MOVING FORWARD TOGETHER - Aura...
Transcript of MOVING FORWARD TOGETHER - Aura...
MOVING FORWARD TOGETHER
2013 CORPORATE RESPONSIBILITY REPORT
INSIDE THIS REPORT
PAGE 2
ABOUT THIS REPORT PAGE 4
ABOUT AURA
PAGE 6 OPERATIONAL HIGHLIGHTS
PAGE 7
MISSION STATEMENT
PAGE 8
MESSAGE FROM THE PRESIDENT AND CEO
PAGE 10
SUSTAINABILITY TARGETS AND ACHIEVEMENTS
PAGE 12
MESSAGE FROM THE VP CORPORATE RESPONSIBILITY
This Report contains certain forward-looking information as defined in applicable Canadian securities laws. Forward-looking information relates to future events or future performance and reflects the Company’s current estimates, predictions, expectations or belief regarding future events and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s ability to predict or control and could cause actual results to differ materially from those contained in the forward-looking information and should therefore not be relied upon. Please refer to the Company’s 2013 Annual Information Form for a list of estimates and assumptions used in making forward looking information together with the risk factors associated with forward-looking information. All forward-looking information is qualified by this cautionary statement and the Company undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking information, no inference should be drawn that it will make additional updates with respect to those or other forward-looking information.
Unless otherwise noted, all currency references are to United States dollars (“$”). While every effort has been made to ensure the accuracy of the information contained within this report, all non-financial statistics and certain financial amounts disclosed are unaudited and have been so noted. The unaudited financial amounts presented within this report would not have been required to be disclosed by International Financial Reporting Standards and are therefore not included in any previously published financial document.
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TRACKING OUR PERFORMANCE
Key Performance Data ........ 42
GRI Content Index ................ 48
PAGE 13
EMBRACING OUR RESPONSIBILITIES
Governance and Guidance ..........................14
Corporate Responsibility Management ............................16
Stakeholder Engagement .... 17
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CREATING ECONOMIC VALUE
Our Approach ......................... 20
Economic Performance ..... 20
Impacts on Economic Performance ........................... 20
Local Procurement ................21
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INVESTING IN OUR PEOPLE
Our Approach ......................... 23
Our Employees ...................... 23
Employee Training and Career Development .......... 24
Labour and Management Relations ................................... 26
PAGE 31
STRENGTHENING COMMUNITIES
Our Approach ......................... 32
Community Development and Social Investment ......... 32
Community Feedback ......... 34
Social Mine Closure Planning ................... 35
PAGE 36
RESPECTING THE ENVIRONMENT
Our Approach ..........................37
Water ...........................................37
Waste Management ............ 38
Energy and Emissions .......... 39
Reclamation and Closure ....41
Environmental Protection Expenditures ......41
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EMBEDDING HEALTH & SAFETY
Our Approach ......................... 28
Occupational Health & Safety Performance .......... 28
Health & Safety Training ...... 29
MOVING FORWARD TOGETHERCREATING RESPONSIBLE,
SUSTAINABLE GROWTH
At Aura, responsible, sustainable growth is a journey that requires our commitment
to continuous improvement. Our Corporate Responsibility Report
communicates the sustainability goals we have set for our Company and illustrates how we are moving forward together - internally and with our stakeholders - to
continuously assess and improve our economic, social, and environmental
performance.
12 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
This Report incorporates performance data from: (GRI 3.6)
Aura’s producing operations, which include the Aranzazu Mine in
Mexico, the San Andres Mine in Honduras, and the São Francisco
and São Vicente Mines in Brazil. Figures regarding employee data
from the Company’s corporate head office in Toronto, Canada,
and the corporate office in Braslia, Brazil are also included. The
Report does not include performance data from the Serrote da Laje
project. (GRI 3.7)
Because our financial statements are filed regularly, less emphasis
was placed within this Report on economic performance. For
more thorough financial data, the Company’s Audited Financial
Statements and Management Discussion and Analysis can be
accessed through our website or on the System for Electronic
Document Analysis and Retrieval (SEDAR) .
REPORTING FRAMEWORK, APPLICATION LEVEL AND ASSURANCEThe Global Reporting Initiative (GRI 3.1) sustainability reporting
guidelines were used in the preparation of this self-declared B
level Report. We reported on a total of 25 Performance Indicators
including 6 GRI Mining and Metals Sector Supplement indicators. A
GRI Content Index is included at the end of this Report, which lists
the standard disclosures and performance indicators contained in
this Report and their respective locations.
External assurance (GRI 3.13) was not sought for this Report. The
content was prepared and reviewed by management to verify
the accuracy of performance data and for alignment with Aura’s
corporate governance standards, policies and procedures and with
operational protocols. Unless otherwise indicated, the measurement
and calculations contained within this Report followed GRI guidance.
(GRI 3.9) It should be noted that all non-financial statistics and certain
financial amounts disclosed within this Report are unaudited and
have been so noted. The unaudited financial amounts presented
within this Report are not required to be disclosed by International
Financial Reporting Standards and therefore not included in any
previously published financial document.
DEFINING REPORT CONTENT - OUR MATERIAL ISSUES AND INTERESTS (GRI 3.5)
The determination of materiality is the process of identifying
and prioritizing the sustainability impacts and opportunities that
are most important to our various stakeholders: Topics or issues
that could affect the long-term success of our organization or
that could affect the perceptions of those who might assess our
commitment to economic, environmental, and social sustainability.
These material topics guide and define the content of our Report.
Interests and priorities of internal and external stakeholders were
identified though our 2013 materiality assessment via regular
interaction and engagement activities, as well as ongoing feedback
from all sites and departments. We define our stakeholders as
individuals or organizations that have a direct, indirect, or general
interest in, or that can be impacted by our operations. We update
affected groups regularly through stakeholder mapping exercises.
Stakeholders consulted for the Report included: employees,
affected communities, union representatives, applicable local and
state government and regulatory agencies, investors, and trade and
industry organizations. These groups represent the stakeholders
that we also anticipate will be our main report reading audience.
Aura Minerals Inc. (“Aura” or “the Company”) is pleased to present our second annual Corporate Responsibility Report (the “Report”),
which communicates the Company’s economic, environmental, and
social performance from January 1 – December 31, 2013.
This Report highlights Aura’s approach and commitment to corporate responsibility and sustainability priorities, including the stewardship of our company, the health & safety of our people, the protection of the environment, ongoing stakeholder engagement, and social responsibility. We include information on our 2013 achievements, as well as our challenges and potential areas of risk.
ABOUTTHIS REPORT
(GRI 3.1/3.2/3.6)
2 AU R A M I N E R A L S I N C .
Stakeholders were engaged through dialogue, interviews,
employee performance evaluations, ranking surveys, workshops,
and round-table discussions at all operations.
Material issues as they relate to opportunities, risks, challenges,
and successes for Aura were identified, prioritized, validated, and
mapped to one of four areas: (i) workplace/health & safety, (ii)
economic, (iii) environment, and (iv) community. Each of these
issues were ranked high, medium, or low according to level of
stakeholder concern and potential business impact.
The material issues which ranked high for both stakeholder
concern and business impact are depicted in the top, right circle
of the illustration below and are the topics of sufficient material
interest to be included in this Report.
Moving forward, we will continue to refine our materiality
assessment process and define our sustainability issues and impacts
as prioritized by a more inclusive group of stakeholders. We intend
to expand our reach of both internal and external stakeholders
consulted to increase accuracy and accountability.
A B O U T T H I S R E P O RT
* Prioritization of material issues was done at the corporate level; significance of issues may vary at the operational level.
CREATING ECONOMIC VALUE
1 Operational Costs2 Access to Capital3 Increased Taxes and Royalties4 Serrote Development Partner5 Commodities Pricing6 Tonnage/Grade Improvements
INVESTING IN OUR PEOPLE
7 Employment Opportunities8 General Education and Training9 Employee Attraction/Retention10 Labour Relations
EMBEDDING HEALTH & SAFETY
11 Workplace Health & Safety
STRENGTHENING COMMUNITIES
12 Local Infrastructure13 Employment Opportunities14 General Education and Training15 Community Access to Healthcare16 Community Relations17 Social Mine Closure Planning
RESPECTING THE ENVIRONMENT
18 Deforestation (San Andres)19 Water Management20 Waste Management 21 Reclamation and Closure Planning
The material issues which ranked high for both stakeholder concern and business impact are depicted in the top, right circle and are the topics of sufficient material interest to be included in this Report.
AURA’S 2013 MATERIAL ISSUES
COMPLETE LISTING OF 2013 SUSTAINABILITY TOPICS
32 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
Aura is a mid-tier gold and copper production company focused on the development and operation of gold and base metal projects in the Americas. The Company focuses on responsible, sustainable growth in all its endeavours.
AURA MINERALS CORPORATE OFFICE
Toronto, Canada
Honduras SAN ANDRES MINE
TYPE Open-pit heap leach
LIFE EXPECTANCY10 years
EMPLOYEES386
GOLD
Brazil SÃO FRANCISCO MINE
TYPE Open-pit heap leach
LIFE EXPECTANCYMining to cease in 2015
EMPLOYEES298
GOLD
Brazil SÃO VICENTE MINE
MINE TYPE Open-pit heap leach
LIFE EXPECTANCY
Mining ceased/closure activities commenced in
November 2013
EMPLOYEES149
GOLD
MexicoARANZAZU MINE
MINE TYPE Open-pit/underground
LIFE EXPECTANCY
14 years at 2,600 tpd/9 years at 4,500 tpd
EMPLOYEES568
COPPER
GOLD
BrazilSERROTE
DA LAJE PROJECTDevelopment Project
GOLD
IRON
COPPER
OUR OBJECTIVES• Operating to the highest environmental and
safety standards and in a socially responsible manner
• Maximizing returns on the Company’s projects through efficient operation, including production and cost management
• Advancing projects through development and partnerships
• Acquiring and developing quality reserves
OUR OPERATIONS (GRI 2.4/2.5/3.8)
Aura’s Corporate Head Office is located in Toronto,
Canada. Our producing assets include the San
Andres gold mine in Honduras, the Aranzazu
copper Mine in Mexico, and the São Francisco and
São Vicente gold mines in Brazil. The Company’s
core development asset is the copper-gold-iron
Serrote da Laje Project in Brazil.
* all Aura assets are 100% owned through subsidiary companies in each jurisdiction
SILVER
ABOUT AURA MINERALS
4 AU R A M I N E R A L S I N C .
A B O U T AU R A M I N E R A L S
MOVING FORWARDWITH NEW GOALS AND FOCUS
SAN ANDRES MINE, HONDURASThe San Andres Mine is located in the highlands of western
Honduras, in the municipality of La Union, Department of Copan,
Honduras, approximately 300 km northwest of the country’s
capital city, Tegucigalpa.
ARANZAZU MINE, MEXICOThe Aranzazu Mine is located within the Municipality of
Concepción del Oro in the State of Zacatecas, Mexico. The
property is approximately 250 km from the city of Zacatecas and
approximately 112 km from the city of Saltillo.
SÃO FRANCISCO MINE, BRAZILThe São Francisco Mine is an open-pit, heap leach gold mine
located in western Mato Grosso State, Brazil, approximately 560
km west of Cuiaba, the state capital, and approximately 50 km
southeast of the Company’s São Vicente Mine in the prolific
Guapore gold belt.
SÃO VICENTE MINE, BRAZILThe São Vicente Mine is an open-pit, heap leach operation
located in western Mato Grosso State, Brazil, approximately 560
km northwest of the state capital of Cuiaba and approximately 50
km northwest of Aura’s São Francisco Mine. Mining ceased and
closure activities commenced in November 2013.
SERROTE DA LAJE PROJECT, BRAZILThe Serrote da Laje project is the Company’s core development
asset and is a copper-gold-iron development project located
in the central-southern part of the Brazilian State of Alagoas,
approximately 15 km northwest of the town of Arapiraca.
In 2013, the Company’s sole source of revenue was from the sale
of gold doré from the San Andres Mine and the Brazilian Mines,
and from the sale of copper concentrate from the Aranzazu Mine.
We sell our copper concentrate (approximately equally) to
two parties, and understand that the ultimate destination of the
final copper produced is China. All of the Company’s refined
gold is sold to purchasers based in the United States. The gold
doré produced from our Brazilian Mines is refined in Brazil, while
doré from the San Andres Mine in Honduras is refined in the
United States.
PRODUCING MINES DEVELOPMENT PROPERTY
MARKETS SERVED (GRI 2.7)
North portal, Aranzazu, Mexico Pit, San Andres, Honduras Core shed, Serrote da Laje Project, Brazil
52 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
OPERATIONAL HIGHLIGHTS
2013 GOLD AND COPPER SALES
2013 PRODUCTION
GOLD SALES208,897 Ounces - average realized
price of $1,667 per gold ounce
COPPER SALES24,995 dry metric tonnes of copper
concentrate containing 13,615,696
pounds of copper
Aura is a mid-tier gold and copper production company focused on the development and operation of gold and base metal projects in the Americas. The Company focuses on responsible, sustainable growth in all its endeavours
HEALTH & SAFETY ACHIEVEMENT
TOTAL SALES REVENUE (USD)
$330 MillionOPERATING CASH FLOW
$67 Million
The Company’s 2013 revenue
was from the sale of gold
doré from the San Andres and
Brazilian Mines and the sale of
copper concentrate from the
Aranzazu Mine.
São Francisco surpassed 5,000,000 hours
(4 years) without a lost time accident
206,747 OZ OF GOLD
13,626,982 LBS OF COPPER
20%
24%
20% increase
over 2012
24% increase
over 2012
5,000,000+ HOURS
208,897 OUNCES
RECORD YEAR FOR BOTH GOLD AND COPPER
13,615,696 POUNDS
6 AU R A M I N E R A L S I N C .
2013 PRODUCTION
24% increase
over 2012
OPERATING
in a transparent and ethical manner
ENSURING
a safe, productive, and healthy work environment for all our employees and contractors
COMPLYING
with the laws of all countries in which we operate
MAINTAINING
strong and respectful community relationships and promote the health, education and welfare of local communities
CONTINUING
to find, acquire, and develop quality projects in safe and stable jurisdictions
RESPONSIBLE SUSTAINABLE GROWTH (GRI 4.8)
Aura’s mission is to develop and expand our mineral resource base and mining portfolio in a manner that provides maximum returns to our shareholders by:
AURA MISSION STATEMENT
72 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
Our biggest challenge in 2013 was inextricably linked to the global
economy. Aura’s future profitability, operating cash flows, and
financial position depend on the prevailing prices of gold and
copper. Commodities pricing and the availability of capital for
mining deteriorated significantly and affected the full spectrum
of mining companies, especially smaller producers like Aura.
Gold prices falling by 25% was the greatest single impact to our
operating landscape, however our management team has the
tenure and experience to respond to the industry’s cyclical nature.
Over the past two years, but much more methodically and
stringently in the past year, we focused on cost cutting and
efficiency improvements to our operating assets and in 2013 we
made changes that limited our overhead and facilitated a culture
of accountability. Our organizational structure was reduced,
roles and scopes of responsibility have changed, and as a result
we have a more dynamic, interactive, and synchronized team
and organization. This meant a small reduction in staff (or not
replacing staff losses) at both site levels and our corporate office,
examination and restructuring of our operating and capital
budgets, and optimization and efficiency planning company-
wide. Without this massive restructuring effort, we would not
be in the position we are now and our stakeholders within the
investment and lending community have taken notice of these
efforts. Simply put, we were much more sustainable economically
in 2013 than we were in 2012.
Our internal efforts notwithstanding, all three of our operating
jurisdictions have introduced new mining laws which include
either additional or higher taxes and royalties. A new law has
been passed in Honduras and Mexico and a draft is circulating in
Brazil. While there are certain accounting measures that can help
mitigate these taxes, the changes that will impact the economic
efficiency of the Company are an even more critical focus in 2014
and going forward.
We are pleased to include in this Report that our Health & Safety
record continues to improve as we emphasize and promote a
low risk behaviour in our Road to Zero Accidents campaign and
overall workplace culture. In 2013, there were no fatalities or
occupational illnesses at any of our operations and there were
no lost time accidents or injuries at either São Francisco or São
Vicente, which is both impressive and somewhat unusual for
operations that are in various stages of wind-down; a time when
safety awareness can lose ground. In fact, in March of 2014, São
Francisco surpassed 5,000,000 hours without a lost time accident.
At Aranzazu, the severity index improved over 2012, which we
believe can be attributed to the focus in 2013 on enhanced
training for our supervisors. There was also a significant decrease
in accidents at San Andres in 2013 over the previous year.
São Francisco achieved OHSAS 18001 recertification in 2013 and
formed an additional safety committee created as a result of the
OHSAS implementation. Our other sites, while not certified as yet,
are implementing an integrated management system based on
James Bannantine, President and CEO
MESSAGE FROM THE PRESIDENT & CEO (G R I 1 . 1 )
We are pleased to present our second Corporate Responsibility Report, which includes our most material economic, environmental, and social performance in 2013 as identified by our ongoing stakeholder engagement, as well as our risk and materiality assessment processes. We retained our Report theme of Moving Forward Together for 2013; as it continues to resonate with us and remains an authentic representation of our journey through difficult economic times while continuing to focus on our sustainability performance at all of our operations.
Aura fully embraces its responsibilities surrounding stakeholder engagement and potential impacts from our operations in all of the jurisdictions in which we operate.
“
“
8 AU R A M I N E R A L S I N C .
OHSAS 18001 (assessing and auditing Health & Safety standards),
ISO 14000, and the International Cyanide Management Code,
demonstrating our commitment to the minimization of risk and
attention to diligence regarding our occupational health and
safety management systems.
Aura fully embraces its responsibilities surrounding stakeholder
engagement and potential impacts from our operations in all
of the jurisdictions in which we operate. In 2013, we focused
on community engagement and consultation efforts at each
of our mines, with the bulk of our attention concentrated on
the ongoing social aspects of mine closure at São Vicente. Our
Human Resources team engaged extensively with the employees
and union at the San Andres Mine in the latter part of the year in
response to an illegal strike.
The strike at San Andres, unfortunately, had a negative impact on
employees and nearby communities through the loss of wages
and the decrease in local procurement respectively. However,
there was a positive impact on the communication and overall
working relationship between the Company and the union
and its newly-formed board as they worked towards a finalized
agreement and returned to work in early 2014.
With the cessation of mining activity at São Vicente in November
of 2013, we placed a particular focus on both environmental
closure and remediation plans, as well as a strong social closure
commitment for our mine staff that we are diligently training
in trades or other education programs to increase overall
employability, or wherever possible, re-locating to São Francisco
or other operations. We are particularly proud of our first
international relocation of a São Vicente employee to our San
Andres Mine in Honduras (see employee perspective on page 24).
Our commitment to responsible, sustainable, growth is an
integral part of how we achieve our business goals and objectives
with an underlying impetus that our contribution to communities
includes lasting and mutual benefits, in addition to providing jobs
and paying taxes and therefore we continue to look at sustainable
industry options for mine closure at our sites.
Through our Corporate Responsibility reporting, we have sought
to ensure transparency and to benchmark and communicate
the ongoing efforts Aura is making to align our sustainability
performance with our commitments and to demonstrate our
economic, environmental, and social performance as a company
and as responsible corporate citizens engaged in the business
of mineral extraction. It is with the ethics, values, expertise, and
dedication of our team that we demonstrate the alignment
of sustainability principles with Aura’s overarching business
objectives. In the short to mid-term we will continue to focus on
the drivers for a robust business model which will in turn benefit
all of our stakeholders.
Sincerely,
James Bannantine, President and CEO
July 31, 2014
M E S SAG E F R O M T H E P R E S I D E N T A N D C EO
We have worked to meet several significant economic objectives and fundamental milestones in 2013 and into 2014. Our “financial turn-around” story in 2013 is exemplified in specific performance metrics.
Our Brazilian gold mines performed exceptionally well in 2013.
Geological modeling enabled an extra year of mine life at São
Francisco (originally slated for closure in 2014, however we can
now continue to operate until the end of 2015)
Increased production combined with cost savings at our gold
operations and Aranzazu producing to expectations with a
substantially reduced and managed arsenic content within
its concentrate, has resulted in the Company continuing to
generate cash flow from operations and yielded a trailing twelve
month operating cash flow of $62.6 million.
We expect to realize additional profitable ounces at São Francisco
through to the end of 2015 and we have been implementing
a small but effective capital expansion program at San Andres
which is expected to increase annual production and lower unit
costs.
92 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
2013 TARGETS 2014 GOALSACHIEVEMENT STATUS
Secure preliminary bridge financing, project financing and transition into construction phase at Serrote
Complete engineering and commence construction at Aranzazu
Continue to optimize production costs at San Andres
Meet or exceed budgeted gold and copper production at all sites
Partially achieved. Secured R$45M bridge financing for Serrote (land acquisitions). Project financing yet to be achieved.
Partially achieved – Detailed engineering completed on the Aranzazu expansion, construction awaiting financing
Achieved
Partially achieved – exceeded targets at both Brazilian
Continue with the annual risk assessment follow-up and incorporate into budget
Produce a 2014 Corporate Responsibility Report based on the updated GRI (G4) Framework
Secure project / equity financing for Serrote project
Secure Aranzazu construction and expansion financing
Meet or exceed budgeted gold and copper production at all sites
10
EMBRACING OUR RESPONSIBILITIESGovernance and Guidance
CREATING ECONOMIC VALUE How our economic contributions and impacts are consistent with our CR strategies
PARTIALLY ACHIEVEDACHIEVED NOT ACHIEVED
Analyze results, address risk mitigations required and incorporate risk assessment annual follow-up into procedures and budget
Produce a self-declared B level 2013 GRI Corporate Responsibility Report
Achieved
Achieved
Determine how to promote use of Leadership Training tools and skills in the workplace
São Francisco, Honduras, and Mexico completed the second phase of the Aura Leadership Program (ALP). Honduras and Mexico identified a need to provide basic supervisory training (i.e. company policies, setting expectations and follow-up).
Prepare basic supervisory training programs in Honduras and Mexico for delivery in 2015. Include ALP tools in the training to ensure pragmatic use of the tools.
São Vicente/ São Francisco: Continue to train or transition employees as the mines decommission and close
Evaluate potential methods and devise a proactive plan to improve female representation in our workforce
INVESTING IN OUR PEOPLEAttracting, retaining and
valuing our employees
SUSTAINABILIT Y TARGETS AND ACHIEVEMENTS
Updated the Code of Ethics to include:• additionalprovisionsinalignmentwith
amendments to the Corruption of Foreign Public Officials Act (Canada)
• anti-briberyguidelinesalignedwiththeOrganisationfor Economic Co-operation and Development (OECD) for Multinational Enterprises
• clarificationofprovisionswithrespecttocorporateopportunities and competition and fair dealing
10 AU R A M I N E R A L S I N C .
ACHIEVEMENT STATUS
Continue training, program implementation and monitoring to work towards this goal. • DetailedsafetyplanandprogramforAranzazu• Continuetomaintainahighlevelofsafetyat
São Vicente with closure plans
Zero accidents
Expansion of the “Vale por la Vida” program to supervisors
Prioritize San Andres community engagement and liaison to ensure continued relationship with community regarding mine expansion and any potential impacts
Continue Serrote negotiations for remaining 15% of resettlement agreements by August 2013
São Vicente/ São Francisco continue to train or transition employees as the mine closes and de-commissions
Achieve International Cyanide Management Code (ICMC) Certification for San Andres in early 2013
No notice of violation from any sites/continue to assess and mitigate risks to maintain 100% compliance
Achieved at both Brazil operations.
Achieved
Not Achieved
Partially achieved.
Achieved. The San Andres certification audit was conducted in August of 2013 and certification was issued in May of 2014
Achieved
Partially achieved. There were no lost time accidents at São Francisco or São Vicente and San Andres accidents dropped
Develop and commence implementation of a Behavior-Based Safety Program at San Andres
Have all senior executives conduct a safety inspection during site visits
Have all Board members of the Corporate Sustainability Committee conduct safety inspections of one site
Maintain zero accident rate and/or reduce frequency rate by 25%
Finalize and implement the Community Engagement and Development Strategic Plan at San Andres
Finalization of resettlement agreements at Serrote are contingent upon the securing of project financing
São Vicente/ São Francisco: Continue to train or tran-sition employees as the mines decommission and close
Finalize physical closure of São Vicente in compliance with developed closure plan and social expectations
No notice of violation from any sites/continue to assess and mitigate risks to maintain 100% compliance
Initiate implementation of ISO 14001 at Aranzazu
Engineer, construct, and commission expansion and improvements to the San Andres Water Treatment Plant
2013 TARGETS
EMBEDDING HEALTH & SAFETY Creating a safe and healthy
workplace free of accidents,
injury and illness
STRENGTHENING COMMUNITIES Engaging with our
communities, their
development and social
investment
RESPECTING THE ENVIRONMENT
Commitment to the
mitigation of risk and
minimization of our
environmental impacts
PARTIALLY ACHIEVEDACHIEVED NOT ACHIEVED
S U S TA I N A B I L I T Y TA R G E T S A N D AC H I E V E M E N T S
2014 GOALS
112 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
As for many mining companies, 2013 was a difficult economic
year for Aura. It is, however, under circumstances of depressed
metals prices and restricted financing options that now, more
than ever, we need to be diligent when it comes to the matter of
social performance – specifically building collaborative stakeholder
relationships and managing expectations in relation to our social
license to operate*.
While Aura’s economic sustainability is a paramount business
concern, the concerns of the communities in which we operate,
the protection of the environment, and respect for human rights, all
exist independently of market conditions. We need to continue to
focus our efforts toward real sustainable community development
empowering our local communities to enrich their lives beyond the
life of our mines.
In Brazil, São Vicente ceased mining in November of 2013 with mine
decommissioning in 2014 and São Francisco’s closure is expected
in 2015. Vigilant attention to Health and Safety and maintaining the
safety culture during mine closure was a top priority at these sites. In
2013, there were no fatalities or occupational illnesses at any of our
operations. São Francisco achieved OHSAS 18001 recertification,
and there were no lost time accidents at either São Francisco or
São Vicente. We are pleased to report that in March of 2014, São
Francisco surpassed 5,000,000 hours without a lost time accident.
Aura maintained its very good standing operation wide with respect
to its meeting or exceeding our environmental goals and objectives
for 2013 including:
• All sites follow the ISO 14001 continuous improvement cycle
for environmental compliance
• SãoFranciscoreceivedrecertificationofISO14001
• Aranzazureceivedanupdatedtailingsstoragefacilitypermit
providing for increased tailings storage capacity to be built
to world-class design standards of an additional 12 years at a
production rate of 2,600 tpd
• SanAndressuccessfullycompleteditsInternationalCyanide
Management Code final audit with certification in May of 2014
• SanAndresobtainedapermitforasterileengineeredlandform
(waste management)
• AcorporatestandardsauditwasconductedatSãoFrancisco,
San Andres, and Aranzazu, with improvements shown
over 2012
Our San Andres gold mine in Honduras has an approximate 10
year mine life, and our Aranzazu copper operation at least 17 years,
and while daily health and safety remains top-of-mind, it is also
incumbent upon us to put a great deal of thought and planning
towards the promotion of true sustainable community development
in all of the regions that we operate in; to identify and assess both
the consequences of how nearby municipalities will be impacted
by either the availability of jobs and steady incomes, or alternatively
the lack of employment and tax revenues. Specific to San Andres,
we must navigate away from the legacy of philanthropy and move
towards building and strengthening relationships that engender
legitimacy, trust, and acquiring true social license to operate.
One of our sustainability-related concerns includes the potential
effect of the new mining and tax laws in Mexico and Honduras, which
will not only impact our economic performance, but may also impact
both mining projects and communities from a social perspective.
Municipalities and national governments are increasing taxes under
the philosophy that they will be allocating those increases into
social investments, however, as a result of the higher taxes, mining
companies will have less financial ability to contribute in meaningful
ways to stakeholder-driven capacity building and other socially-
sustainable investments.
We believe the process of preparing our Corporate Responsibility
Report provides our stakeholders with a valuable summary of our
sustainability performance – from risk assessment to management
systems and integration of environmental and social performance
objectives into policies and procedures. Our goal of continuous
improvement is aided by this reporting process, and guides us in the
benchmarking of our accomplishments as well as identifying our
opportunities for improvement as we continue to Move Forward
Together. We hope you enjoy reading our Report.
Gonzalo Rios, VP Corporate Responsibility July 31, 2014
MESSAGE FROM THEVP CORPORATE RESPONSIBILITY
Gonzalo Rios, VP Corporate Responsibility
Social license to operate is a term used to describe a community’s perception of a mining company or project. Social license represents an ongoing endeavour: a continual process of building relationships, and earning and maintaining cooperation and trust, as granted by local communities.
*
12 AU R A M I N E R A L S I N C .
Aura is committed to ethical business practices and has thorough corporate
governance structures in place to guide and confirm oversight and
accountability throughout all levels of the organization.
IN THIS SECTION
Governance and Guidance
Corporate Responsibility Management
Stakeholder Engagement
EMBRACING OUR RESPONSIBILITIES
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E M B R AC I N G O U R R E S P O N S I B I L I T I E S
BUSINESS CONDUCT AND ETHICS (GRI 4.6)
Aura is committed to fair employment practices, treating
individuals with dignity and respect, providing a safe and healthy
work environment, protecting the environment, and being
responsible member of the communities where we operate.
We do not tolerate any type of discrimination and expect all
relationships among persons in the workplace be professional
and free of bias or harassment.
Compliance with our Code of Business Conduct and Ethics
(“the Code”) is essential, and embodies the expectation of Aura
directors, officers, employees, contractors, and consultants to
conduct business in accordance with all applicable laws, rules,
and regulations with high ethical and moral standards. The Code,
along with other corporate policies and charters, reinforces the
Company’s ethical commitment to its employees, host commu-
nities and local authorities, business partners and shareholders.
New personnel receive an Employee Handbook and are provided
with a copy of the Code, which they sign in acknowledgment
that they have read and understand Aura’s expectations.
We updated our Code in 2013 to include additional provisions
in alignment with the amendments to the Corruption of
Foreign Public Officials Act (Canada) and anti-bribery guidelines
aligned with the Organisation for Economic Co-operation and
Development (OECD) for Multinational Enterprises. We also
expanded the confidential contact points of our Whistleblower
Policy, enhanced the articulation of our fair dealing/local
procurement practices, and added specific examples of what
could constitute conflict of interest situations.
The complete Code is located in the Governance section of our
website here .
ANTI-CORRUPTION AND ANTI-BRIBERYAura has a zero tolerance policy regarding corruption or bribery
at any level or in any business unit within the Company. We
have rigorous internal financial controls in place to oversee the
financial aspects of operations that could be affected by and/or
to uncover any incidents of corruption. In 2013, we expanded our
Code of Business Conduct and Ethics to clearly articulate that all
employees, officers and directors of the Company shall conduct
their relationship with government officials and employees in
compliance with the Corruption of Foreign Public Officials Act
(Canada), and all employees, officers and directors must also
follow the guidelines on combating bribery of the Organization
for Economic Co-operation and Development (OECD) for
Multinational Enterprises.
GOVERNANCE AND GUIDANCE
Aura is committed to ethical business practices and has thorough corporate governance structures in place to guide and confirm oversight and accountability throughout all levels of the organization. Our core values are embedded in our Code of Business Conduct and Ethics, are integrated into our management systems, and include: honesty, integrity, the protection of the environment and the health and safety of our people, the promotion of open communication and transparency, and striving to continuously improve our corporate responsibility practices.
AURA’S APPROACH TO CORPORATE RESPONSIBILITY AND SUSTAINABILITY
Corporate responsibility is an integral part of our organization. It guides us in our everyday activities and confirms that wherever we work, we work with integrity. Aura is committed to sustainable development, the protection of human life, the preservation of the environment, and having a positive impact on the communities where the Company operates. The Company demonstrates this commitment through corporate responsibility strategies and sustainable growth aligned with all corporate responsibility practices, and as embodied by our policies and standards pertaining to Health & Safety, Environment and Community.
These guiding principles will be applied through adherence to internationally accepted guidelines and standards and assurance of a continued effort to integrate corporate frameworks and policies into practice.
14 AU R A M I N E R A L S I N C .
HUMAN RIGHTS (HR4)
Aura is committed to fair employment practices and all
individuals are treated with dignity and respect. The Company
does not tolerate any type of discrimination at any level and
expects that all relationships among persons in the workplace
will be professional and free of bias or harassment. There were
two incidents of harassment filed in 2013. These incidents were
investigated and corrective actions were applied in the case of
the individuals who acted inappropriately, and the situations are
considered resolved by all parties.
Our commitment to human rights is exemplified by our
Corporate Responsibility Principles, and is embedded in our
Code and Human Resources Principles. We ensure induction
and follow-up training is provided, which includes priority
human rights topics such as the definition and prevention
of discrimination and harassment, awareness of forced or
underage labour, dispute resolution, including access to our
Whistleblower Policy and employee grievance mechanisms. All
employees have the right to free association, and each of our
sites has a union representing their collective interests.
The potential risk of child labour (HR6) exists in Mexico, Brazil, and
particularly in Honduras. The Company enforces compliance
with strict policies and procedures for applicants (proof of age)
of both employees and contractors to address this issue and
associated risk within its operations and key contributors of its
supply chain. In addition to corporate safeguards, under-aged
workers in industrial positions such as mining operations are not
culturally supported, which also lessens this potential risk.
WHISTLEBLOWER POLICYAura has established an open process to resolve concerns and
disputes at each operation on a confidential basis, as well as a
mechanism for the submission of anonymous reporting of any
suspected violations, including concerns regarding government
laws, rules and regulations, corporate reporting and disclosure,
or financial or auditing practices without fear of reprisal or
intimidation. Our Whistleblower Policy is included in employee
and contractor induction training and is also located in
the Corporate Governance section of our website here . (GRI 4.4)
BOARD OF DIRECTORS (GRI 4.1/4.2)
Our Board of Directors is responsible for the stewardship of
Aura and the oversight of the Company’s affairs with the goal
of enhancing shareholder value, while maintaining a culture
of integrity. At the date of this Report, the Board is comprised
of six directors (five men and one woman); five of whom are
independent. (GRI 4.3) The Board is responsible for the supervision
of management, monitoring of financial performance, and
reporting; ensuring compliance with all policies, codes,
charters and procedures. The Board has six committees that
provide guidance and assistance to the management of the
Company: the Audit Committee, the Compensation Committee,
the Corporate Sustainability Committee, the Nominating
and Corporate Governance Committee, the Technical and
Development Committee, and the Disclosure Committee. All of
our Board Committee Charters and mandates can be accessed
on our corporate website here .
Our Nominating and Corporate Governance Committee is
comprised of three independent Board members. Its mandate
is to review the composition of the Board in relation to the
strategic direction of the Company and the competencies and
skills the Committee considers necessary for the Board. The
Committee annually assesses the performance, effectiveness
and contribution of the Board, its committees and its directors,
and makes recommendations for changes when appropriate,
as well as identifying and recommending new candidates
for nomination. (GRI 4.7) The Committee ensures that a
comprehensive orientation is received by new directors and that
all directors are kept up-to-date through continuing education
opportunities.
COMPENSATION (GRI 4.5)
The Compensation Committee is comprised of three
independent Board members; all of whom have held senior
executive and Board positions with other base and/or precious
metal companies where they have had direct involvement in the
development and implementation of compensation policies and
practices for employees at all levels, including executive officers.
The Company has a number of measures in place to ensure
that compensation is fair, reasonable, and directly aligned
with competitive compensation philosophies and stakeholder
interests. For certain positions within the organization,
compensation bonuses are linked to social and environmental
performance.
E M B R AC I N G O U R R E S P O N S I B I L I T I E S
Project area, Serrote Da Laje, Brazil
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E M B R AC I N G O U R R E S P O N S I B I L I T I E S
RISK ASSESSMENT AND MANAGEMENT The management of risk is essential to effective governance and
the achievement of our business objectives. In addition to Board
oversight, Aura management systems (including our enterprise
risk management process), identify aspects that may present
material risks to the Company or a specific operation. These
aspects include sustainability risks, which are prioritized to
prevent accidents, mitigate impacts on the environment, and
remediate any incidents that may affect communities or other
stakeholders. An annual risk assessment is conducted for each
site and these risks are reviewed by the Audit Committee and
are included in the budgetary process to ensure the required
resources are allocated to mitigation or remediation plans.
FEEDBACK TO THE BOARD (GRI 4.4)
Shareholders have the opportunity to voice their opinion
through annual proxies received in advance of each annual
general meeting, and are invited to ask questions and provide
feedback to management and the Board at each meeting. In
addition, under the Canada Business Corporations Act, the
Company’s governing corporate statute, there are provisions for
the submission of shareholder proposals and resolutions.
Stakeholders have mechanisms of inquiry and feedback with our
Company and to our Board through email on the Company’s
website, telephone contact with the Company, participation on
quarterly conference calls, and regular mail. Concerns relating
to financial or ethical matters may be directed to the Chair of
the Audit Committee anonymously and confidentially by regular
mail or by email at [email protected].
Aura has an “open door” policy which encourages all employees
to approach senior management with questions or concerns.
CORPORATE RESPONSIBILITY MANAGEMENT (GRI 4.9)
The Board committee with primary responsibility for overseeing
corporate responsibility matters is the Corporate Sustainability
Committee, which is comprised entirely of independent directors.
The Committee ensures that the Company conducts its activities
in such a manner as to ensure the health & safety of its employees,
promotes sustainable development, preserves the environment,
and engages with and contributes to the development of the
communities in which we operate.
The day-to-day strategy to obtain and maintain social license
to operate, as well as the management of the Health & Safety,
Community Development/Social Investment, and Environmental
programs at Aura are led by the Company’s Vice President of
Corporate Responsibility. With the additional support of on-site
environmental managers, health & safety technicians, social
performance, and environmental consultants, the Corporate
Responsibility team continually assesses opportunities and
risk, establishes corporate objectives, policies, standards and
programs in the areas of health, safety, environment and
BOARD OF DIRECTORSPRESIDENT AND CEO
Corporate Sustainability
Committee
Nominating& CorporateGovernanceCommittee
Technical and Development
Committee
CompensationCommittee
DisclosureCommittee
AuditCommittee
Environmentaland Sustainability
Consultants
Site Managers –Community
Development
Site Managers –Health, Safety &
Environment
VP CORPORATE RESPONSIBILITY
INTEGRATION OF RESPONSIBILITY AND ETHICS INTO CORPORATE GOVERNANCE (GRI 4.9)
Stakeholder Feedback• Email• Regularmail• Telephoneinquiries• Quarterlyconferencecalls
• Annualproxyprocess• Whistleblowerpolicy• Internalandexternalonsiteengagement
16 AU R A M I N E R A L S I N C .
community relations. The VP Corporate Responsibility guides
senior and site management on the implementation of systems
and programs to meet these objectives, develops and implements
social and environmental performance initiatives, and conducts
education programs for the Company’s employees, contractors,
and host communities at each operation.
STAKEHOLDER ENGAGEMENT (GRI 4.14 - 4.17)
OUR APPROACHAura is committed to engagement with our stakeholders to
identify and understand their perspectives, key concerns,
and to develop relationships of mutual benefit. We define our
stakeholders as individuals or organizations that are directly or
indirectly impacted by our operations or actions, as well as those
that have the ability to influence our operations. We prioritize
our stakeholder groups primarily through the consideration of
potential impact, combined with our risk assessment processes,
and we regularly undertake stakeholder mapping exercises as
a reference point for connecting and collaborating with key
internal and external stakeholders at all project site locations.
STAKEHOLDER ENGAGEMENTWe practice ongoing, proactive consultation between the
Company and our stakeholders, which enables continuous
identification of issues, understanding of potential impacts, and
management of expectations as they relate to our operations at
every stage of the mine-life cycle, and we adjust our approach to
suit the unique needs of each stakeholder group.
STAKEHOLDER FEEDBACK (GRI 4.17)
It is through our ongoing efforts to share information, maintain
positive relationships, and develop trust that Aura has learned
the most about the needs and concerns of our stakeholders. We
communicate with, and seek feedback from, our stakeholders
through a variety of methods, including regular interaction, open
door conversations, formal presentations, town hall meetings,
community liaison officers and hotlines. (GRI 4.15) (see Community
Feedback on page 33).
As with all mining companies, maintaining social license is an
ongoing and challenging process that requires continuous
improvement efforts. Aura is currently working to improve its
method of addressing and resolving grievances by creating
procedures that provide a platform for effective dialogue and
collaborative resolution.
In 2013, Aura was active with respect to ongoing engagement
with the following stakeholder groups
Union
Representatives*
Local
Communities*
Customers
Institutional and
Individual Investors
and Lenders
Employees and
Contractors*
Community
Investment
Beneficiaries*
Local Government
and Regulatory
Agencies*
*Stakeholder groups that were consulted or participated in the 2013 materiality assessment
E M B R AC I N G O U R R E S P O N S I B I L I T I E S
Aura is committed to engagement with our stakeholders to identify and understand their perspectives, interests, and key concerns.
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COMMITMENTS TO EXTERNAL INITIATIVES (GRI 4.12)
Aura currently endorses or has adopted the following voluntary external principles, certification processes, or initiatives:
Extractive Industries Transparency Initiative (EITI) Aura voluntarily supports EITI goals of fiscal transparency
and governance, disclosing payments made to governments
in countries in which we operate, whether or not the host
government is a member of EITI. Mexico and Brazil are not
members of the EITI, however Honduras became a Candidate
Country in 2013.
Global Reporting Initiative (GRI) 3.1 Sustainability Reporting Guidelines
Adopted as the 2012/2013 framework for Aura’s Corporate
Responsibility reporting. The Company plans to transition to
the fourth generation framework (G4) for the 2014 reporting
period.
Greenhouse Gas (GHG) Protocol for Calculating Emissions
Aura has adopted the GHG Protocol for emissions calculations
as per the World Business Council for Sustainable Development
(WBCSD) and the World Resource Institute (WRI).
International Cyanide Management Code (ICMC) Aura became a signatory of the ICMC in 2011. São Francisco
achieved ICMC certification in 2012 and San Andres received
certification in May 2014.
ISO Standards At the operational policy level, Aura has implemented an
integrated environmental management system based on ISO
14001. São Francisco received recertification of ISO 14001 in
2013.
Occupational Health & Safety Advisory Services (OHSAS) At the operational policy level, Aura has implemented an
integrated management system based on OHSAS 18001 (as-
sessing and auditing Health & Safety standards) at all sites. São
Francisco achieved OHSAS 18001 recertification in 2013.
INDUSTRY INVOLVEMENT (GRI 4.13)
Interaction and involvement with Industry Associations
enables Aura and our personnel to build and maintain key
industry relationships, while keeping informed of sector
trends and current international best practices. In 2013 Aura
(or their subsidiaries) were members of the following industry
associations or organizations:
Honduras• Asociación de Minería Metálica de Honduras –
Mining Association of Honduras
• Asociación Nacional de Industriales de Honduras –
National Industry Association of Honduras
• Cámara de Comercio e Industria de Copán –
Chamber of Industry and Commerce of Copan
• Consejo Hondureño de la Empresa Privada –
Honduras Council for Private Industry
Mexico• Cámara Minera de México – Mexico Chamber of Mines
• Cámara de Comercio de Canadá en México -
Canadian Chamber of Commerce in Mexico
• Cluster Minero del Estado de Zacatecas –
Zacatecas Cluster for Mining
Brazil• Agência para o Desenvolvimento Tecnológico dá Indústria
Mineral Brasileira – Technological Development Industry
for the Mining industry in Brazil
• Câmara de Comércio Brasil – Canadá - Chamber of
Commerce Brazil – Canada
• Federação das Industrias no Estado de Alagoas –
Alagoas State Federation of Industries
• Federação das Industrias no Estado de Mato Grosso –
Mato Grosso State Federation of Industries
• Instituto Brasileiro de Mineração – Brazilian Mining
Association
E M B R AC I N G O U R R E S P O N S I B I L I T I E S
18 AU R A M I N E R A L S I N C .
CREATINGECONOMIC VALUE
Aura’s primary strategic focus in 2013 was on the Company’s
economic sustainability.
IN THIS SECTION
Our Approach
Economic Performance
Impacts on Economic Performance
Local Procurement
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C R E AT I N G ECO N O M I C VA LU E
20
ECONOMIC VALUE GENERATED
Values Expressed in USD (000s) 2013
Revenue 330,877
Total Economic Value Generated 330,877
ECONOMIC VALUE DISTRIBUTED
Operating Costs (excluding salaries) 154,378
Employee wages and benefits 54,789
Capital Expenditures 54,438
Payments to Providers of Capital4 21,712
Payments to Governments2,4 (Mexico) 14,934
Payments to Governments2,4 (Honduras) 11,215
Payments to Governments2,4 (Brazil) 11,138
Payments to Governments2,4 (Canada) 1,342
Land Use Payments4 166
Community Investment3, 4 (Agreements) 4,271
Community Investment 282
Total Economic Value Distributed 4 328,665
Total Economic Value Retained4 2,212
1 For a detailed account of our operating and financial performance see our Annual Financial Statements.
2 Aura voluntarily supports the Extractive Industries Transparency Initiative (EITI) goals of fiscal transparency and governance. Mexico and Brazil are not members of the EITI, however Honduras became a Candidate Country in 2013; its first report is due to be released in 2015.
3 For full details of our community investment activities and expenditures, see Community Investment on page 32 & 33.
4 These figures are unaudited
ECONOMIC PERFORMANCE1,3
In 2013, we generated approximately $331 million and
distributed approximately $329 million in economic value
(as defined by the Global Reporting Initiative) from our
operations as presented on the left.
IMPACTS ON ECONOMIC PERFORMANCE
NEW MINING LAWS, TAXES, AND ROYALTIES Two of our three operating jurisdictions ratified or implemented
changes to their mining laws in 2013, which include increases to
taxes or the application of new taxes or royalties that will impact
our economic performance through higher tax payments,
which will result in lower profits.
In Honduras, a new mining law came into effect on
April 2, 2013. In addition to regular corporate taxes, royalties on
net income increased from 2% to 5% (2% security tax, 2% to the
municipality of Union, and 1% to INHGEOMIN, the office that
regulates mining operations in Honduras). The security tax is
proposed to help the government fund initiatives to lower the
criminality index and organized crime in Honduras. This new tax
will be levied after 5 years of operation.
OUR APPROACH
Our economic performance has a significant impact on all of our stakeholders. Aura’s primary strategic focus in 2013 was on the Company’s economic sustainability. Life-of-mine optimizations (including geological modeling, continued exploration, and extension of mine life), internal and external financing utilization and re-negotiation, and ongoing, concentrated community relations were all conducted with a clear goal in mind – moving Aura forward towards improving financial results and the steady growth of value for all stakeholders including shareholders.
ECONOMIC CONTRIBUTIONS AND IMPACTSWhether directly or indirectly - through employee wages and
benefits, procurement of local goods, investment in capital
expenditures, taxes, or ongoing community investment - our
expenditures contribute to the local and regional economies of
each of our operating locations. We aim to ensure our economic
contributions and impacts are consistent with our sustainable
development goals in each jurisdiction where we operate.
20 AU R A M I N E R A L S I N C .
Mexico introduced a new Fiscal Reform Act which includes new,
or higher mining taxes effective January 1, 2014, including the
elimination of the proposed decrease in the Mexican corporate tax
rate (from 30% to 28%), a Special Mining Duty of 7.5% on earnings
before interest, taxes, depreciation and amortization (EBITDA),
a 0.5% Environmental Tax on precious metals revenues, a 10%
dividend tax, and the elimination of the annual deduction of
exploration expenses from income before tax. As a Company, we
can reduce the EBITDA tax requirement by offsetting against future
tax liabilities and other strategies may also be developed to manage
this new financial impact.
Brazil is in the process of updating its Mining Law, which is
expected to include an increase in mining royalties. The updated
Mining Law is expected to be released in 2014.
LOCAL PROCUREMENT (EC6)
Aura purchases supplies and services and hires personnel from
our host communities whenever possible - and we encourage our
contractors and suppliers to do the same. In 2013, Aura spent over
$106M in the procurement of goods and services, 85% of which was
from nearby or in-country suppliers. The percentage of supplies that
can be sourced locally differs substantially from country to country
and from site to site. Notwithstanding our efforts to procure goods
regionally, most heavy equipment or chemicals such as cyanide can
only be obtained through international suppliers.
All operations have a procurement process in place for the selection
of suppliers. Our procurement decisions are based on normal
commercial considerations such as: quality, price, availability,
service, reputation, and other factors bearing directly on
the product, service, or supplier. Customers and potential
customers of the Company are provided with equal rights to
make purchasing decisions based on the same competitive
terms. Our Code of Business Conduct and Ethics was
amended in 2013 to include enhanced detail regarding local
procurement practices, including the prevention of conflicts of
interest during the tendering process.
C R E AT I N G ECO N O M I C VA LU E
Aura has partnered with Yamana Gold and SEBRAE (Serviço
Brasileiro de Apoio às Micro e Pequenas Empresas - a
government institution that supports micro and small businesses)
to promote entrepreneurship and develop local suppliers
surrounding our mines near the town of Pontes e Lacerda.
The project focuses on micro, small and
medium sized enterprises in the region
with the goal of developing, training,
and certifying these businesses
to develop products and services
in the mining industry supply
chain, meet legal requirements
and technical procedures to
increase their competitiveness and sustainability. The target
is to develop thirty small businesses by 2016 within the
surrounding municipalities. The program will include training
modules such as financial planning, quality assurance, and
team management to increase productivity and sustainability
through competitiveness, economic value, and job creation.
Using a criteria matrix of preferences for local suppliers, this
economic development program develops and qualifies
suppliers to align with the specific procurement needs of
nearby mining operations. The program commenced in
October 2013 when potential participant companies were
mapped and the different supply chain needs and target
industries were identified.
CASE
STU
DY
BRAZIL: SUPPORT FOR ECONOMIC DEVELOPMENT WITHIN THE SUPPLY CHAIN
LOCAL PROCUREMENT
In 2013, approximately 85% of our goods
and services were procured from local
(nearby community or in-country) suppliers.
Nearby Communities
International
National
Nearby States or Provinces
51%
15%5%
29%
Karen ChongFinancial Controller San Andres
In my position, I can see firsthand the positive
impact of Aura’s activities in the local Honduran economy;
improving the quality of life of our employees, developing
small local suppliers, and generating opportunities
for local contractors. There is also a strong financial
commitment to social causes and responding to the
needs of the adjacent communities. I can also observe
both the ethical and economic commitment to address
any environmental impacts through programs and funds
committed to rehabilitation and reforestation. Aura
recognizes the high economic dependence on the mine
and is taking steps to guide the diversification of the local
economy to lessen this impact when San Andres closes.
EMPLOYEE PERSPECTIVE
85%
“
“
PARTNERSHIP
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Aura Minerals places great emphasis on our most
important resource — our people.
INVESTING IN OUR PEOPLE
IN THIS SECTION
Our Approach
Our Employees
Employee Training and Career Development
Labour and Management Relations
22 AU R A M I N E R A L S I N C .
I N V E S T I N G I N O U R P EO P L E
Aura seeks to hire locally where possible so that the economic
benefit of employment remains to the greatest extent possible
in our host communities. We emphasize the hiring of employees
from local and regional communities at all locations and
operations and we prioritize local training to build additional
capacity in this regard. Expatriate employees are only sought for
positions where the experience and/or technical qualifications
are not available within local or regional populations. Although
Aura is very strong in its ability to source talent at the local
level, each of our operations is working towards continually
strengthening and expanding their training programs to further
enhance local employment opportunities. Where special
competencies need to be imported, there is a preference of
moving skilled personnel from our existing operations to other
operations rather than seeking expatriates.
OUR EMPLOYEES
At December 31, 2013 Aura employed 1,463 people across
four countries and five operations. We promote a respectful
and fair workplace where all individuals are treated with dignity
and respect, and we foster a level of commitment to a high-
performance safety culture to minimize at-risk behaviour.
In 2013, approximately 14% of our workforce across all of our
operations was comprised of women. While this figure is at
Canadian, and just slightly above global industry averages for
women in mining, we do recognize that overall these numbers
are low. Increasing the number of female employees within
our organization – particularly in supervisory and management
roles – is an area where we can improve. Low turnover rates and
position availability notwithstanding, in 2014 we will evaluate
potential methods and devise a proactive plan to improve female
representation in the workplace at each of our sites.
Brazilian law requires support of the disabled community and
a minimum of 3% representation in the workforce. While this
is difficult to achieve in a mining and processing environment,
NUMBER OF EMPLOYEES BY GENDER (LA1)
Aranzazu
486
325
267
135
255 13
8261
3114 4 4 11
SanAndres
SãoFrancisco
SãoVicente
Serrote BrasiliaOffice
CorporateOffice
500
400
300
200
100
0
1,256 Males
207 Females
OUR APPROACH
Our employees and contractors are key to the success of our business. We rely on skilled, hard working, and committed people and we prioritize and maintain our relationships with our employees and contractors by ensuring that we have effective protocols, policies, and training in place to ensure their health & safety and to provide a rewarding workplace culture for personal and professional growth.
1,463TOTAL EMPLOYEES
ADR Plant, São Francisco Mine, Brazil
232 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
where a high component of physical effort is required, we have
managed to achieve this in 2013.
We provide our employees with competitive or above national
average wages as well as benefits, training, and career
development opportunities to our workforce. We train all new
employees on health, safety, the environment, and emergency
protocols while also providing role-specific health and safety
training and an orientation detailing our human resources
principles and practices.
We have an open process to resolve concerns and disputes
and we provide training and follow-up to work towards the
elimination of discrimination and harassment. We have protocols
in place for employees at all our operations to be in a ready and
safe work condition through extensive Health & Safety training
and through drug and alcohol testing, and we enforce these
same standards with our contractors.
EMPLOYEE TRAINING AND CAREER DEVELOPMENT
We have established what we call ‘goal alignment’ for our
employees by clearly communicating the Company’s strategy
and annual goals, and ensuring these are a part of the
performance management process. This includes establishing
annual goals, objectives, regular follow-up and feedback
(recognition of performance) processes. Position profiles,
performance evaluations and, in some instances, competency
matrix programs have been developed to provide employees
with a clear link between performance and compensation, and
we continue to advance these measurement tools.
Additionally, we identify and support future leaders for
management roles in the Aura Leadership Program, providing
ongoing development (experience based) opportunities, and
ensuring processes for exchanges of technical and management
knowledge within the business.
Aura employee and contractors received an average of
42 hours of training in 2013 (LA 10). Average hours of training in
any given calendar year are significantly higher in Brazil than
both Honduras and Mexico due, predominantly, to government
philosophy and support. Brazil requires a minimum number
of employee training hours and also provides corporate tax
incentives for training.
Examples of company-wide professional development in 2013
included:
• Specific training related to technical aspects of roles (new
techniques, new equipment) and first aid training
• Employee scholarship programs for the completion of high
school equivalency and university courses in Honduras and
Mexico
• Career plan training related to OHSAS Certification in Brazil
• Career-related training for individuals sponsored by Aura
(i.e. tuition for MBA Programs)
• The Aura Leadership Program: Tools to be an Effective
Leader
I N V E S T I N G I N O U R P EO P L E
Luiz LimaProcess ManagerSan Andres
I worked in São Vicente for approximately two years before closure processes commenced and the plant shut down. As part of Aura’s retention and transition plan, I was offered the opportunity to work in Honduras in a similar position. This has been a great challenge for me and has represented a huge opportunity to grow professionally and personally. The culture in Honduras is very different than Brazil but the values and workplace standards of Aura go beyond borders and it is exciting to see a similar working culture and a commitment to sustainability across the operations. Aura and fellow employees have been very supportive, and I am happy to be one of the people that has remained with the Company despite the closure of São Vicente.
EMPLOYEE PERSPECTIVE
“
“
AVERAGE TRAINING HOURS (LA10)
80
60
40
20
0
Aranzazu San Andres
São Francisco
São Vicente
TOTAL HOURS OF TRAINING IN 2013:
45,900HOURS
2013 2012
NOTE: Average training hours by employees and contractors. Training figures not currently available by gender
24 AU R A M I N E R A L S I N C .
EMPLOYEE ATTRACTION AND RETENTIONWe placed continued and specific focus on employee attraction
and retention at all our operations in 2013: The retention of
employees in key positions (particularly during mine closure
activities) ranked as one of the Company’s top material
sustainability issues. In particular, our mine managers are highly
experienced, specialized, and valued. There is also priority
given to other key management positions, and specific focus
on retention at the São Vicente and São Francisco sites as these
operations approach closure and the need to keep experienced
personnel at site until closure is completed.
Each site has an annual salary review process as well as an
incentive program linked to health, safety, environmental
indicators, production results, and profitability. At the corporate
level, incentive based compensation programs are aligned with
goals and performance. Further, we annually undertake a review
of equity grants to employees to align employees’ behaviour
with long term value creation to recognize performance and as a
retention tool.
We have just begun to see the results of our succession planning
and development program that commenced in late 2012. We
have two managers (see Employee Perspective on page 24) who
moved internationally between operations and there were four
transfers of employees from São Vicente during the closure of
operations to São Francisco.
We have listened to feedback from our internal stakeholders –
our employees. We scheduled informal interviews held in early
2013 to increase communication and to better support our sites
during a time of cost reduction and operational adjustments. We
have increased our formal communications at the management
level, including:
• weeklymeetingsbetweenourcorporateofficewithGeneral
Managers and Vice Presidents
• monthlyoperationsupdates
• bi-annualleadershipteammeetingswhichincludestrategic
sustainability topics including health & safety programs,
labour plans, budgeting and cost management, and
operational updates.
At São Vicente, retention incentives for employees who remain
with the mine were balanced with a comprehensive program of
training, job search assistance and training for professionals and
for unskilled, semi-skilled, and skilled labour to support closure
transition (see Case Study on page 26).
I N V E S T I N G I N O U R P EO P L E
Eliézio Pires da SilvaMaintenance DepartmentSão Vicente
2013 was a year of great expectations. We could feel the activities were changing because of the imminent mine closure. At the end of 2013 I was advised I would have work until the end of 2014, however with reduced activity, my job becomes more volatile. Aura is supporting its workers during this time of transition with training and education, paying 90% of our technical school fees and fuel to travel to the city to study. The Human Resources department is contacting other companies in the region to share information about opportunities and worker qualifications. Even during closure, Aura Minerals has provided us with many opportunities for growth and learning.
EMPLOYEE PERSPECTIVE
Aura identifies and supports future leaders for management roles through the Aura Leadership Program, providing ongoing development opportunities, and ensuring processes for exchanges of technical and management knowledge within the business.
“
“
Underground mine, Aranzazu, Mexico
252 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
I N V E S T I N G I N O U R P EO P L E
Since early 2013 in preparation for its pending closure, the
São Vicente Mine has focused on three key areas with respect
to its employees – retention, training, and transition.
The strategy for retaining key personnel includes a retention
bonus and extended healthcare (including 3 months of
benefits after closure), which are linked to the Company’s
continued quality and safety standards performance.
In terms of training, in 2013 the mine formed a partnership
with SENAI (National Service of Industrial Learning) to
enhance or upgrade the skills
of their employees
and increase their
employability.
The employees
selected the
technical
courses in which
they held interest
including: general electrician, production planning and
control, materials management, and logistics.
Employees also participated in on-site training and educational
incentives (after 6 months with the Company) offered in
partnership with a College in Pontes e Lacerda where 90% of
the school fees were subsidized for technical school programs
and 60% for undergraduate and graduate programs.
In 2013 the following programs were attended:
Course Number of Employees
Technical Studies 12
Undergraduate Studies 29
Graduate Studies (including 4 MBAs) 5
Total Number of Internal Courses 73
Total Number of External Courses 13
For those employees who are laid-off during the closing
process, the subsidy will continue to the end of their studies.
CASE
STU
DY
SÃO VICENTE TRAINING AND MINE CLOSURE PLANNING
LABOUR AND MANAGEMENT RELATIONS (GRI LA4)
Positive employee relations are one of our top workplace
priorities. Our approach to labour relations focuses on positive
and productive relationships with union leadership managed
by human resources professionals at the site level. We support
the right to freedom of association and collective bargaining at
all our operations and we engage with union leaders regularly.
Labour unions have a strong presence in all of our host
countries and all our operations have union representation. At
December 31, 1,247 employees (85%) at the site level were union
members covered by collective bargaining agreements.
The right to collective bargaining and freedom of association
generally does not pose significant operational risk at our sites,
however, the union at our San Andres operation initiated an
illegal strike in late December 2013, which extended into 2014
(for a total of 40 days) in relation to contract renegotiations. This
work stoppage had a negative impact on employees and nearby
communities through the loss of wages and the decrease in
local procurement respectively. At local management’s initiative,
the parties implemented an ongoing tripartite ‘Commission’,
including representatives from the Honduran Ministry of Labour.
This has improved the communication and working relationship
between the Company and the union and its newly formed
leadership as the parties worked through a comprehensive and
difficult restructuring of the workforce.
In Mexico, the union meets regularly with, and enjoys, a
good relationship with management, and takes advantage of
an open-door communication policy. Union board members
at Aranzazu are active participants on safety committees. In
Brazil, the employees of both São Vicente and São Francisco are
represented by the same union and the parties collectively
resolved significant pay for travel time and hours of work issues
successfully, concluding with an updated agreement in
November 2013.
Eliézio Piers da Silva, pit flooded for closure, São Vicente, Brazil
26 AU R A M I N E R A L S I N C .
IN THIS SECTION
Our Approach
Occupational Health & Safety Performance
Health & Safety Training
IN THIS SECTION
Our Approach
Occupational Health & Safety
Health & Safety Training
EMBRACING HEALTH & SAFETY
Aura promotes a safe and healthy workplace as a core organizational
value. Our goal is to build a purpose-driven, high-performance safety
culture that achieves and maintains a safe and healthy workplace free of
accidents, injury, and illness.
272 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
We believe that work-related injury, accidents, and illness are preventable. We commit considerable time and resources to properly train all our employees and encourage all employees to plan and execute work in a safe and responsible manner, and to take all actions necessary to promote and achieve our goal of being a zero-accident company. We foster corporate culture of trust and commitment to motivate our people to embrace and execute our health and safety strategy.
Each and every employee is encouraged to take personal
responsibility for these standards and behaviours – at work
and at home. We have extensive health and safety standards
and objectives and have communicated these targets to our
employees with the goal of zero accidents. Aura currently has
a low number of accidents – but we believe any accidents are
unacceptable and preventable. Our measurement, monitoring
and communication of our performance are integral steps in
increasing awareness and transparency of our progress on the
road to zero accidents.
OCCUPATIONAL HEALTH & SAFETY
Aura believes that sound safety and occupational health manage-
ment practices are in the best interest of all its stakeholders; em-
ployees, business, shareholders and host communities. All of our
operations and development projects have management-worker
health and safety committees in place that monitor and advise
on occupational health and safety programs and issues. The San
Andres and Aranzazu sites extend this commitment further and
have health and safety topics embedded in their formal union
agreements. (LA9) Our Occupational Health & Safety Policy can be
viewed on our corporate website here .
We track occupational safety performance for both employees
and contractors. (LA7) In 2013, there were no fatalities or
occupational illnesses in our operations. There were no lost time
accidents at either São Francisco or São Vicente in 2013, and
we are pleased to report that in March of 2014, São Francisco
surpassed 5,000,000 hours without a lost time accident
At Aranzazu, 8 lost time accidents resulted in 377 lost days. The
number of lost time accidents remained unchanged over 2012
statistics, however the severity index has improved which we
believe can be attributed to the focus in 2013 on enhanced
training for our Health & Safety supervisors. At San Andres 3 lost
time accidents resulted in 67 lost days – representing a significant
decrease over 2012. Management feels that the safety training
and programs have contributed specifically to awareness and care
regarding safety aspects of the job.
E M B R AC I N G H E A LT H & SA F E T Y
THE COMPANY’S INTERNAL SAFETY CAMPAIGN ON THE ROAD TO OUR DESIRED DESTINATION:
Zero Accidents
OUR APPROACH HEALTH AND SAFETY IS EVERYONE’S RESPONSIBILITY
Fire safety training, Aranzazu Mine, Mexico
Blast hole drill, San Andres, Honduras
28 AU R A M I N E R A L S I N C .
All of Aura Minerals’ operations have training, counselling, and
prevention programs in place to further educate our employees,
their families, and community members about occupational
health related concerns and serious diseases. All our operations
conduct monthly and annual programs and campaigns. Some of
the programs at our sites in 2013 included:
Company-Wide•Healtheducationcampaignsonawiderangeofhealth
prevention and maintenance topics including: smoking,
diabetes, hypertension, vaccinations, obesity, drugs and
alcohol, STDs/AIDS, birth control methods, and dengue fever
•Allemployeesareencouragedtoprioritizehealththrough
fitness; whether maintaining weight or reducing stress by
taking breaks or spending recreation time participating in
various fitness options. Three of our operations have an on-site
gymnasium, while corporate office employees receive partial
support for fitness club access.
Honduras - San Andres•ProgramstopromotegeneralHealth&Safety,workaccident
prevention (for example Retrocede y Reflexiona – Step Back
and Think), and incentives for Health & Safety reporting
(Vale por la Vida – Value of Life)
Mexico – Aranzazu•SafetyprogramforsupervisorsofenvironmentandHealth&
Safety teams: Resulted in more cooperative and collaborative
efforts and embracing of safety standards, furthering the overall
safety culture and lessening the accident severity rate
•ImplementationofOHSAS18000certificationaudit–an
employee from São Francisco (certified as an auditor)
developed a work plan and changes that would have to be
implemented to pass a first audit
Brazil - (São Francisco/São Vicente)•Specializedmedicalcheck-upsforconditionspotentially
affecting health (custom focused to the employees position)
•PreventionofAccidentsWeek
E M B R AC I N G H E A LT H & SA F E T Y
OCCUPATIONAL SAFETY PERFORMANCE - 2010 - 2013 FREQUENCY INDEX (INJURY RATE)
Salvador MartinezAssistant-SuperintendentFlotation Plant, Aranzazu
EMPLOYEE PERSPECTIVE
“
“
I have worked at the Aranzazu Mine for twenty-five years and enjoy working with Aura because in addition to excellent benefits and above average salaries, management considers every employee’s point of view and responds to our needs and feedback. Workplace health and safety are strongly emphasized; Aura provides the equipment and in-depth training to improve safety awareness and performance.
Luciana Santos Teixeira, Management System Analyst, São Francisco, Brazil
HEALTH & SAFETY TRAINING
5.00
4.00
3.00
2.00
1.00
0.00
AURA YTD 2010
AURA YTD 2011
AURA YTD 2012
AURA YTD 2013
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
292 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
São Francisco General Manager Jota Junior Jose de Azevedo (left) and Health, Safety and Environment Coordinator Fabiano Martins (right) receive an award from Minerios and Minerales Magazine for 5 million hours without a lost time accident (GRI 2.10)
SAFETY AWARD
EMERGENCY BRIGADESEach of our operations must have an emergency brigade by law.
Each of our operations has its own ambulance and all brigades
are composed of a mandatory, minimum number of trained
volunteers per shift who can attend to fires or other emergencies
for the mine site. Our emergency brigades are available to
voluntarily assist in emergency situations in nearby towns or
communities.
SAFETY COMMITTEES (LA6)
All of our operations have a commission that contributes to
conducting safety inspections and suggesting improvements.
Their mandate is to conduct monthly inspections, identify
areas of improvement, and recommend changes or updates
to training modules. A total of 114 employees (representing
approximately 7.8% of the total work force) participate in
these formal joint management-employee health and safety
commissions that help monitor and advise on occupational
health and safety issues.
São Francisco has an additional safety committee that was
created as a result of the implementation of OHSAS 18000. This
commission is formed by leadership members and their role is to
supervise and evaluate the implementation and compliance of
the OHSAS management system, as well as ISO 14001.
At all our operations, our health and safety efforts are guided
by internationally recognized standards, including the
International Cyanide Management Code, Occupational
Health and Safety Management Systems 18000 series and the
International Organization for Standardization Environmental
ISO 14000 series.
São Francisco achieved OHSAS 18001 certification in 2012. San
Andres and Aranzazu have conducted internal audits and are
working towards implementation in 2014.
Aura believes that sound safety and occupational health management practices are in the best interest of all its stakeholders; employees, business, shareholders and host communities.
SÃO FRANCISCO - HOURS WITHOUT A LOST TIME ACCIDENT:
5,000,000+ HOURS
Fire extinguishing training, São Francisco Mine, Brazil
E M B R AC I N G H E A LT H & SA F E T Y
30 AU R A M I N E R A L S I N C .
STRENGTHENING COMMUNITIES
A key priority for Aura is creating lasting relationships with local communities that are built on
mutual respect and trust, and to achieve agreed-upon objectives while
sharing benefits from projects.
IN THIS SECTION
Our Approach
Community Development and Social Investment
Community Feedback
Social Mine Closure Planning
312 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
S T R E N GT H E N I N G CO M M U N I T I E S
Aura has implemented a community engagement policy and
plan at each project site, which includes (at minimum) the
following components:
• communityidentificationandanalysis,stakeholder
mapping and engagement with key stakeholders to identify
and understand their interests and key concerns
• informationdisclosureinaccessiblevenuesandmeaningful
formats that can be easily understood by local communities
• proactivecommunityconsultationensuringanopen
dialogue between the Company and its stakeholders
• beyondconsultation,awillingnesstonegotiateandbuild
partnerships to reach mutually accepted outcomes
• ensuringtherearegrievanceresponseprocessesinplace
to receive and respond to complaints and that concerns are
responded to in a timely manner
• encouragingcommunityparticipationinthemonitoring
of social and environmental commitments made by
the Company, and retaining external organizations for
monitoring where it can enhance assurance and credibility
• follow-upwiththecommunitybeyondconsultation
stage, including what risk or mitigation actions will
be implemented and how project impacts will be
monitored
OUR APPROACH
We prioritize community development and engagement at all of our operations within our core corporate responsibility principles, which include: adopting a strategic approach; encouraging community participation and engagement; and sustainable support. (SO1)
COMMUNITY DEVELOPMENT AND SOCIAL INVESTMENT
Aura supports sustainable community development programs
- those that contribute to the long-term strengthening of
community capacity and which demonstrate how the mining
project can help realize that vision. Community investment
funding priority is given to sustainable programs which could
conceivably continue beyond mine closure without the ongoing
support, leadership, and financial reinforcement from the
Company. In 2013 we updated our Community Investment Policy
to better define parameters for sustainable initiatives, creating
consistent processes for receiving requests from the community,
and a documentation system for the tracking of community
investment expenditures including staff time where applicable.
These systems will be implemented and tracked in 2014.
A community development initiative has been implemented
at each project site, which provides opportunities for
communities with interests in our operations to share in the
benefits resulting from our activities, including capacity-building
and social investment projects.
While all our community investment expenditures are
voluntary, the total figure is divided into two categories: funding
negotiated with communities for purposes of obtaining and
maintaining social license to operate that constitute a formalized
part of a community agreement, and community investment
for ongoing community development and maintaining strong
community relationships.
The types of social investment projects implemented by the
Company to date include:
• education
• healthservices
• socialinfrastructure
• resettlementsupport
• sustainableproduction
initiatives
• povertyalleviation
• environmental
conservation
Presentation to community members, Serrote da Laje Project, Brazil
32 AU R A M I N E R A L S I N C .
CASE
STU
DY
S T R E N GT H E N I N G CO M M U N I T I E S
Antonio Valdez Carbajal primary school is located in
the nearby town of Concepcion del Oro and teaches
children between the ages of six and twelve years old
in grades one through six. The students are mostly from
rural areas, some of them walking up to two hours to get
to class. In the regular educational system, each grade
has its own classroom, (meaning there should be six
classrooms) however this school only had two, putting
together three grades in each room. Patricia Ramirez,
one of the instructors, approached Aranzazu with a
school expansion request to build one more classroom
with the purpose of providing better attention and more
focused levels of education to the children.
This community-initiated request fit within the
parameters of the Company’s social investment criteria,
and Aranzazu approved and supported the construction
of the new classroom in collaboration with teachers and
the municipality.
In a practical sense, the expansion provided the
opportunity to offer more physical spaces in the school
for children of low income families. This modest initiative
had a positive social impact on both the children and
teachers at the school, who felt the
level of support demonstrated
they were valued and worth
investing in, thereby
increasing their sense
of potential and desire
to continue improving
community conditions.
ARANZAZU : PRIMARY SCHOOL EXPANSION
At San Andres, we have worked with the community through a
series of agreements to define priorities on how the mine can
best contribute to development of its impacted communities.
In 2013 San Andres invested $4.27 million into community
investment. Of this amount, $3.6 million was for the new urban
development project in Azacualpa and $0.58 million was spent
on education, health, infrastructure and other community
development and community initiated requests.
At Aranzazu, $90,000 was spent in community investment – the
bulk of which was for an expansion project at a local primary
school (See Case Study on right).
Brazil invested approximately $192,000 in community
development initiatives, including roads and infrastructure
(bridges, a police station) a fire truck restoration and the São
Vicente housing has been donated to become a daycare facility.
The health and education program Programa Mobilizar was held
in Conquista d’Oeste in 2013 where 7,073 participants benefited
from citizenship and healthcare services and participated in
environmental education programs.
OUR 2014 COMMUNITY INVESTMENT TRACKING WILL INCLUDE:
What we support description of the type of initiative supported/focus of company contribution
What was contributed dollars, value of employee time, in-kind contributions
Why we contributedescription of the Company’s connection to the community development program and/or sustainable community initiatives (for example, what the benefits of making this contribution are)
The impact of the contribution description of the outcome or impact of the program or initiative. An assessment of the long-term achievements of this activity, how many people benefited etc.
Where we contribute the specific communities or regions that received benefit from this initiative or contribution
Community investment funding priority is given to sustainable programs which could conceivably continue beyond mine closure without the ongoing support, leadership, and financial reinforcement from the Company.
332 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
ARANZAZU
KEY IMPACT OR ISSUE DESCRIPTION ACTIONS TAKEN BY AURA MINERALS
Water The region has suffered severe drought conditions in
recent years and water scarcity has become a major
issue for the mine and community sharing certain water
sources
Aura continues to work with the municipality to build a wastewater treatment plant to reuse more
water and reduce the demand for fresh water from shared sources
Community relations keeps local residents apprised of the situation and updates them when possible
Employment/Unemployment There is concern regarding dependency on the mine for
employment opportunities
Aura understands the sensitivity to this issue which is strongly correlated to a mine closure in the
past (under different ownership) and ensures communication with the community emphasizes
anticipated mine life-of-mine as prolonged and that dependency on the mine for employment is not
a short or mid-term issue of concern
SAN ANDRES
KEY IMPACT OR ISSUE DESCRIPTION ACTIONS TAKEN BY AURA MINERALS
Economic and employment
dependency on the mine
There is concern regarding the level of dependency on
the San Andres mine for employment
Aura is working on economically sustainable development initiatives to expand income options for
local families
Concern has been expressed about employment oppor-
tunities in general, as well as ability for members of local
community to obtain supervisory/higher paid positions
In 2013 the Company offered a total of 40 scholarships (up to a university level) as well as provided
in-house training programs to assist local employees with reaching qualifications required to apply
for supervisory positions
Health, Education and
Infrastructure Services
Dependency on the mine for health, education and
infrastructure services. Lack of capacity of the local
government to provide for these services and the mine
has voluntarily filled this gap
Aura is researching partnerships with external organizations as to how to build local capacity
and ultimately transition health, education, and infrastructure responsibility back to the local
government level
Deforestation Concern regarding deforestation in general and length of
time for trees to grow even with reforestation. Particular
concern regarding the open-pit/eventual rehabilitation
The Company has a robust reforestation program in place. In 2013 Aura rehabilitated
fewer hectares than 2012 as there was less area available to work with
S T R E N GT H E N I N G CO M M U N I T I E S
COMMUNITY FEEDBACK (GRI 4.17)
COMMUNITY IMPACTS FEEDBACK BY OPERATION 2013 The following charts outlines community feedback in 2013 and the actions taken by Aura to address these concerns.
Through our ongoing efforts to share information, maintain positive relationships, and develop trust, Aura has learned the most about
the needs and concerns of our local communities. Although at varying levels of sophistication, we have implemented what each site
considers to be most appropriate and approachable mechanism to receive and respond to any community feedback or complaints,
and to ensure that any concerns are responded to in a timely manner.
34 AU R A M I N E R A L S I N C .
SÃO VICENTE/SÃO FRANCISCO
KEY IMPACT OR ISSUE DESCRIPTION ACTIONS TAKEN BY AURA MINERALS
Local job opportunities The mines are important sources of employment and income
for the nearby communities and there is concern about the
economic effect upon pending closure
At São Francisco severance packages will be available upon mine closure and there
is transition training to further skills in mining or other jobs, and assistance for those
who wish to transfer to the neighboring projects of São Francisco or Serrote whenever
possible
The São Francisco mine has training programs to build capacity for local communities,
not only in the areas related to skills useful for the mine, but in skills that can be useful
for other jobs
Certain employees have been transferred to other Aura operations, assisted to obtain
certifications so they can apply to other local mining companies
Increase productivity and sustainability for micro-cap companies within the supply
chain in the region (see Case Study on page 21)
RESETTLEMENT (MM9)
The development of the Serrote da Laje copper-gold-iron ore
project in Brazil involves the resettlement of 279 families residing
on 237 properties that are situated within the boundary of the
Serrote conceptual mine plan. The community of Lagoa da Laje
has been partially relocated and will be fully relocated based on
the completion of a separate financing process for the project.
*In 2012 we reported that 260 families residing on 187 properties were part of the resettlement plan, however the full number of affected properties and families increased during the engagement process (GRI 3.10).
SOCIAL MINE CLOSURE PLANNING (MM10)
Mine closure and the ultimate departure of mining operations
from a region will, unless carefully considered, have a
dramatic economic impact on a community. Our community
development program works in partnership with local
communities to develop capacity building, social investment
projects, and training programs in preparation for the social and
economic transition of a mine closure. Our aim is to engage
often and early, manage community expectations, and develop
sustainable opportunities which could conceivably continue
beyond mine closure without ongoing support, leadership, or
financial reinforcement.
Mining operations at São Vicente ceased in November 2013
however milling and production of final tonnage will
continue into 2014. We are planning and preparing for closure as
well as evaluating options regarding the disposition or sale
of physical assets. Transition training and planning for
employees was also initiated in 2013 (see Case Study on
page 26) . This has been a particularly challenging time, as the
mine is faced with balancing the competing priorities of
retaining the skills and technical expertise to properly de-
commission the mine with the long-term interests of its
employees. The mine closure plan is constantly reviewed and
updated.
Reclamation plans at São Vicente include the strategic planning
for the agricultural and farming potential of the area. Certain
portions of the mining concession may be transferred or rented
to interested farmers.
INDIGENOUS COMMUNITIES (MM5)
São Francisco is Aura’s only operation with indigenous peoples’
territories nearby; the Reserva Indígena Sararé and Reserva
Indígena Paukalirajausu. The Company established a $500,000
fund in 2005 and signed an agreement with FUNAI (Fundação
Nacional do Indio – National Indian Foundation) to administer
the distribution of the funds over a 10 year amortization. Our
Brasilia office has an excellent relationship with FUNAI, which
identifies and develops independent expenditure priorities and
also responds to specific funding requests from the communities.
S T R E N GT H E N I N G CO M M U N I T I E S
Revegetated area. São Francisco, Brazil
352 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
Aura is committed to the mitigation of risk and minimization of environ-
mental impacts, and to the protection of the well-being and sustainability of the environment - now and for future
generations.
RESPECTING THEENVIRONMENT
IN THIS SECTION
Our Approach
Water
Waste Management
Energy and Emissions
Reclamation and Closure
Environmental Protection Expenditures
36 AU R A M I N E R A L S I N C .
TOTAL WATER WITHDRAWAL BY SOURCE (m3/yr in 000s) (EN8)
GroundWater
Rainwater Municipalwater supplies or
other water utilities
Our Environmental and Sustainability Policy, which integrates
the application of the precautionary approach, (GRI 4.11) provides
the framework to meet our goals and responsibilities whereby
we implement our environmental policies, procedures, internal
audits, employee training, and emergency response and
prevention techniques. We work in partnership with federal,
state and municipal authorities regarding standards and
compliance on an array of environmental matters, including air
and water quality, waste, hazardous materials, and mine closure
planning. We promote open communication with employees,
communities, and government on all environmental and
sustainability issues at our operations and on our plans, programs
and performance. We provide management and supervisors at
our operations with the resources and authority necessary to
ensure best environmental practices are followed.
All of our sites follow the ISO 14001 continuous improvement
cycle for environmental compliance – a well known international
best practice model benchmarking performance from
commitment and policy through planning, implementation,
evaluation, and review.
WATER
Water is one of our top material sustainability issues – as a
mining company and as a responsible corporate citizen
recognizing water as an essential human right. Our social
obligation to respect the environment and the communities
where we operate is combined with increasingly important
strategic planning and commitment to methods and
technologies supporting the optimal use of freshwater and the
recycling of wastewater. Water management and reduction of
freshwater needs are a priority to Aura and in this regard we
work closely with local water authorities at each site to design
and implement custom water management and monitoring
programs that accommodate the availability conditions and
concerns of each site.
The San Andres Mine and our Brazilian mines are situated in re-
gions with heavy seasonal rain, and as a result, water scarcity is not
a concern in these areas. Our operation under the most pressure
regarding water availability is the Aranzazu Mine, as continued
drought conditions in some parts of Mexico have created stress on
R E S P EC T I N G T H E E N V I R O N M E N T
OUR APPROACH
Our environmental program is focused on planning, protection and compliance with environmental laws and regulations in all of the jurisdictions where we operate and in all stages of the mine-life cycle; from exploration through pre-development, development, production and closure planning. We fully integrate international environmental standards and best practices into all our operations
TOTAL WATER WITHDRAWAL (m3/yr in 000s) (EN8)
Aranzazu SanAndres
SãoFrancisco
SãoVicente
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2013 2012
Coffee plantation on top of sterile material slope, San Andres, Honduras
2013 2012
SurfaceWater
372 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
certain water resources, including the drinking water supply for the
adjacent community. To help minimize our impact on freshwater,
Aura, in partnership with local Municipal Authorities, are working
towards the construction of a wastewater treatment plant, which
will reduce the amount of freshwater required by the mine.
In 2013, our total water withdrawal (EN8) was approximately
3.6 million cubic metres (m3). This figure is up from 2.9 million
m3 in 2012 due to an increase in production at the San Andres
Mine, however it should also be noted that more than half of the
water withdrawal (1.4 million m3) came from rainwater collected
and stored at San Andres. Although São Vicente is closing down,
mineral processing continues, which requires ongoing water
consumption.
The extraction of surface water is regulated by respective
national authorities at all operations. Permits are issued taking
into consideration that the total amount of water expected to be
withdrawn will not have significant impacts on the water flow or
on surrounding flora and fauna.
To minimize impact and consumption from freshwater sources,
our operations reuse as much water as possible. Our gold mines
all work under a ‘closed loop’ system, where water is constantly
recycled throughout the process. The only discharge takes
place during the rainy season as the ponds can overflow and
the excess water is discharged after going through a treatment
neutralization process. Every discharge point is monitored to
ensure water quality standards are maintained. Aura’s total water
discharge in 2013 was 1,088,000 m3, which represents 30% of
our total water consumption. (EN21)
WASTE MANAGEMENT ( M M 3 )
Mining operations generate both hazardous and non-hazardous
waste materials which require integrated plans for responsible
and diligent storage, re-use, recycling or disposal. Aura disposes
of its hazardous and non-hazardous waste in accordance with its
waste management plans in combination with local regulatory
requirements and waste processing capacity.
With respect to process waste such as tailings and waste rock,
we take great care in the design and maintenance of our
reservoir and acid rock drainage management, and the
management of hazardous substances to prevent leakage or
threats to the environment.
R E S P EC T I N G T H E E N V I R O N M E N T
NON-HAZARDOUS WASTE
Topsoil Removed and deposited in an organic soil dump for use at a later date for remediation processes or reforestation activities
Waste Rock Non mineral containing rock is stock-piled for future attention in conjunction with rehabilitation/mine closure plans
Non-organic recyclable waste (glass, paper, plastic or wood)
Recycled where possible
Non-organic waste Disposed of in landfills
Organic waste Composted where possible or transported to landfill
HAZARDOUS WASTE
Tailings Aranzazu is the only operation with tailings. The dam was designed and built to international best practice standards and is monitored and inspected regularly to prevent any threats to water quality. No tailings are disposed in or near water supplies
Sludge San Andres is the only operation with sludge and has a lined sludge container, which is restricted to a confined area
Burned oil, transmission fluids and lubricants
In most cases are sold for use as fuel by a third party
Containers in contact with hazardous substances
Sold for use as fuel or incinerated
Batteries Sent back to the supplier
Scrap Sold to a third party for melt down or recycling
Ongoing waste dump slope remediation, São Vicente, Brazil
Our waste is classified as non-hazardous and hazardous waste
and is managed as described below:
38 AU R A M I N E R A L S I N C .
ENERGY AND EMISSIONS (EN3/EN4)
As part of Aura’s company-wide risk assessment and optimization
strategy, energy consumption is monitored and evaluated on
an ongoing basis for its direct effect on operational costs and
impact on greenhouse gas emissions. Our energy consumption is
predominantly from diesel, followed by purchased electricity.
At present, we do not have many renewable energy sources at
our operations, however the electricity purchased in Brazil comes
predominantly from hydro-electric power, and São Vicente and
São Francisco converted to ethanol as fuel for its light vehicles.
Brazil has a biodiesel mandate requiring the use of B5 Biodiesel
(blend of conventional diesel and 5% biodiesel) in a country-wide
improvement in fuel mix.
Our biggest source of emissions is diesel consumed in varying
parts of the mining process, therefore our efforts to reduce
emissions have been predominantly focused on diesel. At all
operations we are making efforts to optimize the logistical aspects
of transportation in and out of the mine, as well as ensuring
maximum capacity loads for trucks on every trip. In Brazil, this
includes planning closer dump sites and inpit dumping where
resources are not compromised. All operations have ongoing
training programs for operators to ensure they are driving vehicles
in the most energy efficient way.
GREENHOUSE GAS EMISSIONS (EN16)
To calculate our greenhouse gas emissions we use the World
Business Council for Sustainable Development (WBCSD)/ World
Resources Institute (WRI) Greenhouse Gas Protocol, which is the
most widely used international accounting tool to understand,
quantify, and manage greenhouse gas emissions. Our direct
(Scope 1) emissions include energy from renewable and non-
renewable sources and process emissions from explosives. Indirect
(Scope 2) emissions include energy consumption from purchased
electricity. The greenhouse gas calculations for explosives are
based on the Australian National Greenhouse Accounts Factors.
Our total emissions for 2013 were 88,567 tCO2e, which is 10%
lower than our total emissions in 2012 due predominantly to the
closure of the São Vicente Mine.
R E S P EC T I N G T H E E N V I R O N M E N T
TOTAL DIRECT AND INDIRECT GREENHOUSE GAS EMISSIONS BY SOURCE (tCO2e)
GHG EMISSIONS BY SOURCE GHG EMISSIONS
Aranzazu SanAndres
SãoFrancisco
SãoVicente
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Maria Dolores de LaraLaboratory CoordinatorAranzazu
Our lab is the department of quality control at
Aranzazu and works closely with the Environmental
department to ensure we comply with environmental
and emissions regulations and to identify areas of
improvement. The work conducted in the lab has
improved greatly over the past four years: Aura provides
excellent support and empowers employees to develop
and implement new ideas. This workplace culture has
resulted in motivated and committed employees and an
increased staff retention rate.
Diesel (Fuel Oil)
2% Diesel S10
1% LPG
>1% Gasoline
Emulsions 1%
Explosives (ANFO) 1%
>1% Ethanol
EMPLOYEE PERSPECTIVE
“
“
50%45%Purchased
Electricity
Aura promotes open communication with employees, communities and government on all environmental and sustainability issues at our operations and on our plans, programs and performance. We provide management and supervisors at our operations with the resources and authority necessary to ensure best environmental practices are followed.
2013 2012
392 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
R E S P EC T I N G T H E E N V I R O N M E N T
CARBON INTENSITY To understand efficiencies in our processes and the significance
of any of our future GHG reduction efforts, we chose to measure
carbon intensity per tonne of material mined (moved) and carbon
intensity per unit (ounces or pounds) produced.
Carbon intensity is highest at our Aranzazu operation due to the
mining method and smaller equipment, therefore taking more
trips to transport the same amount of ore over the same distance.
Additionally, the underground equipment is diesel, generating
more CO2 than gasoline equipment.
Year-over-year performance:
• SanAndresreduceditscarbonintensityover2012by13%,
through equipment optimization and efficiency planning,
including increased processing throughput (from 800 tonnes/
hour to approximately 1,050-2,000 tonnes/hour) and strategic
maintenance stops reducing unplanned stoppage time
• CarbonintensityatAranzazuincreasedby2%in2013,dueto
slightly longer material transport hauls
• ThesharpdecreaseatSãoVicentewastheresultofmining
operations considerably reduced throughout the year and
completely ceasing in November of 2013
• Thehigher2013valueforSãoFranciscoreflectsthedeeper
mining (end of mine-life) and associated longer average haul
distance from the pit, as well as the additional electricity used
to process a higher tonnage of ore
Aranzazu San AndresSão
Francisco São Vicente Total
Total land disturbed and not yet rehabilitated 16 123 476 358 973
Total land disturbed and rehabilitated so far 5 91 74 42 212
Total land disturbed in 2013 0 28 1 0 29
Total amount of land rehabilitated in 2013 0 5 12 7 24
Aranzazu(oz gold)
SanAndres
(oz gold)
SãoFrancisco(oz gold)
SãoVicente
(oz copper)
25.00
20.00
15.00
10.00
5.00
0San
Andres São
Francisco São
Vicente
1000.00
800.00
600.00
400.00
200.00
0.00
CARBON INTENSITY (tCO2e)
PER LB COPPER PER OZ GOLD PER TONNE MOVED
Aranzazu
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
2013
2012
AMOUNT OF LAND DISTURBED AND REHABILITATED (IN HECTARES) (MM1)
New Reforestation Technique, San Andres, Honduras
Note: Figures do not align precisely with those reported in 2012 due to changes in what was considered ‘disturbed land’.
40 AU R A M I N E R A L S I N C .
RECLAMATION AND CLOSURE (MM1/MM10)
Aura is committed to the rehabilitation and reclamation of land
we disturb in the mining process. Environmental stewardship
at our sites integrates the mitigation of risks and impacts while
pursuing opportunities for conservation and rehabilitation of
land and habitats outside our mining concessions or property
boundaries affected by our operations. It also includes
conservation and remediation efforts on land that is not disturbed
by our mining operations. All sites have nurseries to collect and
nurture native species of plants to be used for reforestation,
remediation and compensatory efforts.
All our operations have approved and updated mine closure plans
in place (including the Serrote Project, which submitted a concep-
tual mine closure plan as part of its environmental permit applica-
tion). Total undiscounted mine closure obligations (environmental
restoration and closing costs) for the company at the end of 2013
were estimated at $29.5 million (compared to $34.8 million at the
end of 2012) and are expected to be incurred through 2026.
We regularly examine and update our mine closure obligation
estimates. In 2013 we recorded an increase in the provision
for mine closure and restoration related to the San Andres and
Aranzazu mines, offset by a decrease in the provisions related to
the Brazilian Mines.
Reclamation expenditures between 2014 and 2019 are
expected to be approximately $6.2 million - $4.4M in 2014 and
$1.8 between 2015 and 2019.
Mining activities at the São Vicente Mine were originally an-
ticipated to cease in 2013. While mining has indeed stopped,
processing activities continue and these facilities will remain
operational until mid-2014 when all operations will cease, with
decommissioning activities scheduled to commence within the
year (refer to Strengthening Communities for details regarding the
social aspects of the mine closure plan).
In 2013 the San Andres Mine implemented an innovative and
experimental method of reforestation technique that has had very
positive results. The new method represents a move from manual
tree planting to a mechanical process for reforestation that is
more efficient and effective by accessing areas that are difficult
to reach manually or are located in dangerous locations
(slope). This technique results in better roots for the seed, and
due to the uniformity of the soil coverage also reduces erosion
(photo page 40).
BIODIVERSITYAura makes every effort to protect and preserve ecosystems,
biodiversity, and affected species. All of our sites have conducted
assessments to identify any critical or endangered flora or fauna.
None of our operating sites contain any at-risk or endangered
species of flora or fauna, nor do any operating property conces-
sions contain any habitats or species requiring specific protecting
or restoring.
R E S P EC T I N G T H E E N V I R O N M E N T
CASE
STU
DY
In 2013 the San Andres Mine signed an agreement to collaborate on the biodiversity
protection and management plan of the Wildlife Refuge and Biological Reserve of
ERAPUCA, located within the municipality of La Union in Honduras. The partners in
the project include the San Andres Mine, the National Institute of Conservation, Forest
Development, Protected Areas and Wildlife, the municipalities that share ERAPUCA, and
an independent consulting firm. While this collaboration is still in early formation, the
San Andres Mine must rehabilitate areas outside the boundaries of its mining concession
as a commitment embedded in its mining agreement, and the Mine is hopeful that the
ERAPUCA Reserve will be a very worthwhile environmental and biodiversity endeavour
to help meet this requirement .
SAN ANDRES: BIODIVERSITY AGREEMENT
The ERAPUCA Wildlife Refuge and Biological Reserve
ENVIRONMENTAL PROTECTION EXPENDITURES (EN30)
Aura makes and measures environmental protection expenditures
as part of our commitment to the protection and long-term
sustainability of the environment, our environmental risk
mitigation and prevention programs, and to track performance of
our environmental management system.
Expenditures are divided into two categories: (i) waste disposal,
emissions treatment and remediation costs; and (ii) prevention
and environmental management costs. Examples of some of
our environmental protection expenditures include monitoring
equipment for dust, air, noise and soil analysis, the classification
of types of discharges, incineration expenses (oil and other
pollutants), storage of hazardous wastes, insurance for
environmental liability and, if applicable, clean-up costs.
Aura incurred approximately $5.3 million* in environmental
protection expenditures in 2013.
* This figure represents a $1.6M increase over 2012, which was incorrectly stated in 2012 as $6.12M due to inconsistencies between operations as to the classification of what constituted environmental protection expenditures.
412 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
ECONOMIC PERFORMANCE INDICATORS Economic Performance ECI Approximate Economic Benefits to Local Communities
(Values are expressed in thousands of US dollars) Aranzazu San Andres Brazilian Mines Total
Community Investment $90 $4,270 $192 $4,552 Market Presence EC6. Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
Aranzazu San Andres São Francisco São Vicente Average
Percentage of suppliers from nearby communities 4.0% 4.0% 3.0% 10.0% 5.3%
Percentage of suppliers from nearby States or Provinces 49.0% 1.0% 25.0% 40.0% 28.8%
Percentage of suppliers from the rest of the country 45.0% 65.0% 55.0% 40.0% 51.3%
Percentage of suppliers from abroad 2.0% 30.0% 17.0% 10.0% 14.8%
Total 100% 100% 100% 100% 100%
Total Production
Gold (oz) Copper (lb)
Aranzazu — 13,626,982
San Andres 65,424 —
São Vicente 36,669 —
São Francisco 106,894 —
Total 208,987 13,626,982
KEY PERFORMANCE DATA
42 AU R A M I N E R A L S I N C .
K E Y P E R F O R M A N C E DATA
LABOUR PRACTICES Aspect: EmploymentLA1. Total workforce by employment type, employment contract, and region.
Aranzazu San Andres São Francisco São Vicente Serrote Brasilia office Corporate Office Total
Men Women Men Women Men Women Men Women Men Women Men Women Men Women
Total number of employees 486 82 325 61 267 31 135 14 25 4 5 4 13 11 1,463
Permanent contract 482 80 289 51 496 60 135 14 25 4 5 4 13 11 1,669
Temporary contract 4 2 36 10 10 0 0 0 0 0 0 0 0 0 62
Workers 440 76 266 53 230 30 124 13 23 3 1 3 0 0 1,262
Supervisors 36 5 40 6 23 1 8 1 2 1 2 1 0 0 126
Executives 10 1 19 2 14 0 3 0 0 0 2 0 0 0 51
Contractors 125 5 354 66 0 0 51 25 0 0 0 0 0 0 626
Total 611 87 679 127 267 31 186 39 25 4 5 4 0 0 2,065
Honduras 0 0 315 61 0 0 0 0 0 0 0 0 0 0 376
Brazil 0 0 2 0 267 31 135 14 25 4 5 4 0 0 487
Mexico 484 82 0 0 0 0 0 0 0 0 0 0 0 0 566
Canada 0 0 0 0 0 0 0 0 0 0 0 0 13 11 24
Foreigners 2 0 8 0 0 0 0 0 0 0 0 0 0 0 10 Aspect: Labour/Management Relationships LA4. Percentage of employees covered by collective bargaining agreements.
Aranzazu San Andres São Francisco São Vicente Total
Total number of employees covered by collective bargaining agreements 460 340 298 149 1247
Percentage of total employees covered by collective bargaining agreements 81% 88% 100% 100% 85%
Aspect: Occupational Health And Safety LA6. Percentage of total workforce represented in formal joint management worker health and safety committees that help monitor and advise on occupational health and safety programs
Aranzazu San Andres São Francisco São Vicente Total
Number of employees that participate in health and safety committees 38 47 22 7 114
Percentage of employees represented in health and safety committees 6.7% 12.2% 7.4% 4.7% 7.8%
Number of formal committees in place 3 2 2 1 8
432 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
K E Y P E R F O R M A N C E DATA
Aspect: Occupational Health And Safety LA7. Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region1
Aranzazu San Andres São Francisco São Vicente Total
Men and Women Men Women Men Women Men Women Men and Women
Number of lost days2 377 67 0 0 0 0 0 444
Number of absentee days 4,790 1,682 403 1,717 51 538 15 9,196
Number of accidents3 8 3 0 0 0 0 0 11
Number of occupational diseases 0 0 0 0 0 0 0 0
Number of deaths 0 0 0 0 0 0 0 0 (1) Data is aggregate for all employees – gender data was not available at all sites for 2013(2) Lost days are days where an employee cannot return to work for the next shift due to injury (3) Number of accidents are those accidents which generate lost days
Frequency index rate under North American Standards
(based on 200,000 hours worked) Aranzazu San Andres São Francisco São Vicente
Frequency index (lost time accident rate) 1 0.68 0.20 0.00 0.00
Severity index2 31.13 4.41 0.00 0.00
Frequency index rate under Latin American Standards
(based on 1,000,000 hours worked) Aranzazu San Andres São Francisco São Vicente
Frequency index (lost time accident rate)1 3.39 0.99 0.00 0.00
Severity index2 155.66 22.04 0.00 0.00 Aspect: Training
LA10. Average hours of training per year per employee by employee category
Aranzazu San Andres São Francisco São Vicente Total
Men and Women Men Women Men Women Men Women Men and Women
Workers 3,466 1,139 43 7,905 1,031 4,996 837 19,417
Supervisors 280 307 26 791 34 699 9 2,146
Executives 0 186 7 481 0 179 0 853
Contractors 3,384 4,151 1 11,710 1,417 1,878 943 23,484
Total 7,130 5,783 77 20,887 2,482 7,752 1,789 45,900
Average per gender N/A 17.79 1.26 78.23 80.06 57.42 127.79
42.55Average total 12.55 15.18 78.42 64.03
(Note) Data is aggregate for all employees – gender data was not available at all sites for 2013
(1) Frequency index refers to the frequency of lost time accidents relative to the total time worked by the total workforce multiplied by a factor of 1,000,000 in Latin America and a factor of 200,000 in North America. Lost days are days where an employee cannot return to work for the next shift due to injury
(2) Severity index refers to the total number of lost days relative to the total time worked by the total workforce multiplied by a factor of 1,000,000 in Latin America and a factor of 200,000 in North America
44 AU R A M I N E R A L S I N C .
K E Y P E R F O R M A N C E DATA
SOCIETY PERFORMANCE
Closure Planning
MM10. Number and percentage of operations with closure plans
Aranzazu San Andres São Francisco São Vicente Total
Number of company operations that have closure plans updated and approved.
1 1 1 1 4
ENVIRONMENT PERFORMANCE INDICATORS 2013
Energy
EN3. Direct energy consumption by primary energy source.
Aranzazu San Andres São Francisco São Vicente Total
Direct renewable energy sources:
Ethanol (l) - process usage 0 0 509,679 400,415 910,094
Ethanol (l) - vehicle usage 0 0 56,631 44,849 101,480
Total Ethanol 0 0 0 0 0
Direct non-renewable energy sources: 0 0 0 00 0
Diesel (Fuel oil-l) 2,774,722 11,385,364 9,175,148 23,335,234
Diesel S5 (Fuel oil-l) 0 0 458,757 2,449,219 2,907,976
Gasoline (l) 129,836 88,939 3,553 1,724 224,052
LPG (tonnes) 0 0 380 9 390
LPG (l) 7,109 225,429 0 0 232,538
Ammonium nitrate (ANFO - tonnes) 669 1,534 2,880 0 5,083
Emulsions (tonnes) 103 48 3,572 908 4,630
EN4. Indirect energy consumption by primary source.
Aranzazu San Andres São Francisco São Vicente Total
Purchased Electricity (MWh) 22,317 446 34,754 13,842 71,359
452 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
WaterEN8. Total water withdrawal by source
Aranzazu San Andres São Francisco São Vicente Total
Total volume of water (m3) withdrawn from:
Surface water 0 106,224 925,368 392,766 1,424,358
Ground water 690,555 0 0 0 690,555
Rainwater collected directly and stored 0 1,374,546 0 1,487 1,376,034
Municipal water supplies or other water utilities. 0 126,891 0 0 126,891
Total 690,555 1,607,662 925,368 394,253 3,617,838
Emissions, Effluents, and WasteEN16. Total direct and indirect greenhouse gas emissions by weight
Direct Emissions - Scope 1 (tCO2e)
Aranzazu San Andres São Francisco São Vicente Total
Stationary and mobile combustion
Direct renewable energy sources:
Ethanol 0 0 83 66 149
Direct non-renewable energy sources:
Diesel (Fuel oil) 8,324 34,156 27,525 0 70,006
Diesel S10 (Fuel oil) 0 0 551 2,939 3,490
Gasoline 260 178 7 3 448
LPG 11 338 1,115 27 1,491
Process emissions (Explosives)
Explosives (ANFO) 114 261 490 0 864
Emulsions 18 8 607 154 787
Total 8,726 34,941 30,378 3,189 77,235
Total direct emissions in tCO2e 77,235
K E Y P E R F O R M A N C E DATA
46 AU R A M I N E R A L S I N C .
Indirect Emissions - Scope 2 (tCO2e)
Purchased electricity 10,154 409 2,229 888 13,679
Total indirect emissions in tCO2e 13,679
Totals per mine 18,880 35,350 32,607 4,077 90,914
Total emissions (tCO2e) 90,914
Emissions, Effluents, and WasteEN21. Total water discharge by quality and destination.
(m3/yr) Aranzazu San Andres São Francisco São Vicente Total
Volume of planned and unplanned water discharges in cubic meters per year by
Surface water 0 0 899,763 2,928 902,691
Ocean 0 0 0 0 0
Ground water 0 0 0 0 0
Water treatment plant 0 126,891 58,491 675 186,057
Total 0 126,891 958, 254 3,603 1,088,748
Percentage water treated 17%
Emissions, Effluents, and WasteMM3. Total amounts of overburden, rock, tailings, and sludges and their associated risks
(ktonnes) Aranzazu San Andres São Francisco São Vicente Total
Overburden, rocks 2,203 3,851 6,727 0 12,781
Tailings 771 0 0 0 771
Sludges 0 7 0 0 0
OverallEN30. Total environmental protection expenditures and investments by type
(Thousands of USD) Aranzazu San Andres São Francisco São Vicente Total
Total expenses related to the environmental area $54 $1,993 $2,700 $588 $5,334
Expenses related to waste disposal, emissions treatment, and remediation $17 $1,606 $488 $388 $2,499
Expenses related to prevention and environmental management $16 $387 $2,212 $199 $2,814
K E Y P E R F O R M A N C E DATA
472 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
STANDARD DISCLOSURE DESCRIPTION LOCATION (source, section or page)
STRATEGY AND ANALYSIS
1.1 Statement of the most senior decision-maker of the organization Message from the President and CEO, Page 8
1.2 Description of key impacts, risks and opportunities About Aura Minerals, Page 4-7
Annual Information Form (AIF), Pages 8-62 and Pages 66-72
ORGANIZATIONAL PROFILE
2.1 Name of the organization About Aura Minerals, Page 2
2.2 Primary brands, products and/or services About Aura Minerals, Page 4-5
2.3 Operational structure of the organization About Aura Minerals, Page 4
AIF, Page 5
2.4 Location of organization’s headquarters About Aura Minerals, Page 4
2.5 Number of countries where the organization operates and names of countries with major operations About Aura Minerals, Page 4
Company Website
2.6 Nature of ownership and legal form AIF, Page 5
2.7 Market served (including geographic breakdown, sectors served and types of customers/beneficiaries) About Aura Minerals, Page 5
Company Website
AIF, Page 6
2.8 Scale of the reporting organization About Aura Minerals, Page 4-5
Investing in Our People, Page 23
AIF, Page 5
2.9 Significant changes during the reporting period regarding size, structure and ownership There were no significant changes in size or ownership during the reporting period, however the Company re-located its Corporate office to Toronto in February 2013.
2.10 Awards received in the reporting period Health & Safety, Page 30
REPORT PARAMETERS
3.1 Reporting period for information provided January 1-31, 2013
About this Report, Page 2
3.2 Date of most recent previous report, if any 2012 Corporate Responsibility Report
About this Report, Page 2
3.3 Reporting cycle Annual
About this Report, Page 2
GRI CONTEXT INDEX
48 AU R A M I N E R A L S I N C .
G R I CO N T E N T I N D E X
STANDARD DISCLOSURE DESCRIPTION LOCATION (source, section or page)
3.4 Contact point for questions regarding the report or its contents Inside back cover
3.5 Process for defining report content About This Report, Page 2-3
3.6 Boundary of the report About This Report, Page 2
3.7 Limitations on the scope or boundary of the report About This Report, Page 2
3.8 Basis for reporting on joint ventures Not applicable. Aura Mineral had no joint ventures in 2013
3.9 Data measurement techniques and bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of indicators and other information in the report
Unless otherwise indicated, the measurement and calculation of data in this report followed GRI guidance
3.10 Explanation of the effect of any re-statements No significant effects. Minor restatements are noted on pages 35, 40, 41
3.11 Significant changes in scope, boundary or measurement from previous reporting periods None
3.12 Table identifying the location of Standard Disclosures in the report GRI Content Index, Pages 48-52
3.13 Policy and current practice with regard to seeking external assurance About This Report, Page 2
GOVERNANCE COMMITMENTS AND ENGAGEMENT
4.1 Governance structure of the organization including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight Governance and Guidance, Page 15
2014 Notice and Management Information Circular, Pages 8-10
4.2 Indication whether chair of the highest governance body is also an executive officer The Chair is not an Executive Officer
Governance and Guidance, Page 15
4.3 Number and gender of members of the highest governing body that are independent and/or non-executive members Governance and Guidance, Page 15
Information Circular
AIF, Pages 65-66
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body Governance and Guidance, Page 15-16
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executive and the organizations performance (including social and environmental performance)
Governance and Guidance, Page 15
Information Circular, Pages 10-21
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided Governance and Guidance, Page 14
Code of Business Conduct and Ethics
AIF, Page 66
4.7 Process for determining the composition, qualifications and expertise of the members of the highest governing body and its committees, including any consideration of gender and other indicators of diversity
Governance and Guidance, Page 15
Information Circular
4.8 Internally developed statements of mission, values, codes of conduct and principles relevant to economic, environmental and social performance and status of their implementation Vision and Mission, Page 7
Code of Business Conduct and Ethics
Environmental Policy
Community Engagement and Development Policy
492 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
G R I CO N T E N T I N D E X
STANDARD DISCLOSURE DESCRIPTION LOCATION (source, section or page)
4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct and principles
Governance and Guidance: Page 16
AIF, Pages 4-5
Information Circular, Schedule A
4.10 Process for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental and social performance Governance and Guidance, Page 15
4.11 Explanation of whether and how the precautionary approach is addressed by the organization Respecting Our Environment, Page 37
Environmental Policy
4.12 Externally developed economic, environmental and social charters, principles or other initiatives to which the organization subscribes or endorses Governance and Guidance, Page 18
4.13 Memberships in associations and/or national/international advocacy organizations Governance and Guidance, Page 18
4.14 List of stakeholder groups engaged by the organization Governance and Guidance, Page 17
4.15 Basis for identification and selection of stakeholders with whom to engage Governance and Guidance, Page 17
4.16 Approaches to stakeholder engagement, including frequency of engagement by type by stakeholder group Governance and Guidance, Page 17
Strengthening Communities, Page 32
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting
Strengthening Communities, Page 33-35
Governance and Guidance, Page 17
PERFORMANCE INDICATOR DESCRIPTION LOCATION
ECONOMIC
Disclosure of Management Approach Creating Economic Value, Page 20
Aspect Economic Performance
EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments
Creating Economic Value, Page 20
Key Performance Data, Page 42
Aspect Market Presence
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation Creating Economic Value, Page 21
Key Performance Data, Page 42
ENVIRONMENTAL
Disclosure of Management Approach Respecting our Environment, Page 37
Key Performance Data, Page 45
50 AU R A M I N E R A L S I N C .
STANDARD DISCLOSURE DESCRIPTION LOCATION (source, section or page)
Aspect Energy
EN3 Direct energy consumption by primary energy source Respecting our Environment, Page 39
Key Performance Data, Page 45
EN4 Indirect energy consumption by primary source Respecting our Environment, Page 38
Key Performance Data, Page 45
Aspect Water
EN8 Total water withdrawal by source Respecting our Environment, Page 38-39
Key Performance Data, Page 46
Aspect Biodiversity
MM1 Amount of land (owned or leased, and managed for production activities or extractive use) disturbed or rehabilitated Respecting our Environment, Page 41
Aspect Emissions, Effluents and Waste
EN16 Total direct and indirect greenhouse gas emissions by weight Respecting our Environment, Page 39
Key Performance Data, Page 46
EN21 Total water discharge by quality and destination Respecting our Environment, Page 38
Key Performance Data, Page 47
MM3 Total amounts of overburden, rock, tailings, sludges and their associated risk Respecting our Environment, Page 38
Key Performance Data, Page 47
EN23 Total number and volume of significant spills. None
Aspect Overall
EN30 Total environmental protection expenditures and investments by type Respecting our Environment, Page 41
Key Performance Data, Page 47
LABOUR PRACTICES AND DECENT WORK INDICATORS
Disclosure of Management Approach Investing in our People, Page 23
Aspect Employment
LA1 Total workforce by employment type, employment contract and region by gender Investing in our People, Page 23
Key Performance Data, Page 43
Aspect Labour/Management Relations
LA4 Percentage of employees covered by collective bargaining agreements Investing in our People, Page 26
Key Performance Data, Page 43
MM4 Number of strikes and lock-outs exceeding one week’s duration Investing in our People, Page 21
PERFORMANCE INDICATOR DESCRIPTION LOCATION
G R I CO N T E N T I N D E X
512 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT
G R I CO N T E N T I N D E X
STANDARD DISCLOSURE DESCRIPTION LOCATION (source, section or page)
Aspect Occupational Health & Safety
LA6 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs Health & Safety, Page 30
Key Performance Data, Page 43
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region and by gender. Health & Safety, Page 29
Key Performance Data, Page 44
LA9 Health & Safety topics covered in formal agreements with trade unions Health & Safety, Page 28
Aspect Training and Education
LA10 Average hours of training per year per employee by employee category Investing in our People, Page 24
Key Performance Data, Page 44
Key Performance Data, Page 43
HUMAN RIGHTS INDICATORS
Disclosure of Management Approach Governance and Guidance, Page 15
Aspect Non-Discrimination
Total number of incidents of discrimination and actions taken None
Governance and Guidance, Page 15
Aspect Child Labour
HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective elimination of child labor Governance and Guidance, Page 15
Aspect Indigenous Rights
MM5 Total number of operations taking place in or adjacent to Indigenous Peoples’ territories, and number and percentage of operations or sites where there are formal agreements with Indigenous Peoples’ communities
Strengthening Communities, Page 35
SOCIETY
Disclosure of Management Approach Strengthening Communities, Page 32
Aspect Local Community
SO1 Nature, scope and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating and exiting Strengthening Communities, Page 32-35
MM9 Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process Strengthening Communities, Page 35
MM10 Number and percentage of operations with closure plans. Strengthening Communities, Page 35
Respecting Our Environment, Page 41
Key Performance Data, Page 45
PRODUCT RESPONSIBILITY
Aspect Customer Health and Safety
PR1 Life cycle stages in which health and safety impacts and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures Aura Minerals’ products do not present health or safety risks to our consumers. Typical product labeling, marketing, customer privacy and product use requirements do not apply to our products
PERFORMANCE INDICATOR DESCRIPTION LOCATION
52 AU R A M I N E R A L S I N C .
WE WELCOMEYOUR FEEDBACK
QUESTIONS, COMMENTS, OR FEEDBACK ABOUT THIS REPORT? (GRI 3.4)
PLEASE CONTACT Gonzalo Rios, VP Corporate Responsibility
AURA MINERALS INC.155 University Avenue, Suite 1240
Toronto, ON, Canada M5H 3B7
(416) 649-1033
www.auraminerals.com
WWW.AURAMINERALS.COM