Safety, Environment, Sustainability and Social Responsibility
During 2008, DPM continued to work toward meeting its commitment of achieving and maintaining recognized best practice mining, processing, environmental and health and safety standards at all its operations and facilities. The protection of employees, communities and the environment, from exploration and mining through to rehabilitation and closure, remains key to successful project development and operation.
In 2008, the Corporation continued the progressive implementation of strong environment and sustainability policies across the business with the development and training of country teams. However during the latter part of 2008 some of the resources were reallocated as some operations were put on care and maintenance and exploration activities were suspended. An internal risk assessment was carried out wherever operations were suspended to ensure that standards of regulatory compliance and best practice environmental performance would be maintained.
The country teams report, on a quarterly basis, to senior management of the Corporation who, in turn, report directly to the health, safety and environment committee of the Board. The committee meets, on at least a quarterly basis, to monitor management’s progress in the implementation of policy and provides support for the commitment made by the Board with respect to social and environmental responsibility.
As part of meeting its best practice commitments, DPM joined the International Cyanide Management Institute and signed the International Cyanide Management Code (the “Code”) during 2007. The Code allows for pre-certification of projects and operations and the Chelopech metals production project was nominated for assessment. The pre-certification audit of the Chelopech metals production project was undertaken in mid-2008 and effective certification was awarded October 31, 2008.
Improvements to health, safety, environment and sustainable development continued at Chelopech with the development and internal release of a draft DPM health & safety policy with the underlying vision of “Every person going home healthy and safe everyday”. The aim is to implement this policy at Chelopech and formally across all operations during 2009. During 2008, Seveso permitting and emergency response planning to support the development of the Chelopech MPF commenced. This process will involve ongoing engagement with stakeholders, particularly our local communities, during 2009. Rehabilitation at Chelopech was ongoing with the reshaping and planting of over 80,000 trees on the previously mined areas associated with the Zapad shaft and waste rock backfills.
DPM representatives continue to develop strong community relationships, fund community programs and engage the communities in our project development plans at all sites.
The Corporation has jointly funded the needs assessment phase of the Armenian Government’s Rural Poverty Alleviation Project. This project considers the social and infrastructure needs of rural villages in the region of its operation, the results of which will be used to plan suitable social and sustainability programs with the government, the communities and DPM’s future operations. DPM has also funded the installation of gas pipelines into areas where heating and cooking needs were not being adequately met and the addition of proper roofing to community buildings in neighbouring villages. In addition, the Corporation sponsors local sports teams, one of which has achieved international success, and is bringing a number of wider benefits to the Kapan area.
In the fourth quarter of 2008, the Shahumyan operation was placed on care and maintenance, and the strong community and government relationships established via these programs assisted in easing the transition and managing the impacts in moving from operating to temporary closure. While the mine is on care and maintenance some ongoing employment is offered, based on an agreement reached with the Armenian government. Furthermore the environment and community teams are still employed at the operation and continue to work on maintaining compliance with permits and laws, carrying out rehabilitation commitments, managing risks, continuing monitoring, and managing water issues. The mine is also being used to provide training in safe underground mining techniques to a number of staff.
Strong community engagement programs continued during 2008 within the local municipalities of Chelopech, Chavdar and Karlievo. Community employee-based programs aimed at recognizing the family through celebrating employee’s birthdays and the children’s day were successfully implemented. DPM has also funded various community projects during the year including work with the Orphanage at Zlatitsa, support of the hospital at Pirdop with the supply of heating diesel and the supply of a blood testing machine, kindergarten and school repairs and piping and sewage services. Also during 2008, DPM funded the Chelopech Language School, students of which are recognized with national awards on an annual basis.
In the municipalities of Chavdar and Karlievo, DPM funded street resurfacing and the refurbishment of a local Kindergarten and municipal buildings. All cultural events in Chelopech, Chavdar and Karlievo are also supported by the Corporation.
Risk Assessment
Operational, environmental and permitting risks at all development and operating locations are being assessed and programs are being implemented to manage and/or mitigate these risks, where necessary. At exploration and development projects, beyond the normal commercial risks associated with mineral exploration, engineering and permitting are the risks that have the greatest potential of affecting our future success. These risks are typically managed through the completion of advanced engineering studies and environmental and permitting programs on projects where there is a high probability of identifying a commercial discovery.
The process of risk assessment and management is well established at Chelopech. Although not yet formalized, it has become a routine part of operations and all identified risks have programs in place to address such risks. In 2006 and 2007, risk assessments of the Chelopech Mine were conducted by International Mining Industry Underwriters Limited, the results of which have led to the implementation of numerous risk reduction measures at site. These mitigating processes and procedures resulted in a reduction in Property insurance premiums for 2007/2008 of approximately 23%.
For example, at the Back River Project, due to the challenges associated with its geographical location, it is subject to formal aviation risk assessments, and other assessments and management programs aimed at ensuring that the risks of doing business in the Arctic are identified and addressed.
The process of risk assessment and management at DPM’s Deno Gold operations are in the early stages. Although the most significant risks have been identified, they have not all been quantified, and there may be other less significant risks to the operation which have yet to be identified. Areas where the assessments and development of management programs are still in progress are:
- Occupational health and safety, particularly in the underground mines;
- Public safety with respect to surface facilities, infrastructure and occupied land from old mined areas;
- Future permitting and social program requirements for conversion to combined open pit and underground operations;
- Supply and commercial risks related to the geographic location of the project;
- Commercial disruption and employee safety risks associated with social and political aspects of the project site; and
- Engineering risks.
It is expected that all of the risks will be identified and managed to an acceptable standard over the period of 2009 and 2010.
Goals and Targets
The business and commercial and socio-political environment in which DPM operates is continuously evolving as its project and production schedules also move forward. As a result, the Corporation sets long term health, safety and environment and sustainable development goals for the coming years and relevant targets for the next 12 months. These goals and targets are intended to assist the Corporation in meeting its obligations to the countries and communities in which it operates but also to ensure that DPM is well positioned to meet future challenges in a dynamic environment.
Operations Goals for 2009
- Alignment of community grants with key sustainability projects and an educational focus;
- Continued integration of this function into normal mining operations as a matter of course;
- Continual improvement in facility performance, design and operational safety;
- Improved reporting of community interaction and funding initiatives;
- Improved and standardized safety reporting;
- Obtain Seveso and IPPC permitting for Chelopech;
- Further development of a company-wide standardized management system;
- Further review of mine safety at Deno Gold and implementation of operational changes required to meet international good practice; and
- Bring sites further toward full compliance with international best practice or norms in waste management, mine waste characterization disposal and management, water management and air and noise emissions.