HEALTH, SAFETY, ENVIRONMENT, LABOR AND COMMUNITY (HSELC) POLICY AND STAKEHOLDER ENGAGEMENT STRATEGY TEMPLATE
INTERNATIONAL FINANCE CORPORATION PERFORMANCE STANDARDS
5 December, 2009
EMX Royalty Corp.. and its subsidiaries ("EMX" or the "Company") are committed to the implementation of a comprehensive Health, Safety, Environment, Labor and Community Policy and a pro-active Stakeholder Engagement Strategy (the "Policies"). These Policies will be reviewed and updated on a continuous basis. EMX will ensure these Policies are made known to all its managers, staff, contractors and partners, and that the requirements contained therein are adequately planned, resourced implemented and monitored wherever EMX is actively managing the project and where EMX has obtained a formal commitment from its JV partners to adopt the same Policies.
These Policies and the attachments are aimed at ensuring that EMX and any operating subsidiaries adhere to good international industry practice (GIIP) with regards to the Policies, in a stage-appropriate manner, during all stages and all phases of exploration, and if applicable, development activities at its worldwide locations with particular emphasis on Turkey and Haiti.
EMX's business model is classified as one of "prospect generation" as the primary driver of its business activity. That is, EMX acquires properties based on geologic potential and adds value to the property by preliminary exploration activities that may include soil sampling, geophysical surveys, trenching and, in some cases, minimal drilling, to further define geologic potential. A natural progression under this model is to sell or joint venture its properties to other companies for detailed and advanced exploration activities, transferring majority interest/shareholding and management of the properties to the incoming partner. For existing joint venture projects, EMX's management input in joint venture properties is limited to undertaking reasonable efforts to ensure that our partners adhere to GIIP as defined by applicable IFC performance standards and environmental, health and safety guidelines. Future joint venture
projects will be subject to a due diligence process as described below and in the Environmental and Social Action Plan.
1) All EMX-managed exploration and development activities will be in accordance with this HSELC Policy and Stakeholder Engagement Strategy.
2) In the event EMX reverts or dilutes to a net profits, royalty interest or other non- operating interest (financial interest) it no longer has the strict ability to comply with IFC policies as it has no decision making role.
3) In the event that EMX (a) converts its operating interest to or retains a financial interest only, or (b) in current joint ventures where majority interest/shareholding and management has been transferred to a joint venture partner, EMX will inform the JV partners of its corporate social and environmental Policies and use reasonable
efforts to encourage its operating partner to adheres to these Policies and GIIP.
4) EMX will undertake due diligence on any future joint venture project to assess the proposed project's compliance with IFC Performance Standards. Where EMX determines that the proposed project can attain substantial compliance through reasonable corrective measures, EMX will use reasonable efforts to have the JV partner implement an Action Plan, agreed to with IFC, which specifies actions and target completion dates for the project to be compliant with the Performance Standards.
5) All future JV partners will be advised and copied on all of EMX's Policies and EMX will use reasonable efforts to incorporate these Policies into future joint ventures as part of an ongoing effort to create economically, socially, and environmentally sustainable projects in accordance with GIIP.
6) If EMX decides to participate as a funding partner and is involved in the
management of a joint venture but has no deciding vote, EMX will address on a case by case basis how the policies will be adopted and implemented.
As such, EMX adherence to stage-appropriate GIIP, including IFC Performance Standards, is directly applicable to all exploration phase (and other) activities under its direct control. If and when management of project development and operations is passed to other companies, EMX will make reasonable efforts to incorporate these
standards in its joint venture documents and obtain buy-in from its managing partners.
In respect of the above the Company will, with respect to its on the ground activities: Build on GIIP for exploration and development.
Implement environmental and social requirements as required by the host country laws, rules and regulations.
Implement labor, health and safety GIIP.
At a minimum, comply with national laws and regulations and operate in compliance with IFC's Performance Standards and World Bank Group Environmental, Health and Safety Guidelines, applicable to its activities.
Establish and implement a Stakeholder Engagement Strategy to ensure appropriate communication, consultation and information disclosure are taking all stakeholders into consideration.
The Company will ensure that wherever possible and necessary it will assist in the development of sustainable local Health, Safety, Environment, Labor and Community policies and procedures that will avoid, minimize or mitigate the impact of exploration, and, if applicable, development activities on the natural landscape and local communities, and which will ensure a safe and healthy environment for the communities and natural resources, including wildlife, that may reside in areas where exploration and
development may occur.
The above principles will also apply in respect of the approach to health, safety and security for all those individuals employees, sub-contractors, consultants, communities and companies that may become involved with or affected by the planned exploration programs and all subsequent development and mining programs where applicable and in which the Company has a managing or participating interest.
Stage-appropriate community liaison, consultation, disclosure and interaction will be undertaken at all stages by the Company in line with the Stakeholder Engagement Strategy or, where appropriate and possible, by the managing partner of the exploration and development programs. The level of consultation and disclosure will be increased appropriately based on the level of activities of any stage of the exploration and development programs.
The Company believes that good environmental management at every project that it manages, whether it is the exploration phase, feasibility stage, project construction or mine site operation requires pro-active health and safety procedures, transparent interaction with local communities and implementation of prudent expenditures and business performance standards that constitutes the foundation for successful exploration and subsequent development if the results warrant it.
The Company will develop and implement appropriate Standard Operating Procedures for different stages of its on the ground technical surveys, prospecting and evaluation and development work.
Environmental Management at the Prospecting and Evaluation Stage
All exploration, prospecting and evaluation work programs will be undertaken under environment management controls suited to the level of work taking place with all necessary procedures in place to ensure that immediate environmental impacts are minimized and that appropriate reclamation and rehabilitation guidelines and processes are in place to ensure that immediate environmental impacts are mitigated and that appropriate recovery and rehabilitation processes are set in place.
Environmental Guidelines for Different Phases of Work
Ground Follow-up and exploration
• Environmental and Social Impact Assessment ("ESIA") stage-appropriate to the work planned in compliance with IFC's Performance Standards will be
undertaken prior to ground based exploration. The ESIA work will be stage- appropriate to the level of activity and impacts in exploration (preliminary, detailed or advanced).
•ESIAs will identify and provide possible solutions to address issues on biodiversity, soil, ecology, vegetation and wildlife issues, air quality, water resource utilization and water quality, energy utilization and conservation, solid and liquid waste management, vehicle traffic, impacts of access roads and related infrastructure handling, storage and use of hazardous materials (eg: fuels and oils), land acquisition, compensation, reclamation of exploration areas and impacts on local communities.
•Management plans or site specific Action Plans will be formulated in consultation with EMX environmental and mining authorities, local communities, and other stakeholders. These plans will also address impacts identified by the ESIA to the extent that such study is required for the impacts of preliminary, detailed or advanced exploration activities.
•The related objective of this approach will be to collect social and environmental baseline information early on in order to identify and mitigate social and environmental impacts during exploration, planning and feasibility work, and to develop mitigation measures appropriate to the nature and scale of activities, to ensure a productive, self- sustaining and hazard-free post-exploration environment.
•The Company will not conduct or finance any on-ground exploration or operations within a protected area legally designated for the protection or conservation of biodiversity, including areas proposed by governments for such designation, where such activities are prohibited. Any on-ground exploration or operations will be in compliance with the requirements of IFC PS6 (Biodiversity Conservation and Sustainable Natural Resource Management Standard).
•The company will not conduct or finance any on-ground exploration or operations which would result in destruction or significant degradation of a critical natural habitat if prohibited through application of IFC PS6 as explained in the PS6 Interpretation Note.
•The company will implement a chance finds procedure in conjunction with the appropriate authorities with respect to archaeological remains discovered during the course of exploration activities in accordance with IFC PS 8.
Field Mobilization/De-mobilization, Camp Establishment and Removal
•Consult with all relevant authorities to establish appropriate guidelines and authorizations for ground based surveys
•Show respect for cultural and ecologically sensitive sites and liaise as above
•Show awareness and understanding when operating in or close to protected areas
•Have respect for communities and consult with all Stakeholders beforehand
•Use existing camp sites or cleared areas for establishment of camping, parking and processing of field samples
•Use existing roads and access and consult with authorities or communities if it is essential to construct new access
•Close-off all exits to roads and tracks that may be constructed once the project
is complete, unless the authorities or communities request such roads and tracks to remain open
•Ensure that all fuels and lubricants are stored appropriately and that liners and berms are in place to contain spillages
•On completion of programs remove all items, litter and other foreign objects and substances
•Reclaim, including the smoothing and repair of disturbed areas, and replace topsoil and plant material
•The covering of fuel and oil spills with clean soil and vegetation is not an effective means of rehabilitation
Exploration and Prospecting
•Where possible, avoid damage to and cutting and removal of indigenous trees, spiritual sites, etc.
•Minimize the use and impact of vehicles
•Place marker pegs in sensible positions and ensure that these can be removed once work programs are complete
•During soil and or stream sediment sampling minimize ground disturbance and replace top soil and plant material
•Ensure that removal of soil and rock material will not lead to adverse surface water impacts and erosion
•Remove all litter, tape, and plastic material
Ground-based Geophysical Surveys
•Implement procedures as above
•Implement procedures as above
•Prevent adverse surface and groundwater impacts
Bulk sampling (via Open Pitting)
•Ensure that proper ESIA and initial scoping work is complete
•Stockpile any significant topsoil and plant material to one side
•Minimize removal and damage to indigenous trees where possible.
•Conduct extraction in a systematic fashion and ensure rehabilitation is an integral part of the program
•Ensure that slimes dams are secure and do not contaminate surface and groundwater
•Ensure stability of pit walls
•Ensure that the footprint of the operation is constrained to the minimum possible area
•Fill completed sampling excavations, replace rock and other material, and cover with topsoil and plant material as appropriate
•Sampling trenches may remain open for the duration of the exploration activities provided that safe entry and exit points are established and maintained
•Ensure stability of pit walls, any underground workings and water storage facilities
•Minimize dust emissions, noise, vibration and visual impacts
•Prevent adverse surface and ground water impacts
•Minimize damage to biodiversity and reduction in land use capability
•Progressively rehabilitate areas disturbed by mining
Mineral Processing Pilot Facilities
•Prevent adverse air quality impacts and minimize dust levels
•Minimize use of water and energy
•Minimize spillages, waste generation and responsibly dispose of unavoidable wastes
•Prevent adverse groundwater and surface water impacts
Solid Process Waste and Waste Rock
•Contain seepage of contaminants and pollutants
•Prevent flooding and failure of tailings dams
•Minimize release of dust
•Minimize damage to biodiversity and avoid land alienation
Decommissioning and Closure
•Conserve and restore biodiversity including by off-site mitigation to maintain no net loss of biodiversity
•Prevent adverse surface and groundwater impacts
•Ensure long-term stability and viability of rehabilitated surfaces
•Manage socio-economic issues to minimize adverse socio-economic impacts
Town, Road and Airfield Construction
•Consult with authorities and communities to ensure optimization of locality and infrastructure
•Minimize dust emissions, nuisance and noise
COMMUNITY RELATIONS, COMMUNICATION AND NOTIFICATION POLICY
Proactive interaction with the stakeholders that the Company's exploration and development programs may impact on is considered an important part of the long-term investment that the Company is planning in worldwide exploration programs and particularly in Haiti and Turkey.
The company recognizes that from the inception of exploration activities or a new field work program, and as the exploration project progresses towards development it will be important to:
♦ communicate and proactively engage with all the local communities and other stakeholders that may be affected by its exploration programs,
♦ inform and obtain buy-in on a mutually agreed and consensus based manner with the full range of stakeholders that may be impacted upon by exploration, evaluation and development.
♦ identify any vulnerable or marginalized groups within the affected communities (e.g. women, elders or handicapped) and ensure that they are also reached by above information disclosure and consultation activities.
In these respects the company will work actively and transparently with Government authorities, other elected parties, non-governmental organizations, and the communities themselves to ensure that they (the communities) are aware of the activities of the Company, and that the impact and benefits of the activity are a net positive to the communities.
At the time when detailed or advanced exploration activities, including drilling, evaluation and other such programs are implemented, the Company will endeavor to identify how the impacts of such work on communities can best be managed, and how benefits can best be provided to communities through the activities of the Company.
This will be undertaken in consultation with the affected communities.
STAKEHOLDER AND COMMUNITY NOTIFICATION PROTOCOL
The following Notification Protocols shall apply to all exploration, prospecting, bulk sampling and mining, commensurate to the level of activity and impacts:
Broad Stakeholder Consultation
•The Company shall document in writing all meetings with the community.
•The Company shall notify, communicate and consult with all persons, or groups of persons, external to the operations who may be expected to be affected by or concerned due activities in their areas of residence or livelihood.
•The Company will ensure that proactive consultation and dialog is maintained at all stages to identify and work with stakeholders to develop strategies that will identify and address key concerns and expectations.
•Consideration will at all times be given to local context and cultural factors in order to facilitate understanding and informed discussion.
•The Company will, as appropriate, seek the assistance of independent third parties, facilitators, NGO's and other credible organizations to assist this process.
•The Company will pro-actively consult with and maintain regular engagement with communities with regard to project activities and issues which may affect communities.
Specific efforts will be made to build awareness of and manage early exploration phase social risks including in-migration, speculative land acquisition and cultivation, development of infrastructure, etc as appropriate
•The Company will promote strong relationships with, and enhance the capacities of those communities where it conducts activities for ongoing periods.
•Where it is possible, support for community projects will reflect the priorities of local people, sustainability, will be stage-appropriate to the Company's activities and cost effective.
•The Company will commence a community notification and communication process in advance and will undertake Community Notification as outlined below:
•The Notification process shall include the following information as a minimum:
a) General location with reference to specific local landmarks b) Estimated survey work
c) Estimated survey work duration
d) Invitation to contact with questions or comments e) Client representative contact details.
•Unless inappropriate for a given survey, Notification advertisements will be placed in local and regional newspapers or transmitted by radio where possible. Where necessary, notice boards will be established in local communities and relevant information posted in the local language if newspapers and radio reception is not available.
•The minimum frequency shall be once per week for a minimum of 2 weeks.
•The advertisement shall be in the official language of the country of operation as a minimum.
• Creole and French will be the main languages of communication in Haiti; Turkish in Turkey, and in appropriate languages in other areas of impact.
•The Company respects the laws of each of the countries in which it is working whilst seeking to observe, within its operations, the universal standards of accountable and equitable human rights practices.
•The Company aims to be and be seen as socially responsible and an investor of choice.
•The Company aims for constructive relations with relevant non-governmental organizations.
•The input of these organizations is considered important in terms of leading to better practices and increasing our understanding of host communities.
Placing of Notification Documents
•Notification advertisements will be placed in areas where community members gather. These notices shall take the same form as above and shall be posted in a visible location (e.g., markets, meeting halls, places of worship, local government offices) at least 2 weeks before survey operations are to commence.
•Consideration will be paid to local conditions and where dictated by these local conditions (for example low literacy rates) visits to the local community will occur. The team makeup involved in these visits will include as a minimum:
a) Company representative familiar with the operation b) Translator if needed
Review and Feedback
•The effectiveness of communication, consultation and participation processes will be regularly reviewed in collaboration with affected stakeholders.
•Prior to the commencement of the operations the Company will strive to provide feedback to any community members that have raised issues as a consequence
of the Notification process.
LABOR, HEALTH AND SAFETY POLICY
The health and safety of its employees, contractors, affected communities and any other role players that may participate and be affected by the activities of EMX are crucial to the long term success of the Company.
The Company will establish and maintain a constructive work-management relationship, promote the fair treatment, non-discrimination, and equal opportunity of workers in accordance with IFC's PS 2.
Every effort will be made through training, regular reviews and briefings, and other procedures to ensure that best practice labor, health and safety GIIP are implemented and maintained by the company including prompt and in-depth accident and incident investigation and the implementation of the conclusions thereof. The Company will take measures to prevent any child labor and/ or forced labor.
The Company's aim is at all times to achieve zero lost-time injuries (LTI's) and fatalities.
Health and Safety Guidelines
Leadership and Accountability
• All directors, managers, employees, and contractors shall understand their accountability and demonstrate leadership and commitment to the HSELC Policy.
• The Directors and Management shall ensure compliance and regularly review
HSELC performance and risks.
• Managers and Team Leaders are accountable for the HSELC performance of their business, and the implementation and communication of the HSELC and shall see that regular meetings are held to disseminate procedures and monitor performance.
• Managers and Team Leaders will ensure that all Contractors are informed of procedures and receive clear instructions in respect of HSELC. Relevant terms requiring compliance with EMX HSELC will be incorporated into contract
• Employees and Contractors understand that they have the right and responsibility to stop or refuse to work in unsafe conditions, and shall bring these conditions to the attention of management immediately.
• Employees and Contractors will be encouraged to report unsafe conditions and violations of the Company's HSELC Policy without fear of reprisal.
Legal Requirements, Documentation
• All management, staff and Contractors shall ensure that they are familiar and in compliance with all regulation and guidelines (be they State, Local Government and Company) before embarking on any work program.
• Directors and Management are responsible for ensuring that systems are in place whereby HSELC procedures are documented, displayed, distributed and that HSELC records are established and maintained, and are accurate, legible, and identifiable.
• Information regarding worker's rights under national labor and employment law including wages, benefits, and terms of conditions should be provided to workers prior to the contract signature.
• Respect worker's legal rights to form or join worker's organization without interference and respect collective bargain agreements. Ensure that terms of conditions of employment are in compliance with national law and international labor standards.
• In case retrenchment becomes necessary the Company will develop a retrenchment plan, consult with relevant stakeholders including workers' representatives, implement a grievance mechanism, and control measures to ensure that the selection of staff is based on objective criteria.
• All employees and contractors are provided with a written contract stating the terms and conditions of employment.
• Employees and contractors are provided with payslips explaining how salaries and deductions are calculated.
Risk Management, HSELC Risk Register
• HSELC risks and hazards will be constantly reviewed, assessed, identified, documented, and managed.
• Risk management identification procedures will be developed and implemented at each new or existing site or operation, recorded, and maintained in a HSELC Risk Register.
• New Risks and HSELC procedures will be implemented and communicated whenever identified, with training provided for the management of all risks.
• A grievance mechanism is developed, implemented, and is accessible to all employees and contractors, grievances can be filed on an anonymous basis. All grievances will be replied to within 15 days. Grievances and answers are registered by the company to document the process.
Awareness, Competence, and Behavior
• Company management and personnel, including all project and site managers shall ensure that they, their staff, Contractors and visitors are in good health and able to conduct work requirements in a competent manner.
• Inductions that address relevant HSELC objectives, hazards, risks, controls, and behavior will be conducted and documented for employees, contractors, and visitors at the commencement of their employment or site visits.
• Regular re-briefings and training programs shall be held to reinforce HSELC
policy and risk management.
• Stage-appropriate cross-cultural training will be undertaken for employees and contractors who interact with peoples from different cultures.
• Implement measures to ensure that all employment decisions (hiring, firing, promotion and training opportunities) are based on non-discriminatory criteria.
Communication, Consultation and Participation
• Effective communication and consultation shall be maintained between the
Directors, management, employees, contractors and other stakeholders.
• Employee, contractor and stakeholder participation and feedback are encouraged, and tracking of follow-up actions shall be documented and reviewed.
• Open consultation and communication with government, authorities, and other organizations will be maintained in order to contribute to the development of public policy, relevant legislation, and educational initiatives.
• The HSELC Policy will be disseminated to all employees and contractors in their native languages and in an easily understandable version. In case employees are not literate, information will be provided through regular meetings.
• All new, reassigned, and/or temporary employees and contractors are trained on the principles of the HSELC Policy.
Personal and Property Safety and Security
• Employees and contractors will be aware and mindful of potential personal and project safety and security risks that may be encountered in the local environments in which they may operate, and this will also extend to the use of company facilities and property.
• Awareness in respect of vehicle hijackings, kidnappings, theft of personal items, break-ins and other such risks is important and appropriate measures to minimize such risks should be implemented at all times.
Operations, Inspections and Maintenance
Road Travel and Transportation
• All personnel shall adhere to road travel regulations and speed limits.
• All employees, including management and directors, should avoid travelling by road at night and should at all times be particularly mindful of pedestrians and animals on roads and roadsides. Each site will have a driving policy based on
the conditions at the site.
• All personnel vehicles shall contain an automotive type fire extinguisher approved by the HSELC Representative which must be checked regularly and refilled or replaced immediately after use.
• A portable fire extinguisher of an approved type and size will be conspicuously mounted on every support truck and heavy equipment.
• Seat belts are to be worn at all times by personnel in vehicles travelling on or off road in Company's area of operations including the Site.
• Cell phones will not be used whilst vehicles are in motion, cell phones must not be answered until a vehicle is stationary.
• All personnel should be properly enclosed in vehicles with seat belts and no personnel shall be transported on the back of open vehicles.
• Effective means of communication shall be present in each vehicle, especially when remote areas are visited.
• Vehicles shall employ headlights at all times when in transit (day and night).
• Emergency supplies of water and fuel shall be present in each vehicle.
Work and Camp Sites
• All sites shall be kept clean and tidy, and equipment and walkways to be kept free of grease, oil and other hazards.
• All sites shall have appropriate fire extinguishers in obvious locations.
• Personnel on Site must be familiar with the location and use of these. extinguishers
Plant and Equipment
• All plants and equipment will be operated, maintained, inspected, and tested within the framework of the HSELC policy and risk management procedures.
• All machinery, tools, and equipment used in performing work activities shall remain in good and safe operating condition and shall be operated in accordance
with safe operating practices.
• All dangerous or moving parts (including but not limited to chains, belts, sprockets, shafts, couplings, and clutches) shall be adequately covered with safety guards to prevent accident or injury.
• All machinery or equipment to be repaired shall be isolated before repairs are affected. Each site will have a lock-out/tag-out procedure for machinery or equipment undergoing repair.
• All electrical generators, appliances, fittings, power leads, and major power tools used at sites will conform to approved specifications/standards, be tested routinely, and regularly inspected by a certified electrician.
• Wooden handles of hand tools, such as axes, sledge hammers, shovels, picks, rakes etc., used in connection with the Services, will be properly secured and
free of splinters.
Flammable Materials and Gas Cylinders
• Flammable materials such as diesel, petrol, oils, and gas cylinders will be isolated and stored in a cleared designated area.
• Toxic additives shall be avoided wherever possible.
• Oxygen, acetylene, and propane bottles used by staff will be properly secured in an upright position at all times.
• Fire extinguishers must be located within safe distances from the above designated areas.
• Fire extinguishers must be inspected on a monthly basis.
First Aid and Emergencies
• First aid kit appropriate for the number of personnel in the area will be provided to every support vehicle.
• All personnel must know the location and use of these kits and one person shall be delegated the task of regularly checking and restocking the first aid kits.
• Emergency communication equipment shall be available at every site or operation.
• Managers and/or Team Leaders shall conduct regular safety inspections of all machinery, tools, and equipment and immediately report any deficiencies to Management.
• Managers, supervisors, and all staff will have completed First Aid training.
• When recruiting new employees verify information given age through checks of their identification documents.. Minimum working age is 18;
• The Company will not retain the original identification documents of any of the employees.
Contractors and Partners
• The contracting of services, and the purchase, hire or lease of equipment and materials, as well as activities with partners, are carried out so as to minimize
any adverse HSELC consequences and, where possible, to enhance community development opportunities.
• Systems will be set in place to ensure that the HSELC performance of Contractors, suppliers and partners, are compliant with the Company's HSELC policies, and to provide disciplinary action and economic sanctions for material breaches.
• Contractors and suppliers shall at all times provide information on the hazards associated with their equipment, products and services (see Annexure C).
• All contractors and key suppliers will be subjected to regular monitoring to ensure compliance with the HSELC Policy.
Incident Reporting and Investigation
• Personnel injury or lost time accidents and/or material damage or losses which cause stoppage of normal operations shall be reported, documented,
investigated and analyzed in a timely manner according to specified procedures
(see Annexure D).
• Incidents with potential for similar consequences as above shall be reported and documented in a similar manner.
• Corrective and preventive actions shall be taken and lessons shared.
Crisis and Emergency Management
• Procedures and resources will be in place to effectively respond to crises and emergency situations (see Annexure B).
• It shall be the responsibility of management and Team Leaders to ensure that all employees and contractors are fully aware of all procedures.
• All employees and Contractors must ensure that they are be made aware of procedures and acknowledge this.
Monitoring, Audit and Review
• HSELC performance and systems will be monitored, audited, and reviewed by management to identify trends, measure progress, assess compliance, communicate problems, and drive continuous improvement.
• Employees and Contractors will be assessed for their fitness for work and protected from health hazards associated with their work.
• Occupational health and hygiene assessments, and ongoing medical surveillance programs, will be conducted for all occupations, tasks, and work environments, consistent with exposure risk.
• Employees will have access to adequate medical and first aid services as appropriate to the location and nature of operations.
• Contractors will ensure that their staff are adequately protected in terms of health and medical requirements.
• The Company will promote an approach whereby it encourages employees and contractors to undergo assessment to ensure their fitness for work. Any information or Medical records will be kept confidential.
• The Company promotes and encourages a safe and healthy lifestyle amongst staff, contractors, communities, and individuals which it employs, contract or interacts with.
• Community health issues associated with the Company's operations are identified and managed insofar as this is possible.
DEVELOPMENT STAGE ENVIRONMENTAL AND SOCIAL MANAGEMENT POLICY
The Company recognizes the benefits of proactively engaging and working with local communities for the benefit of all stakeholders. In this respect the company will communicate and consult with local communities and stakeholders with a view to fostering mutual understanding and shared benefits through the promotion and maintenance of open and constructive dialogue and working relationships.
In order to maximize the benefits arising out of any mining development the Company will ensure that all construction and mining operations carried out by it or by subsidiaries and joint ventures to which the Company is party adhere to the guidelines outlined below.
• The Company will wherever possible draw on experience from and replicate positive initiatives from similar projects worldwide.
• Implement the requirements of IFC's Performance Standards on Social and
Environmental Sustainability (April 30, 2006).
• Support and improve (i) local communities and (ii) promote integrated resource conservation and utilization in the region.
• Support regional economic development not directly tied to the project.
• Support project related supply chain development and linkages.
• Provide training programs for available jobs.
• Support community-based natural resource management initiatives.
• Support water resource development initiatives.
• Support institutional development and capacity building, in particular in the areas of resource conservation monitoring and management.
• Wherever possible develop sustainable infrastructure requirements in conjunction with the needs of the Community.
• Investigate and apply the benefits gained from use of local knowledge.
David M. Cole President and CEO EMX Royalty Corp.
Annex A. DUE DILIGENCE CHECKLIST
Annex B. EMERGENCY RESPONSE PROCEDURES
Annex C. CONTRACTORS AND SUPPLIERS: HEALTH AND SAFETY AND ENVIRONMENTAL REQUIREMENTS
Annex D. GUIDELINES FOR SAFETY MEETINGS
Annex E STAKEHOLDER ENGAGEMENT STRATEGY TEMPLATE
DUE DILIGENCE CHECKLIST
The Due Diligence Checklist is aimed at ensuring that the documents and policy guidelines are properly applied and followed. It should be applied as follows.
Section 1: INITIAL SYSTEM ELEMENTS CHECKLIST
This entire section should be used to establish a preliminary overview of the Company's general level of HSELC management knowledge, compliance, and maturity. It should
be applied to all operations including airborne surveys.
Section 2: SUBSTANTIVE AND OPERATIONAL CHECKLISTS
Each sub-section list can be used in isolation but should be combined with others, which are relevant to what is being checked.
Example 1; Assessment of VEHICLES should also be combined with assessment of SAFETY ORGANIZATION, EMERGENCY PLANNING, PERSONAL PROTECTIVE EQUIPMENT, ENVIRONMENT, FIRE PREVENTION AND CONTROL, SAFETY INSPECTIONS and ACCIDENT/INCIDENT REPORTING & INVESTIGATION.
This series of checklists is intended as a dynamic document, subject to constant change in view of individual experiences in its use. Results will be kept on file, findings (with recommendations of corrective actions) of common interest be circulated appropriately, and constructive suggestions for changes be sent to the main office and each EMX- managed exploration site, including the following:
EMX Royalty Corp.
10001 W. Titan Rd Littleton, Colorado 80125 USA Attn: Jan Steiert
Ankaralılar Caddesi, 2562 Sokak, No:17.
Cayyolu, Ankara. Turkey
Attn: Sabri Karahan
Port Au Prince:
Attn: Dominique Boisson
15, Rue Tertulien Guilbaud, Christ Roi, Haiti
Attn: Dominique Boisson
Training will be conducted at each EMX-managed exploration site with local personnel and contractors on the implementation of the Company's HSELC Policy, including the use of these checklists.
SECTION ONE: INITIAL SYSTEM ELEMENTS CHECKLIST
Element of Management
IS THERE AN ACCEPTABLE
IS THERE ADEQUATE
PLANNING (Are HSELC hazards identified and management plans developed)
IS IMPLEMENTATION AND
OPERATION OF HSELC (Management plans) PROGRAM ADEQUATE?
IS THERE ADEQUATE
CHECKING AND EFFECTIVE CORRECTIVE ACTION?
REVIEW HSELC PROGRAM?
OHSAS 18002 can be used as reference specifically chapter 4.
SECTION TWO: SUBSTANTIVE AND OPERATIONAL CHECKLISTS
Element of System / Item
IS THE HSELC POLICY
DISPLAYED & UNDERSTOOD?
IS THERE A SUFFICIENT
ARE THE SECURITY
ASPECTS OF THE LOCATION ASSESSED AND MANAGED
IS THE EMERGENCY
PLANNING, INCLUDING A VISIBLE EVACUATION PLAN, ADEQUATE?
IS THE PERSONAL
PROTECTIVE EQUIPMENT (PPE) READILY AVAILABLE AND ADEQUATE?
HAVE ALL KNOWN
OCCUPATIONAL HEALTH HAZARDS BEEN IDENTIFIED AND ARE THESE MANAGED AND MONITORED ADEQUATELY?
ARE COMMUNITY AND
SOCIAL MATTERS ASSESSED AND MANAGED RESPONSIBLY?
IS SAFETY RELATED TO
TOOLS AND MACHINERY ACCEPTABLE?
IS STORAGE AND STACKING
OF EQUIPMENT AND MATERIALS ACCEPTABLE? (ESPECIALLY HAZARDOUS MATERIALS)?
IS THE LEVEL OF
ELECTRICAL SAFETY ACCEPTABLE?
IS THE LEVEL OF SAFETY
WITH VEHICLES AND DRIVING ACCEPTABLE?
IF AVIATION SERVICES ARE
USED, HAVE APPROPRIATE SAFETY STANDARDS BEEN
APPLIED AND ASSURED?
ARE ALL ASPECTS OF FIELD
CAMPS AND OFFICES ACCEPTABLE RE HSELC?
ARE WORK SITES SAFE AND
OPERATIONS CONDUCTED ACCORDING TO HSELC POLICY?
ARE CONTRACTORS AWARE
OF AND ADHERING TO HSELC POLICY?
ARE DRILLING OPERATIONS
CONDUCTED IN ACCORDANCE WITH HSELC POLICY?
OPERATIONS CONDUCTED SAFELY AND IN AN ENVIRONMENTALLY RESPONSIBLE MANNER?
ARE THE PROJECT HSELC
INSPECTIONS & AUDITS AVAILABLE FOR REVIEW?
IS HSELC A MEETING
AGENDA ITEM, WITH MINUTES AVAILABLE? IS THERE EVIDENCE OF WORKFORCE INVOLVEMENT?
IS THERE AN
ACCIDENT/INCIDENT REPORTING & INVESTIGATION
INVESTIGATIONS, AND CORRECTIVE ACTIONS READILY AVAILABLE FOR REVIEW?
The Exploration and Development HSELC Manual should be used as a reference
material for this checklist.
EMX PROJECT EMERGENCY RESPONSE PLAN
An EMX project emergency response plan is developed to help EMX respond quickly and effectively in the event of an emergency and includes a list of contact information for all key EMX personnel. A copy is on file at each EMX project office.
If there is a need to gain access to portions of the plan please contact David M. Cole at
+1-720-209-2105 (mobile) or +1-303-979-6666 (office).
CONTRACTORS AND SUPPLIERS:-
HEALTH, SAFETY AND ENVIRONMENTAL REQUIREMENTS
Contractors and suppliers shall ensure that they have the ability to conduct work in a manner which meets, or exceeds the HSELC policy and rules of the Company. Company HSELC Policy requirements shall be stipulated in Contracts and once these are accepted and signed all Contractors and Suppliers shall be party to the implementation of such policies.
On initiation of work programs Contractors and Suppliers will be briefed on procedures and thereafter shall ensure that they hold regular briefings of their own personnel and those procedures for the reporting of incidents are followed.
Details of procedures applying to contractors, as well as all Company employees are outlined below.
A. The Company's Current Health and Safety Requirements
The Contractor represents that it has read and understands Company's Safety Policy and requirements as set forth in this Schedule C.
The Contractor shall ensure that its employees, agents, permitted sub-contractors (collectively Contractor's "personnel") strictly adhere to all safety requirements set forth herein.
1. Safety Regulations
The Contractor shall ensure that he/she and all Contractor personnel will, at all times, strictly observe and comply with all Company and Government safety
regulations and requirements which are applicable to the Services.
2. Safety Plan
Contractor shall perform the Services in accordance with a safety and emergency plan which shall include regular safety meetings, appropriate safety and occupational training for Contractor's personnel, standards for accident and near-miss reporting, use and maintenance of safety equipment, emergency action and drills to familiarize Contractor's personnel with emergency procedures.
3. Safety Instructions
Contractor shall ensure that all Contractor personnel arriving at the Site are properly instructed in the safety plan, safety training, and first aid prior to their commencing work.
4. Safety Meetings
Contractor's Representative shall be in charge of and responsible for safety and safety related matters with respect to the provision of Services at each Site and shall convene and document monthly meetings of Contractor's Personnel to discuss and consider safety aspects relating to provision of the Services. Contractor's Representative shall keep complete and accurate minutes of each meeting, signed copies of which shall be forwarded to Company's Representative. Contractor's Representative shall attend safety meetings as required by Company. Contractor's Personnel, at Contract's sole cost and direction, shall be given safety job --related and survival training required by law, Company's Safety Policy, and good practices, prior to their commencing any work.
5. Access Denied
Company may refuse access, without charge or penalty to Company, to the Site of any or all of the Contract's personnel who, in Company's best judgment do not
comply with Company's Safety Policy and requirements.
6. Equipment Safety
The Contractor shall ensure that its machinery, tools, and equipment used in performing the Services are and remain in good and safe operating condition; that they are operated in accordance with safe operating practices; and that all dangerous or moving parts (including but not limited to chains, belts, sprockets, shafts, couplings and clutches) are adequately covered with safety guards to prevent accident or injury. All machinery or equipment to be repaired shall be isolated before repairs take place.
7. Safety Inspections
Contractor's Representative shall conduct regular safety inspections of all machinery, tools, and equipment and immediately report any deficiencies to Company's Representative.
Medical conditions, which may affect a person's ability to perform work contemplated herein, shall be reported to Company's Representative prior to the start of such work.
The Company shall not be responsible for the medical care of Contractor's personnel.
The Contract shall require Contractor's personnel to maintain the highest standards of hygiene.
9. Safety Equipment
The Contractor shall require and provide:
(i) A first aid kit appropriate for the number of personnel in the area, which shall be provided to every support vehicle. Contractor's personnel must know the location and
use of these kits. One drill crew member shall be delegated the task of regularly checking and restocking the first aid kits; and
(ii) Emergency communication equipment satisfactory to Company's
10. Safety Procedures
The Contractor shall require and provide that:
(i) A portable fire extinguisher of an approved type and size be conspicuously mounted on every support truck and heavy equipment. All personnel vehicles shall contain an automotive type fire extinguisher approved by Company's Representative. Extinguisher must be checked monthly and refilled or replaced immediately after use. All personnel on Site must be familiar with the location and use of these extinguishers;
(ii) seat belts to be worn at all times by personnel in vehicles traveling on or off road in Company's area of operations including the Site. No personnel shall ride in the bed of any vehicle.
(iii) vehicles shall employ headlights at all times when in transit (day and night)
(iv) the Site to be kept clean and tidy, and equipment and walkways to be kept free of grease, oil and other hazards;
(v) flammable materials such as diesel, petrol, oils and gas cylinders to be isolated and stored in a cleared area designated by Company's Representative;
(vi) the use of toxic additives to be avoided wherever possible;
(vii) all electrical generators, appliances, fittings, power leads and power tools at the
Site to conform to standards approved by Company's Representative;
(viii) the wooden handles of hand tools, such as axes, sledge hammers, shovels, picks, rakes etc., used in connection with the Services, to be properly secured and free of splinters;
(ix) oxygen, acetylene, and propane bottles used in connection with the Services to be properly secured in an upright position at all times.
11. Safety Reports
The Contractor shall notify the Company within 24 hours of all accidents and incidents arising from performance of the Services which have caused or potentially could cause personnel safety to be threatened. Initial reports will be made verbally as soon as possible but no later than 24 hours after the accident or incident, and a full written report shall be provided as soon as practicable following the incident or accident, but not later than 24 hours after verbal notification. The Contractor shall provide a weekly safety report which shall include:
(i) man hours worked during the week;
(ii) number of incidents for the week wherein safety standards were in jeopardy of breach; and,
(iii) number of days since last Lost Time Injury.
B. The Company's Environmental Requirements
The Contractor shall be aware of and comply with:
(i) .all relevant federal, state, provincial and local laws and regulations relating to the environment;
(ii) Company's Environmental Policy which is part of this Schedule, and which
Company reserves the right to amend at any time;
(iii) All environmental stipulations contained herein, or as may subsequently be issued in writing by Company's Representative.
2. Operational Procedures
The Contractor shall perform its work in a manner intended to protect the environment and the property rights of others. The following procedures shall be followed by Contractor:
(i) vehicles shall be restricted to established roads or tracks where possible, and shall, as far as practicable, follow contours where tracks are not available;
(ii) oil spills shall be avoided and accidental spills confined; (iii) noise shall be kept to a minimum;
(iv) disturbance to stock and wildlife shall, as far as is practicable, be avoided.
3. Damage to Property
Contractor shall conduct all activities in a manner intended to prevent damage to livestock, crops, timber, cultivated fields, roads, trails, gates and fences. Contractor shall establish and maintain close communication with landowners regarding any proposed activity on the affected lands.
To reduce the risk of fire at the Site, the Contractor shall:
(i) store fuel and other flammable items away from working machinery, preferably in a cleared area;
(ii) ensure that suitable firefighting equipment is carried by the Contractor at all times;
(iii) establish and enforce a fire prevention and fighting policy and take appropriate measures to control any fires on or around the Site.
C. The Company's Human Resource Management Requirements
The Contractor shall be aware of and comply with:
(i) .all relevant federal, state, provincial, local and international laws and regulations relating to human resources management;
(ii) The Company's Human Resource Management Policy as contained within the
2. Operational Procedures
Develop and implement adequate procedures to implement the Human Resource
Management Policy. Such procedures shall include:
(i) Appoint a responsible Human Resource Manager;
(ii) Inform new employees about their rights and obligations and provide on a regular basis information sessions for existing workers;
3. Work and employment conditions
(i) Ensure that employees are paid at least the minimum wage and that obligatory pension and social security contributions are paid to the relevant authorities;
(ii) Ensure that the work rotation schedule and the number of hours worked per week by employees is within legally acceptable limits as per labor laws of the relevant country
4. Child labor and forced labor
(i) When recruiting new employees verify that they are at least 18 years old by checking their identification documents;
(ii) Don't retain the original identification documents of any of the employees;
5. Freedom of Association and Non-discrimination
(i) Ensure that employees are informed about their rights to Freedom of Association and Collective bargaining;
(ii) No employment decision (hiring, firing, promotions and training opportunities) are made on a non-discriminatory basis.
6. Grievance Mechanism
(i) Develop, implement, and disseminate a grievance mechanism for employees.
GUIDELINES FOR FIELD SAFETY MEETINGS
Due to the nature of exploration activities, the majority of our work sites and environments are constantly changing and moving. Our use of contractors adds to the number of on-site personnel who are coming and going. Effective safety meetings are probably our best forum to discuss important and changing issues, and keep all personnel up to date.
Safety meetings are viewed as a positive and constructive step towards raising and solving safety issues and promoting safety awareness in general. They are also an ideal opportunity to make new on-site personnel aware of local procedures.
Informal meetings are the only practical format for meetings in the field. At exploration sites, these may be referred to as "toolbox talks". A non-threatening environment will assist in promoting active discussion by all participants. Meetings should be held at the beginning of each shift by each field crew. Even if there are only two people on site, a safety meeting should still be held.
Safety meetings are not just for EMX employees. Contractors must be involved whenever they are on site. Contractors should hold safety meetings even if there are no EMX employees present. The contractor crew chief then needs to forward the minutes to an EMX representative.
Formal safety meetings will be held at all non-field offices of the Company at least monthly.
A basic agenda should include:
O safety matters arising since the previous meeting
O action taken on matters arising from previous meetings (Note - minutes of previous meeting required)
O recent incidents or near-miss situations;
O possible problems with and improvements to current procedures; O relevant safety issues from elsewhere in the department.
Attached is a pro-forma with basic items as headings (Note: these should be regarded as prompts for further discussion).
IMPORTANT ASPECTS OF MEETINGS
Somebody should act as Chairperson (usually the geologist or crew chief or lead driller), although this job should be rotated
All suggestions, ideas and comments should be considered
Keep discussion flowing
Keep the meeting constructive and positive -- derive maximum value from the discussion
Meetings are a forum for sharing ideas
Encourage and allow all attendees to be involved in discussion
All participants have something important to contribute
Minutes can be brief as long as the important discussion points are recorded
Use questions to provoke thought and discussion - encourage interaction
Ensure all participants understand any decisions or resolutions
Recap and clarify what action will be taken and by whom.
WHAT NEEDS TO BE RECORDED?:
• Attendees (indicating chairperson)
• Agenda items -- decisions reached, follow-up required, person responsible for follow-up.
Minutes should be forwarded to the Program/Project Leader or Safety and
Environment Representative for the project
Important and relevant issues should be distributed to other groups in the
Consider raising topical issues (or particular local themes) each meeting. These might include:
"Livestock Awareness" -- if working in areas where this could be an issue
"Drill Rig Safety" -- at the start of a drilling program
"Chance Finds" -- procedures for chance archaeological discoveries
MINUTES OF FIELD SAFETY MEETING
1. Issues arising from previous meetings
2. New issues (e.g. vehicles, drilling, camps, traversing, contractors, communications. etc.)
3. Relevant issues from elsewhere in the department
4. Other (e.g. landholder matters, environmental, etc.)
Follow-up Actions: (Indicate: What? By Whom? By When?)
Signed:.......................................... Position: ..............................................
(Note: If more space is required, use a second page.)
SAFETY STATISTICS REPORT
1. NUMBER OF EMPLOYEES
2. TOTAL HOURS WORKED
3. TOTAL NUMBER OF FATALITIES
4. NUMBER OF DISABLING INJURIES
5. NUMBER OF LOST TIME INJURIES
6. LOST WORK DAYS
7. NUMBER OF TOTAL INJURIES
8. NUMBER OF NEAR MISSES
9. PROPERTY DAMAGE ACCIDENTS
10. PROPERTY DAMAGE COSTS (LOCAL)
11. DATE OF LAST LTI
12. LOST TIME ACCIDENTS AND OTHER SIGNIFICANT INCIDENTS
13. PROPERTY DAMAGE ACCIDENTS AND ASSOCIATED COSTS IN LOCAL CURRENCY
14. SAFETY ACHIEVEMENTS
15. SAFETY INITIATIVES
STAKEHOLDER ENGAGEMENT STRATEGY (SES) TEMPLATE
The site specific SES should set out a program for on-going public consultation and information disclosure during the exploration phase of a specific Project. Reference should be made to IFC's "Stakeholder Engagement Good Practice Handbook for Companies Doing Business in Emerging Markets1" (2007) and the WRI Report "Breaking Ground -- Engaging Communities in Extractive and Infrastructure Projects2" (2009). It should be noted that effective public consultation and disclosure is a cornerstone of IFC's Performance Standards and approach to implementation of development projects. The plan should include:
a) Summary. Summarize the SES, its objectives and goals.
b) Regulations and Requirements. Summarize any national requirements, policies, laws, and regulations for public consultation and disclosure related to local Environmental Assessment legislation, access to land in said country/region, or other relevant regulatory aspects of the project.
c) International Standards. Summarize GIIP, including IFC's community engagement provisions under Performance Standard 1.
d) Review Previous Public Consultation and Disclosure. Summarize community participation and public consultation undertaken to date. This should include the types of information disseminated and the forms it took; the locations and dates of meetings; a description of the individuals, groups and organizations consulted; an overview of the issues discussed; a description of how the issues raised were responded to by the project sponsor; and explanation of how these responses were communicated to those consulted and the wider public.
e) Stakeholders. Provide an inventory of key stakeholder groups who will be informed and consulted about the project.
f) Stakeholder Engagement Plan. Describe the public consultation and disclosure process that will take place in the course of implementation of the project and on -- going monitoring. Describe the types of methods that will be used to communicate information to each of the stakeholder groups identified. Methods may vary according to target audience (local traditional mechanisms for consultation and decision-making; use of mass media such as radio [if appropriate]; meetings with key informants and groups; and continuous participation processes with community representatives or interest groups in the project zone).
g) Schedule. Include a schedule of when and how often consultation and disclosure activities will take place for the exploration phase of the project and each stakeholder group identified.
h) Resources Available. State what resources are available for implementation of the
SES and who will be responsible for carrying out these activities. Effective
consultation and information disclosure might also require assistance from specialized consultants, particularly in the initial stages. The sponsor should however be involved in all consultations related to the project.
i) Grievance Mechanisms. Describe the process by which people affected by the project can bring their concerns and any grievances to the sponsors and those involved in implementing the project, for consideration and / or redress.
j) Feedback. Identify where, when and how the results and feedback from public consultation and information disclosure will be reported.