Primero csr 2010 final

SUSTAINABILITY REPORT 2010

TRANSPARENCY

INTEGRITY

ACCOUNTABILITY

We are committed to embedding corporate responsibility into our

daily activities and to holding ourselves to the highest standards

of TRANSPARENCY, INTEGRITY and ACCOUNTABILITY. Our goal is to

continuously improve workplace health and safety, as well as our

environmental performance, and to share the benefits of mining with

our local communities.

TRANSPARENCY INTEGRITY ACCOUNTABILITY

01Sustainability Report 2010

We are proud of our 100% national workforce at San Dimas, proof of our

commitment to hiring locally. Our workforce is young – with 40% of our

employees under the age of 30 – representing both the present and the

future of our organization.

In 2010, San Dimas maintained a full-time workforce of 1088, including contractors. The workforce is comprised of

586 employees and labor union workers, and 502 contractors carrying out surface as well as underground activities.

Pioneering gender equality, the ‘Miner Women’ project at San Dimas aims to employ more female workers in all

areas of the operation. Of the eighty-one women employed at the mine, nine are engaged in underground activities.

Our People | Our Future



Supporting Diversity

Female81

Youth432

Other575

National Workforce

Zacatecas4%

Guanajuato2%

Other7%

Sinaloa9%

Durango78%

We are proud of our 100% national workforce at

San Dimas, proof of our commitment to hiring locally.



Health & Safety

Safety is more than a policy at Primero;

it is core to our culture.

• In 2010, there were seven lost time accidents at Sim Dimas -

a remarkably low ratio to the over two million man hours of

exposure that year.

• 1.6 million hours with no lost time injuries

• Over 6,000 safety talks were delivered

• In September 2010 San Dimas was a finalist in the Mexican

Mining Chamber’s National Mine Safety Contest

Primero is committed to delivering an

illness-free & injury-free workplace.

San Dimas achieved another outstanding safety performance

in 2010, reducing the all-accident injury index for the fifth

consecutive year.

Our safety program focusses on 4 key areas

1. Best Practices in underground mining

2. Training

3. Government Compliance

4. Monthly Campaigns

BestPractices

GovernmentCompliance

BehaviourTraining

MonthlyCampaigns

SafetySystem

0

20

40

60

80

100

120

140

All Incidents

2005 2006 2007 2008 2009 2010 2011



San Dimas’s emergency response teams achieved first place in the First

Aid and self-contained breathing machine tests at the 2010 National

Mining Rescue Contest organized by the Mexican mining chamber.

EMERGENCY PREPAREDNESS

Specialized safety courses conducted on-site focus on required job skills, safety and emergency response. Primero

has trained and qualified emergency response personnel in case of accidents who are well equipped to deal with

emergencies in both surface and underground situations. The team works closely with the government authorities

to provide assistance to local communities when needed.

OCCUPATIONAL HEALTH & WELLNESS

The occupational health of workers is monitored through preventive programs and regular medical examinations.

In 2010, a variety of responsive treatments were offered - from vaccinations against influenza, tetanus and HPV,

to advice on nutrition and family planning.



Our Environment

Primero strives to be a responsible steward of the environment and to

continually reduce our overall environmental footprint. To achieve this, we

remain focused on minimizing the environmental impact of our operations

and to progressively rehabilitating areas impacted by our mining activities.

4 Certified ‘Clean Industry’ by the Procuraduria Federal de Proteccion

al Ambiente (Mexican EPA)

4 Bioremediation work carried out on 300 tons of soil

4 62% of the water supply used in the processing plant recirculates

into the system



MATERIAL AND WASTE MANAGEMENT

In 2010 expenditures at the mine focused on capital improvement programs which included a new state of the

art dry tailings plant. Approximately $1.5 million was spent installing a third tailings filter. The full project, which is

expected to cost @2.3 million, was 65% complete at December 31, 2010.

Waste rock impoundment engineering work was completed in 2010.

WATER MANAGEMENT

Water for the mining operations is obtained from wells and from the Piaxtla River. Water is also supplied to the

town of Tayoltita from an underground thermal spring at the Santa Rita mine. Water is recycled several times at the

operations, with 62% of the water used in the processing plant recirculated into the system.

“RESCUE THE PIAXTLA RIVER” CLEAN-UP CAMPAIGN

San Dimas holds annual clean-up campaigns along the Piaxtla River and within the Tayoltita community to coincide with

global milestones such as World Earth Day and World Environment Day, held on April 22 and June 5, respectively.

RENEWABLE ENERGY

In December 2010, Las Truchas Hydroelectric Plant, owned and managed by Primero, was connected to the Federal Power

Commission’s supply system. This 34 kVA power line from Las Truchas Dam, 42 km north of the San Dimas Mine, has

expanded the available power from 1.4 MW to 7.0 MW and reduced power costs from 11 cents/kWj to 1.5 cents/kWh.



Community

We actively engage with our local communities in order to understand and

contribute to their economic, social and development priorities. Primero

supports innovative community initiatives at San Dimas, generating new

jobs, incomes, technical skills and local capacity.

• Primero partnered with the Ministry of Social Development (SEDESOL) to launch a child daycare program.

• 227 local students at San Dimas attending school as a result of Primero scholarships

• 40 women received skills development training on handicraft production in partnership with the Ministry of

Environment and Natural Resources (SEMARNAT)

PROMOTING EDUCATION

The Company supports various educational institutions attended by employees and their children.

The Company has partnered with the Municipality of San Dimas, to support the Duranguense Institute in Adult

Education (IDEA) provide better education to the community of Tayoltita.

In collaboration with the National Association of Professional Technical Education (CONALEP), Primero provides

training programs to update employees’ skills. In 2010 the company sponsored 47 high-school graduates interested

in pursuing a career in mining.



ENCOURAGING YOUTH

The Center for Juvenile Integration at San Dimas provides advice on public health issues and addiction awareness

programs.

In 2010, talks on prevention addiction were taught in local schools and a variety of cultural, sporting and social

events were held.

SUPPORTING LOCAL ECOMONIC DEVELOPMENT

By encouraging the development of alternate sources of income, we support strategic local business initiatives that

strengthen local supply chains and increase entrepreneurial opportunities.

EMPOWERING WOMEN

In October 2010, Primero partnered with the Ministry of Environment and Natural Resources (Secretaría de

Medio Ambiente y Recursos Naturales) to deliver skills development training to 40 women entrepreneurs to create

eco-friendly handicrafts using recycled plastic bottles and bags.

CONTACT US

Eduardo Luna

Executive Vice President

[email protected]

Martin Aguilar

Mine General Manager

[email protected]

Marco Navarro

Safety Superintendent of the Mine

[email protected]

TRANSPARENCY

INTEGRITY

ACCOUNTABILITY

Health & Medicine

Primero csr 2010 final