022 Environment
Regional Development and Institutional Strengthening 3 YEARS OF CONSTRUCTION 14 YEARS OF OPERATION Appendix
GRI Table
Disclaimers We are currently building the new mine and plant, and During 2018, we produced 1,940 ounces of gold in our intend to reach a processing capacity of 3,000 tons of small-scale Yaraguá mine, which was exported to the Back to table of contents ore per day -by the third full operating year. United States.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 11 2018
Message from the CEO 2017 2018 and Country Manager MINE TOTAL PROJECT MINE & MILL About the Report
About Us 14.4 % Meters lateral 46.5 % total physical total physical developments Corporate Governance progress in progress at the Meters lateral January, 2018 end of 2018 Our Sustainability 7,569 meters development Roadmap 1,808 meters Waste material Relationship With removed Our Stakeholders Total gold 393,394 ore production Financial Performance PROCESSING 10,617 tonnes High Operational Tonnes ground / milled Tonnes ground / milled Standards tonnes Total gold ore production 8,817 6,709 Our People 6,273 tonnes Gold ore grade Gold ore grade Community and Regional Development 18.8 g/t 10.1 g/t
Environment FOREIGN DIRECT Gold recovered Gold recovered INVESTMENT RECEIVED Regional Development 4,790 ounces 1,940 ounces and Institutional Strengthening Silver recovered Silver recovered USD 99,470,899 COP 295,852,978,824 Appendix 5,834 ounces 4,240 ounces
GRI Table Gold recovery Gold recovery USD 254,632,000 Disclaimers 89.9 % 89.2 % COP 762,153,550,400
The average exchange rate used in 2017 and also throughout that year’s report was USD 1 = COP 2,905. The average exchange rate used in 2018 and also within this report was USD 1 = COP 2,956.43. However, the exchange rate used for 2017, for the capital presented here, is different (USD 1 = COP 2,974), because the additional investment However, the exchange rate used for the capital presented here is different (USD 1 = COP 2,993.16), because the additional investment was Back to table of contents was received in dollars and negotiated at the exchange rate for the day of the transaction, and thus it was recorded by accounting at this rate. received in dollars and negotiated at the exchange rate for the day of the transaction, and thus it was recorded by accounting at this rate.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 12 2018
Message from the CEO 2017 2018 and Country Manager TAXES AND ROYALTIES INVESTMENT About the Report IN THE USD 1,482,677 USD 2,845,890 COMMUNITY COP 4,307,177,069 COP 8,413,674,335 About Us Taxes Taxes
Corporate Governance USD 3,551,569 USD 751,365 NET SALES COP Our Sustainability 10,317,307,000 COP 2,221,358,488 Roadmap Royalties USD 6,700,000 USD 2,587,386 Royalties COP 19,463,500,000 COP 7,649,424.579 Relationship With USD 198,620 USD 95,552 Our Stakeholders COP 282,493,396 COP 576,991,000 SUPPLIERS PURCHASES Financial Performance Total Purchases Total Purchases High Operational Standards 1,385 USD 92,634,300 USD 195,822,373 national Our People suppliers COP 269,102,641,500 COP 578,935,137,110 International Purchases International Purchases Community and 247 Regional Development local USD 38,006,480 USD 53,868,555 suppliers Environment COP 110,408,824,400 COP 159,258,612,845 National Purchases National Purchases Regional Development and Institutional EMPLOYEES USD 53,023,695 USD 141,945,931 Strengthening 1,341 suppliers COP 154,033,833,975 COP 419,650,524,265 Appendix 705 1,075 226 Local Purchases (area of influence) Local Purchases (area of influence) direct employees direct employees local GRI Table USD 1,604,126 USD 3,898,679 929 2,217 suppliers Disclaimers indirect employees indirect employees COP 4,659,986,030 COP 11,526,170,352
The average exchange rate used in 2017 and also throughout that year’s report was USD 1 = COP 2,905. The average exchange rate used in 2018 and also within this report was USD 1 = COP 2,956.43. However, the exchange rate used for 2017, for the capital presented here, is different (USD 1 = COP 2,974), because the additional investment was However, the exchange rate used for the capital presented here is different (USD 1 = COP 2,993.16), because the additional investment was Back to table of contents received in dollars and negotiated at the exchange rate for the day of the transaction, and thus it was recorded by accounting at this rate. received in dollars and negotiated at the exchange rate for the day of the transaction, and thus it was recorded by accounting at this rate.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 13 2018
Message from the CEO and Country Manager About us (GRI 102-1 a 102-9) About the Report Continental Gold Inc. is a Canadian mining company dedicated Global Estimate of Mineral Reserves * to the exploration and exploitation of high-grade gold and Grade Metal About Us precious metals in Colombia. Continental Gold is listed on the Tonnage Gold Silver Gold Silver Toronto Stock Exchange (TSX) under the ticker symbol “CNL” Category (M) (g/t) (g/t) (Moz) (Moz) Corporate Governance and trades on the OTCQX® International, under the symbol Measured** 0.68 21.1 60 0.46 1.3 “CGOOF”. In Colombia, we operate via the Colombia Branch, of Our Sustainability our subsidiary, Continental Gold Limited. Inferred*** 13.04 7.8 22.5 3.25 9.4 Roadmap In 2017 we began the development of our most important Total P&P 13.72 8.4 24.3 3.71 10.7 project: the construction of the first large-scale underground * Based on a cut-off grade of 3.8 g/t for Yaraguá and 4.0 g/t for Veta Sur, a gold price at USD 950 Relationship With gold mine in Colombia, located in the municipality of Buriticá, 75 per ounce and a USD / COP exchange rate of 2,850. Rounding may produce minor variations. Our Stakeholders In the table, M stands for millions. kilometers northwest of Medellín, the capital of the Antioquia ** Mineral resource volume is calculated using results obtained from drilling and channel Department. The direct area of influence of the Buriticá Project sampling. Studies allow us to mathematically establish the geometry of the reserves, their Financial Performance includes the veredas (rural districts) of Los Asientos, Mogotes, volume, and the mineral grade, giving us certainty about their continuity. *** Volume of mineral resource is calculated using less comprehensive information when High Operational Higabra, Murrapal, and Alto del Obispo, plus the corregimientos compared to measured reserves. The geometry, volume of the mineral resource, and the (smallest administrative units) of El Naranjo and Angelina, and grade/purity have been estimated using preliminary studies, so the risk does exist in the Standards estimation. For more information, see Company technical report entitled “NI 43-101 Buriticá Buriticá´s Urban Center. Mineral Resource 2019-01, Antioquia, Colombia” dated March 18, 2019 with an effective date We anticipate that commercial production for the Buriticá of January 30, 2019, led by independent consultants Ivor Jones Pty Ltd, which includes the Our People mineral reserve estimate as at February 24, 2016. Project will begin in 2020. The Feasibility Study projects that Community and the mine will operate continuously for 14 years and produce Regional Development an average of 253,000 ounces of gold per year and 282,000 ounces per year during the first five years; however we expect Environment that with additional exploration sucess, the mine will operate much longer than this. Regional Development We are currently building the new mine and processing plant, and Institutional and intend on reaching a processing capacity of 3,000 tons of Strengthening ore per day by the third full operativing year. Simultaneously, In 2017, Newmont Mining Corporation (now a secured credit facility of up to USD 275 million we continue to operate the small-scale, existing Yaraguá mine, Newmont Goldcorp Corporation), one of the largest (COP 798.875 Billion), and concurrent with Appendix which produced 1,940 ounces of gold in 2018, all exported to gold producers in the world, gave a vote of confidence Newmont’s investment in the project, Red Kite GRI Table the United States. to Colombia and our project by investing USD 109 Mine Finance invested an additional USD 25 The number of ounces produced in 2018 decreased for two million (COP 316,645 Billion) in our Company, in million (COP 72.625 Billion) for a 4.6% stake in Disclaimers main reasons: we processed 24% less ore due to a change in exchange for 19.9 % of Our Company. the Company. For 2017, the loan disbursement our operating strategy (limited capacity in existing the tailing Prior to Newmont’s investment, Red amounted to a total of USD 100 million and the dam), and we processed ore with 46% less gold content (grade) Kite Mine Finance, an investment fund that remainder (USD 175 million) was disbursed in Back to table of contents due to our focus on mechanized development. specializes in mining, provided Continental Gold 2018.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 14 2018
Our Company has several subsidiaries in Colombia, including Message from the CEO CGL Gran Buriticá S.A.S. and CGL Berlin S.A.S. We anticipate that commercial and Country Manager The direct area of influence for the exploration activities production for the Buriticá About the Report carried out by CGL Gran Buriticá S.A.S. is also in Western Antioquia and includes the municipalities of Buriticá, Project will begin in 2020 About Us Cañasgordas, Sabanalarga, Giraldo, Uramita, and Liborina. and that the mine will initially Exploration activities by CGL Berlin S.A.S. are in Northern Corporate Governance Antioquia and include the municipalities of Briceño, San Andrés have a 14-year lifespan. de Cuerquia, Toledo, and Yarumal. Our Sustainability Roadmap
Relationship With Our Stakeholders MUNICIPALITIES AND VEREDAS (RURAL DISTRICTS) Financial Performance IN THE AREA OF INFLUENCE OF GRAN BURITICÁ SAS AND BERLIN SAS
High Operational Standards Buriticá Project Gran Buriticá Project Berlin Project Our People
Community and Ituango
Regional Development Mogotes Llano Grande Briceño Valdivia Environment
BURITICÁ Bubara Mogotes Regional Development Higabra Pajarito and Institutional Siara Strengthening Los Asientos Toledo Los Asientos Higabra Appendix Los Arados La Angelina
Murrapal El Naranjo GRI Table El Naranjo San Andrés Pinguro de Cuerquia Yarumal Alto del Obispo
Disclaimers N Municipality of Buriticá Municipal Veredas (rural districts)
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CONTINENTAL GOLD | Modern Mining Corporate Governance
1,390 suppliers The best plan is doing things right were informed about We create sustainable value for the business and special interest groups by doing things right. Our actions reflect our anti-corruption our commitment to our core values: Respect, Integrity and Ethics, Transparency, Safety, and Social Commitment. policies and procedures. SUSTAINABILITY REPORT 16 2018
(GRI 103-1, 103-2, 103-3, 102-12, 102-13, 102-17, 102-18, 102-20, Message from the CEO 102-22, 102-24, 102-25, 102-26, 102-29, 102-30, 102-31, 405-1) and Country Manager
About the Report
About Us
Corporate Governance uilding trusting relationships that generate Our Sustainability value for all stakeholders is an essential Roadmap pillar of our Sustainability Model. That is why we have such a highly committed and Relationship With qualified corporate management team, Our Stakeholders B that defines the direction of our Company and monitors the fulfillment of established Financial Performance goals and commitments. High Operational Our corporate management team is led by the Standards Board of Directors and its five committees (in 2018):
Our People Management Team at Continental Gold Colombia. Community and Not in the photo: VP of Regional Development Committee Functions Sustainability, Exploration Manager and Plan Health, Safety and Every quarter, this committee monitors the Company´s performance in Manager. Environment Environment Committee the following aspects related to our Sustainability Policy: environment, occupational health and safety, labor relations, social and community Regional Development Community and Government management, the security and Institutional Relations Committee of employees and assets, land, and support of small-scalemining. Strengthening Audit Committee Monitors financial, ethical, and anti-corruption matters. Appendix Corporate Governance, Supervises corporate management and human resource practices GRI Table Nominating, and Human for the Company. Resources Committee Disclaimers Reviews and monitors the execution of the Project, both at the surface Technical Committee and underground levels.
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CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 17 2018
Leon Teicher Dr. Kenneth G. Thomas Message from the CEO BOARD OF DIRECTORS Chairman of the Board, President, Ken Thomas & Associates Inc. and Country Manager Continental Gold Our Board of Directors is composed of 8 members, Independent: Yes About the Report individually elected yearly, and by a simple majority of Independent: Yes Seniority on the Board: 2012 votes. Seniority on the Board: 2013 Board Committees: • Corporate Governance, Nominating, Board Committees: About Us • Community and Government Relations and Human Resources Committee Composition of the Board: Committee (Chairman) • Health, Safety and Environment Committee Corporate Governance »» One Executive Director (13%). • Health, Safety and Environment Committee (Chairman) »» Seven non-executive directors (81%). Director positions or membership • Technical Committee (Chairman) in committees of other companies / Director positions or membership in Our Sustainability »» One woman director (13%). organizations: committees of other companies / Roadmap »» Seven independent directors (75%). • Cementos Argos S. A. (Bolsa de organizations: »» One non-independent directors (25%). Valores de Colombia) (Colombia • Cardinal Resources Limited (TSX) (Director). Relationship With »» Directors serve on the board for 4.4 years • Stock Exchange) (Director; member • Chairman of the Technical Committee Our Stakeholders of the Sustainability Committee). • Member and former President of the Canadian on average. • Andes University in Bogotá (member Institute of Mining, Metallurgy & Petroleum of the Board of Directors). (CIM). Financial Performance Other positions and commitments of the Board Experience: Experience: • Economic • Economic members. None of the members serve on more than High Operational • Environmental • Environmental Standards four other boards (not counting Continental Gold) for • Social publicly traded companies listed on a Stock Exchange. Our People
Community and Ari B. Sussman Martín Carrizosa Regional Development Executive Director, Partner, Philippi Prietocarrizosa Ferrero Continental Gold DU & Uría
Environment Independent: No Independent: Yes Seniority on the Board: 2010 Seniority on the Board: 2016 Regional Development Board Committees: Board Committees: and Institutional • Community and Government Relations • Community and Government Relations Strengthening Committee Committee • Health, Safety and Environment Committee Director positions or membership Roles and Mandates of the Board • Technical Committee in committees of other companies / Appendix Experience: organizations: »» Selecting and appointing members. • Economic • Scotiabank Colpatria (Director). GRI Table »» Setting procedures for conflicts of interest. • Environmental • LarraínVial Colombia (Director). »» Establishing objectives, values and business • Social • Andes University (Director) Experience: Disclaimers strategies. »» Identifying and overseeing general corporate risk • Economic • Social management as well as economic, environmental and social impacts. Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 18 2018
Message from the CEO and Country Manager Stephen Gottesfeld Dr. Claudia Jiménez Associations and Memberships Executive Vice-President Executive Director, About the Report and Chief Sustainability and External Jiménez & Asociados S.A.S. Colombia Affairs Officer, Newmont Goldcorp About Us Corporation Independent: Yes Colombian Mining Seniority on the Board: 2014 Association (ACM) Corporate Governance Independent: Yes Board Committees: Seniority on the Board: 2017 • Community and Government Colombo-Canadian Board Committees: Relations Committee Chamber of Commerce Our Sustainability • Audit Committee • Corporate Governance, Nominating Roadmap Director positions or membership and Human Resources Committee National Association in committees of other companies / Director positions or membership for Colombian Relationship With organizations: in committees of other companies / Industry (ANDI) Executive Vice-President, organizations: Our Stakeholders and Chief Sustainability and External • Empresas Públicas de Medellín Board of Directors of Affairs Officer, Newmont Goldcorp (EPM - Public Utility Energy Company) Proantioquia (foundation Corporation (New York Stock Exchange). (Director). Financial Performance for private sector Experience: • Pharmacielo Colombia Holdings S.A.S. development of Antioquia) High Operational • Economic (Director) • Environmental Experience: Colombian Reporting Standards • Social • Environmental • Social Process under the Our People Extractive Industries Transparency Initiative Community and Paul J. Murphy Christopher Sattler (EITI) Regional Development Corporate Director Corporate Director
Independent: Yes Independent: Yes Environment Seniority on the Board: 2010 Seniority on the Board: 2017 Canadá Board Committees: Board Committees: Regional Development • Audit Committee (Chairman) • Audit Committee Prospectors & Developers and Institutional • Corporate Governance, Nominating • Technical Committee Association of Canada´s Strengthening and Human Resources Committee • Corporate Governance, Nominating (PDAC) Director positions or membership and Human Resources Committee in committees of other companies / (Chairman) Canadian Institute of Appendix organizations: Experience: Mining, Metallurgy and • Alamos Gold Inc. (Toronto Stock • Economic Petroleum (CIM) GRI Table Exchange, TSX) (Chairman of the Board). • Environmental • Generation Mining Limited (Canadian Stock Exchange) (Director) Disclaimers Experience: • Economic • Environmental • Social Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 19 2018
STRATEGIC PLANNING, THE FIRST STEP Message from the CEO We want to highlight that in our efforts to »» Occupational Health & Safety This strategic planning exercise addresses the need to integrate and Country Manager consolidate our Corporate Strategy, during the last »» Environmental Compliance long-term corporate thinking, align efforts throughout the About the Report quarter of 2018, we deployed a systematic, holistic »» Construction of the Mining Project organization, implement a management control process and collaborative planning process, and defined »» Constructive community relations and synchronize budgeting processes, by defining corporate About Us seven (7) areas of strategic focus in 2019: »» Employee satisfaction management indicators (Key performance indicators - KPIs), and with a sense of belonging measurable and deliverable action plans for each of the areas. Corporate Governance »» Financial Management Continental Gold´s strategy is defined within the following »» Mineral Resources and Mining Potential strategic roadmap: Our Sustainability Roadmap Strategic Roadmap Relationship With Higher To improve lives and create value through sustainable mining Our Stakeholders Purpose Employee Areas of Occupational Environ- Constructive Resources Construction of Mine Satisfaction Financial Financial Performance Strategic Health and mental Community and Mining and Processing Plant and a Sense Results Focus Safety Management Relations Potential High Operational of Belonging Standards Strategic 1. Zero fatalities 1. Strict 1. Maintain the 1. Achieve 1. Consolidate our social 1. Have exceptional 1. Comply with 1. Ensure the Objectives compliance of construction of the mine’s license via Company leaders to guide the approved quality of 2. Decrease Our People Environmental the processing construction activities and by the organization in budget mineral serious Regulations plant on time and milestone building a constructive achieving its objectives production reportable and on budget objectives relationship with with proper Community and event injury 2. Strengthen authorities and 2. Attract, select, train preparation Regional Development rates our 2. Create the communities, thereby and motivate the ahead of Environmental necessary maximizing benefits employees that the commercial 3. Maintain a Management conditions for and contributing to the Company needs for production certification Environment System large-scale Company’s reputation the construction and under the competitive operation of the mine OHSAS 18001 3. Implement production Regional Development standard conservation 3. Have a highly qualified and Institutional and and successful support Strengthening biodiversity area, in close proximity programs to our people; have no labor disputes Appendix 4. Minor modification of the GRI Table environmental license to Disclaimers optimize operational efficiencies
Values Respect Integrity / Ethics Transparency Safety Social Commitment Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 20 2018
Message from the CEO and Country Manager
About the Report
About Us
Corporate Governance
Our Sustainability Roadmap
Relationship With Our Stakeholders Our focus is on strengthening the risk management culture Financial Performance in the Organization.
High Operational Standards ACHIEVEMENTS Our People RISK MANAGEMENT Strengthening the (GRI 102-15, 102-33, 102-34) culture of managing and monitoring risk. Community and We know how important it is to manage us to better visualize and administer risk Methodology of the Committee of Unifying operational Regional Development risk in a timely and adequate manner, for in each of the different areas and helps our Sponsoring Organizations of the Treadway and strategic risk matrices optimal development of the Buriticá Project risk management culture permeate different Commission (COSO). Therefore, based on and aligning them with our Environment and to have good relationships with all our levels of the Company. our business objectives, we identify risks corporate strategy. stakeholders. That’s why in 2018, we focused We have an Internal Audit and Risk at three different levels: strategic, tactical PRIORITIES Regional Development on strengthening our risk management Management team in charge of internal control and operational; and simultaneously in and Institutional Monitor mitigation plans culture at every level of the Organization. In and audits, corporate risk management, the three areas: sustainability, the Buriticá and develop an early Strengthening 2019, we will monitor our mitigation plans and implementation of our Anti-Corruption Policy, Project and exploration. An updated list of warning system for risk early warning system. and managing our Transparency Hotline. It is all material risks is presented quarterly to management Appendix Promote a corporate Within our corporate risk strategy, in also in charge of the compliance officer duties the Board of Directors. risk management GRI Table 2018, we were able to unify our assessment in Colombia. The Director of Internal Audit and culture and encourage criteria (probability and impact) for risk Risk Management reports administratively to different operational areas to take ownership Disclaimers events in all areas. We also implemented the Chief Financial Officer (CFO) and reports of their operational risk AVA RMS (Risk Management Software), operationally to the Chairman of the Audit management efforts. which is a technological tool for risk analysis, Committee of the Board of Directors. Reduce risk tolerance in Back to table of contents assessment and evaluation. It has allowed We apply the Business Risk Management all employees.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 21 2018
Main risks at the end of 2018 ETHICS AND INTEGRITY Message from the CEO »» Possible work-related accidents for employees (GRI 102-15, 205-1, 205-2, 205-3) and Country Manager and contractors, especially those in construction At Continental Gold, we believe special controls, such as donations About the Report and security. the best way to create sustained and gifts, contributions to ACHIEVEMENTS »» Gaps in managing social expectations regarding value for our business and our democracy (such as campaign Recognition was granted by the Secretary About Us short-term job creation. stakeholders is to do things right; contributions), contracts with for Transparency for the »» Possibility of adversely impacting human rights with concrete actions that reflect suppliers or government entities, Presidency of the Republic Corporate Governance with our security measures and law enforcement our commitment to our values: invitations and representation of Colombia, for high endeavors. Respect, Integrity and Ethics, expenses, among other things. All standards in the fight Our Sustainability »» The presence of illegal miners and criminal Transparency, Safety and Social payments and agreements with against corruption. Roadmap Evaluation and groups in our titles, which affects employees Commitment. public entities and any invitation certification of employees and contractors. We are convinced this is made to a government employee based on their knowledge Relationship With »» The construction of the Project or the behavior the only way to fulfill our higher (regardless of purpose or amount) of the Corporate Code of Our Stakeholders of our contractors may cause discomfort or purpose, which is to “improve must be reported by the CFO to the Conduct and Ethics, the Anti-Corruption Policy adversely impact the community. lives and create value through CEO and the Audit Committee and Financial Performance and Information Handling »» Formalization processes for small-scale miners sustainable mining. We´ve created must also be pre-approved by our Policies. Training our commercial High Operational could fail if connections to criminal activity, such a manual of guidelines and compliance officer In Colombia. as money laundering or financing of terrorist procedures based on Colombia´s In 2018, we created the partners in our Code of Standards Business Conduct and groups, are discovered. SARLAFT System (Anti-Money compliance risk matrix, which closes Ethics and the principles Our People Laundering and Counter-Terrorism gaps in controls against corruption, of zero tolerance for fraud A positive transformation in the municipality of Buriticá Financing Risk Management System) money laundering and fraud. and corruption. Community and is evident. Illegal mining activities have dropped to prevent risks associated with This year, 100% of our Board Regional Development considerably. These advances have been possible illegal mining, money laundering members, VPs, managers, and PRIORITIES Evaluate and certify thanks to a striking improvement in Colombia´s and terrorism financing. We carry directors completed the Code employees based on Environment general security situation and the joint efforts of out due diligence procedures on all of Business Conduct and Ethics their knowledge of the Colombian authorities, the Buriticá community, civil commercial partners we interact training. Additionally, 1,053 Corporate Code of Conduct and Ethics, the Regional Development society and the international community. with and have a robust IT security employees (out of a total of 1,075) and Institutional Anti-Corruption Policy Nevertheless, our Company remains vigilant, as infrastructure. and 1,390 suppliers were informed Strengthening and Information Handling there are still criminal organizations with an interest We permanently monitor about our anti-corruption policies Policies. in gold in the region. At Continental Gold, we use sensitive activities that require and procedures. to fight corruption. Train 50 of our Appendix commercial partners in our international best practices and methodologies to code of conduct and ethics GRI Table proactively monitor and manage risks associated and the principles of zero with the rapid growth caused by the construction of Integrity Management tolerance for fraud and Disclaimers our Buriticá Project. These risks are environmental, We have multiple tools to promote integrity: the Code of Business Conduct corruption. Participate in social, cultural, operational, financial, legal, and Ethics, the Anti-Corruption Policy, the Claims and Whistleblower Colombian and Canadian Policy, the Corporate Disclosure and Insider Trading Policy, and a series of reputational and technological and could affect public and private anti- financial and accounting policies that establish controls for transactions. Back to table of contents employees, contractors and communities. corruption initiatives.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 22 2018
We promote behavior that is aligned Message from the CEO with our corporate values, via internal Communication and training on anti-corruption and Country Manager 100 % of our operations were communication channels and by way of policies and procedures About the Report evaluated in relation to open dialogue between supervisors and (GRI 205-2) their teams. We also carry out external Employees the risk of corruption and Total Employees % % informed Total trained About Us communication campaigns to encourage employees Informed informed trained assessed against the major and trained ethical behavior in special interest groups, risks identified. Executives 8 8 100 % 3 38 % Corporate Governance such as the community, commercial partners and small-scale artisanal miners Managers 12 12 100 % 10 83 % Our Sustainability in the process of being formalized. Middle 53 53 100 % 45 85 % Roadmap In 2018, we created the compliance risk management matrix, which closes gaps in controls against Specialists 254 254 100 % 184 72 % Relationship With Transparency Hotline corruption, money laundering and fraud. Operators 748 748 100 % 294 39 % Our Stakeholders This year, 100% of our Board members, Website form for anonymous VPs, managers and directors completed Financial Performance Board of directors members reporting the Corporate and Ethical Code of Conduct Total % % Total members Total informed High Operational lineatransparencia.com/continental/ training. Additionally, 1,053 employees trained informed trained reportesembedded?form#/ (out of a total of 1,075) and 1,390 suppliers Standards 9 9 8 100 % 89 % were informed about our anti-corruption Our People Anonymous Telephone Hotline policies and procedures. Our Audit Committee is responsible Reports are sent to the Chairman of the 01-8000-1234-84 (Colombia) for investigating and responding to Audit Committee, who is in charge of Community and (1) 888-882-0180 (USA/Canadá) reports of breaches and violations carrying out an investigation based on Regional Development regarding financial and accounting the information received. Emails standards, and information disclosure. Eighteen (18) complaints were Environment [email protected] In 2018 we solidified our reporting received this year denouncing possible [email protected] channels for fraud, corruption, and conflicts of interest and a lack of Regional Development [email protected] ethical issues: Anonymous telephone follow-up on operational processes. and Institutional hotlines in Canada and Colombia All claims were investigated following Strengthening Via letter correspondence We are required to annually disclose (Transparency Line), with e-mail and our protocols and best practices Paul J. Murphy, Audit Committee Chairman, payments made to public bodies in website reporting options, which are on auditing. Two (2) corruption Appendix Continental Gold Inc., 155 Wellington Street Canada and abroad under the Canadian available to all employees, contractors and bribery-related incidents West, Suite 2920 Toronto, (Ontario) Canada GRI Table Extractive Measures Transparency and the community in general. were discovered, which resulted M5V 3H1. Act (ESTMA). Our audited 2018 Our Transparency Line is operated in termination or non-renewal of Enrique Gil, Internal Auditor, calle 7 Disclaimers ESTMA report is available on our by an independent provider and is contracts. In 2018 we had no lawsuits o 39-215, of. 1208, Centro Empresarial n. website https://www.continentalgold. absolutely confidential. Names are never associated with corruption issues. BBVA, Medellín, Antioquia, Colombia, com/wp-content/uploads/2018/05/ revealed to avoid retaliation, and people 050021. Back to table of contents CNL_2017_ESTMA_Report_Fin. can choose to remain anonymous.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 23 2018
CORPORTATE GOVERNANCE: Message from the CEO SUSTAINABILITY and Country Manager A critical aspect of Continental Gold´s corporate About the Report governance structure is to ensure compliance with our Sustainability Model. Therefore, in 2018, we began About Us implementing the Integrated Socio-Environmental Impact and Risk Management System, supported by a Corporate Governance Sustainability Assurance cycle. This system facilitates communication and coordination with and between areas, Our Sustainability as well as with the Construction and Operation teams. Roadmap Supervision is carried out within the system as follows: Country Manager supervises labor, environmental, Relationship With community, security, local government, among others Our Stakeholders area; the CFO oversees accounting standards, financial reporting, and internal control systems; the COO is in Financial Performance charge of Occupational Health and Safety, and the Mine High Operational Operation; and the Corporate CEO manages external Standards affairs, corporate risk management, investors, stock exchange matters, regional development, property Our People acquisitions, and communication. The CEO, Country Manager, COO and CFO report to Community and the Board of Directors and to the various committees Regional Development every quarter. The Vice Presidents of Sustainability and Training a group of employees. the Environment and other managers involved with Environment these issues are regularly invited to committee meetings. In 2018 we implemented our Sustainability Policy, Sustainability Policy Regional Development which was approved by the Board of Directors the year “Social and environmental sustainability is an essential part and Institutional ACHIEVEMENTS before. We apply it to all our activities, with our subsidiaries of our business. Our vision is that mining activities need to Sustainability Assurance Strengthening and contractors. The examination of our compliance generate value for our shareholders and for the communities Implementation, with an emphasis on contractor and our sustainability performance was carried out by where we operate and that technological innovation and Appendix human capital are indispensable for success. Therefore, we performance, to identify the Health, Safety and Environment Committee and the improvements in impact must be open to local and global expectations, be willing to Community and Government Relations Committee. management and maximization GRI Table contribute to equitable development, help build peaceful We also progressed on sustainability matters with of social benefits. and resilient societies, strengthen local institutions, Disclaimers the development of our operational guides and manuals and follow human rights standards and environmental PRIORITIES for the different areas of sustainability –this in order to conservation initiatives to address climate change.” Generate virtual tools to train standardize processes and generate a modern mining Continental Gold Sustainability Policy contractors and keep them Back to table of contents culture. informed.
CONTINENTAL GOLD | Modern Mining Our Sustainability Roadmap
A Story of Regional Development 5 pillars shape our We understand that managing sustainability is an indispensable requirement for the correct development of our operation. The photograph Sustainability Roadmap shows some of our partners, with whom we have joined forces to strengthen the future of the region, including the Medellin Chamber of Commerce for Antioquia, Comfenalco, the National Coffee Federation and the Western Catholic Technology Corporation (TECOC). SUSTAINABILITY REPORT 25 2018
Message from the CEO STANDARDS AND COMPLIANCE (GRI 103-1, 103-2, 103-3) High Operational and Country Manager In 2016, we began to update our sustainability approach, which Standards is guided by the Sustainability Policy approved by the Board of 1 Our exploration, construction and operation About the Report activities are developed under strict standards for Directors in 2017, and by an implementation strategy for the safety and sustainability, guaranteeing efficiency, and productivity. About Us Buriticá Project which has five pillars:
Corporate Governance Our People Our Sustainability Our people are our greatest resource. We strive to develop their talent, Roadmap 2 create the best working conditions and be an attractive employer. Relationship With Our Stakeholders Community and Financial Performance Regional Development Our presence promotes community and regional High Operational 3 development, which not only embraces us Standards because we create jobs, but also because we carefully manage possible impacts and maximize our contributions to the local economy Our People Modern and the social well-being of the region.
Community and Mining Regional Development Environment We recognize that mining operations have an impact on the environment, which must Environment VALUES 4 be authorized and carefully managed. We especially focus on managing water and biodiversity, having communities participate Regional Development and benefit from their conservation. and Institutional Strengthening EXCELLENCE Institutional Appendix Strengthening and Relations To maximize the benefits of our presence in Western Antioquia, GRI Table 5 we have joined forces with regional institutions and communities. This allows us to generate favorable conditions and strengthen local capacities, and thereby promote sustainable development Disclaimers and the ability to receive and execute funding from sources such as royalties in a more optimal fashion, and empower them to become leaders in the construction of their own desired future for the region.
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CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 26 2018
We expect the Buriticá Project to propel sustainable Message from the CEO development in the four municipalities of Western and Country Manager Antioquia which are part of the area of influence of the Our plan for managing About the Report project (Buriticá, Cañasgordas, Santa Fe de Antioquia sustainability has four main strategies: and Giraldo). We also expect to contribute to the Sustainable Development Goals (SDGs) for the region; About Us Meaningful relationships strengthening democratic governance and citizen built on respect Corporate Governance participation, as well as peaceful co-existence and with our stakeholders regional competitiveness. Our Sustainability We understand that managing sustainability Standards and use other references that set Roadmap is an indispensable requirement for the correct parameters for human rights, labor, occupational development of our operation. It is the way by health and safety, corporate governance, anti- Managing all impacts Relationship With which our principles, values,and ethical convictions corruption, and operations. Our Stakeholders with responsibility become tangible. It is also an essential element for In response to a priority proposed in –to and transparency organizational competitiveness and for adding value complete the new sustainability assurance Financial Performance to our corporate management efforts. process– in 2018 we conducted an audit of our High Operational Continental Gold encourages constant learning 20 largest contractors, in order to assess how Standards from multiple mining experiences throughout the compliant they were with the Sustainability world. It promotes following internationally recognized Policy contained in the Contractors Guide, which Our People best practices, learning from society´s growing contemplates 45 points in OHS, labor relations, expectations of what corporations are expected to do, social and environmental responsibility, and Maximizing Community and how business management approaches ethical, social, physical security. These points were agreed benefits for the region Regional Development environmental and human resource matters. It also upon by each area involved, took the Company´s encourages learning from the reality and the interests needs into account, and considered the terms of Environment of the actual people of Western Antioquia. reference, checklists and the Contractor´s Manual. In that sense, we seek to know, learn, understand, The results of the audit will be analyzed in Regional Development innovate, co-create, evaluate and continue building 2019 and will be used to set priorities with the and Institutional based on values and our higher purpose. That´s why contractors and to create an action plan for Strengthening we use the International Council on Mining and Metals the nine (9) companies that presented critical Sustainability Principles, ISO and OSHA standards non-compliance issues. We will also monitor and Appendix Strengthening applicable to our operations, OECD Guidelines for make sure each action plan is complied with, institutional capacities GRI Table multinational corporations and the Corporate Social then close each case with the corresponding Responsibility implementation guide for Canadian documentation, showing the process, identifying Disclaimers business, all as innovative references. We also continue lessons learned, and communicating results to the to follow the roadmap defined by the International interested parties. Additionally, we will share our Finance Corporation (IFC)*, to close the gaps identified Sustainability Policy and the Contractor´s Guide *In 2018 there was no gap analysis Back to table of contents under their Environmental and Social Performance with all contractors involved in the audit.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 27 2018
Message from the CEO and Country Manager
About the Report We expect the Buriticá Project to encourage sustainable development for the four municipalities in Western Antioquia About Us that are part of the area of influence, and that this will Corporate Governance contribute to reaching the Sustainable Development Goals (SDGs) Our Sustainability for the region; strengthening democracy, citizen participation, Roadmap peaceful co-existence and regional competitiveness. Relationship With Our Stakeholders
Financial Performance In 2018, we evolved in our construction and in becoming familiar with High Operational the territory and its people. We gained a better understanding of Standards both our positive and negative impacts on the environment, society, and the economy. We perfected our management systems, built new Our People partnerships and, most importantly, built trusting relationships with our The partnership between the Coffee stakeholders. Federation and Continental Gold Community and We also worked on developing sustainability indicators and having has been very beneficial. All the projects that have been proposed Regional Development people understand why the concept is so valuable and why everyone have evolved quite well. The best needs to be on board. We worked on clarifying doubts and gaining the thing about these projects is that Environment commitment of all areas. We worked on concept management, defining they benefit the entire community, goals and indicators, and on creating a monitoring tool to determine our both the urban area and rural Regional Development progress. We managed to assess the sustainability performance of our veredas [rural districts]”. and Institutional leading suppliers and contractors. Progress was made in strengthening Strengthening Ofelia Carvajal, local governments and in promoting a local economic development member of the National Coffee vision. Our environmental monitoring system was upgraded to see Federation, Santa Fe de Antioquia. Appendix environmental variables in real-time, giving us the ability to manage, GRI Table interpret and react to the data quickly. In 2019, we set many goals of closing the gaps identified in our social Disclaimers and environmental management plan; continue to learn, incorporate and apply internationally recognized standards; keep listening to, and learning from, our stakeholders; rigorously apply evaluations and monitoring; Back to table of contents and advance in the integration of all sustainability management areas.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 28 2018
MATERIALITY ANALYSIS Message from the CEO (GRI 102-46, 102-47, 102-49) and Country Manager In 2015 we performed our first materiality analysis, which was adjusted materiality analysis that will allow us to identify current business About the Report in 2018 using information from relevant issues expressed by our challenges, as well as the expectations of our stakeholders. The stakeholders throughout different dialogue processes carried out in 2017, exercise will analyze external matters, dive deeply into Continental About Us and we updated our corporate risk matrix and the new and Company Gold’s current local and international context, and includes a Sustainability Policy and Strategy. In 2019, we will carry out a new structured dialogue with each of the stakeholders. Corporate Governance
Our Sustainability Roadmap Occupational Talent Local Social Impact Local Economic Environmental Relationship With Our goal is to Health & Safety attract and retain Employment Management Development Management Our Stakeholders We aim to maintain the health We make sure our Our duty as a corporate citizen Maximizing the benefits of our We manage environmental impacts a highly qualified and safety of employees and operation generates is to manage all impacts on the presence, for the territory and the throughout the entire mining cycle, workforce, provide contractors, improve work-life local jobs (direct community, using prevention, communities in our area of influence, prioritizing water management professional Financial Performance quality, better the quality of life of and indirect employment) mitigation, and, if necessary, is a priority and sets the basis for and the protection of biodiversity development our people and reduce accidents to improve the territory compensation. Respecting and economic sustainability. That’s why We focus on conservation of water opportunities, and and absences, all of which that embraces us. promoting human rights is a we support non-mining related local sources in the territory, the maintain work-life High Operational contribute to productivity. fundamental pillar of our social economic development initiatives appropriate treatment of mining quality. Standards impacts management strategy. apart from also promoting supply waste, the rehabilitation and chain linkage programs and small- restoration of habitats, and the scale mining formalization efforts. protection of endangered species Our People present in the areas intervened by our operations. Community and Regional Development
Environment Construction Ethics and Organizational Regional Security and Standards Relationship and Exploration Corporate Performance Development Illegal Mining and With Our Regional Development We assure efficient We seek to align the We promote legal mining and effective execution Governance entire organization in and Institutional in our areas of influence Compliance Stakeholders and Institutional We promote actions based Our operation complies IWe establish open and throughout construction and terms of excellence, through a comprehensive on respect, responsibility, Strengthening with all regulatory transparent communications with Strengthening exploration processes, being in both management We work to make mining strategy and actively ethics and integrity, and requirements and goes all our stakeholders, to create essential elements to the practices and in a real building block that mitigate security risks to social commitment; all beyond that. We employ relationships based on trust, and future of the Company. maximizing value leverages development in protect the community, our values that serve to inspire international best practices to follow through on our model Appendix creation for shareholders the regions that welcome us, people, and our assets. the behavior of our own and global sustainability of modern mining. We take and other stakeholders. by providing resources and workforce and that of our standards. special pains to create close and expertise and generating GRI Table stakeholders. We understand collaborative relationships with synergies with private and corporate governance is our local stakeholders. public sectors, as the necessary framework well as civil society. Disclaimers that ensures timely decision making and protects the interests of all stakeholders.
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CONTINENTAL GOLD | Modern Mining Relationships with our stakeholders
386 people Deeply rooted in dialogue participated in Recognizing the culture and historical memory of the territories is a fundamental aspect of Continental Gold´s work with the 11 Dialogues with communities. We support the construction of personal identities that are strong and recognized and also promote leadership. Continental Gold In the photo: Buritica Heritage Rangers (Vigías del Patrimonio), in charge of promoting the Route of the Chief (Ruta del Cacique). SUSTAINABILITY REPORT 30 2018
Message from the CEO (GRI 103-1, 103-2, 103-3, 102-40, 102-42, 102-43, 102-44, CNL7) and Country Manager he relationship with our stakeholders is a More than simple interactions, we seek relationships About the Report long-term commitment based on trust. It aims that help local communities and other interest groups ACHIEVEMENTS to strengthen our Sustainability Strategy and understand and accept our project and identify its Implementation of a digital strategy, that already has 4,608 contribute to regional development, based tangible benefits. In 2017, we came in ninth place among About Us followers on Twitter, Facebook and on partnerships that allow for the collective the top-ranking 55 mining companies, with the best Instagram. Corporate Governance T development of the territory. A virtuous circle reputation in Colombia, according to “Brújula Minera”* 386 people participated in 11 appears when we share common interests (Mining Compass), and we hope to improve this already “Dialogue with Continental Gold” sessions. Our Sustainability and join forces with the State, the community, favorable ranking in 2018. Roadmap Implementation of the Buriticá the private sector, and the social sector. As part of our interest in reforming the Colombian Plan communications strategy with Within the framework of modern mining, and based mining sector, this year we managed to establish a fluid the slogan “Buriticá is better legal, Relationship With on the concept of being a good neighbor, we believe that and permanent communication with the Colombian not a single step backward” Our Stakeholders Internal-marketing Survey mining companies must be partners in the territories Government, through the direct efforts of our completed by 835 employees and references for best practices: promote supply chain Country Manager and the areas of Sustainability and Financial Performance linkage, knowledge transfer, and regional development, Environment. In terms of our international relations PRIORITIES High Operational and become champions on issues such as gender equality, strategy, we focused mainly on investment issues, which Strengthen internal inclusion and respect for human rights. involved working closely with our office in Canada. communication mechanisms, taking Standards into account that 50% of Company Our internal teams are also a employees are from Western Our People critical interest group. Knowing this, Antioquia. We seek relationships that help local we conducted an internal-marketing Strengthen our relationship Community and survey that had a high participation with the media, keeping them informed about our efforts to bring Regional Development communities and other interest groups rate. It showed us their perception development and progress to the understand and accept our project of different aspects related to the region. Environment internal reputation of the Company Establish plans for stakeholder and identify its tangible benefits. and the mining sector. relations. Update crisis management Regional Development To generate greater and Institutional protocols. dissemination of our activities Strengthening Standardize our corporate We manage our reputation on two levels: the first refers to and provide stakeholders with better information that discourse. corporate behavior, which must be aligned with rigorous allows them to understand the project, we implemented Expand and promote a more Appendix leading role by the areas. international standards to ensure that the reputation of a digital communication strategy via accessible access Position the Company’s digital GRI Table the Company is not adversely affected. The second focuses channels, using simple language, with higher recurrence. strategy and increase its reach. on managing our external and internal image through our Our digital community has grown to 4,608 followers on Generate a deep-rooted Disclaimers relationships with our stakeholders. Twitter, Facebook and Instagram. organizational culture, so that values and a higher purpose are permanent references for our * Mining Compass It is the first reputational analysis study on the mining employees. Back to table of contents sector in Colombia.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 31 2018
Our digital media presence was complemented using Message from the CEO other channels such as the “El Buritiqueño” newspaper, and Country Manager “Separatas de Occidente,” community billboards, and About the Report non-print channels such as radio slots played on local stations, in the area of influence of the project. About Us These channels were used primarily to focus on issues such as: Corporate Governance »» Promoting gender equality, with initiatives such as “Women are Debunking Myths in Mining.” It is Our Sustainability important to highlight that 19 women graduated Roadmap in Underground Mining Equipment Operation and Maintenance, the first in Colombia with Relationship With these technical skills. We published this news on Our Stakeholders national media channels and had our women miners participate in events and forums oriented Financial Performance towards gender equality –such as the “IV Relianz High Operational Mining Forum WIN - Now, Let’s Talk About Equity,” Standards and “Semana Sostenible Forum - From Corporate Commitment to Collective Change.” Our People »» Consolidating audiovisual pieces of the Future Harvest (Siembra Futuro) agricultural Community and development program. To showcase how vital Dialogues with Continental Gold, a Regional Development this program is for the region, and broaden its DIALOGUES WITH CONTINENTAL GOLD socialization space held scope, we produced 10 short videos that reveal 11 Dialogues with Continental Gold: 9 sessions in the urban area in the rural district of Mogotes. Buriticá. Environment the impact the program is having on farmers of Buriticá, and the veredas (rural districts) of Higabra, Mogotes and (Campesinos) and their families. They were all Murrapal, and the corregimiento (smallest administrative unit) of El Regional Development published on our social media channels and Naranjo; in addition to 2 Dialogues in Medellín with the colonies*. and Institutional other platforms. Three hundred eighty-six (386) people participated in Dialogue Strengthening »» Supporting “Invitations to Participate in Mining with Continental Gold sessions. The main issues discussed were Technical Training Programs”. We recorded a employment, usage rights for the Higabra road, aqueduct, productive Appendix high turnout of 618 young people (high-school projects, environment (water, permits, readings/measurements, PES or GRI Table graduates) applying for the 120 spots that were Payments for Environmental Services) and social investment. available for mining technical degree programs, * Brújula Minera is the first study to focus on the reputation of the Colombian mining Disclaimers offered in partnership with the Colombian sector. National Learning and Apprenticeship Service (SENA), which were publicized via radio spots, Back to table of contents social media and print platforms.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 32 2018
Mural created during a Message from the CEO community event sponsored by and Country Manager Plan Buritica involving the local band Son Batá and several students from educational About the Report institutions in the municipality.
About Us
Corporate Governance
Our Sustainability Roadmap
Relationship With Our Stakeholders
Financial Performance
High Operational Standards
Our People PLAN BURITICÁ Community and Continental Gold participates as a strategic ally Working with the firm “Jaime Arteaga & Asociados”, we Regional Development in “Plan Buriticá”, a municipal initiative that seeks implemented a communications strategy for the plan, to guarantee efficiency for public social and using the message “Buriticá is better legal, not a single step Environment economic programs stemming from all levels backward”. This allowed us to: The importance of this project is that it allows us to safeguard many (local, department level, or national). It aims »» Make Buriticá visible as a resilient municipality, valuable things in the municipality. Regional Development to address challenges related to coordination, committed to legality. and Institutional For the rural area, it is worth information management and consensus- »» Involve the Buriticá community in defending their Strengthening mentioning the veredas [rural building. The effort encourages relationships territory and the progress achieved. districts] of Bubará, Untí and La and working together with private entities »» Support the municipal administration by showcasing Appendix Fragua because of their history on four fronts: the rule of law, social welfare, the progress of the municipality. and abundant artistic and cultural expressions”. GRI Table institutional strengthening, and legal economic »» Generate virtual and physical meeting spaces, where development. respectful dialogue and goal-setting are prioritized for Blanca Pereira, Disclaimers the development of the municipality. Buriticá Heritage Ranger. »» Recognize the potential of the youth in the municipality, having them be the focus for new strategies when Back to table of contents setting goals.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 33 2018
Relationship Mechanisms Message from the CEO INFORMATION MECHANISMS and Country Manager AND COMMUNICATION Community accompaniment Sustainability Report Telerrevista About the Report WITH SPECIAL INTEREST GROUPS Attention to requests News in different internal media Dialogues with Continental Gold Our community relations model is aligned with our corporate Press releases Participation in events Occupational well-being projects About Us values of Respect, Ethics and Integrity, Transparency, Security and Social Commitment, and contemplates the level of Community training Safety talks Corporate Governance influence, amount of interaction and decision-making potential El Buritiqueño Newspaper and print media for each special interest group, broken down by issues. Community billboards Monitorings
Our Sustainability In this way, we can identify stakeholders´ interests and Information sessions Partnerships/Alliances Interactions in Roadmap positions, and implement relevant relationship mechanisms public meetings Coordination and execution Workshops for building, according to priorities, feedback, internal strategies, thereby Radio spots Relationship With of joint programs socializing and following-up complementing corporate decisions in the sector. on social projects Our Stakeholders Social media Dissemination of documentation Visits to the Project Financial Performance SPECIAL INTEREST GROUPS High Operational GOVERNMENT, AUTHORITIES AND REGULATORS IN COLOMBIA AND ANTIOQUIA Standards
Our People COMMUNITIES IMPACTED Areas of interest AND LOCAL AUTHORITIES NIDA »» Socialization of the Environmental Management Plan for the Buriticá Project. Community and »» Follow-up on obligations acquired during the issuance of mining titles Regional Development and environmental licenses. »» Formalization of small-scale mining. Environment Areas of interest »» Application of the law. »» Information and formulation of the Environmental »» Relationships and promotion of the Colombian mining sector. Regional Development Management Plan for the Buriticá Project. and Institutional »» Execution of strategic projects for improving quality CANADIAN AUTHORITIES AND REGULATORS Strengthening of life in the area. »» Training and instruction supply chain linkage Appendix and inclusive businesses. Areas of interest GRI Table »» Formalization of small-scale mining. »» Socialization of the Buriticá Project. »» Strengthening community capacities. »» Information on the process of closing gaps in international standards Disclaimers »» Institutional presence in the territory for social for socio-environmental management. investment and law enforcement purposes. »» Information on human rights practices in relation to public and private security. »» Challenges for informal small-scale mining »» Formalization of small-scale mining. Back to table of contents in an evironment of illegality. »» Management of risks related to illegal mining in Colombia.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 34 2018
Message from the CEO OPINION LEADERS AND THE MEDIA SECTOR ASSOCIATIONS SUPPLIERS AND CONTRACTORS and Country Manager
About the Report Areas of interest Areas of interest About Us Areas of interest »» Relationships and »» Training and instruction programs. »» Modern mining and development, supply chain linkage. promotion of the »» Design of a safety culture system and Corporate Governance »» Environmental licensing Colombian mining improvement of accident rates. »» Formalization of small-scale mining. sector. Our Sustainability »» Gold governance Roadmap models in Colombia. MINERS IN FORMALIZATION PROCESSES »» Best practices in Relationship With sustainability. Our Stakeholders »» Informal and illegal Areas of interest SHAREHOLDERS AND INVESTORS mining. »» Design of a safety culture system and Financial Performance improvement of accident rates. High Operational »» Training and Instruction. Standards Areas of interest »» Structuring of mining environmental guides. »» The Buriticá project and feasibility study. EMPLOYEES Our People »» Timeline and construction method. »» Socio-political Risk Management. NON-GOVERNMENTAL ORGANIZATIONS Community and »» Closing gaps and socio-environmental management. Areas of interest AND ENVIRONMENTAL GROUPS Regional Development »» Collective agreement and collective Environment bargaining. Areas of interest »» Personal and Regional Development ECONOMIC DEVELOPMENT PROGRAM professional »» Formalization of small-scale mining. and Institutional AND PROJECT OPERATORS development and »» Local development projects. Strengthening wellness programs. »» Environmental impacts management. »» Job Satisfaction Survey. »» Water care and conservation. Appendix Areas of interest GRI Table »» Investment of resources and strategic projects in the territory. FUTURE GOALS Disclaimers »» Training and instruction programs. »» Position the Buriticá Project as a reference for Modern Mining in the country. »» Job training program offerings and »» Position Continental Gold as an international mining reference. implementations, in Buriticá and Back to table of contents surrounding areas.
CONTINENTAL GOLD | Modern Mining Financial Performance
Our distributed Our aim is to grow together economic value was Our distributed economic value increased from COP 65,887,054,256 (USD 22,284,093) in 2017 to COP 656,998,770,596 COP 656,998,770,596 (USD 222,227,068) in 2018. This increase is due to the procurement of machinery, equipment, supplies, and services, a value that we share with our suppliers, employees. In the photo: Confecciones Buga, a Buriticá based Micro-enterprise that is part USD 222,227,068 of the Supply Chain Linkage Program. SUSTAINABILITY REPORT 36 2018
(GRI 103-1, 103-2, 103-3 Organizational Performance, 102-26) Message from the CEO and Country Manager
About the Report We employ financial and
About Us accounting policies –whose primary purposes are to ACHIEVEMENTS Corporate Governance Financial results that are improve organizational aligned with the approved Our Sustainability budget. Roadmap performance and ensure Optimization and control ur holistic approach to sustainability seeks to of the use of cash. generate value for shareholders, employees transparency in financial Review of all financial Relationship With and communities in the areas surrounding processes for the Our Stakeholders the Buriticá Project. To accomplish this, it is information– which we use implementation of JD Edwards information system, essential to ensure the adequate economic Financial Performance O for decision-making. including the financial, performance of the Company and guarantee procurement and maintenance modules. High Operational that correct decisions are being made in terms of investments, financing and strategic issues. That´s how Advances in the Standards construction of the Buriticá we promote the successful development of the business. Project at 46.5% and 94% for Our People This vision allows us to define appropriate and timely the detailed engineering. action plans and to adjust the Organization to its optimal Community and structure in the commercial production phase. It also PRIORITIES Obtaining the necessary Regional Development prepares us to confront the challenges and risks of the funding for the construction sector. Risks such as legal uncertainty, informality/illegality, of the Buriticá Project, Environment maintaining the social license, limitations of logistical including the signing of an infrastructure and insecurity, directly impact profitability agreement with Triple Flag Mining for USD 100 million, Regional Development and the availability of funds needed to operate. and Institutional and Newmont Goldcorp We employ financial and accounting policies whose Strengthening Corporation for USD 57 primary purposes are to improve organizational million, and USD 50 million performance and ensure transparency in financial from other investors, in the Appendix first half of 2019. information, which we use for decision making. results and checks for variations against the budget every Ensure compliance with GRI Table The Financial Department accompanies all areas of month, and submits monthly reports to the management the approved budget and the Company, to ensure that the activities and decisions team in Canada and Colombia, as well as to the Board of the defined timeline for the Disclaimers made are aligned with corporate objectives and with the Directors of the Organization. The Audit Committee meets construction project. Adjust the corporate approved budget for each period. The Vice-President of quarterly and verifies compliance of financial goals and structure with processes and Finance in Colombia, who reports to Country Manager) indicators. Our financial statements are audited and certified procedures for the upcoming Back to table of contents and the CFO in Canada, leads a team that analyzes financial by PricewaterhouseCoopers (PwC). commercial production phase.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 37 2018
Message from the CEO Economic value generated and distributed in 2018 and Country Manager (GRI 201-1) About the Report We are very satisfied with the significant increase GENERATED ECONOMIC VALUE COP 8,656,141,537 we had in distributed economic value. We went About Us USD* 2,927,904 from COP 65,887,054,256 (USD 22,684,093) in 2017 to COP 656,998,770,596 to (USD 222,227,068) Corporate Governance Gold Sales Other income Income from financial investments in 2018, which represents an increase of COP 7,593,117,537 COP 534,720,000 COP 528,304,000 COP 591,111,716,340 (USD 199,542,975). This is Our Sustainability USD 2,568,340 USD 180,867 USD 178,697 due to the procurement of machinery, equipment, Roadmap supplies and services required to complete the construction of the Buriticá Project. Those values Relationship With were shared with our suppliers, employees and Our Stakeholders DISTRIBUTED ECONOMIC VALUE COP 656,998,770,596 surrounding communities. 2018 saw a decrease in the economic Financial Performance USD 222,227,068 value generated, when compared to 2017, of Purchase of materials and supplies Employee training costs Operating expenses COP -11,829,681,747 (USD -4,123,980), mainly due High Operational COP 578,935,137,110 COP 629,296,985 COP 579,564,434,095 Standards + = to the integration of the Yaraguá mine to the USD 195,822,373 USD 212,857 USD 196,035,230 construction process of the Buriticá Project. Our People The variation in retained economic value Social Security Salaries and Payroll Contributions to SENA for 2018 compared to the previous year of System contributions employee benefits Community and COP 58,038,222,000 + COP 6,461,570,000 + COP 1,958,574,000 = COP 66,458,366.000 COP -45,401,330,972 (USD -15,631,037) is due Regional Development USD 19,631,184 USD 2,185,598 USD 662,479 USD 22,479,262 to our Company focusing all its efforts on the fulfillment of the construction program, in order Environment Taxes Royalties Surface area leasing Payments to governments to begin large-scale commercial production in COP 2,221,358,488 + COP 282,493.396 + COP 58,444,282 = COP 2,562,296,166 2020. Regional Development USD 751,365 USD 95,552 USD 19,769 USD 866,686 and Institutional Strengthening Investment in social programs aimed at Infrastructure investments Community Investments communities in the area of influence Appendix COP 4,158,674,426 + COP 4,254,999,909 = COP 8,413,674,335 USD 1,406,654 USD 1,439,236 USD 2,845,890 GRI Table
Disclaimers ECONOMIC WITHHOLDINGS COP - 648,342,629,059 * The average exchange rate used in 2018 and also within this report was USD - 219,299,164 USD 1 = COP 2,956.43 Back to table of contents
CONTINENTAL GOLD | Modern Mining High Operational Standards
55 % reduction in the Total Building a dream Recordable Injury Cindy Paola Muñoz driving a TH430 truck. She is part of the first group of women to graduate in Colombia with an Frequency Rate underground mining technical degree. In 2018 we also trained 85 employees to operate different mining equipment. (TRIFR). SUSTAINABILITY REPORT 39 2018
Message from the CEO and Country Manager
About the Report OCCUPATIONAL HEALTH ACHIEVEMENTS Certificationconfirmed for OHSAS About Us AND SAFETY 18001: 2007 Standard, for the (GRI 103-1, 103-2, 103-3) Management System. Corporate Governance Protecting all of our employees is a priority. Update to the Occupational Health and That’s why we have an Occupational Health Safety policies for Alcohol, Drugs, and Tobacco use. Our Sustainability and Safety Management System (SG-SST) Roadmap Progress monitoring legal compliance aimed at creating a work environment in for Resolution 1111 of 2017 and Decree which safety prevails. A permanent focus 1886 of 2015, which deals with safety in Relationship With on health and safety allows us to prevent underground mining. Our Stakeholders Strengthening documentation work-related injuries and illnesses by having management for the Occupational Health safe labor processes that reduce accidents Financial Performance and Safety. and absences. That´s how we take care of System certification of 12 mining rescue our most valued asset: our people. We are brigade members with the Colombian High Operational National Mining Agency (ANM). committed to looking out for their wellbeing, Standards Strengthening the Emergency Brigade while simultaneously strengthen their sense with 64 brigade members. Our People of belonging as a team, and with the Company. Acquisition of a large variety Our Occupational Health and Safety system Take care of your hands of emergency care equipment. campaign, with staff. Community and includes objectives, goals, and indicators, that PRIORITIES Regional Development allow us to manage hazards and risks, comply Implement 100% of the technical safety with current legal requirements, and optimize Highlight of some of the relevant activities implemented: standards. Environment processes through continuous improvement. »» The “Take Care of Your Hands” Safety Campaign Train 100% of staff (where applicable) This year we were re-certified under the »» Campaign to prevent alcohol, drugs, and tobacco use. in technical safety standards. Increase compliance percentages related Regional Development OHSAS 18001: 2007 Standard. »» Documentation of Technical OHS Standards and Institutional to legally-required minimum standards in In 2018 we improved our Total Recordable »» Documentation of OHS procedures for high-risk activities Strengthening Occupational Health and Safety (OHS) Injury Frequency Rate (TRIFR), from 4.1 in 2017 »» Implementation of management walkabouts Management Systems, under Resolution to 2.2 for 2018, which was a 55% reduction in »» Restructuring the Assessment of Repetitive Tasks (ART) tool 1111 of 2017. Appendix Implement an IPS (pre-hospital care unit) the index compared to the previous year. at an operational level in the Project facilities. GRI Table During 2018, the Company implemented »» Implementation of training sessions on OHS standards Implement a hygiene strategy. different Occupational Health and Safety (OHS) »» External consultants accompaniment in area processes Develop the program for managing Disclaimers strategies that positively impacted accident- »» Strengthening the Operational Emergency Brigade contractors in all its different phases (tender/bid, selection, contracting, closing). related data in the various work centers. The »» Inclusion of new personnel in the OHS area Carry out the Training Plan for emergency goal is for all workers to get home, safe and »» Field and terrain accompaniment by OHS team brigade members in neighboring Back to table of contents sound, after every workday. »» Strengthening management and directors in safety leadership communities.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 40 2018
We also carried out a campaign throughout the different worked hard and were able to achieve compliance levels Message from the CEO job sites, on the importance of of 76%, for decree 1886 of 2015, during the first formal and Country Manager reporting all events that caused an injury, or near review for this requirement. Further improvements and About the Report misses, or those causing damage to property. Our goal is monitoring actions were carried out, and the results prevention and trying to eliminate the causes that provoke thereof will be reviewed in 2019. About Us these events, so we stop them from ever happening again. Aligned with our philosophy of continuous The campaign led to more events being reported in 2018, improvement and learning capacity, in 2018, we Corporate Governance both by direct employees and contractors. strengthened the OHS Management System structure, Senior Management monitors the progress and results by consolidating 18 standards for critical activities Our Sustainability of the OHS Management System via weekly meetings, and providing training. The Assessment of Repetitive Roadmap monthly reports, and control tools to verify compliance Tasks (ART) tool, was implemented, allowing us to with activities. analyze risks for tasks before they start. Relationship With We also carry out internal and external audits to We believe occupational health and safety is a Our Stakeholders validate compliance of the commitments acquired, and shared responsibility. That´s why we have a Joint OHS Being part of the process in the Project, use different mechanisms and internal communication Committee (Copasst), composed of representatives Financial Performance and seeing how dramatically things measures to socialize the results with stakeholders and from Management and workers, who are elected by change from one day to another, has High Operational collaborators. their peers. It helps strengthen our efforts and supports been one of the best experiences I have Standards compliance with established shared with all my team, from the Water regulations. The committee Treatment Plant. We will be the first area to begin operations in the Buriticá Our People focuses on improving current Aligned with our philosophy Project, which is a great challenge for us” systems, participates in training Community and of continuous improvement and activities, monitors action Mike Vásquez Vásquez, Water Treatment Plant Engineer. Regional Development learning capacity, in 2018, we plans, and researches and analyzes causes of accidents Environment strengthened the OHS Management and occupational illnesses. It also facilitates dialogue Regional Development System structure, by consolidating between Management and and Institutional workers in terms of advances »» Occupational Health & Safety Policy. Updated based Strengthening 18 standards for critical activities and challenges related to on Decree 1072 of 2015, Resolution 1111 of 2017 and and providing training. occupational health and safety. OHSAS Standard 18001. Establishes seven principles, Appendix All incidents are investigated dealing with strengthening process leaders, training GRI Table to formulate action-plans and workers, and controlling and monitoring contractors. We consistently followed up on our compliance with thus avoid recurrence. »» Alcohol, Drugs, and Tobacco Prevention Policy. Disclaimers all legal requirements throughout the year. Significant Finally, we communicate the lessons learned to As part of our commitment to the health, safety, advances were made on Resolution 1111 of 2017, having our workforce. A notable achievement this year, in the and wellbeing of our workers, contractors, and reached 86% compliance as of November 2018 compared care of our human talent, was being able to update stakeholders, we established a zero-tolerance policy Back to table of contents to 42.5% at the beginning of the year. Process leaders the following policies: and encourage a culture of self-care.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 41 2018
Message from the CEO »» Road Safety Policy. It confirms our Injuries, work-related diseases, and Country Manager days lost, absences, and number Unit 2016 2017 2018 commitment to implement different of fatalities (GRI 403-2) About the Report operational controls, aimed at preventing Employees + contractors road accidents that could affect our people About Us and the community. Total Reportable Injuries Number 66 69 82 This year we completed 95% of the Training Plan Total accidents not requiring sick-leave (not reportable) Number 102 116 338 Corporate Governance defined by the Occupational Health and Safety Total Reportable Injury Frequency Rate* Number 6,6 4,1 2,3 area. A few training sessions were not carried out Our Sustainability because some external sites closed (temporarily Sick-leave days due to accidents ** Days 444 6,824 1,366 Roadmap stopped working), which forced us to re-schedule Total work-related illnesses Number 0 0 0 and include them in the 2019 plan. Sick-leave days due to work-related diseases Days 0 0 0 Relationship With In terms of sanitary risk factors, we perform Our Stakeholders Number of sick-leave days Days 3,941 182 4,207 environmental and occupational testing to measure dust (particulate matter), gases, radiation Cases warranting sick-leave due to common illness Cases 416 319 340 Financial Performance dosimetry, noise, lighting levels, thermal stress, Sick-leave days due to common illness Days 2,253 2,905 2,841 High Operational ergonomics, and run cyanide analyses. We also Accident rate *** Rate 18,3 11,1 6,5 periodically test all of the Project´s population for Standards Exposed population - average Number 361 620 1,254 heavy metals. Fatalities Number 0 6 0 Our People Our commitment to keeping all workers healthy forces us to continually monitor and Man-hours “CNL” + contractors Number 1,989,310 3,383,973 7,181,965
Community and implement safety programs to protect them No. injuries in the year
Regional Development against any possible risks of diseases associated * Total Reportable Injury Frequency Rate = *200,000 No. man-hours worked in the year with underground mining: (GRI 403-3) Environment »» Hearing loss due to noise and diseases caused No. Injuries
** Accident Rate = *100 by exposure to chemical substances; mainly Average No. of workers Regional Development for employees in the Laboratory area. and Institutional *** The category of days off due to accidents, for 2018, includes Colombia’s regulatory 6,000-day allowance for accidents »» Respiratory diseases, silicosis, and diseases Strengthening resulting in disability. caused by dust particle exposure for According to the chart there was an increase in reportable accidents not requiring sick-leave. The increase was due to a employees in the mine area. Appendix significant rise in personnel, from all areas (direct employees and contractors) reporting all events, regardless of their severity, We regularly provide medical examinations and which happened after we implemented the campaign promoting timely reporting. The frequency and accident rates have actually decreased when considering the increased number of personnel from one year to the next. Although there were 4 GRI Table operate hearing conservation and respiratory fatalities, they do not correspond to causes attributable to Occupational Health and Safety. They resulted from two criminal protection programs, as well as having a Control attacks carried out against the Company. Disclaimers and Protection of Hazardous Materials Plan.
Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 42 2018
Message from the CEO and Country Manager EMERGENCY PREPAREDNESS About the Report SAFE MATERIAL HANDLING At Continental Gold, we believe it is (CNL12) About Us essential to prepare ourselves to face any As part of our Modern and Responsible Mining philosophy, emergency. Preparedness allows us to at Continental Gold, we correctly dispose of all by-products Corporate Governance control risk, react quickly in different work generated during the mineral processing phase. In 2018, areas and avoid serious damage to people, there were 393,394 tons of sterile materials and 6,709 Our Sustainability Company assets and the environment. Our tons of tailings deposited, which remain in the Company’s Roadmap Emergency Plan stems from an analysis control. Water by-products from the operation, going to identify and categorize threats, assess into the tailings pond, are treated in compliance with Relationship With vulnerability and determine risk levels. It regulatory requirements before being discharged. Our Stakeholders allows us to establish action plans and be better prepared every day. Financial Performance The Emergency Plan is part of the OPERATION, CONSTRUCTION High Operational Incident Command System (ICS), which AND EXPLORATION (GRI 103-1, 103-2, 103-3) Standards combines facilities, resources, procedures, protocols, communications and personnel Our People to solve incidents, events or emergencies Operation Our Portable Life effectively. It is put to the test through Support Systems We are wrapping-up our small-scale operation at the Community and drills executed per the threats identified by are first of their Yaraguá mine to start our large-scale mechanized mine class in Colombia. Regional Development each work center. In 2018, we conducted brigade members become certified as mining operation (Buriticá Project, licensed at the end of 2016). four drills: two at the mine, one with emergency aid workers by the National To improve productivity and safety for our miners, we Environment explorations and one in the Medellín office. Mining Agency (ANM). The Emergency have expanded the Yaraguá and Veta Sur access ramps The results were used to generate reports Brigade was strengthened, ending the year and continue adding mechanized equipment such as Rock Regional Development and action-steps for improvement. with 64 brigade members who received Drilling Jumbos, Bolter Miners (for drilling and anchoring and Institutional The plan was revised this year, training and instruction in handling different bolts, for tunnel support) and 30-ton cargo trucks. The Strengthening and changes were made that focus emergencies. process requires training and knowledge transfer to build on emergency equipment acquisition, Our goal for 2019 is to have 100 brigade the skills needed from our miners. To accomplish this, we Appendix equipment usage training and responding members and to increase to 64 the number partnered with machinery suppliers from Chile, Peru, GRI Table to helicopter-related events. We also of miners certified by the National Mining Mexico and the United States, among others, to train our updated our Medical Response Plan to Agency. We also plan on purchasing necessary workforce in equipment operation and maintenance. Disclaimers better respond to emergencies at the equipment for training and preparing rescue Company at any time. workers, and to create a Mining Emergency 1. Material with no economic value, removed to access the mineral ore. One of the most significant and Rescue Brigade focused on fires and 2. Accumulation of waste material from the milling process which mainly includes crushed rock of no commercial value. Back to table of contents achievements of 2018 was having 12 of our chemical emergencies.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 43 2018 Main Processes and Equipment for Modern Mining Message from the CEO and Country Manager
About the Report
About Us
Corporate Governance
Our Sustainability Roadmap Jumbos Loaders Radios For underground drilling and tunneling, Our low profile loaders are imported from Europe Communication between workers and supervisors Relationship With we use Mining Jumbos, horizontal face and are selected based on the size of the mine. is facilitated using an underground radio system. Our Stakeholders drills that can advance up to four meters The equipment can be used to extract mineral ore at a time, increasing productivity. from panels in deep drilling areas using remote- Financial Performance These drills are imported from Europe controlled loaders to avoid risks to personnel. It and allow operators to work under safe also allows the operator to carry out work from a High Operational conditions. closed ergonomic cabin. Standards
Our People
Community and Tailings Regional Development We apply an international Environment Modern Mining technique by mixing Regional Development tailings (materials and Institutional left over after Strengthening the process of Tunnels Bolters Trucks separating the gold Appendix and silver from the To increase productivity in the mine, we We use Bolter Miners to install bolts and meshes Our carbon footprint decreases with Sandvik mineral ore) with try to incorporate larger machinery with on the rock, which support underground trucks, which have a load capacity of 30 tons and GRI Table cement, to produce higher capacity. Therefore, the diameter development. Just like Rock Drilling Jumbos, optimize the number of trips required for material a paste, later used of some of our tunnels will be five meters Bolter Miners are imported from Europe and transport. They are imported from Europe and Disclaimers as filler in the panels by five meters. generate higher productivity and safety in support have an ergonomic operator cabin. that were extracted These dimensions are bigger than those installations. The operator is put under a ceiling to within the mine. of most underground mines in Colombia. perform tasks safely. Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 44 2018
Message from the CEO and Country Manager Training in Use of Equipment About the Report In 2018, Sandvik trained 19 employees to operate the Scoop LH410 Underground Loader, 23 employees About Us to operate trucks, 10 employees to operate Rock Drilling Jumbos, and 12 employees to operate Corporate Governance Bolter Miners. MacLean trained 21 employees to operate Scissor Lifts. Our Sustainability Roadmap
Relationship With Our Stakeholders
Financial Performance
High Operational Standards
Our People
Community and Regional Development Group of apprentices from the mining technical degree program during an Environment Going to work each day fills me internship with engineers and operational personnel. with enthusiasm since I was given Regional Development a chance to receive training via and Institutional Copasst, on issues related to Strengthening Occupation Health and Safety In 2018 we began one of our biggest challenges: the and also as a member of the implementation of the Raise Bore (Used to ream large diameter Appendix Emergency Brigade. It is very holes to connect different levels of the mine). It is a unique satisfying to be able to work in the endeavor in Colombia due to its large dimensions. It hopes to GRI Table same municipality where I grew up connect the Yaraguá ramp with the Higabra tunnel to improve and being able to contribute the ventilation circuit of the mine. In 2019, two additional vertical Disclaimers to the community with what I do”. raises will be implemented to transport material using gravity. Although it is a challenge, because of its dimensions and technical Liliana Andrea Taborda Higuita, Exploration II assistant, nature, it will be a milestone for Modern Mining in Colombia”. Buriticá. Back to table of contents David Moreno, Project Engineer.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 45 2018
Stockpile. An area with Gravity Concentration. Buriticá Project Industrial Facilities a storage capacity of 14 Message from the CEO Carried out using gravity thousand tons of mineral ore, and Country Manager concentrators and a shaking extracted from the mine. table, to obtain a concentrate that goes to the smelter, and the tailings (leftover material) About the Report are sent to leach tanks.
About Us Primary Crusher. Receives mineral ore and Corporate Governance crushes it to reduce the size to a maximum of 10 centimeters.
Leach. In this area, gold Our Sustainability and silver in the ore are leached out and turned Roadmap into a solution.
Relationship With Milling. This area has 2 mills, Our Stakeholders a SAG Mill (Semi-Autogenous Tailings filters. Area where Grinding) and a Ball Mill to tailings are filtered to reduce grind down the ore to 74 Financial Performance humidity to around 15%, which microns = 0.074 mm, from are then deposited: one part which one part is sent to the to the dry stacked tailings gravity spiral concentrator and the other part sent to and another part to the High Operational the paste plant. leaching plant. Standards
Tailings Aerial Tramway. Our People This system will allow the Detoxification. Area where the tailings (worthless sands) to be cyanide contents present in the transported to the Paste Plan pulp will oxidize and become Community and in Rampa Sur, with which the neutralized, before being sent exploited areas inside the mine to the tailings filters. Regional Development will be filled. Tailings Storage Piles. Countercurrent Decantation Temporary storage area for Environment -CCD-. Here, the solution and filtered tailings, before being the pulp from the leaching sent to the final storage area is washed, to obtain an location for the filtered tailings Regional Development enriched solution of gold and the tailings paste plant. and silver which is then sent and Institutional to the Merrill Crowe. The pulp which does not contain Strengthening gold and silver is sent to detoxification / Neutralization. Appendix Smelting. Area where Merrill Crowe. Area that uses the solution is filtered to zinc precipitation to remove obtain a gold and silver GRI Table gold and silver from the precipitation, which is dried solution obtained via cyanide and smelted to obtainb leaching of the mineral ore. dore bars (unrefined Gold and Silver alloy). Disclaimers Paste Plan. Area where you prepare the backfill TSF. Storage area for filtered tailings, which will Water Treatment Plant. Area where the water material mined out areas. The area is located in then be covered with topsoil to plant trees and will be filtered and treated to clean it and send it Rampa Sur. reforest. It is among the Benefit Plan and Water to the Cauca River. It is two kilometers from the Treatment Plan. Benefit Plan. Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 46 2018
Construction status Message from the CEO for the Buriticá Project and Country Manager (Mineral Processing Plant and related civil works) as of December 2018. About the Report
About Us
Corporate Governance Knowing how important it is to
Our Sustainability manage environmental impacts Roadmap and protect the area´s water Relationship With resources, we built a world-class Our Stakeholders water treatment plant, first of its Financial Performance kind in Latin America with integrated High Operational crystalization system.The investment Standards exceeds USD 44 million. Our People
Community and Construction of the Buriticá Project Regional Development Once we received approval for the modification of our pre-negotiated delivery times, taking into account control building, among others. We simultaneously environmental license in 2016, and after obtaining that most of the equipment and parts are made to issued purchase orders for the manufacturing of Environment the required financing, we began construction of the specs for the Project, so delivery timelines are vitally steel. As of December 2018, progress on the Buriticá Buriticá Project in 2017. This challenging task included important. At the end of that year, we also signed Project was at 46.5%. (CNL13) Regional Development the development of the mine, the construction of the contracts for large earthworks requirements and the Another notable achievement is the Higabra and Institutional mineral ore processing plant, and all other associated design of the construction layout for each section industrial road (built in 2016), which is essential for our Strengthening civil works that are required. of the mineral processing plant. Additionally, we operation and benefits the community significantly. Our team of leaders has been in charge of completed the construction of a medium voltage The work includes the section from the Pinguro- Appendix managing the Project to ensure greater control power line that has a 3.2-kilometer track and Buriticá secondary road to the Higabra valley, where GRI Table over costs, construction timelines and access to provides additional power for development and the Project facilities are located (approximately six experienced mining engineers. Management then construction works. kilometers). The construction of this road generated Disclaimers reports on progress for the Project to the Board of In 2018, we saw significant progress in the concrete local jobs and improved mobility for neighboring Directors, on a monthly basis. installation for the milling plant, as well as in the initial communities such as Mogotes, Higabra, and El In 2017, we also placed orders and purchased assembly works for the water treatment plant, and the Naranjo, since it facilitates movement and shortens Back to table of contents equipment and machinery at market prices and construction of support buildings such as the entrance transit time to the urban center and to the national
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 47 2018
highway, which connects the municipality to the We are convinced the Buriticá Project will promote Message from the CEO rest of the department and Medellin. economic stability in the region by providing legal job and Country Manager At the beginning of 2018, we reached an opportunities and by facilitating possibilities and progress About the Report agreement with the community on the partial and for local families. We are committed to knowledge transfer controlled use of the industrial road. Since it was and will ensure locals learn skills such as welding, heavy About Us still under construction, we emphasized safety equipment operation, usage of state-of-the-art technology, precautions and implemented some restrictions and working with international industrial safety standards. Corporate Governance on its use. During the construction phase, the road is currently being used to deliver equipment, Our Sustainability materials, and human resources to the mineral Construction Timeline for the Buriticá Project Roadmap processing plant in the Higabra valley. In 2018, we also finished most of the earthworks Relationship With contract, as well as, most of the concrete work for 2017 2018 2019 2020 Our Stakeholders the crushing and milling areas. Furthermore, we Engineering began the construction of auxiliary buildings and Financial Performance the water treatment plant. Once the construction Procurement High Operational of the plant is completed, we will proceed with the Standards commissioning which takes approximately three months and end with the final declaration of Manufacturing and delivery of equipment Our People commercial operation. Knowing how important it is to manage environmental impacts and protect Construction Community and the area´s water resources, we built a world- Regional Development class water treatment plant, one of a kind in Latin America, with an investment that exceeds USD Earthworks Environment 44 million. It was designed based on the specific properties of the water in our mining project Plant construction Regional Development and complies with Colombian environmental and Institutional regulation. Strengthening Infrastructure The water treatment plant works with two identical plants, each able to treat 55 liters per Appendix second. Additionally, it has three reverse osmosis Offsite constructions GRI Table systems that remove contaminants from the water and a crystallization system to generate First gold pour Disclaimers waste with very low humidity, which is easy to dispose of. Commercial production Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 48 2018
Prospecting and Exploration training and instruction for our group. Sixteen In 2018, several milestones were accomplished in the Message from the CEO During 2018, we carried out prospecting and colleagues from Buriticá and Giraldo received Buriticá Project: and Country Manager exploration work in the department of Antioquia via certification in Exploration Wellpath Measurement »» The drilling campaign provided better insights into About the Report our subsidiary companies: CGL Gran Buriticá S.A.S. by a recognized international firm. the mineralized systems of the Project. This general and CGL Berlin S.A.S. We carried out 28 Mining Control endeavor led us to simplify our gold systems to only About Us and Supervision visits and filed 18 new applications. 27 groups of veins (formerly 89) and three BMZs. »» The results of the BMZ drilling allowed us to define Corporate Governance broad mineralized zones with significant vertical Buriticá continuity. BMZ1, located in the Yaraguá system, Our Sustainability We accomplished close to 67,000 meters of drilling, has been vertically defined successfully, from the Roadmap which allows us to extend mineral resources to the upper levels of Yaraguá to the tunnel elevation at the Yaraguá and Veta Sur deposits. We also identified Higabra level, situated at the base of the mountain, Relationship With areas with a higher and the same height as our future facilities. Our Stakeholders proportion and concentration of metals called »» Drilling results for the Veta Sur system successfully Broad Mineralized Zones (BMZ), which will boost extended mineral deposits and confirmed the Financial Performance the start of our production in the year 2020. (CNL14) presence of the Laurel system, a significant discovery. High Operational »» Resource estimates for the Buriticá Project were Standards BURITICÁ published using results from the 2015 - 2018 Exploration Program, which consists of 85 kilometers Our People BURITICÁ of additional drilling and two additional kilometers of Titles and applications 0 10.000 meters underground channel sampling which managed to Community and convert added mineral resources to the categories of
Regional Development Yaraguá North Indicated and Measured in the Veta Sur and Yaraguá systems. The results also revealed the extension Environment Additionally, nearly 1,800 active rock, soil, and Perseus of the Veta Sur system and provided initial mineral Yaraguá Yaraguá sediment samples were collected during the different East Deep resources estimates within the BMZ. Veta Sur Regional Development exploration and prospecting campaigns, in 15 of the and Institutional Company´s titles and applications. Strengthening Laurel Our activities focused on Antioquia´s North and MAP KEY AREAS DRILLED 2018 Northwest regions, in the municipalities of Buriticá, Basaltic Andesites Drilling Laurel Appendix Electra Buriticá Andesite Drilling Perseus Giraldo, Briceño, Toledo, and Yarumal. We spoke with all North Volcanic Rift Drilling Orión communities, and openly shared what we were doing GRI Table Sedimentary Drilling Yaraguá east deep in terms of social and environmental management Buriticá Tonalite Drilling Electra as well as proposed exploration and prospecting. Disclaimers N Buriticá Rift Drilling Yaraguá north In municipalities such as Lloró and Quibdó, in the Intrusion Area department of Chocó, we have reached important Future Infrastructure Site Orión 1000 m Back to table of contents institutional strengthening agreements. We continue
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 49 2018
Greater Buriticá Message from the CEO This project includes exploration interests within a 22 and Country Manager square kilometers area, surrounding the Buriticá Project, About the Report in Northwestern Colombia. It contemplates a total area of 73,461 hectares of exploration titles and consists of About Us 19 concessions, thus covering 26,254 hectares and 55 concession applications, for a total of 47,207 hectares. In Corporate Governance the first half of 2018, we conducted close to 9,000 meters of diamond drilling, which allowed us to increase the Our Sustainability geological knowledge and economic potential for this area. Roadmap In the second half of the year, drilling priorities focused on the Buriticá Project, thereby reducing the number of holes Relationship With and meters drilled. Our Stakeholders
Financial Performance Berlín High Operational This project covers a total area of 66,000 hectares of Standards exploration titles. It consists of 11 concessions, totaling 22,893 hectares and 22 concessions that are pending Collaborator Our People registration, for a total of 43,107 hectares. The area is located Continental Gold. 90 kilometers to the north of Medellín, in the Department Community and of Antioquia. Exploration and prospecting began in the first Regional Development half of 2017 and continued until the third quarter of 2018. Unfortunately, in September of 2018, a security incident community, to assess how willing they were to accept Expectations Related to Exploration Environment occurred in the project, resulting in the death of three of exploration and drilling activities in the area. Thanks to In 2019, our exploration group will focus on updating the our employees. As a result, we suspended all exploration their positive response, we maintain our commitment mineral resources model for the Buriticá Project and will Regional Development activities at Berlin. There are no immediate plans to resume and continue with the planning of initial exploration stage continue to drill close to 73,000 meters. This work helps and Institutional activities. activities in the area. increase the exactitude of our mineral resources, which Strengthening could potentially extend the duration of the Project and, thus, generate further continuity and sustainability for Appendix Dojura Dominical our operation. GRI Table Covers an area of 42,575 hectares of exploration titles Covers a total area of 22,592 hectares of exploration titles and includes five concessions totaling 18,617 hectares and is located in Southern Colombia, in the Department of Disclaimers and 14 concession applications totaling 23,958 hectares. Cauca. The Project consists of four concessions with a total It is located in the Western Andes Mountain Range, in area of 5,590 hectares and 14 concession applications, the Department of Chocó, 30 kilometers southeast of covering 17,002 hectares. In 2018, no significant exploration Back to table of contents its capital, Quibdó. In Q4 of 2017, we approached the activities were carried out.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 50 2018
SUPPLY CHAIN Message from the CEO (GRI 102-9, 102-10) and Country Manager To comply with our Sustainability Policy, and to Our Company has two supply chains: one associated with the About the Report prevent adverse impacts on communities and construction of the Buriticá Project and another one for general increase local employment and supply chain operation and support activities for the Yaraguá mine. In 2018, local linkage opportunities, we created a Contractor purchases accounted for 1.8% of our total spending, which helps About Us ACHIEVEMENTS Sustainability Guide with procedures, policies, boost the economy for communities and improves local families’ Purchase of major Corporate Governance and guidelines that contractors must follow incomes. (GRI 204-1) underground and before beginning their activities. We also have surface equipment for Our Sustainability general or specialized meetings and training mine development. Roadmap Implementing before contractors can begin to provide their Local Spending in-house consignment services. agreements for Relationship With To foster transparency, we have a complaints supplying goods and Our Stakeholders 2016 2017 2018 services to support mechanism to receive and investigate complaints the mine operation. related to contractor conduct. Contractors are COP 2,546,000,100 4,659,986,030 11,526,170,352 Financial Performance also commercially obligated to address the issues, USD 876,420 1,604,126 3,898,679 PRIORITIES High Operational find solutions, and provide compensation when Implement and Standards necessary. Formalization agreements with small-scale miners also increase local stabilize procurement and inventory As part of our goal of maximizing community purchases since we buy and process mineral ore from these miners modules for the new Our People benefit, we encourage local procurement of and sell it internationally. We are continuously developing better Enterprise goods and services and seek to strengthen methods to showcase the indirect positive impacts our presence has Resource Planning Community and different technical and business capacities in local on the economy. (ERP) System. Sign and implement Regional Development entrepreneurs. This is done via our Mining Supply major supplier Chain Linkage Program (PEP) in partnership with contracts required Environment the Inter-American Development Bank (IDB), the We support the for the operation, purchase of goods Medellín Chamber of Commerce, and Interactuar and services from namely: chemical supplies, lubricants, Regional Development Corporation. Thanks to Supply Chain Linkage local suppliers. and Institutional personal protective (PEP) initiatives, local entrepreneurs are currently Strengthening equipment (PPE), providing lodging, transportation, hardware, food, cement, tires, equipment, and minor maintenance services. maintenance, cables, Appendix among others. Some companies which provide more specialized Update GRI Table mining services have voluntarily established procurement and offices in Medellin, to cater to the growing demand contracting processes Disclaimers by gold mining companies present in Antioquia. to adjust them to the needs and challenges of the Organization during the production Back to table of contents phase.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 51 2018
Message from the CEO SUPPLIERS and Country Manager ( (National. From Western Antioquia. From Buriticá) About the Report 1,273 national suppliers About Us
247 (19% of our national suppliers) Corporate Governance were from Western Antioquia.)
Our Sustainability 2017 From these, 182 (14% of our national Roadmap suppliers) were from Buriticá.
Relationship With Our Stakeholders 1,341 national suppliers Financial Performance 226 (17% of our national suppliers) High Operational were from Western Antioquia). Standards 2018 From these, 109 (8% of our national Our People suppliers) were from Buriticá.
Community and Modern Mining generates Regional Development The total number of suppliers increased in 2018, going from supply chain linkages 1,273 in 2017 to 1,341 in 2018. with local suppliers. Environment The variation is in line with normal operation dynamics caused by changes in the type of goods and services needed and Regional Development acquired in 2018. A long relationship with housing and Institutional accommodation providers Strengthening Our interest in creating positive and close relationships with local communities led us to implement a Appendix Buriticá Giraldo Rent paid in 2018: housing/accommodation strategy, which includes GRI Table using 52 local suppliers. The contracting model in Pinguro COP 1,617,608,977 generates direct economic benefits for the 389 beds 107 Disclaimers Corregimiento (smallest USD 546,473 community and promotes a healthy integration administrative unit) with our Project staff. The process included helping rental owners formalize a legal business structure Back to table of contents and make appropriate home improvements.
CONTINENTAL GOLD | Modern Mining Our People
COP 481,813,867 USD 162,972 Our most valuable resource was invested in We have fostered the comprehensive development of our employees and we have generated knowledge transfer in an agreement the wellbeing of with SENA (the National Education Service): 99 apprentices, each located within the area of influence of our Project, they were able to graduate as Technicians in Underground Mining Operations, including the first 38 women to participate in the country. our people in 2018. SUSTAINABILITY REPORT 53 2018
(GRI 103-1, 103-2, 103-3 Talent and Local Employment) Message from the CEO and Country Manager HUMAN About the Report TALENT MANAGEMENT ACHIEVEMENTS PRIORITIES At Continental Gold, we are convinced that In 2018 we disclosed our higher purpose to our A 96% increase in the To promote the recruitment our people are the most valuable asset, being employees, with the aim of raising awareness and generation of employment of a local workforce both About Us compared to 2017. within Continental Gold and a fundamental pillar of our Sustainability generating deep reflection concerning its meaning. The creation of Casa de la with the contractors of the Corporate Governance Policy. For this reason, we have always Moreover, we helped them gain awareness with Familia (The Family House) Project. fostered the comprehensive development regards to the way our values may help us become role in Buritica for our employees To create incentives for Our Sustainability of our employees and members of the models and what it means to be a good citizen that not and their families. technical training in the Roadmap The Recertification of the development of competencies community in our areas of influence, we only contributes to the development of the company, company in EFR Empresa for our employees and have also expressed a genuine interest in the but also to progress and lawfulness in west Antioquia. Familiarmente Responsable members of the community. Relationship With construction of relationships of trust, which (GRI 102-16) (Family-friendly company) To disclose the higher Our Stakeholders generate value for everybody. These reflection campaigns were at the same The technical training purpose and values of program in Processing Plant Continental Gold to all of From this perspective, we have aimed time a platform in which we were able to develop our Financial Performance Operations started as an our employees and interest our efforts at training and developing our Model of Competencies at Continental Gold, which was Alliance with the National groups. Education Service (SENA), To implement High Operational employees in order to encourage their equally disclosed and implemented for the first time, personal and professional growth and, in within the performance management process held for for employees and members Continental Gold’s Model Standards of the community. of Competencies and the addition, consolidate a team of people that the staff of the Organization. The graduation of the Performance Management Our People possess technical competences, values and first women in Colombia Process. attitudes which are necessary to provide to become Technicians To increase safety and Community and support for the evolution of the Organization The Competencies of Continental Gold in Underground Mining productivity levels. Operations, as part of the To reduce the Company’s Regional Development in the construction and operation phases agreement with SENA. turnover rate of the Buritica Project. We equally promote 67 apprentices graduated To keep operations free of Teamwork Environment educational programs for the communities, Results from this program and they strikes and blockages that Based were hired in the technical result from the negotiation aiming to ensure that they have access to Effective training programs developed process with the union. Regional Development employment opportunities and therefore Communication and Institutional for the community in the area To obtain the recertification improve their quality of life. of influence of the project. in EFR (Family-Friendly Strengthening One of our greatest motivations is to leave Adaptation/ The launch and disclosure Company) a lasting impact and a positive footprint on flexibility of our higher purpose and To revise the Appendix the values of Continental organizational structure and our working environment. This is why, in 2017 Gold to our employees. ensure that there is adequate GRI Table we outlined a higher purpose that inspires us: The design and disclosure transition to the Model of “to improve lives and add value through of Continental Gold’s Model Operations. of Competencies. To provide support to our Disclaimers sustainable mining”, as well as values Commitment and The implementation employees and their families that will guide each of our actions: respect, Responsibility of new benefits such as a that have been victims of the integrity and ethics, transparency, safety food service and the support attacks that took place in Back to table of contents and social commitment. voucher for health services. September 2018.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 54 2018
Message from the CEO and Country Manager EMPLOYMENT DATA (GRI 102-8, 401-1, CNL3) About the Report One relevant subject is the possibility of About Us generating local employment in order to directly benefit the territory that has hosted 1,658 Corporate Governance us. In 2018 there was a significant increase people became part within our internal workforce and contractors, of the Continental Gold Our Sustainability duplicating employment generation figures, family in 2018. Roadmap with an increase of 1,658 employees compared to 2017. The growth of our internal workforce Relationship With was 52% (139% amongst our contractors). Our Stakeholders
Financial Performance
High Operational Standards
A group of students taking the Our People The growth of our internal workforce + contractors Technical Course in Underground Mining Operations took on 3,000 internships with engineers Community and and operational employees Regional Development 2,500 Environment
2,000 Regional Development 2,000 2018 and Institutional 3,307 Strengthening 3,292 1,500 2017 2,887 2,833 2,790 2,720 2,571
Appendix 2,333 2,217
1,000 2,158 1,000 1,984 1,817
GRI Table 1,676
500 929
1,069 929 987 1,612 935 1,314 1,557 1,416 1,634 1,406 1,013 1,186 Disclaimers 1,149 592 113 146 0 0 Internal SENA Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Contractors Back to table of contents Employment Apprentices
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 55 2018 INTERNAL EMPLOYEES + APPRENTICES Area of Influence Message from the CEO and Country Manager December Number of direct employees December + contractors 3,292 2017 2018 About the Report Men Women
About Us No. % No. % Number of direct employees + contractors 2.786 85 % 506 15 % Corporate Governance Local Employment (Continental Gold) 384 581 The number of employees that come from local communities. Total number of direct employees 1,075 The percentage of employees that come from local communities (Buriticá Our Sustainability 54% 54% and the indirect area of influence) Employees with long-term contracts 846 77 % 229 23 % Roadmap Employees with short-term contracts 490 46 % 138 13 %
Local Employment (Contractors) Employees with apprentiship contracts 283 26 % 18 1,7 % Relationship With 227 600 The number of employees that come from local communities. Our Stakeholders 24% 27% The percentage of employees that come from local communities (Buriticá Employees with apprenticeship contracts 73 7 % 73 7 % and the indirect area of influence) Total number of indirect employees 2,217 Financial Performance EMPLOYEE RECRUITMENT ACCORDING TO AGE AND GENDER Indirect employees 1.940 88 % 277 12 % High Operational (including apprentices) Standards 314 (2017) 633 (2018) Our People 176 | 56 % Under the age of 30 391 | 62 % Under the age of 30 100% 101 | 32 % 31 to 40 years of age 100% 177 | 28 % 31 to 40 years of age 27 | 9 % 41 to 50 years of age 51 | 8 % 41 to 50 years of age Community and 246 68 9 | 3 % 51 to 60 years of age 486 147 13 | 2 % 51 to 60 years of age 78% 22% 1 | 0% over 61 years of age 77% 23% 1 | 0,3% over 61 years of age Men Women Regional Development No. % No. % By Region 633 Environment The amount of active personnel Internal employees in the Organization per work category and gender Medellín and the Metropolitan Area 124 Country Manager, COO and vice-presidents 7 1 % 2 0.1 % Regional Development Other municipalities 126 and Institutional Managers 11 2 % 1 1 % 705 1,075 Area of influence 36 Strengthening 2018 December Superintendents and directors 10 1 % 1 0.1 % Other municipalities in Antioquia 347 Heads, coordinators, specialists, engineers, 121 16 % 55 7 % Appendix Total departures by age and gender: geologists, other professionals EMPLOYEE TURNOVER* Direct contract 140 (Long-term and short-term) Analysts, assistants, administrative staff, (no se incluyen aprendices) 697 58 % 170 15 % GRI Table By age operators and apprentices From 18-30 50 Disclaimers 31 to 40 63 Internal employees within the Organization per work shift 10.8% 10.1% 41 to 50 17 17 Volunteers 63 Volunteers 51 to 60 9 Full-time employees 846 77 % 229 23 % * In 2018 we included a new indicator to measure the company’s Older than 61 1 Half-time or part-time employees 0 0 % 0 0 % Back to table of contents unfortunate turnover. By the end of the year the turnover rate was 4.7%. By gender 140 Men 110 Women 30 CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 56 2018
Students from the third Message from the CEO cohort being trained in and Country Manager the Underground Mining TRAINING Technical Program offered in partnership between About the Report AND DEVELOPMENT Continental Gold and SENA. (GRI 404-1, 404-3) About Us The training and development of our people is framed within a Modern Mining philosophy Corporate Governance and our commitment to high operational standards. Our bid for basic, technical and Our Sustainability professional education responds to the Roadmap challenge of promoting the local recruitment of human capital that Continental Gold needs, Relationship With the contractors and economic sector of agro- Our Stakeholders industry and trade, which have been included in our strategy to diversify the economy of Financial Performance the region. High Operational In 2018 the training strategy and the and chemical laboratory had access to in Western Antioquia. In addition, 59 Standards agreement with SENA generated the first apprentices took the technical course in Industrial Machinery Maintenance. round of results after the graduation of 99 The basic training program was able to continue as a result of the support Our People apprentices –these graduates came from received from Comfenalco, enjoying the participation of 22 employees and the area of influence of our project, having 4 beneficiaries (members of the family that signed up), for a total of 26 I feel very proud because it was Community and taken the Technical Course in Underground participants. We ensured the continuity of the support plan established for one of my dreams: to study Regional Development Mining, including the first 38 women to have our employees to access higher educations, as well as the training programs something related to mining. I now graduated in these competencies in Colombia. aimed at employability, and university scholarships for the community. feel very happy to be working here Environment It is important to highlight that 62 of the In 2018 we commenced the Program to Strengthen Leadership, starting at the company”. apprentices that graduated in our operations at the supervisor level all the way up to the superintendent level, through Regional Development Duberly Hidalgo, Underground were hired by us (including 14 women). which we were able to impact 166 leaders in three 8-hour sessions. Mining Operations Technician, and Institutional In March and October 2018, we opened Participants received valuable tools that will allow them to better perform Buritica. Strengthening two new technical training programs: Plant their roles. Operation and Industrial Maintenance, each Appendix one comprising 60 apprentices that hope GRI Table to graduate in June 2019 and January 2020, In 2018 we helped 38 women respectively. Disclaimers Through this alliance, we were able –the first in Colombia– to graduate to create the first technical program for Processing Minerals that 55 young people in underground mining techniques Back to table of contents and 22 employees from the processing plant
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 57 2018
Message from the CEO and Country Manager 2017 2018*** About the Report Annual Training No. Average Total Average of no. no. no. About Us hours of hours of hours of hours Men 28,979 77 44,940 53 Corporate Governance Women 8,576 23* 13,858 61
Our Sustainability Total no. of hours (per gender) 37.556 58.798 Roadmap Country Manager, COO and vice-presidents 2,191 6 84 11 Relationship With Managers 1,755 5 156 13 Our Stakeholders Superintendents and directors 7,582 20 332 30
Heads, coordinators, specialists, 5,252 14 12,230 72 Financial Performance engineers, geologists, other professionals
Analysts, assistants, administrative staff, 20,776 55 45,996 53 High Operational operators and apprentices Standards Total no. of hours (per position level) 37,556 63.1 58,798** 61** * 2017. The lower training hour average amongst women is due to the fact that the category receiving most Committed to Our People training is the operator category, and most of the operators are men. gender equality ** 2018. In total, the number of training hours for 2018 were 65,645; this total has been broken down according Community and to gender and level, a total of 58,798 hours were reported by STT and have not been broken down *** Approximate figures, not included in the Audit Verification Report Regional Development Employees whose performance and Environment In 2018, we continued to perform the at promoting continuous improvement, development are assessed regularly, measurement process according to the increasing productivity and strengthening broken down by gender Regional Development performance indicators established in the positive working climate. 100% of the and professional category and Institutional previous years, this strategy is aimed directors and employees were assessed. Strengthening Total staff evaluated Appendix 301 GRI Table
Disclaimers 209 92 25 276 69 % 31 % 8.31 % 91.69 % Executives positions Other positions Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 58 2018
Message from the CEO and Country Manager
About the Report
About Us
Corporate Governance
Our Sustainability Roadmap
Relationship With Our Stakeholders WELL BEING AT WORK (GRI 401-2) Financial Performance One of the priorities in the productivity and Continental Gold High Operational retention strategy, which is aimed at our workers, families enjoying is to ensure the well-being of our employees and Family Day in the Park Standards Los Tamarindos. their families. In 2018 we invested COP 481,813,867 Our People / USD 162,972 in well-being and we managed to foster friendly and constructive conversations Community and with members of the Collective Pact of the Regional Development Organization. We have brought new benefits to We offer life insurance to all of our our operational staff, which have been added to employees, as well as accidental death Environment the packages of extra-legal benefits that we offer insurance, an allowance for marriages, Two years ago I didn’t know to our full-time, internal employees: new routes an allowance for the birth of a child, which path to take. I had just left Regional Development and greater coverage. wedding leave (days off), a credit for secondary school. I started working and Institutional in construction because mining »» Food service for all our employees on their disaster relief, a housing credit and Strengthening didn’t really appeal to me. Then they shift. better rates for car insurance (via the launched the contest for people who »» Economic health benefit for our employees employee fund), as well as food at Appendix wanted to study the technical course and their families. the place of work (for all personnel and I thought: I can’t miss out on GRI Table »» Technical training program in the Operation working in Buritica), amongst others. this opportunity! And it completely of Processing Plants for our operational Additionally, we promote engagement changed my life”. Disclaimers employees. and leisure activities for our employees Duvián Ányelo Carvajal, »» The Family House (Casa de la Familia) as a space as well as fostering respect towards the Buriticá. Technician in the Assembly that fosters education, leisure and sports for traditions held in the area of influence and Electrical and Mechanical Maintenance of Underground Mining Back to table of contents our employees and their families. of the project. Facilities, Buriticá
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 59 2018
A FAMILY-FRIENDLY COMPANY (EFR) Message from the CEO We were able to obtain recertification from the we revised the functional structure of the and Country Manager entity that issues the EFR certificate - Fundación organization and the appropriate size of each About the Report Más Familia, after a positive acknowledgement hierarchical level and area, with the aim of of the initiatives that we have developed in the preparing for an adequate transition towards I am one of the first women to company, in line with the standards that were the operational stage, foreseen to begin in 2020. About Us become a technician in underground audited under six pillars: This exercise and the results that were validated mining in Buritica and the country. Corporate Governance »» Job quality by the Board of Directors provided the roadmap I would like to thank both SENA »» Flexibility to allow employees time and that allowed us to design each of the action and Continental Gold”. Our Sustainability space for their family activities. plans to be implemented by the Organization Estefanía Hidalgo Úsuga, Roadmap »» Support provided to the families of our throughout 2019. This will allow us to reach the technician in Underground Mining employees. stage of operations in the most optimal way. Operations, Buritica. Relationship With »» Personal and professional development. We ended the year 2018 with our traditional Our Stakeholders »» Equal opportunities. Family Day, celebrated alongside our families »» Leadership and Management styles. in a harmonious and integrated manner. This Financial Performance In addition, alongside the Colombian Institute of event took place in Parque de los Tamarindos High Operational Technical Standards (ICONTEC) we performed in San Jeronimo (Antioquia). More than 2,200 The grief that strengthens Standards the annual audit of the model, with zero people participated and we enjoyed each of and ratifies our commitment non-conformities or deviations as well as very the recreational and educational activities that Unfortunately, in 2018 we experienced one Our People favorable comments about our work. took place; at the end of the event, we gave our of the most difficult moments in the history Throughout the last quarter of the year employees’ children Christmas presents. of Continental Gold: in September there were Community and two criminal attacks that led to the death of Regional Development four of our colleagues and left others severely Children of our injured. These events compelled us to focus employees taking our efforts on providing close and proactive Environment swimming lessons. support to our injured friends and their Regional Development families, allowing them to face the situation and Institutional in the best way possible. At the same time, Strengthening we accompanied their family members and friends after the loss of our friends. Appendix This painful episode has allowed us to come together and strengthen each other and GRI Table we are convinced that the best way to pay homage to the memory of our friends is to Disclaimers keep working to ensure that the Project takes place in a lawful manner, with responsible mining and the generation of employment,
Back to table of contents education and sustainable development.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 60 2018
Message from the CEO and Country Manager
About the Report WORK PRACTICES (CNL15 claims due to work practices, GRI 102-41, G4-MM4) About Us Our goal is to build stable and mutually-beneficial labor relations. To timely assist our workforce I thank the Company for letting me be Corporate Governance with any claims or requirements they may have, here, for the opportunity to work with constant effort is made to create and strengthen state-of-the-art equipment which is one Our Sustainability dialogue. Such spaces include the Committee of a kind in Colombia, for allowing me Roadmap for Work Coexistence and the Labor Relations to meet people from other parts of the mechanism. world, to live and co-exist with them” Relationship With Continental Gold fully respects the freedom to Robinsón Antonio Higuita, Underground Our Stakeholders Mining Technician, Frontino. associate, and we strictly adhere to our agreed- Every day, we are upon working conditions. At year-end, the union more prepared Financial Performance and trained for had 66 members (7% of our workforce); the the challenges that lie ahead. High Operational remaining employees benefit from a Collective Standards Labor Pact (a Colombian legal structure that establishes an agreement between the company Our People and non-unionized workers) or are part of administrative staff. Community and One event did occur during Q1 2018, which Regional Development required negotiating with the union. It will be decided via arbitration. In 2018, the Ministry of Environment Labor resolved a complaint filed by the workers’ union the previous year. It was related to the 14-day Regional Development work shift and seven days off. and Institutional The Ministry determined that the shift complies Strengthening with legal requirements. It also authorized overtime when required by the operation. The operation did Appendix not suffer from closures nor strikes of any nature. GRI Table Finally, we did receive a request for support in an alleged case of workplace harassment, in Disclaimers which we intervened via conversations between the parties. Four claims were also received and resolved related to labor practices. Back to table of contents
CONTINENTAL GOLD | Modern Mining Community and Regional Development
2,014 people Committed to the territory that embraces us positively impacted by the Mining Supply We promote the design and implementation of productive units via different programs that increase the quality of life and family income for the people of the territory. They receive access to capital, technical assistance, and business acceleration and strengthening. Chain Linkage Program In the photograph, Camilo David, with his egg-laying hens project, a beneficiary of the Siembra Futuro (Future Harvest) program. SUSTAINABILITY REPORT 62 2018
ur Sustainability Model is based on the Message from the CEO concept of Modern Mining. Not only and Country Manager does it ensure mining can be sustainable ACHIEVEMENTS About the Report and co-exist in the territory, but it also The construction and promotes alternative economies, so sharing agreement of the industrial road. Progress About Us communities don´t exclusively depend O in local hiring practices on extraction. for employees and Corporate Governance Social management focuses on two contractors. strategic issues: First, managing social impacts Here in Alto del Obispo, we Joint improvements of rural educational Our Sustainability generated by the construction phase. already see a good meeting space. The community infrastructure. Roadmap Second, maximization of benefits to positively meeting structure came out Continued contributions impact development in the areas of influence of for eco-trails. beautiful and will be useful Relationship With Consolidating support the Project, by working together with communities, for Community Action Board Our Stakeholders for mining formalization governments and the non- profit sector. meetings, training, health efforts; the first three Our social endeavors had many challenges and many Financial Performance brigades, and other things”. environmental licenses opportunities to learn throughout 2018. These were Carlos Andrés Higuita, were granted in the related to communities, partners, spaces for open president JAC Alto del country. High Operational Training of 435 people dialogue and transparency in relations, and allowed Obispo, Buriticá. Standards in education + jobs, 128 us to work together on issues such as: as mining technicians, Our People »» The construction and sharing agreement of including 38 women. 322 the industrial road which connects the urban Siembra Futuro (Future Harvest) and 29 PEP Community and center of Buriticá with the Project and with the (Supply Chain Linkage) Regional Development communities of El Naranjo, Higabra and Mogotes. projects implemented. »» Local hiring processes for construction-phase Our social processes advanced as we restructured Environment employees and contractors who receive internally. This allowed us to make strategic PRIORITIES personalized training. investment decisions, create a robust team and Control impacts via preventive and proactive Regional Development »» Rural school infrastructure improvements, jointly decentralize programs in the different areas of and Institutional approaches as we close executed by local, regional, and community influence of the Buriticá Project. Strengthening the construction phase. governments, with funding coming from assets We are currently preparing for the transition Plan and prepare for the confiscated by authorities during operations into the operation phase. New challenges will arise, new phase of operation, Appendix beginning with a clear against illegal mineral extraction in the such as consolidating the Company’s financial social mitigation plan. GRI Table municipality. structure in the mid-term, to co-participate in Continue our co- »» Continued contributions for eco-trails, connecting promoting legal local economic development existence model Disclaimers rural districts (Veredas) and distant communities efforts, helping strengthen the social presence of throughout our different actions in the Buriticá with the urban center, thus improving access to the State, and lowering expectations associated Project. services offered by the municipality. with the Project. Achieve acceptance for Back to table of contents the Buriticá Project.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 63 2018
Message from the CEO and Country Manager
About the Report
About Us
Corporate Governance
Our Sustainability Roadmap
Relationship With Our Stakeholders
Financial Performance Employees receiving Mineral Processing High Operational Technician training. Standards
Our People OUR PARTNERS
Community and Public Sector Civil Sector Private Sector Regional Development »» Inter-American Development Bank (IDB). »» Minute of God University »» Colombian Network Against Child Labor, Ministry of Work, »» Government of Antioquia. (Uniminuto). and Global Compact. Environment »» Municipal Councils. »» Western Catholic »» Medellín Chamber of Commerce for Antioquia. »» National Mining Agency (ANM). Technological Corporation »» Interactuar Corporation (development consultants). Regional Development »» Administrative Department for Social Prosperity (DPS). (TECOC). »» Jaime Arteaga & Asociados (development consultants). and Institutional »» Municipalities of Buriticá, Cañasgordas, Giraldo, and »» Corporation for the »» National Coffee Federation. Strengthening Santa Fe de Antioquia. Sustainability of Forests »» Western Antioquia Departmental Coffee Farmers »» Federation of Canadian Municipalities. (Masbosques). Committee. Appendix »» Municipal Agricultural Technical Assistance Offices »» Youth Homes for Colombian »» Coffee Growers Cooperative. (Umata). Farmers. »» Devimar (Road Infrastructure Development). GRI Table »» National Learning and Apprenticeship Service (SENA) »» Ideas for Peace Foundation. »» Comfenalco Antioquia (family compensation services). »» National University of Colombia. »» Portafolio Verde S.A.S. (environmental organization). Disclaimers »» Santa Gema Educational Institution. »» Proantioquia (foundation promoting progress for »» Buriticá´s Municipal Culture Council. Antioquia). »» United States Agency for International Development Back to table of contents (USAID).
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 64 2018 SOCIAL AND Message from the CEO ENVIRONMENTAL and Country Manager IMPACTS MANAGEMENT (GRI 103-1, 103-2, 103-3, 413-1, 413-2, CNL16) About the Report We designed plans for environmental Our Sustainability Policy has generated positive About Us management, Community Health and Safety, impacts on neighboring communities: Accomplishments in the and for relationships with our surroundings »» Water conservation and biodiversity Community Health and Safety Plan Corporate Governance and interest groups. Not only do these comply protection, with models such as Payment fo Monitoring project-related Improvement of water quality migration and analyzing its impact and access to water: with our environmental license obligations, Environmental Services (see “Environment” on public and social services. •• Agreement with the Higabra Our Sustainability but they also adhere to voluntary initiatives, in this report). Improvement of people´s ability community to improve the current Roadmap based on international standards, such »» An economic diversification approach, to get around and easier access aqueduct, a joint effort between as the International Financial Corporation which seeks to create economic alternatives to health services due to the free the Company and the community. transportation service and the •• Agreement with USAID and Relationship With (IFC)´s criteria for environmental and social via the Supply Chain Linkage Program (PEP) Our Stakeholders industrial road-sharing agreement. “Oro Legal” to identify the best evaluations, and Sustainability Assurance and Siembra Futuro (Future Harvest). Permanent monitoring of water, administration and operation (AA1000). »» Educational processes, to train qualified air, and noise to prevent and support model for the “Los Asientos” Financial Performance Our management plans allow us to collaborators so they can be hired directly medical care for patients with aqueduct. pathologies such as acute diarrheal Agreement with SER Buriticá administer, prevent, and mitigate the by our Company, encouraging primary and High Operational disease (ADD) and acute respiratory (utility company) for the recollection Standards impacts we identified in 2016 during the secondary education, job skills training, infections (ARI), in six communities of solid waste from three contractors pre-construction phase, which could occur in and higher education, depending on the and for 100% of the project and 100% of our productive supply Our People the current phase of the Project. vocation and interests of the communities contractors, in partnership with the chain beneficiaries. regional office for the Antioquia 23 alcohol and drug prevention In 2018 we achieved multiple advances in (see “Maximizing Benefits” in this report). Department of Health. brigades in three veredas (rural Community and managing identified impacts, which helped districts) and the urban center. Done Regional Development us create communication and consultation in partnership with Minuto de Dios spaces with our stakeholders. We were University. Environment able to monitor and make improvements, thus generating favorable conditions for Regional Development the construction of the Buriticá Project. 61 and Institutional complaints were received related to social Strengthening impacts during the reporting period; 58 of those were resolved and three are pending Accomplishments in environmental impact management Appendix resolution. Noise level control, mostly caused by warnings, banning the burning of waste, Preventing risk associated with increased vehicles entering the Project, excavation and vehicle-emissions and mechanical traffic: GRI Table and construction machinery. Reduction tests validation for all our vehicles. •• The Road Safety Plan for all users, in was accomplished by installing Preventing and mitigating dust formation partnership with the Municipality of Disclaimers silencers and by performing continuous by controlling traffic speed, maintaining Buriticá, the traffic police and Devimar maintenance. moisture on the roads and excavation (Highway Concession). Controlling air quality levels and areas, and spraying water in crushing •• Monitoring driving habits for constant measuring to generate early zones. contractors and employees. Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 65 2018
Creating Message from the CEO local jobs and Country Manager LAND MANAGEMENT About the Report We take a comprehensive approach to land acquisition About Us by always paying a fair price and trying to prevent, mitigate and compensate for any impacts related to Corporate Governance the process. Factors such as forced relocation, having to change economic activities, effects on quality of Our Sustainability life and more, are all taken into account during the Roadmap negotiation process. We try to re-establish or improve living and working conditions for anyone being moved. Relationship With Continental Gold´s land management process is Our Stakeholders consistent with our corporate policies and welcomes guidelines and best practices related to rights Financial Performance management and negotiation, as well as international High Operational policies and standards. It allows us to meet the Standards Company’s needs in terms of managing and controlling any property on our land and allows us to negotiate Our People and adquire third party properties when required. We did not actively seek out land acquisitions Community and this year. Our efforts were mainly focused on some Regional Development occasional purchases of properties and on negotiating rights-of-way leasing agreements required for energy Environment transmission lines, and installation infrastructure, needed by the Project. Regional Development With an approximate investment of COP and Institutional 4,140,000,000 (USD 1,400,338) we generated positive We have a Citizen Information and Attention The pending property-related claim went through Strengthening economic impacts for 185 people along the power lines System (SIAC) to ensure we provide a timely answer the applicable investigation and follow-up by the and signed 105 rights-of-way leasing agreements in the for any requests, complaints or claims citizens areas in charge. However, ACIS did not resolve Appendix municipalities of Cañasgordas, Giraldo and Buriticá, may file. The system is always available and we the claim and closed the issue on grounds that it GRI Table which did not involve land acquisition for the Company. direct petitions, complaints and queries to the corresponds to legal authorities to decide. We had to move three (3) families as part of the appropriate areas for the final solution. In 2018, 13 It is essential to clarify that even though Disclaimers environmental licensing conditions set by Corpourabá claims were received related to land management SIAC works using international standards and for the construction of the power lines. Follow-up issues. Twelve (12) were positively resolved, after in promoting respectful dialogue for conflict processes determined that the resettlements did not being processed following SIAC principles and resolution, it cannot replace, nor does it have the Back to table of contents negatively impact the families that were moved. after the petitioners accepted the responses. powers of, a judicial entity.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 66 2018
Message from the CEO and Country Manager About the Report Human rights policies are applied to About Us HUMAN RIGHTS: everything we do. They must be respected RESPECT AND SECURITY Corporate Governance (GRI 103-1, 103-2, 103-3, Seguridad y Minería Ilegal, for communities, employees and contractors, 410-1, CNL17) Our Sustainability Human Rights Management has two and we promote them in our area of influence. Roadmap components for our Company. The first one focuses on implementing actions so that all Relationship With Continental Gold staff, including contractors Our Stakeholders and business partners, respect and promote human rights in their activities. Financial Performance The second component seeks to PROMOTING HUMAN RIGHTS High Operational effectively protect human resources and Human rights policies are applied to everything security companies.To strengthen our abilities, we Standards Company assets, respecting the human rights we do. They must be respected for communities, held 60 training sessions on Voluntary Principles on of employees, contractors and communities. employees and contractors, and we promote them Security and Human Rights, in which 420 members Our People For this, we count on committed members in our area of influence. from the private security company, Atempi, CNL of our Protection team, private security, and For policy compliance purposes, we implement Protection and members of the Colombian National Community and Public Forces. different initiatives: Army participated. Regional Development We use the United Nations Guiding »» Impact assesments of our activities. In 2018, we used the security services of Atempi, Principles on Business and Human Rights as »» Training employees and contractors. with a total of 106 security posts which generated Environment a roadmap for our operations. Additionally, to »» Defining commitments and obligations within 318 jobs. 100% of the personnel received training in prevent any adverse impacts on human rights, contracts and the Contractor Guide. Voluntary Principles on Security and Human Rights Regional Development we adhere to the Voluntary Principles on »» Performance assesment and monitoring. during the onboarding and re-training processes. and Institutional Security and Human Rights when performing »» SIAC continuity. We purposefully included explicit Strengthening our protection duties and in our interactions »» Meetings with special interest groups and commitments related to respect and promotion of with Public Forces and private security. authorities. human rights within contracts and agreements with Appendix »» Participation in subject related initiatives. private security and Public Forces. We’ve GRI Table »» External assessments. established a cooperation-based relationship with Additionally, we take best practices into account in Public Forces that promote respect for human rights Disclaimers this area, we implement two-way risk and human when carrying out operations and procedures which rights impact analyses (for the Company and the should always follow international laws and the communities, based on our presence), and we commitments made by the Colombian State on this Back to table of contents work in coordination with Public Forces and private matter.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 67 2018
To manage these risks and not allow them to result Message from the CEO in negative impacts, Continental Gold developed a and Country Manager Comprehensive Risk Management System that includes: About the Report »» Early identification of possible risks and impacts. »» Defining measures to avoid such risks and impacts: About Us training, precise instructions, internal regulations, and procedures, and not using lethal weapons where they Corporate Governance are not necessary. »» Assigning specific responsibilities, in terms of budget, Our Sustainability and supervision and control mechanisms. Roadmap »» Performance monitoring, including listening to the voice of the community, control organisms, local officials and Relationship With social organizations. Our Stakeholders »» SIAC implementation to deal with complaints. »» Periodic reviews of those in charge or with power to Financial Performance intervene in the work that Protection does. High Operational »» Analyze lessons learned. Group of students from »» Adjust work plans using assessment results. Standards the Underground Mining Technician program, held Our community complaints mechanism receives in partnership with SENA. Our People concerns related to the conduct of Public Forces and RISKS AND private security. We have an operating procedure which Community and HUMAN RIGHTS forwards complaints to the Human Rights Contact Point Regional Development Our Ethical convictions, Corporate Code For Protection, a high priority is to assess risks associated with for the Army´s “Batallón Especial Energético y Vial N° 4”. of Ethical Conduct, and Impacts Matrix, all human rights permanently. We work hard to avoid or mitigate In 2018, 55 human rights claims were submitted, and Environment contemplate risks derived from Protection them, while at the same time, guaranteeing the safety of our 48 were resolved. Seven claims were pending resolution activities and the possible effects on the personnel and assets. The following risks stand out: at the close of this report. The claims were due to two Regional Development human rights of employees, contractors and »» Death caused by lethal accidents during fight against reasons, both associated with the progress of the Project: and Institutional communities. illegal mining. An increase in contractors, personnel and worker and Strengthening »» Serious violations to the integrity, freedom, or life of community interactions, and more knowledge regarding people from the community, contractors or employees, SIAC and the process of how to submit a complaint. Appendix caused by mistakes in the Protection area. SIAC was explained to contractors, employees and the GRI Table »» Ill-treatment of people. community on multiple occasions, which has permitted »» Blocking the movement of people in the area. stakeholders to know what means are available and can be Disclaimers »» Affecting property or other community assets. used by anyone, per the Company´s Sustainability Policy »» Affecting someone’s privacy or reputation. and in hopes of contributing to peaceful conflict resolution.
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CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 68 2018
Message from the CEO and Country Manager ACHIEVEMENTS FORMALIZATION OF Access to a bank account for the seven About the Report SMALL - SCALE MINERS active formalizations. (CNL8) Generation of a monthly average of 200 job, (81% of local labor). Small-scale mining inside the titles of large and About Us Approval of the first three medium-sized companies, or around them, is environmental licenses at the national Corporate Governance a challenge for gold producers and, in general, level for companies working on small for the health of the project value chain, as mining titles ( Sakae , Higabra and Naranjo Gold Mine –NGM) Our Sustainability it is often informal and can be subject to Roadmap Support for the implementation of four pressure from illegality. Thus, the World Bank mining and environmental guidelines (WB) and the International Council on Mining (GMA) for the associations Sakae , Relationship With & Metals (ICMM) published a guide of good Higabra, Naranjo Gold Mine and Our Stakeholders Nomos. practices to deal with this phenomenon, with A total production of 1,639 tons of initiatives such as a design of co-existence Financial Performance mineralized material, 44% more than the models, among others. We are convinced production reported in 2017. High Operational at Continental Gold that our Formalization Program is the basis for the co-existence of PRIORITIES Standards Consolidating the economic viability large and small-scale mining. of formalized companies and improving Through our program, we train the Members of one of Our People the Formalization compliance of management standards traditional small miners of Buriticá and in This is done in order for their companies to mining companies and capabilities. Community and the Project’s influence area in technical, become conventional mining operators, with receiving training Supporting two new mining production units in their formalization process. Regional Development Health and Safety at Work, environmental, the capacity to exploit the reserves that heavy Reaching 100% in legality, formality financial, administrative and social issues. machinery cannot reach. index, and closing informality gaps in the Environment small title mining value chain. Obtaining reliable information on the Regional Development mining progress of the Formalization and Institutional Program to allow adequate planning. Strengthening Our program for aiding traditional small- Assuring an effective articulation between the Formalization Program scale artisanal miners includes training in and Company’s mining development, Appendix in accordance with the established Occupational Health and Safety, Environment, operational standards. GRI Table Creating alliances with the authorities Financial Management, Administration to assure technological, economic Disclaimers (co-financing) and social support to and Social Components. strategic interest groups. Structuring a relationship and management plan for communities Back to table of contents related to the formalization.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 69 2018
Formalization candidates Message from the CEO receive training in mining and Country Manager development.
About the Report
About Us
Corporate Governance
Our Sustainability Roadmap
Relationship With Our Stakeholders Money laundering and terrorism financing Financial Performance risk management High Operational Our Company controls these Standards risks semi-annually through a third party specialized in Our People money laundering and terrorist financing, who conducts searches for possible links in Community and We supported, during the first half of 2018, eight formalized Environmental management made great official Colombian and foreign Regional Development companies, six with formalization subcontracts, and two under achievements during 2018: databases. In contracts of an operation contract. »» 100% compliance of the mining-environmental small title mining units, we Environment During the second half, we canceled two subcontracts guides from the Ministry of the Environment stipulate our right to revise of formalization due to breaches, and signed a pending and Sustainable Development of Colombia, internal documents, and in Regional Development subcontract. We closed the year with a total of seven production which include best practices such as using legal and Institutional case of identifying any risk, we units: five formalization subcontracts and two operation timber and handling solid waste properly. Strengthening can unilaterally terminate the subcontract. Formalized miners contracts. The total investment in small title miners support in »» Approval of the first three environmental 2018 was COP 1,333,000,000 (USD 480,882). licenses at the national level for companies Appendix must report any change in the shareholding structure of the The formalization scheme allows miners to working on small mining titles by Sakae, Higabra GRI Table company. Finally, we conduct our independently operate a polygon in the title of the Company. and Naranjo Gold Mine. economic transactions through The operation contracts seek that, after receiving training and »» Elimination of mercury use among formalized Disclaimers the financial system, which formal registration as a company, they can exploit a mining miners. Thanks to the ore processing in our has its own Asset Laundering front inside our active mine. The total value paid this year to plant, this year they prevented 25 kilograms and Terrorism Financing Risk those formalized through the operation service reached COP $ from being poured into the environment, Management System (SARLAFT). Back to table of contents 3,251,000,000 (USD 1,099,637). compared to 11 kilograms the previous year.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 70 2018
An average generation of 200 jobs per month, The formalized companies have established goals of Our Strategic Model of Mineral Formalization 2.0 involves Message from the CEO 81% supplied by local hires. These jobs offer all legitimacy (permits to operate), formality (business and the technical, financial and business strengthening in the and Country Manager the conditions and benefits of formalization as process requirements) and legality (overcoming illegality first two stages of the process. In this last aspect, since About the Report employment contracts and affiliation to the Social gaps). The performance evaluation for 2018 allows us December 2016 we have supported mining companies Security System. to conclude that formalized companies achieved 84% in related to the program, in partnership with SENA, About Us There was a decrease compared to formal jobs business formalization, compared to an 80% goal for the Oro Legal, Futuru and Interactuar, and we addressed for the previous year due to a productive adjustment year. The legitimacy goal reached 90% compliance. This is four dimensions of business strengthening: strategic, Corporate Governance of up to 50% of the operating resources in the because the subcontracts of Higabra, Sakae, Naranjo Gold organizational architecture, cultural, and relational. San Román Mining Company, due to the Higabra Mine and Nomos are in the process of applying for an Our Sustainability and Sakae subcontracts being in preparation and explosives quota. Roadmap development stage with low personnel affiliation, and due to the termination of two subcontracts Relationship With because of illegal practices and mercury use. State of units formalized as of December 2018 Our Stakeholders We continued with labor competencies Formalization subcontracts Operation contracts certification in 2018, with 14 miners certified in Financial Performance Item mining exploitation and controlled fracturing of Consortium San Román Higabra NGM Sakae Nomos Nomarca Yaraguá High Operational open and underground rock. We completed 258 Standards trainings, covering 100% of the formalized miners Process status Execution Execution Execution Execution Execution Execution Execution linked to the program in the seven formalizations. Project state Operation Operation Operation Operation Operation Operation Operation Another important achievement was affiliating Our People National Active Active Active Active Active Not applicable Not applicable 98% of the formalized miners to the banking mining registry Community and system, compared to 65% the previous year. Mining- Regional Development We are advancing in one of our priorities, environmental Presented Presented Presented Presented Presented Not applicable Not applicable to improve the application of mining, labor and Guidelines Environment environmental operation standards, and we Complemen- Pending tary jobs and Approved Approved Approved Approved Not applicable Not applicable closed 2018 with the following advances in terms Approval Regional Development of compliance: technical 74.4%, Health and Safety works program and Institutional Environmental Pending at Work 64.3%, social 83.1%, protection 44% and Approved Approved Approved Approved Not applicable Not applicable Strengthening impact study Approval environmental 51.6%, for a global average of 66%. Permit for Approved Approved Approved Approved Pending Not applicable Not applicable Appendix explosives
GRI Table
Disclaimers
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CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 71 2018
MAXIMIZATION OF BENEFITS PROGRAM RESULTS Message from the CEO (GRI 103-1, 103-2, 103-3 Desarrollo económico local, CNL2, GRI 203-1) Year after year, we advance in community inclusion and closeness, and Country Manager At Continental Gold we believe that Modern Mining is not as well as in taking care of their needs and expectations. This is About the Report only ore extraction with state-of-the-art machinery. We are done with a collaborative work approach where residents and convinced that it can also be synonymous with opportunities our Company join forces with institutions to generate value in About Us for sustainable development, building relationships of the territory. trust with our neighbors and understanding their needs. Corporate Governance Therefore, we guarantee the participation of our local Direct interest groups in the design and implementation of profit Number Impacted beneficiaries of projects community Our Sustainability maximizing programs. Impacted Roadmap We act in the present with a long-term vision to avoid dependence on mining and to improve the living conditions Siembra Futuro 322 421 1,653 Relationship With of communities. We promote alliances that create value, and (Future Harvest) Our Stakeholders we implement strategies for local economic development and for strengthening the institutions responsible for designing Productive Mining Chain 29 98 364 Financial Performance and executing economic policies. Program (PEP) High Operational We have implemented three key programs for generating Standards local employment, buying from local suppliers, strengthening Total 351 519 2,017 their competitiveness and economic diversification: Siembra Our People Futuro (Future Harvest) Productive Chain Program (PEP for its acronym in Spanish) and Strengthening Program (presented Members of Confecciones Community and in the next chapter); and, transversally, we generate strategies Buga, family Regional Development and programs for local training and formation. business and PEP beneficiary. Environment
Regional Development and Institutional Strengthening We act in the present with Appendix a long-term vision to avoid
GRI Table dependence on mining
Disclaimers and to improve the living conditions of communities
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CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 72 2018
Message from the CEO and Country Manager IN FIGURES SIEMBRA FUTURO About the Report (FUTURE HARVEST) Accumulated investment 2018 Number of productive units 322 About Us It is one of our pillars for agricultural and economic COP 2,200,000,000 / USD 744,141 development in the region. This program promotes Corporate Governance the design and implementation of agricultural First prioritized Business plans productive units to increase food security and business plans to prioritize Our Sustainability household income through access to capital, Laying birds, fish Laying birds, Roadmap technical assistance and the strengthening of farms, sugar cane, broilers, vegetables agricultural associations. plantains, potato, greenhouse, fish Relationship With It was launched in August 2017 and covers the corn, strawberries, farms, beekeeping, Our Stakeholders Investment 2018 cattle genetic four municipalities of the area of influence of the tomato and coffee COP 1,285,031,900 / USD 434,657 improvement, Buriticá Project (Buriticá, Giraldo, Cañasgordas and greenhouse Financial Performance strawberries, lulo Santa Fe de Antioquia). Figures for 2018 include: Siembra Futuro Fund Coffee Alliance fruit, beans, passion achieving access of 106 people to credit services High Operational (Future Harvest) COP 393,000,000 fruit, community Standards worth COP 587,294,503 (USD 198,650), generating Fund and technical and nursery, pigs and income for the beneficiaries of productive projects USD 132,931 business Number of direct and coffee. for COP 108,000,000 (USD 36,530), and graduating Our People COP 820,031,900 indirect beneficiaries: 118 direct beneficiaries in Business Mentality Fique Fund USD 277,372 (natural fibers) 1,653 indirect Community and through Comfenalco Antioquia. Regional Development COP 72,000,000 and 421 direct Duration Siembra Futuro (Future Harvest) receives support from strategic local and regional allies USD $24,354 five years Environment such as Comfenalco and Corporación Tecnológica Católica de Occidente (TECOC). These allies Regional Development manage the Siembra Futuro (Future Harvest) and Institutional Rotary Fund, at very low interest rates for Strengthening program beneficiaries, provide training and Figures for 2018 include access for 106 people conduct weekly technical assistance to each Appendix agricultural unit. to credit services worth COP 587,294,503 GRI Table (USD 198,650), generating income for the beneficiaries
Disclaimers of productive projects for COP 108,000,000 (USD 36,530), and graduating 118 direct beneficiaries
Back to table of contents in Business Mentality through Comfenalco Antioquia.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 73 2018
Message from the CEO and Country Manager
About the Report Projects of Siembra Futuro (Future Harvest) Productive business Production units Jobs Community Municipality State About Us unit in operation generated impacted
Corporate Governance Laying birds 17 Buriticá 23 86 In production Laying birds 1 Cañasgordas 6 24 In production Our Sustainability Laying birds 2 Santa Fe de Antioquia 19 82 In production Roadmap Sugarcane 2 Buriticá 12 48 In production
Relationship With Fique 1 Buriticá 1 3 In production Our Stakeholders Buriticá, Santa Fe de Antioquia, Coffee strengthening 157 157 598 In production Giraldo y Cañasgordas Financial Performance Strawberries 1 Santa Fe de Antioquia 8 36 In production
High Operational Tomato greenhouse 2 Buriticá 5 20 In production Standards They have helped us a lot, we Tomato greenhouse 1 Cañasgordas 8 38 In production are very happy, it will be very Our People Tomato greenhouse 1 Giraldo 8 36 In production useful for the well-being of the family, because it will generate Tomato greenhouse 1 Santa Fe de Antioquia 8 43 In production Community and employment and more money”. Regional Development Corn and beans 1 Buriticá 4 8 In production Cristo de Jesús Urrego, banana project beneficiary, Siembra Futuro Musaceae (Bananas) 21 Cañasgordas 21 83 In production (Future Harvest), Santa Fe de Environment Antioquia.
Regional Development Musaceae (Bananas) 21 Giraldo 21 86 In production and Institutional
Strengthening Musaceae (Bananas) 21 Santa Fe de Antioquia 21 82 In production
Appendix Potato 70 Buriticá 70 266 In production
GRI Table Fish farming 1 Buriticá 15 58 In production
Disclaimers Fish farming 1 Buriticá 4 16 In production Tree-tomato 1 Buriticá 10 40 In production
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CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 74 2018 Summary of agricultural projects executed in 2018 Message from the CEO and Country Manager Coffee Laying Musaceae Fish Cane Potato Corn Strawberries Greenhouses Alliance signed About the Report Proyects birds (Banana) in August About Us Productivity 2,820 800 600 850 20 12 4,500 28 175 birds kilos / month boxes of panela tons / year tons / year tons / year plants tons of tomato canopies and Corporate Governance [unprocessed sugar One hectare One hectare Three tons / year produced 76,000 cane blocks]/ year 63 175 stoves eggs / month Six hectares hectares Our Sustainability Estimated Production start July 2019 Renovation of Roadmap production for 2,000,000 trees 2019 per year, specialty coffees Relationship With
Our Stakeholders El Plan, Higabra, Higabra, Los Arados Sincierco, Llanos El Paso, Juan Santa Fe Los Asientos, Place Cañasgordas Buriticá, Santa Fe de Mogotes, La Palma, La Palma and Tabacal (El Paso, Juan de Urarco, El León, Gómez, La Llorona, de Antioquia La Ciénaga, Antioquia, Giraldo, Murrapal, Nurqui, Gómez, La Llorona, La Fragua, Pajarito Ciriguán, Lloroncita (Guasabra) Ciriguán Cañasgordas Financial Performance Unit, Sincierco, Ciriguán, Lloroncita and Los Arados and Balsito and Frontino Tabacal 1 and 2 y Balsito), Giraldo High Operational (La Sierrita, La Mesa, Cuajarón, Standards Tinajitas, Águila and Roblar), Santa Fe de Antioquia (settlement Our People El Pescado)
Community and SIEMBRA FUTURO Regional Development (FUTURE HARVEST) IN DETAIL Coffee: Coffee Alliance As part of our regional and community development The coffee sector, one of the most important industries The allies, during the five-year planned duration, Environment initiatives which contribute to enabling the environment for of the country’s economy specifically for the Western will make contributions worth COP 7,000,000,000 the Buriticá Project, the Siembra Futuro (Future Harvest) Antioquia, has been facing a downward trend in prices (USD 2,367,721): Continental Gold will contribute Regional Development programs that have the greatest impact are: caused by the high product supply in international approximately COP 2,000,000,000 (USD 676,492), and Institutional markets. the National Federation of Coffee Growers COP Strengthening Therefore, we formalized the Coffee Alliance in 2,000,000,000 (USD 676,492), and the remaining August 2018 as a comprehensive strategy to increase amount will be provided by the mayor´s office Appendix profitability for coffee growers and improve the living and the community. standard of families. The aim of the alliance is to We contemplate constructing 700 canopies and 700 GRI Table support them in the challenges of maintaining and ecological stoves, renovating 10,000,000 trees and improving productivity in their plantations, and of training 100 coffee growers in the municipalities of Disclaimers accessing new market niches as critical success factors. Buriticá, Cañasgordas, Frontino, Giraldo and Santa Fe This alliance includes participation by the National de Antioquia. This, with the idea of having differentiated Federation of Coffee Growers, the Coffee Growers coffees of origin is destined for the international market. Back to table of contents Cooperative of the West, and the local mayors’ offices.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 75 2018
The following actions were prioritized to Message from the CEO improve productivity and competitiveness Fish Farming and Country Manager for the 2018 - 2019 period: Objective: : To strengthen local fish farming by »» Renovation of 1,928,000 coffee plants by About the Report implementing parcels with water recirculation systems providing plantlets for final planting in and by technification of existing lakes. It uses bio flow field, and fertilization for the developing About Us technology which allows using food waste, organic matter stage. and inorganic compounds through microorganisms »» Construction of 175 canopies for drying Corporate Governance present in aquatic environments, thus achieving better coffee. recycling levels. »» Construction of 175 stoves and wood Our Sustainability Strategic allies: Umata Burtiticá, Corporación Tecnológica gardens. Roadmap Católica de Occidente (TECOC), Comfenalco Antioquia and »» Specialized assessment to a group of Continental Gold. 100 producers with topics aimed at best Relationship With Total investment: COP 70,000,000 (USD 23,677). practice implementation for production Our Stakeholders of special coffees through workshops, tours and farm field days Financial Performance
High Operational Standards
Our People Plantain grown for shade coffee Community and Objective: To grow 63 hectares Regional Development of plantain trees that also provide shade to coffee: 21 in each Environment municipality; Cañasgordas, Giraldo and Santa Fe de Antioquia. Regional Development Strategic allies: Umatas, and Institutional Corporación Tecnológica Católica Strengthening de Occidente (TECOC), Comfenalco Poultry Business Plans Antioquia and Continental Gold. Objective: To install 20 barns with poultry for production of Appendix Total investment: 1,890 eggs per day and 20 chicks per week. COP 358,000,000 Strategic allies: Umata of Buriticá and the Board of Rural GRI Table (USD 121,092). Development and the Environment of Santa Fe de Antioquia, Corporación Tecnológica Católica de Occidente (TECOC), Disclaimers Comfenalco Antioquia and Continental Gold. Total investment: COP 117,890,000 (USD 39,875).
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CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 76 2018
Message from the CEO Strawberry crops and Country Manager in Guasabra village About the Report Vegetable Greenhouse (Santa Fe de Antioquia) Objective: To build four greenhouses to Objective: To set up a plantation of About Us produce vegetables (tomato, cucumber, 3,000 mother plantlets to produce paprika and peppers among others). 10,000 strawberry plants and Corporate Governance Strategic allies: Umatas, Corporación support entrepreneur women from Tecnológica Católica de Occidente the Guasabra village. Our Sustainability (TECOC), Comfenalco Antioquia Strategic allies: Board of Rural Roadmap and Continental Gold. Development and the Environment Total investment: of Santa Fe de Antioquia, Relationship With COP 114,890,000 (USD 38,861). Corporación Tecnológica Católica Our Stakeholders Beneficiaries: 29 families from de Occidente (TECOC), Comfenalco Los Asientos (Buriticá), Ciriguán Antioquia and Continental Gold. Financial Performance (Cañasgordas), Guasabra (Santa Fe de Total investment: COP 13,900,000 Antioquia) and La Ciénaga (Giraldo). (USD 4,702). Continental Gold High Operational COP 3,900,000 (USD 1,319), Standards municipal mayor’s office COP 4,000,000 (USD 1,353). Our People The municipal administration made an additional contribution for Community and COP $6,000,000 (USD 2,029). Regional Development
Environment Fique (Natural Fiber) Regional Development Objective: to create an ecosystem to produce and Institutional natural fibers in Western Antioquia, which Strengthening support farmers and helps them foster relationships with producers and distributors. Appendix Strategic allies: the packaging company, Agricapital, Confama and Continental Gold. GRI Table Total investment: COP 75,000,000 (USD 25,368) Beneficiaries: three families. Disclaimers
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CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 77 2018
The Productive Mining Supply Chain Message from the CEO Linkages Program (PEP in Spanish) and Country Manager With the aim of generating better economic conditions for About the Report the communities, the PEP makes the economic linkages that are associated with the value chain in mining more dynamic. About Us To this end, they provide business technical assistance to small, local entrepreneurs, in such a way that allows them Corporate Governance to join our supply chain, the supply chain of our contractors and the supply chains of other projects in the region. Our Sustainability We have been able to strengthen these local companies Roadmap thanks to our alliances with the Inter-American development bank (IDB), the Chamber of Commerce of Relationship With Medellin for Antioquia and the corporation Interactuar, Our Stakeholders investing a total of COP 843,000,000. The company has grown as a result of the We have seen that the Productive Supply »» Continental Gold’s contribution: PEP; we are currently located in Buritica but Chain Linkages Program has yielded Financial Performance COP 193,000,000 (USD 65,281). we are looking to expand. It is our dream the fruit that we expected: 44 companies »» The Chamber of Commerce’s contribution: to grow robustly through the work that we have been developed with the support do in engineering and auditing in order to High Operational COP 110,000,000 (USD USD 37,207). of the Inter-American Development Bank ensure great quality and a good service”. Standards »» The contribution of the Inter-American Development (IDB), Continental Gold, the Chamber Bank (IDB): COP 540,000,000 (USD 182,653). Darney Úsuga, SUP a Consulting firm in of Commerce and Interactuar”. Buritica. Our People Carlos Sucre, IDB consultant.
Community and Regional Development ACHIEVEMENTS IN 2018 Training and Gender Business Employment Linkages Sales Environment Strengthening Business Equality formalization Generation In line with our The productive units that In the second phase of the 44 philosophy to promote 35 25 received technical assistance program they increased Regional Development Entrepreneurs have graduated at companies are now of the companies that the participation of increased their sales by 11% their capacity to generate and Institutional the Chamber of Commerca in the active in the Chamber received technical women in each of our on the date that the second employment by 2%. In Business Strengthening Process, of Commerce. assistance now provide Strengthening initiatives, from education phase of the program closed. October 2017, the SMEs which included themes such as the products and services to entrepreneurship, In October 2017, their total had 282 employees, and by adjustment of business models, the to Continental Gold contribution to our company the time the project ended in micro-credit service, an awareness and seven are in the Appendix 52% of the companies was Juy 2018, they had campaign regarding peace lectures in this program are led by Higabra village, where (Cátedra de la Paz), associations, women. our project is located. COP 1,900,000,000 282 GRI Table product design, investment plan employees according to the adjustments and sales strategies. USD 642,667 data held by the Chamber and on the date that the of Commerce in Medellin. Disclaimers second phase closed (August 25, 2018) they sold COP 2,164,000,000
Back to table of contents USD 731,964
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 78 2018
Message from the CEO OUTSTANDING and Country Manager CASES OF PRODUCTIVITY About the Report We wish to highlight the projects that were created for the start-ups that are located in the village of Higabra, About Us containing eight investment plans (five of which exist at present). All the entrepreneurs managed to make Corporate Governance investments as a result of the increase in the volume of sales enjoyed by their companies. Our Sustainability Training certificates were awarded in Roadmap different subjects, such as accounting, business studies, inventory keeping, Relationship With among others. Our Stakeholders Economic Activities of Companies that Received Technical Assistance ALLIANCES THAT GENERATE SHARED VALUE Financial Performance We believe that by joining our efforts we can achieve well as a culture that is based on reliable relationships, High Operational Food 29 % better results, which in turn generates a greater impact making it possible for the mining industry to operate in Standards as it allows us to optimize our time, increase investment an efficient and responsible manner. Services 26 % and add to our knowledge. This is why we seek to The main purpose of the program says we need Our People promote alliances and work closely and permanently to “transform the existing culture of fear and create Clothing production 12 % with different institutions including: Town Halls, UMATAS a virtuous cycle which includes security for citizens, Community and (units for technical assistance in Agribusiness at the financial opportunities and strategies to strengthen Regional Development Agribusiness 9 % level of the municipality) and the Office of the Governor innovation and economic competitiveness“. This boosts of Antioquia, surrounding a common objective: the sustainable development throughout the region. Two Environment Mining 7 % sustainable development of the west of Antioquia. main components of the program are: In 2018, alongside the National Federation of Coffee 1. Strenthening legal processes and the creation Regional Development Farmers and the Foundation Ideas para la Paz, our of sustainable economic opportunities, including and Institutional company became one of the winners of the contest innovative and competitive activities. Strengthening launched by the United States Agency for International 2. Strengthening citizen security through the Purchases from local providers Development (USAID) granted to projects in the private development of capabilities and improving governance Appendix sector in Colombia that promote development in the processes in citizen security. GRI Table 2017 2018 regions of the country, through the initiative “Fear to Fear to Trust (F2T) will be in place for a duration of four Trust” (-F2T-). years, with a total investment of COP 14,909,276,490 Disclaimers Value COP 4,659,986,030 COP 11,526,170,352 The project has been founded upon the concept (USD 5,043,000), (50% co-funding from USAID) and it Total USD 1,604,126 USD 3,898,679 of “shared value”, promoting a win-win scenario will also include the participation of experts in social for the region: it guarantees sustainable economic innovation secured via alliances with national and Back to table of contents development in the long-term for the community, as international universities.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 79 2018
Message from the CEO and Country Manager
About the Report The paved rural road About Us looks great. it used to be full of rocks and Corporate Governance walking through here used to be dangerous, Our Sustainability it was easy to fall.” Roadmap Bernardo Higuita, inhabitant of the village Relationship With of Higabra, Buritica Our Stakeholders
Financial Performance
High Operational Standards A paved rural road built in the rural district of Higabra Our People EDUCATION, CULTURE AND QUALITY OF LIFE Community and Another example of the positive impact generated by the Regional Development Buritica Project is the support that has been provided throughout educational processes in two different Environment environments: the first is aimed at training qualified personnel that can be directly hired within our company, Regional Development mainly for underground mining operations; and the other This path benefits us all and Institutional is made up of training processes that are in line with the as we can now walk more Strengthening vocations and interests of the communities. safely, in winter we get so dirty and I can finally take Through this approach, 91 people were able to Appendix my motorbike all the way graduate in basic training and 305 have been trained for “We are all so happy with the home”. path here… why? Because it employment; we also have 8 grantees in higher education. GRI Table used to be full of stones. Now In 2018, we continued to make a social investment in Jhovanny de Jesus Benítez, inhabitant of the area looks really nice and Disclaimers community activities, health and infrastructure, thus the village Alto del Obispo, we can walk around freely”. generating greater wellbeing for the inhabitants of Buritica. José Aures Hernández, the area and consolidating the contributions that our an inhabitant of the village Back to table of contents company has made to regional development. of Higabra, Buritica.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 80 2018
Message from the CEO and Country Manager
About the Report
About Us
Corporate Governance SOCIAL COP 4,158,674,426 Our Sustainability INVESTMENT PROJECTS Roadmap USD 1,406,654 Productivity Relationship With Our Stakeholders (Supply Chain Linkage -PEP- and Siembra Futuro -Future Harvest-) Education Financial Performance Health High Operational Culture Standards Governance Our People Community Activities Creta Cooperation Agreement Community and Regional Development Explorations
Environment Investment in Infrastructure Total Investment Regional Development COP 4,254,999,909 COP 8,413,674,335 and Institutional USD 1,439,235 USD 2,845,890 Strengthening See details of works and infrastructure projects on page 81 of this report. Appendix
GRI Table
Disclaimers Employees and contractors at Continental Gold transferring the tank from the aqueduct in Back to table of contents Los Asientos (Rural District).
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 81 2018
Message from the CEO Positive and negative impacts related to construction of the following infrastructure works and Country Manager
About the Report Soccer field in Vereda Higabra (rural district) Stands/bleachers in Sports area in Mogote Improvements to Casa Verde, Positive impact: mitigates one of the social impacts Positive impact: mitigates one of the social impacts Rural District of Los Asientos About Us identified for the construction phase (“Increased identified for the construction phase (“Increased Positive impact: This initiative promotes risk for vulnerable populations of getting pregnant risk for vulnerable populations of getting pregnant the sustainability goal of “institutional Corporate Governance and acquiring sexually-transmitted diseases”). This and acquiring sexually transmitted diseases”). The strengthening.” It entails adapting a space for sports area improvement allows communities and project was also prioritized and agreed upon by the communities to carry out their consultation, Our Sustainability contractors living in Higabra to make better use of community. Improvement of this sports area helps discussion, training and other processes. It also Roadmap their free time. It allows us to create sports training with community bonding, and promotes better empowers communities and encourages them schools, which help mitigate psychological and social use of free time through sports. It is also a way to to continue participating in dialogue processes Relationship With risks, and prevent alcohol and drug use. mitigate psychological and social risks. implemented by Continental Gold. Our Stakeholders Negative impact: not maintaining the infrastructure, Negative impact: improper uses of stands/ generates deterioration and non-sustainability of bleachers can generate problems with co-existence. Negative impact: Inappropriate community Financial Performance programs over time. use of the space designed for community Improvements to the “La Trampa” strengthening. High Operational Short pathways and ecological trails in our vereda (rural district) road in Higabra Standards Indirect Area of Influence Positive impact: This route was prioritized and Improvements to the Los Asientos Vereda Positive impact: Aligned with our sustainability agreed upon by the communities and improves road (Rural District) Bus Stop Our People mission of bringing “community and regional and safety conditions for rural communities, thus Positive impact: within the shared-use development.” Enables inter-institutional partnerships helping avoid transit via the Industrial Route, and agreements for the industrial road agreed upon Community and between Municipalities, Asocomunal, communities mitigating risks associated with accidents due to the with the communities of Higabra, Mogotes, and Regional Development and Continental Gold, generating conditions for traffic of vehicles and heavy machinery. El Naranjo, free transportation was offered to sustainability and impacting in the territory. Improves guarantee the safety of those using the road. It Environment connectivity between veredas (rural districs) and Negative impact: communities not properly using also improves mobility and access to public and Regional Development urban areas. Their implementation also increases rural district roads, preferring to pass through the social services for communities, shortening travel and Institutional economic competitiveness for veredas (removing Industrial Road. time from one and one-half hours to only 30 Strengthening obstacles and facilitating the mission of the Siembra minutes. Futuro (Future Harvest) program which seeks to Appendix implement agricultural projects in areas that are Negative impact: inappropriate uses of the difficult to reach). industrial road that breaches the agreements. GRI Table Negative impact: expectations from remote Disclaimers communities in the municipality that were not beneficiaries of the program.
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CONTINENTAL GOLD | Modern Mining The Environment
An increase of Responsible for protecting nature COP 1,419,712,149 We are working on different initiatives to protect our biodiversity. One of these initiatives involves 142 families from Western USD 480,212 Antioquia that receive payments for the environmental services that they provide by way of conservation agreements (60 of which are located in Buritica). In the photograph we can see some of the people from Buritica that are part of the program. compared to 2017. SUSTAINABILITY REPORT 83 2018
(GRI 103-1, 103-2, 103-3) Message from the CEO n 2018, our priorities regarding environmental and Country Manager ACHIEVEMENTS management were aimed at ensuring that we Recertificationof the About the Report maintained our certification of the Environmental Environmental Management Management System in line with ISO standard System under ISO standard 14001:2015. 14001:2015, in order to strengthen the initiatives About Us The initiatives that protect our I that protect our biodiversity and water sources, biodiversity and water sources Corporate Governance as well as the verification and assessment of our have been strengthened. environmental measurement systems. Within One example is the strategy Payment for Environmental Our Sustainability the last point, we developed four mechanisms with the Roadmap Services and the research aim of evaluating the controls that were put in place in the that has been orientated Buriticá Project in order to manage environmental affairs towards the identification of Relationship With and the impact on the environment: the biological corridors of the Our Stakeholders Leopardus tigrinus. 1. Audit for the prior verification of the greenhouse Verificationand assessment gas inventory report (GHG), scope 1 (direct GHG Financial Performance of our environmental emissions) and scope 2 (indirect GHG emissions) at the measurement systems. High Operational mining operation facilities in Buriticá, the warehouse in Itagui and the administrative offices in Medellin. PRIORITIES Standards To strengthen our relationship 2. Follow up audit on the Environmental Management Lizzard, with the interest groups Our People System ISO 14001:2015, in which there were no Cnemidophorus that are involved in the non-conformities with ISO standard 14001:2015. Additionally, we were inspired by our Sustainability lemniscatus. process, in order to establish Spotted in valle conservation agreements with Community and 3. Assessment of the Environmental Monitoring Policy and in 2018 we performed a diagnosis and de Higabra environmental authorities. Regional Development Network. We voluntarily assessed the network with formulated the Plan for Sustainable Business Mobility To uphold ISO 14001 two international experts and they concluded that (MES plan in Spanish), with the aim of promoting certification in Environmental Environment the supervision that we perform on dumping and employees at the strategic administrative branches, Management Systems. the impact on water, as well as the levels of noise and which focus on the use of means of transport that To provide support for the construction of the Regional Development vibrations, comply with the highest standards, even have a low impact on air quality. and Institutional Project without avoiding in comparison with the Gold mine Kittilä, in Finland, Our commitment to the environment is reflected Strengthening environmental issues. considered to be the largest in Europe in the increased expenses and investments that took To obtain the approval of 4. Audit in asset retirement obligations, ARO through place in 2018, worth a total of COP 1.419.712.149 environmental authorities Appendix for new licenses or minor, which we were able to verify - on a quarterly basis - (USD 480,212) compared to 2017. This was a result unforeseen changes. To GRI Table the calculation and value linked to our compliance with of the growing number of families that entered the increase the area set aside for obligations in the event of the business being closed or program “Payment for Environmental Services” (Pago environmental conservation Disclaimers retired. The audit performed on the calculations was por Servicios Ambientales), the training provided to as well as any agreements with local communities. voluntary and it was carried out by the firm Deloitte employees on environmental issues, the training To contribute to the process and Eco-acciones and it was finally validated by provided to 25 internal auditors in ISO 14001 and of strengthening our positive Back to table of contents PriceWaterhouseCoopers. the increase in environmental quality monitoring. reputation.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 84 2018
Message from the CEO and Country Manager Environmental expenses 2017 2018 and investments Comentarios About the Report (CNL10) COP USD COP USD About Us Corresponds to the money invested in solid waste management within the Project: Waste disposal 129,565.942 44,601 274,134,204 92,725 • Internal and external collection. Corporate Governance • Supplies for the collection of waste. • Disposal of hazardous waste.
Our Sustainability Water use rate 4,897,207 1,686 4,803,417 1,625 Internal and external collection. Roadmap Shedding 7,275,839 2,505 8,963,298 3,032 Supplies for the collection of waste.
SGA (environmental certifications, green Relationship With 28,050,000 9,656 91,600,542 30,983 Disposal of hazardous waste. Our Stakeholders purchases) Investment was executed in: Financial Performance • Cultural heritage • PRAE (School Environmental Projects) • PROCEDA (Citizens Environmental Education Projects) Environmental education and training 447,998,963 154,217 509,939,081 172,485 High Operational • a Ruta del Cacique (Historical and architectural heritage Standards • from Buriticá) • Diagnosis for the implementation of the Sustainable Business Our People Mobility Plan (MES Plan) Includes investment in socialization of the modification of the Community and Licensing consultants / Expert studies 1,783,649,261 613,993 812,713,980 274,897 Environmental Impact Study -EIA- and environmental studies for said modification. Regional Development Permits, procedures and taxes 301,311,833 103,722 1,178,100 398 Corresponds to payments for environmental permit procedures.
Environment Investment in water monitoring; provision for monitoring epiphytic plants, archaeological monitoring, verification and updating of water balance; design, implementation and Regional Development Environmental monitoring 2,965,235,638 1,020,735 4,513,910,294 1,526,811 operation of the integrated air system, flow measurement and Institutional network, piezometers and vibration measurement for the Strengthening mining project; Leasing weather stations.
General expenses for the operation of the environmental Appendix Administrative expenses 88,197,426 30,361 101,186,863 34,226 management department and business visit to referents in the mining sector to improve our environmental practices.
GRI Table Corresponds to the operating expenses of the Payment Voluntary Payments for Environmental 130,544,772 44,938 1,100,545,961 372,255 for Environmental Services programs subscribed with the Services made to the beneficiaries Disclaimers communities. Total environmental costs, 5,886,726,881 2,026,412 7,306,439,030 2,471,372 expenses and investments Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 85 2018
Message from the CEO and Country Manager ENVIRONMENTAL About the Report MANAGEMENT SYSTEM About Us (GRI 102-11, 307-1, CNL11) In 2018 we achieved the five objectives proposed Corporate Governance in our Environmental Management System: 1. Effectively manage aspects and risks that may Our Sustainability negatively affect the environment. Roadmap 2. Perform proper management and efficient use of natural resources and implement Relationship With biodiversity protection strategies. Our Stakeholders 3. Reduce and prevent environmental incidents of contractors located in the operations. Financial Performance 4. Timely manage the requests, complaints, High Operational claims and suggestions of the community and Standards the findings reported by our employees. Nursery located in 5. Comply with the standards for the correct Platanal, Buriticá Project facilities Our People management and safe use of cyanide. of Continental Gold.
Community and Regional Development We conducted 249 monitoring exercises at Environment 63 points of interest, thus complying with the
Regional Development monitoring and follow-up plan established in and Institutional environmental license approved by ANLA. Strengthening were answered in the same year, and only six complaints remained in progress to be Appendix Within the system framework, we permanently others. We also strengthened the audit team answered in 2019. Thanks to our comprehensive GRI Table verify the environmental legal compliance, with the training of 25 employees in audit of environmental management, in 2018 no penalties identifying the requirements or modifications to the Environmental Management System for or environmental sanctions were received. Disclaimers the applicable law through specialized software the ISO Standard 14001: 2015. Additionally, at the end of the year, we implemented and with the training of our professionals in During 2018 we registered four requests all measures for the safe handling of cyanide and relevant topics such as wildlife management, for environmental information and 22 trained in the International Cyanide Management Back to table of contents climate change, water treatment and reuse, among complaints. The requests, in their entirety, Code in order to begin its implementation in 2019.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 86 2018
WATER Message from the CEO (GRI 303-1, 306-1) and Country Manager Good water management is critical for both the About the Report community and the operation of our Project. In order to achieve a sustainable and integrated About Us management of water resources, we contemplate factors such as land planning, citizens participation, Corporate Governance systems efficiency, regulations compliance, equipment maintenance, and consumption and Our Sustainability discharge control. Roadmap We only consume the authorized water flow for domestic and industrial work, and after the Relationship With effluent treatment, we discharge on the assigned Our Stakeholders points, taking care not to exceed the limit allowed by the environmental authority. Financial Performance We have invested in equipment that improves High Operational the accuracy and reliability of the weekly data we Standards obtain about water quality in order to improve decision making. In 2018, we carried out 249 Our People exercises at 63 points of interest, thus complying with the Monitoring and Follow-up Plan established Community and in the environmental license approved by the Regional Development National Authority of Environmental Licenses (ANLA). Likewise, we voluntarily carried out 15 Environment Water monitoring. monitoring exercises at five points of interest, where we verify the quality of the water that Regional Development reaches nearby communities to prevent diseases, and Institutional being aware of the presence of informal mining in Strengthening Voluntarily, Continental Gold installed, at strategic the area. We performed the evaluation of domestic and Appendix points, automatic measuring instruments that allow industrial wastewater in accordance with current GRI Table us to measure the balance of the water flow, regulations. The water quality results showed deviations in some parameters, such as Biological Disclaimers thus improving reading accuracy, real-time flow rate Oxygen Demand (BOD) and total suspended solids registration and early warning of diversions. coming from the traditional septic systems of the Project, existing since 2012 and that complied with Back to table of contents the discharge regulations in force at that time.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 87 2018
Message from the CEO We have analysis and Country Manager systems that meet the Within the framework of the new regulation highest standards. About the Report of 2018, construction and modernization of treatment systems works are being carried out BIODIVERSITY About Us to launch a new activated sludge plant, with (GRI 304-3, 304-4) the capacity to treat all wastewater and thus To ratify our commitment to habitat Corporate Governance improve the quality indices. Around the Project restoration and protection of threatened we have 15 flow meters that help us detect species, we have implemented actions for Our Sustainability variations, possible leaks, amount of water wildlife conservation included in the Red List Roadmap used by areas and amount of water discharged. of the International Union for Conservation of Nature (IUCN): Tigrillo (Leopardus tigrinus) Relationship With and Red-bellied grackle (Hypopyrrhus Our Stakeholders pyrohypogaster); and of flora: Astronium graveolens and cedrela montana, present in Financial Performance the area of influence of the Project. High Operational In 2018 we made an agreement with Collected water (m3) 2017 2018 Comments Standards the NGO Non-Governmental Organization Panthera International in order to know the In 2018 there was a significant increase in water Freshwater collected from surface sources 4,717 13,325 population of felines in the area of influence Our People collected due to the increase in the working population within the Buriticá Project facilities. of the Buriticá Project and formulate a Community and Groundwater 139,410 357,183 conservation plan for the Leopardus tigrinus At the end of 2018, 3,292 people were employed Regional Development Municipal water supplies and other public or between contractors and Continental Gold, thus species, for which we installed 40 wildlife 543 15,717 private water services doubling the number of workers at the end of monitoring trap cameras. The results Environment 2017 (1,634 people employed). Total collection 144,670 386,225 obtained indicated the presence of five feline species in the Project: Leopardus tigrinus, Regional Development Leopardus wiedii, Leopardus pardalis, Puma and Institutional yagouaroundi and Puma concolor. For this Strengthening Volume discharged (m3) Thanks to this control and monitoring, in 2018 reason, the conservation plan was extended Discharge source 2017 2018 there were no events that exceeded the maximum to other species, identifying their biological Appendix flow rate granted. In addition, we voluntarily install corridors for future strategies. Additionally, Río Cauca 120,986 597,715 automatic measurement instruments at strategic we participate as founding allies of the Animal GRI Table Quebrada El Sauzal 172,368 1,036.8 points that allow us tuning the balance of the water Bank initiative for wildlife conservation. Disclaimers Quebrada La Mina - 7,776 flow, thus improving reading accuracy, real-time flow * Methodology for estimating the discharge: Internally we carry out a periodic rate registration and early warning of diversions. monitoring of flow rate (three times per week) to the effluents of the treatment systems. The flow rate is determined by volumetric capacity, except for the discharge Back to table of contents in the El Sauzal ARI defile, in which we use the measuring instrument “Canal Parshall”.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 88 2018
ATMOSPHERIC Message from the CEO and Country Manager EMISSIONS Our conservation programs included the areas (GRI 305-1, 305-2) About the Report reforestation with the purpose of connecting We continue with the periodic and the remaining forests and forming biological constant monitoring of air quality in About Us corridors to improve the mobility of these each of the communities in the area of species and recover the populations. We also influence and comply with the allowed Corporate Governance added road signs to both internal and external limits established in the air emissions roads of the Project, in order to control the permit. Our Sustainability speed limit and implement environmental To identify and prioritize our Roadmap education and promotion campaigns aimed atmospheric emissions, we measured our at protecting flora and fauna. carbon footprint since 2015, when we had Relationship With This year we planted 2,082 trees around not yet started our operations. In 2017, Our Stakeholders the Project in our own land and in agreements the calculation of the footprint was aimed signed with local communities. Our nursery at characterizing emissions during the Financial Performance has 3,696 individuals to enrich forest areas construction period, in order to establish High Operational around the Project, of which 991 correspond to a baseline for when the operation begins. Standards protected species (656 Astronium graveolens In 2018, due to the increase in the fleet of and 335 mountain cedars). vehicles and construction activities, there Our People was a growth in emissions compared to Tigrillo recorded by a the previous year. monitoring camera. Community and Conservation agreements Photo: Panthera Organization. Regional Development with the community Although the Project does not have natural areas Hectares Total GHG emissions Zone Agreement Environment that are part of the National System of Protected protected (Ton CO2e / year)
Areas of Colombia, we make conservation Regional Natural Park Corredor 4,500 Regional Development agreements with local communities, under de las Alegrías in Santa Fe de 572 Corantioquia +/- 473 and Institutional Antioquia 4,000 the Payment for Environmental Services (PES) Total Strengthening 3,500 870 program scheme. In 2018, we protected a total Payment for Direct Buriticá 479.77 Environmental 3,000 SCOPE 1 of 2,539 hectares. The mechanism encourages Appendix Services families in the region to preserve and maintain 2,500 Cañasgordas-Giraldo 2,000 GRI Table the environmental conditions of their territory (we supported Corpourabá Total Corporation 293 in exchange for an economic payment. In 2018, (Regional Environmental Authority) 1,500 3,047 Direct 1,488 Más bosques 507 with the Environmental Integrated (The “More Forests” SCOPE 2 30 new families entered the PSA program, 560 Disclaimers Management District (DMI) plan to Corporation) 1,000 reaching 60 families in Buriticá at the end 1,170 protect the “Alto de Insor” area. 500 655 of the year and a total of 142 in the West of 284 Uncertainty Total 2.539 0 Back to table of contents Antioquia. 2015 2016 2017 2018
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 89 2018
Message from the CEO and Country Manager SOLID WASTE Waste management 2016 2017 2018 Comments About the Report (GRI 306-2) Total waste generated Our solid waste management is oriented by the organization 79 152 344 (tons) About Us to the development of good environmental Total hazardous waste practices such as separation at source, 13 35 67 by disposal method Corporate Governance storage areas, collection, treatment and final disposal of ordinary, hazardous and special Internal or external reuse 0.0 0.0 0.0 In 2018, hazardous waste was disposed Our Sustainability solid waste; this guarantees the control of Recycling 3.3 18.0 0.0 in security landfills Roadmap impacts and compliance with environmental Composting 0.0 0.0 0.0 with authorized regulations. suppliers. There Relationship With Incineration 3.7 0.6 0.0 was an increase Since 2017 we signed an agreement in the generation Our Stakeholders with the company Econciencia S.A.S. aiming Security Landfill 6 16.3 66.9 of this type of waste, which is to reuse all recycled waste generated by On-site storage 0.0 0.0 0.0 Financial Performance explained by the the Company, which was collected at 62 Injection in deep wells 0.0 0.0 0.0 increase in work in ecological points. Within the framework the construction High Operational phase of the mining Unclassified 0.0 0.0 Standards of this agreement, in 2018 we managed 0.0 project a total of 114,815 kilograms of recyclable Total non-hazardous Our People material, which had an equivalent cost of COP waste by disposal 54.5 117 277 75,700,000. method Community and In addition, we continue with the monthly Internal or external reuse 0.0 0.0 0.0 Regional Development removal and final disposal (post-consumption Recycling 27 72.5 108.2 In 2018, the or security landfill) of hazardous waste with transformation of Environment the company Ecologística S.A.S., certified by Composting 0 3.8 36.6 organic waste into compost increased; the environmental authority. Sanitary Landfill 23.4 41.1 132.3 this, because of Regional Development Dump 0.0 0.0 0.0 the increase of the and Institutional working population Strengthening Incineration 0.0 0.0 0.0 within the Project and of the Injection in deep wells 0.0 0.0 0.0 construction work Appendix Unclassified 0.0 0.0 0.0
Total waste disposed GRI Table 33.1 58 199 (tons) Disclaimers Training on recycling at the Santa Gema Educational Institution Back to table of contents in Higabra, Buriticá.
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 90 2018
ENERGY Message from the CEO (GRI 302-1) and Country Manager Energy consumption showed a decrease due to the withdrawal of several About the Report drilling machines and the scheduled shutdowns of the smelting plant for activities of the construction phase of the Project. The total energy About Us consumed was purchased from Empresas Públicas de Medellín.
Corporate Governance Energy consumption (GJ) 2016 2017 2018
Total internal energy 13,337 138,034 30,654 Our Sustainability consumption (GJ) Roadmap Energy purchased kWh 8,975 38.342,904 8,515,116* Relationship With * The 2017 increase is due to higher activity of drilling machines. Our Stakeholders ENVIRONMENTAL EDUCATION Financial Performance For three years, we have carried out continuous work in order to create an High Operational environmental culture both in the communities of the area of influence and, Standards specifically, in the campus of the Santa Gema Educational Institution; At the end of 2018, six of its campuses enjoyed the benefits of the Environmental Our People Education Program (Higabra, Angelina, Mogotes, El Naranjo, Alto Obispo and Buriticá town center). Community and In 2018, we continued the execution of the School Environmental Projects Álvaro Higuita, participant of Regional Development (PRAE for its acronym in Spanish) and the Citizen Projects of Environmental the Payment for Education (Proceda for its acronym in Spanish), as well as the implementation Environmental Services program in Buriticá. Environment of phase 3 of the Historical and Cultural Heritage in the Veredas (rural districts) Los Asientos, Higabra, Mogotes and Alto del Obispo, in the Corregimiento SOIL REHABILITATION Regional Development (the smallest administrative unit) of La Angelina, in the urban area of Buriticá (CNL1) and Institutional and in the administrative headquarters of Continental Gold. As part of our commitment to the rehabilitation Strengthening of the deposits of the Yaraguá mine and the execution of the closure plan, to date we have Appendix 2017 2018 Campuses of the Santa Gema Educational Institution managed to rehabilitate 11,148.89 square 4 6 GRI Table benefited from the Environmental Education Program meters (1.1 hectares) which corresponds to Number of participants in PRAE processes 1,410 1,756 53.43% of the areas to be recovered. This Disclaimers rehabilitation has been possible through the Number of participants in Proceda 1,022 1,009 revegetation of slopes and plantings of native Total hours in environmental education to 462 563 species. All of our mining operations have a communities (PRAE and Proceda) Back to table of contents closure plan since project planning.
CONTINENTAL GOLD | Modern Mining Regional Development and Institutional Strengthening
170 members Trust, the start of social transformation of community action boards trained in We joined efforts that strengthen local governments via technical assistance, which use different subject area experts. Public officials are trained in project planning, drafting projects for fundraising purposes, submission, etc. Education, training, and vision are essential for mid- political training and term and long term success. In the photo, representatives from the Higabra fish farm project, beneficiaries of Siembra Futuro (Future Harvest). citizen participation. SUSTAINABILITY REPORT 92 2018
(GRI 103-1, 103-2, 103-3, CNL18) Message from the CEO and Country Manager We promote surveillance and social control of n Continental Gold, we investments and prioritization processes, the design About the Report promote sustainability through cooperation, and structuring of investment projects that consolidate About Us institutional strengthening and alliances with local and promote local economic development Corporate Governance I and regional organizations such as Mayor’s Offices, Our Sustainability municipal and departmental These programs are carried out through strategic alliances: Roadmap entities, community action boards, Strengthened Institution Objectives and allies among others, seeking to strengthen Relationship With the positive impacts of our Project on We strengthened the skills of the community action boards in the area of direct influence in Our Stakeholders regional development. La Angelina rural subdivision, in Alto del Obispo, Murrapal and Los Asientos rural districts, in Community action »» Promote social control, matters of political training (111 attendees), citizen participation and community development Financial Performance boards in Buriticá participation of citizens, and their (61 attendees). High Operational organizations seeking to improve Allies: Corporación Universitaria Minuto de Dios, Bello branch. Standards the planning and identification of Forum of political and citizen participation with the members of the communal action boards strategic investments and those of the municipality of Buriticá, on the importance of the establishment of Asocomunal (30 Our People with an impact on the community Asocomunal attendees), held in the rural subdivision of Tabacal. in order to access public resources Allies: Corporación Universitaria Minuto de Dios, Bello branch, and Buriticá´s Mayor’s Office. Community and (especially royalties). Regional Development »» Promote surveillance and We strengthened skills in transparency and accountability, especially in councilors and social control of investments leaders. Buriticá´s Mayor’s Office Environment and prioritization processes, Allies: International Republican Institute (IRI) and municipal authorities of Buriticá. the design and structuring Regional Development of investment projects that and Institutional We were part in the structuring of the Local Economic Development Plan (DEL). In Buriticá consolidate and promote local Mayor’s Offices of Strengthening we joined the development of prioritized production chains: coffee, beans, sugar cane, and economic development. Buriticá, Cañasgordas, mining supplies; in Santa Fe de Antioquia, the tourism and coffee production chains; and in and Santa Fe de Appendix Cañasgordas we partook with banana and coffee projects. Antioquia Allies: Antioquia’s Governor’s Office and Federation of Canadian Municipalities. GRI Table Mayor’s Offices of Disclaimers Buriticá, Cañasgordas, We offered technical assistance and encouraged fund linkage to leverage the implementation and Santa Fe de of municipal development plans. Antioquia
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CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 93 2018
Message from the CEO We supported public administrations and Country Manager via joint local institutional About the Report strengthening processes. This was done by identifying different allies About Us in the territory, with the help of the Economía Urbana consulting firm, Corporate Governance which carried out technical assistance and accompanied Municipal Our Sustainability government officials in project Roadmap formulation and submission. We also strengthened our alliance Relationship With with the Federation of Canadian Our Stakeholders Municipalities and their Sustainable and Inclusive Communities in Latin Financial Performance America (CISAL) Program, which High Operational implements strategies for regional Standards articulation and strengthens governance and administrative Our People capacities in local officials, companies, and governments. Community and The intention is to contribute to Regional Development regional sustainability processes and try to implement procedures and Environment municipal development resources that focus on sustainability. Regional Development and Institutional View of the main park Strengthening in Buriticá
Appendix
GRI Table
Disclaimers
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CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 94 2018
Message from the CEO and Country Manager
About the Report RESEARCH ON THE GOVERNANCE OF GOLD About Us MINING IN BURITICÁ Corporate Governance With the purpose of generating a better knowledge and making public policy proposals on mining governance Our Sustainability in Antioquia and Colombia, in 2017 we established an Roadmap agreement with the Faculty of Government and Political Sciences of EAFIT University of Medellin and Proantioquia Relationship With (Foundation for the Progress of Antioquia), to conduct Our Stakeholders a research focused on community resilience and public- private coordination. Financial Performance In 2018, we presented the preliminary results at the High Operational headquarters of our Company in Medellin, in Proantioquia Standards and to the research partners. In 2019, we plan to edit an Meeting of the Local Development Plans (DEL) academic publication. Promotion Committees of the municipalities of Cañasgordas, Santa Fe de Antioquia and Buriticá, for Our People The most relevant research results are: the exchange of lessons learned and action planning. »» Main problems of the municipality. Community and Compared results of confidence level Regional Development The purpose of the Local Economic Mining Development Plan was to Global Latin American National Antioquia Municipalities Medellín Buriticá promote the articulation between Average Average Average Average Environment Average the different entities of the municipality and make a diagnosis 50 % 43 % 51 % 51 % 53 % 55 % 48 % Regional Development of the needs of the territory to and Institutional generate local economic growth, Strengthening both in rural and urban areas. ” »» The level of confidence in the municipality is well »» Continental Gold has the opportunity to boost trust below the average: worldwide, 50%; national, 61%; processes working along with academia, the Church, Appendix Natalia Úsuga Pérez, director of the Municipal Unit for Technical from mining contexts, 52%, and Buriticá, 42%. the Army and social organizations. Assistance to Agriculture and However, it was noticed that the level of confidence »» The construction of State and peace converges in GRI Table Fishing (UMATA) in Buriticá. in Continental Gold and the presence of the State favor of dialogue between formal institutions and Disclaimers in the territory are two of the factors that increase informal relations depending on the territory the credibility of the people of Buriticá in municipal authorities. Back to table of contents
CONTINENTAL GOLD | Modern Mining Annexes SUSTAINABILITY REPORT 96 2018
Message from the CEO and Country Manager LEGAL COMPLIANCE (GRI 419-1) About the Report In 2018, we received two fines for non-compliance with the regulations: About Us Coverage of material aspects and audited indicators Issuing Internal External Material issue Audited Indicators Corporate Governance organization / Reason Amount coverage coverage party Occupational health 403-2: Types of injury and rates of injury, occupational diseases, lost X X Our Sustainability Adjustments made and safety days, and absenteeism, and number of work-related fatalities. COP 28,990,146 Roadmap to the social security UGPP (USD 9,806 Human Resources X X 401-1: New employee hires and employee turnover. payment corresponding Continental Gold IP’s own indicator (CNL3): Percentage of employees to 2013. Local employment X X Relationship With who are part of local communities. Our Stakeholders National Directorate of Taxes and Voluntary correction Social impact 413-2: Operations with significant actual and potential negative COP 3,404,000 X Customs (Dirección of withholding at the management impacts on local communities. Financial Performance (USD 1,151) de Impuestos y source statements for Local economic X 203-1: Infrastructure investments and services supported. Aduanas Nacionales, the 2017 period. development High Operational DIAN) 303-1: Water withdrawal by source. Standards Environmental X X 304-3: Habitats protected or restored management IP (CNL12): Volume of tails to deposits. Our People One of the fines was submitted for legal Construction and X IP (CNL14): Meters of drilling achieved in 2018 dispute resolution: We appealed the fine exploration Community and by the UGPP (Colombian Department of Ethics and 205-2: Communication and training about anti-corruption policies Regional Development Pension and Parafiscal Compliance). The Corporate X X and procedures. court ruled in our favor determining that the government Environment 201-1: Direct economic value generated and distributed. UGPP had made a mistake in its liquidation Organizational X 102-26: Role of highest governance body in setting purpose, values, process. The values were corrected in favor performance and strategy. Regional Development of Continental Gold. and Institutional Regional During the reporting period, we do not development IP (CNL18): Institutional strengthening via training and technical Strengthening X receive significant fines or non-monetary and institutional assistance. strengthening Appendix sanctions for non-compliance with Security and illegal 410-1: Security personnel trained in human rights policies or environmental laws or regulations. X mining procedures. GRI Table 307-1: Non-compliance with environmental legislation and Standards and regulations. X X Disclaimers compliance 419-1: Non-compliance with the laws and regulations in social and economic areas Relationship with X X IP (CNL7): Dialogue with Continental Gold Sessions stakeholders Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 97 2018
Message from the CEO Responsabilities of Continental and Country Manager Gold and Deloitte Managemnet MEMORANDUM OF INDEPENDENT REVIEW About the Report »» The preparation of the Continental Gold 2018 Sustainability Report, as well as its content, is the About Us responsibility of the organization, which is also Independent Verification responsible for defining, adapting and maintaining Corporate Governance of the 2018 Sustainability Report the management, and internal control systems from which the information is obtained. Our Sustainability Scope of our work Roadmap We have carried out the review of the adaptation of the contents of the 2018 »» Our responsibility is to issue an independent Sustainability Report of Continental Gold to the Consolidated Set of GRI Standards report based on the procedures applied in our review. Relationship With for the preparation of sustainability reports, hereinafter “GRI Standards”. Our Stakeholders »» This Report has been prepared exclusively in the Standards and verification processes interest of the organization in accordance with the Financial Performance We have carried out our work in accordance with ISAE 3000 - International terms of our service proposal. We do not assume High Operational Standard on Assurance Engagements Other than Audits or Reviews of Historical any responsibility towards third parties other than Standards Financial Information issued by the International Auditing and Assurance the Company’s Management. Standard Board (IAASB) of the International Federation of Accounts (IFAC). »» We have carried out our work in accordance with Our review work has consisted in the formulation of questions to the Our People the standards of independence required by the administration, as well as to the various areas of Continental Gold that have Code of Ethics of the International Federation of Community and participated in the preparation of the 2018 Sustainability Report and in the Accountants (IFAC). Regional Development application of certain analytical procedures and sampling review tests that they described below: »» The scope of a limited review is substantially Environment »» Interviews with Continental Gold employees to learn about the principles, less than that of an audit. Therefore, we do not provide an audit opinion on the Sustainability systems and management approaches applied to prepare the Report. Report. Regional Development »» Analysis of how, based on the materiality exercise, the contents, structure and Institutional and contents of the report are defined, as suggested by the GRI Standards. Strengthening »» Analysis of the processes to collect and validate the data presented in the Appendix report. »» Verification, by means of review tests based on the selection of a sample of GRI Table the quantitative and qualitative information corresponding to the GRI and internal contents included in the Sustainability Report, and its adequate Disclaimers compilation, based on the data provided by Continental’s sources of Deloitte & Touche Ltda. information. Jorge Enrique Múnera D. Partner Back to table of contents Medellín, agosto 2019
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 98 2018
Message from the CEO and Country Manager It is confirmed that the 2018 About the Report GENERAL DISCLOSURES (CONT.) It was confirmed that the report meets the requirements of Continental Gold Sustainability Report About Us GRI Standards: Core option, regarding the general disclosures. is prepared in accordance with
Corporate Governance Specific basic contents: the core option of the GRI Standards. We review the management approach and GRI content of the Our Sustainability following material matters: Roadmap CONCLUSIONS As a result of our review, no aspect has been revealed that Relationship With ANNEX 1. GRI Table makes us believe that the Sustainability Report of Continental Our Stakeholders Material topics GRI indicator and / or internal (CGL) Gold contains significant errors or has not been prepared in 403-2. Types of injuries and rates of injuries, occupational diseases, accordance with the GRI Standards: Core option. Occupational Health and Safety Financial Performance lost days and absenteeism, and number of work-related death. 401-1. Total number and hiring rate and average employee turnover, Talent High Operational broken down by age group, sex and region. Standards 303-1. Water withdrawal by source. Main observations & recommendations Environmental management 1 304-3. Habitats protected or restored. against GRI and WBCSD principles Our People Internal. Queue volume to deposits. Construction and exploration Internal. Percentage of employees belonging to local communities. Accuracy / Information collection processes Community and Internal. Drilling meters executed. General Remarks: deloitte highlights the commitment to 410-1. Security personnel trained in human rights policies or Regional Development Drilling meters executed report management indicators that adequately present the procedures. company’s impact on economic, social, and environmental Local Employment Internal. Percentage of employees belonging to local communities. Environment issues. Regional development and Internal. Training and technical assistance for institutional institutional strengthening strengthening. Regional Development 413-2. Operations with significant negative impacts - real or potential - Recommendations and Institutional Social Impact Management in local communities. It is recommended to strengthen the process of collection, Strengthening Relationship with interest groups Internal. Dialogue with Continental Gold. control and traceability of the information through files Local economic development 203-1. Infrastructure investments and supported services and procedures that allow those responsible to have the Appendix 205-2. Communication and training on anti-corruption policies and Ethics and corporate governance procedures. methodological route of the data since this allows monitoring GRI Table 201-1. Direct economic value generated and distributed. the different figures and evidences regarding the reported data. Organizational performance 102-26. Role of the highest governance body in the selection of This precision allows interest groups to evaluate the company’s Disclaimers objectives, values and strategy. performance through complete and reliable information. 307-1. Breach of environmental legislation and regulations. Standards and compliance 419-1. Breach of laws and regulations in the social and economic fields. 1 “World Business Council for Sustainable Development”. Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 99 2018
Message from the CEO and Country Manager
About the Report Materiality ANNEX 2. Declaration of independence About Us The company is committed to develop a sustainability strategy Deloitte is a global leader in audit and assurance services, consulting, aligned with its overall strategy financial advice, risk advice, taxes and related services. Our network Corporate Governance of member firms present in more than 150 countries and territories Recommendations serves four out of every five companies listed in Fortune Global 500®. Our Sustainability Deloitte recommends updating the current materiality, with special Learn how approximately 286,000 Deloitte professionals generate an Roadmap emphasis on the associated GRI and Internal indicators, to ensure impact that transcends www.deloitte.com their relevance, scope and management. Having a materiality that We confirm our independence from Continental Gold. All our Relationship With reflects the issues relevant to Continental Gold and its stakeholders, employees make annual updates to the Ethics Policy where we promptly Our Stakeholders allows capitalizing on sustainability as a strategic position of the declare that we have no conflicts of interest with Continental Gold, its company and managing and evaluating in a timely manner the subsidiaries and its stakeholders. Financial Performance performance of these issues for decision making. Deloitte se refiere a una o más firmas de Deloitte Touche Tohmatsu Limited (“DTTL”), y su High Operational red global de firmas miembro y de entidades relacionadas. DTTL (también denominada Standards “Deloitte Global”) y cada una de sus firmas miembro son entidades legalmente separadas e independientes. DTTL no presta servicios a clientes. Por favor revise www.deloitte.com/about para conocer más. Our People Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms and their related entities. DTTL (also referred to as “Deloitte Community and Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn Regional Development more. Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, Environment risk advisory, tax and related services. Our network of member firms in more than 150 countries and territories serves four out of five Fortune Global 500®companies. Learn how Deloitte’s approximately 264,000 people make an impact that matters at Regional Development www.deloitte.com. and Institutional This communication contains general information only, and none of Deloitte Touche Strengthening Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your Appendix business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. GRI Table © 2019. For information, contact Deloitte Touche Tohmatsu Limited Disclaimers
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CONTINENTAL GOLD | Modern Mining GRI Table SUSTAINABILITY REPORT 101 2018
GRI TABLE CONTENTS (GLOBAL REPORTING INITIATIVE) (GRI 102-55) Message from the CEO GRI Contents Location Omissions and Country Manager Standard GRI 102: Contenidos generales About the Report Organization profile 102-1 Name of the organization. About Us 102-2 Activities, brands, products and services. 102-3 Location of headquarters. Corporate Governance Chapter: Who we are. 102-4 Location of operations. Our Sustainability 102-5 Legal ownership and structure. Roadmap 102-6 Markets served. 102-7 Size of the organization. Chapter: Who we are. Relationship With 102-8 Information regarding employees and other workers. Chapter: Our people, section: Employment data 2018. Our Stakeholders Chapter: Who we are. Chapter: High operational standards, 102-9 Supply chain. section: Supply chain Financial Performance 102-10 Significant changes in the organization and its supply chain. Chapter: High operational standards, section: . Chapter: Environment, section: Environmental management 102-11 Precautionary principle or approach. High Operational system. Standards 102-12 External initiatives. Chapter: Corporate government. 102-13 Joining associations. Our People Strategy 102-14 Statement by senior executives responsible for decision making. Chapter: Message from our CEO and Country Manager. Community and 102-15 Main impacts, risks and opportunities. Chapter: Corporate government, section: Risk management Regional Development Ethics and integrity Chapter: Corporate government, section: Ethics and integrity. 102-16 Values, principles, standards and rules of conduct. Environment Chapter: Our people, section: Human resource management. Governance Regional Development 102-18 Governance structure. Chapter: Corporate government. and Institutional Involvement of stakeholders Strengthening 102-40 List of stakeholders. 102-41 Collective negotiation agreements. Appendix 102-42 Identification and selection of stakeholders. Chapter: Relationship with our stakeholders. 102-43 Approach to the involvement of stakeholders. GRI Table 102-44 Discussed key issues and concerns. Disclaimers Practices for report preparation 102-45 Entities included in the consolidated financial statements. Chapter: About the report. Definition of the contents of the reports and the coverage Chapter: Our Sustainable Roadmap. 102-46 of the subject. section: Materiality analysis Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 102 2018
GRI Contents Location Omissions Message from the CEO Standard and Country Manager Chapter: Our sustainability roadmap, 102-47 List of material issues section: Materiality analysis About the Report 102-48 Re-statement of information N/A Chapter: Our sustainability roadmap, 102-49 Changes in report preparation. About Us section: Materiality analysis. 102-50 Reporting period. Corporate Governance 102-51 Date of the last report. Chapter: About the report.. 102-52 Reporting cycle. Our Sustainability 102-53 Contact point for questions about the report. Cover. Roadmap Statement that the report was prepared in accordance with GRI 102-54 Chapter: About the report. Standards. Relationship With 102-55 Table of contents GRI Table. Our Stakeholders 102-56 External verification. Appendix Material issue: Organizational performance Financial Performance Related GRI contents: Management approach 2018 / Economic performance 2018 / General contents 2018 Chapter: Economic performance. 103-1 Explanation of material issue and its limits. Chapter: Corporate government, table: Functions and mandates High Operational of the highest governance body Standards Chapter: Economic performance 103-2 Management approach and its components. Chapter: Corporate government, table: Functions and mandates Our People of the highest governance body Chapter: Economic performance 103-3 Management approach evaluation. Chapter: Corporate government, table: Functions and mandates Community and of the highest governance body. Regional Development 201-1 Direct economic value generated and distributed. Chapter: Economic performance. Chapter: Economic performance. Role of highest governance body in setting purpose, values, Environment 102-26 Chapter: Corporate government, table: Functions and mandates and strategy. of the highest governance body Regional Development Material issue: Occupational health and safety and Institutional Related GRI contents: Management approach 2018 / Occupational health and safety 2018 Strengthening 103-1 Explanation of material issue and its limits 103-2 Management approach and its components. Appendix 103-3 Management approach evaluation. Chapter: High operational standards, Types of injury and rates of injury, occupational diseases, lost days, Health and security 403-2 section: GRI Table and absenteeism, and number of work-related fatalities. Workers with high incidence or high risk of diseases related to their 403-3 Disclaimers occupation. The arbitral award with the union covers occupational safety Health and safety issues addressed in formal agreements with 403-4 and health issues. Our OSH Management Program is aimed at all trade union. employees, whether or not they belong to the union. Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 103 2018
GRI Contents Location Omissions Message from the CEO Standard and Country Manager Material issue: Social impact management Related GRI contents: Management approach 2018 / Local communities 2018 / Rights of indigenous peoples 2018 / Mining and Metal Sector Supplement About the Report 103-1 Explanation of material issue and its limits. Chapter: Community and regional development, 103-2 Management approach and its components. About Us section: Social impact management 103-3 Management approach evaluation. There are no indigenous peoples in the area of influence Corporate Governance 411-1 Cases of violations of the rights of indigenous peoples. of the operations of Continental Gold. Operations with local community participation, impact assessments 413-1 Our Sustainability and development programs. Chapter: Community and regional development, Roadmap Operations with significant actual and potential negative impacts on section: Social impact management 413-2 local communities. Relationship With Total number of operations taking place within or adjacent to Our Stakeholders GRI-MM5 Sector territories of indigenous peoples, and number and percentage Continental Gold does not have operations within Supplement of operations or sites where there are formal agreements with or adjacent to the territories of indigenous peoples. indigenous peoples communities. Financial Performance Sites where resettlements were carried out, number of resettled GRI-MM9 families at each site and how their livelihoods were affected in the There were no resettlements. High Operational process. Continental Standards Mine closure planning: number and percentage of operations with Gold Internal Chapter: Environment, section: Soil remediation. intentions to closee. Indicator (CNL1) Our People Social investment value Chapter: Community and regional development, CNL2 section: Education, culture and quality of life. Community and Chapter: Community and regional development, CNL 16 Claims for social impacts. Regional Development section: section: Social impact management. Chapter: Community and regional development, CNL 17 Claims on human rights. Environment section: Human Rights: Respect and Security. Material issue: Local economic development. Regional Development Related GRI contents: Management approach 2018 / Indirect economic impacts 2018 / Acquisition practices 2018 103-1 Explanation of material issue and its limits. and Institutional Chapter: Community and regional development, section: Profit 103-2 Management approach and its components. Strengthening maximization. 103-3 Management approach evaluation. Chapter: Community and regional development, section: Profit Appendix 203-1 Infrastructure investments and services supported. maximization and Education, culture and quality of life. GRI Table 204-1 Proportion of expenditure on local suppliers. Chapter: High operational standards, section: Supply chain.
Disclaimers
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CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 104 2018
GRI Contents Location Omissions Message from the CEO Standard and Country Manager Contents Material issue: Local employment. About the Report Related GRI contents: Management approach 2018 103-1 Explanation of material issue and its limits. About Us 103-2 Management approach and its components. Chapter: Our people, section: Human resource management. 103-3 Management approach evaluation. Corporate Governance CNL3 Percentage of employees who are part of local communities. Our Sustainability Material issue: Regional development and institutional strengthening Roadmap Related GRI contents: Management approach 2018 103-1 Explanation of material issue and its limits. Relationship With 103-2 Management approach and its components. Our Stakeholders 103-3 Management approach evaluation. Chapter: Regional development and institutional strengthening. Number of training sessions on royalty issues prepared for Financial Performance CNL18 municipal administration officials of the four municipalities in the area of influence. High Operational Material issue: Ethics and Corporate Government Standards Related GRI contents: Management approach 2018 / General contents 2018 / Anti-corruption 2018 103-1 Explanation of material issue and its limits. Our People 103-2 Management approach and its components. 103-3 Management approach evaluation. Community and 102-17 Advisory mechanisms and ethical concerns. Chapter: Corporate government. Regional Development Executive-level responsibility of economic, environmental and social 102-20 issues. Environment 102-22 Structure of the highest governance body and its committees. The president of the highest governance body is not an executive 102-23 President of the highest governance body. Regional Development of the organization. and Institutional Chapter: Corporate government, table: Functions and mandates 102-24 Nomination and election of the highest governance body Strengthening of the highest governance body. Chapter: Corporate government, table: Functions and mandates 102-25 Conflicts of interest. of the highest governance body. Appendix Identification and management of economic, environmental and Chapter: Corporate government, table: Functions and mandates 102-29 social impacts. of the highest governance body. GRI Table Chapter: Corporate government, table: Functions and mandates 102-30 Effectiveness of risk management processes. of the highest governance body. Disclaimers Chapter: Corporate government, table: Functions and mandates 102-31 Evaluation of economic, environmental and social issues. of the highest governance body. Role of the highest governance body in the preparation of 102-32 Chapter: About the report. sustainability reports. Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 105 2018
GRI Contents Location Omissions Message from the CEO Standard and Country Manager 102-33 Communication of critical concerns. Chapter: Corporate government, section: Risk management. About the Report 102-34 Nature and total number of critical concerns. 205-1 Operations evaluated for corruption-related risks. Chapter: Corporate government, section: Ethics and integrity. About Us Communication and training about anti-corruption policies and Not reported 205-2 Cases of corruption are not listed, but those of unethical procedures. behavior. business partner information. Corporate Governance 205-3 Confirmed corruption cases and measures taken. Material issue: Standards and compliance Our Sustainability Related GRI contents: Management approach 2018 / Environmental compliance 2018 / Socio-economic compliance 2018 Roadmap 103-1 Explanation of material issue and its limits. 103-2 Management approach and its components. Chapter: Our sustainability roadmap. Relationship With 103-3 Management approach evaluation. Chapter: Environment, section: Environmental management Our Stakeholders 307-1 Non-compliance with environmental legislation and regulations. system. Non-compliance with the laws and regulations in social and 419-1 Appendix Financial Performance economic areas. CNL6 Percentage of gap narrowing in accordance with the IFC Standard. In 2018 there was no gap analysis High Operational Material issue: Relationship with stakeholders Standards Related GRI contents: Management approach 2018 103-1 Explanation of material issue and its limits Our People 103-2 Management approach and its components Chapter: Relationship with our stakeholders 103-3 Management approach evaluation Community and CNL7 Diologues with Continental Gold Regional Development Material issue: Security and illegal mining Related GRI contents: Management approach 2018 / Security practices 2018 Environment 103-1 Explanation of material issue and its limits. 103-2 Management approach and its components. Chapter: Community and regional development, section: Social Regional Development 103-3 Management approach evaluation. impact management, subsection: Security and human rights. and Institutional 410-1 Security personnel trained in human rights policies or procedures. Strengthening Company’s production centers where there is informal mining, and Chapter: Community and regional development, CNL8 risks associated with it, as well as measures taken to manage and section: Formalization of small-scale miners. Appendix mitigate said risks. Material theme: Environmental management GRI Table Related GRI content: Management approach 2018 / Water 2018 / Effluents and waste 2018 / Biodiversity 2018 103-1 Explanation of material issue and its limits. Disclaimers 103-2 Management approach and its components. Chapter: Environment. 103-3 Management approach evaluation. 302-1 Energy consumption within the organization. Chapter: Environment, section: Energy.
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CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 106 2018
GRI Contents Location Omissions Message from the CEO Standard and Country Manager 303-1 Water withdrawal by source. Chapter: Environment, section: Water. The indicator is partially reported About the Report CNL9 Specific water consumption. Chapter: Environment, section: Water. due to construction of the Water Treatment Plant (WTP). About Us 306-1 Water discharge according to its quality and destination. Chapter: Environment, section: Water. 305-1 GHG emissions Scope 1. Chapter: Environment, section: Atmospheric emissions. Corporate Governance 305-2 GHG Emissions Scope 2. 306-2 Waste by type and method of disposal. Chapter: Environment, section: Solid waste. Breakdown of expenses and investments for environmental Our Sustainability CNL10 Roadmap protection. Chapter: Environment, section: Environmental Management Number of environmental claims that have been submitted, System. CNL11 addressed and resolved through formal complaint mechanisms. Relationship With 304-3 Habitats protected or restored. Our Stakeholders Species that appear on the IUCN Red List and on national Chapter: Environment, section: Biodiversity. 304-4 conservation lists whose habitats are in areas affected by Financial Performance operations. Chapter: High operational standards, section: Safe handling of CNL12 Tailings volume sent to deposits. High Operational materials. Standards Material issue: Human Resources Related GRI contents: Management approach 2018 / Employment 2018 / Worker-company relationship 2018 / Training and education 2018 / Diversity and equal opportunities 2018 / Mining and Metal Sector Supplement Our People 103-1 Explanation of material issue and its limits 103-2 Management approach and its components. Community and 103-3 Management approach evaluation. Regional Development Chapter: Our people, section: Working practices. Hiring and turnover rates are not 401-1 New job contracts and employee turnover broken-down by gender age and Environment region. Employee benefits given to full-time employees but not provided to 401-2 Chapter: Our people, section: Wellbeing at work. Regional Development part-time employees nor temporary workers. and Institutional The Company has not established minimum notice periods; Minimum advanced notice for operational changes and possible however, it is working on the implementation of a Change 402-1 Strengthening inclusions of these changes in collective agreements Management Model to make a detailed planning and analysis of the changes to be implemented. Appendix 404-1 Average hours of training per year per employee. Chapter: Our people, section: Training and development. Percentage of employees receiving regular performance and career 404-3 Chapter: Our people, section: Training and development. GRI Table development reviews. Structure of the governing bodies and breakdown of the workforce Age and ethnical information Disclaimers 405-1 by professional category, sex, age, if belongs to minorities and other Chapter: Corporate government. is not presented for Board of diversity indicators. Director members. G4-MM4 Number of strikes and closures longer than one week, per country. Chapter: Our people, section: Working practices. CNL15 Claims for working practices. Chapter: Our people, section: Working practices. Back to table of contents
CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 107 2018
GRI Contents Location Omissions Message from the CEO Standard and Country Manager Contents Material issue: Construction and Exploration About the Report Related GRI contents: Management approach 2018 / Security practices 2018
About Us 103-1 Explanation of the material issue and its limits. Chapter: High operational standards, section: Construction 103-2 The management approach and its components. and exploration. Corporate Governance 103-3 Evaluation of the management approach.
Global physical progress of construction. Chapter: High operational standards, section: Construction. Our Sustainability CNL13 Roadmap CNL14 Drilling meters Chapter: High operational standards, section: Exploration.
Relationship With Our Stakeholders
Financial Performance
High Operational Standards
Our People
Community and Regional Development
Environment
Regional Development and Institutional Strengthening
Appendix
GRI Table
Disclaimers
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CONTINENTAL GOLD | Modern Mining SUSTAINABILITY REPORT 108 2018
Message from the CEO DISCLAIMERS and Country Manager
About the Report Forward-Looking Statements: For More Information Certain statements contained in this report constitute forward-looking statements More detailed information regarding our financial and operational results and infor- About Us or forward-looking information within the meaning of applicable securities laws mation for the reporting period can be found in the Annual Information Form, 2018 and are referred to herein as “forward-looking statements”. Such statements Annual MD&A and Financial Statements, and the Information Circular. Unless other- include, without limitation, statements regarding the Company’s future plans in Corporate Governance wise stated, all references to “USD” means United States dollars. “Continental Gold” the areas of sustainable development, health, safety, environment and community or “Company” refer to Continental Gold Inc. and / or its subsidiaries. This report development. Such statements reflect the Company’s views as at the date of this contains non-GAAP (“generally accepted accounting principles”) measures. These Our Sustainability report and are subject to certain risks, uncertainties and assumptions, and undue performance measures have no meaning within International Financial Reporting Roadmap reliance should not be placed on such statements. For a detailed discussion of Standards as issued by the International Accounting Standards Board and, there- such risks and other factors that may affect the Company’s ability to achieve the fore amounts presented may not be comparable to similar data presented by other Relationship With expectations set forth in the forward-looking statements contained in this report, mining companies. While the report period is defined officially by the December Our Stakeholders please see Company’s Annual Information Form for the year ended December 31, 31, 2018 end date, early 2019 key developments have also been provided, where 2018 filed with Canadian securities regulators on SEDAR at www.sedar.com Other relevant, for additional context. Financial Performance than as required by law, the Company does not intend, and does not assume any obligation, to update these forward-looking statements. High Operational Standards Cautionary Note Regarding Our People Non-GAAP Financial Measures This sustainability report includes certain terms or performance measures Community and commonly used in the mining industry that are not defined under International Regional Development Financial Reporting Standards (“IFRS”), including cash costs per payable ounce of precious metals sold. While other terms are used to provide additional information Environment regarding ou activities that are relevant for this report. Non-GAAP financial meas- ures do not have any standardized meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures reported by other companies. Regional Development We believe that, in addition to conventional measures prepared in accordance and Institutional with IFRS, certain investors use this information to evaluate our performance. The Strengthening data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared Appendix in accordance with IFRS. These non-GAAP measures should be read in conjunction with our consolidated financial statements and our management’s discussion and GRI Table analysis, available under our corporate profile at www.sedar.com or on our website at https://www.continentalgold.com/en/investors/financials-and-filings/ Disclaimers
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CONTINENTAL GOLD | Modern Mining Message from the CEO and Country Manager
About the Report
About Us
Corporate Governance
Our Sustainability Roadmap
Relationship With Our Stakeholders We continue to build the dream
Financial Performance
High Operational Standards
Our People
Community and Regional Development In memoriam:
Environment
Regional Development Laura Alejandra Flórez Aguirre and Institutional Strengthening Camilo Andrés Tirado Farak Henry Mauricio Martínez Gómez Appendix Óscar Alarcón Gallo
GRI Table
Disclaimers
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