New Sustainable
Gold Mine in Argentina
CERRO
NEGRO
In 2013 the international Canadian mining company, Goldcorp Inc, began developing the underground portion of a new gold/silver mine in Argentina. During its 2014 development year, Cerro Negro produced 152,100 ounces of high quality gold, with the final quarter’s production of 133,100 ounces being the second highest of any other Goldcorp asset. This averaged out to a 91% average recovery rate - highly desirable for a gold mine. In January of 2015 the company declared the mine open for commercial production. During this year the company expects to produce 425,000-475,000 ounces of gold. Cerro Negro is only one of several new development projects in the Patagonia area of Argentina. The company’s Project Director, Alastair Still, believes that its mine will soon be making a valuable contribution to the local and national economy. In fact, the collective production of all these new developments is already putting Argentina on the map as a leading mining country in South America and also globally.
Goldcorp purchased Cerro Negro and its 215 square kilometre site in 2010. By the end of 2014 the mine’s mineral reserves had been estimated at 5.26 million ounces of potentially high quality gold. The mine’s physical location is ideal (Patagonia Plains in Santa Cruz, Argentina). It contains easily accessible veins near the earth’s surface that are easy to approach and that help keep the cost of production low. Based on the minerals found in each, the Cerro Negro mine is divided into six zones, some aboveground, some below. To extract from the open pit mines, the company uses conventional drill and blast techniques. To extract from the underground mines, the company uses the blast-hole method. With careful management and sustainable practices, Cerro Negro is expected to produce for at least 12 years, if not more.
During 2014 Goldcorp also rolled out a new, core program called Sustainability Excellence Management System (SEMS). All six pillars upon which the company functions in its organisational structure, responsibilities, practices, procedures, processes, and resources are being scrutinised to make sure they are sustainable, and resulting practices are being incorporated into the Cerro Negro mine.
Goldcorp President and CEO, Chuck Jeannes, believes that enhancing corporate performance with sustainable business practices is “doing well and doing good at the same time.” The company’s commitment includes working with business partners that share environmental stewardship and corporate social responsibility principles. Company employees are also expected to contribute.
Jerry Danni, Senior Vice President of Sustainability, says that the company has incorporated sustainability into its core business at all levels, “so people understand they have a role to play in implementing our sustainability program.” He notes that the different aspects of sustainability, like health and safety or the environment, have traditionally been viewed as separate responsibilities, hence as “someone else’s job” but the company is changing that. In less than one year, the company’s more rigourous monitoring and reporting system resulted in its being named to the NASDAQ Global Sustainability Index, in addition to receiving other awards.
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As with most mines, Cerro Negro does not operate in a vacuum. It is surrounded by local communities that provide workers and support their health, and grow as the mine grows. Goldcorp is very aware of the impact their mines have on these communities and is determined that it be a positive one. The impact includes supply and service companies that establish themselves locally or are able to grow stronger by supporting the mine. Some of the companies (both local and international) that have contributed already to Cerro Negro’s production are: Normet International, BSI Group México, S. de R.L. de C.V., Tecin, Cirigliano SA, Trax Sur Logistica, Tronador, Golder Associates, Modular Home SRL, SONDA, BSI Group Mexico, and TDS Ingenieria S.A.
The company’s website states that, “Directly and indirectly, our presence has measurably reduced local poverty and improved employment, livelihood, education and health.” This statement may apply to the company as a whole, but it’s clearly what the company also intends for Cerro Negro.
•Engaging with communities Realising that the impacts Cerro Negro has on its surroundings can bring both opportunities and issues of concern, the company communicates with local stakeholders to understand and address their issues. They aim to conduct business in a way that the mine’s impacts will help its communities become strong, vibrant, and sustainable. This approach was tested in September 2015, when miners walked out for five days due to company conflicts with land management. The company petitioned and was granted a 15 day work period wherein they could work together toward conciliation. The company believes that treating communities with a “shared value” approach reflects mutual respect, and this conflict is giving them a chance to prove that. • Keeping company employees safe This is the company’s top priority, which makes economic sense as well, since fewer days lost to injury also means lower costs for the company. In 2014 there were no fatalities in any of Goldcorp’s mines. To help achieve this goal the company established a Day of Remembrance that recognises the lives of those lost in the past. They used it to increase awareness of safety issues and practices.
• Protecting the environment Goldcorp is committed to eliminating or mitigating negative impacts on the environment wherever they mine. The SEMS program integrates international standards and benchmarks for the environment, for safety and health, for Corporate Social Responsibility, and for security. All of their operations, including Cerro Negro and the company’s second new mine, Eleanor, are expected to follow the guidelines. In 2014 the company audited five of its existing sites using SEMS standards, including two less productive mines sold by the company this year.
As part of its long term environmental strategy, Goldcorp is aiming for low energy use and protection of the local watershed for each mine it owns. It plans to increase energy efficiency by 15% company-wide, reduce greenhouse gas emissions by 20%, and be generating a minimum of 5% of its energy from renewable sources by the end of 2016. For now, mining operations at Cerro Negro are powered by a new overhead transmission line from nearby Las Heras to a substation at the processing plant.
The SEMS program has also become a springboard for Goldcorp’s new Water Stewardship Strategy that assigns conservation performance targets tailored to each site. At Cerro Negro water comes from three water bores located in the valley around the mine site. To protect the watershed during the mining process, Goldcorp installed a bitumen geo-membrane lining (developed by Siplast and installed by icopal) that covers 600,000 square metres of soil. These are only some of the ways in which Cerro Negro and its employees are impacting the communities and environment around them. There will be more. As Danni says “It’s our obligation as a company to be responsive to our shareholders, employees, partners, and the communities where we operate, so we can create a sustainable legacy for future generations.”
Corporate / General Offices: Park Place Suite 3400-666 Burrard Street Vancouver, B.C. Canada V6C 2X8 Telephone: (604) 696-3000 Facsimile: (604) 696-3001 http://www.goldcorp.com
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