Corporate Environmental, Sustainability And Social Responsibility

During 2006, DPM appointed a Vice President, Environment and Sustainable Development, in order to bring focus at the senior management level to these critical elements of its business activities. The Board also approved a formal environment and sustainable development policy which provides additional guidance to that contained in the Code of Business Conduct and Ethics of the Corporation. The policy is being introduced to all DPM employees.

In 2006, the Chelopech Mine was selected as a winner of the International Green Apple Environmental Gold Award presented by The Green Organization in recognition of its mining rehabilitation program and subsequently became one of their Green Heroes 2007. This is the first time a mine in Europe has been awarded the gold prize. The Green Organization is an independent, non-profit environmental group, based in the United Kingdom, dedicated to promoting environmental endeavours.

In addition to the above environmental award, the Chelopech Mine continues to be an important direct and indirect contributor to the regional and local economy. A number of programs designed to provide focused support to the adjacent Chelopech village continued throughout the year. Examples of such programs are: the establishment and ongoing support of the Chelopech high school, funded by the Chelopech Mine and the provision of equipment to Sofia’s Pirogov Emergency Institute.

The Krumovgrad Gold Project EIA meets and in many aspects exceeds European standards. The project information office has remained open and the community and social program manager has remained at site. DPM expects to recommence the project and will continue community support.

At the Kapan Mine, DPM’s environmental staff started a process of risk assessment and identification of areas that required prompt intervention. As a result, a comprehensive program to apply DPM’s environmental, health and safety standards is being undertaken and includes changes to tailings management practices, improvement of systems and procedures and preparation of a baseline environmental and socio-economic study of the region.

During 2005 and 2006 at Back River’s Goose and George Lake deposits, DPM conducted baseline hydrological sampling, collection and interpretation of weather station data and a water sampling program. Additional work included fish habitat sampling, an ongoing drill sump clean-up exercise at Goose Lake and continuous collection of weather data at Goose Lake. DPM completed the construction of a lined and bermed fuel farm at the George Lake property, which consists of two 70,000 litre capacity double hulled Envirotanks. Further studies and a complete review of all baseline data will be required to develop impact assessments, mitigation procedures and abandonment and reclamation plans which are required to complete the environmental impact statements necessary for production permitting in compliance with Canadian environmental regulations.

In Serbia, during 2006, the environmental and community program focused on preparation of a baseline study, engagement with the communities in which DPM operates as well as locating, and where necessary, training Serbian service providers. During 2007, DPM will continue the existing baseline program to ensure that relevant information is gathered and programs are implemented that will facilitate and expedite permitting requirements, and focus on priority exploration targets.

DPM is committed to achieving and maintaining recognized best practice mining, processing, environmental and health and safety standards at all its operations and facilities. In addition, DPM is committed to protecting the health and safety of all its employees and supports the longer term economic needs and aspirations of the local communities in which it is involved. The Company makes the protection of the environment, from exploration and mining through to rehabilitation and closure, a specific feature of its operations.