2. About This Report
We at Primero are proud to present our first annual
Sustainability Report*, which highlights our achievements
and challenges in our first full year operating the San Dimas
mine. We acquired San Dimas in August of 2010 from
Goldcorp Inc., a company with established and respected
sustainability practices.
* The 2010 Sustainability Report reported on the five months in 2010 after Primero’s acquisition of the San Dimas property.
All currency is in United States dollars (USD) unless otherwise noted.
3. PRIMERO SUSTAINABILITY REPORT 2011 1
As we continue along our path to becoming a leading mid-tier gold producer, we are committed to supporting sustainable policies
and practices in mine exploration, development and operations. Corporate responsibility is embedded into our daily activities. Our
goal is to continuously improve workplace health and safety, and environmental performance, and to share the benefits of mining
with our local communities.
A key component of our commitment is transparent, accountable sustainability reporting. Our Board of Directors and senior
management team have committed to the sustainability reporting process, and are working to improve data collection and to
encourage employee engagement in all of our sustainability initiatives.
As a public company, Primero’s financial results are audited annually and reported on a regular basis. Our Annual Reports, Financial
Reports and Regulatory Filings are posted on our website. Therefore, economic performance is not emphasized in this report.
GRI Declaration
This report is based on the standards of the Global Reporting Initiative (GRI), and is the first step in our target for 2012, which is
to achieve a GRI level C standard of sustainability reporting. The GRI is an independent institution that has developed voluntary
guidelines for sustainability reporting. We believe that GRI guidelines help us to maintain a high standard of transparency, clarity
and comparability, and that applying GRI standards demonstrates our commitment to transparent reporting, especially in those
areas that are most important to our stakeholders.
4. 2 PRIMERO SUSTAINABILITY REPORT 2011
Our Sustainability Policy
At Primero, we believe that sustainability is fundamental to
our success. Our prosperity depends on our performance—
at the corporate level and in our relation to our host
communities—in the three pillars of sustainability:
economic achievement, community engagement and
environmental stewardship.
5. PRIMERO SUSTAINABILITY REPORT 2011 3
By maximizing earnings and reducing operating costs, we produce results for our
Economic achievement shareholders while also contributing to the economic and social development of our host
communities.
We actively engage in meaningful dialogue with local residents, community leaders
and organizations to identify opportunities and priorities for economic improvement,
Community engagement better training and social development. We support schools, health care and local
infrastructure, and we continually seek development opportunities that will contribute to
a self-sustaining economy in the communities surrounding our operations.
At all times, we seek to operate in a responsible manner and to minimize the impact our
Environmental stewardship operations may cause to the environment. We operate with an awareness of the mine’s
life cycle and practice the progressive rehabilitation of areas affected by our activities.
6. 4 PRIMERO SUSTAINABILITY REPORT 2011
Letter from the President and CEO
I know I speak for everyone at Primero in saying that growth and
profitability are not at odds with environmental and community
sustainability. In fact, we believe that we can only thrive when our
local communities share in the benefits of mining and welcome our
presence, and when we act with responsibility, transparency and
accountability.
Over this past year, we have maintained the high standards set by Goldcorp, and in some areas,
improved on previous practices. In our health and safety performance, for example, the number
of reportable incidents declined for the sixth consecutive year. As a result of our efforts, the
Mexican Centre for Philanthropy named us an ESR (in English, a Socially Responsible Enterprise).
To achieve this sought-after designation, we were evaluated against rigorous standards of
quality-of-life, business ethics, community engagement, and environmental stewardship.
Despite the overall improvement in health and safety, I am sorry to report a worker’s death in
2011, and I extend my personal sympathies to his family. We take this incident very seriously,
and initiated a thorough investigation. Our experts reviewed our safety training and ensured
that everyone, working directly or indirectly for Primero, had their safety training reviewed
and refreshed.
For 2012, we have set out a number of CSR objectives. While they are ambitious, I am certain
that our teams are capable of meeting every one. Regarding health and safety performance,
I want to see the number of workplace accidents reduced by 50%, and of course, zero
fatalities. That will only be the first step in making San Dimas a “triple-zero” operation by
7. PRIMERO SUSTAINABILITY REPORT 2011 5
Joseph F. Conway
President & Chief Executive Officer
2014: zero lost time incidents, zero work related medical leaves, and efforts in seeking local economic development opportunities
zero staff on modified duties. I also want to see San Dimas win the that show the strongest potential for generating income that is
Silver Helmet, an annual award given by the Mexican government to independent of mining.
mines with the best safety records in the industry. These objectives indicate our commitment to building a corporate
For environmental performance, I expect us to obtain “Clean culture of continual improvement in Corporate Social Responsibility.
Industry” certification from PROFEPA, the Mexican environmental And in the interests of transparency, I would like to add one more:
authority, and I have set this as an annual objective. As you will in 2012, our Sustainability Report will build on this year’s report, and
see noted elsewhere, 2012 began with a tailings pipe leak, which seek to achieve level C standards of the Global Reporting Initiative
triggered an overhaul of our tailings containment systems. We are (GRI) 3.1 Guidelines.
also investing nearly one-and-a-half million dollars in new pumps
for the tailings facility, and we are evaluating an expansion of our
hydroelectric power plant that supplies clean, renewable power for
our operations and to the Mexican power grid.
In the area of community relations, we will maintain the high
standards that won us the ESR designation, while increasing our
8. 6 PRIMERO SUSTAINABILITY REPORT 2011
Focused on Ethical, Transparent Governance
Corporate Social Responsibility Code of Business Conduct and Ethics
Corporate Social Responsibility is key to our company-wide strategy. Our operating practices are governed by the principles set out in
We have an active Corporate Social Responsibility (CSR) program our Health and Safety Policy and our corporate Code of Business
that guides us in policy and decisions regarding environmental Conduct and Ethics. The Code is applicable to all directors, officers and
protection, the health and safety of our people, and the socio- employees. It embodies the commitment of Primero and our subsidiaries
economic development of our host communities. We are committed to conduct business in accordance with all applicable laws, rules and
to embedding corporate social responsibility in all our daily actions. regulations and the highest ethical standards. The Code of Business
Our goal is to continuously improve workplace health and safety and Conduct and Ethics is available on the Primero website.
environmental performance, and to share the benefits of mining with
local communities. Health, Safety and Environment Committee
Sustainability practices are the responsibility of the Board of Directors
We strive to instill a safety-first culture among our employees,
and the Health, Safety and Environment Committee (HSEC). The
contractors and visitors. This includes improving working conditions
HSEC reports to the Board. Its purpose is to review and recommend
and conserving the health and physical safety of all our employees. It
corporate policies and monitor activities as they relate to health, safety
extends to preserving the environment and safeguarding the health of
and environmental matters, to review and recommend corporate
the inhabitants of the communities in which we operate, who in the
policies and programs in connection with social issues affecting
future could become our employees.
communities where the Company conducts operations. Internal weekly
In 2012, we plan to promote and expand our CSR programs, with a and quarterly reporting tracks performance indicators including human
focus on building employee and community awareness of health and resources, health and safety performance, environmental monitoring,
safety issues and protection of the environment. compliance with permits, materials inputs and outputs, and community
relations activities. The complete HSEC guidelines are available on the
Primero website.
9. PRIMERO SUSTAINABILITY REPORT 2011 7
Collective Bargaining and Freedom of Association Human Rights
All Primero workers enjoy the right to freedom of association as Primero respects internationally proclaimed human rights, and strives
provided by applicable labour law, and a large percentage of mine to ensure that we are not complicit in human rights abuses.
workers are trade union members. We do not believe that the right to
exercise freedom of association and collective bargaining is at risk at Whistleblower Policy
any Primero location. Our corporate Whistleblower Policy allows any employee to
communicate a concern or complaint confidentially and anonymously,
Workplace Diversity, Non-Discrimination with the expectation of a timely response and the assurance that
and Equity there will be no retribution or negative consequences. We provide a
At Primero, we do not discriminate on the basis of race, religion, confidential email address (reportline@primeromining.com) and a toll-
ethnicity, national origin, colour, gender, age, sexual orientation, free complaint reporting hotline (1-877-508-5716) which is available
citizenship, veteran status, marital status or disability. Harassment, 24 hours a day, 7 days a week.
including sexual, physical and verbal, is prohibited.
We do not allow any child labour, forced or compulsory labour.
10. 8 PRIMERO SUSTAINABILITY REPORT 2011
Focused on Production: the San Dimas Mine
The San Dimas mine is located in central west Mexico, in the
State of Durango, approximately 150 km west of Durango and
125 km northeast of Mazatlán. The mine is 100% owned by
Primero. The San Dimas gold-silver deposit is one of the most
significant precious metal deposits in Mexico in a very large
mining district.
11. PRIMERO SUSTAINABILITY REPORT 2011 9
As we continue along our path to becoming a leading mid-tier gold producer, we are committed to supporting sustainable policies
and practices in mine exploration, development and operations. Corporate responsibility is embedded into our daily activities. Our
goal is to continuously improve workplace health and safety, and environmental performance, and to share the benefits of mining
with our local communities.
A key component of our commitment is transparent, accountable sustainability reporting. Our Board of Directors and senior
management team have committed to the sustainability reporting process, and are working to improve data collection and to
encourage employee engagement in all of our sustainability initiatives.
As a public company, Primero’s financial results are audited annually and reported on a regular basis. Our Annual Reports, Financial
Reports and Regulatory Filings are posted on our website. Therefore, economic performance is not emphasized in this report.
San Dimas 2011 facts San Dimas Staff (as of end of year 2011)
102,200 oz 79,600 oz 4.6M oz 1,055 131 100%
Gold equivalent* Gold Silver Employees Contractors Employees &
Contractors who are
Mexican nationals
* Gold equivalent ounces include silver produced and converted to a gold equivalent, based on average commodity prices received in the period.
12. 10 PRIMERO SUSTAINABILITY REPORT 2011
Focused on our People
Our people, both employees and contractors, are our greatest
asset. Our success depends on the skilled, hard-working
people who work in the San Dimas operation, and in return
we seek to maintain a culture of safety in which everyone is
continually reminded of the importance of keeping themselves
and their colleagues healthy and injury-free. We treat people
fairly and without discrimination, with full regard for their
human rights.
13. PRIMERO SUSTAINABILITY REPORT 2011 11
Health and Safety Performance We run monthly campaigns focused on health or safety issues, such as
At San Dimas, we are committed to the safety, health and welfare defensive driving, safe handling of sodium cyanide and security in high
of our employees, contractors and visitors to the worksite, and our altitude work. In 2011, we participated in a Self-Management Program
commitment extends to the residents of nearby communities. We for Safety and Health at Work, in conjunction with the Mexican
strive to ensure an injury-free workplace though education and Ministry of Labour. Compliance with our workplace Health and Safety
training, and policies and procedures that consistently promote safety. regulations was measured at 93%.
Employees are recognized for their safety awareness each month as a
way to encourage safe practices. Workplace injuries
We regret to report that a tragic accident occurred in 2011, resulting
Our Health and Safety Administration system is guided by our
in the death of a mine worker. We extend our deepest sympathies to
Central Safety Committee, which is chaired by the mine’s General
the family and friends of our employee. As a result of the accident we
Manager and includes management, department heads and employee
conducted a thorough assessment of the incident and reviewed our
representatives. The committee meets on a monthly basis and
safety training policies. Throughout San Dimas, workers were given
discusses safety-related issues including accident investigations,
safety refreshers and safe work practices were given added emphasis.
observations, prevention, and more.
Despite this fatality, we achieved a reduction in overall accident
A number of committees, subcommittees and working groups
frequency, marking the sixth consecutive year in which injuries
are dedicated to preventing accidents, including the Preventive
have declined.
Observations Subcommittee, which detects and reports unsafe acts or
conditions, and “Prevention Circles” that discuss and seek to minimize In 2012, we hope to earn the Silver Helmet Award, an annual award
specific dangers. The Subcommittee on Accident and Incident given by the Mexican government in recognition of the best safety
Investigation analyzes risks and investigates incidents that occur. records in the mining industry.
14. 12 PRIMERO SUSTAINABILITY REPORT 2011
Employee and Community Health mining region, and everywhere we operate, we seek to be recognized
In addition to injury prevention, the San Dimas mine’s Integral Safety as an employer of choice by offering competitive wages, above-average
System is intended to improve the health and welfare of our workers, benefits, as well as by preferentially hiring locally and recognizing and
their families and the surrounding communities. The system seeks rewarding employee performance.
to identify and prevent sickness through ongoing monitoring and We are committed to fair and equitable labour practices in every
checkups, including: operation and office. A large proportion of our workforce is unionized—
• illness prevention programs in fact, in April of 2011, a strike by the union of millworkers stopped
• epidemiological disease-detection programs for all employees production for a month. Currently, relations with employees and the
exposed to noise, dust, hazardous chemical substances etc. unions are good.
• frequent medical checkups
Emergency Response Plans
• anti-doping and alcohol tests The San Dimas mine has a history of strong emergency-preparedness
San Dimas maintains on-site hospital facilities with x-ray, ultrasound, a practices. Our rescue teams are trained and equipped to handle nearly
surgery room and clinical lab, which are available for all employees and any type of emergency that could occur in an underground mine. They
contractors. receive specialized training in first aid, mine rescue and rope rescues
including rappelling and vertical rescue.
Our Workforce & Labour Practices
As an indication of their high standards, the San Dimas rescue team
Throughout Primero we foster a culture of inclusivity and acceptance
won first place in the National Competition of Rescue Squads organized
of gender, race, cultural background, age, religion and disability. At
by the Mining Chamber of Mexico, for the sixth consecutive year.
the San Dimas operation we are continuing the culture of respect that
was well established by the mine’s previous owner. In this traditional
15. PRIMERO SUSTAINABILITY REPORT 2011 13
Lost time incidents LTI Index
9 9 0.53 0.55
7 0.47
6 0.39
3 3 0.21 0.18
06 07 08 09 10 11 06 07 08 09 10 11
All Incidents All frequency index
7.08
65 61
53 4.97
31 29 30 3.23
2.14 1.96 1.84
06 07 08 09 10 11 06 07 08 09 10 11
Injury Frequency, 2011
Lost time Total reportable Significant potential
injuries injuries incidents Fatalities LTIFR AIFR
3 27 65 1 0.18 1.84
Staff Breakdown
Full-Time Employees Hourly (Union) Contractors Total
Mexico City Office 13 Nil Nil 13
San Dimas Mine 488 567 131 1,186
Vancouver Office 5 Nil 1 6
Toronto Office 7 Nil Nil 7
TOTAL 513 567 132 1,212
San Dimas regional hiring
78% 9% 4% 7% 2%
Durango State Sinaloa State Zacatecas State Guanajuato State Otros State
16. 14 PRIMERO SUSTAINABILITY REPORT 2011
Focused on our Communities
We at Primero are constantly aware that every action we take
has an effect on nearby communities. We are grateful that we
are welcomed among them and strive to continue to improve
conditions for local communities where possible.
The San Dimas mine has invested in significant infrastructure ESR recognition
upgrades, in the form of improvements to roads, electrical and In March of 2012, CEMEFI, the Mexican Centre for Philanthropy
communication systems and medical facilities—which, though (Centro Mexicano para la Filantropia) designated us an ESR, a “Socially
developed to serve our mining operations, are shared by the entire Responsible Enterprise”. While we received the award in 2012, it is
community. In addition to those benefits, we actively contribute to a in recognition of our corporate social performance in 2011. An ESR
broad range of social and community initiatives, often in collaboration designation means that a company is committed to sustainability in
with local and regional authorities. economic, social and environmental spheres, and is in compliance
We support education and training, though subsidizing teachers’ with rigorous standards of quality-of-life, business ethics, community
salaries, building classrooms and helping to pay the tuition for engagement, and environmental stewardship. Fewer than 690
hundreds of students from pre-school through secondary school. We companies across Mexico have earned the ESR designation.
subsidize technical training for future miners. We have contributed to
Community Development
the construction of sports facilities for the community’s benefit. We
As a critical step in establishing our presence as the new owner of the
support local health care facilities and subsidize childcare, to help our
San Dimas mine, we carried out a community-wide economic, social
working-parent employees and the communities at large. And we
and cultural development survey in the local area. Nearly 1,000 surveys
promote the growth of a self-sustaining local economy by helping to
were distributed (covering 95% of households in the community)
develop new, non-mining businesses.
requesting general information on their family and living conditions,
In 2011, we began planning a bimonthly magazine that will serve as relationships and health. The results will assist us in developing future
a communication channel to the workers of San Dimas and their community support programs.
community, and promote the community’s personal and socio-cultural
growth. The first issue was published in early 2012.
17. PRIMERO SUSTAINABILITY REPORT 2011 15
Local education and training Training women
In 2011, we provided a 75% tuition subsidy to all 220 students (pre- The “Miner Women” project aims to increase the number of women
school through secondary school) attending the local school, whether employed in all areas of the San Dimas operation, and to elevate their
they are our employees’ children or not. status and improve their quality of life. Women have been recruited
The CONALEP trade school in Tayoltita was originally established by and trained as specialized machinery operators, especially large,
the San Dimas mine to improve the career prospects for local youth, heavy-duty equipment and electro-hydraulic jumbos. Graduates of the
and provide a source of trained young professionals for the mine. program become significant financial contributors, and in some cases,
Out of all the Metallurgical Mining and Electromechanical graduates are their family’s sole income earner.
of 2011, nine are current company employees and 25 are from the In collaboration with SEMARNAT (the Mexican environmental
community. authority) we delivered a workshop on “Product manufacturing
In collaboration with Youth Integration Centers, we held school-based using solid wastes” to 40 women from the Las Truchas community.
talks and workshops on addiction which were attended by 1,500 The women then benefited from a three-week temporary
students. We supported “Health Week” in Tayoltita, in which the employment program.
municipality along with educational and health institutions, promoted
Environmental awareness
tobacco, alcohol and drug prevention.
In 2011, we delivered a number of campaigns to increase environmental
Child care awareness, including:
In partnership with the Ministry of Social Development for Tayoltita, we • organizing schools, the municipality and its workforce to clear
renovated the town’s Child Care building, providing a safe educational up the debris along the Piaxtla River (16 tons of garbage were
environment for up to 35 under-4-year-old children of working parents. removed), complemented by talks to encourage respect for the
environment
Culture and recreation • a community campaign to collect and dispose of outdated
In collaboration with the community’s Youth Integration Centers,
household appliances: three tons were sent to Durango for
we ran a series of sports, cultural and recreational activities for 50
proper disposal
community children from 4 to 12 years of age.
• support for the global “Earth Hour” campaign that encourages
Adult education everyone on the planet to turn off their lights from 8:30 pm to
In response to employee requests for greater career opportunities and 9:30 pm on the 30th of March, to build awareness of energy
skills development, we teamed up with the Mexican government and saving and the environmental impact of CO2 in the atmosphere
launched an Adult Education Program for employees, families and • providing talks to students on water care, energy and the
residents. Since 2006, 268 students have graduated from the program. environment, as part of the “School always open” program (in
collaboration with the Ministry of Education and the Youth
Integration Centre)
• giving environmental awareness talks to 778 employees and
more than 1,200 children from local primary schools
18. 16 PRIMERO SUSTAINABILITY REPORT 2011
Focused on the Environment
At Primero, our environmental focus is to act with
responsibility and transparency in developing mining
projects, and to proactively seek to minimize the footprint of
our operations. Precautionary measures are taken to avoid
damage to ecosystems wherever possible. When adverse
impacts occur, integrated programs are implemented to
promote the recovery of the affected ecosystems.
19. PRIMERO SUSTAINABILITY REPORT 2011 17
For years, San Dimas has been “Clean Industry” certified by the As Mexican laws and regulations evolve and become more closely
Mexican environmental authority, the Procuraduria Federal de aligned with world standards, we at Primero are committed to
Protección al Ambiente (PROFEPA). We are pleased to report that remaining in compliance.
again in 2011, we received “Clean Industry” certification. In 2011, a series of improvements were completed (which began in
2008, on the recommendation of international consultants) related
Management Approach to Environmental
to tailings management and the stability of the tailings dams. The
Responsibility
upgraded tailings containment sites are now fully operational and
At San Dimas, our mining, exploration and development activities are
comply with international regulations.
subject to the applicable Mexican laws and regulations relating to the
protection of the environment, including planning for the eventual
closure of the mine, and reclaiming the mining properties after mining
and processing has ceased. Water USe
The Environmental Management System (EMS) in place at San Dimas Water Used (raw process water)
is widely respected for its effectiveness in identifying and avoiding,
2011
reducing or eliminating the environmental impacts of mining and
processing. Our aim at San Dimas is to meet the environmental
standards of the leading gold and copper producing countries.
Total used by plant 574,891 m3
For many years the San Dimas operation has engaged in a voluntary Amount recycled 501,300 m3 (87%)
self-evaluation program, to improve performance by identifying
deficiencies, measuring performance and implementing improvement
programs to remain in compliance with all of the relevant regulations.
20. 18 PRIMERO SUSTAINABILITY REPORT 2011
Waste Management (process and non-process) Mine Closure and Reclamation
Tailings management at San Dimas is challenged by the As a responsible mine operator we always take into consideration
district’s rugged terrain and steep canyons. Following a number the fact that every mine has a finite life. As mining progresses at San
of improvements relating to the stability of the dams and the Dimas we continue to update our plans for the mine’s closure plan.
management of our tailings, our tailings sites now comply with In our financial statements we have accounted for the reclamation
international guidelines. and closure costs for the mine, which ensure that the lands and
At the Tayoltita tailings operation, significant capital improvements water will be returned to a safe and environmentally sound state on
have been made in recent years. Pumps and pumping systems have termination of mining.
been upgraded. Spill containment systems have been improved and While operations continue, we practice progressive reclamation
a spill recovery trough installed. The tailings dam area was fenced to of any lands that are no longer used for mining activities. We
prevent access by people and animals, and further improvements to have reclaimed three of the older tailings dams near the Tayoltita
the dam and operating practices are planned. mill, whose land has been reclaimed for use as a soccer field, a
In the Piaxtla river, downstream of the Tayoltita tailings deposits, water softball field, and a garden nursery.
quality monitoring has not shown any environmental impact, although In 2011 reclamation proceeded on the tailings facilities of the San
in periods of heavy rain, the suspended solids in the water increase. Antonio Mill, which was closed in 2003. This reclamation project
In 2011, we completed the installation of a third tailings filter, bringing will be complete in 2012.
the combined capacity of the three-filter system to 410,400 tonnes
Environmental Regulatory Compliance
per year. With the new filter, San Dimas has achieved 85% efficiency in
The San Dimas Mine is presently involved in an environmental
the tailings filtering process. In the first five months that the new filter
certification process (as a Primero-owned company). Progress in
was operating, we were able to recover an average of 43,000 tonnes of
2011 included:
solution per month, which was recycled into the leaching process.
• SEMARNAT (the Mexican environmental authority) assigned
Energy Consumption and Greenhouse Gas Emissions San Dimas an Environmental Registry Number
Energy use and GHG emissions are significantly minimized by our use • San Dimas surrendered the operating permit related to the
of hydroelectric power, most of which is generated by the Las Truchas previous owner
Hydroelectric plant, which is owned and operated by Primero.
• San Dimas was granted an Environmental License (LAU) to
The Las Truchas dam and power plant harnesses the power potential operate mine and processing facilities
of the Las Truchas basin to provide the mine with economical, reliable • seeking approval for an Environmental Impact Assessment, San
and clean power. The 34 kVA power line runs 42 km from the dam to Dimas submitted a project proposal for the Rio Piaxtla diversion
the San Dimas mine. Beginning in 2005, the plant went though Phase I and a related waste rock deposit
of a major expansion and efficiency upgrade, and in 2010 the plant was
connected to the Mexican Federal Power Commission’s supply system. Air quality measurement
In 2011, we engaged a third-party contactor (On-Site Analítica de
We are currently reviewing a Phase II expansion of the Las Truchas
México, S. A de C.V.) to carry out an atmospheric study of the San
facility that would, if approved, increase capacity from its current
Dimas operation. The study confirmed that:
50 GWh up to approximately 150 GWh. This would support mine
expansion and allow excess power to be sold into the Mexican national • particulates from mining processes were in compliance with
energy grid. regulations (NOM-043-SEMARNAT-1993)
• emissions from the plant’s burners were in compliance with
Biodiversity and at-risk species regulations (NOM-085 - SEMARNAT-1994, for burners with
In 2011, a thorough study was made of aquatic life in the Piaxtla river heating capacity of less than 5250 Mj/h)
upstream and downstream from the San Dimas mine, to measure
the abundance and diversity of life, including endangered species.
21. PRIMERO SUSTAINABILITY REPORT 2011 19
Waste Water Quality
Process Waste Station VA- 04
(000s tonnes) 2011 Lower (EPT):
(Upstream)
1,038
Station VA- 05
Waste Rock 76% within mine, Better (EPT):
(8km downstream from Tayoltita)
24% outside mine
Tailings 663
Hazardous Waste Aquatic Habitat Quality
(tonnes) 2011 Station VA- 04
Marginal
Used oil (Upstream)
48
Final Disposition: Sara Abigail
Station VA- 03
Oil-impregnated solids Marginal
31 Downstream from the San Luis
Final Disposition: Industrial waste disposal mine entrance
Used grease 6 Station VA- 05
Marginal
Hazardous wastes (in containers) 2 (8km downstream from Tayoltita)
Contaminated soil 21 Station VA- 06
Sub-optimal
Below the Cupias bridge
Sludge from pits with hydrocarbons 5
Fluorescent lamps 0.2 (ton/year)
Diesel 0.9 Greenhouse Gas Emissions*, 2011
Filtered tailings Diesel Gasoline Power
700,740
Final Disposition: Tailings dam (as tonnes of CO2) (as tonnes of CO2) (as tonnes of CO2)
Solution coming from tailings filtration 6,524 272 8,396
456,300
Final Disposition: Returned to the process
Fish Species Diversity Endangered species found**
Station VA- 04
Lower abundance Catostomus plebeius (all seasons)
(Upstream)
Station VA- 03 Ictalurus pricei
Downstream from the San Luis Major diversity
mine entrance Poeciliopsis latidens (all seasons)
Station VA- 05 Ictalurus pricei
(8km downstream from Tayoltita) Poeciliopsis latidens (all seasons)
Station VA- 06 Ictalurus pricei
Greater abundance
Below the Cupias bridge Poeciliopsis latidens (all seasons)
Energy Consumption, 2011
Diesel Consumption Gasoline Consumption Power Purchased Power Purchased Power Purchased
(000s litres) (000s litres) (diesel generators) (Las Truchas) (Mexican Federal Power Commission)
2,485 114 1,397 MWhrs 39,546 MWhrs 18,455 MWhrs
* calculated using National Greenhouse Accounts Factors (2011)
** defined as endangered Mexico-native species of flora and fauna-risk in “NOM-059-SEMARNAT-2010”
22. 20 PRIMERO SUSTAINABILITY REPORT 2011
In Closing
As a relatively new company operating a long established
mine, Primero finds itself in a fortunate position. We inherited a
strong safety record, solid environmental policies and practices,
a motivated workforce and well-established relationships to
the local community where mining has been a way of life for
hundreds of years.
23. PRIMERO SUSTAINABILITY REPORT 2011 21
For the near future, our primary concerns and objectives focus on improving our environmental practices. While we have always been
in compliance with the regulations that are in force, we are advancing our standards. I feel it is important to report a recent tailings
spill that occurred in early 2012, after the period covered by this report. Although the spill was minor, the result of a leak in the pipeline
feeding the dry tailings facility, it triggered a thorough review of our containment systems. We have taken a series of corrective actions
and ran a preliminary assessment to confirm that there has been no residual impact on the aquatic life of the Piaxtla River. In 2012 we
will improve the containment structures for the tailings pipe and conduct an external assessment of the river.
We will continue to maintain a culture of safety at Primero and I am confident that we can achieve our aggressive goal of a further
50% reduction in workplace accidents in 2012.
I would like to take this opportunity to thank everyone at Primero who has contributed to our collective efforts in health, safety,
environmental stewardship and socio-economic sustainability. Through 2012 and beyond, I look forward to continued development
and improvements to our corporate culture of safety, respect and responsibility to each other, our communities and the environment.
Joseph F. Conway
President & Chief Executive Officer
24. This report is written for Primero employees and their
families, our host communities, legislators and
government officials, analysts, civic, special-interest
and non-governmental advocacy organisations (NGOs)
and other stakeholders. We invite sustainability-related
comments and suggestions, and maintain a dedicated
email address: sustainability@primeromining.com.
Primero Mining
Richmond Adelaide Centre
120 Adelaide Street West, Suite 1202
Toronto, ON M5H 1T1
T: 416 814 3160 F: 416 814 3170
TF: 1 877 619 3160
E: info@primeromining.com
www.primeromining.com