This report covers the reporting period 01 January to 31 December 2005. Unless stated otherwise, all dollar amounts shown are United States dollars. For the purposes of converting local currencies to US$ the following exchange rates were used: Australian $1.3, Canadian $1.1, Argentine $3.1, Brazilian Real 2.3, Mexican Peso 11.4.
*These assets were acquired from Barrick Gold Corporation in May 2006 as part of the Placer Dome transaction. The Red Lake gold mines now include both the Red Lake and Campbell Complex.
Introduction
02
Message from the CEO
05
Sustainable Development and Goldcorp
06
Corporate Governance
08
Health and Safety
10
Environmental Performance
14
Economic Performance
16
Social Performance
18
Mine Operations
20
*Musselwhite
22
Red Lake (including *Campbell)
24
*Porcupine
26
Wharf
28
San Dimas
30
Amapari
32
Alumbrera
34
*La Coipa
36
Peak
38
Development Projects
40
Los Filos
42
El Limon
44
Éléonore
45
Targets / Objectives for 2006
47
Key Performance Indicators
48
About Goldcorp
Goldcorp is a low cost and rapidly growing multimillion ounce gold producer with operations throughout the Americas and Australia. In May 2006, Goldcorp became North America’s third largest gold producer after acquiring a number of Placer Dome assets from Barrick Gold. In 2006, Goldcorp expects to produce 1.8 million ounces on an annualized basis at a total cash cost of less than US$100 per ounce.
Goldcorp’s mining and processing operations are geographically diverse and operate in harmony with their neighbours and with due care for the environment. The company employs approximately 3,700 employees and 3,900 contractors in Canada, the United States, Mexico, Argentina, Chile, Brazil and Australia. The corporate office is located in Vancouver, Canada with regional bases in Toronto, Sydney, Mexico City and Rio de Janeiro.
Purpose of Report
Goldcorp’s operations are geographically and culturally diverse. The principal means of sustainability reporting with local stakeholders is through mine site sustainability reports. These reports comprehensively outline the company’s operations and their environmental, social and economic performance. The reports and performance indicators have been compiled using ”bottom up” indicators. They add most value at the local level and are aimed at employees, local communities, suppliers, local government and other local stakeholders who are most affected by the operation. Some of the operations have been producing site reports for up to five years (Peak in Australia) while the South American operations have produced their second report this year.
In this first attempt at corporate reporting, we have continued the flexible and practical approach of the mine site reports. We are trying to provide relevant and useful information as simply as possible. We have grown rapidly over the past three years and are in the early stages of establishing the reporting process. We are making good progress but much needs to be done as we strive to improve over time.
This new corporate report will extend the scope of company reporting to provide an overview for more corporate/financial audiences who do not require the level of detail contained in the mine site reports. It will complement the mine site reports by adopting a more ‘top down’ approach to global issues and will be distributed to a broader range of audiences.
In May 2006, Goldcorp acquired a number of assets from Placer Dome Inc including the Campbell, Musselwhite and Porcupine mines in Canada and the La Coipa mine in Chile. They have been included in this report for the sake of completeness and because they are operated with the same sustainability emphasis as other Goldcorp properties. However, they were acquired after the reporting period ended and the sustainability data shown in the individual Placer Dome project descriptions has not been aggregated into Goldcorp’s 2005 annual performance indicators. This will be done in future years.
Core Values
The Corporation’s core values were developed using a bottom-up approach and are the values to which we aspire while carrying out all our activities. These values are:
• We are committed to the protection of life, health and the environment for present and future generations.
• We are committed to high standards and sustainable practices through our project developments, mining operations and reclamation processes.
• All accidents are preventable and all employees are responsible for safety.
• Our contribution to the community begins prior to project development and extends beyond mine closure.
• We respect cultures, customs and values in dealings with employees and others who are affected by our activities.
• We work cooperatively with government agencies, local communities, educational institutions and suppliers to achieve safe handling, use and disposal of all our materials, resources and products.
• We will use the best technologies to continuously improve the safe, efficient use of resources, processes and materials.
introduction
Goldcorp at a Glance
• Fastest growing major gold producer• Third largest North American gold producer
• Gold production of 1.8 million ounces annualized in 2006
• Strong cash flows from unhedged gold production
• Geographically and culturally diverse company, operating mainly in the Americas
• Nine major mining operations and four development projects in eight countries
• Following a rapid period of growth, we are working to integrate and optimize our assets.
Achievements in 2005
• Established Goldcorp Board Committee for Sustainability, Environment, Health & Safety. The Committee meets four times a year and conducts two site inspections per year.
• Conducted comprehensive environmental audits at all sites.
• Updated company website to include social
responsibility, community engagement and corporate governance.
• Developed a new Corporate Occupational Health and Safety Policy with input from all operations.
• Drafted detailed Occupational Health and Safety Guidelines.
• Reduced frequency rates for lost time injuries and all injuries.
• Developed principles to assist in appraising sponsorship opportunities and charitable donations.
• Continued Sarbannes Oxley reviews to ensure accountability and transparency both internally and externally.
• Conducted Annual Goldcorp Sustainability Conference to promote commitment, consistency and best practice in sustainability issues throughout the organization.
mapof operations
03
redlake, canada
musselwhite, canada éléonore, canada porcupine, canada
peak, australia wharf, usa
sandimas, mexico ellimon, mexico
losfilos, mexico pueblodominicanviejorepublic,
amapari, brazil
alumbrera, argentina lacoipa, chile
Mine operations Development projects
“We believe that operating sustainably will give us a
competitive advantage and makes sound business sense.
‘Cleaner’ operations are more efficient, lower cost and less
damaging to the environment. vibrant and healthy local
community provides a ready and stable workforce and the
procurement of goods and services locally promotes
Welcome to Goldcorp’s first corporate sustainability report. We have been producing individual site based sustainability reports for some years now. This is our first attempt at a more concise aggregated report for a wider audience.This report demonstrates the Company’s commitment in working towards ethical and transparent practices with due regard for the environment and local communities where it operates.
Goldcorp continues to evolve and grow - we have achieved a great deal in the last three years and we did not change pace in 2005. We acquired several Placer Dome properties that strategically complement our existing assets, becoming the world’s lowest cost and fastest growing multi-million ounce gold producer and the third largest gold producer in North America. Our challenge now is to harness the substantial benefits of this growth for the benefit of our stakeholders. Our aim is to maximize value for both our shareholders and our
stakeholders in all the Company’s jurisdictions. It is only through the integration of economic progress, responsible social development and effective environmental management that we will be able to maximize these benefits.
We must get the sustainable integration process right, as we operate in a diverse range of cultures, climates and ecosystems. We have made good progress in introducing consistent performance standards in key areas such as health and safety, environmental care, auditing and community engagement. Some of our corporate achievements in these areas are outlined in this report.
Specific issues and initiatives for individual sites are outlined in the site sustainability reports. These reports are contained on our website along with further details of Goldcorp’s group wide policies and progress in addressing sustainability and global issues.
We believe that operating sustainably will give us a competitive advantage and makes sound business sense. ‘Cleaner’
operations are more efficient, lower cost and less damaging to the environment. A vibrant and healthy local community provides a ready and stable workforce and the procurement of goods and services locally promotes a healthy regional economy.
message from the CEO
05
To enhance and sustain local benefits our operations must be efficient and competitive. Our longer term strategy is to maintain gold production between 2-3 million ounces of gold a year and to do this we will need to replace reserves depleted by mining. We will continue to focus on North and South America and target both near mine exploration and acquisitions. Our success to date indicates this is not only possible but value accretive to shareholders. We are reaping the benefits through strong cash flows, fast-growing unhedged production and low debt. We have achieved this within a strong ethical framework and with the help of our many stakeholders.
I hope you enjoy reading about our achievements and progress to date. We welcome your feedback and encourage you to send us your suggestions to improve our performance.
Ian Telfer
What it means to Goldcorp
Sustainable development at Goldcorp means achieving a balance of economic prosperity, environmental responsibility and community support, not merely mitigating the impact of mining. Our vision is to continue to develop safe, profitable and sustainable mining operations for the benefit of all our stakeholders.
This vision of sustainable development has been developed to foster the acceptance of sustainability by all our employees. The diversity of our operations, not only geographically and culturally but also historically, provides us with the challenge of implementing consistent policies and management systems across the organization.
Some of our operations have a long history of private ownership in regulatory regimes vastly different from today. We must ensure that these operations are managed with the same care as our newest, technologically sophisticated projects no matter where they are located.
We must share the benefits of our operations with all of our stakeholders so that various contributions are aligned in a common purpose.
sustainable development and Goldcorp
07
The Bigger Picture
The mining industry has made enormous strides towards sustainable development over the past ten years. The major miners have led the way and produced a wide array of environmental, community and sustainable development reports. In hand with this, various codes, guidelines and frameworks have been developed in several countries to help guide the industry through this process.
Chief among these is the Global Reporting Initiative (GRI) and the International Council on Mining and Metals (ICMM) Sustainable Development framework. These are commendable and far sighted initiatives that are working to establish a consistent framework for comparison between mining companies over a range of performance measures.
At Goldcorp we are in the early stages of reporting according to these guidelines. However, we are working towards this and will develop policies and positions in relation to energy efficiencies and climate change, biodiversity, efficient use of resources and land use. Over time we plan to incorporate more universal measures into our reporting.
Our current focus is on integrating standards across the group according to what is most meaningful to our employees and immediately relevant to our business. Our priorities include management systems for the environment, safety and health of employees, and cultures, customs and values in the local workforce. Although the operations are independent and set their own targets, they are required to comply with the Equator Principles as a minimum standard. As these targets are achieved, we will progressively turn our attention to the larger global issues facing the industry.
Potential Benefits of Implementing
Sustainable Development
The benefits of sustainable development reflect a longer term approach to doing business and lead to increased value and a smaller environmental footprint. Some of these benefits include:
• Increased shareholder value – improvements to shareholder returns through reduced risk, lower cost of capital and improved operational efficiencies.
• Enhanced Goldcorp branding which helps position the Company as a preferred partner and developer of major mining projects.
• Increased stakeholder support through improved relationships with government, interest groups and community.
• Fundamental to attracting and retaining high quality employees.
• Improves the business by reducing material, energy and operating costs.
• Provides transparency and consistency.
• Helps secure licences to operate – need public, community and government approval.
• Leads to faster processing of development applications.
The Way Forward
Important elements of our sustainability focus are already in place. These include policies and initiatives in areas such as environment, safety, employment, core values, business conduct and ethics.
We are now turning our attention to optimizing the operations through productivity and efficiency improvements. We are introducing new technology at the older operations, and optimizing efficiencies at the newer sites. This means ensuring efficiency at all stages between mining and refining in order to reduce raw material costs, maximize ore recoveries and minimize losses to tailing facilities.
We must reduce our energy costs. We are fuel intensive in our mining and transport operations to the processing plant. Processing operations are also very energy intensive, therefore improvement programs aimed at reducing fuel and energy costs have immediate economic and environmental benefits.
Mining is capital intensive and subject to the volatility of commodity prices. The industry is currently experiencing boom times but our aim is to ensure that we have sufficient quality reserves to ride the price cycle and provide sustainable returns to our stakeholders at all times.
We intend to maintain production between 2-3 million ounces a year. To do this we need to add at least this amount to our reserves each year. We will do this through regional exploration around our existing operations. We will also pursue acquisitions which have the potential to sustain gold production of 250,000 ounces per year over a minimum mine life of 10 years.
Board Guidelines
Goldcorp’s Board of Directors (the “Board”) believes the principal objective of the Company is to generate acceptable returns to its security holders. The Company believes good corporate governance practices provide an important framework for a timely response by the Company’s Board to situations that may directly affect share value.
Board Sustainability, Environment, Health &
Safety Committee
purpose
The main purpose of the Sustainability, Environment, Health and Safety Committee is to review and monitor the sustainability, environmental, health and safety policies and activities of Goldcorp on behalf of the Board of Directors. The Committee may investigate any activity of the company that relates to environment, health, safety and sustainability. The Committee will have access to such officers and employees of the Company and to independent consultants and advisors, and to such information respecting the Company, as it considers necessary in order to perform its duties and responsibilities.
composition and operation
The Committee shall consist of not fewer than two and not more than five directors, the majority of whom shall be independent directors and will meet at least two times per year.
duties and responsibilities
The Committee meets to review the company’s performance and specifically to:
• Review and monitor the sustainability, environmental, safety and health policies and activities of the Company on behalf of the Board to ensure that the Company is in compliance with appropriate laws and legislation.
• Review monthly sustainability, environmental, health and safety reports by management on sustainable
development, environmental, safety and health issues.
• Ensure that principal areas of community, environmental, health and safety risk and impacts are identified and that sufficient resources are allocated to address these.
The merger of Wheaton River Minerals and Goldcorp in 2005 created a major new force in the
world gold mining community. The ongoing challenge for Goldcorp is to use the best principles
of corporate governance and sustainability in developing and managing its new and existing
projects in countries as diverse as Canada, the United States, Mexico, Brazil, Argentina,
Dominican Republic, Chile and Australia.
Goldcorp is committed to introducing consistent policies and practices across this diverse group
of properties, while at the same time recognizing the vastly different environmental, physical
and cultural differences that shape each operation.
corporate governance
0
• Periodically review community, environmental, health and safety response compliance issues and incidents to determine, on behalf of the Board, that the Company is taking all necessary action in respect of those matters and that the Company has been duly diligent in carrying out its responsibilities and activities in that regard.
• Investigate, or cause to be investigated, any extraordinary negative sustainability, environment, health and safety performance where appropriate.
Code of Business Conduct and Ethics
Goldcorp has established a Code of Business Conduct and Ethics which outlines the principles of conduct and ethics to be followed by Goldcorp’s employees, officers and directors. Its purpose is to:
• Promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships
• Promote avoidance of conflicts of interest, including disclosure to an appropriate person of any material transaction or relationship that reasonably could be expected to give rise to such a conflict
• Promote full, fair, accurate, timely and understandable disclosure in reports and documents that Goldcorp files with, or submits to, the securities regulators and in other public communications made by Goldcorp
• Promote compliance with applicable governmental laws, rules and regulations
• Promote and provide mechanisms for the prompt internal reporting to an appropriate person of violations of this Code
• Provide guidance to employees, officers and directors to help them recognize and deal with ethical issues
• Help foster Goldcorp’s culture of honesty and accountability.
Whistleblower Policy
Goldcorp has established a Whistleblower Policy which outlines procedures for the receipt, retention and treatment of complaints received by Goldcorp regarding financial statement disclosure issues, accounting, internal accounting controls, auditing matters or violations of the Company’s Code of Business Conduct and Ethics. The policy also outlines procedures to protect the confidentiality and anonymity of complaints.
Sustainability Management Systems
Goldcorp is committed to best practices in environmental management in all aspects of its operations and has implemented standards and policies that provide the highest degree of protection for employees and the environment. Each site has established an Environmental Management System (EMS), some of which are based on the ISO 14001 standard. The EMS describes the organisational structure, responsibilities, practices, processes and resources for implementing and maintaining environmental management.
Risk Management
All Goldcorp sites undertake rigorous programs of
improvement to identify, report and eliminate workplace risks in order to improve safety and prevent accidents. Goldcorp believes that all accidents are preventable and that no injury is acceptable. Consequently, risk management practices have been introduced for specific work areas and tasks at all the sites.
Auditing and Review
Goldcorp carries out environmental auditing and review programs to assess compliance with licence conditions, relevant legislation, EMS objectives and best practice environmental management. The programs are based on regular internal and external environmental audits. These audits are regarded as key feedback and quality control mechanisms that facilitate continual improvement of environmental management programs and systems at all of the sites.
In 2005 Goldcorp developed and implemented a new corporate Occupational Health and Safety
Policy which is shown opposite. The policy was developed from the ground up with input from all the
mine sites and was approved by Goldcorp’s Sustainability, Environment, Health and Safety Board
Committee. During the year, the Company also drafted Occupational Health and Safety Guidelines
and reduced frequency rates for All Injuries and Lost Time Injuries.
Occupational Health and Safety Policy
Goldcorp’s objective is to achieve a safe and healthy workplace free of injury and illness.
We are committed to the health, safety and well being of our workforce and will strive to achieve an incident-free workplace in a holistic and inclusive manner.
We recognize that individuals, through their own behaviours and actions, are ultimately responsible for safety. We encourage and support all employees to achieve our goals by incorporating into their planning and work the actions necessary to ensure the safety of themselves and others in the workplace.
To achieve our health and safety objectives we will:
• Promote safe and healthy behaviour as a core value in the organization’s culture.
• Promote and enhance employee commitment and accountability to this policy.
• Develop and implement effective management systems to identify, minimize and manage health and safety risks in the workplace.
• Provide the resources to achieve a safe and healthy work environment for all of our people.
• Provide training and information to enable all our people to work safely and competently.
• Comply with applicable regulations, laws and international guidelines.
• Strive for continuous improvement by setting targets and measuring results against those targets.
• Recognize and reward good safety performance and achievements throughout the organization.
• Promote health and safety in all aspects of our work, family and local community.
Ian Telfer
President & CEO
Safety Performance
Safety performance continued to improve in 2005 as the company implemented a range of health and safety initiatives across the sites. The Lost Time Injury Frequency Rate (LTIFR) represents the number of lost time injuries sustained per 200,000 man hours worked. Lost time injury is an injury where the injured person can not return to their next scheduled shift. The LTIFR was reduced from 1 in 2004 to 0.83 in 2005. Goldcorp’s operations undertake rigorous programs of improvement to identify and eliminate workplace risks, prevent accidents and improve safety. The sites have all developed Safety Management Systems and tailored programs to meet their own cultural needs. The programs are based on latest practice and research, and some of the sites have developed Systems based on the ISO 14001 standard. The site safety programs are reviewed and revised where necessary through the Board Sustainability, Environment, Health & Safety Committee. In addition, the company provides a wide range of safety and training opportunities for employees. These consist of internal programs and more specialized or certified courses where external trainers are brought to site to conduct the training.
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
2004 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec
2005 INJURY FREQUENCY RATES
IN
JU
R
IE
S
P
E
R
2
0
0
,0
0
0
H
O
U
R
S
MONTH
LTIFR AIFR**AIFR - ALL INJURY FREQUENCY RATE
Occupational Health
The company carries out a range of medical examinations to identify health risks in the workplace. The occupational health of workers is regularly monitored through epidemiological monitoring, biological environment monitoring and various medical examinations, as well as blood and random alcohol and drug testing.
Emergency Response Preparation
All sites maintain fully equipped and trained mine rescue teams to respond to emergencies quickly and effectively. The mine rescue teams are encouraged to participate in local competitions and coordinate their training and services with community emergency service personnel wherever possible. In many instances, the mine rescue teams are the first line of call for local communities in the event of any emergency.
losttimeinjuryfrequencyrate allinjuryfrequencyrate
health and safety
13
13
Goldcorp is committed to the highest standards of environmental management and performance. We believe that effective environmental performance encourages greater efficiency at our operations and minimizes risks to our business, contributing directly to our long-term success. We are committed to reducing our impacts on the environment and to the efficient use of resources.
Goldcorp’s approach to improving environmental performance is guided by its Environmental Policy, which promotes the development and implementation of effective systems to minimize risks to health, safety and the environment and to design, operate and close our facilities in compliance with international guidelines and local regulations.
Each of the operations has an established Environmental Management System and Environmental Management Plan, some of which are based on the International Standards Organization (ISO) framework. Some of the sites have also developed specific plans for risk management, biodiversity and land management, with clear performance expectations for minimizing damage to the environment.
Goldcorp has established a Sustainability, Environment, Health and Safety Board Committee to review and monitor the sustainability, environmental, health and safety policies and activities of the Company on behalf of the Board of Directors.
Group Audits
Goldcorp has established audit processes for environmental performance. In 2005 the group conducted comprehensive environmental audits at all sites. Recommendations from the audit process are being progressively implemented.
Global Issues
Goldcorp is considering a broad range of philosophical and moral issues such as social justice, human rights and distribution of wealth. While having no specific corporate policies on these issues they are addressed in part through the Company’s Code of Business Conduct and Ethics, and through local site policies. Goldcorp also supports financially the Liu Institute for Global Issues whose research embraces international relations, human security, peace and disarmament, the environment, conflict and development, and global health and international justice issues. The Company is also supportive of industry initiatives such as the International Cyanide Management Code, Mineral Council of Australia’s Sustainability Framework ‘Enduring Value’, International Council on Mining and Metals (ICMM) Sustainable Development Charter and the Global Reporting Initiative. Even though we are not signatories to these initiatives, we support measures that reduce the impacts of mining activities and lead to improved environmental and social performance within the industry.
Tailing dam - Peak mine, NSW, Australia
environmental performance
15
Climate Change
Goldcorp acknowledges that climate change is a real international and community concern. We support and endorse various initiatives for voluntary actions consistent with international initiatives on climate change. We are committed to reducing energy consumption and greenhouse gas emissions and we promote energy efficiency at all our operations.
Biodiversity
Competing land use, including mining operations, poses significant risks to biodiversity around the world. Goldcorp’s operations span a range of ecosystems from the tundra of Northern Canada to the rainforests of Brazil. In all cases, Goldcorp seeks to minimize the risks to biodiversity and limit the damage to the environment.
Some of the Company’s operations are situated in areas that have been degraded by more than 100 years of mining activity (San Dimas in Mexico) while others are located in previously undisturbed areas of rich biodiversity (Amapari in Brazil). Since acquiring the San Dimas operation, Goldcorp has implemented programs to increase the safety, stability and rehabilitation of pre-existing tailing storage impoundments. Considerable research and planning is being carried out to enhance stability and reduce environmental risks. The Company’s objective is to ensure that the dam structures meet all appropriate international safety standards, cause no degradation to surrounding water quality and maintain long term stability.
The Amapari project commenced commissioning in October 2005. It is situated in the Amazon Forest, which is the habitat of a great variety of species of plants and animals. The company has carried out comprehensive studies of the local plants and animals, compiling an inventory of existing species in order to assure that reforestation and subsequent re-population of disturbed areas is maximized for native species. A water monitoring system has been implemented for the surface (creeks) as well as ground water (through wells and bores). A protection program has been implemented to assure the minimization of any environmental impact. The program will provide a database and baseline for future studies that will help protect local habitats during operations and restore the original ecosystem at the conclusion of mining operations.
Rehabilitation and Mine Closure
Goldcorp strives to minimize its environmental impacts and limits ground disturbance to the minimum necessary to conduct its operations. It is company policy to progressively rehabilitate disturbed ground as it becomes available wherever possible.
Goldcorp operates the Wharf open-pit gold mine and heap-leach operation in the Bald Mountain District of South Dakota. The mine has been operating successfully since1983 and has achieved major milestones in health and safety, and progressive reclamation of previously mined areas. The mine’s reserves are projected to be depleted early in 2007 and the operation is in the final stages of production and mine closure planning. The mine has always maintained a strong environmental focus and, at its own initiative, has rehabilitated old tailing deposits and mining activity from the turn of the century. Wharf is stepping up its environmental focus to ensure the mine is closed in a socially and environmentally sound manner. Hand-in-hand with this, the mine is working closely with all regulatory authorities to ensure compliance with their requirements.
Mine closure plans were developed at the time of permitting and were reviewed by the community in public hearings at the county and state levels. The standards for closure and final reclamation are addressed in the conditions of the mine permit and specific performance criteria developed to measure compliance with the standards. Financial assurance to the amount of $10.7 million is posted with the state to ensure performance with the closure and reclamation plan. Post-closure activities, including water treatment and monitoring, are also ensured with an additional $8.1 million posted with the state.
In 2005 Goldcorp was awarded “The Jake MacDonald Mine Reclamation Award” for its reclamation of the Golden Bear Mine located in northern British Columbia. The Technical and Research Committee on Reclamation (TRCR) present this award annually for ‘outstanding achievement in British Columbia’.
Also in British Columbia, Goldcorp is managing the former Equity silver mine which closed in 1994. The site produces acid rock drainage (ARD) from rock storage areas which is treated in two lime treatment plants before discharge to the environment. The treatment facilities were recently upgraded and a security bond has been established to provide sufficient funds for the long term operation of the system.
Goldcorp is a natural resource company whose activities provide basic materials and precious metals for social and economic development. The company derives its income mainly from the sale of gold, silver and copper metals.
Goldcorp’s operations contribute towards the economic development and wealth of host communities and countries through:
• Wages and salaries paid to employees and contractors
• Job creation through expansion of existing operations or aquisition of new projects
• Royalties and taxes paid to governments (national, provincial and local)
• Payments to suppliers for goods and services
• Indirect job creation and small business development in surrounding communities and towns
• Upgrading of local infrastructure
• Financial support for community development through community funds and social involvement initiatives.
Goldcorp’s direct foreign investment in the countries in which it operates in 2005 amounted to approximately $0.6 billion. Goldcorp believes that mining developments should result in the sharing of benefits for all stakeholders. The value distribution of revenue received from Goldcorp’s operations in 2005 is shown in Chart 1 below.
Economic Indicators
CHART 1: VAluE ADDED AnD DISTRIBuTIOn ($uSM)
2005 2004
Revenue (Value added)
From gold/silver/copper sales 896.4 191.0
Expenses (Value distribution)
Operating costs (goods and services) 253.3 66.9 Salaries and wages 76.8 17.7 Taxes and duties 142.4 30.1
Royalties 10.4 1.0
Reinvestment (plant, exploration, community) 8.0 6.7 Non cash (depreciation, depletion, FX etc.) 119.8 17.3
net earnings 285.7 51.3
Cash flow from operations 465.8 53.1
»
LOCAL(STATE OR PROVINCE) 187.3 NATIONAL (REST OF COUNTRY) 63.8 INTERNATIONAL 26.4
TOTAL 277.5
EXPENDITURE BY REGION
EXPENDITURE US$M
GEOGRAPHIC AREA
economic performance
17
In 2005, Goldcorp spent $277.5 million in capital expenditure for
new investments and to increase efficiencies at existing operations.
Principal among these was the new development of the mapari Gold
project in Brazil which will make a significant economic contribution
to surrounding communities and the host country. The Company also
advanced development of the Los Filos gold project in Mexico.
“Our goal is to offer the communities a better future through local
partnerships which have a positive impact on their quality of life.”
social performance
Goldcorp’s operations are located in diverse regions around the world.
Social Responsibility is an essential part of our daily activities with our employees and communities. It is important that all our employees and surrounding communities, where our operations are located, can benefit from mining. Goldcorp’s contributions to the community begin prior to project development and extend beyond reclamation completion.
Our goal is to offer the communities a better future through local partnerships which have a positive impact on their quality of life. Our contributions include infrastructural developments, investment in education and various organizations, sponsorships, equipment, training programs and contributing towards a prosperous economic development of the various communities where Goldcorp and its subsidiaries are present.
Our sustainable development and community programs seek to add long term benefits independent of the mining operations. Although this may be difficult to achieve, particularly in the short term, it is our long term goal.
We give employment preference to local people wherever possible and support education and training to build capacity and increase local employment both at our operations and elsewhere in the community.
Community Engagement
Goldcorp is an integral part of the communities in which it operates. We strive to ensure community engagement through economic contributions, community involvement, community consultation, school activities and support, special events and partnering with various organizations.
We are proactive in program development in order for the communities not to be reliant on the mines for their future. We respect cultures, customs and values in dealings with employees and others who are affected by our activities. Several of the operations have formed formal consultation committees with the local community. These committees generally consider environmental issues associated with mining operations, future plans for the operation, rehabilitation planning and mine closure planning. Formal consultation committees have been established at the Peak mine in Australia, Red Lake mine in Canada and the Wharf mine in the US. At the Amapari project in Brazil, a local community management committee is being established to obtain input from residents regarding the project’s community development program.
1
Community Issues
All of Goldcorp’s operations have procedures for handling community issues and these are followed up to determine mutually acceptable resolution. Typically, issues relate to dust, vibrations from blasting and noise pollution. In all cases the Company tries to continue dialogue with the complainant and take appropriate remedial action.
As an example, the Peak mine maintains a 24-hour complaints hotline through which community members can raise concerns about the company’s operations. In 2005, Peak received four complaints relating to blasting noise / vibration and speed of exploration vehicles.
Donations
Goldcorp recognizes the importance of contributing to the communities in which it operates, and provides support to a wide variety of initiatives through donations and the sponsorship of events. The mine sites operate their own programs and contribute especially in areas such as education, health care, local infrastructure and small business development.
Goldcorp also supports a range of corporate initiatives and in 2005 these included The Liu Institute for Global Issues, Big Brothers Association, the Canadian Cancer Society, the Road to Champions (Supporting Canadian Athletes), Special Olympics British Columbia and the Vancouver Youth Soccer Team.
Goldcorp’s mining and processing operations are geographically diverse and operate in harmony with their neighbours and with due care for the environment. The company’s operations are located in Canada (Musselwhite, Red Lake, Porcupine), the United States (Wharf), Mexico (San Dimas), Brazil (Amapari), Argentina (Alumbrera), Chile (La Coipa) and Australia (Peak). Descriptions of each of these operations along with environmental, community and economic initiatives are contained in the following section.
mine operations
21
Open pit, Porcupine Joint Venture mine - Timmins, Ontario
Musselwhite is principally an underground gold mine and associated processing plant producing nearly a quarter of a million ounces of gold annually. The mine is situated in north-western Ontario, Canada and is owned by Goldcorp Inc (68% and operator) and Kinross Gold Corporation (32%). Musselwhite has established an innovative agreement with the First Nation people which provides for a range of education, training, employment and business related services for local communities.
location
The Musselwhite mine is located on the southern shore of Opapimiskan Lake, 480 kilometres by air north of Thunder Bay in northwestern Ontario. The nearest town, Pickle Lake, is 103 kilometres by air to the south.
Musselwhite experiences a continental type climate which can be extreme, with temperatures commonly ranging from -45 °C in the winter to +30 °C in the summer. The average annual precipitation is 760 mm occurring mostly as rain in spring and summer.
Mining and Processing
Musselwhite produced ore from three underground sources in 2005: the T Antiform, PQ and PQ Deeps development. Different mining methods are employed depending on local conditions and these include transverse stopes, longitudinal retreat mining and long hole stoping.
Milling facilities crush and grind gold ore, and two Knelson concentrators extract liberated gold. Conventional whole-ore cyanidation is used to extract further gold from the ore. Leaching is carried out in four stirred-tank reactors and gold is recovered in a Carbon in Pulp (CIP) circuit. Electrowinning and refining produce gold metal.
Environmental Initiatives
closure planning
Musselwhite’s Closure Plan was rewritten in 2005 to address the mining of the Ranger Open Pit in 2004 and raising the tailing dams in 2005. The regulated financial assurance was increased, to reflect the additional disturbances and the increased
mitigative responsibilities required. The Closure Plan has been distributed to the various ministries and First Nation communities for public comment.
fish & wildlife management plan
Musselwhite mine has developed a Fish and Wildlife Management Plan to assist in minimizing impacts to the surrounding fish and wildlife. Since the area around the mine is biologically significant, Musselwhite decided to implement this plan to ensure fish and wildlife in the vicinity of the mine are adequately managed and protected.
international cyanide management code (ICMC)
The ICMC is a voluntary code developed by a multi-stakeholder Steering Committee under the guidance of the United Nations Environmental Program (UNEP) and the International Council on Metals and the Environment (ICME). It contains nine standards for the gold mining industry to improve the management of cyanide, assist in the protection of human health and ultimately
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ontario,
canada22
musselwhite mine, ontario, canada
(68% owned)
reduce potential environment impacts. Musselwhite is working towards complying with the Code in 2007 but will not be a signatory to the Code.
tailing storage facility
In 2005 the height of the perimeter wall of the tailing storage facility was increased by one metre. This has increased the tailing storage capacity and life from less than one year to four years while maintaining the existing footprint.
energy and greenhouse gases
Reduction in energy consumption and associated greenhouse gases is a prudent management strategy. Musselwhite has initiated the Watt Watchers energy reduction program, as well as subscribing to the Mining Association of Canada’s ‘Towards Sustainable Mining’ (TSM). While the emphasis has been on energy reduction, the operation continually explores options for potential reductions of greenhouse gas emissions. These include renewable energy projects (such as potential wind generation power), lower-emission alternative fuels and non-fossil fuels.
Community Development
Communication and engagement of the local communities is an important component of Musselwhite’s commitment to social responsibility. The Environmental Working Group is a public liaison committee composed of a cross section of diverse interests from local communities. Through these committees the mine is able to report its progress, receive feedback and hear concerns directly from local citizens. Musselwhite also tries to engage these groups in the development of local projects that will benefit the area over the long-term and beyond the mine life. Musselwhite has an agreement with the First Nations
communities to hire community members for positions at the mine
site. An employment target of 30% was agreed to in 2001 but both the First Nations communities and the mine have struggled to meet this target. To help increase First Nations employment, the mine has contracted a social services provider and is identifying ‘employment ready’ community members and those interested in developing pre-employment skills.
Economic Contribution
Significant economic benefits to local communities include wages for local residents employed at the mine, taxes (municipal, provincial, and federal), donations and the local purchase of goods and services.
In 2005 our contributions included:
• Increasing our partnerships with local communities aimed at extending the life of our operations, thereby extending or increasing our local investment.
• Exploring where we operate so that we can extend our operations’ life and economic benefits for local communities.
• Pipestone Northern Construction – a joint venture with The First Nations to supply construction and freight services to the mine.
• Windigo Catering – a First Nations services contractor which supplies camp and kitchen services to the mine to the value of approximately $2 million per year.
• Wasaya Airlines – a First Nations owned and operated air services company, which flies employees to and from the site. The contract value is approximately $3 million per year.
REGIONAL(ONTARIO PROVINCE) 21.2 NATIONAL (REST OF CANADA) 96.6 INTERNATIONAL 5.4
TOTAL 123.2
CHART 2: EXPENDITURE BY REGION
EXPENDITURE US$M
GEOGRAPHIC AREA
OPERATING COSTS (GOODS AND SERVICES) 98.5 SALARIES AND WAGES 24.6 TAXES AND DUTIES 0.1
TOTAL 123.2
US$M
EXPENSES (VALUE DISTRIBUTION)
» Musselwhite mine is a former Placer Dome property acquired by Goldcorp from Barrick Gold Corporation in May 2006.
24
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The new Red Lake Gold Mines comprises two operating complexes: the Red Lake complex and the Campbell complex. The Red Lake complex is Canada’s largest gold mine, producing more than 600,000 ounces a year. The Campbell complex, which was acquired from Placer Dome in May 2006, has been in continuous operations since 1949, producing over 200,000 ounces per year.location
The Red Lake Gold Mines are located in the ‘Sunset Country’ region of Northwestern Ontario, Canada. They are 175 kilometres north of the Trans Canada Highway. The Red Lake Municipality is comprised of five towns, Madsen and McKenzie Island (outlying communities), Red Lake, Cochenour, and Balmertown, the home of the Red Lake and Campbell complexes. The Municipality of Red Lake has a population of 5,000.
The terrain in the vicinity of Red Lake is gently rolling with various forms of glacial cover. Much of the region is still untouched and is accessible only by air or boat. Thousands of lakes, beaches, lush rolling forests and abundant wildlife enhance the area.
The weather is generally fair with warm summers and cold winters. The temperature in July is +25°C, with 62 mm of precipitation. In January it is -20°C, with an average snow accumulation of 35 centimetres. The days are short in winter, but long and pleasant in the summer months.
Mining and Processing
Following the discovery of a high grade ore zone and subsequent expansion of mine facilities, the Red Lake complex was revitalized and achieved full production in January 2001. Mining is carried out using underground cut and fill techniques allowing maximum ore extraction and minimal dilution of the high-grade, narrow vein system.
The processing plant at Red Lake consists of crushing, grinding, gravity concentrating, leaching, carbon-in- pulp (CIP), carbon elution and reactivation, electrowinning and bullion smelting/ refining, cyanide destruction, flotation and concentrate handling. At the Campbell complex, mining is carried out using
predominantly long hole stoping with some cut and fill stoping. Above 27 Level, a combination of mechanized, rubber-tired diesel equipment and conventional track haulage is utilized, while below 27 Level all mining is mechanized to provide greater flexibility and productivity.
At Campbell processing consists of crushing, grinding, gravity recovery, flotation, pressure oxidation, cyanide leach, CIL and CIP recovery. The pressure oxidation circuit handles refractory ore. In the pressure oxidation circuit, slurry is fed through a six compartment autoclave where sulphide minerals are oxidized under high pressure and temperature. The gold in the resulting slurry is then amenable to conventional cyanide leaching.
Environmental Initiatives
At the Red Lake complex the tailing management facility is currently undergoing modifications to address current mill and
redlakegoldmine
,
ontario,
canada24
25
LOCAL (COMMUNITIES NEAR MINE) 13.6 REGIONAL (ONTARIO+MANITOBA) 85.5 NATIONAL (REST OF CANADA) 9.1
INTERNATIONAL 1.5
TOTAL 109.7
CHART 3: EXPENDITURE BY REGION (RED LAKE COMPLEX ONLY)
EXPENDITURE US$M
GEOGRAPHIC AREA
OPERATING COSTS (GOODS AND SERVICES) 53.6
SALARIES AND WAGES 10.6
TAXES AND DUTIES 0.7
TOTAL 64.9
US$M
EXPENSES (VALUE DISTRIBUTION)
red lake mine, canada
(100% owned)
mine effluent criteria to ensure discharge water continues to meet all provincial and federal regulations. With the mine production expansion plans in the near future, planning has begun for an additional treatment area that will incorporate sound mine waste management practices, as well as a new effluent treatment facility. A new effluent treatment facility was constructed at the historical Cochenour Wilanour Mine site to process runoff water that passes through the tailing management area. Even though the facility is not currently operating, Goldcorp is continuing to research and develop a bio-treatment process for the removal of arsenic from the effluent.
The Red Lake complex has developed working relationships with several universities, research consultants and government agencies to develop and examine rehabilitation techniques and environmental monitoring programs.
The Campbell complex vision for sustainability centres on maintaining clean air and water, demonstrating responsible use of the land and ensuring social progress. The implementation of this vision will lead towards sustained economic benefit for stakeholders and the surrounding community. The Campbell complex Community Liaison Committee continues to provide a valuable opportunity for communication between community members and mine environmental staff.
Community Development
Red Lake Gold Mines provides employment for over 1,294 employees and contractors, more than half of whom live in the Red Lake Area. Mine employees participate in the annual Terry Fox Run and Relay for Life and Red Lake Gold Mines supports this by sponsoring teams and matching contributions. The mine has endorsed and partially financed the study for a road west to Winnipeg. The mine has also sponsored the annual sled dog races and various youth and adult sporting teams.
Both complexes support local schools through donations for playground equipment, improving their heating systems and fundraising events for various activities. The mines are actively involved in the school curricula by providing guest speakers, making presentations and judging speeches or science fairs. The Company supports high schools by donating awards for academic achievement, providing annual graduate scholarships and providing student employment.
Red Lake Gold Mines continues to support the Red Lake Margaret Cochenour Memorial Hospital in improving its facilities. The mine has given regular financial support over the years for doctor training, recruiting and equipment purchases. The Red Lake Museum expanded to the new Red Lake Heritage Centre last year. Red Lake Gold Mines, along with other organizations, was a major contributor. The Centre houses a museum and archives, a tourist information centre, displays about Woodland Caribou Park, a mining exhibit and a multi-purpose room for temporary exhibitions.
Economic Contribution
The Red Lake Gold Mines have been an integral part of the local community for many years and will continue to bring prosperity to the district in the years ahead. The Red Lake complex spends more than US$13 million annually with local suppliers.
Red Lake Gold Mines promote the use of local and provincial suppliers and contractors for services wherever possible. During 2005, the Red Lakes complex total operating expenditure was US$64.9M, including salaries of US$10.6M, the majority of which was spent within Ontario. Capital expenditures of US$27.9M (excluding the expansion project) were also incurred.
» The Campbell complex is a former Placer Dome property acquired by Goldcorp from Barrick Gold Corporation in May 2006.
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The Porcupine Joint Venture (PJV) consists of three operating gold mines and a central milling facility at Timmins in north-eastern Ontario. The properties have produced more than 16 million ounces of gold since production began in 1910 and include North America’s longest continually operating gold mine.
location
Most of the Porcupine properties are located within the city limits of Timmins, Ontario, but the generic area of influence is a 100 kilometre radius from the Dome mill. The total area is about 38,000 hectares of mining and exploration properties.
Porcupine is located within the Boreal Climatic Region which is characterized by warm, moderately humid summers and cold, dry winters. Temperatures range from -45°C to +30 °C. Mean rainfall is 600 millimetres and mean snowfall is 300 centimetres.
Mining and Processing
The Hoyle Pond underground mine is accessed by both a decline and shaft. Mining methods employed are conventional cut and fill, shrinkage, panel mining, and longhole methods in wider zones.
The Dome underground operation was restarted in 2006 after being placed on care and maintenance in 2004. Ore from a combination of broken muck in stopes and longhole mining methods is hoisted to surface via a production shaft.
The Pamour open pit built up to full production during 2005 and will be mined in three stages using conventional open pit mining methods including electric cable shovels and 136 tonne haul trucks.
Gold is recovered from ore from all three mines and a large low-grade stockpile using a combination of gravity concentration and cyanidation techniques. The circuit consists of crushing, rod/ball mill grinding, gravity concentration, cyanide leaching, carbon-in-pulp gold recovery, stripping, electro winning and refining.
Environmental Initiatives
rehabilitation of historic sites
Porcupine consists of many historical gold mining properties (>20) including the Dome, McIntyre and Hollinger underground mines. Mining began at these properties as early as 1910 and the legacies from earlier mining activities include waste rock, tailing material, subsidence zones and public hazards. Porcupine is committed to rehabilitating these properties to as close to their original state as possible. Rehabilitation may yet involve mining the remaining low-grade ore in an open pit to eliminate the historic hazards.
The PJV has commenced rehabilitation activities at many of the sites and has filed separate formal closure plans with the provincial government for most of the properties. Reclamation is ongoing and several hundred hectares have been reclaimed since 1999. In 2005, more than US$2.5 million was spent on mine closure and reclamation, remediation of historic tailing facilities and planning for future reclamation work.
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porcupine mine, canada
(51% owned)
water treatment and discharges
Porcupine is committed to the protection of lakes, rivers and streams that receive the final effluent from its mining operations. The mine treats all mine water to remove cyanide and metals before discharge into the Porcupine River System.
In conjunction with water treatment, the mine carries out
Environmental Effects Monitoring (EEM) to identify and determine changes in aquatic ecosystems as a result of human activities. The mine has completed numerous water quality and biological studies on the river system. The monitoring results indicate that conditions are improving and the water that is discharged today has a negligible effect on the surrounding environment.
energy and greenhouse gases
Porcupine has initiated the Watt Watchers energy reduction program, as well as subscribing to the Mining Association of Canada’s ‘Towards Sustainable Mining’ (TSM) to reduce energy use and greenhouse gases. While the emphasis has been on energy reduction, the operations continually explore options for more efficient or alternative renewable energy sources.
international cyanide management code (ICMC)
The ICMC is a voluntary code developed by a multi-stakeholder Steering Committee under the guidance of the United Nations Environmental Program (UNEP) and the International Council on Metals and the Environment (ICME). It contains nine standards for the gold mining industry to improve the management of cyanide, assist in the protection of human health and ultimately
reduce potential environmental impacts. Porcupine is working towards complying with the Code in 2007 but will not be a signatory to the Code.
Community Development
The Porcupine Joint Venture employs approximately 588 people, excluding contractors. Porcupine is very active in the Timmins community and provides a range of community benefits and facilities including support of hospital and medical facilities, parklands, biking, hiking and sporting facilities, educational facilities and many local charities.
The Porcupine Watchful Eye (PWE) is a stakeholder group that was formed in 1999 to support the Dome mine’s sustainability policy. The group accepted a greater challenge when the Porcupine Joint Venture was formed and the property more than tripled in land size. The main goal of this stakeholder group is to review identified issues and work with mine management to develop strategies that meet the needs of the stakeholders, community and company throughout and beyond mine life.
Economic Contribution
Significant economic benefits to local communities (principally Timmins) include wages for local residents employed at the mine, taxes (municipal, provincial, and federal), donations and the local purchase of goods and services.
REGIONAL(ONTARIO PROVINCE) 60.2 NATIONAL (REST OF CANADA) 98.2
INTERNATIONAL 4.8
TOTAL 163.2
CHART 4: EXPENDITURE BY REGION
EXPENDITURE US$M
GEOGRAPHIC AREA
OPERATING COSTS (GOODS AND SERVICES) 125.3
SALARIES AND WAGES 35.7
TAXES AND DUTIES 1.9
TOTAL 162.9
US$M
EXPENSES (VALUE DISTRIBUTION)
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In 2005 our contributions included:
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»
Wharf mine consists of an open-pit gold mine and heap-leach operation in the Bald Mountain Mining District of South Dakota. The mine has been operating successfully since 1983 and has achieved major milestones in health and safety, and progressive reclamation of previously mined areas. The mine’s reserves are projected to be depleted early in 2007 with leaching operations winding down over that year.As closure draws nearer, Wharf is working closely with the community and all regulatory authorities to ensure the mine is closed in a socially and environmentally sound manner in compliance with their requirements.
location
The Wharf mine is located six kilometres west of Lead in the Black Hills, a heavily forested, small mountain range located in western South Dakota. Annual average precipitation in Lead is 73 centimetres, with most precipitation falling between April and September. Elevations in the Black Hills range from 1,066 metres to 2,207 metres with the mine at an elevation of about 1,870 metres.
Mining and Processing
The mine has been developed as a series of open pits, most of which are now mined out. The pits have been progressively rehabilitated as mining development progressed, thus limiting the environmental liabilities at mine closure. Conventional open pit mining methods using loader/truck operations are employed at
the current Trojan pit, which will supply ore until the exhaustion of reserves early in 2007.
Run-of-mine gold ore is crushed before haulage to one of four on-off heap leach pads. Once a pad has been fully leached, the heap is rinsed with water and neutralized to oxidize residual cyanides. The resultant solution is piped to the recovery plant where the gold is removed from solution before electro plating from the circuit and shipment to a third party refinery.
Environmental Initiatives
Wharf Resources is committed to the protection and preservation of the environment and to ensuring compliance with all
relevant industry standards, environmental legislation and regulations. The environmental objectives and targets involve the participation of all employees, and allow them to be part of good environmental stewardship.
Wharf received the ABEX Award from South Dakota Industry and Commerce Association for excellence in mine reclamation activities in recent years. The mine has continued to implement a number of initiatives to reduce its impact on the environment including:
• Remediation of old tailing and mining activity from the turn of the century.
• Aggressive sampling to monitor air and water quality, wildlife and reclaimed land.
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southdakota,
usaabout 1,870 metres.
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• Wharf has been implementing timber programs for almost two decades focused on generating enhanced wildlife habitat, reducing timber fuel loads to prevent wildfires and minimizing infestations of ponderosa pine trees.
• In 2005 the company sold four blocks of land at Wharf and one at Golden Reward for subdivision purposes.
• Wharf is implementing a water treatment program, vital in determining the post closure treatment options and in reducing the post closure period.
mine closure
Mine closure plans were developed at the time of permitting and were reviewed by the community in public hearings at the county and state levels. The standards for closure and final reclamation are addressed in the permit, along with specific performance criteria to measure compliance with the standards. Financial assurance of $10.7 million is posted with the state to ensure performance with the closure plan. Post-closure activities, including water treatment and monitoring, are also ensured with an additional $8.1 million posted with the state.
After cessation of active mining, all disturbed land on the mine site is contoured. Topsoil is placed on the land and seeded with an approved variety of grass species. Additional trees and shrubs are planted the following year. The approved post mining land use is range land grazing. However, the reclamation plan provides for the development of wildlife habitat and recreation areas in specific parts of the property.
Community Development
Over its 22 year life, Wharf mine has provided substantial benefits to the local community and the South Dakota State government. The mine currently employs 100 full-time employees. As the mine life comes to a close, Wharf has implemented a range of programs to ensure that employees
are treated fairly, receive lifestyle advice and guidance, and rewarded for years of service.
Wharf employees participate in many civic activities in the surrounding communities that support schools, youth programs and other community groups. Wharf encourages employees to be involved in the community by offering discount memberships to various community facilities, encouraging leadership roles in many civic groups and involving organizations in mine related functions.
The Company participates in continuing education through monetary assistance, seminars, on-site training and professional conferences. The Company also rewards employees for obtaining professional and trades certifications.
Economic Contribution
Wharf mine has contributed millions of dollars to the local and state economy, promoted non-mineral business growth and provided educational opportunities for the state’s youth. The company continues to support the community through local purchases of goods and services wherever possible. During 2005, Wharf’s total operating expenditures were US$24.3 million, including salaries and benefits of US$6.2 million and state and local taxes of US$1.4 million. Approximately 70% of the 2005 expenditures were made in the state of South Dakota, the majority expended in the Black Hills. Donations exceeding US$24,000 were made to local youth and community organizations, facilities and activities.
Since 1988, Wharf has paid almost US$19.5 million to South Dakota in severance taxes, of which $1 million was returned to Lawrence County to foster sustainable economic development after mine closure. Wharf has paid an additional US$7.5 million to Lawrence County in property taxes since mining began.
LOCAL(SOUTH DAKOTA STATE) 14.8 NATIONAL (REST OF USA) 10.7
TOTAL 25.5
CHART 5: EXPENDITURE BY REGION
EXPENDITURE US$M
GEOGRAPHIC AREA
OPERATING COSTS (GOODS AND SERVICES) 16.7
SALARIES AND WAGES 6.2
TAXES AND DUTIES 1.4
ROYALTIES 1.2
TOTAL 25.5
US$M
EXPENSES (VALUE DISTRIBUTION)
2
wharf mine, south dakota, united states
30
The San Dimas gold-silver deposit is one of the most significant precious metal deposits in Mexico. The San Dimas mines comprise several underground operations using primarily mechanized cut-and-fill mining methods and a processing plant employing cyanidation and zinc precipitation for recovery of gold and silver.
The San Dimas mines have a long mining history dating back to the 1890s. Goldcorp (through its subsidiary Luismin) has updated the mine’s operational infrastructure and introduced modern processing systems.
location
The San Dimas gold-silver mine is located on the border of the States of Sinaloa and Durango, some125 kilometres northeast of Mazatlán in central west Mexico. Mining operations are centred on the town of Tayoltita, approximately 600 metres above sea level.
The climate is semi-tropical with hot summers and mild winters. The San Dimas region is mountainous with elevations ranging from 2,400 metres on the high peaks to 400 metres in the valley floors. Pine, juniper and scattered oak grow on the higher ridges while the lower slopes and valleys are covered with thick brush, cactus and grasses. Mining, subsistence farming, ranching and timber cutting are the predominant activities.
Mining and Processing
Mining operations are concentrated at three main production areas. All are underground operations using primarily mechanized cut-and-fill mining methods, with underground loading equipment feeding either truck or rail haul to the mills. Primary access takes advantage of the topographic relief, with adits driven at river level to intersect the veins at depth. The Tayoltita mill employs conventional cyanidation and zinc precipitation for recovery of gold and silver. The mill employs fine crushing and single stage ball milling to achieve a fine grind before passing into the leach circuit. Leaching is completed in a series of tanks with the gold and silver recovered from solution in a zinc precipitation circuit.
Environmental Initiatives
The EMS employed at San Dimas (known as the Environmental Conservation System) is used to identify and reduce, eliminate or avoid the environmental impact caused by the company’s mining and processing operations. Precautionary measures are taken to avoid damage to the ecosystems wherever possible. Where adverse impacts have occurred, integrated programs are implemented to promote the recovery of the affected ecosystems. Recent initiatives to reduce environmental impacts include the following activities:
• A review and update of the Environmental Conservation System guidelines following modifications to mining and processing operations in 2005.
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sandimasmine
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sinaloa/durango,
mexicosea level.
