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3 Δεκ 2012 (πριν από 4 χρόνια και 7 μήνες)

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Cyanide Use i
n Gold Mining

Implications

for Kyrgyzstan









The Biotechnology Institute
of the National Academy of
Sciences of the Kyrgyz
Republic

1


Introduction

The use of cyanide is widespread in the global gold industry. It makes possible the cost
-
effective
extraction of gold from ores which would otherwise be prohibitively expensive to
process
.
However, it is also a highly toxic chemical which requires careful handling in order to mitigate the
health risks which it presents.

This paper examines several case studies of cyanide use at mines worldwide, which are all in close
proximity to host co
mmunities. It documents the challenges which such mines face from cyanide,
the methods which mining companies have used to overcome these challenges, and it looks at the
impacts of these mines, both positive and negative,
on

local communities.

The aim of the paper is to provide an indication of the likely impacts of cyanide use by
environmentally responsible gold mining companies in Kyrgyzstan, by using relevant examples
drawn from around the world. The research has been produced
by the

collabo
ration
of

a
Kyrgyzstan
-
based research company, Oxus International, the
Bishkek
-
based
NGO Eco
Safety, and
the
Biotechnology Institute of the
National Academy of Sciences

of the Kyrgyz Republic
. It has been
funded by the mining company
Manas Resources
, who e
xercised no editorial control over the
findings of the research or the writing of the report.


Cyanide: Usage, Risks and Management

Cyanide has been used in the mining industry for over a hundred and twenty years, to extract gold
and silver from ores which would otherwise be commercially
un
viable.
Gold m
ining currently
accounts for
nearly

18% of annual cyanide use worldwide, with the
rest used for other industrial
purposes such as plastics and pharmaceuticals.
1


Industrial cyanide is synthesized in factories, but cyanide is a chemical which also occurs naturally.
It can be found in over 2,000 plant species including almonds, apple seed
s and sweet potatoes.

2


Continued e
xposure
to concentrated cyanide without protection
can lead to chronic health
problems, including nerve problems, nausea, headaches and breathing problems, and high doses
can even lead to death. However, cyanide does no
t cause cancer,
3

and has not been linked to
mutations or birth defects in humans.
4

5

Fortunately, it
is not

persistent and it degrades through
natural physical, chemical and biological processes into other, less toxic chemicals. It does n
ot
accumulate in
the food chain
.

6


“If cyanide is used improperly, it is toxic to humans and the environment. There
is no question regarding this matter. However, the same statement applies to
common household products like bleach, which contain chlorine, a chemical as
to
xic as cyanide.”


-

Dr. T. I. Mudder, speaking on behalf of the European Mineral Industry, 2002.
7

2



Nearly all gold production in the world
-

over
8
0%
-

utilises cyanide for extraction
8
; other methods
include panning, flotation, or amalgamation with
mercury
.
For low ore concentrations
, cyanide

is

the most economical way to extract gold and, despite years of research, there is no other process
which has proven to have both lower environmental risks and acceptable economic outcomes.
9





Above is a map
of

the
world’s major gold mines
.
10

As it
shows, a
significant

proportion

of
these are
in countries such as the USA, Canada and Australia, where social and environmental regulations are
stringent. Cyanide is used
in many mines in these countries, and the Government of Australia notes
that t
here have been no documented accidental human deaths due to cyanide poisoning in the
Australian and North American mining industries in the last 100 years.
11

T
here are around 460
gold mines which use cyanide worldwide,
12

and
there have been 8 cyanide
incidents in the industry in the last 20 years
that

the Australian Department of Resources, Energy
and Tourism consider ‘major’


a figure which the mining sector is proud of.
13




Figure
1
-

Major gold mines worldwide

3


However,
when spills have occurred, they have received widespread public attention.
In 2000
,

a
major spill at the Baia Mare mine in Romania fuelled calls in several countries for cyanide to be
banned in gold mining. The increased scrutiny prompted an unpr
ecedented response from
industry, resulting in the International Cyanide Manag
ement Code
14

-

developed jointly
with

the
United
Nations Environmental Programme
, the International Council on Mining and Metals, the
Gold Institute, the World Wildlife Fund for
Nature and the Internati
onal Finance Corporation
.

The Code aims to address the major causes of cyanide
-
related accidents and, according to Dr T.I.
Mudder, addressing the European Union in 2002, “
If the basic principles and procedures [of the
code] are foll
owed, long term environmental impacts can be avoided not only during the operation
of a mine, but also during its decommissioning and closure.”
15

The most common causes of spills, which the Code aims to address, are incidents during
transportation and overf
lows or leaks from tailings ponds. Vehicle accidents account for most

spills
during transportation, whereas t
ailings leaks are often the result of inclement weather, poor dam
engineering, and human error.
Included in Appendix A is
a table of all cyanide in
cidents related to
gold mining from 1992 to 2008, which have been termed ‘major’ by the Australian Department of
Resources, Energy and Tourism.



Case Studies

Below are three in
-
depth case studies of active open
-
pit gold mines, which were selected because
of
their proximity to residential areas, their use of cyanide leaching for gold extraction, and the fact
that sufficient information is publicly available on ea
ch site for research purposes. Eight further
examples of mines with similar
characteristics

are
provided in Appendix
B
.










4


Martha Mine (Waihi, New Zealand)









Overview

The Martha Mine has been
operat
ing

since
as far back as the nineteenth century, but modern
exploration began in the late 1970s.
17

Newmont
, an American company,

took over the Waihi Gold
Mining Company in 2002 and has run the mine ever since.

The historical presence of the mine has meant that the town of Waihi grew around the site and
today, as can be seen in the maps, the pit is in
the centre of the town. The town has a total
population of approximately 4,700 and the mine is less than 90 minutes away from

Auckland,

New
Zealand’s

largest city.
18


Fast Facts:
16


Owner

Newmont Gold

Initial Production

1988

Gold Production

108,000 ounces in 2010 (all
Waihi operations)

Proximity to
community

Immediate

Figure
2
-

The Martha mine sits in the middle of Waihi. The area shaded red indicates a hill re
-
vegetated to reduce noise.

5


Cyanide Usage

The local community surrounding the Martha mine are often vocal about aspect
s

of mining which
they dislike. However, during the course of this research, no evidence was found of oppos
ition to
cyanide use. Newmont
is a signatory to the International Cyanide Management Code, with which it
is assessed as being “In Full Compliance.”
19


The process of using cyanide to extract gold was first used commercially at the Crown Mine in
Karangahake, located near the Waihi mine, in
1889
.
The Waihi mines have used cyanide since their
re
-
opening in 1988, and there has never been a notable cyanide

incident at the site.

T
his area has
one of the longest histories of cyanide usage without incident than any other region in the world.


According to the company:
20

Our water treatment plant has a pre
-
treatment stage to destroy cyanide. Following treatment
surplus
water is discharged to the Ohinemuri River subject to a number of consent conditions. This discharge
dilutes with river water. Following mixing the cyanide level is well within the in
-
stream value …
considered to be protective of aquatic life.

Impact on the Community

Since 2006, Newmont has paid NZ$46 million in tax and royalties through its Waihi operations.
(~US$36.6m).

It has spent almost NZ$825 (~US$675) million on facilities, goods and wages. On
average
,

82% of this is spent in New Zealand,

including 32% within 30km of Waihi. The mine
directly employs approximately 350 people, and estimates another 350 are employed indirectly.
21


The University of Queensland Centre for Social Responsibility in Mining found, in 2009, that local
people generall
y accepted the mine,
22

although concerns such as noise, dust and pollution still
required constant communication between the mine and the community.

In the words of one of their local
interviewees,

“... [Newmont] has crafted a
compromise with the local
community. There are impacts
and effects, but they support,
sponsor, donate, hold events,
create opportunities ... it’s by
design, but they have worked to
be seen as ‘responsible’.

Plus, they’ve been responsive
when people raise issues. It’s a
package


on balance they are
acceptable to most people.”

$0
$100
$200
$300
$400
$500
$600
$700
Expenditures on Waihi Operation
(in millions)
Outside of NZ
In and around Waihi
In NZ (non-Waihi)
Figure 3
-

The p
roportion of Newmont's money from Waihi operations which
stays in New Zealand.

6


Chatree

Mine (Chatree,
Thailand
)















Fast Facts:


Owner

Kingsgate
Consolidated Ltd

Initial Production

2001

Gold Production

93,000 ounces in 2009

Proximity to
community

1 km

Figure
4

-

The Chatree

mine. Blue indicates the active mine
area, while yellow indicates future development. The areas in
red are populated, and most of the land surrounding the mine
is used for farming. The black line indicates where the road
was diverted by the mine. The pict
ure below demonstrates
the 1 k
m

distance between the mine and the western
settlement.

7


Overview

Owned by Kingsgate Consolidated Ltd, an Australian mining company,
Chatree

is Thailand’s first
modern, operational gold mine. The mine began as a single large pit but has since expanded.
Pending licensing, it will continue expansion to seven pits. The mine has a capacity of 2.3 million
tonnes

per year of throughput
,

but this will likely expand to 5 million
tonnes

soon.

Cyanide Usage

Chatree employs a C
arbon in Leach (C
IL
)

type of
vat leaching system for gold extraction

from
the
cyanide leach solution
. There is zero discharge of liquids from the site and cyanide level
s in the
tailings are very low. The average level of cyanide in tailings is nearly 1/3 of allowable limits set by
the Thai government.
23

The company is one of the original signatories to the International Cyanide Management Code

(ICMC)
, and the Chatree min
e has been audited and found fully compliant.
Cyanide levels at
Chatree’s tailings storage facility are substantially below the ICMC’s threshold.
24

The mine recorded five short term overages of cyanide concentrations
in the tailings
storage facilit
y

during
production through 2008/09. Three of the overages were attributed to an abrupt change in
ore grade and two were caused by short term equipment failures which were rapidly rectified.
Despite these overages, the company assessed that levels of cyanide discha
rged to the tailings dam
represented no hazard to any component of the environment.
25

Impact on the Community

The mine has attracted little attention from the press or environmental groups, though Kingsgate
has reported some concerns from locals of cyanide
contamination of water supplies, dust, and
noise.

In
201
0
, villagers filed a
petition

in a local court to have
Kingsgate’s

Thai subsidiary, Akara

Mining,
stripped of its license for severe respiratory illnesses caused by blasting and contaminated drinking
water.
26

The company vehemently denies the claims and states that independent analysts have
concluded that no contamination had occurred.
27

As of F
ebruary 2012, a decision has not been
made on the petition.


The company’s 2009 sustainability report recorded $7.5 million dollars in royalties to the Thai
government. Of this, 60% went directly to local authorities. The company also promotes a ‘Buy
Thai
’ policy, and direct community development contributions were $221,984 in 2008 and
$151,556 in 2009. The mine employs over 1,000 people, 99% of them Thai. Approximately 80% of
the workforce is sourced from local villages. It has
supported
surrounding commu
nities through a
range of projects

focused on developing long
-
term income
-
generating ventures, education
initiatives, health services, and programs to support cultural traditions
.

Kingsgate claims that based on publicly available data
,

Chatree is consider
ed the safest mine in the
world.

28

8


Ahafo

Mine (Ahafo,
Ghana
)

Fast Facts:


Owner

Newmont Gold

Initial Production

2006

Gold Production

545,000 ounces in 2010

Proximity to
community

5 km






Figure
5

-

The Ahafo

mine (centre) offered relocation for 1,700 households (red) near two neighbouring villages
(yellow), but several farmers and other villagers chose to remain near the mine (blue). Not all areas marked in
blue may remain today as the mine has received a con
stant trickle of villagers looking for resettlement


likely
because of the attractive pay
-
out. New mining leases are shown in purple.

9


Overview

Ahafo

is located in central Ghana, and is a relatively young mine which has faced considerable social
challenges. The ore deposit is located under an area which is home to 1,700 households, primarily
engaged in traditional agricultural industries.


Cyanide Usa
ge

Ahafo employs CIL leaching for gold extraction. The mine
bec
a
me a signatory to
the International
Cyanid
e Management Code in 2008 and i
s audited
as
“fully compliant”. There were six reportable
releases of
solutions containing
cyanide
at the mine
in 2010, none of which exceeded applicable
limits or had any adverse health or environmental effects.
29

In 2009
,

a tailings pond overflowed because of a combination of heavy rains and a three
-
day
maintenance shutdown.
C
yanide concentrations

in the release
were low
,

but

Newmont was later
fined $5 million for what the government deemed a slow response.
30

Following

the incident,
Newmont claims to have implemented procedures to prevent overflow during heavy rain, improve
detection systems, and accelerate communi
cation with the community in the case of an event.


Impact on the Community

Newmont Mining
calculates

that it generates nearly 10% of Ghana’s total exports

and 1.3% of GDP,
and directly and indirectly produces some 48,000 jobs in Ghana. It also states that it has
provided

99 local companies with nearly USD

$6 million in contracts in 2009, and

supported

more than 400
jobs, not including direct mine employment
.
31

Before operations began, NGGL resettle
d approximately

1,700 households

after extensive research
and community engagement initiatives
.

In 2010, an independent research firm commissioned by Newmont Mining, Synergy Global found
four main challenges to mine
-
community relations at Ahafo: ensuring that employment eligibility
procedures were fair and legitimate; addressing claims of compensation adequately; ensuring the
legitimacy of community representative forums; and limiting the potential for resistance to
mining.
They commented that “despite some very difficult and complex interactions with the community …
the Ahafo Mine has established positive community relations over the period of mine construction
and the initial operational period.”
32





10


Cyanide Le
a
ching in the Kyrgyz Gold Industry


Gold is Kyrgyzstan’s leading mineral commodity, due in part to the Tian Shan
metallogenic belt
that
runs through Central Asia.
33

The Kumtor gold mine is the largest gold mine in Kyrgyzstan. It is
owned by Centerra Gold, a

Canadian

company, which began construction of the mine in 1994 and
production in 1997.
34

Preliminary data from 2011 suggests that approximately 580,000 ounces of
gold were produced last year. It contributes significantly to Kyrgyzstan’
s annual Gross Domesti
c
Product


between 2.5% and

8.5% according to the company


and in total has spent or contributed
over $1 billion within Kyrgyzstan.
35


The Kumtor mine is the biggest and most well
-
known gold deposit in Kyrgyzstan, but the country
contains many other depos
its, some of which have previously produced gold, some that are in the
exploration phase and others that are untapped as of yet. In addition to Kumtor, the state
-
owned
mining company Kyrgyzaltyn produces gold at its Makmal mine, though at a much smaller sc
ale.

Cyanide use has received highly critical media attention in Kyrgyzstan, since
about 1800
kg of solid
sodium cyanide bound for the Kumtor mine

was spilled into the Barskoon River in 1998.
Newspaper

reports at the
time carried headlines such as “
Ecological disaster
” and “The Second
Chernobyl.”

However, analysis conducted

by
an

int
ernational scientific committee,
tasked to assess the spill’s
impacts
,

found that such claims were

highly exaggerated and that long
-
term effects were
negligible.
36

The

Kyrgyz NGO EcoSafety
reviewed the incident for this report and

estimated

that,
although vapors of hydrocyanic acid were released from the spill, they

would not have exceeded
1/300th

of

the Russian
-
standard safe limit of 0.01mg/l

in the nearest populated a
rea of Barskoon, 8
km away
.

Similarly, soil contamination of cyanides never rose above one fifth of the recognized safe
limit, and after 13 days had reduced to less than one thousandth of their peak concentration

due to
the rate at which

cyanide breaks dow
n through natural processes
.
37

38


EcoSafety also noted that
criticism of

gold mining companies in Kyrgyzstan
frequently

occurs
due
to poor

communication between companies and local people
, rather than because of fundamental
environmental issues.

The case of the Kumtor cyanide spill, and the other example mines featured in this

report
,

suggest
that although cyan
ide use can never be risk
-
free
,

it is possible to manage these risks

within the
Kyrgyz mining industry
. Mines which use cyanide can operat
e safely and can provide a range of
benefits to neighboring communities, provided that the company
involved
is committed to acting
responsibly, maintains good communication with local people, and has adequate safety measures to
prevent and contain cyanide
-
related
incidents
.



11


Appendix A: Major cyanide incidents
:

1992
to

2008
*

39

40

41

42

43


Mine, Company

Location

Date

Description

Not disclosed

Northern Territory,
Australia

February 2007

A

road train carrying 60 tonnes

of solid
sodium cyanide tipped over and spilled.
Contaminated water and soil were cleaned
up and disposed of at a nearby mine site.

Not disclosed

Northern Territory,
Australia

February 2002

Cyanide solution was allegedly released on
the roadside by a del
ivery truck.

Tarkwa, Gold Fields
Ltd

Wassa West District,
Ghana

October 2001

Water contaminated with cyanide entered
the Asuman River, killing fish and
disrupting local water supplies.

San Andres,
Minerales de
Occidente

Copan, Honduras

January 2002

Confusion over valve numbering resulted
in the dumping of 1200 litres of
cyanide
solution into the Lara R
iver. News reports
said the spill killed 18,000 fish.

Tolukuma,
Dome
Resources

Papua New Guinea

March
2000

A pallet of dry cyanide fell from a
helicopter. 150kg of solid sodium cyanide
was
spilled into a local river
,

and then

cleaned up immediately.

Aurul, Esmerelda

Baia Mare, Romania

January 2000

The wall of a tailings dam failed,
spilling
100,000 m
3

of tail
ings
, which contain
ed

cyanide,

into the Tisza
R
iver. Fish and
water supplies across much of Eastern
Europe were affected.

Kumtor, Cameco

Barskoo
n, Kyrgyzstan

May 1998

A truck spilled
~
1,800 kg o
f sodium
cyanide into the Barskoon R
iver on its way
to the
Kumtor mine.

Northparkes, Rio
Tinto

New South Wales,
Australia

May
1995

Improperly stored and treated tailings led
to the deaths of thousands of birds at a
tailings
pond
.


*Please note that while other cyanide incidents may have occurred more recently, t
here are
no reliable data available
following 2008.


12


Appendix B
: Further Examples of Open
-
Pit Gold Mines that E
mploy
Cyanide for E
xtraction

1)

Geita Mine, Tanzania


Category

Description
44

45

46

Location, Owner

Geita, Tanzania, AngloGold Ashanti

(South African)

Initial Production

2000

Throughput / production

4.7 million to
n
n
e
s total throughput. 357,000 ounces gold in 2010

Cyanide Usage

Heap leaching

Proximity to community

Approximately 1 km from the town of Geita.

Royalties to host country

$44 million from 2008
-
2010

Employment figures

3,116 employees in
2008

Other contributions to
host country

Community investment of $1 million in 2010

Construction of a new water tower and transport system for the
community. The company also constructed a girls’ secondary school.

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s瑲慴敧i敳

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c潮oaining⁲敳i摵d氠汥l敬s映捹慮i摥d

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㈰㄰2

Figure
6

-

The
Geita mine on
the left, with the
town of
Geita 1
km away on the
right
. As
this
satellite image
is from 2007, it
does not reflect
more recent
mine
expansions
(Google Earth
image).


13


2)

The
Kalgoor
l
ie

Super Pit
, Australia











Category

Description
47

48

49

Location, owner

Kalgoorlie, Australia, KCGM (50% Newmont

-

American
, 50% Barrick
-
Canadian
)

Initial Production

Founded in 1989, production shortly afterward

Throughput / production

758,000 ounces of gold in 2010

Cyanide Usage

CIL vat leaching

Proximity to community

Immediate adjacency (see map above)

Royalties to host country

$13.8m in 2007.

Employment figures

550 personnel working on site

Other contributions to
host country

$467m spent in Australia. $56m on employee payroll. $167k on
community investment. $3.7m in taxes. $100k on compensation.

Common social and
environmental concerns

Because of its location adjacent to the community, KCGM fields
concerns about blasting acti
vity, noise, dust and air emissions.

Environmental protection
strategies

The mine is certified by the International Cyanide Management Code.
There are excess capture and storage facilities for extreme weather
incidents. Netting over tailings ponds and noi
se cannons deter birds
from drinking contaminated water.

Past cyanide incidents

In 2006
,

the company was fined $25,000 for spilling water containing
cyanide onto a nearby lease. The cyanide level of the water was within
health guidelines but a penalty w
as paid because the company did not
have permission to dump the water. In 1993
,

a tailings pond also
leaked onto a nearby lease
,

incurring a $25,000 fine.

Response to incident(s)

KCGM implemented new guidelines for handling tailings water.

Figure
7

-

The Super
Pit mine in
Kalgoorlie,

Australia
(Google
Earth
image)

14


3)

Tarkwa
,
Ghana


Category

Description
50

51

52

Location, owner

Tarkwa, Ghana, Gold Fields Ltd.

(South African)

Initial Production

1997

Throughput / production

12m
tonnes per annum throughput.

721,000 ounces gold in 2010.

Cyanide Usage

Both heap
leach
and CIL leaching

Proximity to community

1 km from nearby farms, and 5k from denser village populations.

Royalties to host country

Not disaggregated from taxes (see
“other contributions” below)

Employment figures

2,154 total employees

Other contributions to
host country

$178 million on salaries and contractors, $122.5 million on taxes, $726
million on procurement, $7 million on social investment
.


Schools and
scholarships for local children. Improved road access to
remote areas and delivery of electricity and potable water to many
adjacent communities. Investment in local businesses.

Common social and
environmental concerns

Compensation for resettlement, jobs
for locals and water pollution.

Environmental protection
strategies

The mine is certified by the
ICMC
. Gold Fields is a founder of
Leadership for Conservation Africa (LCA).

Past cyanide incidents

In October 2001
,

a damaged pipe leaked tailings

containing

cyanide

into a river.

Response to cyanide
incident(s)

The company responded by adding chlorine detoxificants to the river
,

but later research claimed this response may have caused more
Figure
8

-

The
Tarkwa community
(red) runs
along
the east side of
the mine.
(Google
Earth image)

15




4)

Golden Pride
, Tanzania


Category

Description
53

Location
, Owner

Nzega, Tanzania
, Resolute Mining

(Australian)

Initial Production

1998

Throughput / production

2.4 million
tonnes

of throughput and 122,921 ounces of gold for 2011

Cyanide Usage

CIP vat leaching

Proximity to
community

Less

than 500 m from several farms. Several km away from nearest
town.

R
oyalties to host country

$5.4 million in royalties in 2010

Employment figures

Unknown

Other contributions to
host country

$19.2 million in corporate tax, $5 million in employer taxes,
and $1.4
million in licencing and statutory fees and taxes.

Housing for teachers, a new nursery school, a police station, and paid
tuition for several students at local schools. Supplies of medications,
health supplies, and health training courses for loca
l clinics.
Agricultural training and a well
-
drilling program.

Common social and
environmental concerns

Employment of locals. Cyanide and heavy metals reaching public
water supplies.

Environmental protection
Rehabilitation plans, tracking emissions, monitoring tailing
storage
damage than the initial spill. The chlorine led to a small fish kill.

Figure
9

-

The
Pride mine
with
populated
areas shaded
in red. The
area directly
around the
mine is rural
farmland.
(Google Earth
image)

16


strategies

facilit
ies

and managing water usage.

Past cyanide incidents

None reported.

Response to incident(s)

N/A


5)

Morro do Ouro, Brazil


Category

Description
54

55

56

Location
,
Owner

Paracatu, Brazil
,
Kinross

(Canadian)

Initial Production

1987

Throughput / production

482,397 ounces of gold produced in 2010
.

Cyanide Usage

CIL leaching

Proximity to
community

A few hundred meters from closest residents.

R
oyalties to host country

Figure unavailable.

Employment figures

1,165 people

Other contributions to
host country

$249 million within Brazil
in 2009,
(excluding state and municipal
contributions), $5.4 million within the state of Minas Gerais (excluding
the municipality of Paracatu) and $44.5 million within Paracatu.
The
company gives preferential treatment to local applicants and tries to
source produc
ts and services locally.

The mine also invests money into job skills training, health and
education initiatives, Rico Creek revitalization, a project to improve
water flow at Espalha Creek, and others.

Environmental protection
strategies

The Paracatu mine

has been audited and approved by the
International Cyanide Management Code. In 2006 they were awarded
Figure
10

-

The Morro
do Ouro

mine and the
immediately
adjacent
town of
Paracatu,
Brazil
(Google
Earth image)

17


the Top Environmental Quality Award from Ordem do Brasil
.

Past cyanide incidents

None reported.

Response to incident(s)

N/A


6)

Yanacocha
, Peru


Category

Description
57

58

59

Location, owner

Yanacocha, Peru, jointly owned by Newmont (51.35%

-

American
),
Compañia de Minas Buenaventura (43.65%

-

Peruvian
), and the

IFC
(5%)

Initial Production

1993

Throughput / production

1.5 million ounces of gold produced in 2010

Cyanide Usage

Heap and vat leaching

Proximity to community

30 km from Cajamarca. Adjacent

to many small settlements.

Royalties to host country

$169

million in 2009

Employment figures

Employs 2,300 permanent employees and 6,700 contractors.
Approximately 97% of all direct and indirect employees are Peruvian
and about half are local to the region.

Other contributions to
host country

For 2009: $339 million paid in income tax, $68 million in social
investment, $58 million in environmental investment.

Investment in road and sanitation projects. Social programs focused
on education, health, agriculture, job training and food security.

Common social and
environmental concerns

General environmental concerns

and mistrust of the company.

Environmental protection
Regular water monitoring, with results posted publicly. $66.5m
spent
Figure
11

-

The
Yanacocha
mine with
populated
areas
shaded in
red.
(Google
Earth
image)

18




7)

Cripple Creek, USA


strategies

on sediment control and other environmental progr
ams

in 2004
.

The mine operation is in full compliance with the International
Cyanide Management Code.

Past cyanide incidents

None reported

Response to incident(s)

N/A

Category

Description
60

61

62

Location
, Owner

Cripple Creek, Colorado (USA)
,

AngloGold Ashanti

(South African)

Initial Production

1994

Throughput / production

218,000 ounces were produced in 2009

Cyanide Usage

Heap leaching

Proximity to community

The mine is located between the towns of Victor (pop 445) and Cripple
Creek (pop 1,115), and the
closest residences are ~1 km away.

Royalties to host country

Not available.

Employment figures

The mine regularly employs ~600 people, ~400 permanently.

Other contributions to
host country

$7 million paid in annual taxes in 2009 and the mine claims to
indirectly create
more than 4

jobs in the nearby towns for every job at
the mine.

Common social and
environmental concerns

Locals worry about health impacts of mining, dust, and noise.
Communi
ty political support is a key issue for the mine.

Environmental protection
The company issues annual reports to the communities on the total
Figure
12

-

The Cripple
Creek mine
is in the
centre in
white,
flanked on
the right and
left by the
towns of
Cripple
Creek and
Victor,
respectively.
(Google
Earth image)


19




8)

Yanqul
, Oman



Category

Description
63

Location
, Owner

Yanqul, Oman
,
Oman Mining Company (O
mani
)

Initial Production

1994

Throughput / production

~1.8 million
tonnes

of throughput and ~16,000 ounces of gold for
2009.

Cyanide Usage

Le
a
ch type undisclosed

Proximity to
community

Half a
kilometre

to nearest village.

R
oyalties to host country

Not available.

Employment figures

326 total, 260 Omanis.

Other contributions

to
host country

Not available.

Common social and
Water is an incredibly scarce and important resource here, so the
strategies

number of toxins, chemicals and metal compounds that it releases into
air/water/land. They are also
working to reclaim old mining land.

The mine operation is in full compliance with the International
Cyanide Management Code.

Past cyanide incidents

None reported

Response to incident(s)

N/A

Figure
13

-

Yanqul

mining
facilities
(circled)
and the
local
village
shaded
in
red.
(Google
Earth
image)

20


environmental concerns

overwhelming concerns are with water.

Environmental protection
strategies

An extensive, independent water survey was conducted recently and
found no effect on water chemistry in any of the surrounding villages
or water sources. The tests looked for cyanide, salts, sulphur, metals
and other contaminants often associated with mini
ng.

Past cyanide incidents

None

Response to incident(s)

N/A


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