MAG Silver released its 2021 Sustainability Report, highlighting the company's commitment to improving its environmental, social and governance (ESG) performance, as well as its major achievements during the year.
Among the company's main ESG achievements were zero-fatality rates at the Juanicipio project and further exploration projects. Juanicipio saw a lost time injury frequency rate of 10.08. In addition, MAG Silver dedicated 51,000 hours to safety training and the
Regarding environmental matters, MAG Silver reported there were zero significant environmental incidents and highlighted that the company checked its climate-related risk and opportunities performance according to the recommendations of the Task Force on Climate-related Financial Disclosures. The company also noted that 84 percent of the power used for the Juanicipio project was generated by the Coahuila Wind Farm.
Concerning corporate and social issues, MAG Silver celebrated that it increased the diversity of its board of directors and senior management. In 2021, 38 percent of the board, 33 percent of senior managers and 40 percent of employees were women. In addition, MAG Silver updated its Human Rights and Diversity, Equity and Inclusion Policy and invested US$44,353 in community affairs.
“The publication of our inaugural Sustainability Report marks an important evolutionary milestone for the Company, demonstrating how our long-standing proactive corporate commitment to sustainability, respect, transparency and communication with our stakeholders has been formalized into an ongoing ESG framework for managing and measuring our existing exploration and development programs,” George Paspalas, President and CEO, MAG Silver, said.
MAG Silver owns 44 percent of the Juanicipio project located in Zacatecas, while 46 percent is owned by Fresnillo. It consists of two main vein systems: Valdecañas and Juanicipio, which are prolific epithermal silver and gold structures. Both companies expect the project to produce 11.7Moz/y of silver and 43,500oz/y of gold.
In a recent press release, it was announced that mining operations at Juanicipio will start in October. Fresnillo explained that despite delays, the project’s production forecast in 2023 will not be affected. The main challenge for Juanicipio was the Federal Electricity Commission's (CFE) delay in connecting the project to the grid. Nevertheless, Fresnillo stressed that construction activities related to the grid have been concluded and all systems are ready to be connected. MAG Silver highlighted that both companies expect the 4,000 t/d processing plant to reach around 90 percent of nameplate capacity in 4Q22.
“Having a safe and successful commissioning is crucial and we are respectful of the prudent approach being taken by the regulators in Mexico. Whilst we await the final tie-in, we are pleased with Juanicipio’s continued strong operating performance and increased processing opportunities at Fresnillo’s Saucito and Fresnillo facilities,” Paspalas said.