ENDEAVOUR MINING - SUSTAINABILITY REPORT
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ENDEAVOUR
MINING
SUSTAINABILITY
REPORT
For the reporting
period from January
to December 2017
EDV:TSX
MESSAGE
CONTENTS FROM OUR CEO
This is Endeavour’s first sustainability report. This report
adheres to guidelines as set out by the Global Reporting
Initiative (“GRI”) and has been prepared in accordance with
the Core GRI guidelines, with no External Assurance.
CAUTIONARY STATEMENT
All amounts in this document are in US$ unless otherwise
stated.
This document contains “forward-looking statements”
AND PRESIDENT
including but not limited to, statements with respect to MESSAGE FROM OUR CEO AND PRESIDENT 3 SÉBASTIEN DE MONTESSUS, CEO AND PRESIDENT
Endeavour’s plans and operating performance, the
estimation of mineral reserves and resources, the timing ABOUT ENDEAVOUR 4
and amount of estimated future production, costs of future
production, future capital expenditures, and the success SUSTAINABILITY AT ENDEAVOUR 6
of exploration activities. Generally, these forward-looking
statements can be identified by the use of forward-looking
terminology such as “expects”, “expected”, “budgeted”,
“forecasts” and “anticipates”. Forward-looking state- I am pleased to share with you our first
ments, while based on management’s best estimates and
sustainability report. Over the following
“
assumptions, are subject to risks and uncertainties that
may cause actual results to be materially different from chapters, we set out how we approach the
those expressed or implied by such forward-looking
subject of sustainability and responsibility in
statements, including but not limited to: risks related to
the successful integration of acquisitions; risks related to
international operations; risks related to general
our mining operations. We recognise that we must all
economic conditions and credit availability, actual results
of current exploration activities, unanticipated reclamation
OUR COMMUNITIES OUR EMPLOYEES
While this is our first sustainability report,
sustainability itself is nothing new for
– from the leadership down –
expenses; changes in project parameters as plans
continue to be refined; fluctuations in prices of metals Endeavour – it is something that we work take responsibility for what
”
including gold; fluctuations in foreign currency exchange
P.12 P.24 towards every single day. For many years,
rates, increases in market prices of mining consumables,
possible variations in ore reserves, grade or recovery
rates; failure of plant, equipment or processes to operate
individual mines have implemented their own
social responsibility initiatives. As the business
happens in our name.
as anticipated; accidents, labour disputes, title disputes,
claims and limitations on insurance coverage and other has developed and we have reshaped our
risks of the mining industry; delays in the completion of portfolio, we have also developed a stronger
development or construction activities, changes in
national and local government regulation of mining
corporate function. This now has responsibility
operations, tax rules and regulations, and political and for sustainability, as we recognise that we must
economic developments in countries in which Endeavour all – from the leadership down – take
operates. Although Endeavour has attempted to identify
important factors that could cause actual results to differ responsibility for what happens in our name. As our business has grown, so has our impact Environment: managing our responsibilities in
materially from those contained in forward-looking in the countries where we operate. We are now all operations to ensure the environment is
statements, there may be other factors that cause results That is why this is a particularly important
not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be
HEALTH OUR ENVIRONMENT moment for Endeavour, as we integrate our
among the largest mining companies in Côte
d’Ivoire and Burkina Faso, and we recognise the
protected today and preserved for future
generations.
accurate, as actual results and future events could differ AND SAFETY sustainability approach. This report codifies for
increased responsibility this brings. We must
materially from those anticipated in such statements. the first time how we measure the impact that This report looks at each pillar in more detail.
Accordingly, readers should not place undue reliance on
forward-looking statements. Please refer to Endeavour’s P.32 P.38 we have on the world around us, and the
be transparent with our stakeholders about the
While we continue to embed these within our
risks and opportunities that we face, and the
most recent Annual Information Form filed under its programs that we have in place to mitigate any operations – and have embarked on a number of
profile at w w w.sedar.com for fur ther information processes and tools that we use to manage
respecting the risks affecting Endeavour and its adverse effects that may arise as a result of initiatives to ensure that we approach
them. In turn, this helps us to build and maintain
business. our activities. sustainability with the same rigour as our
the trust that forms our license to operate.
This document includes certain terms or performance operational excellence targets – we have also
measures commonly used in the mining industry that are not We recognize that building and maintaining
defined under International Financial Reporting
Our approach to responsible mining is based on chosen to adopt the GRI framework for our
ABOUT THIS REPORT 46 trust in our operations is fundamental to
Standards (“IFRS”), including “cash operating costs”, “all-in four main pillars: sustainability reporting. Beyond our direct
sustaining costs” (or “AISC”) and “adjusted cash GRI CONTENT INDEX 47 achieving a sustainable business. Every day, we
impacts, however, we aim to go further by
operating costs”. Non-IFRS measures do not have make decisions that have direct impacts on our Health and Safety: ensuring the safety of our
any standardized meaning prescribed under IFRS, leveraging our operations to leave a sustainable
and therefore they may not be comparable to similar measures environment and our stakeholders, including employees is our number one priority, as no
economic footprint around our mines. To this end,
employed by other companies. The data presented is our employe e s , the m emb er s of the tasks are so important that they cannot be
intended to provide additional information and should not be we will shortly be launching an economic
communities where we operate, and our host performed safely.
considered in isolation or as a substitute for measures of development fund that seeks to work with local
performance prepared in accordance with IFRS, and governments. These decisions must never be Employees: developing our people and culture
should be read in conjunction with Endeavour’s communities and governments to identify sectors
driven by financial considerations alone. At the is a competitive strength which is critical to our
consolidated financial statements. and businesses in need of investment, then work
same time, we are now an important employer current and future success.
with them to fund their development and allow
and a significant contributor to the economies Community: maintaining interaction with all
them to thrive. It is measures such as these that
of several countries. All these factors play a role local communities and all stakeholders,
will allow us to become a partner of choice for our
in our decision making, yet their significance is including governments, is based on mutual
neighbouring communities and governments.
rarely acknowledged by traditional financial respect and the creation of lasting partnerships
I wish you a pleasant read.
reporting metrics. and prosperity.
SUSTAINABILITY REPORT 3 SUSTAINABILITY REPORT
ABOUT
ENDEAVOUR TABAKOTO MINE
KARMA MINE
Endeavour Mining is focused on becoming a premier intermediate 4,000 HOUNDÉ MINE
African gold producer with a portfolio of high-quality mines. EMPLOYEES
WORLD-WIDE KALANA PROJECT
The company has established a solid operational and construction
track record and delivers cash flow from its five operating mines. In
2017, the full-year production was up 12% year-on-year and reached
663koz, at an AISC down $17/oz to $869/oz, in line with FY17 guidance.
Endeavour also has immediate growth potential through its high-
quality development projects, which include the construction-stage
Ity CIL (Carbon-in leach) project and DFS-stage (Definitive Feasibility
Studies) Kalana project. In addition, Endeavour offers long-term upside 663Koz $869/oz ITY MINE
through its exploration program, which aims to discover 10-15Moz 2017 2017 AISC ITY CIL PROJECT
PRODUCTION AGBAOU MINE
of gold between 2017 and 2021, which represents more than twice
the reserve depletion during the period. OPERATIONS OFFICE
Endeavour shares trade on the Toronto Stock Exchange under
the trading symbol EDV. Its corporate office is in London, UK, with an
operational office in Abidjan, Côte d’Ivoire. Endeavour sells its gold
Birimian Greenstone Belt Mines & Projects
to a trading company, which is then sent to a refinery.
10-15Moz 14.9Moz 9.1Moz
5-YEAR DISCOVERY M+I RESOURCES P+P RESOURCES
TARGET
ITY MINE & ITY CIL PROJECT AGBAOU MINE TABAKOTO MINE KALANA PROJECT HOUNDÉ MINE KARMA MINE
Ity has produced over 1.2Moz since its start in Agbaou was built ahead of schedule and Tabakoto was acquired in 2012 following The Kalana Project was acquired in 2017, to further The Houndé mine was successfully built ahead of The Karma mine was acquired in 2016, shortly after
1991. The Ity CIL Project is expected to give a under the $160m budget, commercial which the Segala open pit was converted to strengthen Endeavour’s high quality project schedule and below budget, with its first gold pour its first gold pour. Karma includes six identified gold
second life to the Ity mine with a long 14-year production was declared in January 2014. an underground mine and the Kofi C open pit pipeline. Endeavour expects to take advantage of occurring in October 2017. Houndé has become the deposits and is a shallow open pit with little blasting
mine life based on current reserves. The Agbaou has delivered very strong cash flows, was commissioned, and mill capacity was its construction expertise, operating synergies and Company’s flagship low-cost mine, ranking amongst required and a low strip ratio, making it a low cost
Feasibility Study outlined the potential for Ity with a payback period of less than 2 years. doubled. Current efforts are focused exploration experience to re-design and optimize West Africa’s top tier cash generating mines. operation. In 2017, an optimization project was
to deliver average production of 165Koz over on cost-optimization and exploration. the current feasibility study, which is expected completed to lift the stacking capacity.
the first 5 years at an AISC of $507/oz. to increase the annual production profile and
improve the project economics.
For additional information concerning the reserves and resources please consult the Company’s website.
SUSTAINABILITY REPORT 4 5 SUSTAINABILITY REPORT
SUSTAINABILITY AT ENDEAVOUR
SUSTAINABILITY 1. GOVERNANCE
AT ENDEAVOUR The Corporate Governance and Health,
Safety and Environment (“HSE”) Committees
of our Board of Directors direct our
sustainability efforts, with the participation
of key members of the senior management
team. The Committee oversees HSE and
Our approach to sustainability is based on our values corporate social responsibility (“CSR”)
and Code of Business Conduct and Ethics and reflects our deep policies and practices, and is ultimately
accountable for setting sustainability
respect for our social and natural environments. We want to bring priorities and assessing performance.
CORPORATE GOVERNANCE SNAPSHOT
lasting benefits to the regions where we operate by working Our Board of Directors has extensive and
collaboratively with local stakeholders. We commit to complying diverse experience in corporate governance, Size of the proposed board 8
geology, mining, politics, accounting, finance
with applicable laws and regulations and upholding high standards
ENDEAVOU
Number of independent directors 7
and African diplomatic relations.
All committee members are independent
of business ethics and transparency. Policies and management It is composed of eight Directors, six of
MINING
which are independent and seven of which Directors are elected annually
systems support our commitments and detail processes are non-executive. We have established Directors are elected individually
Our Policies
for managing health, safety and environmental issues Corporate Governance Guidelines to assist
our Board and its five committees (Audit Majority voting policy for
❯ Human Rights Policy
and integrating sustainability into our decision-making Committee, Corporate Governance and
the election of directors ❯ Environmental Policy
Nomination Committee, HSE Committee, The roles of Chairman and CEO are separate ❯ Health and Safety Policy
and everyday practices. Remuneration Committee and Technical ❯ Corporate Disclosure Policy
Anti-hedging polices
Committee) in the exercise of their ❯ Business Conduct
Policy on interlocking directors
responsibilities. There were 27 committee and Ethics Policy
meetings held in 2017. Furthermore, Director share ownership guidelines
❯ Anti-bribery
1. Governance — 7 we have a regional CSR department New director orientation and Anti-corruption Policy
2. Anti-bribery and corruption — 8 under the responsibility of the Executive
Vice President of Public Affairs, CSR Continuing director development ❯ Diversity Policy
3. Materiality — 8 and Security. ❯ Whistleblower Policy
Regular assessment of the Board
4. Stakeholder engagement — 10 and its committees
For more information, please
5. Integrating the United Nation’s Code of business conduct and ethics consult the below corporate
Sustainable Development Goals — 11 rooted in core values
policies available on our website
Mechanisms to ensure Board renewal
OUR VALUES
Safety Transparency Commitment Respect Performance
SUSTAINABILITY REPORT 6 7 SUSTAINABILITY REPORT
SUSTAINABILITY AT ENDEAVOUR SUSTAINABILITY AT ENDEAVOUR
2. ANTI-BRIBERY AND CORRUPTION
The importance of business ethics is reflected We also comply with the UK Bribery Act risk completed the on-line mandatory ENDEAVOUR’S MATERIALITY MATRIX 2017
as the first of the ten principles of the of 2010, and in order to equip our teams training. The company intends to replicate
International Council on Mining and Metals with the necessary knowledge to identify this initiative in 2018 to make sure people, HIGH
(“ICMM”) to implement and maintain ethical and respond appropriately to risks including newcomers, remain vigilant to this MEDIUM TOP PRIORITY
business practices that seek to prevent of corruption, we conduct a yearly “no compromise” approach to bribery PRIORITY
bribery and corruption. Domestic and mandatory training program. In 2017, and corruption.
international laws have been established we worked with external consultants
Resettlement Employment and Occupational
and enhanced to promote stronger business to produce an intensive review of Lastly, our Whistleblower Policy allows comp. labour relations health & safety
ethics, and to increase transparency of our policies across the company directors, officers, employees, contractors & livelihood
payments to government. Businesses are also to identify potential risks of bribery. and consultants of the firm and its restoration
Air quality,
experiencing increasing legal requirements Across the group, 186 people whose subsidiaries to make complaints and report dust emissions
associated with anti-corruption and tax positions expose them to potential bribery concerns on a confidential basis. and noise
transparency as well as public pressure Sustainable and
local procurement Water
for general transparency in transactions.
stewardship
The Corporate Governance Committee
of our Board of Directors ensures that Hazardous
materials &
we conduct our business in compliance waste Anti-bribery
with all anti-bribery and anti-corruption and corruption
Relevance for stakeholders
186
legislation and has adopted a “zero- Employee skills Community
transfer and training education and
tolerance” attitude for failure to comply. training
Security Artisanal Stakeholder
practice small-scale engagement
The objective of our Business Conduct mining
and Ethics Policy is to provide a procedure PEOPLE EXPOSED Diversity & equal
that ensures the company, together with TO POTENTIAL opportunities
its directors, officers, employees, consultants BRIBERY RISK
and contractors, conducts its business COMPLETED
in an honest and ethical manner, reflecting MANDATORY
the highest standards of integrity and in TRAINING
compliance with all relevant laws and Energy
Biodiversity
regulations in application. Greenhouse gas Economic
emissions performance
Closure
planning
3. MATERIALITY
This year, as a first step, a long list of issues The list then went to management - General Our first materiality assessment identied ten Conflict free gold
were identified upon the study of existing Managers, Country Managers and regional top priority issues and eight medium priority staff retention
elements within the organization (policies, key functions, who short-listed the most issues, as illustrated in our materiality
management systems, communication), important. As per guidance from the GRI, matrix. This matrix was validated by
relevant frameworks, standards and we have ensured these material issues government representatives and our LOW Significance of impacts on society, environment and economy HIGH
regulations (eg, GRI Standards, SASB- reflect our company’s significant economic, Executive Committee. The senior
Framework, Global Compact and Sector environmental and social impacts, and management team validated the consolidated
standards such as ICMM), sector specific matter to our stakeholders. The importance data and the management approach. Our communities Our employees Heath and safety Our environment
studies, NGO reports, media coverage, to stakeholders has been assessed Our sustainability efforts are directed
and existing contacts with stakeholders indirectly by key persons with contact at addressing these issues, as highlighted
inside and outside the company. with these stakeholders. in the upcoming sections of this report.
SUSTAINABILITY REPORT 8 9 SUSTAINABILITY REPORT
SUSTAINABILITY AT ENDEAVOUR SUSTAINABILITY AT ENDEAVOUR
4. STAKEHOLDER ENGAGEMENT 5. INTEGRATING GOAL 4: ENSURE INCLUSIVE AND
THE UNITED NATION’S QUALITY EDUCATION FOR ALL AND
PROMOTE LIFELONG LEARNING
Building strong and sustainable we disseminate project information, identified during this process based on the
SUSTAINABLE We aim to increase access to quality
relationships based on trust and respect and to ensure regular, accessible,
transparent and appropriate consultations.
degree to which they are affected by our DEVELOPMENT GOALS education for communities surrounding
our operations.
with our key stakeholders is of the outmost activities and relationships, as well as by
importance. It is therefore necessary their ability to influence the achievement of Examples our 2017 contributions included:
to deepen our understanding of our We have site-specific stakeholder our business objectives. The materiality ❯ 10 tertiary bursaries for students in Houndé.
stakeholders to respond to their concerns engagement plans that are refined and analysis reflects the most important concerns We support the United Nation’s Sustainable Development ❯ 40 prizes for student excellence at primary and secondary
and expectations the best we can. It allows modified throughout the life of the operation. to our stakeholders that we address on a Goals (“SDG”). We believe that the mining industry level in Ity.
us to identify the most effective methods Our goal for 2018 is to develop country regular basis: local employment, local has an opportunity to contribute positively to the SDG ❯ Construction of 3 classrooms, a management office
and structures through which stakeholder plans. The stakeholders are procurement, health and safety. and we specifically participate in seven of them. and latrines for 2 primary schools at Tabakoto mine.
❯ Construction of latrines and solar installation in a school
The eight main categories of stakeholders we engage with, along with the channels we use to interact with them, are represented at Karma.
in the below table. ❯ 186 school kits given to the best students from
the primary schools of 5 impacted villages and 3 schools
with highest pass rates awarded computers and printers
OUR STAKEHOLDERS
at Agbaou.
1/ COMMUNITIES 2/ EMPLOYEES
GOAL 1: END POVERTY IN ALL GOAL 5: ACHIEVE GENDER EQUALITY
❯ Consultation committees at various levels ❯ Staff representatives ITS FORMS EVERYWHERE AND EMPOWER ALL WOMEN AND GIRLS
❯ Grievance mechanisms ❯ Performance reviews and appraisals We aim to contribute to the prosperity of We promote equal opportunity hiring policy
❯ Regular meetings with traditional and religious authorities, ❯ Daily pre-start and toolbox meetings
our communities, regions and countries and seek to empower women and girls
as well as other community groups ❯ Training programs
❯ Consultations, environmental and social impact assessments, ❯ Newsletters by creating employment opportunities, through mentoring and training programs,
public hearings, stakeholder engagement plans ❯ Intranet supporting local businesses through as well as income-generating activities.
❯ Local cultural and sporting events procurement of goods and services, community investment
❯ Newspapers, radio, television Examples our 2017 contributions included:
and payments to governments.
❯ Newsletters and noticeboards ❯ Currently employ 250 women, representing 6% of total
❯ Participation in local sporting and cultural events Examples our 2017 contributions included: staff, with the aim of increasing this proportion.
❯ Mine site visits ❯ Nearly $500 million in economic value distributed ❯ Women in Mining Program launched at the Houndé mine,
❯ Community focal points in our host countries. designed to provide training and employment for local
3/ AUTHORITIES 4/ UNIONS ❯ Over $200 million spent with local suppliers. women.
❯ Direct community investments of circa $2 million across all
❯ Formal meetings and correspondence ❯ Union representatives’ meetings sites (in addition to the 0.5% community development tax). GOAL 6: ENSURE ACCESS TO WATER AND
DIALOGUE CHANNELS
❯ Board meetings ❯ Formal meetings, correspondence and events SANITATION FOR ALL
❯ Site visits and inspections ❯ On-site training GOAL 2: END HUNGER, ACHIEVE FOOD We seek to improve access to water
❯ Presentation of annual reports
SECURITY AND IMPROVED NUTRITION and sanitation for the communities
❯ Government and private sector meetings
❯ Chamber of mine meetings and events AND PROMOTE SUSTAINABLE surrounding our operations.
❯ National and international mining conferences AGRICULTURE
Examples our 2017 contributions included:
We support communities to increase
5/ SUPPLIERS AND CONTRACTORS 6/ SHAREHOLDERS
their agriculture output in order
❯ Rehabilitation of 12 boreholes and drilling of 3 large
diameter boreholes around Houndé mine.
❯ Relationship building by procurement team ❯ Investor roadshows to meet their immediate needs and sell the surplus.
❯ Drilling of 6 community boreholes for 6 villages around
❯ Supplier appraisal process ❯ Access to meetings and calls, including with CEO/COO/CFO/VP IR Tabakoto and a solar bowered borehole for the health
Examples our 2017 contributions included:
❯ Tender documents process or request for quote process ❯ Conferences and forums
❯ Supply contracts process or purchase order process ❯ Site visits ❯ Trained circa 530 women, 15 farmers and 120 youth centre of Tabakoto.
❯ Meetings with local businesses plus expediting and quality control ❯ Press releases, website and filed TSX regulatory documents to increase their agricultural production.
❯ Responding to sustainability questionnaires GOAL 8: PROMOTE INCLUSIVE
❯ Responding to rating agency questionnaires GOAL 3: ENSURE HEALTHY LIVES AND SUSTAINABLE ECONOMIC GROWTH,
AND PROMOTE WELL-BEING FOR EMPLOYMENT AND DECENT WORK
7/ NGOs 8/ MEDIA
ALL AT ALL AGES FOR ALL
❯ Partners in our community development and livelihood ❯ Publications and online information We value the health and well-being We seek to create conditions that allow
restoration projects ❯ Press releases and market statements of our staff and community stakeholders. people to have quality jobs that stimulate
❯ Formal correspondence and meetings ❯ Interviews the economy.
❯ CSR Forums ❯ Site visits Examples our 2017 contributions included:
❯ Short films ❯ Anti-malaria programs. Examples our 2017 contributions included:
❯ Regular coverage of site activities ❯ HIV/AIDs awareness campaigns and voluntary testing ❯ Employment opportunities are over 4,000 direct jobs
❯ Meetings with journalists programs. created by our operations, 94% of our workforce are host
❯ Press events country nationals.
❯ We have spent over $200 million with local suppliers.
SUSTAINABILITY REPORT 10 11 SUSTAINABILITY REPORT
OUR We recognize that local communities are at
the heart of our operations’ livelihoods and
COMMUNITIES
are fundamental to our day to day work.
We are committed to building strong
relationships and proactively engaging
in dialogue with local communities and
institutions, as well as the government
at a local, regional, and national level.
Ultimately, we believe that the construction
and operation of our mines can serve as
Our interaction with all local communities a catalyst for further long-term regional
development.
and stakeholders is based on mutual respect
Where resettlement is necessary, we
and the creation of lasting partnerships engage with affected communities early on
and prosperity. to assess and mitigate the potential impact
and work closely with them throughout the
process to ensure their expectations and
needs are not only met, but exceeded.
1. Local stakeholder engagement — 14
2. Artisanal and small-scale mining — 15 We facilitate community development
3. Resettlement impact — 16 programs with a special focus on education
and training – in addition to our mining
4. Training and education for local
investments, we are launching and financing
and national communities — 18
other sustainable income-generating
5. Security practices — 19
projects which seek to build the momentum
6. Closure planning — 20 that will attract other investors and
7. Economic performance — 20 ultimately create a local sustainable
8. Sustainable and local procurement — 21 economic capital for the region.
9. Economic development initiative — 23
SUSTAINABILITY REPORT 12 13 SUSTAINABILITY REPORT
OUR COMMUNITIES OUR COMMUNITIES
1 LOCAL STAKEHOLDER
ENGAGEMENT 2 ARTISANAL AND
SMALL-SCALE MINING
Maintaining trust through effective We acknowledge that community WE AIM TO ENGAGE WITH Artisanal and small-scale mining (“ASM”) access, child labour, drug and alcohol
community engagement in order to mitigate engagement is an important part of doing OUR STAKEHOLDERS IN AN OPEN has become a widespread challenge across addiction and prostitution. The hazards to
negative impacts and to maximize positive business for mining companies. As such, AND TRANSPARENT MANNER the mining industry. Despite government health come from the fumes from mercury,
impacts is a critical component we aim to engage with our stakeholders in an actions to regulate this activity, ASM has working in dark and damp conditions, and
TO MAINTAIN AN OPEN DIALOGUE
of maintaining a company’s social license open and transparent manner to maintain an experienced strong growth both globally and without safety equipment. ASM activity
to operate, which was ranked as one open dialogue throughout the life of the mine. THROUGHOUT THE LIFE in West Africa in the recent years, mainly represents1:
of the business risks facing the mining OF THE MINE due to the rising value of mineral. ASM is As the artisanal and small-scale miners are
and metals sector in 2017/18 by EY1. We have site-specific stakeholder engagement notably associated with negative health part of our community of stakeholders and 20%
The ICMM established stakeholder programs across our operations to both functional, accessible and widely published and safety, human rights and environmental we encourage them to participate in our of the global gold supply
engagement as one of its ten Principles. identify their main concerns and expectations external grievance mechanisms that are impacts for local communities. education and training activities to convert is produced by the ASM sector
and set a strategy to communicate and engage managed by our community relations teams. their skills and offer them the possibility
with them. Our engagement programs In 2018, we will be developping country We estimate that there are over 22O ASM to access a different type of employment. Over 40 million
are updated on a regular basis and include stakeholder plans. sites, ranging from gold panning sites people working in ASM in 2017
to semi-mechanized sites across our We are also closely working with the national world-wide, up from
exploration permits in Côte d’Ivoire, and local authorities as we rely on them for 6 million people in 1993
Burkina Faso and Mali. We estimate the support. Authorities have made progress to
413-1 OPERATIONS WITH LOCAL COMMUNITY ENGAGEMENT, IMPACT ASSESSMENTS, AND DEVLEOPMENT PROGRAMS number of active ASM sites on or near tackle this issue. For instance, Côte d’Ivoire Over 54 million
83% of our operating sites at 15 and 18 has rolled out a closure program, Mali has people whose livelihoods depend
AGBAOU ITY KARMA HGO TABAKOTO KALANA on the Kalana project. created a corridor where ASM is legally on the sector world-wide
authorized and Burkina Faso has planned
Social impact assessments,
including gender impact
Commissioned
with Environmental Our strategy consists in constantly to create a regulatory agency in 2018. Over 9 million
2009 Yes 2014 Yes 2016 ASM people in Africa, of which
assessments, based on and Social Impact monitoring these ASM activities and
participatory processes Assessment 40 to 50% are women
dialoguing extensively with both artisanal In 2018, we will undertake a group-wide
Data collection Data collection Data collection Data collection Data collection and small-scale miners, and the national exercise to have a comprehensive overview
Environmental impact
Audit every 6 months and monitoring and monitoring and monitoring and monitoring and monitoring and local authorities. of all ASM sites on our exploration and
assessments and ongoing
by an external agency by Environmental by Environmental by Environmental by Environmental by Environmental
monitoring exploitation permits with a view to rolling
department department department department department
Our security and community relations teams out a group strategy and various action
Results released
Public disclosure of results
to the national
on-site manage ASM activities on our land plans depend on priority and risk.
of environmental and social 2009 No Yes 2014 2016
impact assessments
accredited and make a record of all ASM activities
departments either by foot or using drones. Their roles
2016 for Local include conducting risk assessments,
Community Relations No formal plan but
Local community development Mining Community
activities included activities based on controlling and minimizing ASM activities,
programs based on local 2017 Development Fund 2017 2017
communities’ needs and 2017 for Ity
in the communal consultation and and monitoring high risk. We ran a survey
development plan needs
project to identify the various environmental, social
Stakeholder engagement plans
and health related risks of ASM. Our
Updated in 2017 Put in place in 2017 Updated in 2017 Updated in 2017 Updated in 2017 Updated in 2017 environmental evaluation conclusions raised
based on stakeholder mapping
concerns about mercury and cyanide
4 formal
Broad based local community compensation pollution, pollution of rivers from alluvial
1 formal committee 2 formal
consultation committees and
Yes
RAP committee put
and 2 formal sub-
committees, 1 formal consultation
Resettlement Action mining, destabilization of slopes from
processes that include vulnerable in place 1 formal provincial committee
groups
committees
committee and
Plan committees undercutting, loss of topsoil, disturbance of
3 sub-committees fauna and flora. The social issues are violent
and aggressive behavior, conflict over land
Health, Safety and
Works councils, occupational Environment (HSE) Work council and Worker reps Worker reps Worker reps Worker reps
health and safety committees committee, which syndicat created for and trade union and trade union and trade union and trade union
and other worker representation also works with staff Ity project, committees, committees, committees, committees,
bodies to deal with impacts reps and trade union HSE committee" HSE committee" HSE committee" HSE committee" HSE committee"
leaders
In place and
Formal local community In place - with 4 levels In place - with 4
2017 translated into local In place In place
grievance processes of resolution levels of resolution
language
1_ Top 10 Business Risks Facing Mining and Metals in 2017-2018. EY: www.ey.com/Publication/vwLUAssets/ey-top-10-business-risks- 1_ Ledwaba & Nhlengetwa, 2016 Persaud et al., 2017) and (IGF, Global Trends in Artisanal and SmallScale Mining, 2018)
facing-mining-and-metals-2017-2018/%24File/ey-top-10-business-risks-facing-mining-and-metals-2017-2018.pdf
SUSTAINABILITY REPORT 14 15 SUSTAINABILITY REPORT
OUR COMMUNITIES OUR COMMUNITIES
3 RESETTLEMENT
IMPACT THE KARMA RESETTLEMENT:
A PEOPLE CENTERED APPROACH
CASE
STUDY
At the Karma mine in Burkina Faso, Working with the Regional
We believe that through our resettlement implication at every stage of this process. some of the residents of Boulounga, Department of Housing and Urban
activities we have the opportunity to make The local authorities and leaders guide and the village next to the mine, were Planning, we strove to keep
a significant positive contribution to advise, while the affected parties are fully resettled on a 60-hectare site some traditional designs, while ensuring
the community development. We therefore engaged and help to shape a process The implementation 5 km away. The programme, the houses upgraded the living
conduct our resettlement programs that affects their lives. has various components: a two-phase resettlement operation conditions of resettled residents.
with care, following a Resettlement concerned 1,197 residents from Unlike the typical Mossi mudbrick
Action Plan (“RAP”) drafted by external In 2017, the community relations teams 1. Delimitation of the impacted area 208 households. houses that must be maintained
experts and in line with the International completed the resettlement programs and public announcement after each rainy season, we built
Financial Corporation (“IFC”) Performance at Houndé and Karma’s first phase, while 2. Identification and inventory of the Acknowledging that community the new houses with cement bricks,
Standards for land acquisition and starting the compensation process at Ity people affected by the project resettlement is always delicate, simplifying maintenance. The new
involuntary resettlement. for the CIL project. At the newly acquired (“PAP”) and their assets it was important for us to listen lots measure 400m2 and can
Kalana project, they reviewed the 3. Identification of to the local residents in an aim to accommodate up to three buildings.
We are aware that if resettlement activities resettlement action plan. the resettlement site not disrupt the social ties that bind Each household has a kitchen.
are run well, they can make a significant
contribution to development in the areas In 2018, our site resettlement managers will
4. Calculation of cost to compensate communities together. It has always Each lot at the resettlement site has
A PAP employee selecting the interior colours
or replace impacted assets been clear to us that people need to a toilet, a shower and solar power.
surrounding their projects. However, capitalize on this experience with a view to remain at the centre of our thinking Resettled residents were also given for his house.
if resettlement activities are not managed producing Endeavour’s compensation and 5. PAP decision for in-kind or when defining the new village security of tenure.
properly communities can face poverty resettlement best practices guidelines. monetary compensation structure. With this approach, held at every stage of the project
and social exclusion, and companies can 6. Monetary compensation payment we developed the Boulounga RAP Resettlement is also an opportunity to involve residents in key decisions
face disruption of the project, and run legal for impacted assets around two key principles: respect to upgrade the community’s surrounding the resettlement, from
or reputational risks. Our policy is therefore 7. Construction of resettlement site for people and their environment facilities. We have thought the new the choice of site, to the house
to avoid or minimize the need to resettle design, paint selection, kitchen and
people. The community relations team
8. Moving house for and compliance with international site with solar street lighting and
washroom location and tree species
the resettled PAPs standards. a supply of drinking water. The new
ensures stakeholder consultation and mosque has three times the floor to be planted. Key decisions were
9. Final audit and evaluation RESPECT FOR PEOPLE area of the old one, with an added ratified by a resettlement
AND THEIR ENVIRONMENT minaret, a prayer area for women subcommittee composed of
and a small dwelling next door to representatives of the Boulounga
To make residents as comfortable village reporting to the Community
accommodate the occasional pilgrim.
as possible, the resettlement area Liaison Committee, which facilitated
The primary school, consisting of
was designed to reflect the familiar communications between the mine
two buildings of three classrooms,
layouts of the properties left behind and the community. A grievance
has a multipurpose sports area
by their residents. register was also put in place,
with a cement floor, and the seven
teachers’ houses are all be so residents could register
NUMBER OF PEOPLE NUMBER OF HOUSEHOLDS connected to the drinking water complaints to be addressed, even
RESETTLED (ESTIMATED) RESETTLED after the resettlement completion.
supply system.
77 ADHERING TO THE HIGHEST Consultations with the community
702 ITY CIL
PROJECT INTERNATIONAL STANDARDS identified early on the importance of
ITY CIL (projected) turning the resettlement into a local
PROJECT In line with our company policy,
(projected) employment opportunity. As a result,
the resettlement project was 67 of the 270 local workers hired to
1.182 197 conducted within the highest build the resettlement houses, were
HOUNDÉ international standards (IFC’s
MINE (actual) HOUNDÉ residents of Boulounga, while a total
88 MINE (actual) Performance Standard 5) and of 23 local businesses were
KARMA with the support of an contracted to build the washrooms,
479 1ST PHASE
MINE (actual) international resettlement kitchens and community services.
KARMA expert. Public consultations were
1ST PHASE The new mosque at the resettlement site.
MINE (actual)
SUSTAINABILITY REPORT 16 17 SUSTAINABILITY REPORT
OUR COMMUNITIES OUR COMMUNITIES
4 TRAINING AND EDUCATION FOR LOCAL
AND NATIONAL COMMUNITIES 5 SECURITY PRACTICES
In our countries of operation, access life-long learning opportunities, by running vocational training, entrepreneurship Security practices for the mining sector security practices and procedures for our
to education and literacy levels are low programs to improve the quality of training, agricultural training, construction consider potential risks to employees and firm. Standardized technological resources
and yet, there is a direct and indisputable education especially to the children of of classrooms and toilets, solar to community members, country risk profiles, such as access control and Closed Circuit TV
correlation between access to quality impoverished families through educational electrification and literacy training. and the protection of property and assets. system, deployment of specialized software Our objectives are to:
education and economic and social scholarships, building of schools and Our security teams serve to protect our and applications, drones, perimeter
development. The reasons for lack of quality improvement water and electricity access In 2018, we will focus more closely on employees and our investment. They play surveillance sensors and tracking systems › Respect the host nation laws, its
education are the lack of adequately trained to schools. supporting the emergence of dynamic an essential role in allowing us to operate have been deployed on all sites and are administrative procedures, and
teachers, poor conditions of schools and well-educated youth so they can in a safe environment and contribute being standardized. Those technological work locally with the police and
and equity issues related to opportunities In 2017, our community relations teams ran become tomorrow’s leaders. We will also to the security of the local communities systems aim to collect accurate information judiciary system
provided to rural children. We therefore 18 community education projects, impacting concentrate on improving the competencies and populations. on possible security issues and to limit the › Identify the risks and threats with
support SDG 4: Ensure inclusive and approximately 7,330 individuals, through and employability of the communities risk of violence to the lowest possible level. enough prior-warning to address
equitable quality education and promote activities such as scholarships, prizes, around our mines. Our site Security Managers and their teams the issues and put in place
as well as private security contractors and Our security personnel is trained in human mitigation measures
national security forces (police, gendarme rights as it is important for us to ensure their › Use responsible security forces
and military) on our operational sites are appropriate conduct towards third parties either public or private trained on
ADULT LITERACY overseen by the General Manager and the therefore all sites conducted human rights UN Voluntary Principles on Security
(% OVER 15 YEARS OLD) Senior Vice President (“SVP”) Security. policies and procedure training. and Human rights (“VPSHR”) by an
The gendarmes, police and military independent and recognized actor
CONSTRUCTION OF INFRASTRUCTURE who reinforce security on our sites remain
D’IVOIRE
In 2018, we aim to train all our own security
CASE accountable to their national chain › Always resolve conflicts with the
BURKINA
AND SUPPLY OF EQUIPMENT FOR personnel training on human rights using
CÔTE
STUDY of command and operate closely with our lowest possible violence, in
the most appropriate methods, like on-line,
MALI
FASO
THE EDUCATION SECTOR IN TABAKOTO security personnel through a mechanism formal and hands-on training, delivered
particular by advising government
security forces and controlling
of Memorandums of Understanding signed by recognized, internal or independent,
with the national authorities. The SVP private contracted forces
actors with a proven record on the subject,
Part of the education process is diminished. As part of Tabakoto Security has authority to manage all and to train all security personnel on VPSHR.
having pride in your school, mine’s sustainable
which encourages students development strategy
to want to learn and stay in at the local level, the mine
school. So, when the has invested in education to
All sites conducted VPSHR training the following results :
36% 39% 43% classrooms are in poor shape, improve the teachers’ working
or when they are not well- conditions, the enrolment
410-1 SECURITY PERSONNEL TRAINED IN HUMAN RIGHTS POLICIES OR PROCEDURES
equipped and lack tables, capacity and the quality of
benches and blackboards, school education for children in
POPULATION WITH Data for 2017 Endeavour Operations
SECONDARY EDUCATION the learning experience is the nearby communities.
(% OVER 25 YEARS) Number of security personnel
In 2017, we carried out the
Number of Endeavour Mining employees who act as security personnel
D’IVOIRE
construction of three ("own security personnel")
202
classrooms, a management
CÔTE
office and latrines for each Number of employees by third-party organizations providing security services for
668
Endeavour Mining (“third-party security personnel")
of the primary schools of
Balabougou in Kenieba and Percentage of security personnel who received training in human rights
in the village of Kofi. Percentage of own security personnel who have received formal training in the
organization’s human rights policies or specific procedures and their application to 72.2%
security
The keys were handed over
MALI
BURKINA
to the school directors Percentage of third-party security personnel who have received formal training in the
FASO
organization’s human rights policies or specific procedures and their application to 27.5%
and administration teams security
in November 2017.
9% 12% 25%1
1_ http://hdr.undp.org/en/countries/profiles
SUSTAINABILITY REPORT 18 19 SUSTAINABILITY REPORTOUR COMMUNITIES OUR COMMUNITIES
6
This economic value generated by the company is distributed as detailed in the next table:
CLOSURE PLANNING 201-1 DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED
(in US$ million) 2017
We recognize that the successful closure are met, conduct projects that could benefit revegetation of waste dumps and rock piles, Direct economic value generated (A)
of a mine is important to our host countries communities, and restrict mine access decontamination of old leach pads, cyanide Gold revenue US$ million 652
and communities. Our closure planning is to possible illegal artisanal miners. circuit and ponds, spreading top soil
Economic value distributed (B)
guided by each host country’s legislative on ground for local communities, and camp
requirements and international standards. All operational sites except the Tabakoto and haul road handover to local authorities. Operating costs US$ million
365
Furthermore, we believe that it is Mine have formal closure plans (80%) Employee wages and benefits US$ million
important to integrate mine closure plans although Tabakoto has a cost closure
> taxes on salaries paid to gvts and declared in ESTMA report US$ million -34
from the very start to reduce its impacts estimate with a description of activities.
on the community and manage The Kalana project also has a closure plan. WE PLAN FOR Payments to providers of capital US$ million 20
our financial liabilities. We update closure plans on an annual basis. CLOSURE AT THE VERY
> dividends payed already included into the ESTMA report US$ million -5
The plans take into consideration START OF
At mine closure stage, we believe that it is the dismantling of infrastructures THE OPERATION Payments to government US$ million 112
important to eliminate any health and safety and equipment, the decommissioning
Payments to government: Côte d'Ivoire US$ million 45
concerns that communities could be of the process plant and the environmental
exposed to, ensure all legal requirements aspects of closure. Activities include Payments to government: Burkina Faso US$ million 19
Payments to government: Mali US$ million 49
Economic value retained (C) = (A) - (B)
Economic value retained US$ million 192
8 SUSTAINABLE
AND LOCAL PROCUREMENT 15%
7 ECONOMIC
PERFORMANCE We seek to utilize our supply chain and
procurement to multiply our positive impact
All operational sites have a procurement
policy on the purchase of goods and
REVENUE INCREASE
IN 2017 VS. 2016
on local, regional and national economies. services that encourages mine sites
We view our economic performance as a Our goal is to increase local procurement to give priority to local suppliers, provided
driver for responsible mining. To enable us as it boosts the local economy, strengthens they are competitive. “Competitive” refers
to operate responsibly and to contribute to local businesses, and creates indirect to the total cost, delivery, and quality
long-term positive impacts in the regions employment. of the good or service. A corporate procurement policy will be
where we operate, we need sustainable EITI session in Houndé.
adopted in 2018, which iterates our
economic performance. The indirect economic benefit that a mining The challenge we face is that purchasing commitment to the integration of
company can bring through local and national needs to make commercial sense sustainable local economic development
In 2017, we showed a strong performance as Through their at least 10% free-carried to the Canadian government on a country procurement is important for governments. in comparison to international supply into its business activities and the
our revenues increased by 15% compared interests, our host countries have a strong and project basis, as required under the In addition, local communities have high alternatives and critically important integration of local suppliers of goods and
to 2016. For the fifth consecutive year, alignment with our interest as the also Extractive Sector Transparency Measures expectations concerning opportunities is the quality assurance, undisrupted services into our procurement network.
we met both production and AISC cost benefit from potential dividends in addition Act (“ESTMA”)1. that a mining project brings. It may also be supply and lead-time of supply, which The regional supply chain team will be
guidance. From the $652 million of revenues to taxes and royalties. Our host countries are favourable for mining companies to purchase is often a challenge at local level. regularly monitoring site compliance
generated in 2017, $151 million were paid Extractive Industries Transparency Initiative goods and services from local communities Where two suppliers are considered equal, with this policy and assisting the site
to the governments in the form of taxes, (“EITI”) compliant and all our payments to maintain good relations and potentially the local supplier should prevail. teams to develop initiatives to encourage
dividends, and royalties. to governments for 2017 are reported lower supply chain costs. local procurement.
1_ https://s21.q4cdn.com/954147562/files/doc_downloads/2018/ESTMA-2017-E785212-ENDEAVOUR-MINING-CORPORATION.pdf
SUSTAINABILITY REPORT 20 21 SUSTAINABILITY REPORTOUR COMMUNITIES OUR COMMUNITIES
In 2017, we had over 12,000 suppliers and
spent nearly $250 million on local suppliers
representing approximately 26% of the
procurement annual budget. We support
relations teams, procurement team
and local businesses, special effort
to implicate local businesses
and associations during construction
PROCUREMENT BY A MINING
OPERATION IS OFTEN THE SINGLE
LARGEST POTENTIAL ECONOMIC
9 ECONOMIC
DEVELOPMENT
INITIATIVE
local businesses in various ways: capacity of camps and resettlement sites.
IMPACT IN A HOST COUNTRY,
building in administration and finance, AHEAD OF TAXES, WAGES Our goal is to accelerate and promote local
entrepreneurship training, regular AND COMMUNITY INVESTMENT economic development to create a
consultations between the community COMBINED sustainable long-term impact. While we
already run several initiatives, promoting
healthcare, agricultural improvement, water
access and education, we believe there is
204-1 PROPORTION OF SPENDING ON LOCAL SUPPLIERS
more that we can do to boost the wider local
Procurement budget spent
economies where we operate. As such, in
OPERATIONS AGBAOU ITY HL TABAKOTO HOUNDÉ KARMA PROJECTS 2018 we plan on launching an economic
on local suppliers
development fund to support local economic
Total spent on procurement USD 958,193,030 109,636,689 48,568,846 494,630,462 181,994,628 123,362,406 45,554,776
development of countries by funding and
Total spent to local suppliers USD 248,287,668 41,196,887 32,301,402 31,913,310 69,022,608 73,853,460 11,438,195 promoting small businesses.
Percentage of the procurement
% 25.9% 37.6% 66.5% 6.5% 37.9% 59.9% 25.1%
budget that is spent on local suppliers1 The programme builds on our existing
1_ «local» is defined as any company that is registered in the country of operation and/or paid in CFA.
initiatives with a mission to identify and
support local business that can provide
long-term employment and self-sustaining
wealth creation within West Africa.
Under the programme, Endeavour and its
largest shareholder La Mancha will work
with other partners to invest in projects,
MAÏMOUNA AÏDHARA, CASE
which are economically viable in the long
CEO OF ANNE-JO STUDY
term, independent of the mining activity,
respectful of the environment and have
the potential to have a significant positive
Maïmouna Aïdhara was born into a soon, she became the main channel impact on the greatest number of people.
modest family. She comes from one between the heavy equipment
a small village of approximately demands of the mine for Management of each project will be led by
1,000 inhabitants, in the area of our construction equipment needs and classM, a company specializing in economic
development in Africa, with a successful Women of Kalana collecting shea almonds.
Ity mine. Growing up, she did not machinery rental companies. Her
have access to secondary education strength relied on her ability to track record of managing and supporting
and she became a builder. Today, complete and deliver work on time. similar projects. The aim is to create
she runs a company called Anne-Jo, In 2017, when we met her, we successful and sustainable businesses
and provides services, linked to the entrusted her with the reprofiling of that will in time allow Endeavour to exit
construction industry, which is the the national road linking Danané to its investment and redeploy its capital
most significant in the area. She Zouan Houien, which she managed into new ventures. This initiative aims to:
decided to start her business more from start to finish. Since then, › Support direct and indirect job and
than a decade ago. At the time, she Maïmouna’s company has acquired a wealth creation locally (around our
decided to base her business model larger market presence in the operation sites) and nationally
on a network approach. And her construction industry and she has
› Have a sustainable impact
approach proved successful as very diversified her customer portfolio.
› Rely on available natural and
human resources (around
operating sites and in the countries
of operation) and respond to the
need of local people and with an
identified market
› Showcase African entrepreneurship
SUSTAINABILITY REPORT 22 23 SUSTAINABILITY REPORTOUR We are committed to excellence and
strive to develop our local talents
with continuous training and evaluations
EMPLOYEES
with the goal of promoting our people
internally.
Our long-term goal is to hire over 90%
of our workforce directly from the country
in which each of our operations is located,
to support the development of our host
country. We actively promote gender
equality and empower our female talent
We believe that developing our people and with the objective of accelerating
individual and collective sustainable
culture is a competitive strength and development. Mining programs are
critical to our current and future success. implemented on our sites to widen
access to employment opportunities in
the mining sector.
1. Employment and labor relations — 26 As an important employer at our sites
2. Skills transfer and training — 28 of operation, we align with the SDG 8:
3. Diversity and equal opportunities — 30 Decent Work and Economic Growth,
to create the conditions that allow people
to have quality jobs that stimulate the
economy, with a focus on empowering
women in line with SDG 5:
Gender Equality.
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