WASTE AND
RECYCLED BY PRODUCTS

Tailings aerial view, Capela unit
Tailings aerial view, Capela unit
Conditioning of tailings dam at Sabinas unit
Consumption of raw materials, supplies and inputs (renewable and non-renewable)
Materials

Orign:
Intern /
Extern

Source:
R / NR

2019

2020

Unit

Raw materials * I NR

10,474,260.31

7,743,790.68

t
Raw materials I NR

4,715,712.71

4,939,064.64

m3
Raw materials I R

154,840.00

174,340.00

m3
Raw materials I R

15,290.88

23,895.00

t
Semi-manufactured materials E NR

183,028.71

399,088.58

t
Semi-manufactured materials E NR

0.52

286.21

m3
Semi-manufactured materials E R

82,335,748.61

81,902,906.46

m3
Associated materials * E NR

8,545.43

15,290.96

m3
Associated materials * E NR

1,013,828.36

301,726.18

t
Associated materials E NR

1,335,066.00

938,898.83

m
Associated materials E NR

8,734,624.00

4,299,970.00

pzas
Associated materials E R

8,930.83

9,122.67

t
Empaques E NR

22.33

8.47

t
Empaques E R

327.31

247.44

t

* These amounts were modified due to a double-counting correction in the semi-manufactured and associated internal materials, and were therefore eliminated from the table reported in the previous year.
Also in the case of the data reported in 2019 for Raw Materials and External Associates, corrections were made due to the reclassification of some materials.

301-1
The processes we operate and the products we make require various raw materials and inputs, most of which are non-renewable (metallic ores). This is the nature of our business, and it corresponds to the needs of global society. With this in mind we try to optimize our use of these resources.

103-1, 103-2, 103-3, 306-1
Peñoles handles and disposes of its waste appropriately, and continually works to reduce and recycle it. We have introduced risk management policies that deal with the safety of our tailings dams, and to manage our supply, transport, use and elimination of chemical products and byproducts from mining and metal processing, reducing the associated risks.

306-4, G4-MM3
Most of the waste we generate is in the form of mineral impurities that we extract: the tailings produced by the concentration of metal ores; grease from furnaces, sludge and jarosite from our metallurgical processes; and dolomite powder, quicklime, lime ash and gypsum from chemical processes. All of this waste is handled as directed by applicable regulations and authorized handling plans.

As a first option, Peñoles looks for internal alternatives where the waste can be put to use; when these are not available, it looks for external recycling options. Materials that cannot be used are confined safely and in a controlled manner.

Monetized materials by generation

2018

2019

2020

Materials recycled internally

t

%

t

%

t

%

Scrap

33.34

100.00

18.62

100.00

8.75

100.00

Tailings

849,532.58

11.06

1,279,654.93

15.17

2,223,377.56

25.38

Wood

77.75

10.63

80.50

0.88

98.43

22.60

Total

849,643.67

1,279,754.05

2,223,484.74

Waste recycled by outside facilities

t

%

t

%

t

%

Used oils

589.68

97.52

624.77

98.32

429.81

98.06

Batteries

74.88

93.44

29.67

84.66

22.06

68.33

Cardboard and paper

29.75

100.00

41.77

98.12

62.24

98.79

Scrap

5429.5

100.00

4017.7

100.00

3263.76

100

Materials impregnanted with
hydrocarbons

191.45

50.58

212.11

57.77

105.05

33.62

Contaminated rubble
(refractory brick)

2685.423

98.27

0

0.00

0.00

0

Wood

139.89

19.10

8714.02

95.32

166.14

36.64

PET

134

92.41

62.52

99.69

41.76

99.53

Used tires

22.02

59.59

52.57

50.82

73.29

94.16

Materials with paint

3.1

23.44

1.89

9.84

1.98

3.86

Electronic waste

12.6

97.83

26.24

91.65

18.57

89.84

Miscellaneous

8.73

100.00

0.09

100.00

5.04

80.25

Total

9,321.02

13,783.35

4,189.70

EM-MM-150a.1
In 2020, the Mines Division generated 6.27 million metric tons of tailings; metal processing generated 1.12 million metric tons. In mining activity we recycled 2.22 million metric tons of tailings (25.38% of the total), up from 15.17% last year (1.28 million metric tons).

Even when, by the nature of our processes, the materials we monetize cannot be used as replacements for raw materials or inputs, we can reprocess some waste by turning it into byproducts or end products.

306-2
The total amount of waste generated in 2020 was 10.13 million metric tons, broken down as shown in the following chart.

Conditioning of tailings dam at Sabinas unit
Waste disposal by type (t)
Division Type of disposal

2019

2020

%

Mines Landfill

7,159,912

6,330,409

73.98

Mines

Recycled outside facilities

2,878

2,553

0.03

Mines

Recycled internally

1,279,655

2,223,485

25.99

Metals

Landfill

1,013,768

1,369,564

99.89

Metals

Recycled outside facilities

10,521

1,402

0.10

Metals

Recycled internally

99

107

0.01

Chemicals

Landfill

274,318

207,188

99.89

Chemicals

Recycled outside facilities

384

235

0.11

Chemicals

Recycled internally

-

-

0.00

Total Peñoles

Landfill

8,448,076

7,907,161

78.02

Total Peñoles

Recycled outside facilities

13,783

4,190

0.05

Total Peñoles

Recycled internally

1,279,754

2,223,592

21.94

Total

9,741,614

10,134,942

100.0

WASTE DISPOSAL

(%)

Gráfica ventas país 1

78.02

0.04

21.94

Confined waste
Materials recycled internally
Waste recycled by outside specialists
Tailings deposit, Capela unit

Tailings deposit, Capela unit

EM-MM-150a.2.
Our ore processing operations generated 1.37 million metric tons of waste, 0.1% of which which 1,509 metric tons were recycled.

The eco-efficiency index includes the total amount of waste generated for each metric ton of our most important products. The index in 2020 was 0.77, higher than the 0.64 reported in 2019, primarily due to the shutdown of operations at Bismark, Madero and Milpillas.

306-3
In 2020, there were no spills of hazardous materials or waste.

306-4
Peñoles verifies that the suppliers it hires to provide any type of waste handling, transport, or final disposal services, have all the necessary authorizations. The company does not export or import any type of waste.

0.77

waste eco-efficiency index in 2020.

Waste eco-efficiency index (t waste / t product)

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

PEÑOLES

0.73

0.71

0.65

0.60

0.57

0.55

0.58

0.58

0.61

0.63

0.63

0.63

0.63

0.62

0.64

0.77

WASTE ECO-EFFICIENCY INDEX

(t waste / t of product)

Gráfica de datos de Derrama

2.0

1.6

1.2

0.8

0.4

0

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Icono Reciclar

1,509 t

of waste recycled only from our ore processing operations.

Panoramic view of tailings dam, Tizapa plant
Icono Agua

4

dams moved from the construction phase to the operating phase.

Panoramic view of tailings dam, Tizapa plant

Tailings dams
EM-MM-150a.3
Peñoles made substantial progress in implementation of a governance and management framework for tailings and mining-metallurgical waste.

The following dams moved from the construction phase to the operating phase in 2020: dam 3 at La Ciénega, San Carlos, and Fresnillo and dam 1 at Capela.

The following dams went from the operating phase to the care and maintenance phase: expansion of dam 1 at Bismark, dams 1 and 2 at Madero, San Luis, and Los Chinos at Fresnillo.

We remained up to date on the status of the Global Mining Industry Standard on Tailings Management and agreed to its principles. We are preparing a plan to implement and comply with it when possible, which depends primarily on the availability of technical resources.

Some units, like Velardeña, Fresnillo, Saucito, Sabinas, Ciénega, Capela, Tizapa and the south dam at Met-Mex, have introduced a local governance structure that incorporates the positions and duties of the dam owner—that is, the party responsible—and the engineer of record. This is consistent with the standards of the Canadian Mining Association and the Global Industry Standard on Tailings Management.

With actions like this, Peñoles proves its firm commitment to operating its tailings facilities within a governance framework aligned with the standards and rules of the International Commission on Large Dams (ICOLD), the Canadian Dam Association (CDA), the Canadian Mining Association (MAC), the International Council on Mining and Metals (ICMM), and the Global Industry Standard on Tailings Management.

SOME OF OUR FEATURED ACTIONS

  • Creation of a Corporate Tailings Dam Department which is responsible mainly for establishing internal guidelines on management and governance, as well as coordinating the activities of the Independent Panel.
  • Creation of seven Regional Tailings Management Departments, which will apply and ensure the governance guidelines in the processes of site selection, design, construction and operation, closure and post-closure of tailings dams.
  • Even during the pandemic, the Independent Tailings Dam Review Panel completed its program of activities, which included remote review mechanisms and onsite inspections of conditions at each site.
  • Creation of a Tailings Review Committee, to ensure that Peñoles applies the most appropriate practices for tailings management and tailings deposits.
  • Creation of a system for following up on recommendations of the independent reviews, which shows the progress made toward improving the design, construction, operation and closure of tailings dams.
CONTENT

In this 2020 Report we present the sustainability performance of the operations of Peñoles and the generation of shared value with the groups of interest.

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