Banro Corporation Is a Canadian Gold Surface Oxide Material
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2013 Sustainability Report Investing in Capacity-Building Jobs &Community Development OUR GOAL IS TO BE A MODEL OF EXCELLENCE IN SUSTAINABILITY With the transition from mineral exploration to mining, Banro’s commitment as an exploration company to leadership in I Mining Permits Corporate Social Responsibility has grown I Exploration Permits into a comprehensive focus on excellence in I Permits Applied For sustainability, encompassing global standards in B environmental management, the creation of capacity- building jobs, a significant investment in community development and much more. Banro’s contributions to responsible economic development in the eastern Congo are expected to grow significantly in the years ahead. Front Cover: A physician and patients in front of the multi-purpose women's health unit at the Panzi General Referral Hospital in Bukavu. The unit was inaugurated in August 2012. Banro Corporation is a Canadian gold surface oxide material. A second mine, located Banro has to date identified 10.18 million exploration and mining company, focused on at the Namoya project and designed to produce ounces of Measured and Indicated Resources, the development of four wholly-owned gold an additional 122,000 ounces of gold per year plus Inferred Resources of 7.01 million ounces.* projects in South Kivu and Maniema provinces during its first five years of production, is In addition to its four projects which hold of the Democratic Republic of the Congo (DRC). currently under construction and scheduled mining licenses and cover 2,613 square kilo - In October 2011, the Company commenced to begin full operations in the fourth quarter meters, Banro also has 14 exploration permits operations at its Twangiza gold mine, the first of 2013. Exploration is ongoing at all four of covering 2,638 square kilometres. Less than commercial gold mine built in the DRC in over the Company’s project areas, including the 12% of this total ground has been explored 50 years. Twangiza is planned to produce Lugushwa and Kamituga projects. using modern techniques. 120,000 ounces of gold per year from the Since beginning exploration in November of 2004, Banro has emerged as one of the largest private sector employers in the eastern DRC, having created jobs directly and through contractors for over 4,000 Congolese citizens. The Company is headquartered in Toronto and trades on the Toronto Stock Exchange and the NYSE MKT under the symbol “BAA.” More information on the Company’s activities and its commitment to Corporate Social Responsibility is available on the Company’s Banro website, www.banro.com, and on the website of the Canadian Securities Administrators, Corporation www.sedar.com, and the SEC's website at www.sec.gov/edgar.shtml. * Information on tonnage and grades is provided on page 27. Message From The Banro Foundation – Governance, contents John Clarke, Interim Creating Jobs & Communities & Environmental Investing In Community Conflicts Minerals & President And CEO Building Capacity Artisanal Miners Management Development Human Rights page page page page page page 4 5 13 17 19 25 2 Total Investments and Banro Corporation Expenditures in the Expenditures on DRC Exploration Activities US$139,081,000 Democratic Republic Investment in the Twangiza Gold Plant 191,872,000 of the Congo Expenditures on Twangiza Infrastructure 21,027,000 (2004 – 2012) (Roads, bridges, houses, schools, churches and public facilities) Investment in the Namoya Gold Plant 89,968,000 Expenditures on Namoya Infrastructure 10,119,000 (Roads, bridges, houses, schools, churches and public facilities) Total DRC Taxes and Government Fees 36,511,000 (Payroll, Import, Fuel) Sub-Total US$488,578,000 Banro Foundation Investment in Education in DRC US$1,622,125 Investment in Health Care in DRC 447,631 Investment in Social Infrastructure in DRC 1,277,301 Other Expenditures (Humanitarian Assistance, Community Support, Conservation) 269,435 Sub-Total US$3,616,492 Total DRC Expenditures US$492,194,492 3 Message From John Clarke , Interim President And CEO Banro has recorded exceptional progress since commitment to promoting local development. In Education is the top priority for the Banro Foun - embarking on exploration eight years ago. singling out this theme, we also wish to demonstrate 4dation, which has constructed 10 new schools the far-reaching and positive impact that responsible and rehabilitated two more schools, serving a In 2011, the Company brought into production the commercial mining has on communities and on the total of 4,000 students. All 12 schools have also Twangiza gold mine, the first commercial gold mine prospects for economic progress. been outfitted with desks and furniture. This in the DRC in over 50 years. Today, we are progress - has been complemented by initiatives to increase ing toward completion of our second gold mine, at In this Report, you will read numerous examples of school enrollment by girls, retain teachers, rescue Namoya, while our exploration activities continue Banro’s contributions to local development, of which and educate former child artisanal miners, and to identify the next generation of gold projects to we have chosen to highlight five: introduce community literacy programs. support the growth of the business and the economic development of the DRC. Over the last eight years, Banro has invested Banro is building the industrial skills base of 1US$492 million in South Kivu and Maniema 5Congolese through vocational training and skills While the efforts of Banro in the DRC are consider - provinces, creating jobs and business opportuni - development in the workplace; strengthening of able, no single company achieves success on its own, ties for many tens of thousands of local people, university faculties in relevant disciplines; and and progress has many partners. In our case these generating taxes, adding new public facilities scholarships for high potential students. We have partners include a dedicated and talented Congolese and infrastructure and much more. also introduced world class standards of occupa - workforce, supportive local communities and gov - tional health and safety in all our operations. ernment officials, strong local and global suppliers, Banro employs over 1,000 Congolese in technical, international shareholders and many others. 2professional, management or supervisory jobs This report discusses these and other initiatives in that build real capacity; another 3,000 Congolese more detail, as well as the work being done across Together, we have embraced the unique challenges are employed through contractors. This direct Banro’s operations to foster sustainability and ensure that face building a commercial business in the east - employment generates another 20,000 or more that all practices are compliant with world class ern DRC, and a need to see this creation and growth jobs indirectly with an multiplier effect that standards, as set out in various international frame - managed with technical excellence and in a manner supports more than 200,000 local people. The works and in the Mining Code of the DRC. that is ethical and socially and environmentally Company is working towards a goal of having responsible. It is only through this approach that 95% of technical, professional, management or Banro’s investment in sustainability is not an add-on we believe the business will serve all stakeholders, supervisory jobs held by Congolese nationals and to our operations, but the heart of our business, as well as be sustainable well into the future. has achieved this in its exploration operation . which we view as a long-term investment in the We also pride ourselves on the fact that our security, progress and social development of the Our approach is comprehensive in terms of Sus - Chief Financial Officer and our Vice President communities in which our people work and often live. tainability. This 2013 Report discusses policies and of Government Relations are both of Congolese initiatives across a wide range of issues, including origin, and many heads of divisional departments recruitment and job training, occupational health are Congolese nationals. and safety, environmental management, community relations, artisanal mining, corporate governance, Through both its mining operations and the Banro human rights and conflict minerals. 3Foundation, the Company is making a substantial contribution to social infrastructure, including You will also see the emphasis on the Company’s con - the upgrading and construction of hundreds of tribution to social and economic development, which kilometres of new roads, schools, housing, health John Clarke in fact forms the theme of this year’s Sustainability care facilities, potable water systems and more – Report. We believe that Banro is unique among small with new hydroelectric facilities planned for Interim President And CEO mining companies in terms of the extent of its the future. 4 Creating Jobs Building Capacity Through& its investments in mineral exploration and enhanced education, the development of transporta - The DRC has a very long way to travel before it mining operations, Banro is emerging as an engine tion and energy infrastructure and the promotion reaches the economic level of some neighbouring of development for this eastern region of the DRC. of sustainable agriculture. countries. Furthermore, Banro is a relatively new company – the only mining company to have taken Development occurs when multiple factors are Banro is contributing to each of these forces for the risk so far of operating in the region – and its present. Core to these are new investment and the development – and to many others. efforts and finances can only go so far. creation of capacity-building jobs, improved security, 5 OF THE SKILLED OF THE SKILLED OUT OF 1,210 POSITIONS INVOLVED POSITIONS IN DIRECTLY EMPLOYED IN OPERATING THE BANRO’S EXPLORATION IN OPERATIONS TWANGIZA MINE DEPARTMENT Nonetheless, we share the view expressed by the governments of serveral developed countries and the Congolese leadership, that the most effective route 83% 91% 95% toward economic renewal is through the responsible ARE CONGOLESE ARE HELD BY ARE HELD BY development of the country’s natural resources.