The mining industry operates in a complex and demanding legal and regulatory environment under cyclical market conditions. Moreover, mining operations are often located in emerging and/or politically unstable countries, which can be prone to levels of economic and regulatory uncertainty. Such circumstances can create conditions for corruption in the form of bribery, collusion, influence peddling, and the like. Corruption can affect host communities by redirecting funds that could otherwise support social services or local infrastructure development. This concern is driving industry initiatives to increase transparency on payments made to governments. Globally, the industry is also experiencing increased pressure from the public, governments, and other stakeholders to address not only its own impacts, but to identify and manage those risks stemming from its supply chain, including those related to corruption, human rights abuses, or negative impacts on the environment.
As a Canadian company listed on the TSX and NASDAQ stock exchanges, Pan American Silver must comply with securities regulations and exchange rules as well as requirements designed to protect investors and the integrity of financial markets. We must also adhere to applicable legislation in the jurisdictions where we operate. Because we operate predominately in Latin America, where political and economic conditions can be complex and challenging, it is imperative that we conduct our activities ethically, transparently, and apply industry best practices across all our operations. In addition, we choose suppliers that also adhere to ethical business practices. These practices are fundamental to managing risk, building trust with our communities of interest, and maintaining social acceptance.