Huaron
Environmental

The Huaron Mine has operated for over 85 years, and significant historic environmental disturbances pre-dated Pan American's ownership. Studies have been designed and recommendations from these studies have been partially carried out to establish and implement closure strategies and options for remediation of historic disturbances. Remediation is ongoing during mine operations. Field investigations defined water sources and flows to establish accurate base line conditions and separate flows from the adjacent, but separately owned Chungar mine. Community meetings are held to improve communication and to initiate awareness training about environmental, health and safety issues. In 2005, the Huayllay Tailings Project has been completed, after more than three years of remediation work. The project included the diversion of fresh water, the completion of drainage channels, the placement of an impermeable cover over the tailings to prevent leaching, followed by the placement of topsoi and revegetation with native flora. Ongoing water management strategies are in place to reduce the amount of underground mine water discharge, which will reduce water treatment requirements.

Safety


Accident Statistics        
  2002 2003 2004 2005 ytd
Lost Time Accidents 44 36 73 25
Frequency Index 18 12.9 21.3 7.7
Severity Index 3,253 623.7 7,715 2,275
 
Lost Time Accident: accident in which a worker is unable to return to normal work duties for more than 1 day.
Frequency Index: [Number of Lost Time Accidents X 1,000,000]/man-hours worked per month.
Severity Index: [Total days lost X 1,000,000]/man-hours worked per month.


Quiruvilca
Environmental

The Quiruvilca mine has operated continuously since 1925 and significant historic environmental disturbance occurred prior to Pan American's ownership. Pan American Silver is very proud of its environmental record at Quiruvilca and has received awards for its rehabilitation of historic tailings deposit at Almirvilca and its integrated rehabilitation of the Rio Moche, which drains the minesite. The Rio Moche remediation project will be fully completed by the end of 2005.

The mine currently uses active and passive water treatment systems to remediate water from the underground and surface impoundments. Active treatment includes a water treatment plant, while low-technology passive treatment systems are used for remediating small-scale acid flows. As Peruvian recycling facilities expand, mine site recycling programs have been expanded. The program of good housekeeping awards has promoted gardens and greening of many areas.

Studies are currently underway to provide final closure strategies.

Safety

Accident Statistics        
  2002 2003 2004 2005 ytd
Lost Time Accidents 72 44 37 19
Frequency Index 20.2 13.9 14.6 8.1
Severity Index 5,334 6,497 3,256 5,634

Community

Company social workers now team with social workers provided by mine contractors to improve and expand delivery of programs relating to nutrition, practical health and basic household budgeting. In addition, education programs on general safety awareness and drug and alcohol abuse has expanded to cover the local communities in addition to mine workers. The new hospital, completed by Pan American in the fall of 2001, serves the entire community surrounding the mine, rather than just the mine workers.

Morococha
Environment

Morococha was mined by the Incas and the Spanish and has been in continuous production since the 1800s. Throughout much of the 20th century, large portions of the Morococha property were operated by the government-owned mining company, CENTROMIN. In 1934 a drainage tunnel called the Kingsmill Tunnel was completed to allow for deeper mining. Today, the Ministry of Mines holds responsibility for the old CENTROMIN portions of the property. Construction of a water treatment plant for the Kingsmill Tunnel discharge is awaiting resolution of some government issues.

In 2004, Pan American Silver purchased the Morococha mine and immediately set out to improve the health, safety and environmental programs at the operation. The Company is also working to increase its involvement with the local community to improve local conditions.

Safety

Accident Statistics*        
  2004 2005 ytd    
Lost Time Accidents 13 21    
Frequency Index 11 5.85    
Severity Index 15,561 1,942    

*The mine was acquired in August 2004. Safety statistics for 2004 were computed as of September 2004.

Silver Stockpiles
Safety

This is a transport operation and has no Pan American employees.

San Vicente
Environment

Pan American Silver, Bolivia (PASB) strives to comply with all environmental regulations in Bolivia and is conducting the following studies:

  • Ficha Ambiental (Environmental Card)
  • Environmental Impact Study for both Exploration and Operations (EEIA)
  • Baseline Environmental Studies for San Vicente and Vetillas (ALBA)
  • Environmental Impact Study for Mineral Processing at San Vicente and Vetillas (EEIA)

PASB maintains ongoing relationships with 11nearby communities. Due to the harsh climate and high altitude of the operation PASB will implement a forestation program. In 2006 PASB will construct a tailings dam using the best environmental technology.

Safety

Accident Statistics*        
  2005 ytd      
Lost Time Accidents 2      
Frequency Index 9.3      
Severity Index 23.2      

*This mine was previously operated by a contractor. Pan American took over as operator in June 2005. Safety statistics are from July 2005.

La Colorada
Safety

Accident Statistics*        
  2002 2003 2004 2005 ytd
Lost Time Accidents 12 31 16 1
Frequency Index 24.6 34.1 14.35 0.88
Severity Index 2.31 1.94 2.84 5,284
*In 2004 the mining rate was expanded from 200 tonnes per day to 600 tonnes per day.

Alamo Dorado
Safety

Accident Statistics*        
  2005 ytd      
Lost Time Accidents 0      
Frequency Index 0      
Severity Index 0      


   
   
 
   
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