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Primero sustainability report 20121
BUILDING
sustainable value
Sustainability Report 2012
Primero sustainability report 20122
We at Primero are proud to present our second annual
Sustainability Report1
, which highlights our achievements
and challenges in 2012, our second full year
operating the San Dimas mine.
contents
Cover Photo: Jaiden, daughter of Rosenda and Enrique, Miner at San Dimas Mine celebrating Christmas 2012
1	The 2010 Sustainability Report reported on the five months in 2010 that followed Primero’s acquisition of the San Dimas property. All currency is in United States
dollars (USD) unless otherwise noted.
Building our Communities	 20
Protecting the Environment	 26
In Closing	 33
GRI INDEX	 34
CORPORATE DIRECTORY	 37
About This Report	
1
Letter from the President and CEO	 5
Ethical, Transparent Governance	 6
Building Primero Value	 9
Building our People	 12
Primero sustainability report 2012 1
we at Primero are proud to present our
second annual Sustainability Report,
which highlights our achievements
and challenges in 2012. This was our second full year
operating the San Dimas mine in Mexico, since acquiring
it in August of 2010 from Goldcorp Inc., a company with
established and respected sustainability practices.
After a record year in 2012, in terms of financial and
operational performance, Primero is on track toward our
goal of building sustainable value: becoming a multi-mine,
intermediate precious metals producer, while always
supporting sustainable policies and practices in mine
exploration, development and operations. Corporate
responsibility is embedded into our daily activities. Our
goal is to continuously improve workplace health and
safety and environmental performance, while sharing the
benefits of mining with our local communities.
A key component of our commitment is transparent,
accountable sustainability reporting. Our Board of
Directors and senior management team are committed
to the sustainability reporting process and are working
to improve data collection and encourage employee
engagement in all of our sustainability initiatives.
Economic performance is not emphasized in this report:
as a public company, our financial results are audited
annually and reported on a regular basis, and our Annual
Reports, Financial Reports and Regulatory Filings are
posted on our website.
This report covers the period of January 1 through
December 31, 2012. Its content is guided by common
principles in sustainability reporting in our industry,
and the best available data, as reported by the San
Dimas mine. In 2013, the Company will begin internal
assessments of materiality, and over the medium term
we will broaden these discussions to include various
stakeholder groups. The 2011 Sustainability Report was
published in May of 2012, and we will continue to report
on an annual basis.
about this report
Primero sustainability report 20122
This report primarily discusses the Company’s operations
at the San Dimas mine in Mexico. The Cerro del Gallo
property is not discussed, as the acquisition of the project
is still in progress. To serve the Company’s growth, the
Toronto office moved in 2012. The environmental and
broader sustainability impact of this office, along with
those of Primero’s Vancouver and Mexico City offices,
had little effect on Primero’s overall impacts as they are
business offices, not mining or exploration properties.
As such, the offices’ energy consumption data are not
included in the environmental data. This report is based on
data collected in 2012, and does not re-state information
provided in earlier reports. There are no significant
changes from previous reporting periods in the scope,
boundary, or measurement
methods applied.
For any questions regarding this report or its contents
please contact us at sustainability@primeromining.com.
GRI DECLARATION
This report is based on the standards of the Global
Reporting Initiative (GRI), and represents Primero’s first
Sustainability Report to attain a GRI G3.1 level C standard
of sustainability reporting. The GRI is an independent
institution that has developed voluntary guidelines
for sustainability reporting. We believe that the GRI
reporting guidelines help us to maintain a high standard
of transparency, clarity and comparability, and that
applying GRI standards demonstrates our commitment to
transparent reporting, especially in those categories that
are most important to our stakeholders. A GRI Index can
be found at the back of this report on page 34-35.
MANAGEMENT APPROACH TO
SUSTAINABILITY
At Primero, we believe that sustainability is
fundamental to our success. Our prosperity depends
Primero sustainability report 2012 3
on our performance – at the corporate level and in our
relation to our host communities – in the three pillars
of sustainability: economic achievement, community
engagement and environmental stewardship.
ECONOMIC ACHIEVEMENT
By maximizing earnings and reducing operating costs,
we produce results for our shareholders while also
contributing to the economic and social development of
our host communities. Only by creating value and sharing
it among shareholders and host communities, can we
sustain our company over the long term.
COMMUNITY ENGAGEMENT
We actively engage in meaningful dialogue with local
residents, community leaders and organisations to
identify opportunities and priorities for economic
improvement, better training and social development.
We support schools, health care and local infrastructure,
and we continually seek development opportunities
that will contribute to a self-sustaining economy in the
communities surrounding our operations.
ENVIRONMENTAL STEWARDSHIP
At all times, we seek to operate in a responsible manner
and to mitigate the impact our operations may cause to
the environment. We operate with an awareness of the
mine’s life cycle and practice the progressive rehabilitation
of areas affected by our activities.
OUR STAKEHOLDERS
This report is written for Primero stakeholders, including:
Employees and their families,
Our host communities,
Legislators and government officials,
Shareholders, investors and financial analysts,
 Civic, special-interest and non-governmental advocacy
organisations (NGOs).
These groups are generally accepted as key stakeholders for
sustainability reporting, and we engage with them through
our AGM, community meetings, website and a dedicated
email address. In the future, as we improve our processes for
materiality in sustainability reporting, we will be engaging in
formal exercises to refine our definition of stakeholders and
survey their reporting needs.
We invite sustainability-related comments and
suggestions at our dedicated email address:
sustainability@primeromining.com.
4 Primero sustainability report 2012
Our share price at the end of 2012 was 97% higher than
at the end of 2011. Backed by this success, we are
entering a phase of expansion in size,
diversity and production.
Primero sustainability report 2012 5
or Primero, 2012 was a record year for revenues,
cash flow and reserve growth. This was reflected
in our share price, which finished the year 97%
higher than at 2011 year end. Backed by this success, we
are entering a phase of expansion in size, asset diversity
and production.
At the San Dimas mine, newly discovered reserves helped
support the mill expansion, which is well underway. In
addition, we are also headed to becoming a two-mine
company: we have nearly completed the acquisition of
a new, potentially game-changing property, the Cerro del
Gallo project.
Along with this growth comes the obligation to
maintain, and continuously improve, our track record of
sustainability. We believe that we can only thrive when we
act with responsibility, transparency and accountability
toward our local communities. We share in the benefits of
mining and expend considerable effort in protecting the
health and welfare of our people, the economies of the
communities in which they live, and the environment that
sustains us all.
Last year I stated two safety objectives: first, to continue
our year-on-year decline in accident frequency – which
we accomplished. The second is still underway: I want
San Dimas to become a “triple-zero” operation by 2014:
zero fatalities, zero lost-time accidents and zero staff on
modified duties. However, despite the emphasis we place
on safe work practices and training, a tragic accident
resulted in a fatality at the San Dimas mine. In response,
we commissioned a complete overhaul of our safety
procedures, followed by a safety retraining program for
the entire workforce.
Investors are increasingly concerned with the sustainability
practices of mining companies. A lack of dedicated
commitment to sustainability is seen as a proxy for
increased risk. Throughout the mining industry, climate
change and water availability present significant
challenges. We continually seek new strategies for
minimizing our use of water and improving our overall
environmental performance. Last year, I stated that I
expected San Dimas to achieve the Mexican government’s
“Clean Industry” Certification every year starting in 2012.
The certification audit took place this year, and every
one of the auditor’s comments was addressed. Recently
Primero was granted the “Clean Industry” Certification.
I would like to take this opportunity to thank Primero’s
employees for the hard work and dedication that made
this possible. I’m also proud to recognize our well-trained,
professional mine rescue team, who took home first
place in this year’s Rescue Brigade Competition held in
Durango City.
Our sustainability policies continue the high standards that
were originally established by the mine’s previous owner,
Goldcorp. These standards have earned us the coveted
“ESR” designation (in English, “Socially Responsible
Enterprise”), for the second consecutive year. As we move
forward, as a two-mine company, we intend to expand our
sustainability team, and work toward defining a company-
wide sustainability framework.
In measuring and reporting on our performance, we strive
to follow generally accepted international standards - in
financial reporting, health and safety reporting, and in this
report itself, which is the first Primero Sustainability Report
to meet the standards of the GRI 3.1 level C. This was a
target that was established last year, and I am pleased
to say that this report meets those criteria. This report is
guided by common principles in sustainability reporting
in our industry, and the best available data as reported by
the San Dimas mine. In 2013 we will begin implementing
a materiality process with an internal assessment of
materiality (or determining what is important to our
stakeholders). Over the medium term we will broaden the
discussions to include various external stakeholder groups.
This is a long-term goal, aimed at building a culture of
continual improvement in sustainability throughout a
growing Primero.
Letter from the President and CEO
Joseph F. Conway,
President and CEO
F
Primero sustainability report 20126
S
ustainability is an integral component of our
company-wide strategy. Our established
sustainability program guides us in policy and
decisions regarding environmental protection, the
health and safety of our people, and the socio-economic
development of our host communities. We are committed
to embedding sustainability in all our daily actions. Our
goal is to continuously improve workplace health and
safety and environmental performance, and to share the
benefits of mining with local communities.
In 2013, as we become a two-mine company, we will
be expanding our sustainability team and program, and
working toward defining a company-wide sustainability
framework that will guide us in standardizing sustainability
practices across all operations.
We strive to maintain our well-established safety-focused
culture among our employees, contractors and visitors.
This includes continually improving working conditions
and conserving the health and physical safety of all our
employees. It extends to preserving the environment
and safeguarding the health of the inhabitants of the
communities in which we operate, who in the future could
become our employees.
CODE OF BUSINESS CONDUCT AND ETHICS
Our operating practices are governed by the principles set
out in our Health and Safety Policy and our corporate Code
of Business Conduct and Ethics. The Code is applicable
to all directors, officers and employees. It embodies the
commitment of Primero and our subsidiaries to conduct
business in accordance with all applicable laws, rules
and regulations and the highest ethical standards. The
complete Code of Business Conduct and Ethics is available
in the Corporate Governance section of the Primero
website (www.primeromining.com).
HEALTH, SAFETY AND
ENVIRONMENT COMMITTEE
Sustainability practices are the responsibility of the Board
of Directors and the Health, Safety and Environment
Committee (HSEC). The purpose of the HSEC is to
review and recommend corporate policies and programs
and monitor activities as they relate to health, safety,
environment and social matters affecting communities
where the Company conducts operations. The HSEC
reports to the Board. Two out of the three gentlemen on
the HSEC are independent members of our Board, the third
is Joseph Conway, President and CEO, two HSEC members
are over 50 years of age and two are Canadian nationals
while the third is a Mexican national.
Our internal weekly and quarterly reporting tracks key
HSEC performance indicators, including human resources,
health and safety performance, environmental monitoring,
compliance with permits, materials inputs and outputs,
and community relations activities. The complete
HSEC guidelines are available on the Primero website
(www.primeromining.com).
We invite HSEC-related recommendations or direction
from shareholders, employees or other stakeholders at
our dedicated email address:
sustainability@primeromining.com. In the future, we
hope to develop a process for shareholder resolutions, or
other mechanisms, to give minor shareholders a way to
offer their opinions. We also hope to develop a process
for informing and consulting employees about working
relationships, with formal representation bodies such
as organisation-level ‘work councils’, and employee
representation in the HSEC.
HUMAN RIGHTS
Primero respects internationally proclaimed human rights,
and strives to ensure that we are not complicit in human
rights abuses.
Ethical, Transparent Governance
Primero sustainability report 2012 7
COLLECTIVE BARGAINING
AND FREEDOM OF ASSOCIATION
All Primero workers enjoy the right to freedom of
association as provided by applicable labour law. The
San Dimas mine has a trade union, and at the end of
2012, approximately 11.5% of San Dimas employees were
covered by a joint committee, and 45.6% of San Dimas
Employees were unionized. We do not believe that the
right to exercise freedom of association and collective
bargaining is at risk at any Primero location.
WORKPLACE DIVERSITY,
NON-DISCRIMINATION AND EQUITY
At Primero, we do not discriminate on the basis of race,
religion, ethnicity, national origin, colour, gender, age,
sexual orientation, citizenship, veteran status, marital
status or disability. Harassment, including sexual, physical
and verbal, is prohibited. We do not allow forced or
compulsory labour.
We do not allow child labour, as defined by the
International Finance Corporation (IFC) as “work by
children that is economically or likely to be hazardous or
to interfere with the child’s education, or to be harmful to
the child’s health or physical, mental, spiritual, moral, or
social development”. Primero will not knowingly employ
a person who is under the legal age of employment,
or where that employment would contravene the IFC
definition of child labour. There were no incidents of child
labour reported to the Company in 2012, nor were any
operations considered to have significant risk for incidents
of child labour.
COMPLIANCE WITH LAWS AND REGULATIONS
In 2012, there were no legal actions taken against the
Company for anti-competitive behaviour. There was no
form of non-monetary sanction taken against the site
during the reporting period.
Two fines were filed against the Company in 2012, both
relating to a tailings spill that occurred, due to a broken
pipe in the Cupias tailings dam (see the Environment-
Tailings section of this report for details). As a result,
PROFEPA (the Mexican environmental authority, the
Procuraduria Federal de Proteccions al Ambiente)
issued recommendations and Primero took a number of
corrective actions. CNA (the water authority, Comisión
Nacional del Agua) fined Primero $93,500 pesos, which
the Company promptly paid. PROFEPA also notified the
Company of a $31,200 peso fine, which Primero has filed
a motion seeking to void. At the time of printing, this issue
had not been resolved.
WHISTLEBLOWER POLICY
Our corporate Whistleblower Policy allows any employee
to communicate a concern or complaint confidentially and
anonymously, with the expectation of a timely response
and the assurance that there will be no retribution or
negative consequences. We provide a confidential email
address (reportline@primeromining.com) and a toll-free
complaint reporting hotline (1-877-508-5716) which is
available 24 hours a day, 7 days a week.
8 Primero sustainability report 2012
111,132GOLD EQ OZ PRODUCTION
1,980TONNES/DAY THROUGHPUT
660,000OUNCES OF GOLD RESERVES
$636CASH COST/GOLD EQ OZ
Primero sustainability report 2012 9
Building Primero Value
P
rimero is a Canadian-based company with
headquarters in Toronto and offices in Vancouver
and Mexico City. The company has one operating
mine, the San Dimas Mine, in Mexico’s San Dimas district,
and one exploration property, Ventanas, in Durango State,
Mexico. Most of the data in this Sustainability Report
relates to our Mexican operations, but our corporate
offices are included where relevant. In December 2012,
Primero announced an agreement to acquire all issued
and outstanding common shares of Cerro Resources NL.
At the time of publication, this deal had not closed and
as such, the Cerro del Gallo property is not covered in
this report.
TABLE 1. SAN DIMAS FACTS
Ownership 100% Primero
Location
State of Durango (central west Mexico)
approximately 150 km west of Durango and 125 km northeast of Mazatlán
Description
Gold-silver deposit
Underground mine, using mechanized cut-and-fill mining methods
2012 Production Gold equivalent* 111,132 ounces
Gold 87,900 ounces
Silver 5.13 million ounces
2012 Staff Employees 1,274
Contractors 117
% Union members 45.6%
% Mexican 100%
*Gold equivalent ounces include silver produced and converted to a gold equivalent, based on average commodity prices received in the period.
During the reporting period, there were no significant changes in the size, structure, or ownership of the mine.
Primero sustainability report 201210
Greater detail on the Company’s and mine’s revenues, production, customers and markets is included in the Annual
Report, which is available on Primero’s website: www.primeromining.com.
TABLE 2. DIRECT ECONOMIC REVENUE GENERATED IN 2012
Direct economic value generated
a) Revenues $182,939,000
Economic value distributed
b) Operating costs (goods and services) $38,569,645
c) Employee wages and benefits $28,683,336
d) Payments to providers of capital $19,074
e) Payments to governments (Mexico) $591,633
f) Community Investments $826,089
Economic Value retained $114,249,223
Durango
Guanajuato
Durango
Province
San Dimas
Gold-Silver Mine
Toronto Office
Vancouver
Office
Ventanas
Exploration Property
Mazatlan
Mexico City
Office
Cerro del Gallo
Gold-Silver-Copper
Development Project
Guanajuato
Province
Primero sustainability report 2012 11
At Primero, we believe that sustainability is fundamental to
our success. Our prosperity depends on our performance -
at the corporate level and in our relation to our host
communities - in the three pillars of sustainability: economic
achievement, community engagement and
environmental stewardship.
Primero sustainability report 201212
O
ur people are our most valuable asset, and we
treat people fairly and without discrimination,
with full regard for their human rights. We know
that our success depends on the efforts of skilled, hard-
working people, and in return we provide ongoing safety
and rescue training, and strive to maintain a safety-aware
work culture in which everyone is continually reminded
of the importance of keeping themselves and their
colleagues healthy and injury-free.
HEALTH AND SAFETY
Our commitment to safety, health and welfare includes
our employees, contractors and the visitors to our site,
and extends to everyone in nearby communities. In
2012, tremendous effort was spent on improvements to
the mine’s health and safety management system, and
on improving the safety and security behaviour of our
staff, through education and training, and refinements
to policies and procedures that promote safety.
HEALTH AND SAFETY GOVERNANCE
At the San Dimas mine, we operate a number of
committees and groups whose purpose is to maintain a
safety-first culture and monitor safety performance.
Central Safety  Security Committee is a Formal Health
and Safety Committee that guides our Health and Safety
Administration system. The committee is chaired by
the mine’s General Manager and includes operations
and services superintendents (permanent members)
and area heads, supervisors and employees (temporary
members). The committee meets on a monthly basis to
discuss potential risks and preventive measures, and to
choose a safety “employee of the month”.
Documentary System Subcommittee is an 18-member
subcommittee that has joint management/labour
representation and defines safety-related work
procedures and instructions.
Building our People
Primero sustainability report 2012 13
We know that our success depends on the efforts of
skilled, hard-working people, and in return we provide
ongoing safety and rescue training, and strive to maintain a
safety-aware work culture in which everyone is continually
reminded of the importance of keeping themselves and their
colleagues healthy and injury-free.
Primero sustainability report 201214
Preventive Observations Sub-Committee detects
unsafe acts and conditions and follows up until they
are corrected. In 2012, 4,588 individual “Preventative
Observations” were reported and corrected. There were
also 11 tours of operational areas by multi-functional
groups. Their submitted observations were followed
by 82% verified compliance. This committee is at the
facility level or higher.
Prevention Circles have been formed at San Dimas
to develop accident prevention solutions related to
rock fall. These groups help monitor and advise on
occupational safety programs.
Accident  Incident Investigation Sub-Committee
analyzes and investigates events of potential risk. In 2012,
thirteen incident and accident investigations took place
and several meetings were held to improve processes and
follow-up on recommendations. Seventy eight percent
compliance with recommendations was observed.
COMPLIANCE WITH STANDARDS
Primero participates in a Self-Management Program on
Health  Safety in the Workplace, in compliance with
the Mexican Secretariat of Labour  Social Welfare
(Secretaría del Trabajo y Previsión Social). The results of
the Secretariat’s evaluation in 2012 were:
Health  Safety in the Workplace Management System:
97.3% compliant
Health  Safety in the Workplace Standards:
95.8% compliant
HEALTH AND SAFETY PERFORMANCE
The mining industry recognizes the dangers inherent in
the type of work we do. Accordingly, we place enormous
emphasis on safe work practices and training – efforts
which have resulted in a steady year-on-year decline in
overall accident frequency.
Primero sustainability report 2012 15
However we regret to report a tragic accident that resulted
in a fatality at the San Dimas mine in 2012. We responded
by commissioning a complete overhaul of our safety
TABLE 3. INJURY FREQUENCY
Injury Type 2011 2012
Lost time injuries 3 6
Total reportable injuries 27 20
Significant potential incidents 65 42
Fatalities 1 1
Lost Time Injury Frequency Rate (LTIFR*) 0.18 0.36
All Injury Frequency Rate (AIFR**) 1.84 1.5
* LTIFR is the number of lost-time injuries per 200,000 hours worked. (Lost-Time Injuries x 200,000 hours) ÷ Total Hours Worked
**	AIFR is the number of all injuries per 200,000 hours worked.
Includes employees and contractors at all sites and corporate offices as well as the corporate exploration team.
procedures, followed by a safety retraining program for
the entire workforce. Our objective is to become a zero
harm operation.
We seek to be recognized as an employer of choice by offering
competitive wages, above-average benefits, as well as by
preferentially hiring locally and recognizing and rewarding
employee performance.
Primero sustainability report 201216
EMERGENCY RESPONSE
The San Dimas mine has a history of strong emergency-
preparedness practices, and maintains a specially-trained
rescue team, that is trained and equipped to handle nearly
any type of emergency that could occur in an underground
mine. Rescue team members receive specialized training
in first aid, mine rescue and rope rescues including
rappelling and vertical rescue.
The San Dimas rescue team won first place in the Mine
Rescue and Bench Test during the Rescue Brigade
Competition held in Durango City. This is the seventh
year in a row in which our team has won recognition
for outstanding performance in national and regional
competitions.
HEALTH PROTECTION AND TRAINING
In addition to injury prevention, the San Dimas mine’s
Integral Safety System is intended to improve the
health and welfare of our workers, their families and the
surrounding communities. The system seeks to identify
and prevent sickness through ongoing monitoring and
check-ups, including:
Preventive programs for disease detection
Epidemiological disease-detection programs for all
employees exposed to noise, dust, hazardous chemical
substances, etc
Biological  environmental monitoring
Annual medical exams
Anti-doping and alcohol tests for workers
This is the seventh year in a row in which the
San Dimas rescue team has won recognition for outstanding
performance in national and regional competitions.
Primero sustainability report 2012 17
TABLE 4. STAFF BREAKDOWN
Location Full-Time employees Hourly (Union) Contractors Women Men Total
Mexico City Office 10 0 0 4 6 10
San Dimas Mine 576 581 117 115 1,159 1,274
Vancouver Office 3 0 3 4 2 6
Toronto Office 13 0 0 5 8 13
Total 602 581 120 128 1,175 1,303
San Dimas maintains on-site hospital facilities with x-ray,
ultrasound, a surgery room and clinical lab, which are
available for all employees and contractors. To the best
of the Company’s knowledge, there were no workers who
are involved in occupational activities who have a high
incidence or high risk of specific diseases.
A monthly safety campaign focuses on a specific topic.
The campaigns include awareness talks, training courses
and revision of standards. Topics have included among
others: lock out – tag out, defensive driving, safety in work
at heights and safe handling of sodium cyanide.
MANAGEMENT APPROACH TO LABOUR
PRACTICES
Throughout Primero we foster a culture of inclusivity
and acceptance of gender, race, cultural background,
age, religion and disability. We are committed to fair and
equitable labour practices in every operation and office.
Nearly half (45.6%) of our mining workforce is unionized.
In this traditional mining region, and everywhere we
operate, we seek to be recognized as an employer of
choice by offering competitive wages, above-average
benefits, as well as by preferentially hiring locally and
recognizing and rewarding employee performance.
TABLE 5. LOCAL SENIOR MANAGEMENT*
Number of Senior Managers 17%
Percent who are local residents
(Naturalised citizens or
permanent visa holders)
99%
* Senior management is defined as Superintendents, Managers, and
General Manager.
REGIONAL HIRING
76% Durango state
9% Sinaloa state
6% Zacatecas state
8% Guanajuato state
1% Otros state
Primero sustainability report 201218
HEALTH AND SAFETY AGREEMENTS
Many employment positions at the San Dimas mine are
unionized, which includes health and safety agreements.
The following health and safety topics are covered by local
agreements signed by Primero:
Personal protective equipment
Joint management-employee health and safety
committees
Participation of worker representatives in health and
safety inspections, audits, and accident investigations
Training and education
Right to refuse unsafe work
Periodic inspections
TABLE 6. EMPLOYEES COVERED BY JOINT
HEALTH AND SAFETY COMMITTEES
Number of employees 1,274
Employees covered by joint agreements 147 (11.5%)
WORKER AND MANAGEMENT TRAINING
Primero runs an annual training program for
superintendents, area managers, supervisors and workers.
The training is developed based on the needs of each
department and depending on the area, training can be
taken in person or online. Topics include:
Workshops in electrical maintenance, mechanical and
hydraulic equipment for mine
Workshops in handling explosives and hazardous
substances
Human development workshops
Management workshops
Leadership workshops
Mine rescue crew workshops
“Tools for the job” workshops
Primero carries out an annual performance evaluation
for every employee, which covers personal development
objectives, skills and abilities. The company has standard
policies for providing benefits to employees who study
or teach. For unionized workers, a worker-preparation
scholarship is provided in one of the clauses of the
union’s agreement.
COMMUNITY TRAINING
The College of Professional Technical Education
(CONALEP) trade school in Tayoltita was established in
2004 by the San Dimas mine in cooperation with the state
government. The San Dimas mine funded the construction
and equipping of the school and provided 50% of teachers’
salaries for the first five years of operation. Its purpose is to
improve the career prospects for local youth, and provide a
source of trained young professionals for the mine.
CONALEP’s first class of 37 students graduated the
Metallurgy and Electromechanical programs in 2007. To
date, approximately 130 students have graduated, 60% of
whom have joined the Primero workforce.
In terms of assistance programs to support employees
who are retiring or who have been terminated, Primero
provides severance pay.
DISTRIBUTION OF EMPLOYEE TRAINING
95%
OF ALL 1,216
WORKERS
RECEIVED
TRAINING
ASSISTANTS 2%
SUPERINTENDENTS 1%
AREA HEADS 5%
SUPERVISORS 54%
LABOURERS 38%
Primero sustainability report 2012 19
CONALEP’s first class of 36 students graduated the
Metallurgy and Electromechanical programs in 2007. To
date, approximately 130 students have graduated, 60% of
whom have joined the Primero workforce.
Primero sustainability report 201220
W
e at Primero are constantly aware that
every action we take has an effect on
nearby communities. We are grateful
that we are welcome among them and feel the
obligation to improve conditions for local communities
where possible.
COMMUNITY DEVELOPMENT
We are committed to maintaining a vibrant,
economically diverse local community. The San Dimas
mine has brought significant infrastructure upgrades
to the community, in the form of improvements
to roads, electrical and communication systems
and medical facilities. Although these were
developed to serve the mining operations, they
are shared by the entire community. In addition to
these benefits, we actively contribute to a broad
range of social and community initiatives, often in
collaboration with local and regional authorities.
In the larger community, we are helping to create a
sustainable local economy through small business
development, and have helped launch many new small
businesses including a greenhouse garden, bakery,
laundromat, chicken farm and sewing centre. We have
contributed to the construction of sports facilities for
the community’s benefit. We support local health care
facilities and subsidize childcare, to help our working-
parent employees and the communities at large. We
promote the growth of a self-sustaining local economy
by helping to develop new, non-mining businesses.
Building our Communities
TABLE 7. PUBLIC INFRASTRUCTURE/
COMMUNITY CONTRIBUTIONS*
Community infrastructure facilities
(water supply, roads, schools,
hospitals, etc.)
$232,734
Community services
(through funding of costs and/or
staffing with Primero employees)
$593,355
*Donations for infrastructure and provision of services, provided primarily as a
	 public service, from which Primero does not seek to gain direct economic benefit
Primero sustainability report 2012 21
Our subsidy benefits a total of 255 students, including 70
preschool students, 120 elementary and 65
secondary students.
Primero sustainability report 201222
COMMUNITY TRAINING
We support education and training, though subsidizing
teachers’ salaries, building classrooms and helping to
pay the tuition for hundreds of students from pre-school
through secondary school. We subsidize technical
colleges and technical training for future miners.
In collaboration with the Mexican government, we
support an Adult Education Program that is available to
employees, their families and other local residents.
In addition to our funding of the CONALEP trade school in
Tayoltita, Primero provides a 75% subsidy to the students
attending the Patronato Pro Escuela Bruno Martínez
school in Tayoltita, whether or not they are children of
mine workers. Our subsidy benefits a total of 255 students,
including 70 preschool students, 120 elementary and 65
secondary students.
TABLE 8. ACADEMIC SCHOLARSHIPS
Number of scholarships Level of study Staff that benefits
21 Technical High School Studies Union workers’ children
12 Computing courses Union workers’ children
7 Technical studies / CONALEP Union workers’ children
8 High School Employees’ children
10 Bachelor’s degree Employees’ children
2 Master’s degree Employees’ children
Primero sustainability report 2012 23
In response to employee requests for greater career
opportunities and skills development, we teamed up
with the Mexican government and launched an Adult
Education Program for employees, families and residents.
Since 2006, more than 260 students have graduated from
the program.
Primero and the Public Security Secretariat provided a
School for Parents workshop on teen education. This six-
month program (three sessions per month) was attended
by a pilot group of 60 workers.
Over 1,300 students attended workshops and
presentations on addiction and addiction prevention. Over
150 hours of prevention activities were delivered, directed
at primary, secondary and high school levels.
TRAINING WOMEN
We promote the economic status of women by proactively
hiring female workers in all areas, and we support the
training of women for heavy-duty equipment operations.
The “Miner Women” project aims to increase the number
of women employed in all areas of the San Dimas
operation, and to elevate their status and improve their
quality of life. Women have been recruited and trained as
specialized machinery operators, especially large, heavy-
duty equipment and electro-hydraulic jumbos. Graduates
of the program become significant financial contributors,
and in some cases, the family’s sole income earner.
For the third year in a row, we collaborated with
SEMARNAT (the Mexican Secretariat of Environment
and Natural Resources) to deliver a workshop on “Product
manufacturing using solid wastes”. Forty women (wives
of mine workers) from the Las Truchas community
participated, and benefited from a three-week temporary
employment program.
CHILD CARE
With the change of administration of the Federal
Government, the daycare facilities program that operated
in Tayoltita through the Secretariat of Social Development
(SEDESOL) was closed. One of the factors in this decision
was the low attendance in recent months by children of
the community. The facilities were returned to Primero.
SEDESOL is willing to support the reinstatement of the
daycare program should the Company and community
request it.
ENVIRONMENTAL AWARENESS
In 2012, Primero delivered 122 environmental-education
talks in primary, elementary and secondary schools,
reaching a total of 2,639 students. Another 56 talks were
given to company workers.
Primero sustainability report 201224
Subjects covered included: Piaxtla River Water Quality;
the Tailings Filtering Process; the Piaxtla River Cleaning
Campaign; Hazardous Waste Management, Saving Energy,
Saving Water and Global Warming.
CULTURE AND RECREATION
Recreational, cultural and sporting activities were provided
for employees and their families in the mining camp.
Sports activities ranged from weightlifting, aerobic training
and taekwondo to tennis and swimming. Cultural and
recreational activities included painting, tailoring, and
hair-cutting workshops.
COMMUNITY SURVEY
In 2011, we conducted a community needs assessment
survey, intended to determine the economic, social and
cultural situation and needs of the San Dimas community.
925 surveys were completed, representing 95% of the
local community. The results formed the basis of our 2011 -
2015 community plan and annual surveys will be repeated
until 2015, in order to evaluate the results of the programs
that we implement.
After 2015, we will continue the annual survey to gather
information on general family relationships, health,
community and addiction.
PRIMERO MAGAZINE
In 2012 we launched Primero Magazine, a bimonthly
magazine that serves as a communication channel to the
workers of San Dimas and their community. It promotes
achievements and supports the community’s personal and
socio-cultural growth. The six issues that were produced in
2012 were very well received by readers.
MINER’S DAY OPEN HOUSE
On July 11, Miner’s Day, the Company’s facilities were
devoted to a mini-exposition, in which the community
and workers’ families were invited on a tour to view the
machinery and equipment. The tour allowed children to
see their parents’ workplace.
Primero sustainability report 2012 25
The “Miner Women” project aims to increase the number
of women employed in all areas of the San Dimas operation,
and to elevate their status and improve their quality of life.
ESR RECOGNITION
In April 2013, we were once again designated a “Socially
Responsible Enterprise” (ESR) by the Mexican Centre for
Philanthropy (Centro Mexicano para la Filantropia). We
also received ESR designation in 2012.
The ESR designation has been earned by fewer than
774 companies across Mexico. It recognizes companies
operating in Mexican territory that make a voluntary
and public commitment to manage their activities
in a socially responsible way, as part of their culture
and business strategy. It indicates that a company is
committed to sustainability in four key areas:
	1. Business ethics
	2. Care and preservation of the environment
	3. Quality of life in the Company
	4. Bonds with the community
Primero sustainability report 201226
O
ur environmental focus is to act with
responsibility and transparency in developing
mining projects and to proactively seek to
minimize the footprint of our operations. Precautionary
measures are taken to avoid damage to ecosystems
wherever possible. When adverse impacts occur,
integrated programs are implemented to promote the
recovery of the affected ecosystems.
MANAGEMENT APPROACH TO
ENVIRONMENTAL RESPONSIBILITY
Our mining, exploration and development activities
are subject to the applicable environmental laws and
regulations, which include planning for the eventual
closure of the mine and reclaiming the mining
properties after mining and processing has ceased.
At all times, we manage the San Dimas mine
in compliance with, or in excess of, all relevant
environmental standards. The Environmental
Protecting the Environment
Management System (EMS) in place at San Dimas
helps reduce or eliminate environmental impacts
through precautionary measures that mitigate damage
and promote recovery and reclamation. Our system is
widely respected for its effectiveness in identifying and
avoiding, reducing or eliminating the environmental
impacts of mining and processing. Our aim at San
Dimas is to match the environmental standards of the
leading gold and silver producers.
Recently, Primero was granted the “Clean Industry”
Certification by the Procuraduria Federal de Proteccion
al Ambiente (Mexican EPA).
ENERGY CONSUMPTION AND GREENHOUSE
GAS EMISSIONS
In the past, all of the energy consumed in the District
of San Dimas was provided by the Federal Commission
of Electricity (Comisión Federal de Electricidad y
Generadores) with the exception of back-up diesel
Primero sustainability report 2012 27
Our Environmental Management System (EMS)
is widely respected for its effectiveness in identifying
and avoiding, reducing or eliminating the environmental
impacts of mining and processing.
Primero sustainability report 201228
In 2012, a Phase II expansion was approved, that will
increase capacity from its current 50 MW/h to
approximately 70 MW/h. This would support mine
expansion and allow excess power to be sold into the
Mexican national energy grid.
Primero uses both direct (e.g. primary energy sources
such as diesel and gasoline) and indirect (energy that
is produced by converting primary energy into other
forms (e.g. electricity)) energy. The tables below
outline the different sources that are used at
San Dimas.
generators. In 2008, the Las Truchas hydroelectric
plant began operation. Today, our San Dimas mine
energy use and GHG emissions are significantly
decreased by our use of hydroelectric power from the
Las Truchas hydroelectric plant, which is owned and
operated by Primero.
The Las Truchas dam and power plant harness the
power potential of the Las Truchas basin to provide the
mine with economical, reliable and clean power. The 34
kVA power line runs 42 km from the dam to the San
Dimas mine. In 2010 a Phase I expansion was
connected to the Federal Commission of Electricity’s
supply system.
TABLE 9. ENERGY CONSUMPTION
Direct 2011 2012
Diesel (stationary) 17,940.96 GJ 22,382.73 GJ
Diesel (transport) 90,592.52 GJ 89,134.29 GJ
Gasoline (000s litres) 3,764.45 GJ 2,047.33 GJ
Indirect
Electricity purchased 5,029.20 GJ
(diesel generators)
142,365.60 GJ
(las Truchas)
66,438.00 GJ
(Mexican Federal
Power Commission)
12,517.20 GJ
(diesel generators)
123,847.20 GJ
(las Truchas)
98,481.60 GJ
(Mexican Federal
Power Commission
Electricity generated on site 17,940.96 GJ 22,382.73 GJ
Increased production in 2012 is largely responsible for the higher energy use and Greenhouse Gas emissions.
Primero sustainability report 2012 29
The drought of 2011 led to the use of diesel generators
in 2012 due to the short supply of water that affected
operations of the Las Truchas hydroelectric dam. To
determine greenhouse gas emissions at San Dimas,
energy consumption information for the different areas
of the mine is taken from an internal register. These
numbers are subsequently multiplied by the National
Greenhouse Accounts Factors to convert fuel amounts
into atmospheric emissions (in CO2
e). These CO2
conversion factors are the same factors that were used
when the mine was owned by Goldcorp.
TABLE 10. GREENHOUSE GAS EMISSIONS (AS TONNES OF CO2
e)
Direct 2011 2012
Diesel (stationary) 1,323 1,651.60
Diesel (transport) 6,823 6,714.20
Gasoline 272 146.80
Indirect
Electricity 8,396 15,236.50
Total 16,516 23,749.10
CLEAN INDUSTRY CERTIFICATION
For years, San Dimas has been “Clean Industry”
certified by PROFEPA. In 2012 the Clean Industry
certification audit was completed and we passed with
100%. The report was submitted to PROFEPA and
certification was granted in early 2013.
The San Dimas operation has also been engaged in a
voluntary self-evaluation program for many years, with
the aim of improving performance by identifying
deficiencies, measuring performance and implementing
improvement programs to remain in compliance with all
of the relevant regulations. As Mexican laws and
regulations evolve and become more closely aligned
with world standards, we at Primero are committed to
remaining in compliance.
AIR QUALITY MEASUREMENT
In 2012, we engaged a third-party contractor (On-Site
Analítica de México, S. A de C.V.) to carry out an
atmospheric study of the San Dimas operation.
The study confirmed that:
Particulates from mining processes were in compliance
with regulations (NOM-043-SEMARNAT-1993)
Emissions from the plant’s burners were in compliance
with regulations (NOM-085 - SEMARNAT-1994, for
burners with heating capacity of less than 5250 Mj/h).
WATER
Water management is a prime concern at Primero.
Rainwater is scarce in the San Dimas region and our
objective at all times is to minimize water use through
recycling, re-use and treatment. In 2012, 501,300 m3
of
water were recycled (e.g. returned from the tailings
dam), up from 281,000 m3
in 2011.
Primero sustainability report 201230
In 2012, we submitted two waste management plans
to SEMARNAT:
The Hazardous Waste Management Plan was
developed with the aim of planning, reducing,
collecting, storing, transporting, and performing final
disposal of hazardous residues generated by service,
exploration, mining, and extraction of gold and silver
minerals from the mine site.
The Mining Waste Management Plan implements
a comprehensive management system for mining
waste materials, such as waste rock and tailings, and
implementing operational techniques for reusing and
TABLE 11. WATER USE
Water Source 2012
Self-extracted water (water drawn from the environment via
a facility or equipment controlled by the operation (e.g. bores,
rivers, dams. etc.)
328,000 m3
Surface water, (including water from wetlands, rivers,
lakes, and oceans)
0
Ground water 316,000 m3
Rainwater collected directly and stored by the
reporting organisation;
12,000 m3
Waste water from another organisation 0
Municipal water supplier or other water utilities
(drawn directly from a public facility)
0
Total water used 610,000 m3
WASTE MANAGEMENT
At San Dimas, waste materials are generated. Non-
hazardous process waste includes the rock and
materials that are removed in order to access the
mineralized ore, and the tailings and waste rock that
are left after the valuable gold and silver mineral
TABLE 12. HAZARDOUS AND NON-HAZARDOUS WASTE
Waste Type 2012
Non-hazardous waste 268 tonnes
Hazardous wastes 131 tonnes
concentrate has been extracted. Hazardous wastes are
materials that can pose a threat to health unless safely
managed (e.g. used oil or grease, contaminated soil,
batteries, etc).
Primero sustainability report 2012 31
reducing them. It also ensures that areas destined
for final disposal comply with safety measures to
ensure the stability of the deposit, preventing the
dispersion of acid drainage, leachate and runoffs to
the environment – including monitoring.
In 2012 we also submitted a plan for Special Waste
management (electronics, scrap metals and tires) to
the State of Durango’s Ministry of Natural Resources.
This plan should significantly reduce the generation of
special waste and ensure appropriate disposal, thus
preventing environmental damage.
TAILINGS
Tailings management at San Dimas is challenged by the
district’s rugged terrain and steep canyons. Following
a number of improvements relating to the stability of
the dams and the management of our tailings over a
number of years, our tailings sites fully comply with
international guidelines.
At the Tayoltita tailings operation, significant capital
improvements have been made in recent years.
Pumps and pumping systems have been upgraded.
Spill containment systems have been improved and a
spill recovery trough installed. The tailings dam area
was fenced to prevent access by people and animals
and further improvements to the dam and operating
practices are planned.
In the Piaxtla River, downstream of the Tayoltita tailings
deposits, water quality monitoring has not shown any
environmental impact, although in periods of heavy
rain, the suspended solids in the water increase an
average of 43,000 tonnes of solution per month, which
was recycled into the leaching process.
In January 2012, a tailings spill occurred, due to
a broken pipe in the Cupias tailings dam. Tailings
containing 5 ppm cyanide were spilled into the Piaxtla
River, affecting a total area of 2.5 kilometres. The fault
Following a number of improvements relating to the stability
of the dams and the management of our tailings, our tailings
sites fully comply with international guidelines.
Primero sustainability report 201232
Biodiversity and Aquatic Monitoring
In 2012 we continued to engage a third-party consultant
(Environmental Consulting and Technology Inc. de CV) to
monitor water quality and the abundance and diversity of
aquatic life in the Piaxtla River, at five monitoring stations
upstream and downstream from the San Dimas mine.
At all monitoring stations, the aquatic habitat was sub-
optimal, but its characteristics were suitable to support
the epifauna and fish populations.
Through these studies of aquatic life, the consultants have
identified and reported fish species that were not thought
to be in the Piaxtla River, and Primero has provided
scientific data to the CONABIO database, of the National
Commission for the Knowledge and Use of Biodiversity.
Mine Closure and Reclamation
Every mine has a finite life and as mining progresses
at San Dimas, we continue to update our plans for the
mine’s eventual closure. In our financial statements we
have accounted for the reclamation and closure costs for
the mine, which ensure that the lands and water will be
returned to a safe and environmentally sound state on
termination of mining.
While operations continue, we practice progressive
reclamation of any lands that are no longer used for
mining activities. In 2011 we reclaimed three of the older
tailings dams near the Tayoltita mill, and used the land
as a soccer field, a softball field, and a garden nursery. In
2012, reclamation was completed on the tailings facilities
of the San Antonio Mill, which was closed in 2003.
TABLE 13. MINING WASTE
Process Waste 2011 2012
Waste Rock
(000s tonnes)
	1,038
76% within the mine,
24% outside the mine
950
Tailings
(000s tonnes)
663 800
was corrected and the relevant water management and
environmental authorities, CNA and PROFEPA, were
notified. The municipality of San Dimas considered
the incident to be localized and under control and
stated that the efficiency of Primero’s emergency
response limited the damages to the death of small
concentrations of fish, without any impact on
other animals.
PROFEPA issued recommendations, and all their
requests were implemented. Primero’s corrective
actions included the design and construction of a
containment structure for the tailings pipe, which will
be fully operational by June 2013 once installation of a
second new tailing pump is complete.
In September, CNA fined Primero $93,500 pesos,
which the Company promptly paid. Following the final
CNA resolution, PROFEPA notified the Company of a
$31,200 peso fine for non-compliance to a “hazardous
waste” regulation. Primero filed a motion with the
H. Tribunal De Justicia Fiscal and Administrativa in
November to void PROFEPA’s resolution. At the time of
printing, this issue had not been resolved.
Primero sustainability report 2012 33
in closing
In this, our second annual Sustainability Report, we at Primero are demonstrating our
commitment to improving the quality and thoroughness of our reporting standards and
practices. These efforts have resulted in the first Primero Sustainability Report to meet
the Global Reporting Initiative 3.1 Guidelines, Level C.
As we move forward, we hope to build a culture of continual improvement in sustainability
throughout a growing Primero. In this report we have set numerous performance targets
for 2013 and beyond, based on an ongoing initiative for improvement in the scope,
depth and transparency of our reporting, to meet the increasing expectations of all
of our stakeholders.
Primero sustainability report 201234
gri index
PROFILE DISCLOSURES
1. STRATEGY AND ANALYSIS Source page
1.1 Statement from the most senior decision-maker of the organization 5
2. ORGANIZATIONAL PROFILE
2.1 Name of the organization Cover
2.2 Primary brands, products, and/or services 9, 10
2.3
Operational structure of the organization, including main divisions, operating
companies, subsidiaries, and joint ventures
9
2.4 Location of organization's headquarters 9
2.5
Number of countries where the organization operates and names of countries with
either major operations or that are specifically relevant to the sustainability issues
covered in the report
9
2.6 Nature of ownership and legal form 1, 9
2.7
Markets served (including geographic breakdown, sectors served, and types of
customers/beneficiaries)
10
2.8 Scale of the reporting organization 9, 10
2.9 Significant changes during the reporting period regarding size, structure, or ownership 2, 9
2.10 Awards received in the reporting period 5, 16, 25
3. REPORT PARAMETERS
3.1 Reporting period (e.g., fiscal/calendar year) for information provided 1
3.2 Date of most recent previous report (if any) 1
3.3 Reporting cycle (annual, biennial, etc) 1
3.4 Contact point for questions regarding the report or its contents 2, 37
3.5 Process for defining report content 1
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint
ventures, suppliers)
2
3.7 State any specific limitations on the scope or boundary of the report 2
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced
operations, and other entities that can significantly affect comparability from
period to period and/or between organizations
N/A
3.10
Explanation of the effect of any re-statements of information provided in earlier
reports, and the reasons for such re-statement (e.g. mergers/acquisitions, change
of base years/periods, nature of business, measurement methods)
2
3.11
Significant changes from previous reporting periods in the scope, boundary, or
measurement methods applied in the report
2
3.12 Table identifying the location of the Standard Disclosures in the report 2
Primero sustainability report 2012 35
4. GOVERNANCE, COMMITMENTS, AND ENGAGEMENT 	 Source page
4.1
Governance structure of the organization, including committees under the highest
governance body responsible for specific tasks, such as setting strategy or
organizational oversight
6, 37
4.2
Indicate whether the Chair of the highest governance body is also an
executive officer
6, 37
4.3
For organizations that have a unitary board structure, state the number
of members of the highest governance body that are independent and/or
non-executive members
6, 37
4.4
Mechanisms for shareholders and employees to provide recommendations or
direction to the highest governance body
6
4.14 List of stakeholder groups engaged by the organization 3
4.15 Basis for identification and selection of stakeholders with whom to engage 3
PERFORMANCE INDICATORS
ECONOMIC
EC1
Direct economic value generated and distributed, including revenues, operating
costs, employee compensation, donations and other community investments,
retained earnings, and payments to capital providers and governments
10
EC7
Procedures for local hiring and proportion of senior management hired from the
local community at significant locations of operations
17
EC8
Development and impact of infrastructure investments and services provided
primarily for public benefit through commercial, in-kind, or pro bono engagement
20, 24
ENVIRONMENTAL
EN3 Direct energy consumption by primary energy source 28
EN4 Indirect energy consumption by primary energy source 28
EN8 Total water withdrawal by source 30
EN16 Total direct and indirect greenhouse gas emissions by weight 29
SOCIAL
LA1 Total workforce by employment type, employment contract, and region 17
LA6
Percentage of total workforce represented in formal joint management worker
health and safety committees that help monitor and advise on occupational health
and safety programs
12, 14, 18
LA9 Health and safety topics covered in formal agreements with trade unions 18
LA11
Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings
18
HR5
Operations identified in which the right to exercise freedom of association
and collective bargaining may be at significant risk, and actions taken to support
these rights
7
HR6
Operations and significant suppliers identified as having significant risk for
incidents of child labor, and measures taken to contribute to the effective abolition
of child labor
7
SO7
Total number of legal actions for anti-competitive behavior, anti-trust, and
monopoly practices and their outcomes
7
SO8
Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with laws and regulations
7, 32
Primero sustainability report 201236
CAUTIONARY STATEMENT
This report may contain “forward-looking” statements within the meaning of Canadian securities legislation and the United
States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or the anticipated
performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated
performance. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”,
“is expected”, “budget”, “scheduled”, ”estimates”, ”forecasts”, ”intends”, ”anticipates” or “believes”, or variations of such
words and phrases or statements that certain actions, events or results “may”, ”could”, “would”, ”might”, or “will be taken”,
“occur” or “be achieved”, or the negative of these words or comparable terminology. By their very nature forward-looking
statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the
Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements.
Such factors include various risks related to the Company’s operations, including, without limitation, fluctuations in spot and
forward markets for gold, silver and other metals, fluctuations in currency markets, changes in national and local governments
in Mexico and the speculative nature of mineral exploration and development, risks associated with obtaining necessary
exploitation and environmental licenses and permits, and the presence of laws that may impose restrictions on mining.
A complete list of risk factors are described in the Company’s annual information form and will be detailed from time to
time in the Company’s continuous disclosure, all of which are, or will be available, for review on SEDAR at www.sedar.com.
corporate directory
DIRECTORS
Wade Nesmith
Chairman
Vancouver, British Columbia
Joseph F. Conway1
President  Chief Executive Officer,
Primero Mining Corp.
Toronto, Ontario
David Demers2, 3, 4, 5
Chief Executive Officer,
Westport Innovations Inc.
Vancouver, British Columbia
Grant Edey3, 5
President  Chief Executive Officer,
Khan Resources Inc.
Mississauga, Ontario
Rohan Hazelton1, 5
Vice President Strategy, Goldcorp Inc
Vancouver, British Columbia
Timo Jauristo2
Executive Vice President
Corporate Development,
Goldcorp Inc.
Vancouver, British Columbia
Eduardo Luna1
Corporate Director
Mexico City, Mexico
Robert A. Quartermain2, 3
President  Chief Executive Officer,
Pretivm Resources Inc.
Vancouver, British Columbia
Michael Riley5
Corporate Director
Vancouver, British Columbia
OFFICERS
Joseph F. Conway
President  Chief Executive Officer
Renaud Adams
Chief Operating Officer
David Blaiklock
Chief Financial Officer
Tamara Brown
Vice President, Investor Relations
H. Maura Lendon
Vice President, Chief General
Counsel  Corporate Secretary
David Sandison
Vice President, Corporate Development
Gabriel Voicu
Vice President, Geology  Exploration
CORPORATE OFFICES
Vancouver
One Bentall Centre
Suite 1640
505 Burrard Street, Box 24
Vancouver, BC V7X 1M6
Canada
T: 604 669 0040
F: 604 669 0014
TF: 1 877 619 3160
Toronto
Suite 2301, 20 Queen Street West
Toronto, ON M5H 3R3
Canada
T: 416 814 3160
F: 416 814 3170
TF: 1 877 619 3160
Production Notes
Design and Production Macrae Design
Location Photography
Salvador Casares Bonastre/
Diseña - Creatividad a... Tiempo!
Printed in Canada
BOARD COMMITTEES
1	Member of the Health, Safety and
Environment Committee
2	Member of the Human Resources and
Compensation Committee
3	Member of the Governance and
Nominating Committee
4	Lead Director
5	Member of the Audit Committee
OPERATION OFFICES
Mexico City
Arquimedes 33, 2nd Floor
Colonia Polanco
11560 Mexico, D. F.
Mexico
T: +52 55 52 80 6083
INQUIRIES
Tamara Brown
Vice President, Investor Relations
T: 416 814 3168
E: info@primeromining.com
Tania Shaw
Manager, Investor Relations
T: 416 814 3179
E: info@primeromining.com
WEBSITE
www.primeromining.com
We welcome feedback on this
report or on any other aspect
of sustainability at Primero.
Please contact us at
sustainability@primeromining.com.
This paper has been certified to meet
the environmental and social standards
of the Forest Stewardship Council®
(FSC®
) and comes from responsibly
managed forests and/or verified
recycled sources.
Primero Mining is a proud member
of the World Gold Council.
Primero sustainability report 201238
CORPORATE OFFICE
Suite 2301, 20 Queen Street West
Toronto, Ontario, M5H 3R3
Canada
P	 416 814-3160
F	 416 814-3170
TF	 1 877 619 3160
In this, our second annual Sustainability Report, we at
Primero are demonstrating our commitment to improving
the quality and thoroughness of our reporting standards
and practices. These efforts have resulted in the
first Primero Sustainability Report to meet the
Global Reporting Initiative 3.1 Guidelines, Level C.

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Primero csr

  • 1. Primero sustainability report 20121 BUILDING sustainable value Sustainability Report 2012
  • 2. Primero sustainability report 20122 We at Primero are proud to present our second annual Sustainability Report1 , which highlights our achievements and challenges in 2012, our second full year operating the San Dimas mine. contents Cover Photo: Jaiden, daughter of Rosenda and Enrique, Miner at San Dimas Mine celebrating Christmas 2012 1 The 2010 Sustainability Report reported on the five months in 2010 that followed Primero’s acquisition of the San Dimas property. All currency is in United States dollars (USD) unless otherwise noted. Building our Communities 20 Protecting the Environment 26 In Closing 33 GRI INDEX 34 CORPORATE DIRECTORY 37 About This Report 1 Letter from the President and CEO 5 Ethical, Transparent Governance 6 Building Primero Value 9 Building our People 12
  • 3. Primero sustainability report 2012 1 we at Primero are proud to present our second annual Sustainability Report, which highlights our achievements and challenges in 2012. This was our second full year operating the San Dimas mine in Mexico, since acquiring it in August of 2010 from Goldcorp Inc., a company with established and respected sustainability practices. After a record year in 2012, in terms of financial and operational performance, Primero is on track toward our goal of building sustainable value: becoming a multi-mine, intermediate precious metals producer, while always supporting sustainable policies and practices in mine exploration, development and operations. Corporate responsibility is embedded into our daily activities. Our goal is to continuously improve workplace health and safety and environmental performance, while sharing the benefits of mining with our local communities. A key component of our commitment is transparent, accountable sustainability reporting. Our Board of Directors and senior management team are committed to the sustainability reporting process and are working to improve data collection and encourage employee engagement in all of our sustainability initiatives. Economic performance is not emphasized in this report: as a public company, our financial results are audited annually and reported on a regular basis, and our Annual Reports, Financial Reports and Regulatory Filings are posted on our website. This report covers the period of January 1 through December 31, 2012. Its content is guided by common principles in sustainability reporting in our industry, and the best available data, as reported by the San Dimas mine. In 2013, the Company will begin internal assessments of materiality, and over the medium term we will broaden these discussions to include various stakeholder groups. The 2011 Sustainability Report was published in May of 2012, and we will continue to report on an annual basis. about this report
  • 4. Primero sustainability report 20122 This report primarily discusses the Company’s operations at the San Dimas mine in Mexico. The Cerro del Gallo property is not discussed, as the acquisition of the project is still in progress. To serve the Company’s growth, the Toronto office moved in 2012. The environmental and broader sustainability impact of this office, along with those of Primero’s Vancouver and Mexico City offices, had little effect on Primero’s overall impacts as they are business offices, not mining or exploration properties. As such, the offices’ energy consumption data are not included in the environmental data. This report is based on data collected in 2012, and does not re-state information provided in earlier reports. There are no significant changes from previous reporting periods in the scope, boundary, or measurement methods applied. For any questions regarding this report or its contents please contact us at sustainability@primeromining.com. GRI DECLARATION This report is based on the standards of the Global Reporting Initiative (GRI), and represents Primero’s first Sustainability Report to attain a GRI G3.1 level C standard of sustainability reporting. The GRI is an independent institution that has developed voluntary guidelines for sustainability reporting. We believe that the GRI reporting guidelines help us to maintain a high standard of transparency, clarity and comparability, and that applying GRI standards demonstrates our commitment to transparent reporting, especially in those categories that are most important to our stakeholders. A GRI Index can be found at the back of this report on page 34-35. MANAGEMENT APPROACH TO SUSTAINABILITY At Primero, we believe that sustainability is fundamental to our success. Our prosperity depends
  • 5. Primero sustainability report 2012 3 on our performance – at the corporate level and in our relation to our host communities – in the three pillars of sustainability: economic achievement, community engagement and environmental stewardship. ECONOMIC ACHIEVEMENT By maximizing earnings and reducing operating costs, we produce results for our shareholders while also contributing to the economic and social development of our host communities. Only by creating value and sharing it among shareholders and host communities, can we sustain our company over the long term. COMMUNITY ENGAGEMENT We actively engage in meaningful dialogue with local residents, community leaders and organisations to identify opportunities and priorities for economic improvement, better training and social development. We support schools, health care and local infrastructure, and we continually seek development opportunities that will contribute to a self-sustaining economy in the communities surrounding our operations. ENVIRONMENTAL STEWARDSHIP At all times, we seek to operate in a responsible manner and to mitigate the impact our operations may cause to the environment. We operate with an awareness of the mine’s life cycle and practice the progressive rehabilitation of areas affected by our activities. OUR STAKEHOLDERS This report is written for Primero stakeholders, including: Employees and their families, Our host communities, Legislators and government officials, Shareholders, investors and financial analysts, Civic, special-interest and non-governmental advocacy organisations (NGOs). These groups are generally accepted as key stakeholders for sustainability reporting, and we engage with them through our AGM, community meetings, website and a dedicated email address. In the future, as we improve our processes for materiality in sustainability reporting, we will be engaging in formal exercises to refine our definition of stakeholders and survey their reporting needs. We invite sustainability-related comments and suggestions at our dedicated email address: sustainability@primeromining.com.
  • 6. 4 Primero sustainability report 2012 Our share price at the end of 2012 was 97% higher than at the end of 2011. Backed by this success, we are entering a phase of expansion in size, diversity and production.
  • 7. Primero sustainability report 2012 5 or Primero, 2012 was a record year for revenues, cash flow and reserve growth. This was reflected in our share price, which finished the year 97% higher than at 2011 year end. Backed by this success, we are entering a phase of expansion in size, asset diversity and production. At the San Dimas mine, newly discovered reserves helped support the mill expansion, which is well underway. In addition, we are also headed to becoming a two-mine company: we have nearly completed the acquisition of a new, potentially game-changing property, the Cerro del Gallo project. Along with this growth comes the obligation to maintain, and continuously improve, our track record of sustainability. We believe that we can only thrive when we act with responsibility, transparency and accountability toward our local communities. We share in the benefits of mining and expend considerable effort in protecting the health and welfare of our people, the economies of the communities in which they live, and the environment that sustains us all. Last year I stated two safety objectives: first, to continue our year-on-year decline in accident frequency – which we accomplished. The second is still underway: I want San Dimas to become a “triple-zero” operation by 2014: zero fatalities, zero lost-time accidents and zero staff on modified duties. However, despite the emphasis we place on safe work practices and training, a tragic accident resulted in a fatality at the San Dimas mine. In response, we commissioned a complete overhaul of our safety procedures, followed by a safety retraining program for the entire workforce. Investors are increasingly concerned with the sustainability practices of mining companies. A lack of dedicated commitment to sustainability is seen as a proxy for increased risk. Throughout the mining industry, climate change and water availability present significant challenges. We continually seek new strategies for minimizing our use of water and improving our overall environmental performance. Last year, I stated that I expected San Dimas to achieve the Mexican government’s “Clean Industry” Certification every year starting in 2012. The certification audit took place this year, and every one of the auditor’s comments was addressed. Recently Primero was granted the “Clean Industry” Certification. I would like to take this opportunity to thank Primero’s employees for the hard work and dedication that made this possible. I’m also proud to recognize our well-trained, professional mine rescue team, who took home first place in this year’s Rescue Brigade Competition held in Durango City. Our sustainability policies continue the high standards that were originally established by the mine’s previous owner, Goldcorp. These standards have earned us the coveted “ESR” designation (in English, “Socially Responsible Enterprise”), for the second consecutive year. As we move forward, as a two-mine company, we intend to expand our sustainability team, and work toward defining a company- wide sustainability framework. In measuring and reporting on our performance, we strive to follow generally accepted international standards - in financial reporting, health and safety reporting, and in this report itself, which is the first Primero Sustainability Report to meet the standards of the GRI 3.1 level C. This was a target that was established last year, and I am pleased to say that this report meets those criteria. This report is guided by common principles in sustainability reporting in our industry, and the best available data as reported by the San Dimas mine. In 2013 we will begin implementing a materiality process with an internal assessment of materiality (or determining what is important to our stakeholders). Over the medium term we will broaden the discussions to include various external stakeholder groups. This is a long-term goal, aimed at building a culture of continual improvement in sustainability throughout a growing Primero. Letter from the President and CEO Joseph F. Conway, President and CEO F
  • 8. Primero sustainability report 20126 S ustainability is an integral component of our company-wide strategy. Our established sustainability program guides us in policy and decisions regarding environmental protection, the health and safety of our people, and the socio-economic development of our host communities. We are committed to embedding sustainability in all our daily actions. Our goal is to continuously improve workplace health and safety and environmental performance, and to share the benefits of mining with local communities. In 2013, as we become a two-mine company, we will be expanding our sustainability team and program, and working toward defining a company-wide sustainability framework that will guide us in standardizing sustainability practices across all operations. We strive to maintain our well-established safety-focused culture among our employees, contractors and visitors. This includes continually improving working conditions and conserving the health and physical safety of all our employees. It extends to preserving the environment and safeguarding the health of the inhabitants of the communities in which we operate, who in the future could become our employees. CODE OF BUSINESS CONDUCT AND ETHICS Our operating practices are governed by the principles set out in our Health and Safety Policy and our corporate Code of Business Conduct and Ethics. The Code is applicable to all directors, officers and employees. It embodies the commitment of Primero and our subsidiaries to conduct business in accordance with all applicable laws, rules and regulations and the highest ethical standards. The complete Code of Business Conduct and Ethics is available in the Corporate Governance section of the Primero website (www.primeromining.com). HEALTH, SAFETY AND ENVIRONMENT COMMITTEE Sustainability practices are the responsibility of the Board of Directors and the Health, Safety and Environment Committee (HSEC). The purpose of the HSEC is to review and recommend corporate policies and programs and monitor activities as they relate to health, safety, environment and social matters affecting communities where the Company conducts operations. The HSEC reports to the Board. Two out of the three gentlemen on the HSEC are independent members of our Board, the third is Joseph Conway, President and CEO, two HSEC members are over 50 years of age and two are Canadian nationals while the third is a Mexican national. Our internal weekly and quarterly reporting tracks key HSEC performance indicators, including human resources, health and safety performance, environmental monitoring, compliance with permits, materials inputs and outputs, and community relations activities. The complete HSEC guidelines are available on the Primero website (www.primeromining.com). We invite HSEC-related recommendations or direction from shareholders, employees or other stakeholders at our dedicated email address: sustainability@primeromining.com. In the future, we hope to develop a process for shareholder resolutions, or other mechanisms, to give minor shareholders a way to offer their opinions. We also hope to develop a process for informing and consulting employees about working relationships, with formal representation bodies such as organisation-level ‘work councils’, and employee representation in the HSEC. HUMAN RIGHTS Primero respects internationally proclaimed human rights, and strives to ensure that we are not complicit in human rights abuses. Ethical, Transparent Governance
  • 9. Primero sustainability report 2012 7 COLLECTIVE BARGAINING AND FREEDOM OF ASSOCIATION All Primero workers enjoy the right to freedom of association as provided by applicable labour law. The San Dimas mine has a trade union, and at the end of 2012, approximately 11.5% of San Dimas employees were covered by a joint committee, and 45.6% of San Dimas Employees were unionized. We do not believe that the right to exercise freedom of association and collective bargaining is at risk at any Primero location. WORKPLACE DIVERSITY, NON-DISCRIMINATION AND EQUITY At Primero, we do not discriminate on the basis of race, religion, ethnicity, national origin, colour, gender, age, sexual orientation, citizenship, veteran status, marital status or disability. Harassment, including sexual, physical and verbal, is prohibited. We do not allow forced or compulsory labour. We do not allow child labour, as defined by the International Finance Corporation (IFC) as “work by children that is economically or likely to be hazardous or to interfere with the child’s education, or to be harmful to the child’s health or physical, mental, spiritual, moral, or social development”. Primero will not knowingly employ a person who is under the legal age of employment, or where that employment would contravene the IFC definition of child labour. There were no incidents of child labour reported to the Company in 2012, nor were any operations considered to have significant risk for incidents of child labour. COMPLIANCE WITH LAWS AND REGULATIONS In 2012, there were no legal actions taken against the Company for anti-competitive behaviour. There was no form of non-monetary sanction taken against the site during the reporting period. Two fines were filed against the Company in 2012, both relating to a tailings spill that occurred, due to a broken pipe in the Cupias tailings dam (see the Environment- Tailings section of this report for details). As a result, PROFEPA (the Mexican environmental authority, the Procuraduria Federal de Proteccions al Ambiente) issued recommendations and Primero took a number of corrective actions. CNA (the water authority, Comisión Nacional del Agua) fined Primero $93,500 pesos, which the Company promptly paid. PROFEPA also notified the Company of a $31,200 peso fine, which Primero has filed a motion seeking to void. At the time of printing, this issue had not been resolved. WHISTLEBLOWER POLICY Our corporate Whistleblower Policy allows any employee to communicate a concern or complaint confidentially and anonymously, with the expectation of a timely response and the assurance that there will be no retribution or negative consequences. We provide a confidential email address (reportline@primeromining.com) and a toll-free complaint reporting hotline (1-877-508-5716) which is available 24 hours a day, 7 days a week.
  • 10. 8 Primero sustainability report 2012 111,132GOLD EQ OZ PRODUCTION 1,980TONNES/DAY THROUGHPUT 660,000OUNCES OF GOLD RESERVES $636CASH COST/GOLD EQ OZ
  • 11. Primero sustainability report 2012 9 Building Primero Value P rimero is a Canadian-based company with headquarters in Toronto and offices in Vancouver and Mexico City. The company has one operating mine, the San Dimas Mine, in Mexico’s San Dimas district, and one exploration property, Ventanas, in Durango State, Mexico. Most of the data in this Sustainability Report relates to our Mexican operations, but our corporate offices are included where relevant. In December 2012, Primero announced an agreement to acquire all issued and outstanding common shares of Cerro Resources NL. At the time of publication, this deal had not closed and as such, the Cerro del Gallo property is not covered in this report. TABLE 1. SAN DIMAS FACTS Ownership 100% Primero Location State of Durango (central west Mexico) approximately 150 km west of Durango and 125 km northeast of Mazatlán Description Gold-silver deposit Underground mine, using mechanized cut-and-fill mining methods 2012 Production Gold equivalent* 111,132 ounces Gold 87,900 ounces Silver 5.13 million ounces 2012 Staff Employees 1,274 Contractors 117 % Union members 45.6% % Mexican 100% *Gold equivalent ounces include silver produced and converted to a gold equivalent, based on average commodity prices received in the period. During the reporting period, there were no significant changes in the size, structure, or ownership of the mine.
  • 12. Primero sustainability report 201210 Greater detail on the Company’s and mine’s revenues, production, customers and markets is included in the Annual Report, which is available on Primero’s website: www.primeromining.com. TABLE 2. DIRECT ECONOMIC REVENUE GENERATED IN 2012 Direct economic value generated a) Revenues $182,939,000 Economic value distributed b) Operating costs (goods and services) $38,569,645 c) Employee wages and benefits $28,683,336 d) Payments to providers of capital $19,074 e) Payments to governments (Mexico) $591,633 f) Community Investments $826,089 Economic Value retained $114,249,223 Durango Guanajuato Durango Province San Dimas Gold-Silver Mine Toronto Office Vancouver Office Ventanas Exploration Property Mazatlan Mexico City Office Cerro del Gallo Gold-Silver-Copper Development Project Guanajuato Province
  • 13. Primero sustainability report 2012 11 At Primero, we believe that sustainability is fundamental to our success. Our prosperity depends on our performance - at the corporate level and in our relation to our host communities - in the three pillars of sustainability: economic achievement, community engagement and environmental stewardship.
  • 14. Primero sustainability report 201212 O ur people are our most valuable asset, and we treat people fairly and without discrimination, with full regard for their human rights. We know that our success depends on the efforts of skilled, hard- working people, and in return we provide ongoing safety and rescue training, and strive to maintain a safety-aware work culture in which everyone is continually reminded of the importance of keeping themselves and their colleagues healthy and injury-free. HEALTH AND SAFETY Our commitment to safety, health and welfare includes our employees, contractors and the visitors to our site, and extends to everyone in nearby communities. In 2012, tremendous effort was spent on improvements to the mine’s health and safety management system, and on improving the safety and security behaviour of our staff, through education and training, and refinements to policies and procedures that promote safety. HEALTH AND SAFETY GOVERNANCE At the San Dimas mine, we operate a number of committees and groups whose purpose is to maintain a safety-first culture and monitor safety performance. Central Safety Security Committee is a Formal Health and Safety Committee that guides our Health and Safety Administration system. The committee is chaired by the mine’s General Manager and includes operations and services superintendents (permanent members) and area heads, supervisors and employees (temporary members). The committee meets on a monthly basis to discuss potential risks and preventive measures, and to choose a safety “employee of the month”. Documentary System Subcommittee is an 18-member subcommittee that has joint management/labour representation and defines safety-related work procedures and instructions. Building our People
  • 15. Primero sustainability report 2012 13 We know that our success depends on the efforts of skilled, hard-working people, and in return we provide ongoing safety and rescue training, and strive to maintain a safety-aware work culture in which everyone is continually reminded of the importance of keeping themselves and their colleagues healthy and injury-free.
  • 16. Primero sustainability report 201214 Preventive Observations Sub-Committee detects unsafe acts and conditions and follows up until they are corrected. In 2012, 4,588 individual “Preventative Observations” were reported and corrected. There were also 11 tours of operational areas by multi-functional groups. Their submitted observations were followed by 82% verified compliance. This committee is at the facility level or higher. Prevention Circles have been formed at San Dimas to develop accident prevention solutions related to rock fall. These groups help monitor and advise on occupational safety programs. Accident Incident Investigation Sub-Committee analyzes and investigates events of potential risk. In 2012, thirteen incident and accident investigations took place and several meetings were held to improve processes and follow-up on recommendations. Seventy eight percent compliance with recommendations was observed. COMPLIANCE WITH STANDARDS Primero participates in a Self-Management Program on Health Safety in the Workplace, in compliance with the Mexican Secretariat of Labour Social Welfare (Secretaría del Trabajo y Previsión Social). The results of the Secretariat’s evaluation in 2012 were: Health Safety in the Workplace Management System: 97.3% compliant Health Safety in the Workplace Standards: 95.8% compliant HEALTH AND SAFETY PERFORMANCE The mining industry recognizes the dangers inherent in the type of work we do. Accordingly, we place enormous emphasis on safe work practices and training – efforts which have resulted in a steady year-on-year decline in overall accident frequency.
  • 17. Primero sustainability report 2012 15 However we regret to report a tragic accident that resulted in a fatality at the San Dimas mine in 2012. We responded by commissioning a complete overhaul of our safety TABLE 3. INJURY FREQUENCY Injury Type 2011 2012 Lost time injuries 3 6 Total reportable injuries 27 20 Significant potential incidents 65 42 Fatalities 1 1 Lost Time Injury Frequency Rate (LTIFR*) 0.18 0.36 All Injury Frequency Rate (AIFR**) 1.84 1.5 * LTIFR is the number of lost-time injuries per 200,000 hours worked. (Lost-Time Injuries x 200,000 hours) ÷ Total Hours Worked ** AIFR is the number of all injuries per 200,000 hours worked. Includes employees and contractors at all sites and corporate offices as well as the corporate exploration team. procedures, followed by a safety retraining program for the entire workforce. Our objective is to become a zero harm operation. We seek to be recognized as an employer of choice by offering competitive wages, above-average benefits, as well as by preferentially hiring locally and recognizing and rewarding employee performance.
  • 18. Primero sustainability report 201216 EMERGENCY RESPONSE The San Dimas mine has a history of strong emergency- preparedness practices, and maintains a specially-trained rescue team, that is trained and equipped to handle nearly any type of emergency that could occur in an underground mine. Rescue team members receive specialized training in first aid, mine rescue and rope rescues including rappelling and vertical rescue. The San Dimas rescue team won first place in the Mine Rescue and Bench Test during the Rescue Brigade Competition held in Durango City. This is the seventh year in a row in which our team has won recognition for outstanding performance in national and regional competitions. HEALTH PROTECTION AND TRAINING In addition to injury prevention, the San Dimas mine’s Integral Safety System is intended to improve the health and welfare of our workers, their families and the surrounding communities. The system seeks to identify and prevent sickness through ongoing monitoring and check-ups, including: Preventive programs for disease detection Epidemiological disease-detection programs for all employees exposed to noise, dust, hazardous chemical substances, etc Biological environmental monitoring Annual medical exams Anti-doping and alcohol tests for workers This is the seventh year in a row in which the San Dimas rescue team has won recognition for outstanding performance in national and regional competitions.
  • 19. Primero sustainability report 2012 17 TABLE 4. STAFF BREAKDOWN Location Full-Time employees Hourly (Union) Contractors Women Men Total Mexico City Office 10 0 0 4 6 10 San Dimas Mine 576 581 117 115 1,159 1,274 Vancouver Office 3 0 3 4 2 6 Toronto Office 13 0 0 5 8 13 Total 602 581 120 128 1,175 1,303 San Dimas maintains on-site hospital facilities with x-ray, ultrasound, a surgery room and clinical lab, which are available for all employees and contractors. To the best of the Company’s knowledge, there were no workers who are involved in occupational activities who have a high incidence or high risk of specific diseases. A monthly safety campaign focuses on a specific topic. The campaigns include awareness talks, training courses and revision of standards. Topics have included among others: lock out – tag out, defensive driving, safety in work at heights and safe handling of sodium cyanide. MANAGEMENT APPROACH TO LABOUR PRACTICES Throughout Primero we foster a culture of inclusivity and acceptance of gender, race, cultural background, age, religion and disability. We are committed to fair and equitable labour practices in every operation and office. Nearly half (45.6%) of our mining workforce is unionized. In this traditional mining region, and everywhere we operate, we seek to be recognized as an employer of choice by offering competitive wages, above-average benefits, as well as by preferentially hiring locally and recognizing and rewarding employee performance. TABLE 5. LOCAL SENIOR MANAGEMENT* Number of Senior Managers 17% Percent who are local residents (Naturalised citizens or permanent visa holders) 99% * Senior management is defined as Superintendents, Managers, and General Manager. REGIONAL HIRING 76% Durango state 9% Sinaloa state 6% Zacatecas state 8% Guanajuato state 1% Otros state
  • 20. Primero sustainability report 201218 HEALTH AND SAFETY AGREEMENTS Many employment positions at the San Dimas mine are unionized, which includes health and safety agreements. The following health and safety topics are covered by local agreements signed by Primero: Personal protective equipment Joint management-employee health and safety committees Participation of worker representatives in health and safety inspections, audits, and accident investigations Training and education Right to refuse unsafe work Periodic inspections TABLE 6. EMPLOYEES COVERED BY JOINT HEALTH AND SAFETY COMMITTEES Number of employees 1,274 Employees covered by joint agreements 147 (11.5%) WORKER AND MANAGEMENT TRAINING Primero runs an annual training program for superintendents, area managers, supervisors and workers. The training is developed based on the needs of each department and depending on the area, training can be taken in person or online. Topics include: Workshops in electrical maintenance, mechanical and hydraulic equipment for mine Workshops in handling explosives and hazardous substances Human development workshops Management workshops Leadership workshops Mine rescue crew workshops “Tools for the job” workshops Primero carries out an annual performance evaluation for every employee, which covers personal development objectives, skills and abilities. The company has standard policies for providing benefits to employees who study or teach. For unionized workers, a worker-preparation scholarship is provided in one of the clauses of the union’s agreement. COMMUNITY TRAINING The College of Professional Technical Education (CONALEP) trade school in Tayoltita was established in 2004 by the San Dimas mine in cooperation with the state government. The San Dimas mine funded the construction and equipping of the school and provided 50% of teachers’ salaries for the first five years of operation. Its purpose is to improve the career prospects for local youth, and provide a source of trained young professionals for the mine. CONALEP’s first class of 37 students graduated the Metallurgy and Electromechanical programs in 2007. To date, approximately 130 students have graduated, 60% of whom have joined the Primero workforce. In terms of assistance programs to support employees who are retiring or who have been terminated, Primero provides severance pay. DISTRIBUTION OF EMPLOYEE TRAINING 95% OF ALL 1,216 WORKERS RECEIVED TRAINING ASSISTANTS 2% SUPERINTENDENTS 1% AREA HEADS 5% SUPERVISORS 54% LABOURERS 38%
  • 21. Primero sustainability report 2012 19 CONALEP’s first class of 36 students graduated the Metallurgy and Electromechanical programs in 2007. To date, approximately 130 students have graduated, 60% of whom have joined the Primero workforce.
  • 22. Primero sustainability report 201220 W e at Primero are constantly aware that every action we take has an effect on nearby communities. We are grateful that we are welcome among them and feel the obligation to improve conditions for local communities where possible. COMMUNITY DEVELOPMENT We are committed to maintaining a vibrant, economically diverse local community. The San Dimas mine has brought significant infrastructure upgrades to the community, in the form of improvements to roads, electrical and communication systems and medical facilities. Although these were developed to serve the mining operations, they are shared by the entire community. In addition to these benefits, we actively contribute to a broad range of social and community initiatives, often in collaboration with local and regional authorities. In the larger community, we are helping to create a sustainable local economy through small business development, and have helped launch many new small businesses including a greenhouse garden, bakery, laundromat, chicken farm and sewing centre. We have contributed to the construction of sports facilities for the community’s benefit. We support local health care facilities and subsidize childcare, to help our working- parent employees and the communities at large. We promote the growth of a self-sustaining local economy by helping to develop new, non-mining businesses. Building our Communities TABLE 7. PUBLIC INFRASTRUCTURE/ COMMUNITY CONTRIBUTIONS* Community infrastructure facilities (water supply, roads, schools, hospitals, etc.) $232,734 Community services (through funding of costs and/or staffing with Primero employees) $593,355 *Donations for infrastructure and provision of services, provided primarily as a public service, from which Primero does not seek to gain direct economic benefit
  • 23. Primero sustainability report 2012 21 Our subsidy benefits a total of 255 students, including 70 preschool students, 120 elementary and 65 secondary students.
  • 24. Primero sustainability report 201222 COMMUNITY TRAINING We support education and training, though subsidizing teachers’ salaries, building classrooms and helping to pay the tuition for hundreds of students from pre-school through secondary school. We subsidize technical colleges and technical training for future miners. In collaboration with the Mexican government, we support an Adult Education Program that is available to employees, their families and other local residents. In addition to our funding of the CONALEP trade school in Tayoltita, Primero provides a 75% subsidy to the students attending the Patronato Pro Escuela Bruno Martínez school in Tayoltita, whether or not they are children of mine workers. Our subsidy benefits a total of 255 students, including 70 preschool students, 120 elementary and 65 secondary students. TABLE 8. ACADEMIC SCHOLARSHIPS Number of scholarships Level of study Staff that benefits 21 Technical High School Studies Union workers’ children 12 Computing courses Union workers’ children 7 Technical studies / CONALEP Union workers’ children 8 High School Employees’ children 10 Bachelor’s degree Employees’ children 2 Master’s degree Employees’ children
  • 25. Primero sustainability report 2012 23 In response to employee requests for greater career opportunities and skills development, we teamed up with the Mexican government and launched an Adult Education Program for employees, families and residents. Since 2006, more than 260 students have graduated from the program. Primero and the Public Security Secretariat provided a School for Parents workshop on teen education. This six- month program (three sessions per month) was attended by a pilot group of 60 workers. Over 1,300 students attended workshops and presentations on addiction and addiction prevention. Over 150 hours of prevention activities were delivered, directed at primary, secondary and high school levels. TRAINING WOMEN We promote the economic status of women by proactively hiring female workers in all areas, and we support the training of women for heavy-duty equipment operations. The “Miner Women” project aims to increase the number of women employed in all areas of the San Dimas operation, and to elevate their status and improve their quality of life. Women have been recruited and trained as specialized machinery operators, especially large, heavy- duty equipment and electro-hydraulic jumbos. Graduates of the program become significant financial contributors, and in some cases, the family’s sole income earner. For the third year in a row, we collaborated with SEMARNAT (the Mexican Secretariat of Environment and Natural Resources) to deliver a workshop on “Product manufacturing using solid wastes”. Forty women (wives of mine workers) from the Las Truchas community participated, and benefited from a three-week temporary employment program. CHILD CARE With the change of administration of the Federal Government, the daycare facilities program that operated in Tayoltita through the Secretariat of Social Development (SEDESOL) was closed. One of the factors in this decision was the low attendance in recent months by children of the community. The facilities were returned to Primero. SEDESOL is willing to support the reinstatement of the daycare program should the Company and community request it. ENVIRONMENTAL AWARENESS In 2012, Primero delivered 122 environmental-education talks in primary, elementary and secondary schools, reaching a total of 2,639 students. Another 56 talks were given to company workers.
  • 26. Primero sustainability report 201224 Subjects covered included: Piaxtla River Water Quality; the Tailings Filtering Process; the Piaxtla River Cleaning Campaign; Hazardous Waste Management, Saving Energy, Saving Water and Global Warming. CULTURE AND RECREATION Recreational, cultural and sporting activities were provided for employees and their families in the mining camp. Sports activities ranged from weightlifting, aerobic training and taekwondo to tennis and swimming. Cultural and recreational activities included painting, tailoring, and hair-cutting workshops. COMMUNITY SURVEY In 2011, we conducted a community needs assessment survey, intended to determine the economic, social and cultural situation and needs of the San Dimas community. 925 surveys were completed, representing 95% of the local community. The results formed the basis of our 2011 - 2015 community plan and annual surveys will be repeated until 2015, in order to evaluate the results of the programs that we implement. After 2015, we will continue the annual survey to gather information on general family relationships, health, community and addiction. PRIMERO MAGAZINE In 2012 we launched Primero Magazine, a bimonthly magazine that serves as a communication channel to the workers of San Dimas and their community. It promotes achievements and supports the community’s personal and socio-cultural growth. The six issues that were produced in 2012 were very well received by readers. MINER’S DAY OPEN HOUSE On July 11, Miner’s Day, the Company’s facilities were devoted to a mini-exposition, in which the community and workers’ families were invited on a tour to view the machinery and equipment. The tour allowed children to see their parents’ workplace.
  • 27. Primero sustainability report 2012 25 The “Miner Women” project aims to increase the number of women employed in all areas of the San Dimas operation, and to elevate their status and improve their quality of life. ESR RECOGNITION In April 2013, we were once again designated a “Socially Responsible Enterprise” (ESR) by the Mexican Centre for Philanthropy (Centro Mexicano para la Filantropia). We also received ESR designation in 2012. The ESR designation has been earned by fewer than 774 companies across Mexico. It recognizes companies operating in Mexican territory that make a voluntary and public commitment to manage their activities in a socially responsible way, as part of their culture and business strategy. It indicates that a company is committed to sustainability in four key areas: 1. Business ethics 2. Care and preservation of the environment 3. Quality of life in the Company 4. Bonds with the community
  • 28. Primero sustainability report 201226 O ur environmental focus is to act with responsibility and transparency in developing mining projects and to proactively seek to minimize the footprint of our operations. Precautionary measures are taken to avoid damage to ecosystems wherever possible. When adverse impacts occur, integrated programs are implemented to promote the recovery of the affected ecosystems. MANAGEMENT APPROACH TO ENVIRONMENTAL RESPONSIBILITY Our mining, exploration and development activities are subject to the applicable environmental laws and regulations, which include planning for the eventual closure of the mine and reclaiming the mining properties after mining and processing has ceased. At all times, we manage the San Dimas mine in compliance with, or in excess of, all relevant environmental standards. The Environmental Protecting the Environment Management System (EMS) in place at San Dimas helps reduce or eliminate environmental impacts through precautionary measures that mitigate damage and promote recovery and reclamation. Our system is widely respected for its effectiveness in identifying and avoiding, reducing or eliminating the environmental impacts of mining and processing. Our aim at San Dimas is to match the environmental standards of the leading gold and silver producers. Recently, Primero was granted the “Clean Industry” Certification by the Procuraduria Federal de Proteccion al Ambiente (Mexican EPA). ENERGY CONSUMPTION AND GREENHOUSE GAS EMISSIONS In the past, all of the energy consumed in the District of San Dimas was provided by the Federal Commission of Electricity (Comisión Federal de Electricidad y Generadores) with the exception of back-up diesel
  • 29. Primero sustainability report 2012 27 Our Environmental Management System (EMS) is widely respected for its effectiveness in identifying and avoiding, reducing or eliminating the environmental impacts of mining and processing.
  • 30. Primero sustainability report 201228 In 2012, a Phase II expansion was approved, that will increase capacity from its current 50 MW/h to approximately 70 MW/h. This would support mine expansion and allow excess power to be sold into the Mexican national energy grid. Primero uses both direct (e.g. primary energy sources such as diesel and gasoline) and indirect (energy that is produced by converting primary energy into other forms (e.g. electricity)) energy. The tables below outline the different sources that are used at San Dimas. generators. In 2008, the Las Truchas hydroelectric plant began operation. Today, our San Dimas mine energy use and GHG emissions are significantly decreased by our use of hydroelectric power from the Las Truchas hydroelectric plant, which is owned and operated by Primero. The Las Truchas dam and power plant harness the power potential of the Las Truchas basin to provide the mine with economical, reliable and clean power. The 34 kVA power line runs 42 km from the dam to the San Dimas mine. In 2010 a Phase I expansion was connected to the Federal Commission of Electricity’s supply system. TABLE 9. ENERGY CONSUMPTION Direct 2011 2012 Diesel (stationary) 17,940.96 GJ 22,382.73 GJ Diesel (transport) 90,592.52 GJ 89,134.29 GJ Gasoline (000s litres) 3,764.45 GJ 2,047.33 GJ Indirect Electricity purchased 5,029.20 GJ (diesel generators) 142,365.60 GJ (las Truchas) 66,438.00 GJ (Mexican Federal Power Commission) 12,517.20 GJ (diesel generators) 123,847.20 GJ (las Truchas) 98,481.60 GJ (Mexican Federal Power Commission Electricity generated on site 17,940.96 GJ 22,382.73 GJ Increased production in 2012 is largely responsible for the higher energy use and Greenhouse Gas emissions.
  • 31. Primero sustainability report 2012 29 The drought of 2011 led to the use of diesel generators in 2012 due to the short supply of water that affected operations of the Las Truchas hydroelectric dam. To determine greenhouse gas emissions at San Dimas, energy consumption information for the different areas of the mine is taken from an internal register. These numbers are subsequently multiplied by the National Greenhouse Accounts Factors to convert fuel amounts into atmospheric emissions (in CO2 e). These CO2 conversion factors are the same factors that were used when the mine was owned by Goldcorp. TABLE 10. GREENHOUSE GAS EMISSIONS (AS TONNES OF CO2 e) Direct 2011 2012 Diesel (stationary) 1,323 1,651.60 Diesel (transport) 6,823 6,714.20 Gasoline 272 146.80 Indirect Electricity 8,396 15,236.50 Total 16,516 23,749.10 CLEAN INDUSTRY CERTIFICATION For years, San Dimas has been “Clean Industry” certified by PROFEPA. In 2012 the Clean Industry certification audit was completed and we passed with 100%. The report was submitted to PROFEPA and certification was granted in early 2013. The San Dimas operation has also been engaged in a voluntary self-evaluation program for many years, with the aim of improving performance by identifying deficiencies, measuring performance and implementing improvement programs to remain in compliance with all of the relevant regulations. As Mexican laws and regulations evolve and become more closely aligned with world standards, we at Primero are committed to remaining in compliance. AIR QUALITY MEASUREMENT In 2012, we engaged a third-party contractor (On-Site Analítica de México, S. A de C.V.) to carry out an atmospheric study of the San Dimas operation. The study confirmed that: Particulates from mining processes were in compliance with regulations (NOM-043-SEMARNAT-1993) Emissions from the plant’s burners were in compliance with regulations (NOM-085 - SEMARNAT-1994, for burners with heating capacity of less than 5250 Mj/h). WATER Water management is a prime concern at Primero. Rainwater is scarce in the San Dimas region and our objective at all times is to minimize water use through recycling, re-use and treatment. In 2012, 501,300 m3 of water were recycled (e.g. returned from the tailings dam), up from 281,000 m3 in 2011.
  • 32. Primero sustainability report 201230 In 2012, we submitted two waste management plans to SEMARNAT: The Hazardous Waste Management Plan was developed with the aim of planning, reducing, collecting, storing, transporting, and performing final disposal of hazardous residues generated by service, exploration, mining, and extraction of gold and silver minerals from the mine site. The Mining Waste Management Plan implements a comprehensive management system for mining waste materials, such as waste rock and tailings, and implementing operational techniques for reusing and TABLE 11. WATER USE Water Source 2012 Self-extracted water (water drawn from the environment via a facility or equipment controlled by the operation (e.g. bores, rivers, dams. etc.) 328,000 m3 Surface water, (including water from wetlands, rivers, lakes, and oceans) 0 Ground water 316,000 m3 Rainwater collected directly and stored by the reporting organisation; 12,000 m3 Waste water from another organisation 0 Municipal water supplier or other water utilities (drawn directly from a public facility) 0 Total water used 610,000 m3 WASTE MANAGEMENT At San Dimas, waste materials are generated. Non- hazardous process waste includes the rock and materials that are removed in order to access the mineralized ore, and the tailings and waste rock that are left after the valuable gold and silver mineral TABLE 12. HAZARDOUS AND NON-HAZARDOUS WASTE Waste Type 2012 Non-hazardous waste 268 tonnes Hazardous wastes 131 tonnes concentrate has been extracted. Hazardous wastes are materials that can pose a threat to health unless safely managed (e.g. used oil or grease, contaminated soil, batteries, etc).
  • 33. Primero sustainability report 2012 31 reducing them. It also ensures that areas destined for final disposal comply with safety measures to ensure the stability of the deposit, preventing the dispersion of acid drainage, leachate and runoffs to the environment – including monitoring. In 2012 we also submitted a plan for Special Waste management (electronics, scrap metals and tires) to the State of Durango’s Ministry of Natural Resources. This plan should significantly reduce the generation of special waste and ensure appropriate disposal, thus preventing environmental damage. TAILINGS Tailings management at San Dimas is challenged by the district’s rugged terrain and steep canyons. Following a number of improvements relating to the stability of the dams and the management of our tailings over a number of years, our tailings sites fully comply with international guidelines. At the Tayoltita tailings operation, significant capital improvements have been made in recent years. Pumps and pumping systems have been upgraded. Spill containment systems have been improved and a spill recovery trough installed. The tailings dam area was fenced to prevent access by people and animals and further improvements to the dam and operating practices are planned. In the Piaxtla River, downstream of the Tayoltita tailings deposits, water quality monitoring has not shown any environmental impact, although in periods of heavy rain, the suspended solids in the water increase an average of 43,000 tonnes of solution per month, which was recycled into the leaching process. In January 2012, a tailings spill occurred, due to a broken pipe in the Cupias tailings dam. Tailings containing 5 ppm cyanide were spilled into the Piaxtla River, affecting a total area of 2.5 kilometres. The fault Following a number of improvements relating to the stability of the dams and the management of our tailings, our tailings sites fully comply with international guidelines.
  • 34. Primero sustainability report 201232 Biodiversity and Aquatic Monitoring In 2012 we continued to engage a third-party consultant (Environmental Consulting and Technology Inc. de CV) to monitor water quality and the abundance and diversity of aquatic life in the Piaxtla River, at five monitoring stations upstream and downstream from the San Dimas mine. At all monitoring stations, the aquatic habitat was sub- optimal, but its characteristics were suitable to support the epifauna and fish populations. Through these studies of aquatic life, the consultants have identified and reported fish species that were not thought to be in the Piaxtla River, and Primero has provided scientific data to the CONABIO database, of the National Commission for the Knowledge and Use of Biodiversity. Mine Closure and Reclamation Every mine has a finite life and as mining progresses at San Dimas, we continue to update our plans for the mine’s eventual closure. In our financial statements we have accounted for the reclamation and closure costs for the mine, which ensure that the lands and water will be returned to a safe and environmentally sound state on termination of mining. While operations continue, we practice progressive reclamation of any lands that are no longer used for mining activities. In 2011 we reclaimed three of the older tailings dams near the Tayoltita mill, and used the land as a soccer field, a softball field, and a garden nursery. In 2012, reclamation was completed on the tailings facilities of the San Antonio Mill, which was closed in 2003. TABLE 13. MINING WASTE Process Waste 2011 2012 Waste Rock (000s tonnes) 1,038 76% within the mine, 24% outside the mine 950 Tailings (000s tonnes) 663 800 was corrected and the relevant water management and environmental authorities, CNA and PROFEPA, were notified. The municipality of San Dimas considered the incident to be localized and under control and stated that the efficiency of Primero’s emergency response limited the damages to the death of small concentrations of fish, without any impact on other animals. PROFEPA issued recommendations, and all their requests were implemented. Primero’s corrective actions included the design and construction of a containment structure for the tailings pipe, which will be fully operational by June 2013 once installation of a second new tailing pump is complete. In September, CNA fined Primero $93,500 pesos, which the Company promptly paid. Following the final CNA resolution, PROFEPA notified the Company of a $31,200 peso fine for non-compliance to a “hazardous waste” regulation. Primero filed a motion with the H. Tribunal De Justicia Fiscal and Administrativa in November to void PROFEPA’s resolution. At the time of printing, this issue had not been resolved.
  • 35. Primero sustainability report 2012 33 in closing In this, our second annual Sustainability Report, we at Primero are demonstrating our commitment to improving the quality and thoroughness of our reporting standards and practices. These efforts have resulted in the first Primero Sustainability Report to meet the Global Reporting Initiative 3.1 Guidelines, Level C. As we move forward, we hope to build a culture of continual improvement in sustainability throughout a growing Primero. In this report we have set numerous performance targets for 2013 and beyond, based on an ongoing initiative for improvement in the scope, depth and transparency of our reporting, to meet the increasing expectations of all of our stakeholders.
  • 36. Primero sustainability report 201234 gri index PROFILE DISCLOSURES 1. STRATEGY AND ANALYSIS Source page 1.1 Statement from the most senior decision-maker of the organization 5 2. ORGANIZATIONAL PROFILE 2.1 Name of the organization Cover 2.2 Primary brands, products, and/or services 9, 10 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures 9 2.4 Location of organization's headquarters 9 2.5 Number of countries where the organization operates and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report 9 2.6 Nature of ownership and legal form 1, 9 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries) 10 2.8 Scale of the reporting organization 9, 10 2.9 Significant changes during the reporting period regarding size, structure, or ownership 2, 9 2.10 Awards received in the reporting period 5, 16, 25 3. REPORT PARAMETERS 3.1 Reporting period (e.g., fiscal/calendar year) for information provided 1 3.2 Date of most recent previous report (if any) 1 3.3 Reporting cycle (annual, biennial, etc) 1 3.4 Contact point for questions regarding the report or its contents 2, 37 3.5 Process for defining report content 1 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers) 2 3.7 State any specific limitations on the scope or boundary of the report 2 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations N/A 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g. mergers/acquisitions, change of base years/periods, nature of business, measurement methods) 2 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report 2 3.12 Table identifying the location of the Standard Disclosures in the report 2
  • 37. Primero sustainability report 2012 35 4. GOVERNANCE, COMMITMENTS, AND ENGAGEMENT Source page 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight 6, 37 4.2 Indicate whether the Chair of the highest governance body is also an executive officer 6, 37 4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members 6, 37 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body 6 4.14 List of stakeholder groups engaged by the organization 3 4.15 Basis for identification and selection of stakeholders with whom to engage 3 PERFORMANCE INDICATORS ECONOMIC EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments 10 EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operations 17 EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement 20, 24 ENVIRONMENTAL EN3 Direct energy consumption by primary energy source 28 EN4 Indirect energy consumption by primary energy source 28 EN8 Total water withdrawal by source 30 EN16 Total direct and indirect greenhouse gas emissions by weight 29 SOCIAL LA1 Total workforce by employment type, employment contract, and region 17 LA6 Percentage of total workforce represented in formal joint management worker health and safety committees that help monitor and advise on occupational health and safety programs 12, 14, 18 LA9 Health and safety topics covered in formal agreements with trade unions 18 LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings 18 HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights 7 HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor 7 SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes 7 SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations 7, 32
  • 38. Primero sustainability report 201236 CAUTIONARY STATEMENT This report may contain “forward-looking” statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, ”estimates”, ”forecasts”, ”intends”, ”anticipates” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, ”could”, “would”, ”might”, or “will be taken”, “occur” or “be achieved”, or the negative of these words or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Such factors include various risks related to the Company’s operations, including, without limitation, fluctuations in spot and forward markets for gold, silver and other metals, fluctuations in currency markets, changes in national and local governments in Mexico and the speculative nature of mineral exploration and development, risks associated with obtaining necessary exploitation and environmental licenses and permits, and the presence of laws that may impose restrictions on mining. A complete list of risk factors are described in the Company’s annual information form and will be detailed from time to time in the Company’s continuous disclosure, all of which are, or will be available, for review on SEDAR at www.sedar.com.
  • 39. corporate directory DIRECTORS Wade Nesmith Chairman Vancouver, British Columbia Joseph F. Conway1 President Chief Executive Officer, Primero Mining Corp. Toronto, Ontario David Demers2, 3, 4, 5 Chief Executive Officer, Westport Innovations Inc. Vancouver, British Columbia Grant Edey3, 5 President Chief Executive Officer, Khan Resources Inc. Mississauga, Ontario Rohan Hazelton1, 5 Vice President Strategy, Goldcorp Inc Vancouver, British Columbia Timo Jauristo2 Executive Vice President Corporate Development, Goldcorp Inc. Vancouver, British Columbia Eduardo Luna1 Corporate Director Mexico City, Mexico Robert A. Quartermain2, 3 President Chief Executive Officer, Pretivm Resources Inc. Vancouver, British Columbia Michael Riley5 Corporate Director Vancouver, British Columbia OFFICERS Joseph F. Conway President Chief Executive Officer Renaud Adams Chief Operating Officer David Blaiklock Chief Financial Officer Tamara Brown Vice President, Investor Relations H. Maura Lendon Vice President, Chief General Counsel Corporate Secretary David Sandison Vice President, Corporate Development Gabriel Voicu Vice President, Geology Exploration CORPORATE OFFICES Vancouver One Bentall Centre Suite 1640 505 Burrard Street, Box 24 Vancouver, BC V7X 1M6 Canada T: 604 669 0040 F: 604 669 0014 TF: 1 877 619 3160 Toronto Suite 2301, 20 Queen Street West Toronto, ON M5H 3R3 Canada T: 416 814 3160 F: 416 814 3170 TF: 1 877 619 3160 Production Notes Design and Production Macrae Design Location Photography Salvador Casares Bonastre/ Diseña - Creatividad a... Tiempo! Printed in Canada BOARD COMMITTEES 1 Member of the Health, Safety and Environment Committee 2 Member of the Human Resources and Compensation Committee 3 Member of the Governance and Nominating Committee 4 Lead Director 5 Member of the Audit Committee OPERATION OFFICES Mexico City Arquimedes 33, 2nd Floor Colonia Polanco 11560 Mexico, D. F. Mexico T: +52 55 52 80 6083 INQUIRIES Tamara Brown Vice President, Investor Relations T: 416 814 3168 E: info@primeromining.com Tania Shaw Manager, Investor Relations T: 416 814 3179 E: info@primeromining.com WEBSITE www.primeromining.com We welcome feedback on this report or on any other aspect of sustainability at Primero. Please contact us at sustainability@primeromining.com. This paper has been certified to meet the environmental and social standards of the Forest Stewardship Council® (FSC® ) and comes from responsibly managed forests and/or verified recycled sources. Primero Mining is a proud member of the World Gold Council.
  • 40. Primero sustainability report 201238 CORPORATE OFFICE Suite 2301, 20 Queen Street West Toronto, Ontario, M5H 3R3 Canada P 416 814-3160 F 416 814-3170 TF 1 877 619 3160 In this, our second annual Sustainability Report, we at Primero are demonstrating our commitment to improving the quality and thoroughness of our reporting standards and practices. These efforts have resulted in the first Primero Sustainability Report to meet the Global Reporting Initiative 3.1 Guidelines, Level C.