Aura Minerals Inc - Corporate Responsibility Report 2012
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    Aura Minerals Inc - Corporate Responsibility Report 2012 Aura Minerals Inc - Corporate Responsibility Report 2012 Presentation Transcript

    • Aura Minerals Inc. 2012 Corporate Responsibility Report Continuous Improvement Moving forward together
    • At Aura Minerals, responsible, sustainable growth is a journey that requires a commitment to continuous improvement. This inaugural Corporate Responsibility Report outlines the important goals we have set for ourselves and illustrates how we are working together with stakeholders to improve our economic, social, and environmental performance along the way. This Report contains certain forward-looking information as defined in applicable securities laws. Forward-looking information relates to future events or future performance and reflects Aura Minerals’ current estimates, predictions, expectations or beliefs regarding future events and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies: many of which are beyond the Company’s ability to predict or control could cause actual results to differ materially from those contained in the forward-looking information. Please refer to the Company’s 2012 Annual Information Form for a list of estimates and assumptions. All forward-looking information is qualified by this caution. All currency is in US dollars unless otherwise stated. While every effort has been made to ensure the accuracy of the information contained within this Report, please note that all figures are unaudited.
    • What , s Inside Integrating governance Board of Directors 14 Compensation 15 Feedback to the Board 15 Corporate Responsibility Management 15 Risk Assessment and Management 16 Corruption 16 Human Rights 16 Industry Involvement 16 Introduction About this Report 02 About Aura Minerals 04 Message from the President & CEO 06 Progress and Plans Inc. 08 2012 Operational Highlights and Challenges 10 Message from the VP Corporate Responsibility 12 Creating economic value Economic Contributions and Impacts 18 Sustainable Benefits to Local Communities 18 Local Procurement 19 Investing In Our People Our Employees 21 Employee Training and Career Development 21 Employee Attraction and Retention 22 Local Hiring 22 Collective Bargaining 22 Embedding Health & Safety Health & Safety is Everyone’s Responsibility 24 Occupational Safety Performance 25 Health & Safety Training 26 Safety Committees 26 Locating the data Key Performance Data 41 GRI Content Index 48 strengthening communities Community Development & Social Investment 28 Stakeholder Engagement — Our Approach 28 Stakeholder Feedback 29 Resettlement 32 Social Mine Closure Planning 33 Indigenous Communities 33 Respecting the environment International Best Practices 35 Energy 36 Greenhouse Gas Emissions 37 Water 38 Waste Management 39 Reclamation and Closure 39 Biodiversity 40 Environmental Protection Expenditures 40 13 23 27 20 34 Our contriutors This icon represents photos submissions by Aura Minerals’ employees depicting what corporate responsibility and sustainability means to them. Thank you to our photo contributors! 17 Aura Minerals INc. / 2012 corporate responsibility report 01
    • About this report (GRI 3.1/3.2/3.6) Aura Minerals Inc. (“Aura Minerals” or “the Company”) is pleased to present its first external Corporate Responsibility Report (the “Report”), which communicates the Company’s governance, economic, environmental and social performance from January 1 — December 31, 2012. This Report highlights Aura Minerals’ approach and commitment to corporate responsibility and sustainability initiatives and priorities including governance, the health and safety of our people, the environment, stakeholder engagement, human rights and social responsibility. We include information on our achievements, challenges, risks and opportunities. Our sustainable objectives are continuous improvement and increasing value while mitigating risks, and building mutual benefits in the regions where we operate. This Report incorporates data from: (GRI 3.7) • the Company’s corporate head office in Vancouver, Canada (relocated to Toronto in early 2013) and the corporate office in Brasilia, Brazil; • the Company’s producing assets, which include the Aranzazu Mine in Mexico, the San Andres Mine in Honduras, and the São Francisco and São Vicente Mines in Brazil; and • the Serrote da Laje copper-gold development project in Brazil. Because our financial statements are filed regularly, less emphasis was placed within this Report on economic performance. For additional financial data, the Company’s Audited Financial Statements and Management Discussion and Analysis can be accessed through our corporate website at www.auraminerals.com or SEDAR at www.sedar.com. Reporting Framework and Application Level The Global Reporting Initiative (“GRI”) 3.1 Guidelines and the GRI Mining and Metals Sector Supplement 3.0 were used in the preparation of this Report. On the basis of the GRI framework combined with our materiality assessment, we reported on a total of twenty-four Performance Indicators, including five GRI Mining and Metals Sector Supplement indicators, to achieve a self-declared application B level. A GRI Content Index is located at the back of this Report. External assurance (GRI 3.13) was not sought for this Report, however the content was reviewed by the Company’s Board and management team to verify the accuracy of reported information and to ensure congruence with Aura Minerals’ policies and procedures. Audience AND Report Cycle (GRI 3.3/3.5) We anticipate the audience for this Report will include both internal and external stakeholders: employees, officers, directors, consultants, contractors, shareholders and potential investors, local communities, industry associations, governments and regulatory organizations, non-governmental organizations, peers, business partners, suppliers, and academic institutions. The Company anticipates producing a Corporate Responsibility Report annually, where performance will be benchmarked and year-over-year progress monitored and assessed for operational adjustments, the creation of further best practices policies and procedures, and focus on increased sustainable performance. Defining Report Content — Our Material Issues and Interests (GRI 3.5) The determination of materiality is the process of identifying key issues associated with our operations to evaluate and adjust our management approach and priorities, and to guide and define the content of our Report. Our 2012 materiality assessment consisted of surveys and interviews to assist in the identification and prioritization of material issues. Key interests and priorities of internal and external stakeholders were determined through regular interaction and engagement activities as well as ongoing feedback from all sites and departments. Stakeholders consulted for the Report included employees, local communities, community organizations, investors, applicable local and state government agencies, and trade and industry organizations through dialogue, interviews, workshops, and roundtable discussions at all operations. We also identified issues that are material to Aura Minerals through internal Tell us what you think We welcome questions, comments, or feedback about this Report. Please contact: Gonzalo Rios, VP Corporate Responsibility grios@auraminerals.com In addition to our Content Index, we have noted the location of Global Reporting Initiative (GRI) Standard Disclosures and specific Performance Indicators throughout the report. (GRI) 02 Aura Minerals inc. / 2012 Corporate Responsibility Report Embracing our responsibilities introduction
    • Road to Zero Accidents/Zero Harm Attraction (qualified executive and technical people) and retention (Mine Closure Planning in Brazil) Lack of supporting infrastructure (Honduras) Restricted access to supplies, equipment and technical support Unforseen business interruptions Lack of technical knowledge on part of communities to understand environmental impacts and/or efforts to mitigate impacts Weak community/social programs and infrastructure Travel time to nearest hospital – medical emergencies (Honduras) Providing a good workplace environment Limited company history equates to limited habitual institutional practices Local culture possesses low level of personal safety awareness São Francisco/São Vicente mine closure Socio-economic impacts of mine closures Level of technical knowledge of environmental regulatory authority in non-mining jurisdictions Neutralization of heaps Anti-mining movements Weak government institutions (police and judicial) Lack of community engagement regarding sustainable initiatives Social investment and development Product quality (copper concentrate penalties) Financing/Partner for Serrote Economic viability of Aranzazu until upgrade Ability to control costs/ achieve financial results/ improve share value Water management Waste management Community relations: Maintaining ongoing social license to operate Socio-political: Mining laws in Mexico and Honduras StakeholderConcern Business Impact LOWhighMedium LOW HighMedium The material issues which ranked high for both stakeholder concern and business impact for 2012 were included in this Report, and the full materiality matrix is shown in the adjacent illustration. performance metrics, monitoring industry media and assessing comparable peer company reports, and remaining current on policy and regulatory trends. Key issues as they relate to opportunities, risks, challenges and successes for Aura Minerals were mapped to one of four areas: (i) workplace/health & safety, (ii) economic, (iii) environment, and (iv) community, and each of these issues was ranked as high, medium or low according to the criterion of stakeholder concern and business impact and significance. The material issues which ranked high for both stakeholder concern and business impact for 2012 were included in this Report, and the full materiality matrix is shown in the illustration below. Going forward, Aura Minerals will continue to refine its process of defining material interests and issues as prioritized by our stakeholders in our corporate responsibility reporting, and we intend to expand our formal reach of external stakeholders consulted for feedback to increase transparency and accountability. Note: Aggregation and prioritization of material issues was done at the corporate level; significance of issues may vary at the operational level. Economic Value Our People Environment Health & Safety Communities > < Aura Minerals INc. / 2012 corporate responsibility report 03 Embracing our responsibilities introduction
    • About Aura Minerals Sales Revenue Operating Cash Flow Profile objectives Core values 2012 KEy figures 2012 GOLD AND COPPER SALES CONTINUOUS IMPROVEMENT in Safety Aura Minerals Inc. is a mid-tier production company focused on the development and operation of gold and base metal projects in the Americas. The Company focuses on responsible, sustainable growth in all its endeavours. $307.4M $18.6M Aura’s accident rate has decreased by an average 31% from 2010 to 2012. The Company’s 2012 revenue was from the sale of gold dore from the San Andres and Brazilian Mines and the sale of copper concentrate from the Aranzazu Mine. 2010–2012 Frequency Index (Injury Rate) (GRI LA7) (North American Standards based on 200,000 hours worked) 1.2 1.0 0.6 0.8 0.4 0.2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 2011 2012 2010–2012 Frequency Index (Injury Rate) (GRI LA7) (North American Standards based on 200,000 hours worked) 1.2 1.0 0.6 0.8 0.4 0.2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 2011 2012 • Protect the environment and the health and safety of people • Value honesty and integrity • Promote open communication and transparency • Strive to continuously improve corporate responsibility practices Operating to the highest environmental and safety standards and in a socially responsible manner Maximizing returns on the Company’s projects through efficient operation, including production and cost management Advancing projects through development and partnerships Acquiring and developing quality mineral reserves Gold Sales  164,952 ounces at an average realized price of $1,667 per gold ounce Copper Sales  A total of 20,321 dry metric tonnes of copper concentrate containing 10,404,100 pounds of copper 04 Aura Minerals inc. / 2012 Corporate Responsibility Report introduction
    • Primary metal Copper/Gold/Silver Mine type Open-pit/ underground Expected mine life 22 yrs at 2,600 tpd/ 14 yrs at 4,500 tpd # of employees 550 LTFI* 0.65 Primary metal Gold Mine type Open-pit heap leach Expected mine life 10 yrs # of employees 358 LTFI* 0.30 Primary metal Gold Mine type Open-pit heap leach Expected mine life < one yr # of employees 303 LTFI* 0 Primary metal Gold Mine type Open-pit heap leach Expected mine life < one yr # of employees 291 LTFI* 0.31 Primary metal Copper/Gold Mine type Open-pit copper float Expected mine life 13 yrs # of employees 38 LTFI* 0 Operations (GRI 3.8) Aranzazu Mine Mexico The Aranzazu Mine is located within the Municipality of Concepción del Oro in the State of Zacatecas, Mexico. The property is approximately 250 km from the city of Zacatecas and approximately 112 km from the city of Saltillo. San Andres Mine Honduras The San Andres Mine is located in the highlands of western Honduras, in the municipality of La Union, Department of Copan, Honduras, approximately 300 km northwest of the country’s capital city, Tegucigalpa. São Francisco Mine Brazil The São Francisco Mine is an open-pit, heap leach gold mine located in western Mato Grosso State, Brazil, approximately 560 km west of Cuiaba, the state capital, and approximately 50 km southeast of the Company’s São Vicente Mine. São Vicente Mine Brazil The São Vicente Mine is an open-pit, heap leach operation located in western Mato Grosso State, Brazil, approximately 560 km northwest of the state capital of Cuiaba and approximately 50 km northwest of Aura Minerals’ São Francisco Mine. Serrote da Laje Project Brazil The Serrote da Laje Project is the Company’s core development asset and is a copper-gold development project located in the central-southern part of the Brazilian State of Alagoas, approximately 15 km northwest of the city of Arapiraca. Key facts Producing mines Development Property 1 2 3 54 6 * Lost Time Frequency Index based on 200,000 hours worked Aura Minerals’ producing assets include the copper-gold Aranzazu Mine in Mexico, the San Andres gold mine in Honduras and the São Francisco and São Vicente gold mines in Brazil. The Company’s core development asset is the copper-gold Serrote da Laje Project in Brazil. The Corporate Head Office relocated from Vancouver to Toronto in February 2013, and the Company maintains a technical office in Vancouver. 1 Corporate Office* Toronto, Canada 2 Aranzazu Mexico 3 San Andres Honduras 4 São Francisco Brazil 5 São Vicente Brazil 6 Serrote da Laje** Brazil Note: All Aura Minerals’ assets are 100% owned through subsidiary companies in each jurisdiction * The Corporate office moved to Toronto, Canada effective February 1, 2013 ** Serrote does not have data available for operational aspects while in development status Aura Minerals INc. / 2012 corporate responsibility report 05 introduction
    • I am pleased to introduce the Company’s inaugural Corporate Responsibility Report. While this is our first formal Corporate Responsibility Report, it builds on a well-established commitment to corporate responsibility and the corresponding alignment with our business objectives and mission and is designed to provide tangible evidence of our commitment to continuously improve our communication of the Company’s risks, opportunities and sustainability achievements. It also includes a discussion of our most relevant sustainability issues in 2012 as identified by our ongoing stakeholder engagement processes, as well as the Company’s key sustainability objectives and initiatives for 2013. Economic Sustainability The Company’s economic sustainability is affected by various external factors including the pace of global economic growth and the fiscal and monetary policies of national governments. Such factors have a strong influence on the price of the commodities, our cost of capital, and ultimately, our profitability and financial position. Our performance is also dependent on taxes and royalties, which are expected to increase with the passage of new mining laws in Honduras, Mexico and Brazil. In response to these factors, we continue to concentrate on the economic efficiency of the Company. During 2012 we focused on achieving cost- efficient improvements to our existing operations while continuing to focus on our expansion plans at Aranzazu and the development of the Serrote Project — which we advanced considerably; technically, socially and economically. We have continued to optimize the Company’s assets, with cost reductions in Brazil and at the corporate office, and the execution of new mine plans in Brazil to improve operational performance. We are also exploring opportunities to maximize the value of the Brazilian assets and at a number of corporate financing alternatives. In addition, we are looking at options to maximize the disposal and closure value of the assets of the São Francisco and São Vicente mines, including selling the plant and equipment and utilizing key members of the operating teams in other locations. Market valuation and share price notwithstanding, we successfully met several significant objectives and fundamental milestones in 2012 as featured in the Operational Highlights section of this Report. Our “financial turn-around” story in 2012 was reflected by several important metrics, including positive cash flow in Brazil in the second quarter, a turnaround in the fourth quarter at São Francisco, an overall return to stability in the second half of the year and much improved financial results in the second, third and fourth quarters. James BannaNtine President & CEO Message from the President & CEO (GRI 1.1) “We successfully met several significant objectives and fundamental milestones in 2012 as featured in the Operational Highlights section of this Report.” 06 Aura Minerals inc. / 2012 Corporate Responsibility Report introduction
    • Engaging with Stakeholders Aura Minerals fully embraces its responsibility to manage the social and environmental impacts of our operations in all of the jurisdictions in which we operate. Our commitment to responsible, sustainable growth is an integral part of how we achieve our business goals and objectives and requires that the contributions we make to our communities extends well beyond the life of our operations. In 2012, our community engagement and consultation commitment was especially evident at the Serrote da Laje Project and the San Andres Mine. Serrote experienced successful community relations efforts to engage the local community and achieve a mutually beneficial resettlement agreement. Equally important was a new community agreement at San Andres, which reflects consensus on a number of items, including the relocation of a cemetery to enhance exploration efforts and increase mine life potential, and an urban improvement project that provides the opportunity for a voluntary relocation. With the planned closure of São Vicente in 2013, we have placed a particular focus on both environmental closure and remediation plans as well as a strong social closure commitment for our mine staff, for whom we are providing enhanced training and certifying, or relocating to other operations. At Aranzazu, we increased communication and engagement efforts with state and municipal governments as well as federal and state environmental authorities regarding the ongoing operation and expansion of this mutually beneficial and important regional project. Health & Safety Nothing is more important than the health and safety of our people — our Board, management and employees should all be very proud of our improved performance over the past three years. Our Health & Safety record, under the stewardship of our VP of Corporate Responsibility and with the support of local management and the Human Resources team, has continued to benefit from an active Road to Zero Accidents campaign and a supportive workplace culture as we emphasize and promote Zero Harm. The achievement of OHSAS 18001 at São Francisco in 2012 was a significant international best practice milestone, demonstrating our commitment to the utmost diligence in our occupational health and safety management systems. Moving Forward Together With this Report, we have aimed to openly share Aura Minerals’ efforts to ensure our performance meets or exceeds the expectations for a responsible mining company. It is my belief that we have achieved that goal while setting the stage for continuous improvement. Moving forward together, our commitment of embracing our responsibilities, creating economic value, investing in our people, embedding health and safety, strengthening communities and respecting the environment will ensure we continue to improve our sustainable performance in cooperation with the communities in which we operate. Sincerely, James Bannantine President & CEO August 15, 2013 “Nothing is more important than the health and safety of our people — our Board, management and employees should all be very proud of our improved performance over the past three years.” Aura Minerals’ Approach to Corporate Responsibility & Sustainability Corporate responsibility is an integral part of our organization. It guides us in our everyday activities and confirms that wherever we work, we work with integrity. Aura Minerals is committed to sustainable development, the protection of human life, the preservation of the environment, and the improvement of positive impact on the communities where the Company operates. The Company demonstrates this commitment through corporate responsibility strategies and sustainable growth aligned with all corporate responsibility practices, and as embodied by our policies and standards pertaining to Health & Safety, Environment and Community. It is from this leadership framework that the Company prioritizes community development and engagement within its four core corporate responsibility principles: • adopting a strategic approach; • encouraging community participation and engagement; • working in partnership; and • sustainable support. These guiding principles will be applied through adherence to internationally accepted guidelines and standards and assurance of a continued effort to integrate corporate frameworks and policies into practice. The Company has built and will continue to maintain sufficient capacity to provide the necessary tools for all employees, contractors and consultants to be aware of their roles and responsibilities with respect to sustainability and community development and engagement. Aura Minerals INc. / 2012 corporate responsibility report 07
    • Our progress and plans cover issues relating to each of our six focus areas and outline what we aspired to do in 2012, what we did, and what we plan to do in 2013. Progress & Plans Focus area 2012 plans 2012 Progress 2013 goals Integrating Governance Our governance structure guides, manages and monitors our corporate responsibility and sustainability initiatives Implement an operation-wide risk assessment procedure Achieved Analyze results, address risk mitigations required and incorporate risk assessment annual follow-up into procedures and budget Gather data and put systems in place for an internal B level 2011 GRI Corporate Responsibility Report Achieved Produce an external self-declared B level 2012 GRI Corporate Responsibility Report Creating Economic Value How our economic contributions and impacts are consistent with our corporate responsibility strategies Complete Feasibility Study at Serrote Achieved Secure project financing and transition into construction phase Secure a financing partner for Serrote Partially achieved Preliminary bridge financing of $20M secured Complete Preliminary Economic Assessment at Aranzazu Achieved Complete engineering and commence construction Address San Andres production costs Partially achieved Continue to optimize Conduct Corporate Standards Audit (risk assessment and gap analysis) Achieved Follow-up on progress for items which did not meet audit criteria and require attention or improvement Meet or exceed budgeted gold and copper production estimates at all sites Partially achieved Gold Production: 166,000 – 185,000 ounces Copper Production: 13M – 15M pounds Relocate the corporate head office to Toronto Achieved Continued increased efficiencies in time zones and travel Establish an Investor Relations Program Achieved VP Corporate Development in place for marketplace strategy and communication to investment community Build financing relationships and increase market presence for the Company 08 Aura Minerals inc. / 2012 Corporate Responsibility Report introduction
    • Focus area 2012 plans 2012 Progress 2013 goals Investing in Our People Attracting, retaining and valuing our employees while creating a culture of sustainability Recruitment for senior site roles at San Andres and Aranzazu Achieved Continue to train and/or seek qualified management personnel Leadership Program training Achieved Determine how to promote use of tools and skills in the workplace Commenced a performance management process Partially achieved Ensure objectives at manager level and enhance link to compensation Employee satisfaction survey — São Francisco Achieved Incorporate São Francisco feedback into daily operations Embedding Health & Safety Creating a safe and healthy workplace free of accidents, injury and illness Zero accidents Achieved 31% improvement over 2011. Zero accidents at São Francisco and Serrote Continue training, program implementation and monitoring to work towards this goal. • Detailed safety plan and program for Aranzazu • Continue to maintain a high level of safety at São Vicente with closure plans Strengthening Communities Engaging with our communities, their development and social investment Community agreement with San Andres for mine expansion and cemetery relocation Achieved Community agreement with San Andres was signed in late 2012 Prioritize community engagement and liaison to ensure continued relationship with community regarding mine expansion and any potential impacts Resettlement at Serrote — engage and consult with affected communities Partially achieved (approx 85%) Continue negotiations for remaining 15% of resettlement agreements by August 2013 Commencement of social mine closure plan at São Vicente Partially achieved Ongoing Continue to train or transition employees as the mine closes and decommissions Respecting the Environment Commitment to the mitigation of risk and minimization of our environmental impacts Conduct cyanide management code compliance audit at San Andres Achieved Achieve International Cyanide Management Code Certification for San Andres in late 2013 No notice of violation at any sites Achieved Continue to assess and mitigate risks to maintain 100% compliance Aura Minerals INc. / 2012 corporate responsibility report 09 introduction
    • 2012 Operational Highlights AND Challenges San Andres HondurasAranzazu mexico Highlights • Preliminary Economic Assessment complete — the enhancement will increase mill throughput (internally funded) and roaster installation will decrease arsenic levels in concentrate (reducing customer penalties) • Low number of accidents • Established an open line of communication with the community regarding damage in homes. Vibrations are monitored and the intensity near houses are well below international standards • Investment in human resources that will reduce turnover and provide continuity • Compliance with environmental laws Challenges • Opposition from a small group of community members resulted in a protest which blocked road access to operations for one day in late 2012, and delayed a blasting permit renewal hindering operations for 17 days in January 2013 • Arsenic levels in the final product (until the roaster is installed) • Cash flow, mostly due to final product prices and/or sales • Staffing issues — high turnover rate in certain departments Highlights • Finalized community agreement regarding the relocation of the cemetery, securing the expansion of the mine and extending the life of the mine to 10-12 years • Fulfillment of community agreements that were dating back to 2007 to build trust in the community • Continued momentum developing the work of the San Andres Foundation • Successful completion of internal cyanide management certification compliance audit • Surpassed improvement cost per ounce according to budget Challenges • The agreements with the community were reached, however, they took more time than anticipated and delayed the exploration program into 2013 • General communication with the community requires ongoing efforts • There is a high dependency from the community on the mine for education, health and social services Aura Minerals’ mines and development projects are situated in three separate and distinct countries — all with unique climates, cultures, corporate responsibility opportunities, and sustainability challenges. “I am extremely pleased with our efforts made to engage with the local community and achieve the new agreement at San Andres, which included consensus on a number of items, including the relocation of a cemetery that will enhance exploration and increase mine life potential.” James Bannantine President & CEO 10 Aura Minerals inc. / 2012 Corporate Responsibility Report introduction
    • São Francisco Brazil São Vicente Brazil Serrote da Laje Brazil Highlights • OHSAS 18001 certification • Recertification of ISO 14001 • 4 million hours with no lost time accidents • Optimized mine plan to end of mine life • Implemented a number of programs to benefit employee health • Programa Mobilizar (Mobile Program) —  see case study on page 31 • Partnership with SENAI (Serviço Nacional de Aprendizagem Industrial) and a private institution to provide further training to staff and community in specific skills • São Francisco was awarded “Best Company in the Municipality” by the Rotary Club of Pontes e Lacerda Challenges • Exploration and potential extension of mine life • Maintain zero accidents • Consistent reinforcement and maintenance of ISO 14001 and OHSAS 18001 management systems Highlights • Potential extension of mine life • Optimized mine plan to end of mine life • Retraining initiative, to ensure employment opportunities across the qualification spectrum upon closure Challenges • Finalization and implementation of the mine closure strategy (including mine closure funds) • Retention of qualified staff — either for closure or transfer to Serrote • Maintaining a motivated and safe workplace with imminent closure plans • Grade affecting recovered ounces in closing phase Highlights • Feasibility study completion; demonstrating the economic viability of the project • Agreements in place with the local community regarding terms of the resettlement program —  early positive adoption and working towards completion in 2013 Challenges • World markets — project financing • Managing expectations of resettlement and fulfilling commitments included in the community agreement “The community resettlement program at Serrote has gone extremely well. We placed significant effort in the preparation stage, and with continued engagement and responsiveness, we expect full participation in 2013.” Gonzalo Rios VP Corporate Responsibility Aura Minerals INc. / 2012 corporate responsibility report 11 introduction
    • Message from the VP Corporate responsibility At Aura Minerals, we genuinely want to have a positive and sustainable impact on the communities in our direct area of influence. This is a road that has no final destination; it is a continuous process, thus the “how” is as important as the goal. In 2012, we implemented standards and procedures to enhance our performance in the areas of environment, health, safety and community engagement and development. As a result, I believe we are doing better and doing the “right” things as a company and as individuals. Because of our process-oriented approach there continues to be a true sense of measurable improvement in our perspective and performance, which we endeavour to communicate in this Report. I am proud to have witnessed a remarkable improvement in the safety culture of our workplaces at all operations and believe Aura MInerals has adopted the continuous improvement imperative to become “better every year”. We are at a point where we have the policies, procedures, and safety protocols in place to promote our ultimate goal of zero accidents and foster a culture of zero harm. Our goal is, and always will be, zero accidents. We, as members of society, value human life tremendously, and for that reason our steadfast message is that it is unacceptable for anyone to get hurt. We have also carefully considered and implemented a broad range of community development programs at our projects and operations on the basis of local needs. While some of our community investment programs involve straight funding, we believe philanthropy should only be part of sound social program design. Below are some of the highlights of our social contributions in 2012. Aranzazu Mine — In 2012 there were several initiatives, including support of local schools and voluntary home and community infrastructure repairs, and we are looking at the design and implementation of more significant programs that will create the greatest positive impact on the community. San Andres Mine — Sustainable development programs coordinated through the San Andres Foundation are “germinating” with respect to community designed and supported long-term sustainable business opportunities after the closure of the operation. (See the Foundation case study on page 19). Serrote da Laje — The community resettlement program at Serrote has gone very well, and with continued engagement we anticipate full participation in 2013. (Read more about the re-settlement program on page 32). São Francisco/São Vicente Mines — The Programa Mobilizar (Mobile Program) has been an extremely powerful program — a simple idea with great impact. Even with pending mine closure, the Mobile Program will facilitate access to knowledge about health, safety, the environment and related services available through the Brazilian government. (See the case study on page 31). Stakeholder engagement, community consultation, and ongoing positive relationships with local communities were identified as key material issues at all our sites in 2012 and are a continued ongoing focus. They are an aspect of our business that we are highly attuned to, and we believe and have seen that social dynamics and community concerns will influence greatly our project schedules. We must work harder to accommodate these local sensitivities and we should adjust our scheduling processes to ensure thorough community consultation and engagement. Everyone in the Company is accountable and responsible for safety, environmental performance and relationships with our stakeholders and communities. In this sense, everyone is a corporate social responsibility spokesperson. I would like to thank all of you for helping to advance our corporate responsibility and sustainable development initiatives in 2012 and I look forward to your continuing support. Thank you and sincerely, Gonzalo Rios VP Corporate Responsibility August 15, 2013 gonzalo rios VP Corporate Responsibility 12 Aura Minerals inc. / 2012 Corporate Responsibility Report introduction
    • In this section Board of Directors Compensation Feedback to the Board Corporate Responsibility Management Risk Assessment and Management Corruption Human Rights Industry Involvement Integrating governance Aura Minerals INc. / 2012 corporate responsibility report 13
    • Compliance with our Code of Business Conduct and Ethics confirms that employees, officers and directors conduct business in accordance with all applicable laws, rules and regulations and with high ethical and moral standards. The Code, along with other corporate responsibility policies and charters, reinforces the Company’s ethical commitment to its employees, host communities and local authorities, partners and shareholders. New employees receive an Employee Handbook and are provided with a copy of the Code, which they must sign to indicate they have read and understand Aura Minerals’expectations. Board of Directors (GRI 4.1/4.2) Our Board of Directors is responsible for the oversight of the direction and strategy of the Company and is an integral part of the corporate governance structure. At the date of this Report, the Board is comprised of five men and one woman for a total of six directors, five of whom are independent. (GRI 4.3) The Board has six committees that provide judgement and assistance to management of the Company: the Audit Committee, the Compensation Committee, the Environmental, Health, Safety & Social Responsibility Committee, the Nominating & Corporate Governance Committee, the Development Committee, and the Disclosure Committee. The Nominating & Corporate Governance Committee is comprised entirely of independent directors. Its mandate is to identify and recommend new candidates for Board nomination (including skills and competencies required), (GRI 4.7) annually assess the performance, effectiveness and contribution of the Board, (GRI 4.10) its committees and its directors and make recommendations for changes when appropriate; and to ensure that a comprehensive orientation is received by new directors and continuing education opportunities are available. Aura Minerals is committed to ethical business practices and has thorough corporate governance structures in place to guide and confirm accountability throughout all levels of the organization. All of our directors, officers and employees are bound by the Company’s Code of Business Conduct and Ethics. The Code embodies this commitment and the expectation of Aura Minerals’ directors, officers, employees, contractors and consultants to conduct business in accordance with all applicable laws, rules, and regulations with high ethical and moral standards. The Code describes the standards Aura Minerals expects of its personnel including, but not limited to: • compliance with all laws, rules and regulations in the jurisdictions in which the Company operates; • high ethical and moral standards; and • reporting violations and suspected violations — Whistleblower Policy. Issues relevant to Aura Minerals’ business and embedded in the Code include, among other things: • confidentiality/confidential information; • insider trading and black-out periods; • avoidance of conflicts of interest; • Corporate Opportunities Policy; • protection and proper use of Company resources; and • competition and fair dealing. The Company is committed to: • treating individuals with dignity and respect; • fair employment practices; • a safe and healthy work environment; • protecting the environment and being a responsible member of the communities in which it operates; and • timely, full, plain and accurate disclosure. Aura Minerals will not tolerate any type of discrimination or harassment and expects all relationships among persons in the workplace be professional and free of bias and harassment. The complete Code of Business Conduct and Ethics can be located in the Governance section of our website at: http://www.auraminerals.com/ About-Aura/Corporate-Governance/ default.aspx Aura Minerals’ Code of Business Conduct and Ethics (GRI 4.6/4.8) 14 Aura Minerals inc. / 2012 Corporate Responsibility Report14 Aura Minerals inc. / 2012 Corporate Responsibility Report Integrating Governance
    • VP Corporate Responsibility President & CEO Stakeholder Feedback Aura Minerals‘ Code of Business Conduct and Ethics Board of Directors Environmental, Health, Safety & Social Responsibility Committee Compensation Committee Nominating & Corporate Governance Committee Stakeholder Feedback Mechanisms • Email • Regular mail • Telephone • Quarterly conference calls • Annual proxy • Whistleblower email or regular mailDisclosure Committee Development Committee Audit Committee Site Managers – Community Development Site Managers – Health, Safety & Environment Environmental and Sustainability Consultants Compensation (GRI 4.5) The Compensation Committee is currently comprised of three independent Board members, all of whom have held senior executive and board positions with other base and/or precious metal companies where they have had direct involvement in the development and implementation of compensation policies and practices for employees at all levels, including executive officers. The Company has in place a number of measures to ensure that compensation paid is fair, reasonable, and directly aligned with competitive compensation philosophies and stakeholder interests. For certain specific positions, compensation bonuses are linked to social and environmental performance. Feedback to the Board (GRI 4.4) Shareholders have the opportunity to voice their opinion through annual proxies received in advance of each annual general meeting, and are invited to ask questions and provide feedback to management and the Board at each meeting. In addition, under the Canada Business Corporations Act, the Company’s governing corporate statute, there are provisions for the submission of shareholder proposals and resolutions. Stakeholders have mechanisms of inquiry and feedback with our Company and Board through email on the Company’s website, telephone contact with the Company, participation on quarterly conference calls, and regular mail. Concerns relating to financial or ethical matters may be directed to the Chair of the Audit Committee anonymously and confidentially by regular mail or by email at whistleblower@auraminerals.com. Aura Minerals has an “open door” policy which encourages all employees to approach the President & CEO or senior management with questions or concerns and in accordance with the Whistle Blower Policy. Corporate Responsibility Management (GRI 4.9) The Board committee with primary responsibility for overseeing corporate responsibility matters is the Environmental, Health, Safety & Social Responsibility Committee, which is comprised entirely of independent Board members. The committee ensures that the Company conducts its activities in such a manner as to ensure the health and safety of its employees, promote sustainable development, preserve the environment and develop the communities in which it operates. The day-to-day management of the Health & Safety, Social Responsibility and Environmental programs at Aura Minerals is led by the Company’s Vice President, Corporate Responsibility, with the assistance of on-site environmental managers, health and safety technicians and environmental consultants. Together they continue to develop and implement environmental education programs for the Company’s employees and host communities at each operation. Governance and CR Accountability Structure (GRI 4.1) The Company has in place a number of measures to ensure that compensation paid is fair, reasonable, and directly aligned with competitive compensation philosophies and stakeholder interests. For certain specific positions, compensation bonuses are linked to social and environmental performance. Aura Minerals INc. / 2012 corporate responsibility report 15 Integrating Governance
    • Risk Assessment and Management The management of risk is essential to effective governance and the achievement of our business objectives. In addition to Board oversight, Aura Minerals’ management systems (including our enterprise risk management process), identify aspects that may present a material risk to the Company or a specific operation. These aspects are prioritized to prevent accidents, impacts on the environment, and incidents that may affect communities or other stakeholders. An annual risk assessment is conducted for each site and these risks are reviewed by the Audit Committee and included in the budgetary process to ensure the required resources are allocated to mitigation plans. Corruption Aura Minerals has a zero tolerance policy regarding corruption at any level or in any business unit or operation within the Company —  which is embedded in the Code of Business Conduct and Ethics. We also have rigorous internal financial controls in place to oversee the financial aspects of operations that could be related to and/or uncover any incidents of corruption. Human Rights (GRI HR4) Aura Minerals is committed to fair employment practices; all individuals are treated with dignity and respect. The Company does not tolerate any type of discrimination or harassment at any level and expects that all relationships among persons in the workplace will be professional and free of bias and harassment. Our commitment to human rights is exemplified by our Corporate Responsibility Principles, Code of Business Conduct and Ethics, and Human Resources Principles. We ensure training and follow-up with emphasis upon dispute resolution, prevention of discrimination and harassment, forced or underage labour, management of attendance, performance management and termination, discipline, drug/alcohol abuse, and fraud within our Company. We are pleased to report that in 2012 no incidents of discrimination were reported. The potential risk of child labour (HR6) exists in Mexico, Brazil and particularly in Honduras. The Company enforces compliance with strict policies and procedures for applicants (proof of age) of both employees and contractors to address this issue and associated risk within its operations and key contributors of its supply chain. In addition to corporate safeguards, under-aged employees in a mine environment are generally not culturally supported. Aura Minerals has established an open process to resolve concerns and disputes as well as a mechanism for the submission of anonymous reporting of any suspected violations, including concerns regarding government laws, rules and regulations, corporate reporting and disclosure, or financial or auditing practices. Our Whistleblower Policy is accessible in the Corporate Governance section of our website at http://www.auraminerals. com/About-Aura/Corporate-Governance/ default.aspx. (GRI 4.4) Industry Involvement (GRI 4.13) Interaction and involvement with Industry Associations enables Aura Minerals and our personnel to build and maintain key industry relationships while keeping informed of sector trends and international best practices. In 2012 Aura Minerals was a member of the following Industry Associations: Brazil • Agência para o Desenvolvimento Tecnológico dá Indústria Mineral Brasileira Technological Development Industry for the Mining Industry in Brazil • Câmara de Comércio Brasil — Canadá Chamber of Commerce Brazil — Canada • Federação das Industrias no Estado de Alagoas Alagoas State Federation of Industries • Federação das Industrias no Estado de Mato Grosso Mato Grosso State Federation of Industries • Instituto Brasileiro de Mineração Brazilian Mining Association Honduras • Asociación de Minería Metálica de Honduras Mining Association of Honduras • Asociación Nacional de Industriales de Honduras National Industry Association of Honduras • Cámara de Comercio e Industria de Copán Chamber of Industry and Commerce of Copan • Consejo Hondureño de la Empresa Privada Honduras Council for Private Industry Mexico • Cámara Minera de México Mexico Chamber of Mines • Cámara de Comercio de Canadá en México Canadian Chamber of Commerce in Mexico • Cluster Minero del Estado de Zacatecas Zacatecas Cluster for Mining “Aura Minerals has deeply rooted ethical behaviour and genuinely cares for its staff. It is a priority to ensure the well-being of people and there is support from all levels; managers, supervisors, executives and colleagues, to ensure the safety and welfare of everyone.” Javier Romero Manager Health, Safety & Environment, San Andres Mine 16 Aura Minerals inc. / 2012 Corporate Responsibility Report Integrating Governance
    • Conveyor belt, San Andres, Honduras In this section Economic Contributions and Impacts Sustainable Benefits to Local Communities Local Procurement Creating Economic value Aura Minerals INc. / 2012 corporate responsibility report 17
    • Economic Contributions and Impacts Whether directly or indirectly, through investments into employee wages and benefits, procurement of local goods, capital expenditures, taxes, or ongoing community investment, our expenditures contributed to the local and regional economies of each of our operating locations. Aura Minerals’ approach aims to ensure our economic contributions and impacts are consistent with our sustainable development goals in each of those locations. Sustainable Benefits to Local Communities Aura Minerals focuses its community investments on sustainable growth programs, which seek to provide more long-term sustainable opportunities and growth than the provision of funds, materials or infrastructure without the future company sponsorship or participation. While infrastructure is often essential for the development of remote communities, such growth will only be sustainable if there is an adequate maintenance program supported by a well-designed process that includes the participation of local communities and governments. Aura Minerals’ primary strategic focus in 2012 was on the Company’s economic sustainability. Life-of-Mine optimizations (including extension of mine life), internal and external financing utilization, and ongoing and concentrated community relations were all conducted with a clear goal in mind — moving Aura Minerals forward towards improving financial results, increased community and social interaction and the steady growth of value for all stakeholders including shareholders. Economic Performance (GRI EC1) In US dollars (USD) 2012 Sales to external customers $ 307,412,000 Cost of production $ 267,035,000 Depletion and amortization $ 57,311,000 Gross profit (loss) $ (16,934,000) Other expenses $ 37,112,000 Profit (loss) before income taxes $ (54,046,000) APPROXIMATE ECONOMIC BENEFITS TO LOCAL COMMUNITIES (GRI EC1) In US dollars (USD) 2012 Employee wages and benefits $ 54,916,000 Income taxes $ 6,677,000 Payments to providers of capital (finance costs) $ 1,232,000 Payments to government (taxes on sales) $ 4,877,000 Community investment $ 2,809,500 “Whether people work at the mine or not, they benefit from the mine activity in many ways as the economic status of the employees increases their purchasing power and allows other businesses and services in the area to grow.” Rene Miranda Patronato Representative and Employee, San Andres Mine Photo: Ariel Valenzuela Open pit, Aranzazu, Mexico 18 Aura Minerals inc. / 2012 Corporate Responsibility Report Creating economic Value
    • In collaboration with community leaders, the San Andres Mine created and funded the Fundación San Andrés (San Andres Foundation). The Foundation is its own legal entity; managed by the mine in conjunction with the leaders of each of the nearby communities of Azacualpa, San Andres, and San Miguel. The goal of the Foundation is to address the needs and concerns of the communities, including investigating and testing sustainable economic growth opportunities, which would extend past the life of the mine, and to start taking the necessary steps to achieve this target in the long term —  essentially to begin building a socially sustainable mine closure plan. After much consultation and feedback, the Foundation is in the process of establishing a coffee cooperative with the communities. The Company has provided the land, finance start-up materials, training regarding growing and marketing coffee, as well as support for product sales. The vision for the coffee cooperative is that it will provide long-term employment for participants and their families, economic benefits to the community, and remediates the region with a profitable project. Economic Growth Beyond the Life of the Mine San Andres mine, Honduras 2012 p Nearby communities 19.60% p Nearby states and provinces 19.56% p National 50.84% p International 10.00% All operations have a competitive bid process for suppliers, which includes criteria such as geographic location, quality of product, cost, delivery times, availability, service quality and experience, with preference (all other things being equal) to local and regional suppliers. LoCAL PROCUREMENT (GRI EC6) Aura Minerals uses its best efforts to procure goods and services locally wherever possible. The percentage of supplies that can be sourced locally differs substantially from country to country and site to site. All operations have a competitive bid process for suppliers, which includes criteria such as geographic location, quality of product, cost, delivery times, availability, service quality and experience, with preference (all other things being equal) to local and regional suppliers. Notwithstanding our efforts to procure goods locally, much of the large machinery or chemicals such as cyanide can only be obtained through international suppliers. We have added a greater level of detail and enhanced our definition of “local” beyond the country level by including nearby states and provinces, municipalities, and communities. Local Procurement (GRI EC6) 90% of Aura Minerals’ suppliers are nationally sourced with 19.6% being from nearby communities case study Aura Minerals INc. / 2012 corporate responsibility report 19 Creating economic Value
    • Employee Diana de la Rosa, Quality Control: Aranzazu, Mexico In this section Our Employees Employee Training and Career Development Employee Attraction and Retention Local Hiring Collective Bargaining Investing in Our People 20 Aura Minerals inc. / 2012 Corporate Responsibility Report
    • Number of Employees by Gender (GRI LA1) 500 400 300 200 100 0 Brazilian OfficeSerrote da LajeSão VicenteSão FranciscoSan AndresAranzazu Corporate Office Average Training Hours per Employee (GRI LA10) OUR EMPLOYEES In 2012 Aura Minerals employed up to 1,568 people across four countries, five operations, and two corporate offices. We promote a respectful and fair workplace and foster a level of commitment to a high performance culture of zero harm. EMPLOYEE TRAINING AND CAREER DEVELOPMENT Aura Minerals provides competitive or above national average wages as well as benefits and training opportunities to our workforce. We orient our new employees through training about our health, safety and environment program, providing Aura Minerals places great emphasis on our most important resource — our people. Our employees and contractors are key to the success of our business; we rely on skilled, hard working, and committed people. We prioritize and maintain our relationships with our employees and contractors by ensuring that we have effective processes, policies, and training in place to ensure their health and safety. 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Brazilian Office Corporate Office Mexico Honduras Brazil Brazil Brazil Brazil Canada p Male 474 303 272 272 31 5 11 p Female 76 55 31 19 7 7 5 Total 550 358 303 291 38 12 16 1,568 34Employees as at December 31, 2012: 1,368 male, 200 female On average, our employees received 34 hours of training in 2012. Total training overall: 51,433 hours role-specific health and safety training, detailing our human resource principles and key practices, and familiarization with emergency protocols. We have an open process to resolve concerns and for dispute resolution; we ensure training and follow up to eliminate discrimination and harassment. We ensure employees are in a ready 2012 p Aranzazu – Mexico 8.25 p San Andres – Honduras 24.59 p São Francisco – Brazil 70.97 p São Vicente – Brazil 52.72 p Serrote da Laje – Brazil 14.84 NOTE: Operation/project sites only, this data does not include Brazil or Canada Corporate Offices “The Company provides plenty of opportunities for its people to develop professionally and it is up to the employee to take advantage of these opportunities. I have been at São Fransicso for almost three years, and I see myself as a very different person in that time frame —  I have learned and grown both professionally and personally.” Janderson Frazao de Lima Drill Operator, São Francisco Mine Aura Minerals INc. / 2012 corporate responsibility report 21 Investing in Our people
    • EMPLOYEE ATTRACTION AND RETENTION In 2012 we placed specific focus on employee attraction and retention at all our operations. Initiatives in this regard included a company-wide benefits review and site level salary reviews, continued supervisory programs (supervisory skills training and continuous improvement projects) and an employee satisfaction survey at São Francisco. At São Vicente, we initiated a comprehensive program of training, job search assistance, retention incentive for employees who remain with the mine, training for professionals and for unskilled, semi-skilled, and skilled labour. LOCAL HIRING Aura Minerals seeks to hire locally where possible so that the economic benefit of employment remains to the greatest extent possible in our host communities. We emphasize the hiring of employees from local and regional communities at all locations and operations and we prioritize local training to build additional capacity in this regard. Expatriate employees are only sought for positions where the experience and/or technical qualifications are not available within local or regional populations. Although Aura Minerals is very strong in its ability to source talent at the local level, each of our operations is working towards continually strengthening and expanding its training programs to further enhance local employment opportunities. Our Serrote da Laje development project has taken this commitment one step further with a written agreement with the local municipalities to train and hire qualified people locally. COLLECTIVE BARGAINING (GRI LA4) Employees at all our operations enjoy the unencumbered right to freedom of association as per applicable labour laws (Serrote da Laje remains an exception while in development stage). At December 31, 2012, 81% of our employees at the site level were covered by collective bargaining agreements. The right to collective bargaining and freedom of association does not pose significant operational risk at our sites or with our suppliers. Aura Minerals renewed or completed three collective agreements and had no work stoppages in 2012. and safe work condition by conducting appropriate drug and alcohol testing, and we ensure our contractors apply these same standards. Aura Minerals establishes goal alignment for its employees by clearly communicating the Company’s strategy and annual goals, and ensuring these are a part of the performance management process. This includes establishing annual goals, objectives, regular follow-up and feedback (recognition of performance) processes. Position profiles, performance evaluations and competency matrix programs have been developed to provide employees with a clear link between performance and compensation and we continue to advance these measurement tools. Additionally, we identify and support future leaders for management roles, providing ongoing development (experience based) opportunities, and ensuring processes for the ongoing exchange of technical and management knowledge within the business. Examples of professional development in 2012 included specific training related to technical aspects of work (new techniques and equipment), first aid training, and scholarships for the completion of high school equivalency and university courses. In November 2012, the experience and expertise of a São Francisco employee was utilized across operations when Ana Paula Teixeira Machado was sent to the Company’s San Andres Mine to conduct an internal audit for their Cyanide Management Code (ICMC) certification. Ana Paula was the most experienced and capable candidate within the organization for this type of compliance audit, being certified to be an internal auditor for the ICMC certification, responsible for the integrated management systems at São Francisco, and having worked closely with the process to achieve ISO 14001, OHSAS 18001 and ICMC certification. Ana Paula assessed the protocols and advised the staff regarding improvements required to achieve ICMC certification at San Andres, which provided an excellent professional development opportunity for Ana Paula, an opportunity for the Company’s Honduran operation to learn about what the other mines are doing to support a more efficient and targeted way to achieve the certification, plus a cost-effective means for Aura Minerals to conduct an internal audit. , Creating Opportunities for Professional Development SÃo Francisco, Brazil “Participating in the internal audit of the International Cyanide Management Code at the San Andres Mine was an amazing experience! Regardless of culture, country, or language, Aura Minerals seeks the same goal at all its operations, which is to prioritize the safety and health of employees and communities “Working at Aranzazu has provided me with both personal and professional satisfaction. I enjoy working with people who are highly qualified and committed to their jobs and I am grateful for the huge interest that the Company has in their employees through the leadership program.” Rosario Martinez Maldonado Community Relations Coordinator, Aranzazu Mine Ana Paula Teixeira Machado Health Safety Environment Management Supervisor São Francisco Mine and to preserve the environment. The exchange of experiences between operations helps us identify safer and more efficient operational procedures in the management of cyanide, as well as resource efficiencies and continuous improvement processes.” case study 22 Aura Minerals inc. / 2012 Corporate Responsibility Report Investing in Our people
    • Employee Jussan Rodrigo Pessim de Paula, São Francisco, Brazil In this section Health & Safety Is Everyone’s Responsibility Occupational Safety Performance Health & Safety Training Safety Committees Embedding Health & SAFETY Aura Minerals INc. / 2012 corporate responsibility report 23
    • We believe that work-related injury, accidents and illness are preventable. We commit considerable time and resources to properly train all our employees to plan and execute work in a safe and responsible manner, and to take all actions necessary to promote and achieve our goal of being a zero-accident company. Aura Minerals believes that sound safety and occupational health management practices are in the best interest of all its stakeholders. All of our operations and development projects have management- employee health and safety committees in place (GRI LA6) that monitor and advise on occupational health and safety programs and issues. The San Andres and Aranzazu sites extend this commitment further and have health and safety topics embedded in their formal union agreements. (GRI LA9) Health & Safety is Everyone’s Responsibility Aura Minerals has fostered a corporate culture of trust and commitment to motivate our people to embrace and execute our health and safety strategy. Each and every employee is encouraged to take personal responsibility for these standards and behaviours — at work and at home. We have extensive health and safety standards and objectives and have communicated these targets to our employees with the goal of zero accidents. Aura Minerals currently has a low number of At Aura Minerals, our goal is to build a purpose-driven, high-performance safety culture that achieves and maintains a safe and healthy workplace free of accidents, injury and illness. accidents — but we believe any accidents are unacceptable and preventable. Our measurement, monitoring and communication of our performance are integral steps in increasing awareness and transparency of our progress on the road to zero accidents. The Company’s internal safety campaign on the road to our desired destination: zero accidents. Aura Minerals believes that sound safety and occupational health management practices are in the best interest of its employees, business, shareholders, and the communities in which we operate. Work related injury, accidents or illness are preventable and we will actively encourage our employees to plan and execute their work and take the actions necessary to promote and achieve our goal of being a zero accident company. Accordingly, the Company will: • promote safe and healthy behaviour as a core value in the organization’s culture; • promote and enhance employee commitment and accountability to health and safety; • develop and implement effective management systems to identify, minimize and manage health and safety risks in the workplace; • develop and implement a safety risk-assessment process which focuses on the generic task; • provide the expertise and resources to achieve a safe and healthy work environment for all of our people; • provide training and information to enable all our people to work safely and competently; • comply with applicable regulations, laws and international guidelines; • establish clearly defined safety and occupational health programs and strive for continuous improvement by setting targets and measuring results against those targets; • recognize and reward good safety performance and achievements throughout the organization; and • promote health and safety in all aspects of our work, family and local communities. Aura Minerals’ Occupational Health & Safety Policy Daily safety meeting, Aranzazu, Mexico 24 Aura Minerals inc. / 2012 Corporate Responsibility Report Embedding Health & Safety
    • OCCUPATIONAL SAFETY PERFORMANCE (GRI LA7) We track occupational safety performance for both employees and contractors. In 2012, there were no fatalities or occupational illnesses in our operations. The following chart shows our occupational safety performance: Improving Performance SÃo Francisco, Brazil “There are a number of factors that have contributed to achieving 4 million hours without an accident with lost days in São Francisco: • involvement of all management and leadership; • active participation of management motivating employees; • efforts put into the OHSAS 18001 certification (procedures, training, preparation for emergency response, signaling, etc.); and • safety inspections facilitating interaction with the employees and providing the opportunity to share concerns in terms of health, safety, and environment. The most important aspect is that employees now truly understand that the main objective of the Health, Safety & Environment Management Systems are established by the Company to preserve life and the environment. They are a key part of this system, and it is much better to work in a company that values each employee and that puts health and safety first.” Daily morning safetydialogues,São Francisco, Brazil 2012 Frequency index rate: North American Standards (based on 200,000 hours worked) Aranzazu San Andres São Francisco São Vicente Serrote da Laje Frequency index (Injury rate)(1) 0.65 0.30 0.00 0.31 0.00 Severity index(2) 35.84 9.99 0.00 32.20 0.00 2012 Frequency index rate: Latin American Standards (based on 1,000,000 hours worked) Aranzazu San Andres São Francisco São Vicente Serrote da Laje Frequency index (Injury rate)(1) 3.24 1.51 0.00 1.56 0.00 Severity index(2) 179.20 49.97 0.00 161.00 0.00 (1) Frequency index refers to the frequency of injuries relative to the total time worked by the total workforce multiplied by a factor of 1,000,000 in Latin America and a factor of 200,000 in North America (2) Severity index refers to the total number of lost days relative to the total time worked by the total workforce multiplied by a factor of 1,000,000 in Latin America and a factor of 200,000 in North America Number of Lost Days without Accidents Aranzazu San Andres São Francisco São Vicente Serrote da Laje Number of lost days(1) 442 121 0 206 0 Number of lost time accidents(2) 8 4 0 2 0 (1) Lost days are days where an employee cannot return to work (2) Lost time accident is an injury that generates lost days Data is aggregate for all employees — data by gender was not available at all sites for 2012 Fabiano Martins Health, Safety & Environment Coordinator, São Francisco Mine Regular employee check-ups, San Andres, Honduras case study Ederwan Lino Morais HEALTH & SAFETY TRAINING All of Aura Minerals’ operations have training, counselling and prevention programs in place to further educate our employees, their families, and community members about occupational health concerns and serious diseases. Our operations have programs and campaigns every year. Some of the programs at our sites in 2012 included: • programs to promote general health and safety, work accident prevention (for example Retrocede y Reflexiona — Step Back and Think), and incentives for health and safety reporting (Vale por la Vida — Value of Life) (Honduras); • specialized medical check-ups for conditions potentially affecting health (custom focused to the employees position) (São Francisco/ São Vicente); • implementation of an ergonomics study on the best body positioning according to the role for healthy maintenance of body and recommending adjustments for improvement (São Francisco/ São Vicente); • health education campaigns on: smoking, diabetes, hypertension, vaccines, obesity, drugs and alcohol, STDs/AIDS, birth control methods, and dengue fever; and • Prevention of Accidents Week in São Francisco/ São Vicente and Serrote. Aura Minerals INc. / 2012 corporate responsibility report 25 Embedding Health & Safety
    • EMERGENCY BRIGADE Each of our operations must have an emergency brigade by law. Emergency brigades are composed of a mandatory, minimum number of trained volunteers per shift who can attend to fires or other emergencies at the mine site. Emergency brigades are often called upon to assist in emergency situations in nearby towns or communities as well. SAFETY COMMITTEES (GRI LA6) Every operation has a commission responsible for inspections and improvements. Their mandate is to conduct monthly inspections, identify areas of improvement and outline what changes need to be made or training that should be in force. A total of 79 employees (representing approximately 6% of the total work force) participate in these formal joint management-employee health and safety commissions that help monitor and advise on occupational health and safety issues. São Francisco has an additional safety committee that was created as a result of the implementation of OHSAS 18001. This commission is formed by leadership members and their role is to supervise and evaluate the implementation and compliance of the OHSAS management system, as well as ISO 14001. At all our operations our health and safety efforts are guided by internationally recognized standards, including the International Cyanide “I am looking forward to being involved in the potential implementation process of OHSAS 18001 because I think it will be an incredible learning opportunity and a big step forward for Aranzazu.” Ariel Valenzuela Health, Safety & Environment Supervisor, Aranzazu Mine Emergency brigade team training session, São Francisco, Brazil Management Code, Occupational Health and Safety Management Systems 18000 series and the International Organization for Standardization Environmental ISO 14000 series. (GRI 4.12) Emergency egress from open pit, Aranzazu, Mexico Agne Ahlenius 26 Aura Minerals inc. / 2012 Corporate Responsibility Report Embedding Health & Safety
    • Computer lab donated by the Company, San Andres, Honduras In this section Community Development & Social Investment Stakeholder Engagement – Our Approach Stakeholder Feedback Resettlement Social Mine Closure Indigenous Communities Strengthening Communities Aura Minerals INc. / 2012 corporate responsibility report 27
    • COMMUNITY DEVELOPMENT & SOCIAL INVESTMENT At Aura Minerals, community development must encompass the improvement and broadening of resources and skills of a local community, its organization and its interaction with the outside world. Priority is given to sustainable programs that could conceivably continue beyond mine closure without the Company’s ongoing support, leadership, and financial reinforcement. A community development plan has been implemented at each project site, which provides opportunities for communities with interests in our operations to share in the benefits resulting from our activities, including capacity-building, social investment projects. The types of social investment projects implemented by the Company to date include: • education; • health services; • social infrastructure; • resettlement support (unique empowerment options); • sustainable production initiatives; • poverty alleviation; and • environmental conservation. STAKEHOLDER ENGAGEMENT —  OUR APPROACH (GRI 4.16) Aura Minerals is committed to engagement with stakeholders to identify and understand their perspectives, interests, and key concerns. We practice proactive community consultation between the Company and our stakeholders, which enables an ongoing understanding of impacts, identification of issues, and management of expectations as they relate to our operations at every stage of the mine-life cycle. Aura Minerals has implemented a community engagement policy and plan at each project site, which includes (at minimum) the following components: • community identification and analysis, stakeholder mapping and engagement with key stakeholders to identify and understand their interests and key concerns; • information disclosure in accessible venues and meaningful formats that can be easily understood by local communities; • proactive community consultation ensuring an open dialogue between the Company and its stakeholders; • beyond consultation, a willingness to negotiate and build partnerships to reach mutually accepted outcomes; A key corporate responsibility priority for Aura Minerals is creating lasting relationships with local communities that are built on mutual respect and trust, and to achieve agreed-upon objectives while sharing benefits from projects. • encouraging community participation in the monitoring of social and environmental commitments made by the Company, and retaining external organizations for monitoring where it can enhance assurance and credibility; and • follow-up with the community beyond consultation stage including what risk or mitigation actions will be implemented and how project impacts will be monitored. In 2012, Aura Minerals was active with respect to ongoing engagement with the following stakeholder groups: local communities, government agencies, employees, contractors, institutional and individual investors, academic institutions, and our customers. (GRI 4.14) Amongst other methods, we communicate with stakeholders through regular interaction, open-door conversations, formal presentations, town hall meetings, community liaison officers, and hotlines. (GRI 4.15) We regularly update our stakeholder maps and engagement activities at all project site locations as a reference point for connecting and collaborating with our internal and external stakeholders and we prioritize stakeholder groups primarily through consideration of potential impact, combined with our risk assessment processes. Nearby church, which commemorates the image of the Virgin of Guadalupe on December 12th every year, Aranzazu, Mexico Luis Enrique Ramirez 28 Aura Minerals inc. / 2012 Corporate Responsibility Report Strengthening Communities
    • STAKEHOLDER FEEDBACK (GRI 4.17) It is through ongoing efforts to maintain positive relationships and develop trust that Aura Minerals has learned the most about the needs and concerns of our local communities. Although at different levels of sophistication, we have implemented what each site considers the most appropriate and approachable mechanism to receive and respond to any community complaints, and to ensure that any concerns are responded to in a timely manner. The following charts outline community feedback in 2012 and the actions taken by Aura Minerals to address these concerns. Operation Key impact or issue description actions taken by Aura Minerals ARANZAZU Water The region has suffered severe drought conditions in recent years and water scarcity has become a major issue with the mine and community sharing certain water sources Aura Minerals is working with the municipality to build a wastewater treatment plant to reuse more water and reduce the demand for fresh water from shared sources Cracks in houses Some members in the adjacent community of Bellavista claim that their houses have cracks because of blast vibrations from the mine. The blasting permit was temporarily suspended while the government consulted with Aura Minerals and the community The mine has done the necessary monitoring to ensure detonations are within regulatory limits that would not affect architecture. An independent expert was hired to reduce the impact, noise and material dispersed. As a sign of good faith, Aranzazu repaired cracks in 16 houses and provided construction materials to another 73 houses for minor repairs Airborne dust An issue with air quality (mineral dust readings) at a transfer station location was brought to the Company’s attention Aura Minerals engaged in ongoing dialogue with PROFEPA — the Mexican Environmental Authority — and together designed what they believe to be the most contained and cost- effective solution Repairing damaged homes in Colonia Bellavista, Aranzazu, Mexico It is through ongoing efforts to maintain positive relationships and develop trust that Aura Minerals has learned the most about the needs and concerns of our local communities. Stakeholder Feedback by Operation 2012 Aura Minerals INc. / 2012 corporate responsibility report 29 Strengthening Communities
    • The community of Azacualpa has a population of approximately 1,700, located in close proximity to the concession boundary of the San Andres Mine. Azacualpa is situated in an area designated by COPECO (Comisión Permanente de Contingencias — Permanent Commission for Emergencies) as a high risk area because of the geography and the high possibility of a slide occurring — which has occurred in the past. Although the previous slides were unrelated to mining activity, and the community is not located within our 2013 planned activity area, exploration will commence on an adjacent hillside. There is some concern by the community that there could be risk to safety and buildings in the event of a slide. Through a community survey it was determined that 87% of the local population was in favour of a plan proposed by the San Andres Mine to voluntarily relocate their homes and families away from the perceived risk zone to a new urban area. Through stakeholder engagement and consultation, town hall meetings, roundtable discussions and municipal government negotiations, the community was empowered to make the location decision for new housing based on their own priorities, needs and criteria. In 2012, the San Andres Mine signed an agreement with the community, which will enable them to move forward to purchase the land and commence the construction of the first homes. The San Andres Mine will build approximately 350 new homes over a period of three years in a cooperative effort with the municipal government which will provide water, sewage and electricity services. Community Agreement and Voluntary Relocation San Andres, Honduras – Azacualpa Urbanization Project Operation Key impact or issue description actions taken by Aura Minerals SAN ANDRES Economic and employment dependency on the mine There is concern regarding the level of dependency on the San Andres Mine for employment Aura Minerals is working on economically sustainable development plans such as the coffee cooperative initiative to expand income options for local families Health, education and infrastructure services Dependency on the mine for health, education and infrastructure services. Because of the lack of capacity of the local government to provide for these services the mine has voluntarily filled this gap Aura Minerals is researching partnerships with external organizations as to how to build local capacity and ultimately transition health education and infrastructure responsibility back to the local government level Mine expansion General mine expansion has caused concern about the safety of nearby residents Aura Minerals developed a voluntary relocation program for concerned residents to move should they choose. Ongoing engagement and negotiations throughout 2012 took place with the communities to reach an amicable agreement which was signed in late 2012 A new exploration permit caused concern regarding risk of potential damage to the local cemetery As part of the above agreement, San Andres proposed the relocation of the cemetery to avoid any risks of damage. Relocation will commence in 2013 Site visit to a potential area for the Azacualpa Urbanization Project In Focuscase study 30 Aura Minerals inc. / 2012 Corporate Responsibility Report Strengthening Communities
    • The Programa Mobilizar (Mobile Program) is co-sponsored by the São Vicente and São Francisco mines for their adjacent communities and is the furthest reaching community effort at the Brazilian operations. The goal of the Mobile Program is to create awareness in the community for health, safety, and environment programs and to facilitate access to the many programs offered by the Brazilian Government. This one-day program is set up in a local school in each location with a series of “stations” in different classrooms for community members to receive information and assistance. A large part of the program is focused on health (thorough medical and dental examinations and a variety of health education and disease prevention sessions, and a cooking course to learn to prepare healthy meals on low budgets), and there is also a documentation component, which includes support for legal aspects such as updating citizenship identification, or fishing and work licences. Financial guidance to manage employee retirement payments or plans is also provided. The program also presents environmental education programs and interactive discussions on what the mine does for environmental controls. Participants in the 2012 program: São Vicente – 15,593 São Francisco – 28,395 Community Investment São Francisco and São Vicente, Brazil Operation Key impact or issue description actions taken by Aura Minerals São VICENTE Local job opportunities The mine is the main source of employment for the communities nearby and there is concern about the economic effect upon closure Transition training to further skills in mining or other jobs and assistance for those who wish to transfer to the neighbouring projects of São Francisco or Serrote whenever possible. Severance packages will also be available upon mine closure São FRANCISCO Local job opportunities There is some concern about job loss at mine closure. São Francisco is an important source of employment for the region but not the main one The São Francisco mine has training programs to build capacity for local communities, not only in the areas related to skills useful for the mine, but in skills that can be useful for other jobs Serrote da Laje Resettlement agreement Concern has been expressed regarding the timelines of certain achievements regarding the resettlement process There is a local project management team in place to best meet agreed upon timelines and manage expectations Local hiring There is interest in ensuring job opportunities are provided to local communities closest to the mine site Aura Minerals partnered with a national institution to provide federally sponsored training courses to a large group of people on the skills they will need for upcoming job openings Cooking class in partnership with SENAI, São Francisco, Brazil case study Aura Minerals INc. / 2012 corporate responsibility report 31 Strengthening Communities
    • RESETTLEMENT (GRI MM9) The development of the Serrote da Laje (GRI 2.1) copper-gold project in Brazil involves the resettlement of approximately 260 families residing on approximately 187 properties (GRI 2.1) that are currently within the boundary of the Serrote mine plan. The community of Lagoa da Laje will be fully relocated and certain families on land packages in other nearby communities will be partially relocated. As of April 2013, we have finalized approximately 85% of the property agreements and are in the process of negotiating the remaining 15%, which we hope to have finalized by August of 2013. Aura Minerals purchased five packages of agricultural land for relocation options and there is a credit option available for those families who wish to relocate elsewhere. Much of the resettlement property is agricultural, and Aura Minerals has taken the necessary steps to ensure each and every land owner has the opportunity to receive agricultural land. New property must be used for agriculture and ownership cannot be transferred for 10 years in order to contribute to the sustainable maintenance of the long-term pattern of land use in the region. (GRI 3.0) In addition to the value or land received, resettled families will also receive: • access to water, power, and roads; • preparation of new land to grow crops; • mechanical equipment (agricultural) for each cooperative; • technical assistance for a period of 2 years (agronomist, veterinary care, agricultural technician and social adaptation support); and • access to the school and church (pending location decision). In partnership with the Government of Brazil, a series of professional training sessions will be conducted to ensure the demand for trained personnel for employment at Serrote is satisfied locally to the highest extent possible. Aura Minerals established processes to manage the social impact of the relocation of families in the region and also recognized the importance of a consistent community contact point for the resettlement. Ramon Ruediger is an internationally recognized community engagement specialist and has previous experience with resettlement for resource development projects in Brazil. Ramon and his team were hired in 2012 to assist the Company is reaching a fair agreement with the residents of Serrote, which satisfied both community and Company expectations. Under Ramon’s guidance, consultation with the community (2.2) included meetings with the mayors of the nearby municipalities (Craibas with a population of approximately 22,000 and Arapiraca with a population of approximately 230,000) and two general assembly meetings with the affected communities. One assembly was specifically for Lagoa da Laje with the largest number of affected families (approximately 99) and another with the remainder of the communities (approximately 88 families). The engagement and consultation process was comprised of a total of 8 community meetings with a specific topic addressed in each meeting, including area acquisition, land value assessment, resettlement options (land or credit), documentation, and the negotiation process. In addition to community meetings, personal home visits were conducted by the community relations team to better understand individual family needs, “It is highly important to be fully transparent, honest, and to fulfill the commitments the company makes. It is also crucial to treat people with respect and dignity, to allow them to address their needs from the heart. If trust is broken at any point, the engagement process is damaged and would be very hard to recover.” Ramon Ruediger Consultant, Serrote Resettlement Process Community engagement meetings, Serrote da Laje, Brazil 32 Aura Minerals inc. / 2012 Corporate Responsibility Report Strengthening Communities
    • personally clarify any doubts or questions, and build rapport with each family. The local community was engaged and consulted in the process of preparing the Resettlement Action Plan (RAP). A school and a church are the only two public buildings in the relocation area, both of which will be relocated or rebuilt. Aura Minerals is working with the Ministry of Education to identify the best location for the school and directly with the community to relocate the church. One of the first cultural aspects encountered in the Serrote resettlement process was the relocation of the Santinha (the protective icon representing the little chapel). Religion is highly important to the local communities and ensuring the safe relocation of the Santinha icon is of great importance to the Company. SOCIAL MINE CLOSURE PLANNING (MM10) Mine closure and the departure of mining operations from a region will, unless carefully considered and implemented, have a dramatic economic impact on a community. Our community development program works in partnership with local communities to develop capacity building, social investment projects and training programs in preparation for the social and economic transition of a mine closure. Our aim is to engage often and early, manage community expectations, and develop sustainable opportunities which could conceivably continue beyond mine closure without ongoing support, leadership or financial reinforcement. The São Vicente Mine will cease operations in 2013. The Company is planning and preparing for closure as well as other options which are being evaluated regarding disposition of the plant and ancillary assets. Transition planning for employees was initiated in 2012, and this has been a particularly challenging time, as the mine is faced with balancing the competing priorities of retaining the skills and technical expertise to properly decommission the mine with the long-term interests of its employees. The São Vicente social mine closure plan includes (at a minimum): • motivational programs to stay at the mine until closure — assistance with achieving certifications and incentive bonus structures; • partnership with SENAI (federal agency) to provide training for nearby communities and for current employees to develop additional non-mining skills that can be used elsewhere. SENAI is also providing mining technical training for employees — upgrading certified positions to certificate level; and • career transition support and development —  labour coach to aid the transition or reposition for new employment opportunities. INDIGENOUS COMMUNITIES (MM5) São Francisco is the Company’s only operation that has indigenous peoples’ territories nearby, the Reserva Indígena Sararé and Reserva Indígena Paukalirajausu. The Company established a fund in the amount of $500,000 and signed an agreement with FUNAI (Fundação Nacional do Indio — National Indian Foundation) which decides how to distribute funds over a 10 year amortization (inception 2005). The Company enjoys an excellent relationship with FUNAI, which identifies and develops independent expenditure priorities, and also responds to specific requests from the communities. “As a resident of Lagoa da Laje, my family is a part of the resettlement process. In the new location, the town is closer, the road is better and we will have new facilities like the school and church for the community. Overall, I think we are gaining a lot.” Alexandre Francisco da Silva Community Member and Employee, Serrote da Laje Project Santinha in Caraibas, Brazil Aura Minerals INc. / 2012 corporate responsibility report 33 Strengthening Communities
    • Employee Jose Luis Loredo vegetating slopes for stability control, Aranzazu, Mexico In this section International Best Practices Energy Greenhouse Gas Emissions Water Waste Management Reclamation and Closure Biodiversity Environmental Protection Expenditures Respecting the environment carlos campos 34 Aura Minerals inc. / 2012 Corporate Responsibility Report
    • We fully integrate international environmental standards, best practices and design into all our operations with the aim of reducing our ecological footprint. Our environmental program is focused on environmental protection and compliance. The program consists of our: • Environmental and Sustainability Policy; • environmental policies and procedures; • internal audits; • employee training; and • emergency response and prevention techniques. We work in partnership with federal, state and municipal authorities regarding standards and compliance on an array of environmental matters, including air and water quality, waste, hazardous materials, and mine closure planning. International Best Practices (GRI 4.12) Aura Minerals’ commitment to responsible, sustainable mining includes the application of the precautionary approach (GRI 4.11) as embedded in our Environmental and Sustainability Policy in all stages of the mine-life cycle; from exploration through pre-development, development, production and closure planning. At the operational policy level, Aura Minerals implemented an integrated management system based on OHSAS 18001 and ISO 14001 and the voluntary International Cyanide Management Code (ICMC). In September 2011, we became a signatory of the ICMC and São Francisco achieved ICMC Certification in April 2011. San Andres has completed its internal compliance audit and is aspiring to this certification for 2013. The Cyanide Code does not apply to the Aranzazu Mine or the Serrote Project. Mining activities have direct environmental impacts. Aura Minerals is committed to the mitigation of risk and minimization of impacts, and to the protection of the well-being and sustainability of the environment — now and for future generations. Environmental and Sustainability Policy Our Environmental and Sustainability Policy provides the framework to meet our goals and responsibilities whereby we: • comply with all environmental laws and regulations; • promote and ensure employee commitment and accountability to this policy; • provide management and supervisors at our operations with the resources and authority necessary to ensure best environmental practices are followed; • promote strong environmental and sustainability awareness within our operations and the local communities; • work cooperatively with government and civic leaders, local communities and institutions and our suppliers to promote and achieve safe handling use and disposal of all our material resources and products; and • promote open communication with employees, communities and government on all environmental and sustainability issues at our operations and on our plans, programs and performance. Biodiversity in Brazil “Mining inherently has a social and environmental impact, but Aura Minerals is making the effort and providing the necessary resources to reduce or mitigate as many of the impacts as possible.” MarlenY Reyes Forestry Supervisor, San Andres Mine Aura Minerals INc. / 2012 corporate responsibility report 35 Respecting The environment
    • ENERGY (GRi EN3/EN4) Energy Consumption As part of Aura Minerals’ company-wide risk assessment and optimization strategy, energy consumption is monitored and evaluated on an ongoing basis for its direct effect on operational costs and impact on greenhouse gas emissions (GHG). Our energy consumption is predominantly from diesel, followed by purchased electricity. At present, we are not using as many renewable energy sources as we would like at our operations, however the electricity purchased in Brazil comes predominantly from hydro-electric power, and São Francisco started using ethanol as fuel for its small vehicles in 2012. Energy Reduction Our biggest source of emissions is diesel consumed in varying parts of the mining process. As such, Aura Minerals’ efforts to reduce emissions have been predominantly focused on diesel. At all operations we are making efforts to optimize the logistical aspects of transportation in and out of the mine as well as ensuring maximum capacity loads for trucks on every trip. At São Francisco, we have made considerable improvements in infrastructure, such as standardizing the grade of the ramps, expanding roads to reduce idle times, and where possible transport fleet has been changed to carry heavier loads. At all operations we have an ongoing training program for operators to ensure they are driving vehicles in the most energy efficient way. At San Andres, we use 6 generators for power generation and in 2012 we installed a series of capacitor banks to optimize the use of fuel. The result was a 45% reduction from 0.07 lt of diesel/ kWh to 0.4 lt of diesel/kWh produced. The table below shows our efforts with respect to energy reduction at the San Andres Mine: Diesel Energy consumption generated lt/kWh 2011 1,316,534 18,225,017 0.07 2012 1,532,481 35,735,823 0.04 2012 p Ethanol 0% p Diesel 77% p Diesel S10 4% p Gasoline 0% p LPG 1% p Electricity 17% Celebration of Earth Day, São Fransisco, Brazil At all operations we are making efforts to optimize the logistical aspects of transportation in and out of the mine as well as ensuring maximum capacity loads for trucks on every trip. Direct and Indirect Energy Consumption by Source (GRI EN3/EN4) Our energy consumption is predominantly from diesel, followed by purchased electricity Fabiano Martins Costa 36 Aura Minerals inc. / 2012 Corporate Responsibility Report Respecting The environment
    • Greenhouse Gas Emissions (GRI EN16) To calculate our greenhouse gas emissions we use the World Business Council for Sustainable Development (WBCSD)/World Resources Institute (WRI) Greenhouse Gas Protocol, which is the most widely used international accounting tool to understand, quantify, and manage greenhouse gas emissions. In this Report, we report on Scope 1 (Direct Emissions) and Scope 2 (Indirect Emissions). Direct emissions include energy from renewable and non-renewable sources, process emissions from explosives and fugitive emissions from refrigerants. Indirect emissions include energy consumption from purchased electricity. The greenhouse gas calculations for explosives are based on the Australian National Greenhouse Accounts Factors. Our total emissions for 2012 were 97,753 tCO2e. Carbon Intensity by Product Because diesel (predominantly used in transportation) is our main source of GHG emissions, we chose to measure carbon intensity per tonne of material moved and carbon intensity per tonne of unit produced. This measurement allows us to more accurately see the efficiency in our processes and the significance of our reduction efforts. We chose to measure carbon intensity per tonne of material moved and carbon intensity per tonne of unit produced. This measurement allows us to more accurately see the efficiency in our processes and the significance of our reduction efforts. 2012 p Aranzazu – Mexico 15,014 p San Andres – Honduras 37,222 p São Francisco – Brazil 32,570 p São Vicente – Brazil 12,885 p Serrote de Laje – Brazil 62 Total 97,753 Total GHG Emissions (GRI EN16) (tCO2 e) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2012 p Aranzazu (lb copper) – Mexico 1.37 p San Andres (oz gold) – Honduras 622.95 p São Francisco (oz gold) – Brazil 405.32 p São Vicente (oz gold) – Brazil 388.62 Carbon Intensity per Unit Produced (KgCO2 e/unit produced) 700 600 500 400 300 200 100 0 2012 p Aranzazu – Mexico 17.51 p San Andres – Honduras 5.58 p São Francisco – Brazil 1.73 p São Vicente – Brazil 1.94 Carbon Intensity per Tonne Mined (KgCO2 e/tonne mined) 20 16 12 8 4 0 2012 p Ethanol 0% p Diesel (Fuel oil) 81% p Diesel S10 (Fuel oil) 2% p Gasoline 0% p LPG 1% p Explosives 2% p Refrigerants 1% p Electricity 13% Total Direct and Indirect Greenhouse Gas Emissions by Source (GRI EN16) 81% Direct and indirect GHG emissions are from diesel fuel There really is gold at the end of the rainbow. Ore stacks, San Andres, Honduras Juan Alvardo Aura Minerals INc. / 2012 corporate responsibility report 37 Respecting The environment
    • WATer Mining requires large amounts of water, and water is essential for all communities globally. Our social obligation to respect the environment and the communities where we operate is combined with increasingly important strategic planning and commitment to optimize methods and technologies for the optimal use of freshwater and the recycling of wastewater. Water management and reduction of freshwater needs are a priority to Aura Minerals and in this regard the Company works closely with local water authorities at each site in the design of custom water management programs accommodating the availability, conditions, and concerns of each site. In 2012, our total water withdrawal (GRI EN8) was 2.9 million cubic metres (m3 ), however more than half (1.05 million m3 ) came from rainwater collected and stored at the San Andres Mine in Honduras. The extraction of surface water is regulated by the national authorities and permits are issued taking into consideration the amount expected to be withdrawn will not have significant impact on the water flow or in the surrounding flora and fauna. To minimize impact and consumption from freshwater sources, our operations reuse and recycle as much water as possible. Our gold mines all work under a ‘closed loop’ system, where water is constantly recycled throughout the process. Aura Minerals’ total water discharges in 2012 were 918,00 m3. All discharges go through a neutralization pond or a water treatment plant before being discharged to the environment. Monitoring is highly reinforced at discharging points to ensure the compliance of quality standards. (GRI EN21) Our operation under the most pressure regarding water scarcity is the Aranzazu Mine, as the drought in Mexico in recent years has created stress on water resources. To address this issue, Aura Minerals has proposed, in partnership with Municipal Authorities, the construction of a wastewater treatment plant, which will reduce the amount of freshwater required. The San Andres Mine and the Brazilian Mines are situated in regions with heavy seasonal rain, and as a result, water scarcity is not a substantial concern in these areas. To minimize impact and consumption from freshwater sources, our operations reuse and recycle as much water as possible. In 2012, our total water withdrawal was 2.9 million cubic metres (m3 ). More than half (1.05 million m3 ) came from rainwater collected and stored at the San Andres Mine in Honduras. 2012 p Surface water 1,170 p Ground water 628 p Rainwater collected directly and stored 1,050 p Municipal water supplies or other water utilities 94 2012 p Aranzazu – Mexico 629 p San Andres – Honduras 1,223 p São Francisco – Brazil 737 p São Vicente – Brazil 354 Total Water Withdrawal by Source (GRI EN9) (1,000 m3 /yr) Total Water Withdrawal (GRI EN8) (1,000 m3 /yr) 1,500 1,250 1,000 750 500 250 0 35.7% of total water withdrawal came from rainwater collected directly and stored 38 Aura Minerals inc. / 2012 Corporate Responsibility Report Respecting The environment
    • WASTE MANAGEMENT (MM3) Mining operations generate process waste materials including non-mineralized rocks and overburden to access ore as well as process residues such as sludges or tailings. Through its integrated management system, Aura Minerals takes great care in the design and maintenance of its reservoir and acid rock drainage management and the management of hazardous substances to prevent leakage or threats to the environment. The waste generated is classified in non- hazardous and hazardous waste. Non-hazardous waste includes: • Vegetative cover: is removed and deposited in an organic soil dump for use at a later date for remediation processes or reforestation activities; • Non-mineral containing rock material: is stockpiled and rehabilitated according to mine closure plans; • Non-organic recyclable waste, such as glass, paper, plastic or wood: is recycled where possible; • Non-organic waste: is disposed of at the corresponding landfills; and • Organic waste: where possible, is composted, and where not, is taken to the landfill. Hazardous waste includes: • Burned oil, transmission fluid and lubricants: are in most cases sold to be used as fuel by a third party; • Containers in contact with hazardous substances: are sold to be used as fuel or taken for incineration; • Tailings: Aranzazu is the only operation with tailings and the dam was designed and built to international mining best practice standards and is monitored and inspected regularly to prevent any threats to water quality. No tailings are disposed in or near water supplies; • Sludges: San Andres is the only operation with sludges and they have a lined sludge container, which is restricted to a confined area; • Batteries: are sent back to the supplier; and • Scrap: is sold to a third party and the material will be melted and recycled. RECLAMATION AND CLOSURE (MM1/MM10) Aura Minerals is committed to the rehabilitation and reclamation of land we disturb in the mining process. Environmental stewardship at our sites integrates the mitigation of risks and impacts while pursuing opportunities for conservation and rehabilitation of land and habitats outside our mining concessions or property boundaries affected by our operations. It also includes conservation and remediation efforts on land that is not disturbed by our mining operations. For example, at the date of this Report, 14 hectares outside the San Andres property have been reforested by trees nurtured by its on-site nursery. Amount of Land Disturbed and Rehabilitated (MM1) (ha) 500 400 300 200 100 0 Aranzazu San Andres São Francisco São Vicente 2012 Aranzazu San Andres São Francisco São Vicente Mexico Honduras Brazil Brazil p Total land disturbed and not yet rehabilitated 42 164 460 400 p Total land rehabilitated so far 5 86 73 35 p Total land disturbed in 2012 4 16 61 0 p Total land rehabilitated in 2012 5 6 12 12 Reforestation area, San Andres, Honduras “The extraction of minerals is necessary for our daily lives but needs to be done with great care and responsibility towards the environment. The environmental program at São Vicente reflects the mine’s commitment to this responsibility.” Alexandre Silva de Moraes Biologist, São Vicente Mine Aura Minerals INc. / 2012 corporate responsibility report 39 Respecting The environment
    • All sites have nurseries to collect and nurture native species of plants to be used for reforestation, remediation and compensatory efforts. All of our operations have updated and filed mine closure plans in place, including Serrote, which submitted a conceptual mine closure plan as part of its environmental permit application. Total mine closure obligations (environmental restoration and closing costs) for the Company at the end of 2012 were estimated at approximately $34 million and are expected to be incurred through 2041. Operations will cease at the São Vicente mine in 2013, with decommissioning activities scheduled to commence within the year. (Refer to Strengthening Communities for details regarding the social aspects of the mine closure plan). BIODIVERSITY Aura Minerals makes every effort to protect and preserve ecosystems, biodiversity and affected species. All of our sites have conducted evaluations to identify any critical or endangered flora or fauna. One endangered species was identified in at Serrote: the “aroeira tree” (myacrodruon urundeuva), which readily lends itself to reestablishment under compensation programs and will be integrated into the environmental remediation program at Serrote. Nursery, Plant Species Preservation, and Reforestation San Andres, Honduras The San Andres Mine constructed and maintains a nursery where they can grow 70,000 to 90,000 trees per year. The objective of the nursery is to grow plants that will be used to reforest degraded areas, replenish reclaimed areas, and for donations to establish plantations in neighbouring municipalities as part of an agreement to recover or reforest compensatory areas (outside the San Andres mining concession). A portion of the trees are also donated to schools for use in environmental education campaigns. Additionally, the nursery relocates and preserves orchids and other affected species of flowers during any deforestation process. Before cutting a tree, orchids with roots attached to the tree trunk or branches are carefully removed and re-planted in pots in the nursery for reincorporation into the forest ecosystem once the reclamation process begins. Orchid nursery, San Andres, Honduras No other Aura Minerals project sites contain any at-risk or endangered species of flora or fauna, nor do any other property concessions contain any habitats or species requiring specific protecting or restoring. ENVIRONMENTAL PROTECTION EXPENDITURES (GRI EN30) Aura Minerals makes and measures environmental protection expenditures as part of our commitment to the protection of the health and sustainability of the environment, environmental risk mitigation and prevention programs, and to track performance of its environmental management system. Expenditures are divided into two categories: (i) waste disposal, emissions treatment and remediation costs; and (ii) prevention and environmental management costs. Examples of environmental protection expenditures include monitoring equipment for dust, air, noise and soil analysis, the classification of types of discharges, incineration expenses (oil and other pollutants), storage of hazardous wastes, insurance for environmental liability and, if applicable, clean-up costs. Aura Minerals made approximately $6.12 million in environmental protection expenditures in 2012. “I have been at this site for 15 years and I feel like I have the best job at the mine — being with nature and creating life.” Raimundo Nonato Operations Assistant, São Vicente Mine Nursery, São Vicente, Brazil case study 40 Aura Minerals inc. / 2012 Corporate Responsibility Report Respecting The environment
    • Economic Performance Indicators Economic Performance ECI Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. (Values are expressed in thousands of US dollars) Economic Performance (thousands of USD) 2012 Corporate and Aranzazu San Andres Brazilian Mines Other Segments Total Sales to external customers $ 36,967 $ 84,160 $ 186,285 $ 0 $ 307,412 Cost of production $ 42,046 $ 55,297 $ 169,692 $ 0 $ 267,035 Depletion and amortization $ 7,067 $ 10,511 $ 39,733 $ 0 $ 57,311 Gross profit (loss) $ (12,146) $ 18,352 $ (23,140) $ 0 $ (16,934) Other expenses (income) $ (7,749) $ (3,069) $ (12,124) $ (14,170) $ (37,112) Profit (loss) before income taxes $ (19,895) $ 15,283 $ (35,264) $ (14,170) $ (54,046) Approximate Economic Benefits to Local Communities (thousands of USD) 2012 Corporate and Aranzazu San Andres Brazilian Mines Other Segments Total Employee wages and benefits $ 9,374 $ 13,164 $ 25,057 $ 7,321 $ 54,916 Income taxes $ – $ 6,677 $ – $ – $ 6,677 Payments to providers of capital (finance cost)* $ 1,232 $ – $ – $ – $ 1,232 Payments to government (taxes on sales) $ – $ 2,984 $ 1,893 $ – $ 4,877 Community investment $ 60 $ 2,500 $ 249 $ 0 $ 2,809 Total Production 2012 Gold (oz) Copper (lb) Aranzazu 0 10,980,100 San Andres 59,751 0 São Vicente 33,155 0 São Francisco 80,357 0 Total 173,263 10,980,100 KEY Performance DATA Aura Minerals INc. / 2012 corporate responsibility report 41 Locating The data
    • Market Presence EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Average Percentage of suppliers from nearby communities 6% 16% 1% 5% 70% 20% Percentage of suppliers from nearby states or provinces 41% 4% 11% 12% 30% 20% Percentage of suppliers from the rest of the country 48% 60% 78% 68% 0% 51% Percentage of suppliers from abroad 5% 20% 10% 15% 0% 10% Total 100% 100% 100% 100% 100% 100% ENVIRONMENTAL Performance Indicators Energy EN3 Direct energy consumption by primary energy source 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Total Direct renewable energy sources: Ethanol (l) – vehicle usage 0 0 81,000 87,750 5,800 174,550 Direct non-renewable energy sources: 0 Diesel (Fuel oil-l) 1,615,213 12,238,648 8,957,760 3,509,148 15,500 26,336,269 Diesel S10 (Fuel oil-l) 0 0 1,458,240 0 0 1,458,240 Gasoline (l) 102,824 48,749 8,858 40,854 0 201,286 LPG (tonnes) 0 0 306 9 0 316 Ammonium nitrate (ANFO — tonnes) 999 1,426 3,914 0 0 6,339 Emulsions (tonnes) 130 0 5,397 1,637 0 7,163 EN4 Indirect energy consumption by primary source 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Total Purchased electricity (MWh) 21,475 228 12,364 28,713 114 62,894 Water EN8 Total water withdrawal by source 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Total Total volume of water withdrawn from (m3 ): Surface water 0 81,066 737,250 352,003 N/A 1,170 Ground water 627,933 0 0 0 N/A 628 Rainwater collected directly and stored 0 1,048,276 1,566 N/A 1,050 Municipal water supplies or other water utilities 913 93,473 0 0 N/A 94 Total 629 1,223 737 354 N/A 2,942 42 Aura Minerals inc. / 2012 Corporate Responsibility Report Locating The data
    • Biodiversity MM1 Amount of land (owned or leased, and managed for production activities or extractive use) disturbed or rehabilitated (ha). 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Total Total land disturbed and not yet rehabilitated 16 164 460 400 N/A 1,040 Total land disturbed and rehabilitated so far 5 86 73 35 N/A 199 Total land disturbed in 2012 4 16 61 0 N/A 81 Total amount of land rehabilitated in 2012 5 6 12 12 N/A 35 Emissions, Effluents, and Waste EN16 Total direct and indirect greenhouse gas emissions by weight Direct Emissions – Scope 1 (tCO2e) 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Total Stationary and mobile combustion Direct renewable energy sources: 0 Ethanol 0 0 119 129 9 257 Direct non-renewable energy sources: 0 Diesel (Fuel oil) 4,846 36,716 26,873 10,527 47 79,009 Diesel S10 (Fuel oil) 0 0 1,750 0 0 1,750 Gasoline 206 97 18 82 0 403 LPG 0 0 899 27 0 926 Process emissions (Explosives) Ammonium nitrate (ANFO) 170 242 665 0 0 1,078 Emulsions 22 0 917 278 0 1,218 Fugitive emissions (Refrigerants) Refrigerant R-22 N/A 42 324 N/A N/A 366 Refrigerant R-134a N/A 18 212 N/A N/A 230 Refrigerant R-112 N/A 27 0 N/A N/A 27 Total 5,243 37,143 31,777 11,043 55 85,262 Total direct emissions in tCO2e 85,262 Indirect Emissions – Scope 2 (tCO2e) 2012 Purchased electricity 9,771 79 793 1,841 7 12,491 Total indirect emissions in tCO2e 12,491 Totals per mine 15,014 37,222 32,570 12,885 62 97,753 Total emissions (tCO2e) 97,753 Aura Minerals INc. / 2012 corporate responsibility report 43 Locating The data
    • Emissions, Effluents, and Waste (cont.) MM3 Total amounts of overburden, rock, tailings, and sludges and their associated risks (kt) 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Total Overburden, rocks 865 2,293 12,534 3,814 N/A 19,507 Tailings 753 0 0 0 N/A 753 Sludges* 0 0 0 0 N/A 0 * San Andres does produce 59 tonnes of sludges but it is not represented here as we are showing (kt). EN21 Total water discharge by quality and destination (m3 /yr) 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Total Volume of planned and unplanned water discharges in cubic meters per year by: Surface water 0 0 751,149 44,868 N/A 796,017 Ocean 0 0 0 0 N/A 0 Ground water 0 0 0 0 N/A 0 Water treatment plant 0 93,473 28,032 715 N/A 122,220 Total 0 93 779 46 N/A 918,237 Percentage water treated 13% Overall EN30 Total environmental protection expenditures and investments by type (thousands of USD) 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Total Total expenses related to the environmental area 1,154 1,025 1,262 314 N/A 3,755 Expenses related to waste disposal, emissions treatment, and remediation 203 53 761 151 N/A 1,168 Expenses related to prevention and environmental management 398 249 501 55 N/A 1,203 44 Aura Minerals inc. / 2012 Corporate Responsibility Report Locating The data
    • LABOUR PRACTICES AND DECENT WORK Performance INDICATORS Employment LA1 Total workforce by employment type, employment contract, and region 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Brazilian Office Corporate Office Total Men Women Men Women Men Women Men Women Men Women Men Women Men Women Men Women Total number of employees 474 76 303 55 272 31 272 19 31 7 5 7 11 5 1,368 200 Total number of employees by contract type: Permanent contract 425 64 303 55 272 31 272 19 31 7 5 7 11 5 1,319 188 Temporary contract 49 12 70 119 12 Total number of employees by type of job: Employees 429 70 250 49 244 31 260 18 28 6 1 5 1 3 1,213 182 Supervisors 38 6 45 6 15 0 8 1 0 1 2 2 2 2 110 18 Executives 7 0 8 0 13 0 4 0 3 0 2 0 8 45 0 Contractors 181 43 396 0 480 111 0 0 0 0 0 0 1,057 154 Total 655 119 699 55 752 142 272 19 31 7 5 7 11 5 2,425 354 Total number of employees by geographic representation: Honduras 0 0 292 55 0 0 0 0 0 0 0 0 0 0 292 55 Brazil 0 0 1 0 272 31 272 19 31 7 4 7 0 0 580 64 Mexico 472 76 0 0 0 0 0 0 0 0 0 0 0 0 472 76 Canada 0 0 0 0 0 0 0 0 0 0 0 0 9 5 9 5 Non-Nationals 2 0 10 0 0 0 0 0 0 0 1 0 2 0 15 0 Labour/Management Relationships LA4 Percentage of employees covered by collective bargaining agreements 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Total Total number of employees covered by collective bargaining agreements 438 290 303 291 0 1,322 Percentage of total employees covered by collective bargaining agreements 79.64% 81.01% 100.00% 100.00% 0.00% 84% Aura Minerals INc. / 2012 corporate responsibility report 45 Locating The data
    • Occupational Health and Safety LA6 Percentage of total workforce represented in formal joint management employee health and safety committees that help monitor and advise on occupational health and safety programs 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Total Number of employees that participate in health and safety committees 8 16 22 28 5 79 Percentage of employees represented in health and safety committees 1.45% 4.47% 7.26% 9.62% 13.16% 5.13% Number of formal committees in place 1 1 2 2 1 7 LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Number of lost days 477 121 0 206 0 Number of absentee days 3,533 1,680 3,36 1,051 40 Number of accidents 8 4 0 2 0 Number of occupational diseases 0 0 0 0 0 Number of deaths 0 0 0 0 0 Frequency index rate: North American Standards (based on 200,000 hours worked) 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Frequency index (Injury rate)(1) 0.65 0.30 0.00 0.31 0.00 Severity index(2) 35.84 9.99 0.00 32.20 0.00 F requency index rate: Latin American Standards (based on 1,000,000 hours worked) 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Frequency index (Injury rate)(1) 3.24 1.51 0.00 1.56 0.00 Severity index(2) 179.20 49.97 0.00 161.00 0.00 (1) Frequency index refers to the frequency of injuries relative to the total time worked by the total workforce multiplied by a factor of 1,000,000 in Latin America and a factor of 200,000 in North America (2) Severity index refers to the total number of lost days relative to the total time worked by the total workforce multiplied by a factor of 1,000,000 in Latin America and a factor of 200,000 in North America 46 Aura Minerals inc. / 2012 Corporate Responsibility Report Locating The data
    • Training LA10 Average hours of training per year per employee by employee category 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Total Men Women Men & Women Men Women Men Women Men Women Men & Women Employees 4,200 680 4,138 7,316 1,478 8,270 387 417 85 0 Supervisors 300 0 520 2,563 0 397 2 0 0 0 Executives 40 0 47 165 0 180 0 0 0 0 Contractors 0 0 4,099 9,102 879 5,568 538 62 0 0 Total 4,540 680 8,804 19,146 2,357 14,415 927 479 85 51,433 Men Women Men & Women Men Women Men Women Men Women Men & Women Average per gender 9.58 8.95 N/A 70.39 76.03 53.00 48.79 15.45 12.14 N/A Average total 8.25 24.59 70.97 52.72 14.84 34.28 SOCIETY PERFORMANCE INDICATORS Closure Planning MM10 Number and percentage of operations with closure plans 2012 Aranzazu San Andres São Francisco São Vicente Serrote da Laje Total Number of company operations that have closure plans updated and approved 1 1 1 1 1 5 Aura Minerals INc. / 2012 corporate responsibility report 47 Locating The data
    • GRI CONTENT Index CR = Corporate Responsibility Report AIF = Annual Information Form WEB = Corporate Website Indicator Description Location Strategy and Analysis 1.1 Statement of the most senior decision-maker of the organization about the relevance of sustainability to the organization and its strategy CR Message from the President & CEO: Pages 6–7 1.2 Description of key impacts, risks and opportunities AIF Pages 68–74 Organizational Profile 2.1 Name of the organization CR About Aura Minerals: Pages 4–5 2.2 Primary brands, products and/or services CR About Aura Minerals: Pages 4–5 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures CR AIF About Aura Minerals: Pages 4–5 Pages 2–3 2.4 Location of organization’s headquarters CR About Aura Minerals: Pages 4–5 2.5 Number of countries where the organization operates and names of countries either with major operations or that are specifically relevant to the sustainability issues covered in the report CR WEB About Aura Minerals: Pages 4–5 www.auraminerals.com/Operations/Operations-Overview 2.6 Nature of ownership and legal form AIF Pages 2–3 2.7 Market served (including geographic breakdown, sectors served and types of customers/beneficiaries) CR AIF About Aura Minerals: Pages 4–5 Page 5 2.8 Scale of the reporting organization (includes data on employees) CR AIF Investing in Our People: Page 21 Pages 3–4 2.9 Significant changes during the reporting period regarding size, structure and ownership There were no significant changes in size, structure or ownership during the reporting period 2.10 Awards received in the reporting period CR Operational Highlights — São Francisco: Page 11 Report Parameters 3.1 Reporting period for information provided CR About this Report: Page 2 3.2 Date of most recent previous report, if any CR About this Report: Page 2 3.3 Reporting cycle CR About this Report: Page 2 3.4 Contact point for questions regarding the report or its contents CR About this Report: Page 2 Inside Back Cover 48 Aura Minerals inc. / 2012 Corporate Responsibility Report Locating The data
    • 3.5 Process for defining report content including determining materiality, prioritizing topics within the report and identification of stakeholders the organization expects to use the report CR About this Report: Pages 2–3 3.6 Boundary of the report CR About this Report: Page 2 3.7 Limitations on the scope or boundary of the report CR About this Report: Page 2 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other factors that can significantly affect comparability between periods and/or between organizations CR About this Report: Page 2 3.9 Data measurement techniques and bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of indicators and other information in the report Data for indicators was collected and compiled for each site through interviews and/or the submission of a standard template. Instructions and template criteria followed the GRI data measurement parameters and model 3.10 Explanation of the effect of any re-statements or information provided in earlier reports and the reason for such re-statements As this is our first external report, there is no previous report nor are there any re-statements 3.13 Policy and current practice with regard to seeking external assurance for the report As this is our first external report, there is no previous reporting period 3.12 GRI Content Index CR GRI Content Index: Pages 45–52 3.13 Policy and current practice with regard to seeking external assurance for the report CR About this Report: Page 2 Governance Commitments and Engagement 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight CR Integrating Governance: Pages 14–15 4.2 Indication whether chair of the highest governance body is also an executive officer The Chair is not an executive officer 4.3 Number and gender of members of the highest governing body that are independent and/or non- executive members CR AIF Integrating Governance: Page 14 Pages 65–66 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body CR Integrating Governance: Pages 15–16 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executive and the organizations performance (including social and environmental performance) CR Integrating Governance: Page 15 Code of Ethics 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided CR Integrating Governance: Page 15 4.7 Process for determining the composition, qualifications and expertise of the members of the highest governing body and its committees, including any consideration of gender and other indicators of diversity CR Integrating Governance: Page 14 4.8 Internally developed statements of mission, values, codes of conduct and principles relevant to economic, environmental and social performance and status of their implementation CR Vision and Mission, Environmental Policy, Community Engagement & Development Policy, Code of Business Conduct & Ethics: Page 14 4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct and principles CR Integrating Governance: Pages 15–16 4.10 Process for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental and social performance CR Integrating Governance: Page 14 Aura Minerals INc. / 2012 corporate responsibility report 49 Locating The data
    • 4.11 Explanation of whether and how the precautionary approach is addressed by the organization CR Environmental Policy: Page 35 4.12 Externally developed economic, environmental and social charters, principles or other initiatives to which the organization subscribes or endorses CR Respecting our Environment: Page 35 Embedding Health & Safety: Page 26 4.13 Memberships in associations and/or national/international advocacy organizations CR Integrating Governance: Page 16 4.14 List of stakeholder groups engaged by the organization CR About this Report: Page 2 4.15 Basis for identification and selection of stakeholders with whom to engage CR Strengthening Communities: Page 28 4.16 Approaches to stakeholder engagement, including frequency of engagement by type by stakeholder group CR Strengthening Communities: Page 28 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting CR Strengthening Communities: Pages 29–30 Economic Indicators Disclosure of Management Approach Management Approach Including: • Goals and performance, policy, organizational responsibility • Additional contextual information CR Creating Economic Value: Page 18 Aspect Economic Performance EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments CR Creating Economic Value: Page 18 Aspect Market Presence EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation CR Creating Economic Value: Page 19 Environmental Indicators Disclosure of Management Approach Management Approach Including: • Goals and performance, policy, organizational responsibility • Additional contextual information CR Respecting the Environment: Page 35 Aspect Energy EN3 Direct energy consumption by primary energy source CR Respecting the Environment: Page 36 EN4 Indirect energy consumption by primary source CR Respecting the Environment: Page 36 Aspect Water EN8 Total water withdrawal by source CR Respecting the Environment: Page 38 EN9 Water sources significantly affected by withdrawal of water CR Respecting the Environment: Page 38 Aspect Biodiversity MM1 Amount of land (owned or leased, and managed for production activities or extractive use) disturbed or rehabilitated CR Respecting the Environment: Page 39 50 Aura Minerals inc. / 2012 Corporate Responsibility Report Locating The data
    • Aspect Emissions, Effluents & Waste EN16 Total direct and indirect greenhouse gas emissions by weight CR Respecting the Environment: Page 37 EN21 Total water discharge by quality and destination CR Respecting the Environment: Page 38 MM3 Total amounts of overburden, rock, tailings, sludges and their associated risk CR Respecting the Environment: Page 39 EN23 Total number and volume of significant spills None Aspect Overall EN30 Total environmental protection expenditures and investments by type CR Respecting the Environment: Page 40 Labour Practices and Decent Work Indicators Disclosure of Management Approach Management Approach Including: • Goals and performance, policy, organizational responsibility • Additional contextual information CR Investing In Our People: Pages 21–22 Aspect Employment LA1 Total workforce by employment type, employment contract and region by gender CR Investing In Our People: Page 21 Aspect Labour/Management Relations LA4 Percentage of employees covered by collective bargaining agreements CR Investing In Our People: Page 22 Aspect Occupational Health & Safety LA6 Percentage of total workforce represented in formal joint management–employee health and safety committees that help monitor and advise on occupational health and safety programs CR Embedding Health & Safety: Pages 24–26 LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region and by gender CR Embedding Health & Safety: Page 25 Aspect Training & Education LA10 Average hours of training per year per employee by employee category CR Investing In Our People: Page 21 Human Rights Indicators Disclosure of Management Approach Management Approach Including: • Goals and performance, policy, organizational responsibility • Additional contextual information CR Integrating Governance: Page 14–16 Aspect Non-Discrimination HR4 Total number of incidents of discrimination and actions taken CR Integrating Governance: Page 16 Aspect Child Labour HR6 Operations and significant suppliers identified as having significant risk for incidents of child labour, and measures taken to contribute to the effective abolition/elimination of child labour CR Integrating Governance: Page 16 Aspect Indigenous Rights MM5 Total number of operations taking place in or adjacent to Indigenous Peoples’ territories, and number and percentage of operations or sites where there are formal agreements with Indigenous Peoples’ communities CR Strengthening Communities: Page 33 Aura Minerals INc. / 2012 corporate responsibility report 51 Locating The data
    • Society Indicators Disclosure of Management Approach Management Approach Including: • Goals and performance, policy, organizational responsibility • Additional contextual information CR Strengthening Communities: Page 28 Aspect Local Community SO1 Nature, scope and effectiveness of any programs and practices that assess and manage the impacts of operations on communities including entering, operating and exiting CR Strengthening Communities: Page 28, 32–33 MM9 Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process CR Strengthening Communities: Pages 32–33 MM10 Number and percentage of operations with closure plans CR Strengthening Communities: Page 33 Respecting the Environment: Pages 39–40 Product Responsibility Indicators Disclosure of Management Approach Management Approach Including: • Goals and performance, policy, organizational responsibility • Additional contextual information Aura Minerals’ products do not present health or safety risks to our consumers. Typical product labeling, marketing, customer privacy and product use requirements do not apply to our products Aspect Customer Health & Safety PR1 Life cycle stages in which health and safety impacts and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures Aura Minerals’ products do not present health or safety risks to our consumers. Typical product labeling, marketing, customer privacy and product use requirements do not apply to our products 52 Aura Minerals inc. / 2012 Corporate Responsibility Report Locating The data
    • We Welcome your feedback Credits Data Collection and Content Development: Michelle Hohn & Edna Aguiñaga Design: Craib Design & Communications Selected Photography: Mário Friedlander pages 11, 23, cover (various) Rodan Photography pages 17, 25, 27, 39, cover (various) Please contact: Gonzalo Rios VP Corporate Responsibility grios@auraminerals.com Aura Minerals Inc. 155 University Avenue, Suite 1240 Toronto, Ontario, Canada M5H 3B7 Tel: (416) 649-1033 Fax: (416) 649-1044 www.auraminerals.com
    • www.auraminerals.com Responsible sustainable growth Aura Minerals’ mission is to continually develop and expand our mineral resource base and mining portfolio in a manner that provides maximum returns to our shareholders by: • Operating in a transparent and ethical manner; • Ensuring a safe, productive and healthy work environment for all our employees and contractors; • Complying with the laws of all countries in which we operate; • Maintaining strong and respectful community relationships and promoting the health, education and welfare of local communities; and • Continuing to locate, acquire and develop quality reserves in safe and stable jurisdictions.