2019 SUSTAINABILITY REPORT CREATING VALUE THROUGH RELATIONSHIPS TABLE OF CONTENTS MESSAGE FROM THE CEO AND THE VICE-PRESIDENT OF SUSTAINABILITY ABOUT THE REPORT ABOUT US _ _ _ 9 30 74 SUSTAINABILITY HIGH OPERATIONAL STANDARDS PROTECTION POINT OF CONTACT SUSTAINABILITY AS OPERATIONAL EXCELLENCE EVERYTHING IS POSSIBLE (102-1) (102-53) A ROADMAP FOR ADVANCING IS OUR DRIVING FORCE WHEN YOU FOCUS ON RIGHTS ON EVERY FRONT AND BEING LEGAL Colombia Office _ _ _ Street 7 No. 39-215, of. 1208 El Poblado, Medellín Colombia 15 45 78 (+57) 4 3121026 STAKEHOLDER RELATIONS OUR PEOPLE ENVIRONMENTAL MANAGEMENT WORK, MEASURE, ADJUST, AND EVERYTHING WE DO MODERN MINING, RESPONSIBLE Suggestions and concerns related to ALWAYS KEEP AN OPEN DIALOGUE ADDS GREAT VALUE MINING BY NATURE this report [email protected] _ _ _ Queries can also be sent via postal mail to our Medellin offices or can be delivered directly to the staff at our community Public 21 54 86 Attention Office in Buriticá. CORPORATE GOVERNANCE COMMUNITY AND REGIONAL DEVELOPMENT FINANCIAL PERFORMANCE REMAIN RELEVANT BY BEING WE STRIVE TO BE THE BEST TAKING ON THE CHALLENGE COHERENT AND TRANSPARENT NEIGHBOR OF GROWING TOGETHER _ 67 FORMALIZATION WORKING TOGETHER TOWARD A SUCCESSFUL CO-EXISTENCE ___ On March 5, 2020, Zijin Mining Group (China) acquired _ 100% of Continental Gold’s shares. This 2019 Sustainability Report may, therefore sometimes, reference Continental LEGAL COMPLIANCE Gold instead of Zijin-Continental Gold. You will, however, see the updated company name and logos throughout this publication. GRI TABLE (GLOBAL REPORTING INITIATIVE) The Colombian Peso Market Exchange Rate used for this report is COP 3,281 per US Dollar. LETTER FROM THE CEO – JAMES WANG Go to content (102-14) On March 5, 2020, Zijin Mining Group acquired 100% of throughout the world. Its shares are listed on both the Shanghai Continental Gold’s shares. This happened after a 4-month long Stock Exchange and the Hong Kong Stock Exchange. process when all required steps were taken for the acquisition. I Our work will continue in Colombia. now have the privilege of leading Zijin-Continental Gold. Programs such as the Supply Chain Linkage Program (PEP), Zijin Mining Group is an international mining company with Future Harvest, the Family-Responsible Company (FRC) certifi- operations throughout Asia, Africa, South America, and Oceania. cation, the company’s high operational standards, and its focus Sustainability and employee safety are fundamental pillars of the on creating local jobs, motivated Zijin Mining Group to acquire “Coming to Colombia is no company. I am therefore pleased to reiterate that we share the Continental Gold. The biggest motivation, however, was the coincidence. The Buriticá same values presented in the 2019 Sustainability Report, which human talent we discovered, which has been building this world- are based on GRI standards. We firmly believe wealth is created class Project for years in Colombia. Project will be Colombia’s through harmony. We are determined to build a harmony-filled The company is transitioning into its production phase, as the most advanced underground ecosystem for the company, our employees, and the community. construction of the gold-ore mineral processing plant is 99% fin- Coming to Colombia is no coincidence. The Buriticá Project will ished. Although we face many challenges related to the world- mining project. We are be Colombia’s most advanced underground mining project. We wide COVID-19 crisis, we have demonstrated that we can con- committed to continuing to are committed to continuing to be an example of Modern Mining, tinue contributing to the local, regional, and national economy by which is sustainable and properly executed. implementing and following strict safety protocols. be an example of Modern We came to Colombia with the firm commitment of contributing Zijin-Continental Gold is ready to become the leader in Mining, which is sustainable to Western Antioquia’s development, as we develop the Project. Colombia’s gold mining sector, and its mission is to become the The numbers in this report are therefore essential, as they set the most important mining company in the world by 2030. and properly executed.” roadmap for the work which is ahead. I want to share a little bit of background information related ___ to our group. In 2019, Zijin was listed number 889 on the Forbes James Wang «Global 2000 - The World’s Largest Public Companies.» In 2020, CEO Zijin-Continental Gold it reached number 778. It is the top gold mining company on the list and the top non-ferrous Chinese mining company. Zijin was founded in 1993 in Fujian Province in southeast China. It has been working with metals such as gold, copper, and zinc since the very beginning. In the last few years, it has become a leader in specialized mining and metal refinement, having proj- ects and companies in 24 of China’s provinces and 13 countries 3 / Sustainability Report 2019 / Zijin – Continental Gold LETTER FROM THE VICE-PRESIDENT OF SUSTAINABILITY Go to content We thank you for stopping to read the Zijin-Continental Gold fam- > We’ve participated in the wild-cats conservation alliance, ily’s 2019 extraordinary adventure story. This story showcases helped coffee farmers adopt technical methods, provided the great effort of 4,334 heroes during a 365 day period, which vocational training, environmental education to students, and helped build a mine in Buriticá, expected to transform Western many other things. Antioquia and the lives of the people affected by the project. The generosity of the people who have embraced us is over- We understand there is much more to do, and are aware of our whelming. Thank you to the residents in municipalities within our limitations and of the high expectations which communities and area of influence. The participation of workers, contractors, sup- local authorities have. We are confident that if we act in good “We are confident that pliers, local authorities, religious leaders, the media, Department faith, remain true to our values, and work together, this mining and National Government functionaries, control entities, social project will have a significant and positive impact on Western if we act in good faith, and multilateral organizations, and contractor firms, has been Antioquia. remain true to our values, extraordinary. The report discusses each aspect of our actions (economic, Without the support, quality, and commitment of our people, social, or environmental), with supporting evidence for how and and work together, this we would have never achieved so much. why we acted. It provides details on how short, mid, and long mining project will have Your trust encourages us to improve every day. term goals’ results were measured, as well as an example of a This report highlights how we’ve been able to achieve: successful case. a significant and positive > 91% advancement in construction, and more than than 15,000 Zijin Mining Group, China’s largest diversified metal mining impact on Western meters of tunnels. corporation, acquired Continental Gold at the end of 2019, as part > 20,000 meters in exploration drilling and 69,000 meters within of its plan to become one of the largest mining companies in the Antioquia.” the mine. world by 2030. > 50% of our workforce is from the area, and 20% of our workers The fusion between state-of-the-art technology and experi- are women. ence from the People’s Republic of China, with Colombian exper- > A 60% reduction in recordable injuries even though employee tise, values, labor, and the goodwill of thousands of Colombian numbers almost doubled. citizens will, without a doubt, allow this Project to be com- > Social and environmental investments of COP$14.6 billion missioned as one of the most productive, and technologically and COP$13 billion in purchases from local suppliers. advanced projects, with a major focus on environmental and > Formalization mines’ production has increased fourfold when social responsibility. compared to 2017. ___ > Over 110,000 hours of training have been provided, and we Carlos Franco continue to be a Family-Responsible Company. Vice-President of Sustainability 4 / Sustainability Report 2019 / Zijin – Continental Gold Continental Gold continues on its path toward sustainability in Buriticá and Western Antioquia. It is a process that continually opens up doors, year after year, and sets an example for other companies and industries to follow. Its story is full of people, and enthusiastic professionals, continually dreaming of building bridges and discovering opportunities on the other side of the tunnel. Go to content About the Report (101) The following 2019 Sustainability report is pre- > International Council on Mining and Metals sented to all our stakeholders. It includes the most (ICMM)’s Sustainability Framework. relevant results related to our financial, environmen- > Voluntary Principles on Security and Human Rights. tal, and social performance. It also considers potential > United Nations Guiding Principles on Business and risks that we may face, national and international con- Human Rights (UNGP). texts, our pillars, and company values. (102-12) (102-54) This report was prepared follow- The Organization for Economic Co-operation and ing the Global Reporting Initiative (GRI) Standards: Development (OECD) Due Diligence Guidance for Essential option, and considers the guidelines set forth Responsible Mineral Supply Chains in Conflict-Affected under the GRI Mining and Metals Sector Supplement. and High-Risk Areas. Material issues presented in this The document also considers coincidences in the report were identified during a relevant material issues organization’s efforts with objectives outlined in the exercise, performed at the end of 2019. The issues UN’s Sustainable Development Goals (SDGs). were prioritized and validated by the different stake- (102-45) (102-49) (102-50) (102-51) (102-52) The infor- holders who participated. They are listed in order of mation contained herein corresponds to the period importance: between January 1 and December 31, 2019.