Kinross Gold 2016
Kinross Gold 2016
Kinross Gold 2016
Responsibility Report
2016 SUPPLEMENT AND COMMUNICATION ON PROGRESS
KINROSS CORPORATE RESPONSIBILITY 2016 SUPPLEMENT
OU R VA LU ES
To Our Stakeholders
We are pleased to provide our Corporate Responsibility Report 2016 Supplement. This
report outlines our corporate responsibility (CR) performance in 2016 as a supplement
to Kinross’ comprehensive 2015 Corporate Responsibility Report and serves as our
Communication on Progress as part of our commitments under the UN Global Compact.
2016 Highlights
Remained one of the safest mining companies in the industry. Received the prestigious U.S. Bureau of Land Management
(BLM) 2016 Hardrock Mineral Community Outreach and
Named as one of Canada’s Best Corporate Citizens by Corporate Economic Security Award in recognition of the Kettle River-
Knights Magazine in 2016 and 2017, placing the company first Buckhorn mine’s social closure plan.
among gold mining companies for three consecutive years.
Named the top gold mining company in the World Wildlife
Contributed to almost 800 community programs, initiatives and Fund’s rating of companies in Russia and second among all
events bringing benefits to over 1 million beneficiaries. mining companies in environmental responsibility.
Spent over $2 billion in host countries through local purchasing, Improved overall water efficiency across our operations by 9%
taxes and wages. through operational efficiency and conservation measures.
Achieved the top ranking among gold mining companies Developed and launched a Company-wide “Kinross Way
(26 out of 231) in the Globe and Mail annual corporate Leadership Program”, including the launch of
governance survey. Kinross University, a new online training program
that will help employees develop and enhance their
CONTENTS
leadership skills.
To Our Stakeholders 01
Performance Highlights 03
Stakeholder Issues Update 08
2016 Data Tables 10
Corporate Information 23
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KINROSS CORPORATE RESPONSIBILITY 2016 SUPPLEMENT
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KINROSS CORPORATE RESPONSIBILITY 2016 SUPPLEMENT
Each year, we track our progress across priority key performance indicators that are aligned
to our business strategy and our Ten Guiding Principles for Corporate Responsibility.
2. Business Ethics • Corporate, regional, and site 100% 100% • We attained and maintained a Board
We maintain the highest standards management anti-corruption target of 33% for women Directors.
of corporate governance, ethics and training in the last two years • Reviewed and updated our
honesty in all of our dealings, and Code of Business Conduct and
operate in compliance with the law • Substantiated cases of 0 0 Ethics, Whistleblower Policy and
wherever we work. corruption (number) Disclosure, Confidentiality and
Insider Trading Policy.
4. Protecting the Environment • Water intensity rate (L/tonne 338 309 • Achieved a 9% improvement in water
We exercise utmost vigilance in of ore processed) efficiency. At Tasiast, we achieved
protecting the environment and seek a 49% improvement in water
ways to minimize our environmental • Energy intensity rate (MJ/ 141 139 management and efficiency. Chirano
footprint wherever we operate. We tonne of ore processed) and Round Mountain also improved
will always meet, and where possible water efficiency. Bald Mountain
exceed, regulatory requirements in our recycled 98% of water consumed.
• GHG intensity rate (kg CO2e/ 11.5 11
environmental performance. • GHG emissions intensity decreased
tonne of ore processed)
primarily due to sourcing of electricity
from low GHG-intensive sources.
• Non-mineral waste intensity 0.22 0.19
• Mineral waste increased by 39%
(kg/tonne of ore processed)
due to increases in stripping and
additional volumes of ore arising
• Waste recycling rate 52% 54% from the acquisition of Bald
Mountain and remaining 50% of
Round Mountain in 2016.
5. Responsible Investment • Kettle River-Buckhorn n/a n/a • Received the U.S. Bureau of Land
We consider all aspects of an operation Closure Management’s 2016 Hardrock
or new project – including social, Mineral Community Outreach
environmental, and post-closure issues – and Economic Security Award
in making our investment decisions. recognizing Kettle River-Buckhorn’s
exemplary work in social closure and
reclamation and remediation.
1 On December 21, 2016, a subcontractor haul truck taking ore from the Buckhorn mine to the Kettle River mill went off a U.S. Forest Service road, resulting in the death
of the driver. Although this was not on the mine property, the Mine Safety and Health Administration (MSHA) has asserted jurisdiction over the matter. MSHA’s
assertion of jurisdiction is being reviewed by the Federal Mine Safety and Health Review Commission.
2 The figure previously reported for 2015 also included engagements through social media for one of our sites; extracting these engagements gives an average engagement
per day per site of 35. Note also that 2016 engagement data include Bald Mountain.
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KINROSS CORPORATE RESPONSIBILITY 2016 SUPPLEMENT
6. Human Rights and Indigenous • Substantiated allegations 0 0 • In support of the potential La Coipa
Peoples of human rights violations expansion, we advanced the training
(number) of environmental monitors in the
We conduct all of our activities in
Colla communities.
accordance with accepted standards
in the protection and promotion of • Percentage of security 98% 100% • Continued dialogue with the Chukotka
human rights. We respect the cultural workforce that completed people regarding the new filter cake
and historical perspectives and rights Human Rights Adherence and tailings facility at Kupol and the
of those affected by our operations, in Verification Program training protection of water resources.
particular indigenous peoples.
8. Local Sourcing • Host country procurement, 79% 84% • Through our local business programs,
We seek to maximize employment, % of total spend continued to grow supply chain in our
business and economic opportunities host countries and local communities.
for local communities from our existing
operations and new projects.
9. Sustainable Communities • Local 3 component of total 24% 23% • Procurement on goods and services
We provide lasting benefits to the benefit footprint (% value locally continued to increase during
communities where we work by distributed locally) the year.
supporting sustainable initiatives to • Met our benchmark objective of
develop their social, economic, and • Community contributions $11.5 $10.1 contributions equal to 1.0% EBITDA.
institutional fabric. We recognize that including cash and estimated 1.4% 1.0% • 85% of our donations (monetary
every community is unique and we work in-kind (millions, and as and in-kind) had measurable key
with our community partners to ensure % of EBITDA excluding performance indicators (KPIs).
that our support matches their priorities. impairment)
10. Participate in Global • UN Global Compact (UNGC) n/a n/a • Kinross was an active participant in
Corporate Responsibility • Extractive Industries the International Social Responsibility
Dialogue Transparency Initiative (EITI) Committee of the Mining Association
We maintain an active engagement • Carbon Disclosure of Canada, which resulted in a
and dialogue with our global industry Project (CDP) public declaration by MAC of a
peers, associations, governments, and member commitment to implement
• World Gold Council (WGC)
civil society on CSR best practices and a human rights and security approach
• Devonshire Initiative consistent with the Voluntary Principles
evolving global standards.
• International Network for on Security and Human Rights.
Acid Prevention (INAP)
• International Cyanide
Management Code (ICMI)
3 “Local” refers to the appropriate “local” administrative unit (this varies by site but generally corresponds to municipality, county, or district).
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The benefit footprint is our metric for tracking the distribution of our direct economic
impact. The amount is significant. In 2016, we spent approximately $2.6 billion in our
host countries, representing 74% of total revenue we generated from metal sales
during the year.
Payments to Governments
Out-of-
Royalties Income & Duties, Total to In-Country In-Country Country
Current Year Revenue & Fees Corporate Tax Other Gov’t Suppliers Wages Community Suppliers Retained
Brazil 599.6 7.0 13.6 32.8 53.4 337.9 54.3 0.7 0.0 153.3
Chile 219.4 0.0 4.5 1.2 5.7 117.1 53.1 0.8 3.6 39.2
Ghana 258.5 13.7 11.8 18.2 43.7 141.5 43.4 1.8 51.9 (23.8)
Mauritania 208.0 6.5 2.6 31.8 40.9 174.9 51.5 1.4 148.1 (208.7)
Russia 919.2 58.7 127.8 4.6 191.1 206.7 74.6 0.5 91.9 354.3
USA 1,267.3 3.1 35.2 2.3 40.6 657.1 288.6 1.1 3.4 276.6
Corporate 0.4 1.8 6.9 9.1 61.6 134.4 0.6 34.8 (240.4)
Total 3,472.0 89.4 197.3 97.9 384.5 1,696.8 699.9 6.9 333.7 350.3
11%
18% 15%
10%
56%
36%
Revenue from
Metals Sales
16%
0.2% 15%
23%
Host Country Local Host Country Region Host Country Outside Region Other Countries Corporate & Other
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PERF OR M A N CE O VE R VI E W
WORKFO R CE
14 10 6 11
Brazil 99.4%
83 83 86
Canada 98.3% 67
90 94 89
Chile 99.0% 86
Ghana 97.2%
89.7% Management Junior Top Board of
1
Mauritania
management management Directors
Americas Russia
positions 2 West Africa
positions 3 Total
Russia 98.5%
Spain 65.1% Male Female
Male Female
USA 99.9%
TOTAL 97.4%
COMM U N IT Y
1.40
3.0 0.6
3.0 0.6 .05
.05
1.40
0.46
0.78
0.11 0.06
0.46
0.78
0.11 0.06
0.21 1.07
0.75 0.81 1.76
6.2
1.39 0.21 1.07 6.2
0.75 0.81 1.76 0.51
1.39
0.51
Sites (Monetary)
Brazil Chile Ghana Mauritania Russia USA Sites (Monetary)
Brazil Chile Ghana Mauritania Russia USA Sites (In-Kind)
Sites (In-Kind)
Corporate (Monetary)
Monetary
Monetary Corporate
3rd (Monetary)
Party (Estimated)
In-kind
In-kind 3rd Party (Estimated)
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PERF OR M A N CE O VE R VI E W
COMM U N IT Y (CON TINU ED)
2016 COMMUNITY INVESTMENTS
2016 COMMUNITY INVESTMENTS BY CATEGORY BY CATEGORY
(%) (% )
Donation In-kind Beneficiaries
(%) (%) (10,000’s)
Civic groups 7.8 1.0 18.8
Community
Activities 30.8 13.8 34.3
Education 10.3 5.4 7.7
Environment 6.7 2.4 13.2
Health and
Civic Community Education Environment Health Humanitarian Local Local Youth Nutrition 10.5 70.5 19.9
Civic
Groups Community Education Environment
Activities Health
and Nutrition Humanitarian Local
Business Infrastructure Local Humanitarian
Youth 5.0 2.9 1.9
Groups Activities and Nutrition Business Infrastructure
Donation (per cent) Local Business 15.1 0.7 3.0
Donation
In-kind (per (per
cent) cent) Local
In-kind (per cent) Infrastructure 11.9 1.3 10.9
Youth 1.9 1.9 2.1
ENVIR O N M E N T
82%
( L I TR ES/TONNE OF OR E PROC ESSED) (REC YC LED WATE R ) (% )
of the WATER
CONSUMED at
327
356 341 338 309 82 83
81 82 our operations was
78
RECYCLED in 2016
12 13 14 15 16 12 13 14 15 16
DirectEnergy
Direct Energy Scope Scope
1 (kg CO
1 (kg2e/tonne oreore
CO2e/tonne processed)
processed) Non-Mineral
Non-Mineral Wastes
Wastes Disposed
Disposed On-Site
On-Site
Indirect
IndirectEnergy
Energy Scope Scope
2 (kg CO CO2e/tonne
2 (kge/tonne oreore processed)
processed) Non-Mineral
Non-Mineral Wastes
WastesDisposed Off-Site
Disposed Off-Site
2
Non-Mineral
Non-Mineral Recycled Wastes
Recycled Wastes
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In addition to quantitative performance indicators and other data, Kinross believes our
approach to addressing key stakeholder issues is an important gauge of our performance.
Our 2015 Corporate Responsibility Report (pages 64-71) provides a comprehensive
review of the most significant stakeholder issues facing our operations and projects.
Significant developments since that report include:
PARACATU, BRAZIL
Quilombolas
Work is ongoing for a land donation proposal made to the Amaros community. Meanwhile, in 2016 the São Domingos
community reviewed and approved the social investment plan proposed by Kinross. Kinross has partnered with that
community on several projects, including construction of a community centre; a biscuit factory providing employment
for local women; cultural programs; and an environmental monitoring station, among others.
Trespassers
Kinross has continued to apply human rights principles in all aspects of security operations in response to recurring
incidents involving trespassers entering industrial areas to attempt to steal gold from flotation tailings. Trespassing in
this area is an inherently dangerous and high risk practice due to the confined space of the tailings pipeline. Kinross
has implemented numerous physical barriers to impede access to this industrial facility. Given community concerns
about the overall crime situation in the city, Kinross is also working with local stakeholders to pilot programs focused
on teaching life skills to youth.
Community Health
The latest round of scientific studies on the potential human health effects related to the presence of arsenopyrite in
the ore mined at Paracatu were published in early 2016, and confirmed previous findings that the overall health risk is
low and comparable to cities in Europe and the U.S. Detailed information, including copies of the studies themselves,
is available at http://arsenio.kinross.com.br/en/
A mediation process regarding allegations of damage to houses as a result of vibration from mining activities
was successfully concluded in late 2016. The final report produced by the NCP can be found at
http://www.pcn.fazenda.gov.br/assuntos/english/final-statements.
MARICUNGA, CHILE
Maricunga Wetlands
In response to Superintendencia del Medio Ambiente (SMA) resolutions alleging pumping from groundwater wells
has impacted wetlands located 7 km downgradient of the mine’s water supply wells, Compaiña Minera Maricunga
has submitted legal and technical arguments and reports by experts on wetland vegetation and analysis of long-term
satellite imagery and groundwater hydrology criticizing and challenging the evidence relied upon by the Chilean
agencies. While to date there has been no ruling on the technical facts of the case, a judicial decision concluded that
the SMA’s sanction was enforceable, and in response, the Company placed the mine into suspension at the end of
July 2016. The Company had previously planned to suspend mining in Q4 2016 due to other capital priorities in its
global portfolio. As a result, approximately 300 employees were retrenched after the mine was placed into temporary
suspension. The legal process is ongoing.
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LA COIPA, CHILE
Phase 7 Permitting
In October 2016, a local Colla community challenged the approval of the Declaration of Impact to Environment (DIA)
permit for La Coipa’s Phase 7 project. The Court of Appeals rejected the legal challenge on January 13, 2017, and the
plaintiffs did not exercise their right to appeal. As a result, there are no ongoing legal actions. Of note, representatives
of three other local Colla communities had filed legal actions and documents with the same court, rejecting the
arguments made by the first indigenous community in its October filing.
An Administrative Order (AO) issued in July 2016 has been stayed while other associated court decisions are pending.
Further details are available in the 2016 Annual Information Form (page 64).
In September 2016, the U.S. Environmental Protection Agency listed the so-called “Bonita Peak Mining District,”
including areas impacted by Sunnyside Gold Corporation (SGC)’s operations and closure activities, on the National
Priorities List pursuant to the U.S. Comprehensive Environmental Response, Compensation, and Liability Act (CERLCA).
SGC has challenged portions of the CERCLA listing in the U.S. Court of Appeals for the District of Columbia and is
contesting liability. The Silverton Caldera is highly mineralized, and acid rock drainage and poor water quality were
prevalent long before the advent of mining. The Silverton Caldera also hosted dozens of mines and mills between the
1870s and 1985, but SGC was only formed and acquired the Sunnyside Mine in 1985 and was involved in operations
from 1986 until 1991 using modern techniques and under the modern era of environmental regulation. For additional
detail, see the 2015 Corporate Responsibility Report (page 123) and the 2016 Annual Information Form (pages 87-88).
TASIAST, MAURITANIA
Illegal Mining
In 2016, there was a significant influx of people onto Kinross concessions looking for gold. Although this did not impact
mine operations, there were a number of injuries and other incidents among these artisanal miners, and extensive
environmental impacts in the areas with the most activity. In October 2016 the Government of Mauritania mandated that
all artisanal miners demobilize from the area, which occurred peacefully. Since then, artisanal miners continue to access
Kinross concessions clandestinely, usually at night. This work is dangerous. Kinross ambulance, paramedics, and Emergency
Response Teams have been deployed on several occasions to provide support as requested by local authorities.
Workforce
As previously reported, in June 2016 operations were suspended due to the Mauritanian Ministry of Labor’s decision
to prohibit certain expatriate employees from working at site due to allegations of invalid work permits. The Company
and the Government of Mauritania resolved the expatriate work permit issue as part of reaching a mutually acceptable
“Mauritanization” plan to increase the number of local workers who have the necessary skills and experience to work at
Tasiast, a requirement under Mauritanian law. Tasiast resumed normal mining and processing activities in August 2016
and a new collective agreement was signed in October 2016. Kinross and the Government maintain regular meetings
to review progress on the “Mauritanization” plan.
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KINROSS 2016 CR DATA TABLES
2016
2 01 6 CORPORATE
CO R PO R AT E RESPONSIBILITY
R E S P O NS I B I L I T Y DATA
D ATA TABLES
TAB LES
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KINROSS 2016 CR DATA TABLES
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KINROSS 2016 CR DATA TABLES
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KINROSS 2016 CR DATA TABLES
compliance matters in 2011 through the date of the Agreement related to water management. The Agreement includes a fine of $80,000 and $180,000 of
supplemental environmental remediation projects within the Buckhorn vicinity. The Agreement also stipulates other procedural and water quality protection activities.
17 Water discharges at Kettle River were reclassified as "surface water discharges" by Washington state authorities in 2014.
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@KinrossGold