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Community Engagement and Impacts //

Why It Matters

We recognize that open consultation and collaborative relationships along with sustainable management practices are the cornerstones of responsible business and good community relations. From exploration and development to operation and closure, working closely with local communities is crucial to build trust and support throughout the mining life cycle.

We aim to build good relations through open, honest and regular dialogue with our host communities.

Management Approach

Our goal is to address community priorities that align with our business objectives, to create shared benefits for the long term.

Our commitments

We are committed to supporting the local communities where we operate, building and maintaining positive relationships, providing avenues for dialogue, understanding and managing the social, environmental and economic impacts of our mining operations, and creating social benefits from our activities.

Managing relationships

At each site, we have a community relations coordinator who regularly engages with community members to share information about the operation, assess local needs, listen and respond to feedback and complaints, and determine methods of supporting the community.

Sustainability issues

We have an external sustainability consultant who gathers stakeholder input to help identify and prioritize the issues that matter most to our business and to stakeholders. This process forms the backbone of our sustainability reporting.

Community concerns

We recently adopted a formalized process for addressing community concerns. Our new External Grievance Mechanism is designed to be a fair, accessible and transparent process, and was developed using the standards of the International Finance Corporation and the United Nations Guiding Principles on Business and Human Rights.

Our Performance In 2017

We fully implemented our External Grievance Mechanism, introduced in 2016, across our three production sites last year. Community members filed 11 complaints: three in Bolañitos, seven in El Cubo and one in Guanacevi. Of these grievances, nine were successfully resolved during the year while two are still outstanding.

Going forward, we aim to further promote the newly introduced process so community members are aware of it and know how to use it.

We also plan to enhance how we document and track complaints and ensure we properly respond to community feedback and grievances.

The following table highlights the main community concerns expressed at our operations in 2017 and our positions or actions in response.

External Grievance Mechanism: 2017 Highlights
Issue or Concern Our Position/Response
El Cubo

The community requested that Endeavour build an alternative road for its trucks, alleging that we damaged the existing road in front of the local health center. A new road would also provide another pathway to citizens of Rosa de Castilla, who have no way in and out of their community beyond the same road our trucks are using.

Community members voiced concerns that dust generated in one of the tailings ponds is polluting local water tables.

In November, local media published a comment by a community member alleging that drinking water is being polluted, resulting in several government agencies getting involved to investigate.

The company has analyzed some options and will work with the community of Rosa de Castilla to build a road that responds to their needs in the short- and long-term.

While Endeavour has taken steps to resolve these concerns, as described below, a number of perceptions exist around the purpose and quality of the water tables in question. To clarify:

  • These are not water wells, nor have they even been considered fit for human consumption.
  • These water tables are the result of groundwater seepages, which are naturally cloudy from the clay in the rock and have nothing to do with dust from our mine tailings.
  • El Cubo´s main source of water for domestic use (not drinking water) comes from the El Caolin dam a few kilometers away. Our subsidiary company, Compañia Minera El Cubo, pays for the operation and maintenance of the pumping system from the dam to the El Cubo community as a goodwill gesture.

At the request of the El Cubo Municipal Delegate, we built covers over three of the water seepages to protect them and we left a fourth seepage uncovered to allow cattle to drink. In addition, we covered the tailings dam section to better control dust in the dry season, and we are investing in infrastructure and collaborating with authorities to develop water sources for the El Cubo community.

We sample our plant and tailings waters every six months and run certified lab tests approved by PROFEPA that consistently show no contaminants. We also sample the seepage waters and they also show no contaminants. The water authority (CNA) also did their own testing, confirming both the accuracy of our information (no anomalies) and that the water tables are not for human consumption. In 2018, we will be working with the water utility (SIMPAG) to provide a temporary water treatment plant while a longer-term solution is found with the community.

Bolañitos

Community members expressed concern that mine detonations may be causing damage (cracks) to local homes.

We investigated these concerns and found that cracks in home walls predated our mining activity near the town of La Luz. Evidence obtained through seismic testing and ongoing monitoring confirmed that our mine detonations are not responsible for damaging homes. External parties have also issued reports verifying that there is no correlation between our mining activities and cracks in the homes. Government authorities are now conducting their own investigation into a formal claim filed in 2015, and we hope to have a final resolution in 2018.

Guanacevi

The local ejido (people who live on and manage communal land) requested payment for damage to some trees and land caused by a contractor who was not clear on the company’s boundaries of operation.

In consultation with the ejido, we agreed to pay for certain damages and to renew our 10-year contract with them. We also implemented better guidelines and protocols for contractors to ensure this doesn’t happen again.

2018 Priorities

  • Receive, assess and respond to, in a timely and respectful manner, complaints raised by community stakeholders through the External Grievance Mechanism
  • Conduct a social impact assessment in Terronera.

We aim to build good relations through open, honest and regular dialogue with our host communities.