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Resolute Mining Limited Environmental & Social Information 2021
10548_rns_2021-03-16_8f2ad0ce-f94f-4779-b82c-f1c486cbce70.pdf
Environmental & Social Information
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2020 Sustainability Report
Contents
| About this Report | 1 | ||
|---|---|---|---|
| Company Profile and 2020 Review | 2 | ||
| Interim CEO Message to Stakeholders | 4 | ||
| 2020 Highlights | 5 | ||
| 1. | COVID-19 Response | 6 | |
| 2. | Our Sustainability Approach | 8 | |
| 3. | Economic Development | 16 | |
| 4. | Environmental Responsibility | 20 | |
| 5. | Our People | 32 | |
| 6. | Social Responsibility | 41 | |
| Appendix A: GRI Content Index |
About this Report
Resolute Mining Limited's (Resolute or the Company) 2020 Sustainability Report presents the environment, social and governance (ESG) performance of the Company for the period from 1 January 2020 to 31 December 2020 and has been prepared for Resolute's stakeholders.
Resolute is a multi-mine, low-cost, African-focused, gold producer and is committed to be a leader in sustainability. The information contained within this inaugural Sustainability Report provides a transparent account of how Resolute addressed its most material ESG issues in 2020 and details our efforts to deliver lasting value to our stakeholders. This report is complemented by Resolute's 2020 Annual Report, which presents the operational and financial results of the Company in accordance with statutory and regulatory reporting obligations.
Resolute's Interim CEO, Sustainability Committee, Board and asset-level General Managers have reviewed and endorsed the data and statements presented in this report.
Scope of this Report
All references to Resolute, the Company, we, us and our, refer to Resolute Mining Limited (ABN 097 088 689) and its subsidiaries. This Sustainability Report focuses on reporting the ESG performance of Resolute's current operating mines over which we have management control. It does not currently include assets under care and maintenance, our exploration portfolio or investments. All dollar figures are in United States Dollar (USD) currency unless otherwise stated. All references to 2020 are for the 12-month period from 1 January 2020 to 31 December 2020 unless otherwise stated.
ESG Analyst Guide
In order to facilitate the assessment and benchmarking of our ESG performance against our peers we have referenced key standards and principles throughout this report as well as linked relevant documents available on our website.
This Sustainability Report is prepared in accordance with the Global Reporting Initiative (GRI) Sustainability Reporting Standards (Core Option) and the G4 Mining and Metals Sector Disclosures. In addition, this report is aligned with the Responsible Gold Mining Principles, the International Council on Mining and Metals Mining Principles, and the UN Global Compact Principles.
Assurance
Resolute has elected not to seek external assurance for this inaugural Sustainability Report, however it has sought external assurance against the requirements of the Responsible Gold Mining Principles. External assurance will be sought for future Sustainability Reports from 2022. If you require more information about this report, please contact:
Jordan Morrissey
General Manager, People & Sustainability [email protected]
Vanessa Evans
Manager, Environment & Community [email protected]
Company Profile and 2020 Review
Resolute is a successful African-focused gold miner with more than 30 years of experience as an explorer, developer and operator of ten gold mines which have produced more than 9 million ounces of gold and counting. Resolute is listed on the Australian Securities Exchange (ASX: RSG) and the London Stock Exchange (LSE: RSG).
In March 2020, Resolute sold its Australian operations at Ravenswood in Queensland, and in December announced the sale of the Company's Bibiani Gold Mine in Ghana. We are confident our positive legacy, and the interests of all stakeholders will be protected and enhanced under the new ownership of both assets.
The Company currently owns two operating gold mines, the Syama Gold Mine in Mali (Syama) and the Mako Gold Mine in Senegal (Mako). Resolute's Global Mineral Resource base comprises 11 million ounces of gold.
Resolute is active in exploration with drilling campaigns underway across its African tenements with a focus on Mali, Senegal, Côte d'Ivoire and Guinea.
Resolute is headquartered in Perth, Western Australia, with a corporate office in London, United Kingdom, and employs approximately 4,300 employees and contractors.
Resolute produced 395,136oz of gold at at an All-In Sustaining Cost (AISC) of $1,074/oz in 2020.
In 2020, Resolute continued operations, keeping its people safe while maintaining production, through the challenges of COVID-19 and political instability in Mali.
Syama
Syama is located in the south of Mali, West Africa, approximately 30km from the Côte d'Ivoire border and 300km southeast of the capital Bamako. Syama consists of the Syama Underground Mine, the Tabakoroni Open Pit Mine and several satellite open pit deposits.
The Syama Underground Mine is owned by Société des Mines de Syama S.A. (SOMISY). Resolute has an 80% interest in SOMISY while the Government of Mali holds a 20% interest.
Tabakoroni is owned by Société des Mines de Finkolo S.A. (SOMIFI) of which Resolute currently owns 100% through its wholly owned subsidiary, Resolute (Finkolo) Pty Ltd. The Government of Mali is entitled to a 10% free carried interest in SOMIFI.
Syama is a large-scale operation which comprises two separate processing plants: a 2.4 million tonnes per annum (Mtpa) sulphide processing circuit and a 1.5Mtpa oxide processing circuit. The sulphide circuit comprises three-stage crushing, milling, flotation, roasting, calcine leaching and elution with ore sourced from the Syama Underground Mine and stockpiles. The oxide circuit comprises conventional crushing, SAG milling and leaching, with ore sourced from the satellite open pit deposits. In 2020, continued improvement in sulphide processing performance ramped up in the March quarter following completion of repairs to the roaster in December 2019. Plant throughput increased as a result of extensive optimisation and modification work on the crushing and milling circuits, while recoveries reflected a similar process of optimisation in the operation of the flotation and leach circuits.
Tabakoroni is located approximately 32km south of the Syama processing plant. Studies including technical, environmental and social assessments and metallurgical test work have commenced to support the near-term development of a new underground mine at Tabakoroni. During 2020, exploration activity was focused on the underground resource at Tabakoroni and the expansion of potential oxide deposits around Syama.
In 2020, political pressures in Mali resulted in a change of government in August with economic sanctions imposed on the country by ECOWAS. Neither production, or the safety and security of employees and contractors at Syama or in Bamako, were impacted. The resolution of the political issues at the end of the September 2020 quarter was pleasing, with a transitional government supported by ECOWAS sworn into office.
Gold production at Syama was impacted by industrial action in the second half of the year. Despite this the team at Syama were able to maintain operations and continue production.
Construction of the new hybrid power station at Syama continued during the September 2020 quarter in partnership with Aggreko plc (Aggreko). This facility is anticipated to result in material cost savings and a 20% net reduction in CO² emissions.
Mako
Resolute acquired Mako from Toro Gold Limited in 2019. Mako is a high quality, low-cost, open pit mine with attractive scale and strong growth potential through nearmine exploration opportunities. Targeted annual average production is 140,000oz of gold across its nine-year mine life. The mining permit covers a total area of 150km2 .
Mako is operated by Resolute's 90%-owned Senegalese subsidiary, Petowal Mining Company S.A. (Petowal). The remaining 10% is held by the Government of Senegal and is free carried.
Mako is a conventional drill and blast, truck and shovel operation with mining services undertaken by an established contractor. The carbon in leach processing plant has 2.3Mtpa of capacity and comprises a crushing circuit, an 8.5MW SAG Mill and gold extraction circuit. The processing plant has achieved strong metallurgical recoveries (95% in first year of operation) and is expected to deliver average life of mine recoveries of 93.8%. Electricity is provided by a 14MW diesel fuelled IPP power station and water is extracted from the Gambia River. An increase in mining volumes this year reflects the arrival of a new mining fleet to accelerate waste stripping and the easing of shortages of operating personnel in the initial stages of the COVID-19 pandemic.
The Mako Life of Mine (LOM) plan was extended in the June 2020 quarter with an increase in expected LOM duration and production. This is a very positive outcome for Resolute and Senegal. An independent review of environmental and social impacts of the LOM extension established it was in accordance with those predicted in the 2015 Environmental and Social Impact Assessment (ESIA). Additionally, identified exploration targets have the potential to increase mine life. Exploration programmes are in progress focusing on satellite deposits within trucking distance of the mill. Resolute controls over 485km2 of prospective exploration ground within a 30km radius of Mako, either directly or through joint ventures with Senegalese partners. Exploration programmes were paused from June to August in 2020 due to the logistical impacts of COVID-19, with border closures and travel restrictions imposed by respective governments.
Mako is located in southeast Senegal, in an area of environmental sensitivity, adjacent to the UNESCO World Heritage listed Niokolo-Koba National Park (Parc National du Niokolo-Koba or the PNNK), and the Gambia River. Resolute respects and values the significance of the environmental sensitivities present in the areas surrounding Mako and seeks to ensure there is no net loss of critical habitat as a result of the development and management of the mine.
Interim CEO Message to Stakeholders
I am delighted to present Resolute's inaugural Sustainability Report which sets out our key sustainability achievements in 2020, together with future targets.
As a member of the World Gold Council and signatory to the Responsible Gold Mining Principles, Resolute has commenced its journey to conform with these principles and achieve improved ESG outcomes across the Company. These efforts will include the establishment of internal and external assurance mechanisms to ensure continual improvement.
Tremendous progress has been made this year in strengthening our sustainability governance architecture with the publication and revision of our company policies, statements and charters. These renewed commitments have helped set clear performance expectations across the organisation and will guide conformance and assessment efforts in the coming period.
The global COVID-19 pandemic presented an unprecedented, complex and protracted suite of challenges to the mining industry in 2020, and I am extremely pleased with the resilience and commitment demonstrated by the Resolute team in navigating these difficulties. COVID-19 provided a stark reminder that corporate agility and maintaining a safe, healthy and engaged workforce are critical for business success.
There have been confirmed COVID-19 cases amongst our workforces in Ghana, Mali and Senegal. However, these have been managed effectively in accordance with the strict health surveillance, hygiene, distancing, segregation, testing, education and quarantine protocols that we have implemented. We continue to monitor the pandemic closely and are working in conjunction with stakeholders to improve local health outcomes also.
COVID-19 has been a catalyst for change on many fronts with the most significant being the rapid and widescale adoption of flexible and remote working. These work arrangements have been viewed favourably by our employees and have proven effective in building business resilience in a time when "lock-downs" are commonplace. We will continue to embed flexibility into the Resolute culture beyond the pandemic to further strengthen the organisation and to enable the achievement of our diversity and inclusion objectives.
I have been pleased to observe a significant reduction in the Company's Total Recordable Injury Frequency Rate (TRIFR) in 2020 which now sits at 0.87 compared to 2.09 a year ago. This result can be attributed to the strengthening of Resolute's health and safety management system and a renewed focus on critical risk control. Despite this result, I continue to challenge the team to achieve further safety improvement across all high-risk work activities with a specific focus on vehicles and driving, hand injuries and dangerous chemicals management. Our safety performance is moving in the right direction, but we still have room to improve.
In conjunction with our partners in Senegal, conservation efforts at the PNNK are progressing well with improved security infrastructure, wildlife mapping systems, ranger guard training and mobile patrols established. To date,
frequency of wildlife observations for all critical species has increased and elephant have been sighted within the intervention zone of the PNNK for the first time in a decade. These results indicate we are on track to achieving our aim of improving the biodiversity and security of the PNNK to the point where it will no longer be classified as "in danger" by UNESCO.
We continue to work with local communities to build capacity and self-sufficiency, and have prioritised the construction of critical health, education and water infrastructure in several communities in the last two years. Maintaining strong community and local stakeholder relationships is critical for the ongoing success of Resolute and our achievements to date are testament to the efforts of our dedicated community teams.
We are working to further nationalise our Malian and Senegalese workforces and have significantly reduced expatriate numbers this year in favour of local talent to improve our diversity, performance and business resilience. Nationalisation targets have again been set that will see year-on-year increases in national and local employment. Similarly, gender diversity targets have again been set by the Board this year to further enable the development of a diverse and inclusive organisational culture.
It has been an extremely challenging year for us all. Despite this it is clear from this report that a great deal of work has been completed and a strong platform for future performance has been established. However, we have a lot of hard work ahead of us if we are to be recognised
as leaders in sustainability. With the ongoing efforts of a dedicated team, I am confident that we will continue to make significant progress in the coming years.
Thank you to the entire Resolute team for your hard work and dedication in what has been an unprecedented year.
Stuart Gale Interim CEO
2020 Highlights
Environment:
COVID-19 mitigations indicates a competent response pursued
in financial and in-kind COVID-19 assistance to Senegal and Mali
Significant improvement in health and safety management system effectiveness
Governance:
>50% alignment with the Responsible Gold Mining Principles
Significant strengthening of Corporate Governance Framework
5
1. COVID-19 Response
During 2020, Resolute implemented a comprehensive companywide response to COVID-19. Resolute placed the highest priority on the health, safety and wellbeing of employees, contractors and all stakeholders. Keeping the Company's operations running was critically important for employment, local communities, and the national economies of the countries where Resolute operates. Resolute took the following actions to ensure that the impact of COVID-19 is mitigated across the Company.
Governance
Resolute responded early to COVID-19 and established a working committee in January 2020 prior to the disease being classified as a global pandemic by the World Health Organisation (WHO). The role of the working committee was to follow the development of the disease and monitor the potential impact it may have on the business and our people.
As incidence and prevalence rates grew globally and the adverse implications became clear, Resolute initiated a full crisis response in March 2020 that involved the concurrent activation of the Crisis and Emergency Management teams. The role of the Crisis Management Team (CMT) was to ensure Resolute continued to meet its duty of care obligations to its people while maintaining business continuity and shareholder confidence.
The Chief Executive Officer (CEO), as CMT lead, provided frequent updates to the Board of Directors in relation to the pandemic, the implications for Resolute and the Company's response plans. COVID-19 intelligence was gathered from multiple sources including the WHO, the Australian Government, our peers operating in West Africa and our contracted medical and security service providers. This information was used to guide the Company's response to the pandemic at all stages.
Company mitigation efforts and other COVID-19 developments became a standing agenda item at all Board and Sustainability Committee meetings.
Occupational Health and Safety
The experiences gained from the 2014-16 Ebola virus outbreak in West Africa assisted Resolute in responding to the unique and serious risks presented by COVID-19. However, unlike Ebola, COVID-19 is a highly infectious disease which, in addition to direct contact transmission, can be acquired through indirect and close contact with infected persons.
The highly contagious nature of COVID-19 directly challenged the Company's capacity to meet its duty of care obligations and immediate measures were required to protect the health, safety and wellbeing of the workforce while maintaining business continuity. These measures are outlined below.
Employee Engagement and Education
COVID-19 triggered significant levels of concern across the workforce and it was incumbent on Resolute to address these quickly to protect employee wellbeing and to maintain productivity. As such, senior management initiated a comprehensive internal communication campaign to educate the workforce on the risks of COVID-19, the controls to be implemented and the broader company response to the crisis. Communications were delivered via electronic, face-to-face and written formats from the CEO, asset-level general managers and management teams. These communications occurred at least weekly for the first three months of the crisis.
An Employee Engagement Survey was conducted by the corporate team in May 2020 to better understand the perceptions and experiences of all personnel working across the Company during the pandemic and to gauge the effectiveness of internal communications in managing expectations and allaying employee concerns.
While areas for improvement were identified, the survey results were largely positive and confirmed the importance of clear ongoing communication and engagement. This was particularly important for fly-in fly-out employees as many of them had been on site for longer than two months at the time of the survey and were eager to remain informed of border closure and international travel developments in real time.
A further Employee Engagement Survey will be undertaken in early 2021.
COVID-19 Operations Response
A planned and considered approach was followed to ensure strategies were implemented to mitigate key risks to our people and the operations. This resulted in the following key operational initiatives:
- Strong and ongoing corporate communications;
- Revision of the Company's business continuity plans;
- COVID-19 trigger action response plans established to manage infection escalations;
- Updating of the Company Risk Framework to include infectious disease considerations;
- Implementation of clear incident notification protocols for all confirmed COVID-19 cases;
- Implementation of extended fly-in fly-out rosters relative to global travel restrictions;
- Provision of additional compensation for employees impacted by extended rosters;
- Reduced working hours to combat fatigue associated with extended rosters;
- Aviation support planning to maintain capacity to move personnel relative to significant global, commercial aviation and border restrictions; and
- Demobilisation of non-essential operational personnel on full pay to reduce site infection and transmission risks.
Health and Hygiene Protocols
Resolute followed the WHO, the Australian Government and contracted medical specialist advice closely to develop and implement health and hygiene initiatives that would underpin the Company's duty of care obligations throughout the pandemic. These initiatives included:
- Point of Care rapid diagnostic (PCR) / antigen testing capability established at each operation;
- Provision of Personal Protective Equipment (PPE) for health and other frontline staff (i.e. catering);
- Strict isolation and segregation protocols including:
- Mandatory quarantine for incoming personnel to site;
- Mandatory isolation for those exposed to a confirmed COVID-19 case;
- Social distancing, particularly in high density areas (e.g. mess, meeting rooms);
- Staggered mealtimes in mess facilities;
- Designated isolation facilities established; and
- Where possible, segregation of different workforce cohorts (e.g. camp residents vs local employees);
- Education and awareness training, posters and toolbox discussions;
- Community education and signage;
- Revised fatigue management protocols and reduced working hours for those onsite;
- PPE, hand sanitizer, facemasks, blanket temperature checking for daily site access;
- Advanced cleaning regimes across all locations focusing on kitchen and mess facilities; and
- Frequent health and hygiene assessments for kitchen, mess and other areas.
Business Continuity Planning
Comprehensive business continuity plans were quickly established at all operations with single points of failure identified at the assets and their associated supply chains. Mitigations and business workarounds were implemented for all identified vulnerabilities and this included securing ample quantities of critical consumables such as fuel, food, water, lime, reagents and labour. These plans were constantly updated relative to the continually evolving pandemic and its impact on global transport and supply.
Key business continuity risks were reported to the Board of Directors regularly.
Host Government and Community Support
Resolute committed over $1.1 million in direct financial and in-kind assistance to the Mali and Senegal Governments to support their COVID-19 response efforts at the beginning of the pandemic. In-kind assistance included the provision of important PPE, testing kits, and other medical equipment and supplies.
In addition, extensive asset-level work was undertaken with our local communities to raise COVID-19 awareness and assist, where possible, with mitigation preparations. These efforts were consistent with our existing commitments to partner with stakeholders to improve health outcomes within the local community. Specific initiatives undertaken include:
- Extensive stakeholder engagement with local, regional and central authorities;
- Local community support via education and awareness programs; and
- Donation of facemasks and handwashing facilities to promote improved hygiene.
COVID-19 External Review
In September 2020, Resolute commissioned an independent outsourced internal audit service provider, under established internal audit services, to conduct an audit of the Company's response to COVID-19, with specific focus given to the effectiveness of crisis and emergency management and business continuity initiatives implemented. The overall objective of the internal audit was to review the adequacy of activities performed by Resolute in responding to the COVID-19 crisis during the first half of 2020.
Resolute's processes and controls supporting COVID-19 crisis management and business continuity response activities were found to be fit-for-purpose and effective, especially considering the unprecedented circumstances of the crisis. Our organisational culture and risk appetite were viewed to enable the agile approach adopted to manage the crisis.
Positive observations were noted around Resolute's response activities that included the setting of clear objectives which enabled proactive, considered and efficient decision making.
Opportunities for improvement related to the effectiveness of internal communications and inadequate detail contained within select business continuity plans. These areas have subsequently been actioned.
2. Our Sustainability Approach
Resolute operates its business responsibly, with careful consideration for the health, safety and wellbeing of its people, the communities in which we operate, and the environment around us. We are fully committed to meeting international leading practice as we recognise these standards are important to our key stakeholders, including company directors, employees, contractors, host governments, investors, local communities, and non-governmental organisations. Resolute's operating philosophy is centred on a belief that responsible mining practices result in improved business performance.
The Company aims to comply with all relevant government legislation, policy, and plans applicable to the jurisdictions in which we operate, and to go beyond compliance to align with international leading practice at all sites. Resolute applies international environmental and social standards across operations and draws upon the following relevant standards and guidelines:
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International Finance Corporation (IFC) Environmental and Social Performance Standards;
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World Bank Sector (Mining) Environment, Health and Safety Guidelines;
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United Nations Guiding Principles on Business and Human Rights;
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International Council on Mining and Metals (ICMM) Sustainable Development Framework;
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International Cyanide Management Code; and
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Extractive Industries Transparency Initiative (EITI) according to the requirements of the jurisdictions within which it operates.
Resolute recognises that it is at the start of its sustainability journey, and that its assets are at varying levels of sustainability maturity, integration and performance. Resolute has developed its Sustainability System, a road map to streamline and guide our approach to improving the Company's sustainability performance in the coming years.
Resolute will align its efforts with leading practice and will embed a culture of sustainability across the Company. We have adopted a responsible approach throughout the entire life cycle of our operations, ensuring ESG and other considerations are made during each stage of the development cycle.
Resolute's Sustainability System
Sustainability Strategy
Resolute's corporate strategy is to be a multi-mine, lowcost, African-focused gold producer and the Company's ultimate objective is to mine gold and create value. Our Value through Sustainability Strategy is considered a key enabler for value creation at Resolute. The term 'value' extends beyond traditional financial and shareholder return objectives and refers to our ability to sustain mutual benefit through responsible business practices in the jurisdictions and communities in which we operate.
Our Value through Sustainability Strategy identifies three strategic pillars: 'environmental stewardship', 'sustainable development' and 'governance and integrity' that will guide the delivery of our sustainability initiatives in the coming years in collaboration with key stakeholders.
In 2021, we will refine our key objectives under each of the strategic pillars to drive improved sustainability performance across the Company and subsequently strengthen our license to operate in accordance with leading practice.
Resolute's Sustainability Strategy
Leading Practice
Resolute engages with internal and external stakeholders concerning key ESG matters, to effectively understand and address emerging priorities. In 2020, we took steps to improve our transparency through:
- Aligning business practices with the World Gold Council's Responsible Gold Mining Principles;
- Adopting the recommendations of the Task Force on Climate-related Financial Disclosures;
- Addressing human rights and modern slavery risks to our business;
- Contributing to the UN Sustainable Development Goals (SDGs); and
- Engaging with ESG analytics service providers.
Responsible Gold Mining Principles and the Conflict-Free Gold Standard
As a member of the World Gold Council, Resolute is committed to aligning its business practices with the Responsible Gold Mining Principles (RGMPs) across all operations. The RGMPs is a new framework, launched in 2019, that sets out clear expectations for consumers, investors and the downstream gold supply chain as to what constitutes responsible gold mining.
In addition, the RGMPs require companies to align their business practices with the requirements of the Conflict-Free Gold Standard, a common approach developed by
the World Gold Council for companies to assure that gold has been extracted in a manner that does not cause, support or benefit unlawful armed conflict or contribute to serious human rights abuses or breaches of international humanitarian law.
Companies implementing the RGMPs and Conflict-Free Gold Standard are required to obtain yearly external assurance from a third party, independent assurance provider. Participating companies have until June 2023 to fully comply with the RGMPs and the Conflict-Free Gold Standard.
Resolute welcomes the RGMPs and associated external assurance processes as an opportunity to demonstrate that our governance and management approach is aligned with leading practice. In 2020, Resolute engaged the services of a third party assurance provider to independently assure our self-assessment against the 10 principles and the 51 sub-principles of the RGMPs and our alignment with the Conflict-Free Gold Standard.
As of 31 December 2020, Resolute is in alignment with >50% of the RGMPs. A road map has been developed to ensure full alignment by June 2023. Furthermore, Resolute is undergoing third party assurance against the Conflict-Free Gold Standard. Resolute does not currently source or mine gold from conflict affected areas. The external assurance statements, 2020 Conflict-Free Gold report, self-assessment against the RGMPs and roadmap will be publicly available on our website in due course.
Progress against the 10 Responsible Gold Mining Principles
Taskforce on Climate-related Financial Disclosures
Released in 2017, the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations are designed to help companies provide better climate-related information to support informed capital allocation. The recommendations are structured around four thematic areas that represent core elements of how organisations operate: governance, strategy, risk management, and metrics and targets.
In recognition of the increased importance of climate change for our business and investors, we made the decision in 2020 to enhance our reporting to align with the TCFD recommendations and have initiated a gap analysis. We are currently collaborating with climate business consultancy Mantle 314 as part of their Manifest Pilot which benchmarked Resolute against climate disclosure leaders and provided recommendations for improvements.
In 2020, we published a corporate Climate Change Statement which identified climate change transition risks as material to future operations, developed a methodology to calculate our Scope 3 GHG emissions and have disclosed our energy use and Scope 1,2 and 3 GHG emissions in section 5.3.2 of this report. In 2021 we will publish our first TCFD report, and climate change disclosures to the Climate Disclosure Project (CDP).
Human Rights and Modern Slavery
Resolute is committed to respecting human rights and treating all employees, contractors, stakeholders and local community members with dignity. We aim to provide a safe and healthy working environment. The Company does not tolerate any forms of harassment or discrimination and does not employ forced, compulsory, or child labour. In 2020 we published our first Modern Slavery Voluntary Statement in advance of our first reporting period and published a corporate Human Rights Policy. These documents reference the UN Guiding Principles on Business and Human Rights and the Voluntary Principles on Security and Human Rights. In addition, we initiated a review of our suppliers to identify modern slavery risks in our supply chain and are developing a bespoke identification tool.
In 2021, we will establish human rights as a mandatory training requirement throughout the Company and will conduct human rights risk and impact assessments at our operations.
Sustainable Development Goals (SDGs)
The mining industry can significantly contribute to the UN's SDGs, due to its global reach and presence in remote, less developed regions with high levels of biodiversity, at-risk species, protected areas, and socio-economic disadvantage. Resolute recognises the significance of the SDGs and aligns its environmental and social activities to support the achievement of these goals where it is feasible to do so. In 2020, we identified the SDGs that were the most material to our business and will be tracking our progress year-on-year. The SDGs, and how we contribute to them, are referenced throughout this report. Our contributions to SDG 1 (no poverty), 7 (affordable and clean energy) and 13 (climate action), were highlighted in the World Gold Council's report on Gold Mining Contribution to the UN Sustainable Development Goals.
ESG Analytics
The disclosure of ESG metrics have become an increasingly important topic for the mining industry. Resolute is answering the expectations of its shareholders and the global investment community by actively improving and increasing its disclosure of material ESG information.
In 2020, Resolute participated in its first global ESG assessment by making a submission to the SAM Corporate Sustainabiltiy Assessement (CSA), an annual evaluation of companies' sustainability practices focused on criteria that are both industry-specific and financially material. This resulted in an incease of our CSA score to align with the mining sector average, providing the opportunity for inclusion into a suite of ESG themed financial products, e.g. S&P ASX 200 ESG index. Resolute aims to become an industry leader and will actively seek to improve its score through targetted disclosure of its sustainability performance.
Sustainability Governance
Sustainability Committee
Our sustainability strategy and underpinning approach is guided by the Board with governance and oversight responsibility assigned to the Sustainability Committee (Committee).
The Committee is chaired by the CEO and consists of several non-executive directors who each have diverse knowledge, skills and experience within the remit of the Committee. The focus of the Committee is guided by the Sustainability Committee Charter (Charter) which broadly covers all health, safety, security, environment and community (HSSEC) and people matters. This includes the adequacy of all systems in place to effectively manage ESG and regulatory risk and opportunity across the Company. In 2020, the Charter was updated with specific reference made to diversity and inclusion, climate change and human rights governance.
The Committee guides the Remuneration Committee in the setting of short and long-term sustainability targets and assists with assessments of performance against these metrics. The Committee recommends to the Board the adoption of initiatives to drive continual improvement in sustainability performance at Resolute, including but not limited to the publication of an annual Sustainability Report. Sustainability considerations have been incorporated into both short-term and long-term incentive plans and are linked to assessments of executive performance at Resolute in 2021 going forward.
Resolute's executive team report performance to the Committee at each of its four meetings per year.
Board and Board Committee structure
Resolute Policies, Procedures and Statements
Significant progress was made in 2020 to ensure Resolute's corporate policy framework establishes a clear and consistent pathway for improved sustainability performance commensurate with the RGMPs, company strategy and stakeholder expectations. All existing sustainability polices were updated and the new documents were published on Resolute's website. These new and revised policy documents include:
- Environmental Policy;
- Social Performance Policy;
- Human Rights Policy;
- Diversity & Inclusion Policy
- Community Complaints & Grievance Procedure;
- Modern Slavery Voluntary Statement; and
- Climate Change Statement.
This renewed policy framework has been developed to guide our approach to responsible mining across all levels of the Company and enable the achievement of our sustainability strategy. Additional statements and procedures will be developed in 2021 to augment our policy framework.
Enterprise Risk Management Framework
Our Enterprise Risk Management Framework (ERMF) is integral to corporate governance at Resolute and prescribes the methodology, minimum performance standards and risk appetite applicable to the assessment and treatment of strategic, corporate, operational, ESG and project risk and opportunity.
Resolute's ERMF and associated risk management processes are overseen by the Audit and Risk Committee (ARC) of the Board with key risks, opportunities and their respective treatments reported regularly by the Company's executive team.
In 2020, the ERMF was reviewed as part of a broader health and safety management system review, facilitated by an independent outsourced internal audit service provider in accordance with our internal audit processes and plans. The below figure outlines Resolute's ERMF.
Enterprise Risk Management Framework
Environmental Social Governance (ESG) Risks
The Committee is delegated by the Board to provide oversight and guidance to the assessment and treatment of actual and emerging ESG risks and opportunities across the Company.
In 2020, the Charter was updated to include specific
reference to diversity and inclusion, human rights and climate change, to complement its broader remit of harnessing Resolute's license-to-operate for strategic advantage and guiding our journey to align with the RGMPs in the coming years.
ESG risks and opportunities are discussed as a standing agenda item at all meetings of the Committee, with key actual or emerging risks escalated to the Board as required.
Key ESG risks and opportunities
| Risk Area | Description | Controls in place |
|---|---|---|
| Security | Security eventimpacting employees'health, safety andwellbeing and/orbusiness operations/continuity | - Security risk assessments in place and updated regularly- Provision of public security officers- Security Management Plan- Crisis and emergency management plans in place- Corporate security reviews and audits- Security operating levels defined- Regular security intelligence updates - Mali, Senegal and West Africa- Security community of practice with neighbouring mining companies |
| Health | Health event affectingemployees' health,safety and wellbeingand/or businesscontinuity | - Malaria mitigation initiatives and reporting- Pre-employment and occupational medical assessments- Contractor management- Infectious Disease Management Plan and associated controls /initiatives- External guidance – i.e. WHO guidelines- External health audits with recommendations implemented- Health and hygiene standard in place- Escalation protocols defined for varying threat environments- Business continuity plans |
| Risk Area | Description | Controls in place |
|---|---|---|
| People | Inability to attract andretain the requiredskills to maintainsafe operationaland corporateperformance | - Training and development- Competitive remuneration and benefits- Stakeholder engagement – e.g. universities / technical institutes- Local employment strategy- Learning Management System |
| Safety | Unwanted healthand safety eventresulting in seriousinjury, fatality and orbusiness / operationscontinuity disruptions | - High risk systems, training and verification of competency- Critical Hazard Management Standards- Corporate Risk Management Framework and risk analysis tools- Crisis and Emergency Management System- Primary, occupational and emergency medical capability on sites- Trained and competent Emergency Response Teams- General training and inductions- Strong safety culture |
| Environment | Negativeenvironmentalimpact /environmentalincident due toResolute activities orfailures | - Environmental licence / permit requirements- ESIAs- Internal / external audits- Environmental monitoring and management programs- Trained and competent environmental professionals- Internal and regulatory reporting- Contractor management standards |
| Environment | Unable to effectivelyadjust to physical,legislative, operatingand or environmentalchanges driven byclimate change whichthreatens businesscontinuity / viability | - Environmental licence- ESIA and monitoring requirements clearly defined- Environmental monitoring and reporting- Regulatory reporting / site visits- Stakeholder engagement – e.g. regulators, ministries & communities- External audit / assurance- Emissions monitoring and reductions – e.g. Syama Hybrid Power Station |
| People | Human Rightsexposures associatedwith Resolute'sbusiness activitiesthreatens businesscontinuity / viability | - Contract service agreements consider human rights compliance- Labour law compliance- Commitment to the UN Voluntary Principles on Security and Human Rights- Training and education- Stakeholder engagement- Human rights risk assessments- Contractor management |
| Cyber Security | Cyber-attackcompromises theintegrity of keycommercial systemsand or threatensbusiness continuity /viability | - Next generation firewalls- Next generation end point protection- O365: Mimecast- Unified security management- VLAN Segmentation- Cisco ISE and Meraki Switching- End user training and awareness- Internal / external audit- Security stress testing |
| Artisanal andSmall-ScaleMining | Artisanal miningactivity threatensbusiness continuity /viability | - Community consultative committees- Stakeholder engagement – e.g. local authorities- ESIAs- Land use agreements- Resettlement standards- Livelihood generation programs- Environmental monitoring |
Materiality Assessment
To guide the preparation of this report, Resolute conducted a materiality assessment in accordance with the requirements of the GRI Standards. The assessment was conducted in conjunction with Resolute's key stakeholders to determine the sustainability topics that are the most important to them and our business, and to inform the disclosures in this report.
A total of 52 stakeholders were surveyed for this assessment, from eight identified stakeholder groups:
Materiality analysis stakeholder weightings
- Internal stakeholders: Board, corporate and site representatives; and
- External stakeholders: Shareholders, supply chain actors, government representatives, local communities and NGOs.
The answers were weighted to ensure balanced representation between Syama and Mako, and to account for the relative importance of stakeholders.
Resolute's material sustainability topics are presented in our materiality matrix.
| Internal Stakeholders | 100% |
|---|---|
| Corporate office | 33% |
| Board of Directors | 33% |
| Site representatives - Mako | 17% |
| Site representatives - Syama | 17% |
| External Stakeholders | 100% |
| Shareholders | 25% |
| Supply chain - Mako | 5.0% |
| Supply chain - Syama | 5.0% |
| Government - Mako | 12.5% |
| Government - Syama | 12.5% |
| Local community - Mako | 15% |
| Local community - Syama | 15% |
| NGO/external groups - Mako | 5.0% |
| NGO/external groups - Syama | 5.0% |
All topics presented in the materiality matrix are covered in this report, with priority given to those topics assessed as being most important by both internal and external stakeholders as per the below ranking.
Materiality analysis results
| Rank | Sustainability Topic |
|---|---|
| 1 | Local Communities |
| 2 | Occupational Health and Safety |
| 3 | Economic Performance |
| 4 | Training and Education |
| 5 | Environmental Compliance |
| 6 | Emissions |
| 7 | Diversity and Equal Opportunity |
| 8 | Water |
| 9 | Biodiversity |
| 10 | Market Presence |
| 11 | Employment |
3. Economic Development
The economic performance of Resolute includes the revenues generated from the Company's activities, the economic value distributed through operating costs (including employee wages, payments to local suppliers of goods and services, payments to governments and local contributions, and indirect economic impacts), as well as the value of capital investment.
Resolute is committed to acting with integrity and creating a culture of ethical behaviour in accordance with our Code of Conduct and Anti-Bribery and Corruption Policy. Resolute supports the EITI and ensures that all our payments to governments are reported publicly. Of the countries we operate in, Senegal and Mali are both active members of the EITI.
Furthermore, Resolute is committed to maximising the opportunity for local economic participation through local employment and procurement as highlighted in our Social Performance Policy, while remaining cognisant of the economic challenges in our operating jurisdictions.
Both Mako and Syama are in rural areas with low levels of economic development. The limited availability of skilled workers and the lack of suppliers to provide essential products and services to sustain mining operations, are some of the economic challenges that Resolute must overcome.
The material economic topics covered in this section include:
- Economic performance and direct distribution of benefits;
- Market presence; and
- Indirect economic impacts.
SDGs Material to Resolute and Economic Development
Mining activities have the potential to create significant direct and indirect economic development impacts. Mining provides employment, training and skills and creates demand for local businesses, often in regions with limited industry. Resolute identified two SDGs relevant to our economic activities, namely SDG 1: No Poverty and SDG 8: Decent Work and Economic Growth.
| activities to Goal 1: |
|---|
| •Direct payments to government of$127.45 million in 2020•Payment of employee wages andbenefits of $33.18 million•Advanced implementation of MakoLivelihood Development Program•Public disclosure of all payments togovernments•Preferential local recruitment andequitable employment opportunities |
| The contributions of our economicactivities to Goal 8:•Direct employment of 898 nationalemployees at the operating assets,representing 88% of our operationsworkforce |
• Advanced implementation of Mako Livelihood Development Program
The contributions of our economic
- equitable employment opportunities
- employees at the operating assets, representing 88% of our operations
- Local procurement spending of $416 million in 2020
- Total economic value distributed of $760 million
Source: United Nations
Economic Performance and Direct Distribution of Benefits
The direct economic benefits of our activities are primarily delivered through payments provided to the governments in the regions where we operate, direct employment (wages and benefits), and procurement of goods and services. In 2020, we made payments to national and state governments of $127.45 million and directly employed 898 national employees across Mali and Senegal.
The direct economic value distributed also includes direct investments in the community that do not constitute impact mitigation measures. In 2020, the Company committed approximately $2.74 million in community investment in projects that aimed to deliver improvements in education, healthcare, and livelihood development. A full summary of Resolute's economic performance and direct distribution of benefits is provided in the table below.
| 2019 | 2020 | |||||
|---|---|---|---|---|---|---|
| Indicator | Sub-indicator | Syama | Mako | Syama | Mako | |
| Economic value generated | Revenues | 311.03 | 252.34 | 328.17 | 274.39 | |
| Operating costs (excludes wages and benefits) | 225.14 | 133.65 | 391.05 | 126.28 | ||
| Employee wages and benefits 1 | 5.50 | 27.21 | 5.97 | |||
| Payments to providers of capital | 1.58 | 12.06 | 0.29 | 79.38 | ||
| Payments to government comprising: | 52.55 | 14.95 | 92.48 | 34.99 | ||
| Economic value distributed | Royalties | 20.36 | 12.62 | 22.82 | 22.33 | |
| Other taxes and duties 2 | 22.96 | 2.13 | 57.77 | 12.45 | ||
| Other institutional support | 9.23 | 0.20 | 11.88 | 0.20 | ||
| Community investment 3 | 1.29 | 0.45 | 1.28 | 1.46 | ||
| Economic value retained | Generated minus distributed | 4.98 | 85.74 | -184.13 | 26.31 |
Economic value generated and distributed, 2020 ($ million)
Gross wages and benefits to national employees
2 Excludes payroll taxes on wages and benefits to national employees
3 Investments that do not constitute impact mitigation measures
Market Presence
Local, Regional and National Employment
Our mines at Mako and Syama are located within rural areas where literacy and education levels are traditionally low. To maximise local employment opportunities for our local communities, Resolute, as part of its local employment strategy, reserves all entry level and semiskilled roles for local and regional employees.
Skilled professionals are typically sourced from, or near, the capital cities of the countries in which we operate. A key strategic priority for Resolute is the nationalisation of its Malian and Senegalese workforces. Nationalisation targets have been established in 2020 for each operating asset and are used to guide asset level workforce planning initiatives. In 2020, Resolute introduced detailed employment classifications to facilitate improved analysis, action and reporting relative to our workforce nationalisation efforts. These employment classifications are outlined in the table below.
Employee classifications used to drive workforce nationalisation efforts
| EmploymentClassification | Definition |
|---|---|
| Local employees | Are those employed from themines' local communities |
| Regional employees | Are those employed from theregion where the mine is located(e.g. Kédougou region for Makoand Sikasso region for Syama) |
| National employees | Are those employed fromregions outside of the regionwhere the mine is located |
Resolute Local Employment Strategy:
The table below provides the breakdown of employment classifications across our operating assets and the significant progress made in 2020 towards meeting our nationalisation objectives.
Employee classification, 2019 and 2020
| 2019 | 2020 | ||||
|---|---|---|---|---|---|
| Employees | Syama | Mako | Syama | Mako | |
| Local | 257 (36%) | 94 (31%) | |||
| Regional | - | - | 107 (15%) | 47 (16%) | |
| Regional1 | 324 (47%) | 131 (44%) | - | - | |
| National | 252 (37%) | 112 (38%) | 277 (39%) | 116 (38%) | |
| TotalNationals | 576 (84%) | 242 (82%) | 641 (90%) | 257 (85%) | |
| Expatriates | 107 (16%) | 53 (18%) | 72 (10%) | 46 (15%) |
1 Regional definition changed from 2019-2020 so direct comparisons problematic
In 2020, the Company nationalised several senior leadership roles that are responsible for managing our Mali operations and several Malian nationals were appointed to key management positions, all in pursuit of the Company's nationalisation agenda. These roles are outlined below:
- Managing Director SOMISY;
- General Manager Sustainability;
- Country Manager Mali;
- Safety Manager; and
- IT Manager.
Local Procurement
Many of the critical goods and services required to operate a mine are highly specialised and may only be available from international suppliers. At both Syama and Mako, we source goods and services from national suppliers and where possible from our local communities. We have established links between our international suppliers and local distributors, thus enabling Resolute to source goods onshore and in so doing, strengthen the local supply chain. We also encourage our international suppliers to register their businesses nationally and localise elements of their operations.
At both sites, we are actively working with local suppliers to enhance opportunities for their participation in the mine supply chain. At Mako, a specific Local Procurement Working Group was established to strengthen communication with local suppliers and implement measures to overcome obstacles to broader supply chain participation. The Company has assisted local communities to establish several supplier cooperatives (see the Cooperative of Tailors of Kédougou case study) thus improving their access to markets, institutional support, and finance. In Syama, the Community team regularly meets with local suppliers to raise any issues or concerns they may have, encouraging local community members to seek new collaborations and business opportunities.
During 2020, Resolute purchased 81% of its goods and services from national companies or foreign companies with registered operations in our host countries.
Local procurement, 2019 and 2020 ($ million)
| Year | Regional | National | International | Total | LocalProcurement (%) |
|---|---|---|---|---|---|
| 2019 | 3.89 | 332.82 | 98.61 | 435.32 | 77% |
| 2020 | 6.98 | 409.11 | 99.56 | 515.66 | 81% |
In 2021, we are aiming to build on these successes by developing a Company Sustainable Procurement Standard to ensure a consistent approach is pursued across Resolute and its contract partners, which maximises local stakeholder participation and ensures compliance across assets.
Case study: The Cooperative of Tailors of Kédougou in Mako, Senegal.
The Cooperative of Tailors of Kédougou is a local supplier which manufactures uniforms and protective masks for our Mako operations. In 2015, 12 community members established the initiative and after five years of activity, the Cooperative now consists of 52 active members, benefiting more than 40 households in the area.
Our partnership with the Cooperative started in 2018 with the signing of a joint collaborative agreement. Since then, we have increased our contributions and facilitated collaboration between the Cooperative, the Chamber of Trades of Kédougou and Petowal's supply department to promote transparency and information sharing. The parties meet regularly to discuss specific contract requirements, procurement procedures and new collaboration opportunities.
During the past two years, Petowal has provided business development support and funded training in management, accounting and cost calculation, for all Cooperative members. During 2020, a ten-day training programme was held to foster skills of cutting, embroidery and sewing techniques.
In 2020, Petowal entered into a contract with the Cooperative for the embroidery of 987 PPE work shirts for personnel at Mako. In response to COVID-19 the Company and its subcontractors purchased more than 2500 masks from the Cooperative and will continue to do so for the duration of the pandemic.
Indirect Economic Impacts
Resolute contributes to local economies and local communities directly, through taxes and royalties. Our indirect economic impacts include our efforts to strengthen local economies by delivering initiatives that create long-term positive effects beyond the life of our mining operations. We engage with local, regional, and national stakeholders to enable our sustainable development efforts.
Socio-economic studies are regularly commissioned at our assets to monitor significant developments that can
Mako Community Impressions Survey, 2020
Rate the extent to which you think the Company supports economic development and business in my area
be attributed both directly and indirectly to our business activities. In 2020 at Mako, a Community Impressions Survey was commissioned to assess the level of satisfaction among the affected local communities on a range of socioeconomic parameters.
The Community Impressions Survey showed that 81% of respondents considered the Company to be supportive of local business and economic development. Questions regarding improvements in living conditions demonstrated that more than 60% of participants had noticed positive impacts since the commencement of operations.
Have you noticed a positive improvement in the living conditions of your community since the installation of the Company?
4. Environmental Responsibility
Our Management Approach
Resolute aims to operate in an environmentally responsible manner, to minimise the impact of our activities and enhance the environment in the jurisdictions in which we operate. The Company follows international leading practice in the management of impacts and risks through the evaluation of all technically and financially feasible alternatives and the application of the mitigation hierarchy.
Our mine sites have an Environmental Management System (EMS), comprised of an Environmental Management Plan and relevant standard operating procedures, including monitoring, evaluation, and reporting mechanisms. In 2020, we introduced an electronic environmental management system (INX InViron) to align data management and reporting across operations and increase compliance visibility. Our ambition is to pursue the ISO:14001 EMS certification and we will be conducting a gap analysis against these requirements at both Mako and Syama in the coming year. Resolute's environmental commitments and standards of practice are underpinned by a new Environmental Policy published in 2020.
For Resolute, the material environmental topics covered in this section include:
- Environmental Monitoring and Compliance;
- Climate Change and GHG Emissions;
- Tailings Management;
- Progressive Rehabilitation and Closure; and
- Biodiversity Impacts and Mitigation Measures.
SDGs Relevant to Environmental Responsibility
Mining activities have the potential to create significant direct and indirect environmental impacts if not managed adequately. This is especially material for Resolute as both mine sites are located close to important aquatic and terrestrial habitats. The two SDGs relevant to environmental responsibility are: SDG 6: Clean Water and Sanitation and SDG 15: Life on Land.
Our environmental safeguards relevant to Goal 6:
- Water extraction from the Gambia and Bagoe Rivers undertaken in accordance with licencing conditions.
- No discharge of process effluent to the downstream environment
- Regular monitoring of surface and groundwater quality and no major water quality issues associated with mine operation
Our environmental safeguards relevant to Goal 15:
- No material direct adverse impact to the PNNK arising from operations of the Mako Gold Mine
- 1700km² area of the PNNK protected through a partnership with the NGO Panthera and the Senegal Department of National Parks
- Progressive rehabilitation of degraded land across both sites
- Continued engagement with an independent advisory panel on the implementation of the Petowal Biodiversity Offset to compensate for the residual biodiversity impacts of the Mako mine
Source: United Nations
Environmental Monitoring and Compliance
Sulphur Dioxide and PM10 Monitoring
At Syama, the treatment of the refractory gold ore includes a high temperature roasting process which liberates sulphur dioxide (SO² ) and other emissions into the atmosphere. Syama is required to monitor SO² and particulate matter (PM10) dust concentrations in five Air Quality Monitoring Stations (AQMS) in communities downwind of the mine. Monitoring is assessed against the ESIA thresholds, which were based on World Bank guidelines from 1996. The Company is currently in the process of updating these emissions standards in consultation with the Government of Mali, to comply with the guidelines of the WHO and is conducting feasibility studies on alternate technologies that may assist in the treatment of air emissions at the Syama processing facility.
Syama ESIA standards for air quality monitoring
| Criteria | AveragingPeriod | Maximumconcentration | Unit |
|---|---|---|---|
| SO² | 1 day | 125 | µg/m³ |
| 1 year | 50 | µg/m³ | |
| PM10 | 1 day | 150 | µg/m³ |
| 1 year | 100 | µg/m³ |
SO² is monitored both actively and passively. Active monitoring of SO² requires the operation of specialised and highly sensitive equipment that needs regular servicing. This is supplemented by passive SO² monitoring using sampler Radiello tubes, which is relatively simple to conduct and ensures continuous monitoring in instances when active monitoring cannot take place. SO² emission results for 2020 were below the Syama ESIA annual average limits.
Air quality monitoring measurements are supplemented by a predictive Cubic Conformal Atmospheric Measurement (CCAM) forecast model. The CCAM forecast uses weather patterns and real SO² emission data from AQMS measurements to flag potential exceedances of the emission limits. This enables remedial actions to be taken at the processing facility in real time, through moderating roaster throughput and thus SO2 generation. For 2020, the model and monitoring were effective for the entire reporting period at maintaining annual average concentrations below 50µg/m³.
Syama active SO² monitoring results, maximum recorded and annual averages, 2020
| Site | Maximumrecorded 24-hour averageSO2 (μg/m³) | No. daysabovedaily limit | AnnualaverageSO2 (μg/m³) |
|---|---|---|---|
| AQMS1 –Syama | 322 | 12 | 25.8 |
| AQMS2 –Bananso | 442.9 | 1 | 26 |
| AQMS3 –Fourou | 151.9 | 2 | 20.9 |
| AQMS4 –Tembléni | 288 | 3 | 44 |
| AQMS5 –N'golopene | 50 | 0 | 12.1 |
Syama SO² emitted, 2018, 2019 and 2020
| Indicator | Unit | 2018 | 2019 | 2020** |
|---|---|---|---|---|
| Roaster Feed | t | 92,213 | 71,476 | 151,126 |
| Sulphide | % | 24.4 | 23.4 | 24.5 |
| SO2emitted* | t | 43,681 | 32,444 | 71,716 |
| Average dailyemission | t | 120 | 89 | 196 |
* 97% conversion of S to SO2
** average daily production used to estimate remainder of year from 16 November
In 2020, Resolute commissioned an Air Quality Management System review to validate and update the air dispersion model, assess impacts from additional sources (e.g. heavy fuel oil generators of the new hybrid power station) and develop a control strategy to minimise impact from its operations and the roaster on the surrounding environment. The Air Quality Management System review results demonstrated that current predictive and reactive strategies would be insufficient to achieve compliance as operations expand, due to the high roaster emissions, without introducing alternate technologies/engineering controls. In 2021, Resolute will continue to assess its options to reduce operational emissions.
During 2020, daily average measurements of PM10 exceeded ESIA limits on several occasions. Passive dust deposition monitoring was conducted at the five monitoring sites. The deposition dust rates were generally highest in the months of February and March (dry season). During the dry season, airborne particulate matter concentrations are high within the ambient airshed due to the movement of vehicular traffic on unsealed roads, biomass burning and fugitive dust carried on Harmattan winds. The high averages in Bananso were due to an increase in population, linked to an influx of artisanal miners, and not directly associated with the operations. Management practices to reduce airborne particulates associated with mine activities include wetting work areas susceptible to dust generation, and screening and blast controls.
Syama active PM10 monitoring results, maximum recorded and annual averages, 2020
| Site | Maximumrecordeddaily averagePM10(μg/m³) | No.daysabovedailylimit | Month(s) | AnnualaveragePM10(μg/m³) |
|---|---|---|---|---|
| AQMS1 –Syama | 438.2 | 51 | April | 80 |
| AQMS2 –Bananso | 787.1 | 7 | BetweenFebruaryand March | 141.4 |
| AQMS3 –Fourou | n/a | n/a | n/a | n/a |
| AQMS4 –Tembléni | 338.7 | 1 | April | 113.7 |
| AQMS5 –N'golopene | 427.7 | 69 | April andNovember | 125.6 |
Water Use and Effluents
At Mako, water is extracted from the Gambia River during the wet season for storage in a dam facility and drawn down during the dry season. In 2020, the mine returned 1.72 million m3 of process water from the tailings storage facility (TSF) for reuse in the process plant, equivalent to 155% of the water extracted from the Gambia River.
At Syama, the primary water supply to the operation is from the Bagoe River, where permitted extraction rates decrease in the dry season and no water abstraction is permitted in April each year. This is supplemented by a significant volume of accumulated rainfall that is stored in the Northern Satellite pits, along with storm and groundwater inflows into the underground mine. In addition, process water is obtained from the TSF return water, and two ponds. Currently, 65% of process water is provided by return water. We are conducting a review of the site water balance in 2021, with the aim of achieving a >70% recycling rate to align with industry leading practice. Water extraction was significantly higher in 2020 due to the sulphide mills being operational all year, whereas in 2019 the roaster issues resulted in 10 weeks' downtime.
In 2020, water abstraction at both sites was performed in accordance with applicable regulatory licences to ensure no impact on the environment.
Water withdrawal, reuse and discharge, 2019 and 2020
| 2019 | 2020 | |||||
|---|---|---|---|---|---|---|
| Indicator (ML) | Sub-indicator | Syama | Mako | Syama | Mako | |
| Water withdrawal by | Surface water | 1,874 | 1,283 | 2,667* | 1,113 | |
| sourceGroundwater | 673 | Not applicable | 627* | Not applicable | ||
| Water reused | n/a | No data available | 2,296 | No data available | 1,722 |
*Data excludes December 2020.
Resolute aims to avoid the release of pollutants, or when avoidance is not feasible, minimise and control the intensity and mass flow of their release. Resolute maintains a comprehensive surface and groundwater monitoring program at its operating sites. In 2020, no significant downstream chemical water quality issues were recorded at our operations.
At Syama, run-off from mine-affected areas discharged to three ephemeral creeks, before entering the larger catchments of the Bafini River to the north and the Bagoe River to the west. Surface water and groundwater quality were mostly within applicable ESIA guidelines, however some parameters (notably total suspended solids (TSS), Iron (Fe) and Sulphate (SO4 levels) periodically exceed applicable discharge and ambient standards. These parameters are being closely monitored on an ongoing basis as we assess engineering solutions to this issue.
At Mako, the Gambia River met ambient standards for chemical water quality during 2020 for all parameters except TSS, where exceedances were observed during the rainy season due to drainage of sediment. SO4, Nitrate (NO3 ), Fe, Aluminium (Al) and Manganese (Mn) levels were recorded to be high in water samples downstream of the TSF in 2020. For the Mn parameter, the exceedance is due to the geology of the soil, because the presence of Manganese has been observed since the period of exploration. Remediation actions have been taken with the construction of a new seepage collector downstream of the TSF and the installation of a more powerful pump by January 2021.
Waste Management
Waste materials at Syama and Mako are generated throughout construction, commissioning, mining, ore processing, maintenance, administration, procurement and general camp maintenance and operation activities. Waste management is based on the following hierarchy: minimise production of waste (re-use), recycle, treat and dispose safely.
At Syama, hazardous waste is disposed of on-site, mostly in an incinerator. This includes medical waste, cyanide boxes and waste from the workshops. Recyclable waste is collected by a certified local waste contractor. This includes scrap materials, plastic, workshop waste, waste oil and grease, PVC, and wood. In 2020, wet and dry season compliance audits were performed at the recycling facility
by the Resolute environmental team, both of which were satisfactory. The landfill was closed, and the area reshaped in preparation for rehabilitation in 2021.
At Mako, waste oil and grease are collected by an energy supply company for energy recovery or safe disposal. Hazardous waste (constituting empty cyanide cases, reagent packaging and biomedical waste) is incinerated in a controlled environment. Certain waste products (paint and solvent tins and waste filters) are temporarily stockpiled on site before batch encapsulation and secure landfill. In 2020, the amount of non-hazardous waste recycled was able to increase as a local facility gained the appropriate licences to process waste metal. In 2020, all organic waste was incinerated instead of composted as the composting installations developed on the border of community market gardens were not maintained.
| 2020 | ||||
|---|---|---|---|---|
| Indicator | Sub-indicator | Unit | Syama | Mako |
| Total amount of | Recycled | kg | 925,946 | 929,518 |
| Composted | kg | 30,997 | - | |
| Recovery (including energy recovery) | l | - | 375,000 | |
| waste disposed | Incineration (mass burn) | kg | 63,545 | 256,069 |
| Landfill | kg | 206,876 | 7,467 | |
| On-site storage | kg | - | 8,610 | |
| Hazardous waste | Recycled | kg | 304,332 | 3,864 |
| Recovery (including energy recovery) | l | - | 375,000 | |
| Incineration (mass burn) | kg | 63,545 | 165,645 | |
| Recycled | kg | 621,618 | 925,655 | |
| Non-hazardouswaste | Composted | kg | 30,997 | - |
| Recovery (including energy recovery) | l | - | - | |
| Incineration (mass burn) | kg | - | 90,424 | |
| Landfill | kg | 206,876 | 7,467 | |
| On-site storage | kg | - | 8,610 |
Hazardous and non-hazardous waste disposal, 2020
Non-Compliance with Environmental Laws and Regulations
In 2020, no significant environmental incidents or regulatory non-compliances were recorded. Syama recorded 14 moderate incidents related to air quality, noise and vibration; whilst Mako recorded one moderate incident related to the excess sulphate in water samples.
Environmental incidents
| 2019 | 2020 | ||||
|---|---|---|---|---|---|
| Indicator | General Descriptor | Syama | Mako | Syama | Mako |
| Minor | Environmental impact: small and/or localised impact (e.g.large contained spill, incorrect waste disposal).On-site: can be remediated within one weekOff-site: can be remediated within one shiftCompliance: non-compliance causing environmentalnuisance. Prosecution unlikely. | 16 | 12 | 29 | 10 |
| Moderate | Environmental impact: substantial localised impact (e.g.unapproved clearing, disturbing heritage site).On-site: confined impact requiring medium-termrecovery (1 month+)Off-site: can be remediated within one weekCompliance: management and control of the impactis the subject of regulatory inspection, corporate policy,however, it is unlikely that prosecution may result fromnon-compliance. | 10 | 2 | 14 | 1 |
| Major | Environmental impact: serious environmental impact. Mayimpact off lease areas (e.g. uncontrolled fire, destroyingheritage site).On-site: unconfined impact requiring long-termrecovery (years)Off-site: confined impact requiring medium-termrecovery (1 month or more)Compliance: management and control of the impact isrequired by legislation or statutory obligations and it islikely that prosecution may result from non-compliance. | 0 | 0 | 0 | 0 |
| Catastrophic | Environmental impact: disastrous and/or widespreadimpact (e.g. tailings dam breach).On-site: widespread unconfined and long-termrecovery impact; major damage remains (years)Off-site: unconfined and long-term recovery impacts;damage remains (years)Compliance: prosecution will result in process halt and lostproduction time. | 0 | 0 | 0 | 0 |
Climate Change and Greenhouse Gas Emissions
Resolute recognises the significance of climate change as a global issue and its responsibility to reduce greenhouse gas (GHG) emissions from its operations. Resolute has been disclosing its Scope 1 and 2 GHG emissions since 2019. At our mine sites, GHG emissions are predominantly produced from diesel consumption to provide electricity, for transportation and for mobile equipment use.
| 2019 | 2020 | |||||
|---|---|---|---|---|---|---|
| Indicator | Sub-indicator | Unit | Syama | Mako | Syama | Mako |
| GHG emissions | Scope 1 | tCO2e | 148,947 | 88,600 | 150,369 | 93,134 |
| Scope 2 | tCO2e | 6 | 16 | 6 | 20 | |
| Total | tCO2e | 148,953 | 88,616 | 150,375 | 93,154 |
Total GHG Emissions Scope 1 & 2, 2019 and 2020
GHG Emissions Intensity, 2019 and 2020
| 2019 | 2020 | ||||
|---|---|---|---|---|---|
| Indicator | Unit | Syama | Mako | Syama | Mako |
| GHG emissionsper ounce of goldproduced | tCO2e per Au oz | 0.61 | 0.49 | 0.7 | 0.54 |
In 2020, Resolute developed a methodology for Scope 3 GHG accounting in accordance with the GHG Protocol and using the Quantis Scope 3 evaluator tool. This data gives due consideration to the materiality of our emission sources in our value chain and we will continue to refine our modelling in subsequent performance periods.
Total GHG Emissions Scope 3, 2019
| 2019 | ||||
|---|---|---|---|---|
| Indicator | Sub-indicator | Unit | Syama | Mako |
| GHG emissions | Scope 3 | tCO2e | 769,715 | 194,548 |
| Total | tCO2e | 964,263 |
In 2021 we aim to evaluate opportunities for the reduction of GHG emissions across our business as a first step towards the establishment of GHG reduction targets. A key initiative is the construction of a hybrid power station at Syama to reduce both power generation costs and GHG emissions. The power station is expected to reduce GHG emissions of Syama by 20%. Commissioning of the hybrid power station will be complete by early Q2 2021.
Case Study: Building a new hybrid power station at Syama
In 2020, Resolute started construction of a new hybrid modular power station at Syama in conjunction with Aggreko, a leading power generation provider. The power station will displace the reliance on diesel generators which have to run constantly to provide system stability and were no longer the most efficient power generation solution relative to new technologies. The construction of the hybrid power station will proceed in two stages as follows:
Phase 1 was completed in 2020 and included the installation of three new thermal energy Modular Block generators providing 30MW of energy to the operation, the construction of a heavy fuel oil facility and the construction of a 10MW battery storage system providing spinning reserve displacement, to counterbalance sudden variations in load.
Phase 2 involves the addition of a fourth Modular Block generator which will increase thermal power generating capacity from 30MW to 40MW. Phase 2 implementation will be driven by the specific power needs of Syama and is projected to occur within the next three years.
Additionally, the project is anticipated to deliver $10 million in cost savings in the first full year of operation via a 40% reduction in total cost of energy, ensuring both reduced environmental impact and long term mine sustainability.
Syama Hybrid Power Station (right) & HFO Fuel Farm (left) construction areas
Tailings Management
Resolute currently owns and operates two tailing dams, in Mako and Syama. The Company is not currently constructing, closing or decommissioning any tailings facilities.
In 2020, Resolute shared conceptual plans to develop the A21 pit at Syama into an above-ground TSF with a maximum downgradient height of 35m above ground level. The development of the above-ground facility would increase the tailings capacity of A21 from approximately 3.5 years to 11 years; sufficient for the current Syama life of mine.
In 2020, Resolute responded to the Church of England's call for increased transparency on tailing dam management and provided disclosures to the initiative, which are updated for 2020 in the Tailings Storage Facilities Disclosures' 2020 table. Resolute welcomed the publication of the new Global Industry Standard on Tailings Management and is committed to undertaking a gap analysis against the standard in 2021. Both of Resolute's tailings dams are externally audited annually with audit reports shared with the Board.
In 2021, Resolute will strengthen its Tailings Governance Framework and subsequent disclosures in accordance with the International Council on Mining and Metals Guidelines.
Tailings Storage Facilities disclosures, 2020
| Syama Gold Mine | Mako Gold Mine | |
|---|---|---|
| Location of Facility | Adjacent to plant site | Adjacent to plant site |
| Methods used in the processing of the ore priorto deposition | Comminution, flotation,concentrate roasting, CIL | Comminution, CIL |
| Tailing storage | Conventional | Conventional |
| Toxic materials in TSF | Residual free cyanide | Residual free cyanide |
| For operational and closed facilities | ||
| Year construction was started | 1992 | 2016 |
| Current tailings production | Nominal 4.0Mtpa | Nominal 2.1Mtpa |
| Current density/water content of the tailingsbeing deposited | 45% (w/w) | 49% (w/w) |
| Expected remaining years of operations | 15 | 5 |
| TSF Monitoring | ||
| Frequency of internal inspections (if any) | Daily | Daily |
| Date of last internal inspection includingoutcome | 1 February 2020 (no issues) | 1 February 2020 (no issues) |
| Requirement for external inspections | Yes | Yes |
| Frequency of external inspections | Annual | Annual |
| Name of external firm that performs theinspection | Golder | Knight Piesold |
| Date of last external inspection includingoutcome | January 2020No significant issues | July to September 2020No significant issues |
| External rating system (i.e. local regulator) | Yes | Yes |
| Risk rating for the TSF | High Major C | High B |
| Syama Gold Mine | Mako Gold Mine | |
|---|---|---|
| For TSF with embankment retaining structures | ||
| Construction (upstream, downstream,centreline, other) | Combination of upstream anddownstream | Downstream |
| Construction (flat ground or slope) | Slight slope | Sloping - Valley-Fill |
| Spillway or other structure to mitigateovertopping | No. Secondary pump systemsand discharge lines are installedto manage water levels bypumping to storage dams | Yes |
| Over drain and under drain system | No | Underdrain |
| Standards/guidelines were applied to the damdesign and construction, i.e. Canadian (MAC/CDA), ANCOLD, ICOLD or others | ANCOLD, 2012DMPWA Code of Practice, 2015DMPWA Guide to the Preparationof a Design Report for TSF, 2015 | ANCOLD, 2012 |
| "Factor of Safety" (under current conditions and"worst case/undrained conditions") | Static - 1.8Seismic - 1.7 | Long term drained FOS = 1.5;Short term undrained FOS = 1.5(Tailings Release);Post Seismic FOS = 1.2 |
| Current dimensions of main structure, includingheight, upstream slope and downstream slope | Current height is 396.5mRL | 600 m x 500 mCurrent embankment height is151.3mRL |
| Planned final dimensions of main structure | Final embankment height will beat 408mRL | LOM (2020) embankment (Stage3/4) raise will be to 168mRL |
| Current volume of tailings facility (mm3, tonnes,etc.) | 1.38mm3 | 5.2Mt |
| Planned final volume of tailings facility | 9.4mm3 | 19.6Mt |
| Surrounding environment analysis | ||
| Location in a climatic zone where evaporationlevels are exceeded by precipitation | No | Yes |
| Seismicity rating of the TSF's location | 0.00 - 0.01g | 0.01 - 0.02g |
| Blasting from neighbouring mining operations | Yes, from underground miningoperations | Yes, from open cut miningoperations |
| Distance of the TSF to the mining operations | Circa 1,000m | About 150m to plant site |
| Identification of habitation(s)/settlements(s)and/or flora/fauna critical habitat(s) or highbiodiversity area(s) located downstream ofthe facility, with indication of areas or numberof populations at risk, and the mitigationmeasures that have been undertaken or remainto be implemented | Sparsely populated area neardam, township of Bananso isabout 10.5km downstream.PMP over LOM is 0.00014% | No permanent residences orstructures of any kind are locateddownstream of the TSF. TheNiokolo-Koba National Park(Critical Habitat) is located about4.5 km downstream of the TSFThe TSF will be downstream |
| construction only and includes anemergency spillway for each raise | ||
| The design operating procedurerequires a minimum freeboardand stormwater capacity forthe greater of: (i) 1 in 1,000-yearrecurrence interval, 72-hour stormevent occurring on an averageconditions pond, or (ii) 1 in 100-year wet rainfall sequence pond | ||
| Nearest critical infrastructure downstream fromthe facility, including nearby TSFs | Township of Bananso locatedabout 10.5km downstream | No critical infrastructure has beenidentified downstream of the TSF |
Progressive Rehabilitation and Closure
Resolute's overall objective for mine closure is to prevent or minimise adverse long-term environmental, physical, social and economic impacts; and to create stable landforms that provide self-sustaining natural ecosystems and leave a positive legacy on surrounding communities and other associated groups.
A key aspect of mine closure is undertaking progressive rehabilitation, or the restoration of disturbed land during the mining process, rather than large-scale works at the end of a mine's life. A formal permitting process is in place at both Mako and Syama to control activities associated with mining, construction and exploration works that have potential to impact on land, property, flora and or fauna. A Land Clearance Permit is mandatory for all land disturbance activities.
For Syama, the total area of land disturbance in 2020 was 48.5 hectares (ha), arising from exploration (10.15ha), construction work (4.33ha), mill (0.7ha) and mine operation (33.3ha). For Mako, the total area of land disturbance in 2020 was 2.5ha, arising from exploration (0.18ha), LOM extension (0.14ha), construction work (1.3ha) and for developing a firebreak in a ranch as part of the livelihood restoration activities (0.9ha).
Total land disturbed, 2018, 2019 and 2020
| Total Land Disturbed | Unit | 2018 | 2019 | 2020 |
|---|---|---|---|---|
| Syama | ha | n/a | 16.4 | 48.5 |
| Mako | ha | 57.5 | 1.3 | 2.5 |
| Total | ha | n/a | 17.7 | 51 |
At Syama progressive rehabilitation of disturbed land was undertaken over a total of 12.3ha in 2020, with the rehabilitation of a waste rock dump and the Kamberke forest. This included over 22,300 trees planted from over 36 indigenous species. Minor rehabilitation works were conducted in Mako in 2020 and these were associated with the reclamation of areas temporarily disturbed during the construction phase, maintenance of areas rehabilitated in previous years and the ongoing maintenance of active disturbance areas. Rehabilitation included 0.9ha of bowal habitat, designated as Critical Habitat, for a total of 5.8ha successfully rehabilitated since 2019 (see below case study).
Rehabilitation trials were initiated on tailings and waste rock material to inform development of a closure strategy for these physical components of the mine. In 2020, the Company received a third-party review of its Rehabilitation and Closure Plan, including the development of a strategy for financial closure provisioning.
Total land rehabilitated, 2018, 2019 and 2020
| Total LandRehabilitated | Unit | 2018 | 2019 | 2020 |
|---|---|---|---|---|
| Syama | ha | n/a | 8.3 | 12.3 |
| Mako | ha | 3.6 | 6.8 | 1.9 |
| Total | ha | n/a | 15.1 | 14.2 |
Case study: Rehabilitation of disturbed sites - the successful example of the reconstruction of a bowal landscape
The bowal is a vast ferralitic or lateritic rock armoured plateau which is grassed in the rainy season and bare in the dry season. These habitats are unique to West Africa due to their limited spatial distributions and they host three priority herbaceous plant species of restricted global distribution: Lepidagathis capituliformis, Tephrosia berhautiana and Scleria chevalieri. A bowal landscape was successfully reconstructed by Petowal in 2019, as part of its rehabilitation and restoration of sites disturbed by the construction of the Mako mine and its various infrastructures.
The rehabilitation program aims to ensure non-intrusive land use and to create stable landforms, not requiring continuous maintenance, that are consistent with the surrounding physical and social environment. Rehabilitation efforts are carried out in a manner that ensures the safety of local people and benefits them as much as possible.
To reconstruct the bowal, the selected site was cleaned of any contamination, pollution and waste. Levelling, filling and excavation operations were undertaken to limit or attenuate the gullies created due to the runoff of rainwater. Original topsoil, containing the seeds of priority and non-priority species, was then added to encourage native plant growth. Finally, stones and rubble were scattered on the plateau to reconstruct the unique landscape.
We noted that out of the 38 species originally recorded in the bowal, 36 were listed in the first year of rehabilitation, demonstrating a specific recovery rate of 94.7%.
Resolute's biodiversity and environmental conservation strategy consists of obtaining a net gain for "priority" biodiversity and avoiding any net loss in terms of natural habitat. The rehabilitation activities will be carried out and expanded gradually through the lifecycle of the mine.
Biodiversity
Mako is in an area of high ecological value, close to the PNNK and the Gambia River. Although Mako is expected to have no direct impact and negligible residual impact on the PNNK, some residual impacts on biodiversity will result from mine development and operations.
This includes residual impacts on the habitats of the
Residual biodiversity impacts, Mako Gold Mine
Western chimpanzees, hippopotamus, leopards and two restricted range plant species (Lepidagathis capituliformis and Tephrosia berhautiana) through habitat conversion in areas outside of the PNNK. Natural habitats impacted include gallery forest, wooded savannah, bowal habitat, and the Gambia River. To mitigate these impacts Resolute implements ecological monitoring surveys and is developing a biodiversity offset programme.
| Species / Natural Habitat | Residual Impact(quality hectares) | Summary of Impacts |
|---|---|---|
| Western chimpanzee | -473 QH | Direct habitat loss and disturbance resulting from mineoperation has displaced the Mako chimpanzee community fromthe eastern margins of their ranging habitat in areas outside thePNNK. This is equivalent to approximately 10% of their habitatrange. The core habitat of the Mako chimpanzees is within thePNNK and is not directly impacted by the mine. |
| Leopard | -211 QH | Leopards are present in low numbers outside the PNNK andtheir range is limited by available prey species. Mine operationis known to have resulted in some direct loss and disturbance ofleopard habitat. |
| Hippopotamus | -19 QH | Impacts are predicted to come mostly from humanhippopotamus conflict (exacerbated by in-migration) and fromlivelihoods development which will increase agriculture in someareas of hippopotamus habitat. |
| African lion | Negligible | It is uncommon for lions to venture outside of the PNNK. |
| Giant eland, African wild dog,African elephant | None | Transect surveys and impact modelling confirmed that noresidual impacts are anticipated. |
| Gallery forest | -12 QH | Loss and degradation |
| Wooded savannah | -80 QH | Loss and degradation |
| Bowel habitat | -61 QH | Loss and degradation. This habitat includes the priority plantspecies L. capituliformis and T. berhautiana. |
| Gambia river | -19 QH | Loss and degradation |
Ecological Monitoring
At Mako, Resolute implements annual ecological monitoring surveys, including transect surveys and camera traps, to ensure the impacts to the habitat of priority species is consistent with those predicted in the ESIA and supporting baseline studies. These surveys have been repeated since 2016, alternating between the wet and dry season. To date, there is no evidence of degradation to the PNNK or the Gambia River resulting from the operational activities of Mako.
Petowal Biodiversity Offset Programme
The Company has implemented the Petowal Biodiversity Offset Program (PBOP) to achieve a 'net gain' in priority biodiversity features and thus offset the residual impacts of the mine. The PBOP aligns with IFC Performance Standard 6 and the Business and Biodiversity Offset Program's Standard on Biodiversity Offsets, and necessitates an innovative approach informed by broad stakeholder engagement, robust science, expert advisory support, and independent audits to evaluate performance.
The PBOP comprises landscape-level conservation management, covering an area in the southeast part of the PNNK and contiguous community lands in the Commune of Tomboronkoto that are currently absent of formal protection.
The offset program is guided by an independent advisory panel comprising six experts with regional experience in conservation, rural development, primatology, civil society and academia. In its independent oversight role, the panel reviews technical plans and monitoring results, engages with stakeholders and provides expert recommendations to the Company.
Petowal Biodiversity Offset Programme Map
PNNK Component
In 2017, a tripartite agreement was entered into with the Direction of National Parks (DNP) and the international NGO Panthera, to implement a conservation program in a 1,700km2 Intervention Zone (IZ) of the PNNK. The overall objective of the first phase of the program was to keep the IZ secure through an effective system of forest patrols to better monitor and protect wildlife and its habitat. This financial and technical support model was rooted in the existing structures of the DNP and proved to be successful in establishing basic processes, capacity, logistics, infrastructure and in attracting funds, enabling a better protection of the pilot area.
In late-2019, the parties entered discussions to elaborate a new model of partnership for a five-year term, with due consideration to the results of an independent evaluation of the programme. The review and signing-off of the agreement were substantially delayed in 2020 due to COVID-19 and its effects on public administration, which impacted the implementation of activities. An agreement between Panthera and the DNP was signed in November 2020.
While there were delays in building and operationalising the Assirik base at the heart of the pilot area, the construction was able to be finalised by the end of the year. Activities in 2020 focused on training DNP agents, on improving 43km of roads which now allows for permanent access for patrols to Assirik even at the peak of the rainy season, and on maintaining law enforcement activities. Patrol efforts were strengthened via the appointment of additional DNP agents which resulted in the successful
arrest of poachers and the dismantling of poaching camps within the IZ.
Opportunistic wildlife observations made by patrol teams suggest trends of growth for wildlife populations. A remarkable herd of over 100 individuals of the critically endangered Western Giant eland was sighted. Elephant was sighted for the first time in a decade in January 2020.
Tomboronkoto Component
The Tomboronkoto Component of the PBOP operates in partnership with the municipal council of Tomboronkoto and selected communities and focuses on conservation efforts in areas outside the PNNK, but within the surrounding Biosphere Reserve. It aims to formalise the protection of community lands, acting as wildlife corridors, over the long term through the facilitation of a commune level land-use and micro-land use planning exercise, and targeted livelihood interventions.
During 2019, the international NGO African Wildlife Foundation (AWF) was nominated to work with local communities for a two-year pilot phase. This partnership ended in 2020 when Resolute took the lead for programme implementation. Significant progress was achieved in 2020, despite COVID-19 restrictions, including a review of the logframe and governance structure, community engagement and awareness raising on the aims of the programme, the development of community level governance structures to enable effective participation in the programme, and the establishment of a socioeconomic and ecological baseline. In 2021, activities will focus on identifying community areas for protection and piloting conservation approaches.
5. Our People
Our Management Approach
Our people are our most valuable asset and Resolute is committed to establishing a high performing, diverse and inclusive organisational culture that is free from discrimination and respectful of the different cultures present in the countries in which we operate.
We prioritise the health, safety and wellbeing of our people above all else and we are working proactively to improve the rigour and effectiveness of our systems and protocols across the Company, in accordance with leading practice.
We strive to act lawfully, with honesty, respect and transparency and to follow industry leading practice through the development and implementation of rigorous standards and guidelines.
In 2020, significant progress was made in strengthening Resolute's Policy Framework to ensure clear and consistent expectations and standards are established, in the way in which the Company conducts its business activities.
Resolute's Policy Framework
Resolute Mining - Code of Conduct
Outlines the Company's expectations of all Directors, Officers and Employees and is supported by the following:
Key policies, procedures and statements guiding our approach to responsible mining:
We aim to attract and retain talented individuals from diverse backgrounds by articulating a strong value proposition that includes a range of career and learning opportunities so they may develop to their full potential.
The material workforce topics covered in this section include:
- Employment;
- Labour Management Relations;
- Diversity and Equal Opportunity;
- Occupational Health and Safety; and
- Training and education.
SDGs relevant to our workforce
The three SDGs relevant to our workforce are: SDG 3: Good Health and Wellbeing; SDG 4: Quality Education; and SDG 8: Decent Work and Economic Growth.
| The contributions of workforce topics toGoal 3: | ||
|---|---|---|
| •Development of robust health andsafety policies and procedures | ||
• Implementation of effective COVID-19 mitigation measures
- Strong safety performance with LTIFR below industry-peer standards
- Primary, occupational and emergency medicine capability established across operations
- Routine health and safety monitoring, including drug and alcohol testing
- Ongoing health and hygiene education and awareness
The contributions of workforce topics to Goal 4:
• Construction of primary schools in Syama and Mako host communities • Ongoing host community training and education
• Artisan training across operations
The contributions of our workforce topics to Goal 8:
- Direct employment of 898 national employees at the operating assets, representing 88% of our operations workforce
- $33 million paid in 2020 for employee wages and benefits
- Gender diversity targets again established in 2020 across the Group
Source: United Nations
Employment
Resolute's workforce comprised of 1,146 employees at the end of December 2020, split across our corporate offices in Perth, Western Australia and in London, United Kingdom, and our African operations and exploration projects.
We are also supported by approximately 3,189 contractors predominantly based at our operations in Mali and Senegal. Our key contract partners provide mining, blasting, security and catering services.
| Employees and Contractors by location | ||||||||
|---|---|---|---|---|---|---|---|---|
| Our workforce mix - Total | Australia | UnitedKingdom | Mali | Ghana | Senegal | Côted'Ivoire | Guinea | |
| Employees | 1,146 | 46 | 9 | 713 | 45 | 303 | 20 | 10 |
| Contractors | 3,189 | 4 | 2 | 1,912 | 375 | 884 | 12 | 2 |
In total, Resolute's combined direct and contract workforce at our African operations in 2020 consisted of 91% national employees.
Approximately 60% of our mid and senior management personnel at Syama are Malian and 33% at Mako are Senegalese. Succession planning and targeted training will be used extensively in 2021 to further progress our nationalisation agenda.
Turnover for Resolute in 2020 was 9% and 7% across the operations indicating a stable workforce. Turnover is monitored monthly and exit interviews are conducted where possible to understand where opportunities for improved retention exist.
In 2020, Resolute welcomed 137 new employees to the Company, of which 118 (86%) were at our West African operations. Of these, 89% were national employees, 50% were employed directly from the local communities and 9% were female.
To achieve our objective to attract and retain talented and diverse individuals, we offer competitive remuneration and benefits. Remuneration is based on experience, skills and performance and is regularly reviewed against the market
and our peers to ensure competitiveness.
In 2020, we implemented a new Remuneration Framework that supports the Company's objective of establishing a simple, fair and competitive remuneration standard. This framework identifies clear levels of work across the Company, with associated fixed and variable salary structures.
In 2020, we provided full private health insurance to all senior national employees and their immediate families. This decision was made to attract and retain key people and in recognition of the fragility of the health and medical infrastructure in West Africa, which has subsequently been further challenged by the global pandemic. This augments the health insurance cover that was already provided to all our national employees.
We have a formal annual performance and development review process that provides a structured opportunity for employees to receive feedback on their performance and discuss career and development opportunities. At the asset level, we are taking further steps to ensure that all our expatriate employees have a performance obligation to train, coach, mentor and develop national employees.
Our workforce by location, 2020
Case study: The Syama Apprenticeship Programme
In 2017, Resolute established an apprenticeship program to address a lack of formal employment and secondary education opportunities for local youth in the communities surrounding Syama.
Four young people from the Syama region (two males and two females) were selected in 2017 under this program and sponsored by Resolute for the full duration of their three-year apprenticeship program at the Saint Jean Bosco Technical College in Sikasso. This program enables trainees to undertake study in an area of their choosing with students often pursuing studies in electrical, auto-electrical, mechanical and metal fabrication disciplines.
Resolute provides accommodation to the students whilst they are studying and jobs at Syama in a related area during the holidays. Feedback from the Saint Jean Bosco Technical College indicated the students who commenced the program in 2017 were amongst the best in their class.
These four trainees successfully completed their apprenticeship in October 2020 and have been offered full-time employment in the maintenance department at Syama.
A further four trainees were on-boarded in 2018 and in 2019, bringing a total of 12 trainees into the programme. There was no programme in 2020 due to COVID-19, but the 2018 group are scheduled to complete their apprenticeships in October 2021 as originally planned.
Labour Management Relations
We support the right to freedom of association and collective bargaining. Our approach to employee and industrial relations is founded on transparency, respect and open dialogue, and is largely determined by the legal and regulatory framework that exists across our operating jurisdictions.
In Mali, labour management relations directly consider:
- The Malian Labour Code;
- The Collective Convention of the Mining, Geological and Hydro Geological Companies in Mali; and
- The SOMISY Establishment Agreement.
These instruments are used to guide the development of our people strategies and to manage our employee and industrial relations risk and opportunities.
There is no stipulated minimum notice period to be provided to employees for operational changes however, relevant management decisions directly consider the Company's values, fairness test and applicable labour regulations; and are facilitated via ongoing consultation with Union representatives and staff delegates.
In 2020, Resolute experienced industrial unrest at Syama that was due, in part, to the restrictions applied to the operation in response to the COVID-19 pandemic. This unrest had an impact on site production and, ultimately, company performance.
In view of the employee relations challenges experienced in 2020, we recognise that we can improve our approach and are committed to working with the Union in 2021 to reestablish a constructive and productive employee relations environment at Syama. To this end, we will revitalise our internal union committees, improve employee relations governance and the sharing of information, and provide training to Union representatives and staff delegates to build capability.
In Senegal, labour management relations directly consider:
- The Senegal Labour Code;
- The National Interprofessional Collective Convention;
- The Collective Convention for Chemical and Extractive industries and Mining Prospection; and
- The Petowal Establishment Agreement.
Staff delegates at Mako do not belong to a particular labour union and the relations between management and staff delegates are constructive and are founded on respect, trust and productivity. In 2021, the Company will pursue a similar approach as outlined above at Syama to further strengthen employee relations at Mako.
There is no stipulated minimum notice period to be provided to employees for operational changes at Mako however, as in Mali, relevant management decisions consider the Company's values, fairness test, applicable labour regulations and are facilitated through consultation with staff delegates.
Diversity and Equal Opportunity
Resolute is committed to maintaining a diverse and inclusive workplace founded on the principles of equal opportunity, in an environment that is free from all forms of discrimination.
At Resolute, we believe that a diverse and inclusive workplace enables improved decision making where different and novel viewpoints are considered, drawing on the multiple experiences and perspectives in people from diverse backgrounds.
A diverse and inclusive workplace in turn facilitates improved attraction and retention of high calibre people from diverse backgrounds and helps to ensure that Resolute remains representative of the jurisdictions and markets in which it operates.
In 2020, we implemented the following initiatives to increase diversity and inclusion across the Company and more specifically at our operations:
-
Resolute recruitment standard was updated to prioritise national talent (see Local, Regional and National employment section);
-
Conscious and unconscious bias evaluations are being considered at each stage of the recruitment process and further training will be implemented in 2021;
-
Resolute Diversity and Inclusion Policy was revised;
-
Board approved gender diversity targets were reviewed across the Company;
-
Board endorsed Management to submit a proposal for a new parental leave policy in 2021;
-
Resolute continued to support flexible work arrangements; and
-
Improved internal communication programmes (e.g. Pulse Survey).
Gender diversity across our corporate offices and at Executive and Board levels is consistent with our targets. The main challenge lies in the improvement of the representation of women at our assets. This will be addressed in 2021 and beyond through targeted recruitment, promotion and development initiatives, encouraging women to apply for jobs in fields where they are not traditionally present.
| BusinessArea | Gender Diversity Key Performance Indicator | Target Timeframe2025 |
|---|---|---|
| Board ofDirectors | Representation of women on the Board of Directors of the Company | |
| ExecutiveCommittee(ExCo) | Representation of women in senior executive roles, defined as the Key ManagementPersonnel and Executives of the Company, excluding the MD & CEO who is includedunder the Board. | 50% ± 10% |
| CorporateGroup | Representation of women across corporate business divisions (e.g. Perth andLondon) | |
| Operations | Representation of women across African operations (e.g. Syama, Mako, CDI, MGBLand exploration) | 15% |
Board approved gender diversity targets
In 2020, Syama obtained an exemption from the Mali Government to employ women in underground mining roles, which is currently still forbidden by the national Labour Code. The exemption was granted on the basis that the Government is committed to promoting equal opportunities and recognised the work Resolute had been doing in training and developing female employees.
In accordance with our annual reporting commitment to the Workplace Gender Equality Agency (WGEA) and as one of the key considerations in the effective management of Resolute's remuneration framework, we conduct pay equity analysis at least annually to ensure fairness and consistency in remuneration practices across the Group and to, in part, enable the achievement of the Company's diversity and inclusion objectives.
To ensure like-for-like comparisons, analysis is conducted
according to level of work and operational / technical vs support function distinctions. Importantly, meaningful differences in remuneration typically exist in organisations and this is entirely appropriate, providing these differences can be explained relatively to role complexity / level / seniority and/or incumbent skills and experience.
Our current gender pay equity analysis indicated an overall 4% pay equity gap in favour of males across all levels of work when the Executive Committee remuneration was excluded. This difference has been carefully considered in detail and is deemed acceptable given current internal relativities and the impact specific lower-level roles have on the analysis.
Although Resolute ceases to have a reporting obligation to the WGEA in 2021, we will continue to disclose our gender metrics on a voluntary basis to WGEA going forward.
| Employeecategories | Female | Male | Total |
|---|---|---|---|
| Employee | 65 (7%) | 899 (93%) | 964 |
| MidManagement | 12 (13%) | 84 (88%) | 96 |
| SeniorManagement | 1 (9%) | 10 (91%) | 11 |
| Grand Total | 78 (7%) | 993 (93%) | 1,071 |
Case study: Empowering Women in Mining – Awa Fofana
In 2020, Awa Fofana, Syama underground safety superintendent, was recognised by the international NGO Women in Mining UK, as one of the 100 Global Inspirational Women in Mining. Awa received this recognition for her inspiring leadership and strong advocacy towards the nationalisation of the Malian mining workforces. As part of the Company's nationalisation and succession plan, Awa was promoted to the Safety Manager role, leading a team of safety personnel and accountable for the management of the overall site safety management system.
Awa Fofana was born in 1984 in Tabakoto, Mali. Her parents worked as artisanal gold miners during the dry season and farmed during the rainy season. She completed a master's degree in English in the Malian capital of Bamako and before joining the mining industry she expanded her credentials in health and safety, leadership and management, and auditing. Awa joined Resolute in 2015 as a data administrator and translator and was quickly recognised for her ambition and capability.
Occupational Health and Safety (OHS)
Health and Safety Management Audit
In accordance with Resolute's 2019-2020 Internal Audit Plan, an independent outsourced internal audit service provider conducted an audit of health and safety management practices across the Company. The primary aim of the internal audit was to assess the effectiveness of the management systems, frameworks and controls that had been implemented to enable optimal health and safety performance.
Overall, Resolute's health and safety management systems were assessed to require significant review and improvement to support a robust OHS control environment. The internal audit noted two major and two moderate rated findings:
Internal audit findings
| Major Audit Findings | |||
|---|---|---|---|
| 1. | OHS Standards and procedures are not fit forpurpose | ||
| 2. | Lack of electronic systems to support effective OHSmanagement | ||
| Moderate Audit Findings | |||
| 3. | Ineffective and inconsistent site OHS riskmanagement | ||
| 4. | OHS reporting and governance require |
In addition to the above, several process and control strengths were noted during the internal audit and included:
Process and control strengths
| Process & Control Strengths | |
|---|---|
| 1. | Corporate management acknowledge the need forimprovement and are committed to implementingimproved frameworks, systems, and controls |
| 2. | Site OHS personnel demonstrated a good levelof understanding, capability, expertise and acommitment to embed improvements withinoperations |
| 3. | In the absence of formalised systems andstandards, OHS practices are being maintained bymanual and decentralised processes and controls |
| 4. | A positive safety culture was observed |
An action plan was immediately developed to address all internal audit findings and accountability assigned to the Sustainability team to close out all actions and report progress to senior management and the Committee. In 2020, the following actions were implemented to directly address all internal audit findings:
Actions implemented to address internal audit findings
Actions to Address Audit Findings
| 1. | Company Health, Safety & Security Policy publishedto align with leading practice and to set renewedexpectations on the standards of performance required |
|---|---|
| 2. | Critical Hazard Management Standards developed andimplemented that identify the key fatality risks acrossthe Company and stipulate the management controlsto be implemented to mitigate risk to acceptable levels |
| 3. | Complete review of Resolute's Risk Framework andthe development of a Risk Analysis Tool to standardiseassessments of risk likelihood, consequence andtolerability across the Company |
| 4. | Review of Resolute's Incident Management andReporting protocols |
| 5. | Implementation of INX InControl electronic health andsafety management system to systemise the reporting/ notification of all incidents and the management ofhealth and safety events |
| 6. | Risk workshop undertaken with Resolute ExecutiveTeam to ensure alignment in understanding of riskframework methodology and approach |
| 7. | Health, safety and security performance establishedas a standing agenda item for the SustainabilityCommittee of the Board |
| 8. | Asset-level risk reviews undertaken to ensure optimalrisk mitigation and integration with the revisedCompany Risk Framework |
Critical Hazard Management Standards
In 2020, significant work was undertaken to map the critical hazards that exist across our operations and carry the strongest likelihood of resulting in a significant / critical consequence event. This exercise involved a review of both Resolute's and the mining industry's safety performance in recent years with specific attention given to high potential and significant incident occurrence.
Once the critical hazards were identified, management standards were drafted in accordance with leading industry practice. These standards outline the mandatory safety practices and controls to be implemented to ensure effective risk mitigation. The Critical Hazard Management Standards (CHMS) were subject to a corporate and operations review process, whereby subject matter experts assessed and validated the information for completeness and accuracy.
A total of seven CHMS were developed and communicated across the Company. In 2021, the priority will be to ensure all relevant personnel receive CHMS and other high-risk training, to verify competency and validate the effectiveness of critical controls in the field.
Critical Hazard Management Standards
| Critical Hazards | Management Standards |
|---|---|
| Emergency & ThreatEvents | Security ManagementEmergency Management |
| Stored Energy | Stored EnergyIsolation and Tagging |
| Working in HighRisk Environments | Permit to WorkConfined SpaceWorking at HeightsExplosives & ShotfiringFire & ExplosionWorking AloneLightning |
| Fixed & Mobile Plant | Fixed Plant SpecificationsMobile Plant SpecificationsLight Vehicles SpecificationSurface Traffic ManagementUnderground Traffic ManagementTyre & Rim ManagementCranes & Lifting |
| HazardousChemicals &Dangerous Goods | Hazardous ChemicalsManagementDangerous Goods Management |
| Ground Control& TailingsManagement | Underground Ground ControlSurface Ground ControlTailings Management |
| OccupationalExposures | Respirable DustIrrespirable of NoxiousAtmospheresInfectious Diseases |
OHS Training
All workers and site visitors receive mandatory inductions to ensure they are made aware of relevant OHS policies, processes, and practices. In addition, area-specific inductions are provided to employees which are relevant to their designated work area.
Mining operations create occupational health and safety risks. The identification, assessment and mitigation of these risks is critical to ensure the health, safety and wellbeing of our workforce. Key to our risk mitigation strategy is the provision of technical and professional development opportunities determined by the competency profiles established for different roles.
In 2021, we will prioritise training that focuses on high-risk work activities, to ensure our people understand and comply with the safe systems of work that have been established to manage risks associated with these tasks. Specifically, permit to work, isolation and tagging, working at heights, confined space and defensive driver training and other programs will be delivered in 2021.
OHS Statistics
Resolute achieved a 58% reduction in its TRIFR in 2020 compared to 2019. This is largely attributed to the strong safety culture that exists across operations, the commissioning of the Syama Underground and the review of Resolute's health and safety management system that was undertaken to address specific deficiencies identified in the internal audit process.
Company and asset-level incident rates are below Western Australian mining industry frequency averages, and no work-related fatalities were recorded.
Resolute monitors occupational exposures at its assets closely. In 2020, infectious disease management requirements escalated significantly as a direct result of the COVID-19 pandemic.
LTIFR and TRIFR frequency rates, 2019 and 2020
| Indicator | 2019 | 2020 | ||||
|---|---|---|---|---|---|---|
| Group | Syama | Mako | Group | Syama | Mako | |
| Lost Time Injury Frequency Rate (LTIFR) | 0.63 | 0.15 | 0.00 | 0.10 | 0.00 | 0.42 |
| Total Recordable Incident Frequency Rate (TRIFR) | 2.09 | 1.16 | 2.96 | 0.87 | 0.91 | 0.84 |
GROUP -Total Recordable Injury Frequence Rate (TRIFR) &
* Frequency rates calculated per million hours worked.
Total Recordable Injury and High Potential Incident Frequency Rates, 2020
Total Recordable Injuries High Potential Incident TRIFR (R12) HPIFR (R12)
Confirmed COVID-19 cases across operations, 2020
| COVID-19 Cases | Active Cases | Recovered Cases | Complicated Cases | |
|---|---|---|---|---|
| Mako Clinic | 13 | 0 | 13 | 0 |
| Syama Clinic | 42 | 4 | 38 | 0 |
| Total | 55 | 4 | 51 | 0 |
Training and Skills Development
Resolute provides technical and professional development opportunities through the provision of training and skill development programs. Asset-level training provision is predominantly linked to the inherent risks associated with the tasks being undertaken.
At Syama and Mako, training for most employees is largely on-the-job, supplemented by mentoring and coaching from management and external service providers as required.
In 2020, we implemented a cloud-based Learning
Management System across the Company to systemise the delivery of select training events and to improve training records management.
Resolute will undertake a full review of its training capability in 2021 as it is recognised significant improvement will support the Company's workforce nationalisation, local employment and diversity and inclusion strategies.
Priority will be assigned to programs that improve compliance with Resolute's safe systems of work and build technical and frontline leadership capability. Priority will also be assigned to improving the reliability and accuracy of training data and maximising the utility of the Learning Management System, to improve reporting in accordance with the Global Reporting Initiative and other standards.
6. Social Responsibility
Our Management Approach
Social responsibility is an important consideration for the mining industry, due to the significant impact mines can have on surrounding communities and regions. Resolute is committed to maintaining high standards of social performance and seeks to implement robust management systems, practices, standards and safeguards to mitigate impacts, and contribute to the sustainable development of local communities.
In 2020, Resolute developed its Social Performance Policy to reflect our commitment to international leading practice and drive improvements across the operations.
The material Social topics covered in this section include:
- Community Engagement and Grievances;
- Community Impact and Management Measures;
- Livelihood Restoration Programs; and
- Community Investment Programs.
SDGs Relevant to Social Responsibility
Resolute's operations are in areas with high levels of poverty and limited employment opportunities. We aim to leverage the presence of our operations to develop local economies and provide benefits that extend beyond the life of our operations. Resolute identified two SDGs relevant to its business activities: SDG 1: No Poverty and SDG 16: Peace, Justice and Strong Institutions.
| The contributions of social topics toGoal 1: | ||
|---|---|---|
| •Direct community investment over$1.4 million in 2020 across Mako andSyama |
• Successful restorations of livelihoods in Mako leading to improvements in food security and household income generation
The contributions of social topics to Goal 16:
- Developed a corporate grievance procedure providing a clear escalation and resolution process for complaints and aligning with side level processes
- Reduction in lodged grievances by 75% since 2019, and reduction in severity of grievances with only minor level complaints recorded
- Resolved all community complaints and grievances
Source: United Nations
Community Engagement and Grievances
Resolute understands the importance of regular and transparent communication. We are committed to engaging with local communities and local stakeholders to promote public participation, develop sustainable livelihoods, and build and maintain authentic partnerships characterised by integrity, transparency, cooperation and mutual benefit.
Community Engagement
Resolute engages with communities surrounding its mine through several permanent and ad hoc consultation structures with the aim of communicating business developments, ensuring that local communities' perspectives and concerns are understood, and to secure broad-based support for our operations. Our local communities are defined as follows:
- Syama Gold Mine: villages within the Fourou Commune; and
- Mako Gold Mine: villages within the Tomboronkoto Commune.
In addition, the Company regularly meets with local and regional government representatives. All engagement structures are underpinned by established Stakeholder Engagement Plans and frameworks.
At Mako, several specialised consultation structures have been established. The Local Consultative Committee (LCC) is a monthly forum consisting of representatives from the four impacted villages, the Municipal Council and Mako. The Mayor of the municipality acts as independent chairman of the committee. The LCC is complemented by a Local Employment Working Group and a Local Procurement Working Group which aim to ensure local stakeholders are empowered to capitalise on opportunities linked to the mine.
At Syama, the primary community consultation mechanism is the SOMISY Mining Community Consultative Committee (SMCCC) which includes representatives from the 29 villages of the rural Municipality of Fourou and other relevant stakeholders. In 2020 the SMCCC underwent an external review to improve its effectiveness and inclusiveness.
Several opportunities for improvement were identified in the external review, including the need to ensure the SMCCC is comprised of representatives from all host communities/vulnerable groups; the need for improved governance by Resolute; and a better leveraging of the strategic value of the Committee to address broader ESG issues and opportunities. The SMCCC is augmented by youth coordination meetings for Fourou and a local recruitment committee.
In 2020, due to COVID-19 related government restrictions limiting face-to-face meetings, our ability to engage with these consultation structures was compromised. All meetings held prioritised community health by providing PPE and maintaining social distancing.
Formal community meetings, 2019 and 2020
| Mine | Community Group | 2019 | 2020 |
|---|---|---|---|
| Syama | Community Advisory Committee(monthly meetings) | 12 | 4 |
| Consultative meetings on thecoordination of young people inFourou | 24 | 29 | |
| Local Recruitment Committee | 12 | 3 | |
| Mako | Local Consultative Committee | 12 | 3 |
| Local Employment Working Group | 9 | 1 | |
| Local Procurement Working Group | 2 | 0 |
Community Grievances
Community grievances are common for mining operations and are an indication that accessible redress mechanisms have been established for local stakeholders. Community issues and responses registers, and community complaints handling procedures exist at the operations to facilitate open communication and afford avenues for local
stakeholders to have their concerns, complaints and grievances addressed by the Company.
In 2020, Resolute developed a corporate level 'Community and Local Stakeholder Complaints and Grievance Procedure' to align the approach taken to resolve community complaints and grievances across the Company's operations, in accordance with international leading practice.
The procedure allows for a legitimate, simple, accessible, equitable, rights-compatible and culturally appropriate process, for the community and local stakeholders to raise concerns about our operations. Specifically, it describes a clear process for the escalation of grievances and ensures that incidents will be addressed in a timely and transparent manner.
We aim to develop positive relations with local communities built on trust and transparency. Most concerns arise from miscommunication and are quickly resolved without formal registration under our grievance mechanism process or registered as a community incident.
During 2020, we did not receive any significant community complaints. Additionally, the number of complaints lodged decreased significantly from 2019.
| 2019 | 2020 | ||||
|---|---|---|---|---|---|
| IncidentCategory | Category Description | Syama | Mako | Syama | Mako |
| Minor damage to structures of some significance | 1 | 1 | 2 | 1 | |
| Minor - level 1 | Minor reparable infringement to cultural heritage | ||||
| Damage or loss of community asset | |||||
| Ongoing serious social issues | 3 | 3 | 0 | 0 | |
| Permanent damage to items of cultural heritage | |||||
| Moderate - level 2 | Injury to community member | ||||
| Strong community complaints/reaction | |||||
| Significant compensation required | |||||
| Very serious widespread social impacts, irreparabledamage to highly valued structures / items / sitesof cultural significance | 10 | 0 | 0 | ||
| Major - level 3 | Community fatality | ||||
| Aggressive community reaction: stoppage ofoperation during negotiation | |||||
| External arbitration required |
Community incident categorisation and results, 2019 and 2020
Community Impacts and Management Measures
Resolute recognises that the operation of a mine in a rural region has the potential to cause adverse impacts on local communities (particularly vulnerable households) if not appropriately managed.
At Mako, the development of the mine led to the economic resettlement of local communities. A Livelihood Restoration Programme (LRP) was established to mitigate and compensate for these impacts (refer to The successful restoration of livelihoods in Mako case study). At the end
of 2020, the LRP was 98% complete and an overview of our strategic areas, programmes developed, and investments are available on our website.
During 2020, Resolute commissioned the Cashew Open Pit Mine at Syama. This required the provision of compensation totalling $201,558 in the form of monetary contributions and support for affected farmers to purchase 37.82ha of alternative farming land.
The development of a corporate livelihood resettlement and restoration procedure is being developed to ensure programmes are established according to leading practice. This will be published in 2021.
Case study: The successful restoration of livelihoods in Mako
The primary objective of the Mako Livelihood Restoration Programme (LRP) is to mitigate the negative impacts mine operations may have on existing economic activities, and to promote local sustainable development.
The Mako Livelihood Development Program was established in 2016 in accordance with Senegalese regulations and international standards, following extensive consultations with stakeholders and affected communities.
The LRP includes two primary work streams. The first being livelihood restoration, in which five separate programmes were established to mitigate losses in grazing and agricultural land, forest resources, and artisanal mining areas. Resolute contributed $632,600 to fund the construction of five market gardens in the four villages directly impacted by the mine operation, covering an area of approximately 100ha.
The second LRP work stream involved the implementation of livelihood improvement initiatives that focused on the intensification and modernisation of local agricultural and livestock practices to increase food security and income generation. These initiatives were implemented at a total cost of $317,100.
Extensive consultation and engagement was undertaken with the local community and other stakeholders prior to, and during, the delivery of the LRP in an effort to address the various concerns of all parties and to effectively manage expectations as to the LRP aims, objectives and timeframes. Open communication was maintained so that issues and concerns were effectively addressed in a timely manner.
At the end of 2020, the LRP was 98% complete and positive feedback has been received from the community and other local stakeholders relative to reported improvements in food security and household income generation. These reports were further supported by the results of the annual Community Impressions Survey that indicated 80% (2019) and 91% (2020) of respondents believe the Company actively supports local livelihood development activities.
Community Investment
Resolute adopts a strategic approach to community investment, aligning funding to local stakeholders' needs, local and regional development priorities and national legislation. We develop multi-year funding programmes that enable lasting sustainable development outcomes for local communities, and prioritise investment in:
- construction of critical social infrastructure and services (e.g. health, education, water, sanitation);
- capacity building and training initiatives;
- local economic development and self-sufficiency projects; and
- improved health and education outcomes.
At Syama, a Community Development, Environment and Health Plan (CEHP), was established via a participatory process with the communities in the commune of Fourou to finance projects over five years. In 2020, the CEHP allocated $432,581 to fund critical local development programs, a portion of which was put on hold due to COVID-19 restrictions. Our focus in 2021 will be concluding and consolidating these 2020 commitments.
At Mako, a Social and Environmental Investment Fund (SEIF), was developed in partnership with the municipal council of the Tomboronkoto Commune. In 2020, the SEIF allocated $858,425 for the implementation of 20 micro-projects. In addition, $95,000 was allocated to the development of health programmes, and $40,000 for the Gambia River rehabilitation (refer to case study).
In 2020 Resolute committed over $1.4 million towards community investment. Details of how the funding was used are outlined below.
Critical social infrastructure
In 2020, Resolute funded over $700,000 in critical social infrastructure at Mako and Syama. This included financing the construction of:
- hydraulic infrastructures, notably pumps, boreholes and water towers equipped to facilitate access to clean drinking water in villages of the Fourou Commune;
- a secondary school in Syama;
- a maternity clinic in Tabakoroni;
- a maternity hospital in Kédougou in partnership with the departmental council;
- a radio station office in Tomboronkoto;
- an abattoir in Mako; and
- a heavy truck parking area in Mako.
Capacity building and training programmes
In 2020, Resolute prioritised capacity building in the water management and education sectors, in partnership with local authorities. Specifically, in Syama we provided training to 21 village-level Water Management Committees (for 158 members) to strengthen their management skills and their capacity to meet their water infrastructure responsibilities. Additionally, we provided training to 33 School Management Committees (for 264 members) on their roles and responsibilities, educational goals, national programmes and administrative skills.
Self-sufficiency programmes
In 2020, we commissioned a feasibility study for the development of income-generating projects for youth and women in the local communities around the Syama mine, which identified several suitable activities such as the rehabilitation of market gardens, manufacturing, livestock rearing and fish farming. We commenced implementation with two pilot fish farming projects in Syama and Finkolo, in collaboration with the Sikasso Regional Fisheries Authority, which were designed to improve household income and nutrition.
Additionally, pilot programmes to support horticultural producers were implemented in two local communities near the Mako mine. The programmes serve as "field schools", with the Company's agricultural technicians running academic and practical training to enable communities to acquire new market garden and banana production skills. Moreover, a series of training courses in organisational matters, administrative and financial management were provided to professionalise producers, and support their self-sufficiency.
Public Health and Safety Programme
In 2020, Resolute invested over $220,000 primarily for the improvements of health infrastructure and education campaigns to reduce diseases such as malaria, HIV, diabetes, hypertension and malnutrition. Additionally, we also adopted specific COVID-19 health measures to protect our local communities.
At Mako, we implemented a pilot phase of an ambitious programme, aligned with the Senegalese Health Development Plan, with the aim to build the capacity of local stakeholders to provide health, hygiene, sanitation and COVID-19 related training. An independent review of the technical services provided was undertaken to inform the extension of the programme to the broader commune. Results of the independent review will be received in early 2021 and will be disclosed and addressed accordingly.
At Syama, our public health activities were conducted to prevent malaria, HIV and COVID-19. This included providing diagnostic kits and medical materials, but also informing modes of transmission, prevention methods, and treatment places through local radio educational sessions. Additionally, Resolute started the implementation of a malnutrition programme in the village of Syama.
An independent review commissioned to evaluate the outcomes of Syama's health programme concluded that the Company's actions contributed to a significant reduction of the prevalence of critical diseases such as anaemia, HIV, and chronic malnutrition. Malaria and child malnutrition remained fundamental health problems in several villages despite reducing both prevalence rates. Those outcomes were shared with national and regional stakeholders.
Case study: Rehabilitation of the banks of the Gambia River
In June 2020, Petowal participated in the rehabilitation of an artisanal gold mining site located between the Mako mine and the Gambia River, which was degraded by intense semi-mechanised mining activities conducted by a foreign extractive company.
The degradation had resulted in sediment deposits, water pollution and fragmentation of chimpanzee and hippopotamus habitat. Several stakeholder groups were affected, including fishermen, artisanal gold miners and women gardeners, who derive income from the river. Domestic water use had to be reduced to the strict minimum to avoid diseases.
As part of a commitment to protect biodiversity and the development of local communities around the Gambia River, Petowal contributed $40,000, funding 50% of the Gambia River rehabilitation programme. The programme, designed in collaboration with local, regional and national authorities aimed to rehabilitate, reforest and protect an area of 300m x 2km along a bank of the Gambia River. Additional activities included strengthening participatory approaches and implementing capacity building and awareness-raising sessions for local communities.
The programme was launched to celebrate World Environment Day and brought together administrative authorities, local officials, communities, regional services and Petowal representatives. On the day, the participants planted 40 trees and cleaned up the banks of the Gambia River.
Following the rehabilitation, Petowal was awarded three certificates of satisfaction by the administrative authorities for its outstanding work in the field of forestry and reforestation.
Appendix A: GRI Content Index
| GRI Indicator | Disclosure title | Resolute's Response | ||||
|---|---|---|---|---|---|---|
| Organisational Profile | ||||||
| 102-1 | Name of the organisation | Resolute Mining Limited | ||||
| 102-2 | Activities, brands, products, and services | Page 2 | ||||
| 102-3 | Location of headquarters | Perth, Australia | ||||
| 102-4 | Location of operations | Page 3 | ||||
| 102-5 | Ownership and legal form | Page 2 | ||||
| 102-6 | Markets served | Page 2 | ||||
| 102-7 | Scale of the organisation | Page 2 | ||||
| 102-8 | Information on employees and other workers | Page 33 | ||||
| 102-9 | Supply chain | Page 17-18 | ||||
| 102-10 | Significant changes to the organisation and its supply chain | Page 3 | ||||
| 102-11 | Precautionary Principle or approach | Page 8 | ||||
| 102-12 | External initiatives | Page 9-10 | ||||
| 102-13 | Membership of associations | Page 9 | ||||
| Strategy | ||||||
| 102-14 | Statement from senior decision-maker | Page 4 | ||||
| 102-15 | Key impacts, risks and opportunities | Page 12-13 | ||||
| Ethics and Integrity | ||||||
| 102-16 | Values, principles, standards, and norms of behaviour | Page 8 | ||||
| Governance | ||||||
| 102-18 | Governance structure | Page 11 | ||||
| Stakeholder Engagement | ||||||
| General Standard Disclosures | 102-40 | List of stakeholder groups | Page 14 | |||
| 102-41 | Collective bargaining agreements | Page 34 | ||||
| 102-42 | Identifying and selecting stakeholders | Page 14 | ||||
| 102-43 | Approach to stakeholder engagement | Page 14 | ||||
| 102-44 | Key topics and concerns raised | Page 15 | ||||
| 102-46 | Defining report content and topic boundaries | Page 1 | ||||
| 102-47 | List of material topics | Page 15 | ||||
| 102-48 | Restatements of information | n/a | ||||
| 102-49 | Changes in reporting | n/a | ||||
| 102-50 | Reporting period | 01 January 2020 – 31December 2020 | ||||
| 102-51 | Date of most recent report | This is Resolute's 1stsustainability report | ||||
| 102-52 | Reporting cycle | Annual | ||||
| 102-53 | Contact point for questions regarding the report | Page 1 | ||||
| 102-54 | Claims of reporting in accordance with the GRI Standards | Page 1 | ||||
| 102-55 | GRI content index | Page 46-47 | ||||
| 102-56 | External assurance | Page 1 | ||||
| Management Approach | ||||||
| DisclosuresApproach | 103-1 | Explanation of the material topic and its Boundary | Page 14-15 | |||
| 103-2 | The management approach and its components | Page 8, 16, 20, 32 & 41 | ||||
| 103-3 | Evaluation of the management approach | n/a |
Management
| GRI Indicator | Disclosure title | Resolute's Response | ||||
|---|---|---|---|---|---|---|
| Economic Disclosures | Economic Performance | |||||
| 201-1 | Direct economic value generated and distributed | Page 16 | ||||
| 201-4 | Financial assistance received from the government | n/a | ||||
| Market Presence | ||||||
| 202-2 | Proportion of senior management hired from the local community | Page 17 | ||||
| Indirect Economic Impacts | ||||||
| 203-2 | Significant indirect economic impacts | Page 19 | ||||
| Procurement Practices | ||||||
| 204-1 | Proportion of spending on local suppliers | Page 18 | ||||
| Water | ||||||
| 303-1 | Water withdrawal by source | Page 22 | ||||
| 303-2 | Water sources significantly affected by withdrawal of water | Page 22 | ||||
| 303-3 | Water recycled and reused | Page 21-22 | ||||
| Biodiversity | ||||||
| 304-2 | Significant impacts of activities, products, and services on biodiversity | Page 30 | ||||
| 304-3 | Habitats protected or restored | Page 31 | ||||
| Environmental Disclosures | Emissions | |||||
| 305-1 | Direct (Scope 1) GHG emissions | Page 24 | ||||
| 305-2 | Energy indirect (Scope 2) GHG emissions | Page 24 | ||||
| 305-3 | Other indirect (Scope 3) GHG emissions | Page 25 | ||||
| 305-4 | GHG emissions intensity | Page 25 | ||||
| 305-5 | Reduction of GHG emissions | Page 25 | ||||
| 305-6 | Emissions of ODS | n/a | ||||
| 305-7 | NOx, SOx and other significant air emissions | Page 20-21 | ||||
| Effluents and Waste | ||||||
| 306-1 | Water discharge by quality and destination | Page 22 | ||||
| 306-2 | Waste by type and disposal method | Page 23 | ||||
| 306-3 | Significant spills | Page 24 | ||||
| Environmental Compliance | ||||||
| 307-1 | Non-compliance with environmental laws and regulations | Page 24 | ||||
| Employment | ||||||
| 401-1 | New employee hires and employee turnover | Page 33 | ||||
| 401-2 | Benefits provided to full-time employees that are not provided totemporary or part-time employees | Page 33 | ||||
| 401-3 | Parental leave | Page 35 | ||||
| Occupational Health and Safety | ||||||
| 403-1 | Workers represented in formal joint management-worker health andsafety committees | n/a | ||||
| 403-2 | Types of injury and rates of injury, occupational diseases, lost days,and absenteeism, and number of work-related fatalities | Page 39 | ||||
| Training and Education | ||||||
| Social Disclosures | 404-1 | Average hours of training per year per employee | n/a | |||
| 404-2 | Programs for upgrading employee skills and transition assistanceprograms | Page 39 | ||||
| Diversity and equal opportunity | ||||||
| 405-1 | Diversity of governance bodies and employees | Page 34-35 | ||||
| 405-2 | Ratio of basic salary and remuneration of women to men | Page 35 | ||||
| Local Communities | ||||||
| 413-1 | Operations with local community engagement, impact assessments,and development programs | Page 41-45 |
413-2 Operations with significant actual and potential negative impacts on
local communities
Page 42-43
