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Towards-Sustauinable-Mining-Report 2018 2018 Progress Report Table of Contents Introduction About Towards Sustainable Mining® (TSM®) 3 TSM Guiding Principles 4 Message from the Chair of the TSM Governance Team and MAC’s President and CEO 5 2017 Statement from the Community of Interest Advisory Panel 7 How TSM Works 11 Industry Performance Understanding the Results 15 Communities and People 16 Aboriginal and Community Outreach 16 Crisis Management and Communications Planning 17 Safety and Health 19 Preventing Child and Forced Labour 21 Environmental Stewardship 25 Tailings Management 25 Biodiversity Conservation Management 27 Energy Efficiency 32 Energy Use and GHG Emissions Management 32 International Application of TSM 35 TSM Awards TSM Excellence Awards 47 TSM Leadership Awards 50 TSM Performance by Company 51 © 2018 The Mining Association of Canada. Trademarks, including but not limited to Towards Sustainable Mining®, TSM®, and the diamond shaped figure arcs and quadrilaterals designs, are either registered trademarks or trademarks of The Mining Association of Canada in Canada and/or other countries. TSM Progress Report 2 2018 Introduction About Towards Sustainable Mining Towards Sustainable Mining ® (TSM®) is an award-winning performance system that helps mining companies evaluate and manage their environmental and social responsibilities. It is a set of tools and indicators to drive performance and ensure that key mining risks are managed responsibly at participating mining and metallurgical facilities. Mining companies that participate in the TSM initiative demonstrate their strong commitment to responsible mining. By adhering to the TSM Guiding Principles, mining companies exhibit leadership by: Committing to the Engaging Driving world-leading safety and health of with communities. environmental practices. employees and surrounding communities. Established in 2004 by the Mining Association of Canada (MAC), TSM’s main objective is to enable mining companies to meet society’s needs for minerals, metals and energy products in the most socially, economically and environmentally responsible way. At its core, TSM is: Accountable Credible Participation in TSM is mandatory for all MAC TSM is overseen by an independent Community of members for their Canadian operations, and many Interest (COI) Advisory Panel. This multi-interest voluntarily apply the program at their operations group helps mining companies and communities abroad. Assessments are conducted at the facility of interest foster dialogue, improve the industry’s level where the mining activity takes place – the performance and shape the TSM initiative for only program in the world to do this in our sector. continual advancement. Transparent Performance driven Mining companies publicly report their facilities’ performance against the TSM indicators in the Includes a requirement to demonstrate measurable annual TSM Progress Report. Results are externally continual sustainability improvement. verified every three years. TSM Progress Report 3 2018 TSM Guiding Principles As members of the Mining Association of Canada, our role is to responsibly meet society’s needs for minerals, metals and energy products. To achieve this, we engage in the exploration, discovery, development, production, distribution and recycling of these products. We believe that our opportunities to contribute to and thrive in the economies in which we operate must be earned through a demonstrated commitment to sustainable development.* Accordingly, our actions must demonstrate a responsible approach to social, economic and environmental performance that is aligned with the evolving priorities of our communities of interest.** Our actions must reflect a broad spectrum of values that we share with our employees and communities of interest, including honesty, transparency and integrity. And they must underscore our ongoing efforts to protect our employees, communities, customers and the natural environment. We will demonstrate In all aspects of our business leadership worldwide by: and operations, we will: Involving communities of interest in the design and Respect human rights and treat those with whom we deal implementation of our TSM initiative. fairly and with dignity. Proactively seeking, engaging and supporting dialogue Respect the cultures, customs and values of people with regarding our operations. whom our operations interact. Fostering leadership throughout our companies to achieve Recognize and respect the unique role, contribution and sustainable resource stewardship wherever we operate. concerns of Aboriginal peoples (First Nations, Inuit and Métis) and Indigenous peoples worldwide. Conducting all facets of our business with excellence, transparency and accountability. Obtain and maintain business through ethical conduct. Protecting the health and safety of our employees, Comply with all laws and regulations in each country contractors and communities. where we operate and apply the standards reflecting our adherence to these guiding principles and our adherence Respecting the rights of our workers and not engaging to best international practices. in practices of forced or child labour, as defined in ILO Conventions 29, 138 and 182. Support the capability of communities to participate in opportunities provided by new mining projects and Contributing to global initiatives to promote the production, existing operations. use and recycling of metals and minerals in a safe and environmentally responsible manner. Be responsive to community priorities, needs and interests Seeking to minimize the impact of our operations on through all stages of mining exploration, development, the environment and biodiversity, through all stages of operations and closure. development, from exploration to closure. Working with our communities of interest to address legacy issues, such as orphaned and abandoned mines. Provide lasting benefits to local communities through self-sustaining programs to enhance the economic, Practising continuous improvement through the application environmental, social, educational and health care standards of new technology, innovation and best practices in all facets they enjoy. of our operations. * MAC draws on the 1987 Brundtland Commission definition of sustainable development: “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” ** We use the term communities of interest to include all of the individuals and groups who have or believe they have an interest in the management of decisions about our operations that may affect them. This includes employees, contractors, Aboriginal or Indigenous peoples, mining community members, suppliers, customers, environmental organizations, governments, the financial community and shareholders. TSM Progress Report 4 2018 Message from the Chair of the TSM Governance Team and MAC’s President and CEO Welcome to the 2018 TSM Progress Report. We are pleased to present a detailed look at our members’ environmental and social performance for 2017. HIGHLIGHTS OF 2017 RESULTS This report includes the 2017 TSM performance results for 67 mining facilities belonging to 23 of our member companies. This year, 24 mining facilities had their results externally verified as part ofTSM’s three-year external verification cycle. Six facilities reported TSM performance for the first time and are included in aggregate graphs for each of the Protocols. Once again, we saw strong performance in many of the TSM Protocols: • 96% report publicly on their engagement and dialogue activities. • 81% conduct crisis simulation exercises. • 99% have formal safety and health management systems. • 75% have senior management commitments to biodiversity conservation in place. • 92% have implemented a tailings management system that is in conformance with MAC’s tailings management guides. • 96% have implemented energy use and GHG emissions management reporting systems. On an aggregate basis, we did see a drop in performance in both Tailings Management and Crisis Management and Communications Planning. These drops are in part due to the addition of new MAC member facilities that are still working to align their systems with TSM requirements. In the area of Tailings Management, seven facilities (including six closed facilities) that previously reported Level As for Indicators 3 and 4 were downgraded to Level Cs and Bs during external verification this year. Additionally, five facilities that previously met all criteria of theCrisis Management and Communications Planning Protocol reported “No” for Indicator 2. These results confirm the value and integrity of TSM’s internal and external verification requirements. MAC has engaged with the companies that have experienced a drop in performance and, consistent with TSM’s intent to drive performance and encourage continuous improvement, these companies have identified corrective actions which are now being implemented. NEW ELEMENTS OF THE REPORT In 2017, MAC added a new Protocol, Preventing Child and Forced Labour, in light of TSM’s growing global presence and the need to contribute to efforts to address these issues. Adherence to this commitment is assessed every three years as part of each facility’s external verification and we are pleased to include the first results in theCommunities and People section of this year’s report. We are also pleased to acknowledge that 100% of the facilities undergoing verification this year were able to demonstrate adherence to this Protocol. In 2017, MAC also adopted
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