Climate Change Data

Nord Gold N.V.

Climate Impact & Sustainability Data (2013)

Reporting Period: 2013

Environmental Metrics

ESG Focus Areas

  • Safety performance
  • Operational efficiency
  • Responsible mining and sustainable development
  • Community engagement
  • Employee engagement
  • Environmental management

Environmental Achievements

  • Implemented formal environmental management systems at all operations
  • Continued revegetation programs at African operations
  • Internally assessed operating practices for compliance with the International Cyanide Code

Social Achievements

  • Launched Bissa mine with exemplary safety record (one minor lost time injury)
  • Improved LTIFR by 15% (1.51 vs 1.77 in 2012)
  • Invested US$155 thousand in supporting local communities
  • Implemented a saponification (soap-production) project creating income-generating activities for women
  • Implemented a market gardening project providing consultative and technical assistance to local farmers

Governance Achievements

  • Strengthened senior management operating team
  • Introduced quarterly interim dividend payment
  • Adopted a Corporate Code of Ethics and Business Conduct Standard
  • Adopted an Anti-Bribery and Corruption Policy
  • Established a whistleblowing policy with an independent international telephone hotline

Climate Goals & Targets

Medium-term Goals:
  • Target production of over 1 Moz of gold by 2017 (Gross project)
Short-term Goals:
  • All operating mines to become free cash flow positive in 2014
  • Achieve LTIFR of 1.36 in 2014
  • Zero fatalities in 2014

Environmental Challenges

  • Challenging year for the gold market (gold price dropped nearly 16%)
  • Unplanned maintenance at Taparko mine
  • Lower ore tonnes mined at Lefa
  • Lower ore mined grade at Suzdal
  • Grade reduction of ore mined at Buryatzoloto
  • Two fatalities
  • Malaria prevention and treatment at African mines
  • Political instability, crime and corruption in operating regions
  • Poor relationships with local communities
  • Economic instability in operating regions
Mitigation Strategies
  • Implemented cost-savings initiatives (Business System of Nordgold, BSN, saved over US$80 million)
  • Metallurgical initiatives to improve plant performance at Taparko
  • Turnaround programme at Lefa mine (detailed geological model, capital repairs, conveyor system upgrade)
  • Modernising production processes and upgrading equipment at Buryatzoloto
  • Thorough investigation of fatalities and implementation of preventative measures
  • Comprehensive measures to ensure employee and community health (malaria control programs)
  • Maintaining stable relationships with governments and regulatory bodies
  • Focusing on long-term relationships with local communities
  • Using deposit and borrowing facilities at best-market terms and regularly revising capital project plans

Supply Chain Management

Responsible Procurement
  • Using a tender process for all suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1 Guidelines and Metals and Mining Sector Supplement, International Integrated Reporting Standard, IFRS

Certifications: OHSAS 18001:2007

Third-party Assurance: Deloitte (financial data only)