• Responsibility

    High Grade Silver Discovery & Development

MAG Silver is committed to delivering lasting and sustainable value to its people, stakeholders and host communities. The Company’s approach to responsible development integrates health, safety, environment and social responsibility into its business strategy.

MAG partners with groups who share its values and commitment to responsible mining. The Company’s commitment is supported by the policies, procedures and voluntary codes to which the Company adheres. The Company cares about the health and well-being of its people, communities and environment, and promotes a culture of zero harm.

MAG’s principal focus, asset and ESG risk is the Juanicipio Project in Mexico. The Project is being developed as a Joint Venture partnership with Fresnillo Plc, the 56% owner and Operator. The Juanicipio Project is expected to commence commissioning in Q4/2021. MAG is also pursuing an exploration program at the Deer Trail Project in Utah. MAG’s updated materiality analysis (2021) identified Water Stewardship, Environmental Stewardship, Tailings Facilities, Climate Change, Health & Safety, Human Rights, Local Communities, Governance, Business Ethics as its most material topics, all primarily linked to the Juanicipio JV Project.

ESG Data Highlights

A more comprehensive ESG data table can be accessed here.

CATEGORY

METRIC

UNIT

2020

2021

COMMENTS

Governance

 

 

 

 

 

Business Ethics

Independent board members

#

7

7

Fresnillo 2021: 7 of 12 Directors are independent.

MAG Silver 2021: 7 of 8 Directors independent.

 

Female workforce

 

%

 

6

 

9

Juanicipio Project: 9% of workforce (employees and mining contractors) are

women.

MAG Silver: 40% (4 of 10) of the workforce are women.

Female managers

%

0

0

MAG Silver: 33% (3 of 9) of managers are women.

Female executive members

%

0

0

 

Female board members

%

33

33

Fresnillo 2021: 33% (4 of 12) of the Directors are women.

MAG Silver 2021: 38% (3 of 8) of the Directors are women.

Policy on executive compensation for ESG performance?

 

No

No

 

 

Policy on bribery and corruption?

 

 

Yes

 

Yes

Fresnillo has an Anti-Bribery, Anti-Corruption Policy and Supplier Code of Conduct.

MAG Silver has Code of Business Conduct and Ethics and Commitment to

Anti-Bribery Conduct.

UN Global Compact signatory?

 

Yes

Yes

Fresnillo, the operator of the Juanicipio Project, has been a participant since 2009.

MAG Silver has been a participant since 2021.

Social

 

 

 

 

 

Human Rights & Community Relations

Policy on human rights?

 

Yes

Yes

Fresnillo has a Human Rights Policy embedded in its Sustainability Policy. MAG Silver has its own Human Rights Policy.

Policy on Diversity, Equity and Inclusion?

 

Yes

Yes

Both Fresnillo and MAG Silver have Diversity, Equity and Inclusion Policies.

 

Targets on diversity and

opportunity?

 

 

Yes

 

Yes

Fresnillo plc, the operator of the Juanicipio Project, has a goal is to increase the overall representation of women from 10% to 12% by 2025 and to challenge the glass ceiling at the operating manager and superintendent level, raising the percentage

of women in these roles from 2% to 8% by 2025.

 

Whistleblower protection?

 

 

Yes

 

Yes

Fresnillo plc has a third-party 24/7 Whistleblower Hotline.

MAG Silver has a Whistleblower Protection Policy and a third-party 24/7

Whistleblower Hotline.

Community

Relations

 

Total donations to revenue

 

%

 

N/A

 

N/A

The Juanicipio Project is not in commercial production (See Footnote 1) however, in 2021 the total economic impact of the Juanicipio Project was US$161M (includes:

payment to suppliers, wages and benefits to workers, payments to local and federal governments).

Agreements in place with artisanal

miners, if any?

 

No

No

There are no artisinal miners in the area.

Formal agreements with communities or other organizations?

 

 

Yes

 

Yes

 

The Juanicipio Project has two signed agreements with Fresnillo City Council for

the development of microenterprises or productive projects.

 

Community investment and development initiatives

 

 

Yes

 

Yes

Juanicipio Project: Family gardens, backyard poultry, sustainable carpentry workshop, nopal cactus harvesting, “the school is ours” infrastructure program, CETLAR education support, microenterprise projects (sewing, handicrafts, bakery, barbershop, and jewelry and craft workshops).

 

Operation-specific responsibility

for community relations?

 

 

Yes

 

Yes

The Juanicipio Project has a community relations team who conduct assessments and provide support to communities of interest. Deer Trail Project has a site administrator who has responsibility for implementing HSEC programs.

Labour Practices

National employees

%

100

100

 

Supplier ESG training provided?

 

No

No

 

Strikes reported?

 

No

No

There have been no strikes at the Juanicipio Project or Deer Trail Project.

Health & Safety

Lost time injury frequency rate

(LTIFR)

Per 1M hrs

9.45

10.08

Juanicipio Project: LTIFR for every 1,000,000 hours worked, includes employees and mining and construction contractors.

No. of employee fatalities

 

0

0

2020:0 2019: 0

No. of contractor fatalities

 

0

0

2020:0 2019:0

Total no. of fatalities

 

0

0

2020:0 2019:0

Health and safety training provided

for workforce?

 

Yes

Yes

I Care, We Care, High Potential Incidents and Critical Controls programs.

 

Health and safety training provided

for supply chain?

 

 

Yes

 

Yes

Our top tier suppliers are construction contractors (Juanicipio Project) and drilling contractors (Deer Trail Project). Both are subject to site inductions and H&S training is offered by Fresnillo (operator of Juanicipio Project) or MAG (through contractors).

Environment

 

 

 

 

 

GHG

Emissions

Total GHG emissions (Scope 1 & 2) to revenue

tCO2/ USD M

N/A

N/A

Juanicipio Project is not in commercial production (See Footnote 1).

Total GHG emission to production

tCO2/

Oz Ag

N/A

N/A

Juanicipio Project is not in commercial production (See Footnote 1).

Total GHG emission to tonnes processed

tCO2/t

N/A

N/A

Juanicipio Project is not in commercial production (See Footnote 1).

 

Policy to reduce emissions?

 

 

Yes

 

Yes

The Sustainability Policy of Fresnillo, applies. TCFD analysis completed by both Fresnillo (2020) and MAG Silver (2021). Fresnillo's evaluation of its Energy Strategy shows that it is technologically viable to support a decarbonisation pathway in the 2021-2030 period. However, the regulatory uncertainty on renewables in Mexico makes it impractical to set a specific decarbonisation target at this point.

Targets to reduce emissions?

 

Yes

Yes

Fresnillo has a goal to source 75% of renewable power by 2030.

Air Quality

Non-GHG air emissions program?

 

Yes

Yes

The Juanicipio Project has an air quality monitoring program. Dust concentration of PM10 and PM2.5 are analyzed at an external lab.

Policy to improve NOx and SOx emissions?

N/A

No

No

At present the Juanicipio Project does not calculate NOx and SOx.

Policy to improve VOC or particu-

late emissions?

N/A

No

No

At present the Juanicipio Project does not calculate VOC or

particulate emissions.

Energy Management

Total energy use to revenue

GJ/ USD M

N/A

N/A

The Juanicipio Project is not in commercial production

(See Footnote 1).

Total energy use to production

GJ/

Oz Ag

N/A

N/A

The Juanicipio Project is not in commercial production

(See Footnote 1).

Renewable energy use ratio

%

86

84

During construction, the Juanicipio Project is connected to the Saucito Mine, which sources its renewable energy largely from the Coahuila Wind Farm.

Water & Wastewater management

Total freshwater use to revenue

m3/ USD M

N/A

N/A

The Juanicipio Project is not in commercial production (See Footnote 1).

Total freshwater use to production

m3/ tonnes

N/A

N/A

The Juanicipio Project is not in commercial production (See Footnote 1).

 

Freshwater recycled

 

%

 

N/A

 

N/A

During 2021, the Juanicipio Project used 164,000m3 of wastewater from the municipality of Fresnillo to reduce the use of freshwater. The Juanicipio Project's freshwater consumption equals 4% of the total water consumption.

Waste & Hazardous Materials Management

 

Total waste (incl. tailings)

to revenue

 

t/ USD M

 

N/A

 

N/A

The Juanicipio Project is not in commercial production (See Footnote 1). No tailings deposited at Juanicipio. In 2021 development ore was processed at Fresnillo Mine processing plant.

Total waste (incl. tailings) to pro-

duction

t/ tonnes

N/A

N/A

The Juanicipio Project is not in commercial production (See Footnote 1). No tailings deposited at Juanicipio.

Tailings waste recycled

%

N/A

N/A

The Juanicipio Project is not in commercial production (See Footnote 1). No tailings deposited or recycled at Juanicipio.

 

Independent tailings review?

 

 

Yes

 

Yes

Yes. Fresnillo has established Independent Tailing Review Panel (ITRP) that reviews operations, standards and installations of tailings storage facilities. The Juanicipio Project TSF has an engineer of record.

Cyanide Use

 

No

No

 

Ecological

impacts

Environmental management team

in place

 

Yes

Yes

The Juanicipio Project and MAG Silver have environmental management teams.

Environmental Management System externally certified

 

No

No

ISO 14001 environment system implementation on hold for 2022.

Environmental Reclamation Bond?

 

Yes

Yes

Juanicipio has posted an environment surety bond that is updated annually.

 

Policy to reduce impact on biodiversity?

 

 

Yes

 

Yes

 

Part of Sustainability Policy of Fresnillo, the operator of Juanicipio, and also MAG Silver's Health, Safety, Environment and Social

Responsibility Policies. Juanicipio's biodiversity program has:

relocated and transplanted over 20,900 plants and reforested 87,400 plants over 63 hectates. The wildlife conservation program has rescued and released 440 animals. A 97-hectare area near the Juanicipio Project was selected for the soil conservation program and the program has recovered 17,950 tons of soil through erosion controls.

Major environmental incidents reported?

 

No

No

 

Policy on environmental impact in supply chain?

 

No

No

 

1. The Juanicipio Project has not reached commercial production as of December 31, 2021 as we are currently constructing and developing the surface and underground infrastructure on the property to support a 4,000 tonnes per day mining operation, with the operational expertise of our JV partner, Fresnillo plc. We expect the Juanicipio Project to reach commercial production in the second half of 2022.

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Fresnillo Annual Report 2020

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