ELDORADO GOLD
YEAR IN REVIEW 2016
About This Report
This Report includes data on the operational, economic, environmental and social performance
of Eldorado Gold Corporation’s (“Eldorado” or “the Company”) three producing mines: Kişladağ,
Efemçukuru and Stratoni. While we discuss construction and development projects in relevant
sections of this Report, our performance data is focused on our producing assets. Data represents
the full 2016 calendar year, and all costs are reported in US dollars unless otherwise noted.
This Report has been prepared in accordance with the “Core”
Global Reporting Initiative (GRI) fourth-generation (G4) Sustainability
Reporting Guidelines (www.globalreporting.org). Although we do
not externally verify the Sustainability Report, the content has been
prepared and reviewed internally.
Where applicable, restatements of prior-year data has been
highlighted throughout the Report. Restatements occur as a result
of updated or more accurate data becoming available after the
release of our previous Year in Review Report on April 21, 2016.
Performance information and data related to Eldorado’s previously
owned Chinese operations have been excluded from this Report,
unless otherwise noted. Where information has been included, data
reflects 2016 performance up to the assets’ final date of sale. (1)
TABLE OF CONTENTS
OTHER IN-COUNTRY SUSTAINABILITY REPORTING
Eldorado Gold
Eldorado Gold at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Where We Operate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Our Track Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Year in Review
2016 Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Letter from Our President & CEO . . . . . . . . . . . . . . . . . . . . . . . . 8
Our Performance and Targets. . . . . . . . . . . . . . . . . . . . . . . . . . 10
Our Business
Creating Value Throughout the Mining Life Cycle. . . . . . . . . . . 15
Our Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Our Operations
Our Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Operating Mines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Construction Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Development Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Exploration Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Our Approach to Responsible Mining
Guiding Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
UN Sustainable Development Goals . . . . . . . . . . . . . . . . . . . . . 33
Corporate Governance and Transparency . . . . . . . . . . . . . . . . . 35
Material Topics
Materiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Our Economic and Operational Performance . . . . . . . . . . . . . . 40
Keeping Our People Safe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Minimizing Our Environmental Footprint . . . . . . . . . . . . . . . . . 46
Strengthening Our Community Relations . . . . . . . . . . . . . . . . . 55
Running Responsible Operations . . . . . . . . . . . . . . . . . . . . . . . 66
Mineral Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Mineral Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
GRI G4 “Core” Content Index. . . . . . . . . . . . . . . . . . . . . . . . 72
Cautionary Note about Forward-Looking Statements
and Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Glossary of Acronyms, Symbols and Abbreviations . . . . . . 82
Our Greek subsidiary, Hellas Gold S.A., publishes an annual
Corporate Social Responsibility (CSR) report (2) that is
aligned with the GRI G4 Guidelines.
Our Turkish subsidiary, Tüprag Metal Madencilik Sanayive
Ticaret A.S., publishes a biannual magazine called Altin
Sayfa (Golden Page). While not a sustainability report,
or aligned with sustainability reporting standards, the
magazine includes articles, case studies and news
relevant to our Turkish mines’ social and environmental
performance during the period.
We welcome feedback from all stakeholders regarding our
sustainability reporting. Please direct comments or requests
for further information to:
sustainability@eldoradogold.com
(1) September 6, 2016: Jinfeng mine is sold to China National Gold
Group Corporation. November 22, 2016: White Mountain mine,
Tanjianshan mine and Eastern Dragon Development project are
sold to Yintai Resources Co. Ltd.
(2) www.hellas-gold.com/koinwnia/etairiki-eythini-2015/
Eldorado produced approximately 486,000 ounces of gold in
2016 and had proven and probable gold reserves of approximately
19 million ounces at year end.
Eldorado’s operations are global and the Company has assets in
Turkey, Greece, Romania, Serbia and Brazil. Eldorado’s activities
involve all facets of mining, including exploration, development,
production and reclamation.
Headquartered in Vancouver, the Company employs approximately
4,800 people world-wide. Eldorado operates as a decentralized
business, with the majority of employees and management being
nationals of the countries where operations and offices are located.
Eldorado’s success is based on a low-cost strategy, a highly skilled and
dedicated workforce, safe and responsible operations, and long-term
partnerships with the communities where we operate.
Eldorado has a market capitalization of approximately $2.5 billion (1)
and revenues of approximately $650 million per year.
For more information on Eldorado Gold, our entities and our
financial performance, please see our 2016 Annual Information Form
on our website: www.eldoradogold.com/investors/financial-
information/filings.
KEY FACTS & FIGURES
4,871
employees and contractors world-wide
5 countries
of operation
3 operating mines
(Kişladağ, Efemçukuru and Stratoni)
2 construction projects
(Olympias and Skouries)
3 development projects
(Tocantinzinho, Certej and Perama Hill)
486,025 oz
of gold produced in 2016
19 Moz
of gold reserves at year end
24 years
of global experience building and operating mines
Hosting a mine tour at Kişladağ, Turkey.
(1) As at December 30, 2016.
ELDORADO GOLD YEAR IN REVIEW 2016
1
OUR OPERATIONSOUR APPROACHMATERIAL TOPICSELDORADO GOLDYEAR IN REVIEWOUR BUSINESSEldorado Gold at a GlanceEldorado Gold is one of Canada’s leading mid-tier gold mining companies, with shares trading on the Toronto (TSX: ELD) and New York (NYSE: EGO) stock exchanges. Where We Operate
Eldorado’s activities span eastern Europe, Turkey and Brazil. We focus on under-explored, highly
prospective areas that offer the potential for long-term growth and access to high-quality assets.
RUSSIA
Black Sea
N
ISTANBUL
IZMIR
Kişladağ
Efemçukuru
Mediterranean Sea
ANKARA
TURKEY
IRAQ
SYRIA
TURKEY
GREECE
Aegean
Sea
GREECE
MACEDONIA
BULGARIA
N
ALBANIA
Perama Hill
THESSALONIKI
ALEXANDROUPOLIS
Stratoni
Skouries
Olympias
GREECE
TURKEY
Aegean
Sea
ATHENS
KIŞLADAĞ MINE
● Commodities: Gold
● 2016 Production:
211,161 oz Au
● Ownership: 100%
● 2P Reserves: 5.27 Moz Au
Country Office: Ankara
EFEMÇUKURU MINE
● Commodities: Gold
● 2016 Production:
98,364 oz Au
● Ownership: 100%
● 2P Reserves: 931 Koz Au
STRATONI MINE
● Commodities:
Silver, Lead, Zinc
● 2016 Production:
48,394 tonnes of
concentrate produced
● Ownership: 95%
● 2P Reserves: 960 Koz Ag,
11 Kt Pb, 17 Kt Zn
SKOURIES
CONSTRUCTION PROJECT
● Commodities: Gold, Copper
● Ownership: 95%
● 2P Reserves: 3.79 Moz Au,
776 Kt Cu
OLYMPIAS
CONSTRUCTION PROJECT
PERAMA HILL
PROJECT
● Commodities:
Gold, Silver, Lead, Zinc
● Ownership: 95%
● 2P Reserves: 4.07 Moz Au,
66.3 Moz Ag, 693 Kt Pb,
921 Kt Zn
● Commodities: Gold, Silver
● Ownership: 100%
● 2P Reserves: 975 Koz Au,
1.15 Moz Ag
● Currently on care
and maintenance
Country Office: Athens
2
ELDORADO GOLD YEAR IN REVIEW 2016
ROMANIA
HUNGARY
MOLDOVA
UKRAINE
N
TIMISOARA
Certej
ROMANIA
CERTEJ PROJECT
● Commodities: Gold, Silver
● Ownership: 81%
● 2P Reserves: 2.4 Moz Au,
15.56 Moz Ag
Country Office: Deva
BUCHAREST
BULGARIA
Black Sea
SERBIA
BRAZIL
COLUMBIA
Vila Nova
N
Tocantinzinho
BRAZIL
PERU
BOLIVIA
BRASILIA
Atlantic
Ocean
Pacific
Ocean
PARAGUAY
ARGENTINA
URUGUAY
2P reserves as at December 31, 2016.
TOCANTINZINHO PROJECT
VILA NOVA MINE
● Commodities: Gold, Silver
● Ownership: 100%
● 2P Reserves: 1.82 Moz Au
Country Office: Belo Horizonte
● Commodities: Iron ore
● Ownership: 100%
● Currently on care
and maintenance
ELDORADO GOLD YEAR IN REVIEW 2016
3
OUR OPERATIONSOUR APPROACHMATERIAL TOPICSELDORADO GOLDYEAR IN REVIEWOUR BUSINESS Our Track Record
Since the Company was founded in 1992, Eldorado has maintained its focus on building a sustainable,
high-quality business in the mining sector. Notable milestones and highlights across the Company’s
24-year history are outlined below.
1992
• Eldorado Corporation Ltd
is founded with a focus on
developing low-cost mines
in Mexico
• Early-stage exploration
identifies Efemçukuru’s
mineral potential
• Acquired 70% interest in
La Colorada gold project
in Mexico
• Eldorado lists on the TSX
1996
• Acquired Gencor properties including
100% interest in both the Sao Bento gold mine
in Brazil and Efemçukuru gold project in Turkey
• Eldorado Corporation Ltd becomes Eldorado
Gold Corporation
• Eldorado Gold Corporation merges with HRC
Development Corporation to further increase
its exploration portfolio
• Commericial production begins at La Trinidad
mine in Mexico
• Early-stage exploration identifies a gold
anomaly at Kişladağ
1998
• Mining ceases at
La Trinidad; reclamation
activity begins
2001
• Kişladağ Mine Foundation
established to support
community-related projects
2002
• Potable water distribution
system developed for local
villages near Kişladağ
2004
• Construction
begins at Kişladağ
1994
• Commercial production
begins at La Colorada mine
in Mexico
• Acquired remaining
30% interest in
La Colorada mine to hold
100% ownership
1993
• Acquired 51% interest in
La Trinidad gold project
in Mexico
2000
• Reclamation of
La Trinidad complete
• Sale of La Colorada and
exit from Mexico
1999
• Announced initial resource of 2 million
ounces of gold at Kişladağ; Kişladağ
becomes the largest known gold discovery
in Turkey
• Reduced cash operating costs at Sao
Bento by almost 50% since acquisition
1997
• Acquired remaining 49%
interest in La Trinidad mine
to hold 100% ownership
• Exploration drilling begins
at Kişladağ
2003
• Environmental Education
Center developed at
Sao Bento to showcase
diverse flora and fauna
found in the area;
76% of the mine footprint
is undisturbed forest
4
ELDORADO GOLD YEAR IN REVIEW 2016
2014
• Acquired Glory Resources
(100% interest in the Sapes project)
2016
• Exit from China
via asset sales
2005
• Entry into China through acquisition of Afcan
Mining Corporation (85% interest in the
partially constructed Tanjianshan project)
• Acquired 84% interest in Vila Nova project
2008
• Construction begins at Efemçukuru
• Kişladağ throughput expanded from initial
5 Mtpa to 10 Mtpa
• Acquired Frontier Pacific Mining Corporation
(100% interest in the Perama Hill project)
• Earned an interest in the Tocantinzinho gold project
from Brazauro Resources Corporation
• Sale of Sao Bento mine to Anglogold Ashanti
for $70 million
2010
• Began dividend payments
• Commercial production
begins at Vila Nova iron
ore mine
• Acquired remaining interest
in the Tocantinzinho project
to hold 100% ownership
2012
• Acquired European Goldfields Ltd (95%
interest in Skouries, Olympias and Stratoni
in Greece and 80.5% interest in Certej in
Romania)
2009
• Acquired Sino Gold (82% interest in Jinfeng
mine, 95% interest in White Mountain mine
and Eastern Dragon project)
• Increased 2P gold reserves by
95% to 15.1 million ounces
• Eldorado lists on the NYSE
2007
• Commercial production
begins at Tanjianshan
2006
• Commercial production begins at Kişladağ
• Completed construction and
commissioning at Tanjianshan; Eldorado
becomes the first North American gold
producer to construct and operate a gold
mine in China
2011
• Commercial production
begins at Efemçukuru
• Kişladağ throughput is
expanded from 10 Mtpa
to 12.5 Mtpa
2017
• Commercial production at
Olympias expected in H2
• Retirement of Paul Wright,
President & CEO, after more
than 20 years with Eldorado;
George Burns assumes role of
President & CEO on April 27
at the Company’s AGM
ELDORADO GOLD YEAR IN REVIEW 2016
5
OUR OPERATIONSOUR APPROACHMATERIAL TOPICSELDORADO GOLDYEAR IN REVIEWOUR BUSINESS Year in Review
Over the past 24 years, Eldorado Gold has built more
than just mines. Our focus on building value for all those
invested in us and our commitment to operating to the
highest health, safety and environmental standards
continues to drive our performance each year.
6
ELDORADO GOLD YEAR IN REVIEW 2016
Kişladağ open pit at dusk.
2016 Highlights
2016 Highlights
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486,025 OZ OF GOLD PRODUCED
Gold production was lower in
2016 compared to 2015 due
to the sale of our Chinese assets
and slower than expected leach
rates at Kişladağ.
YEAR-END PROVEN AND
PROBABLE GOLD RESERVES OF
19.26 Moz
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$900/oz ALL-IN
SUSTAINING COST (AISC)
Eldorado’s AISC rose by
7% year over year due to lower
ounce production against which
to attribute the fixed costs.
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~$650 MILLION IN REVENUE
Revenue was down 25%
in 2016, mainly due to
the sale of our Chinese
operating assets.
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$1.1 BILLION OF LIQUIDITY
At the end of 2016, we had
$888.5 million in cash, cash
equivalents and term deposits,
and $250 million in undrawn
lines of credit.
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0.93 LOST-TIME INJURY
FREQUENCY RATE (LTIFR)
Eldorado achieved a 10% annual
reduction in Company-wide LTIFR.
This is the fifth year that Eldorado
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ELDORADO GOLD YEAR IN REVIEW 2016
7
YEAR IN REVIEWELDORADO GOLDOUR OPERATIONSOUR BUSINESSOUR APPROACHMATERIAL TOPICS
Letter from Our President & CEO
SUCCESSFULLY DELIVERING ON OUR COMMITMENTS
SOLID FINANCIAL POSITION
2016 was a transitional year for Eldorado. We set out with specific targets
and goals – and we delivered. Including the discontinued operations,
Eldorado finished the year with production of over 486,000 ounces of
gold, at industry-leading cash costs of approximately $579 per ounce.
Our cornerstone mines in Turkey again met internal targets and progress
continued at our Skouries and Olympias projects in Greece after a brief
suspension early in the year. We continued to advance our development
projects in Romania and Brazil. Our exploration team demonstrated success
in their early stage projects to further their goal of complementing our
internal growth pipeline. Our team successfully completed the sales of our
Chinese assets, a process that had been underway since late 2014.
The Company’s commitment to remaining financially prudent has not
wavered. We finished the year with over $1 billion in total liquidity and we
have a project pipeline that will continue to grow the Company for many
years to come.
GROWING A REAL BUSINESS
Fundamental to Eldorado’s growth plan is finding and developing
high-quality and long-lived assets to sustain our production base,
while delivering real and long-term value to our stakeholders.
Our two cornerstone mines, Kişladağ and Efemçukuru, have consistently
delivered year after year, on production and costs, and both assets have
significant years of production still ahead of them. While the headline
risk in Turkey increased throughout 2016, we continue to operate in this
pragmatic country as we have since the late 1990s and we have had no
recent interruptions to our organization or operations. We continue to
explore and assess opportunities to extend our business interests in Turkey.
While we have faced political challenges over the last few years in Greece,
we believe we are now in an improved position to further the constructive
working relationship with the government in order to continue on time
and on budget with Olympias Phase II, slated for commercial production
mid-2017, and start-up at Skouries in 2019. Both Skouries and Olympias
have mine lives in excess of 25 years, which will result in growth and
development for the local and national economies, in addition to expected
annual gold production of over 235,000 ounces and significant silver and
base metal production once the mines are in full production.
Volatility remains in the gold price and we continue to believe that
maintaining the financial flexibility to sustain and grow our business
forms the basis of our capital spending decisions. We ended the year with
approximately $880 million in cash, cash equivalents and term deposits,
and $250 million in undrawn lines of credit. In response to our current gold
price outlook of $1,150 per ounce for 2017 and the capital requirements at
our priority development projects in Greece, we revised our operating plan
at Kişladağ in order to reduce sustaining capital requirements over the next
five years, while increasing free cash flow from the operation in the near
and medium term.
We remain prudent and disciplined in allocating our funds for growth.
A COMMITMENT TO SUSTAINABLE OPERATIONS
Like other mining companies, Eldorado operates in a complex and rapidly
changing business environment. In addition to our commitment to the
sustainability of our operations, we also recognize our responsibility to
the communities and environments in which we operate. We finished
2016 with no material environmental incidents and advanced one of the
largest environmental clean-up projects in Europe: the rehabilitation of the
Olympias tailings area in Greece. Our in-country teams continue to work
with the local communities to develop and implement long-term strategies
to create value for our stakeholders.
Our operational health and safety policies seek to eliminate any injury to
our workforce. We audit compliance with these policies, both on a regular
basis and in the event of any accident or injury. We have seen a continued
reduction in the frequency of lost-time injuries across our sites, but must
only be satisfied when injuries are totally eliminated. The fatality at Stratoni
early in 2016 was of great sadness and concern to the Company and
reinforces our resolve with respect to health and safety.
8
ELDORADO GOLD YEAR IN REVIEW 2016
Paul Wright
President & CEO
“The Company’s growth over the last two decades has
provided us with the opportunity to re-invest in our
business to secure the future, discover new deposits,
complete accretive acquisitions and expand our land
positions. We will continue re-investing in growth
to create long-term stakeholder value.”
We are working collaboratively with industry and peers to improve our
sustainability performance. We actively participate in several industry
associations, such as the Mining Association of Canada, and apply world-
class standards including the International Cyanide Management Code,
the World Gold Council’s Conflict-Free Gold Standard and other leading
frameworks. In 2016, we became a signatory to the United Nations
Global Compact and we actively support its Ten Principles based on
human rights, labour, environment and anti-corruption.
Looking forward, we must continue to look for safer and more
sustainable ways to operate. Our goals for 2017 include eliminating
fatalities, achieving no reportable environmental incidents, improving
the transparency of our payments made to governments and aligning
our practices to the Voluntary Principles on Security and Human Rights.
OUTLOOK
The Company’s growth over the last two decades has provided us
with the opportunity to re-invest in our business to secure the future,
discover new deposits, complete accretive acquisitions and expand our
land positions. We will continue re-investing in growth to create long-
term stakeholder value. We are committed to managing Eldorado as
a responsible business with a value-based growth objective.
Our record of past success has provided us with a solid foundation to
continue to create long-term value for our stakeholders for many years
to come. It is this unrelenting focus that differentiates us in the industry.
In closing, I would like to take this opportunity to thank our shareholders,
employees and Board for their support over the past 20 years.
FUTURE LEADERSHIP
After almost 20 years with Eldorado, I will retire as President & CEO at our
Annual Shareholder Meeting on April 27, 2017. George Burns, a well-
respected and highly experienced industry veteran, will become Eldorado’s
new President & CEO on that date. I remain a director nominee and,
if elected, will assume the position of Vice Chairman of the Board.
Yours sincerely,
We also continued to strengthen the expertise of our Board of Directors
by welcoming Dr. George Albino as a director in October, and look
forward to his valuable contributions to the Board. Mr. Ross Cory is not
standing for re-election and, on behalf of the Board, I would like to thank
him for his many years of service and dedication to the Company.
Paul Wright
President & CEO
ELDORADO GOLD YEAR IN REVIEW 2016
9
YEAR IN REVIEWELDORADO GOLDOUR OPERATIONSOUR BUSINESSOUR APPROACHMATERIAL TOPICS Our Performance and Targets
Eldorado sets annual goals to drive performance towards meeting the Company’s strategic,
operational and sustainability objectives. The following highlights our progress against these goals
in 2016 and sets out our goals for 2017. We will continue to review our targets moving forward with
a strategic focus on advancing our long-term business performance.
2016 Performance
ECONOMIC AND OPERATIONAL PERFORMANCE
Achieved ✓ Partially achieved ♦ Not achieved ✗
Goal
Why it is important
Outcome
Explanation
Produce
565,000–630,000
ounces of gold
Gold ounces produced is a key indicator
of operational performance.
Deliver cash
operating costs of
$585–$620 per ounce
Cash operating costs reflect the direct cost
of mining an ounce of gold and are an
indicator of operational efficiency.
Maintain gold
reserves between
20 and 25 times the
production rate
Gold reserves can provide an indication
of mine size and asset quality. Eldorado’s
mineral reserve and resource base supports
our growth pipeline.
Maintain a debt-to-
capital ratio of less
than 30%
Indicates the proportion of our total
capital that is debt. The higher the debt-
to-capital ratio, the riskier the Company’s
financial health.
✗
✓
✓
✓
Gold production: 486,025 oz
Due to the sale of Eldorado’s Chinese assets, including three
producing gold mines, the 2016 annual production target
was not achieved.
Cash operating costs: $579 per ounce
Average cash operating costs of $579 per ounce for 2016,
beating Eldorado’s target range.
Gold reserves: 19.3 Moz
With 19.3 Moz of gold reserves, and gold production
in 2016 of 486,025 oz, Eldorado’s gold reserves were
maintained at over 39 times our production rate.
Debt-to-capital ratio: 14.2%
With debt of $591.6 million versus total capital of
$4.2 billion, Eldorado maintained a debt-to-capital ratio
of 14.2% as at December 31, 2016.
2016 Gold Production (1)
2016 Gold Reserves
36%
486,025 oz
1%
64%
■ Turkey
■ Greece
■ China
(1) Numbers do not add up to 100% due to rounding.
13%
9%
32%
19 Moz
46%
■ Turkey
■ Greece
■ Brazil
■ Romania
10
ELDORADO GOLD YEAR IN REVIEW 2016
HEALTH AND SAFETY
Goal
Why it is important
Outcome
Explanation
Zero fatalities
The health and safety of our workforce
is our highest priority and we strive
for a workplace free of hazards, risks
and accidents.
Achieve a minimum
10% year over year
improvement in the
Reportable Injury
Frequency Rate
Provides a measure of our health and safety
performance. The TRIFR and LTIFR show how
many events happened over a given period.
Implement a
Corporate Safety
Directive across all
regions
Provides operations with a common
approach to achieving Eldorado’s vision of
creating and sustaining an injury-free and
healthy environment for our employees
and contractors.
Improve performance
scores at sites against
MAC’s Safety and
Health Protocol
The Mining Association of Canada’s
(MAC) Towards Sustainable Mining (TSM)
Safety and Health Protocol provides
guidelines for robust safety and health
management systems to establish
safe and healthy workplaces and drive
performance improvement.
✗
♦
♦
♦
Fatalities: 1
In February 2016, we were sad to report the fatality of one
of our underground team members at our Stratoni mine
in Greece.
Total Recordable Injury Frequency Rate (TRIFR)
Increased TRIFR to 5.47 from 4.86
Lost-Time Injury Frequency Rate (LTIFR)
Reduced LTIFR to 0.93 from 1.04
While we were pleased to achieve a 10% reduction
of lost-time injuries, we unfortunately saw a 12% increase
in the Total Reportable Injury Frequency Rate in 2016.
Corporate safety directive
Introduced to sites
In 2016 we finalized Eldorado’s Global Health & Safety
Directive and are now in the process of implementing
the Directive with safety teams.
TSM Safety and Health Protocol
Improved site adherence at some sites
Activities in 2016 to improve site scores included:
• The roll-out of Eldorado’s updated Health and
Safety Policy
• External reviews of site Health and Safety
Management Systems
• Providing fatality prevention, supervisor safety
leadership and ground-control awareness training
at our sites in Greece
Conduct review for
alignment with the
Voluntary Principles;
implement plans to
close any gaps
The Voluntary Principles on Security and
Human Rights (Voluntary Principles) are
designed specifically for extractive sector
companies as a guide to maintaining the
safety and security of their operations within
an operating framework that encourages
respect for human rights.
✓
Voluntary Principles
Completed gap assessment
We completed a preliminary review of the Voluntary
Principles and have identified a number of gaps to
be addressed in 2017. Immediate priorities include
implementing a Global Grievance Mechanism, human
rights training, defined roles and accountabilities for private
and public security, and training for security personnel in
accordance with the Voluntary Principles.
ELDORADO GOLD YEAR IN REVIEW 2016
11
YEAR IN REVIEWELDORADO GOLDOUR OPERATIONSOUR BUSINESSOUR APPROACHMATERIAL TOPICS ENVIRONMENT
Achieved ✓ Partially achieved ♦ Not achieved ✗
Goal
Why it is important
Outcome
Explanation
Have no reportable
environmental
incidents
The number of fines and penalties Eldorado
receives is an indication of our mines’
success and adherence to all legal permitting
and licensing requirements.
✗
Fines and penalties: 1
Continue ICMC
compliance at current
operating sites and
design new projects
to standards
Eldorado’s compliance to the International
Cyanide Management Code (ICMC) reflects
our commitment to manage cyanide in a
safe and responsible manner.
Increase availability
and transparency of
environmental data
collected at sites
Increasing the ways our stakeholders can
monitor and measure mine performance is
an essential step towards building trust and
mutual respect.
✓
✓
One fine in 2016. Our Kışladağ mine was issued a $10,000
fine by the local Environmental Directorate due to washing
activities at the secondary and tertiary crusher base area.
Impacts were minimal but as a corrective action, the washing
activity was stopped and drainage channels were covered.
ICMC
Maintained compliance
In May 2016, the Kışladağ gold mine successfully completed
re-certification under the ICMC. All new projects are being
designed to meet or exceed the ICMC standard.
Environmental data
Increased availability and transparency
Eldorado increased disclosures within the Carbon
Disclosure Project’s annual climate change and water
reports. In Greece, we also developed a publicly available
environmental monitoring program to 320 different data
points at our Halkidiki assets.
GOVERNANCE
Goal
Why it is important
Outcome
Explanation
Review plans
for an Employee
Diversity Policy
Reflects our commitment to creating a
workplace that is fair and inclusive, and
better reflects the diversity of our employees,
stakeholders and local communities.
Become a signatory
to the UNGC
Develop reporting
systems compliant
with the ESTMA
guidelines
The United Nations Global Compact (UNGC)
encourages signatories to align strategies
and operations with universal principles on
human rights, labour, environment and anti-
corruption, and take actions that advance
societal goals.
The Extractive Sector Transparency
Measures Act (ESTMA) was passed in
Canada on June 1, 2015 and requires
businesses involved in the extractive
sector to file and publish reports that
enhance the transparency of payments
to host governments.
♦
✓
✓
Employee Diversity Policy
Reviewed plans for an Employee Diversity Policy
Eldorado plans to publish an Employee Diversity Policy in
2017 following review and approval by Company leadership
and the Board of Directors.
UNGC
Became a signatory
In July 2016, Eldorado joined the UNGC. This Report
represents our first Communication on Progress of actions
to advance the UNGC’s principles and goals.
ESTMA
Developed compliant reporting systems
In 2016, Eldorado’s Finance team made system and process
changes needed to begin reporting payment disclosures in
accordance with ESTMA. The 2016 financial year represents
the first reporting period for which Eldorado is required
to disclose payments in accordance with ESTMA. Initial
reporting under the act is due by May 31, 2017.
12
ELDORADO GOLD YEAR IN REVIEW 2016
COMMUNITY
Goal
Why it is important
Outcome
Explanation
Implement
formal grievance
mechanisms at sites
that do not already
have one
Grievance mechanisms serve as a key tool
for developing feedback loops and providing
a formal basis on which to be heard, for
people close to or affected by our mining
activities. It helps Eldorado manage
risks and foster a positive relationship
with stakeholders.
♦
Formal site grievance mechanism
Began implementation
In 2016, Eldorado finalized a formal Company-wide
grievance mechanism, comprising a global directive and
implementation guide for sites. Each of our sites and
projects are in the process of implementing the guidelines.
2017 Goals
Area
2017 Goal
Economic/
Operations
• Produce between 365,000 and 400,000 ounces of gold
• Deliver cash operating costs between $485–$535 per ounce
• Maintain gold reserves between 20 and 25 times the production rate
• Maintain a debt-to-capital ratio of less than 30%
Health and safety
• Zero fatalities
• Achieve a minimum 10% year over year improvement in the Total Recordable Injury Frequency Rate
• Achieve a minimum 5% year over year improvement in the Lost-Time Injury Frequency Rate
Environment
• Have no reportable environmental incidents
• Maintain adherence to the ICMC at all sites that use cyanide and design projects to ICMC standards
upon start-up
• Establish energy and greenhouse gas emission targets at operating sites
Governance
• Publish Eldorado’s first public report in accordance with the ESTMA by May 31, 2017
• Establish and implement a Global Security Directive, outlining the minimum expectations for security
risk assessments, control measures and incident response in line with the Voluntary Principles
•
Introduce human rights training for all employees and contractors who work at our sites
• Conduct training for all armed security personnel in accordance with the Voluntary Principles
Community
• Complete implementation of Eldorado’s formal grievance mechanism at our operating mines and
development projects, and publicly report on the number and type of grievances raised in 2017
ELDORADO GOLD YEAR IN REVIEW 2016
13
YEAR IN REVIEWELDORADO GOLDOUR OPERATIONSOUR BUSINESSOUR APPROACHMATERIAL TOPICS Our Business
We find, mine and produce gold and byproduct metals.
At each stage of the mining process, we aim to create value
for all of our stakeholders while operating responsibly.
For Eldorado, this means finding and developing world-
class assets, growing our asset base, delivering cost
savings, responsibly managing our impacts and building
opportunities for those in our local communities.
14
ELDORADO GOLD YEAR IN REVIEW 2016
Olympias underground, Greece.
Creating Value Throughout the Mining Life Cycle
Below we describe each stage of the mining life cycle, the roles of our dedicated teams and the average timeframe for each phase.
ELDORADO’S CORE BUSINESS
1. INPUTS
2. EXPLORATION
Resources
and
Relationships
● Turkey
● Greece
● Romania
● Brazil
● Serbia
3. EVALUATION
AND
DEVELOPMENT
● Certej
● Tocantinzinho
● Perama Hill (1)
4. CONSTRUCTION
● Skouries
● Olympias
5. MINING AND
PROCESSING
● Kişladağ
● Efemçukuru
● Stratoni
6. OUTPUTS
● Gold
● Silver
● Lead
● Zinc
7. RECLAMATION
AND CLOSURE
Vila Nova (1)
3–5 years
5+ years
3–5 years
20+ years
2–5 years
Inputs
Resources and relationships are critical inputs to the mining life cycle. Various teams manage these inputs,
including: Operations, Exploration, Corporate Development, Administration & Legal, Human
Resources, Engineering, Investor Relations and Finance. Effectively managing our resources and
relationships can lower operating costs, reduce site disruptions, secure mine licences and permits, and
accelerate Company growth and expansion.
RESOURCES
● Employees
● Contractors
● Capital
● Land
● Services and suppliers
● Plant and equipment
● Energy
● Water
RELATIONSHIPS
● Labour
● Unions
● Suppliers
● Government
● Public authorities
Investors
Industry associations
● Local communities
●
●
● Competitors
● Religious associations
Exploration
3
–
5
Y
E
A
R
S
Eldorado’s Exploration and Corporate
Development teams actively look for new potential
assets within our focus jurisdictions and in new
regions. They assess early- and advanced-stage
exploration projects and conduct near-mine and
grassroots exploration programs with the primary goal
of adding value through discovery in order to increase
our resources and reserves.
During grassroots exploration, our Exploration teams
visit prospective areas to conduct geological surveys
and sampling programs, often partnering with other
companies to benefit from their local knowledge and
experience. If results indicate a possible mineralized
deposit, we drill exploration holes to determine
whether economically viable concentrations of metals
may exist. Advanced-stage exploration projects will
include detailed drilling programs designed to define
resources and reserves, providing the basis for the
evaluation and development stage. During exploration
we initiate engagement with local communities to
identify social and environmental concerns, and we
consider these as part of the mine development plans.
(1) Perama Hill and Vila Nova are currently on care and maintenance.
ELDORADO GOLD YEAR IN REVIEW 2016
15
OUR BUSINESSELDORADO GOLDYEAR IN REVIEWOUR OPERATIONSOUR APPROACHMATERIAL TOPICS
Evaluation and
Development
Construction
Mining and
Processing
5
+
Y
E
A
R
S
3
–
5
Y
E
A
R
S
2
0
+
Y
E
A
R
S
During the development stage, our Engineering,
Technical Services and Metallurgy teams conduct
feasibility studies to determine:
● The optimal mining methods and mineral
recovery processes for each project
● The required infrastructure
● The best placement and design of facilities,
based on thorough impact and mitigation
assessments
● The required mine monitoring, closure and
reclamation plans
These studies give us a picture of the capital costs
required for development and the longer-term
economics of the project. We are then able to decide
if a capital investment makes economic sense, in
order to make a construction decision.
We also build upon our initial environmental baseline
studies and conduct extensive environmental testing
to establish baseline data for air, water, soil and
biodiversity. This information becomes part of the
Environmental Impact Assessment (EIA) that must be
completed and approved by the relevant authorities
before a mine can be developed. Sustainability
criteria are built into the EIA, and through the
environmental permitting process we engage and
consult with local communities, businesses and
government to obtain input. This research and
dialogue helps Eldorado develop innovative solutions
for social and environmental challenges faced by our
projects, including dust and air emissions, water and
energy use, noise and waste.
Infrastructure development initiatives – such as
improving roads, building sewage systems and
drilling water wells – may also commence, according
to project and local community needs.
Once the project EIA and other relevant permits are
approved by relevant government authorities, and we
have received a positive decision to proceed from our
Board of Directors, our Capital Projects team can
begin construction. Explicit requirements described in
the EIA guide our activities and help us manage any
social and environmental risks.
This construction phase requires the greatest input
of capital and resources over a project’s life cycle,
and during this phase, we add significant value
to local economies through local job growth and
procurement. Eldorado is focused on local hiring and
procurement everywhere we operate, and our aim
is to hire locally as well as to train all employees and
contractors in the industry’s leading environmental,
health and safety practices, procedures and controls.
Based on dialogue with local communities and
businesses, we identify gaps in skills and capacity,
provide on-the-job training and, where needed,
support local technical schools and universities to
enhance their mining-specific and trades programs
so that local residents and students can increase their
prospects of employment with us.
During production, our Operations team and site
personnel are responsible for mining, extracting
and processing ore from the mines. Any leftover
materials generated by our mining activities, which
typically include topsoil, waste rock and tailings,
are either placed on site in engineered facilities for
storage and treatment, or reused elsewhere on-site
as part of construction activities, rehabilitation or
as underground backfill. Rigorous environmental
monitoring – to test air, water and soil quality, and
noise, blast vibration and dust levels – ensures we are
in compliance with environmental regulations and
our operating licences and permits.
We add value during the production phase
through a commitment to local employment
and procurement, operational excellence,
local investment and community engagement.
New equipment and technologies, continuous
improvement projects, low accident rates,
a commitment to environmental stewardship,
and effective controls and procedures all
combine to deliver productivity benefits.
Frequent consultation with local communities
and businesses helps us identify where we
can create new opportunities for sustainable
economic development.
16
ELDORADO GOLD YEAR IN REVIEW 2016
Outputs
Reclamation
and Closure
More details on our products can be found
on page 18.
Our outputs are the products we produce, namely,
gold, silver, lead and zinc. Our in-country Marketing
teams are responsible for finding downstream
refineries and establishing long-term working
relationships and purchase agreements. These
agreements outline the terms and conditions of
payment for our products, and specify parameters
and penalties for the quantity, quality and chemical
composition of our doré and concentrate.
2
–
5
Y
E
A
R
S
+
O
N
G
O
N
G
M
A
N
A
G
E
M
E
N
T
I
Restoring the land so it is compatible with the
surrounding landscape is our responsibility and
a priority for our communities. How we conduct
our rehabilitation in one jurisdiction impacts
our welcome in another. Therefore, prior to and
throughout a mine’s operation, our Operations
teams develop and continuously enhance plans
for the mine’s future closure in order to:
● Protect public health and safety
● Eliminate the potential for
environmental damage
● Return the land to its original condition
or an acceptable and productive alternative
● Provide for long-term social and
economic benefits
Whenever possible, remediation and reclamation
begin during the mine’s operation. When areas are
no longer needed for mining, they are reclaimed
in parallel with other work being carried out
elsewhere. Topsoil removed from mining and
construction areas is stored for later use in all
reclamation activities. We also investigate different
plants, shrubs and tree species suitable for local
propagation in studies in on-site greenhouses.
Sometimes it is necessary to place a mine site
under care and maintenance, such as at our
Vila Nova mine. This means we temporarily close
the mining operation so that we may recommence
operations at a later date. This may occur when
economic conditions or resource prices make the
mine uneconomical to operate. Environmental
risks such as mine tailings and hazardous materials
storage continue to be managed, while idle plant
and machinery are maintained. All safety and
environmental conditions continue to apply during
care and maintenance.
Once a mine site is permanently closed, we conduct
further environmental monitoring and reclamation
activities, as required in our EIA and mine licences,
so that the environment can successfully transition
to a productive ecosystem.
All of Eldorado’s mine closure plans address:
● Decommissioning: dismantling project
infrastructure such as facilities and buildings
● Reclamation: re-vegetating disturbed areas
● Ongoing monitoring: long-term monitoring
of environmental parameters
● Closure costs: regularly reviewing and
updating closure plan costs and making
financial provisions
ELDORADO GOLD YEAR IN REVIEW 2016
17
OUR BUSINESSELDORADO GOLDYEAR IN REVIEWOUR OPERATIONSOUR APPROACHMATERIAL TOPICS
Our Products
Eldorado is committed to responsibly producing gold and other metals that offer a wide range of uses.
Our operating cash flows are primarily from the sale of unrefined gold bullion bars (or doré) and gold,
silver, lead and zinc concentrates. (1)
Au
Ag
Pb
Zn
Jewelry accounted for 47% of world gold demand in
2016. Various technologies (electronics, industrial uses and
dentistry) used 8%, investments (bars, coins, ETFs and similar
products) accounted for 36%, and central bank and other
institutions accounted for 9%. It can be readily sold on numerous
markets world-wide, although benchmark prices are generally
based on London Bullion Market Association quotations.
9%
World Gold Demand (2)
36%
47%
8%
■ Jewelry
■ Technology
■ Investment
■ Central bank
net purchases
Silver has a wide variety of uses due to its malleability, reflectivity
and lustre. It is commonly used in jewelry and silverware, and also
used in medical science, batteries, circuit boards, the glass industry
and photography. Silver is also used to make mirrors, as it is the
best known reflector of visible light.
The most common application of lead is in lead-acid batteries
(e.g. car batteries), accounting for approximately 80% of world
consumption. Although gasoline, soldering and plumbing no
longer account for significant lead use, lead’s malleable, dense and
anti-corrosive properties mean it is now often used to line tanks
that store corrosive liquids and as a shield against X- and gamma-
ray radiation. Other uses include the manufacture of paints and
pigments and other chemical compounds.
Zinc is the fourth most widely consumed metal in the world, with
most production used in zinc galvanizing to prevent the rusting
of iron and steel. Zinc is commonly used in alloys such as brass,
nickel, silver and aluminum solder, materials used in automobiles,
electrical components and household fixtures. It is also important
as a health supplement.
50%
19%
25%
6%
10%
20%
40%
30%
4%
6%
6%
17%
50%
17%
World Silver Demand (3)
■ Jewelry
■ Coins & bars
■ Silverware
■ Industrial fabrication
World Lead Demand (4)
■ Batteries – Starting Lighting
Ignition (SLI)
■ Batteries – Industrial
■ Non-battery uses
■ Batteries – SLI original
equipment
World Zinc Demand (5)
■ Galvanizing
■ Zinc alloying
■ Brass and bronze
■ Zinc semi-manufactured
products
■ Chemicals
■ Miscellaneous
(1) Our Skouries project will also produce a copper concentrate once in production, expected in 2019.
(2) www.gold.org/supply-and-demand/gold-demand-trends
(3) World Silver Survey 2016, GFMS, Thomson Reuters/The Silver Institute.
(4) www.lme.com/en-gb/metals/non-ferrous/lead/production-and-consumption
(5) www.statista.com/statistics/240626/share-of-zinc-consumption-by-category
18
ELDORADO GOLD YEAR IN REVIEW 2016
Facts about Gold (1)
● Gold melts at 1064°C and boils at 2808°C
●
It is more rare to find a one-ounce gold nugget than
a five-carat diamond
● There are just over 31 g of gold in a troy ounce
● All of the gold ever mined would fit into a crate
of 21 m3
● One ounce of gold can be stretched to a wire length of
80 kilometres; the resulting wire would be just five microns wide
● The world’s oceans are estimated to hold up to 15,000 tonnes
of gold
● The US Federal Reserve holds 6,700 tonnes of gold in
530,000 gold bars. At its peak in 1973, the Reserve stored
more than 12,000 tonnes of monetary gold
Our doré, which largely contains gold and silver, has no environmental or
safety risks associated with handling or disposal, and requires no product
service or labelling. As a result, other than for product transport and
security, we have not developed detailed protocols, procedures or public
labelling as it relates to product handling and responsibility.
Our concentrates, which can contain gold, silver, lead and zinc, are
transported by conveyor to a local port facility (e.g. Stratoni) or loaded
onto enclosed trucks and transported to sea ports for export to foreign
smelters. Transportation of concentrate is subject to numerous risks,
mainly related to theft and environmental liabilities in the event of a
spill. All road and marine shipments of concentrate from Efemçukuru
and Stratoni are performed under ADR (formally, the European
Agreement concerning the International Carriage of Dangerous Goods
by Road) (2) and International Maritime Organization (IMO) regulations,
using sub-contractors who are certified and trained to follow the
standard ADR and IMO procedures for emergency response addressing
transportation and security.
PRODUCT RESPONSIBILITY
Eldorado supports industry-wide efforts to steward the responsible
production of gold and precious metals, and we acknowledge that our
licence to operate includes demonstrating that our production takes
place in a manner that does not cause, support, or contribute towards,
unlawful conflict, human rights abuses, or breaches of international
humanitarian law. As members of the World Gold Council (WGC) and
the Mining Association of Canada (MAC), we are committed to operating
to leading social and environmental standards. Our operating mines
adhere to the:
ISO 14001 and OHSAS 18001 standards
●
● Conflict-Free Gold Standard
●
International Cyanide Management Code
PRODUCT HANDLING
All Eldorado products are sold in bulk to downstream refineries for
secondary treatment. We do not sell our products to the public and
do not require packaging. At Kişladağ and Efemçukuru, doré is sold
and transported to precious metals refineries to be further processed
into pure (99.9%) metal. At Efemçukuru and Stratoni, metal concentrates
are transported to offshore smelting facilities for further refinement.
As 100% of Eldorado’s metal products are sold to downstream refineries
for further processing, we do not conduct recycling or reclamation of
our products.
Gold pour at Kişladağ, Turkey.
(1) www.gold.org/history-and-facts/facts-about-gold
(2) www.unece.org/trans/danger/publi/adr/adr_e.html
ELDORADO GOLD YEAR IN REVIEW 2016
19
OUR BUSINESSELDORADO GOLDYEAR IN REVIEWOUR OPERATIONSOUR APPROACHMATERIAL TOPICS Our Operations
Eldorado has a portfolio of high-quality assets in prospective
jurisdictions, including Turkey, Greece, Brazil and Romania.
The quality of these assets positions Eldorado as an industry
leader when measuring our cash operating costs.
Efemçukuru gold mine, Turkey.
20
ELDORADO GOLD YEAR IN REVIEW 2016
Eldorado also holds 100% ownership of the following two assets:
● Vila Nova – an open-pit iron ore mine located in Amapá State
in northern Brazil. It is currently on care and maintenance pending
a recovery in iron ore prices.
● Sapes project – a high-grade epithermal gold deposit located
in northeastern Greece near Eldorado’s Perama Hill project. We
are currently assessing the project and will determine the optimal
project scope after further drilling.
Our Assets
3 operating mines
Kişladağ, Efemçukuru and Stratoni
Kişladağ
Efemçukuru
Stratoni
2 projects in construction
Skouries and Olympias
Skouries
Olympias
3 projects in evaluation
and development
Tocantinzinho, Certej and Perama Hill (1)
Tocantinzinho
Certej
Perama Hill
(1) Perama Hill is currently on care and maintenance pending receipt of the EIA permit.
ELDORADO GOLD YEAR IN REVIEW 2016
21
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS Operating Mines
KIŞLADAĞ
Kişladağ is our flagship gold mine and the largest gold mine in Turkey. It is a low-grade,
bulk-tonnage, open-pit operation that uses heap leaching for gold recovery. After leaching
and recovery, doré produced at the site’s refinery is transported to Istanbul and sold to local
refineries for further processing before being sold on the Istanbul Gold Exchange.
1997
2003
2005
2006
2013
2014
Identified deposit
and began in-depth
exploration
Received EIA
Began
construction
Produced first doré
Certified under the
International Cyanide
Management Code
Poured two millionth
ounce of gold
2016 HIGHLIGHTS
2016 PERFORMANCE
Gold production in 2016 was lower than anticipated
due to slower than expected leach rates from ore
mined earlier in the year. While gold production
improved in the final quarter, leach pad inventory
levels over the year increased by approximately
35,500 ounces. A reduction in leach pad inventory
levels occurred during the fourth quarter due to
the installation of new leach trains. Cash operating
costs were lower year over year as a result of the
higher head grade. Capital expenditures for the
year included capitalized waste stripping, leach pad
construction and mine equipment overhauls, along
with various process improvements.
2016 SUSTAINABILITY HIGHLIGHTS
QUICK FACTS
Location
Uşak Province, Turkey
Deposit
Gold porphyry
Ownership
100% Eldorado
Mining/Processing
Open-pit/Heap leach
Life of mine
17 years, based on mining
of 13 Mtpa (1)
● Reduced the number of lost-time and recordable
Employees/Contractors
injuries, including injury frequency rates
1,102
●
Improved incident reporting and job safety
analysis, increasing hazard awareness and
employee disclosure of near-miss events
● Completed the first “Large Scale Accident
Prevention Report” in accordance with Turkey’s
Legislation on Reducing Major Industrial Accident
Risks (BEKRA) (2)
Certifications
ISO 14001 certified
OHSAS 18001 certified
International Cyanide Management
Code certified
16,565,254
Tonnes to leach pad
0.80 g/t
Average grade
211,161 oz
Gold produced
211,284 oz
Gold sold
$474/oz
Cash operating costs
$488/oz
Total cash costs
$263.2 M
Gold revenues
$39.8 M
Sustaining capital expenditure
(1) Based on current proven and probable reserves.
(2) BEKRA puts the European Union’s Seveso Directive into force, aiming to prevent major accidents involving
dangerous substances and limiting the consequence of any accidents on society and the environment.
22
ELDORADO GOLD YEAR IN REVIEW 2016
EFEMÇUKURU
Efemçukuru is a high-grade underground gold operation located approximately 20 kilometres
southwest of Izmir in western Turkey. It uses gravity circuits followed by flotation to produce a
flotation concentrate and a gravity concentrate. A very small amount of doré is also produced
annually, which is transported to Istanbul and sold to a local refinery.
1992
Deposit identified
2005
2008
2011
2014
2016
Received positive
EIA certificate
Started
construction
of the mine
Produced first
concentrate
Increased mine
throughput to
435 ktpa
Increased process
throughput to
472 ktpa
QUICK FACTS
Location
Mining/Processing
Employees/Contractors
Izmir Province, Turkey
Underground/Flotation
766
Deposit
Epithermal vein
Ownership
100% Eldorado
Life of mine
12 years (1)
Certifications
ISO 14001 certified
OHSAS 18001 certified
2016 PERFORMANCE
2016 SUSTAINABILITY HIGHLIGHTS
Efemçukuru met its planned production and cost
guidance in 2016. Gold production was consistent
year over year as higher milled tonnes and recoveries
compensated for lower average treated head
grade. Lower cash operating costs were the result
of continued cost-reduction initiatives. Capital
expenditures included costs related to underground
development, the Kestane Beleni exploration drift and
the tailings dam expansion.
● Recertified under the Occupational Health and
Safety (OHSAS 18001) and Environmental
(ISO 14001) management system standards
● No major environmental incidents or
non-compliances
● Completed the first “Large Scale Accident
Prevention Report” in accordance with BEKRA
2016 HIGHLIGHTS
476,528
Tonnes milled
7.40 g/t
Average grade
98,364 oz
Gold produced
99,744 oz
Gold sold
$514/oz
Cash operating costs
$530/oz
Total cash costs
$125.4 M
Gold revenues
$23.5 M
Sustaining capital expenditure
(1) Based on current proven and probable reserves.
ELDORADO GOLD YEAR IN REVIEW 2016
23
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS STRATONI
Stratoni is an underground, silver-lead-zinc mine located in the Halkidiki Peninsula in northern
Greece. It uses a multi-stage flotation process to extract a lead-silver concentrate and a zinc
concentrate, which is then shipped from the Stratoni and Thessaloniki ports and sold to
overseas refineries.
1996
2003
2004
2005
2011
2012
TVX Gold
purchased Stratoni
TVX Gold
closed Stratoni
Operation passed to
Greek State and then to
European Goldfields (EGU)
EGU restarted
operations at Stratoni
Received EIA
Eldorado acquired
Stratoni via EGU
2016 HIGHLIGHTS
2016 PERFORMANCE
2016 SUSTAINABILITY HIGHLIGHTS
Concentrate tonnes produced at Stratoni were
20% higher year over year due to increased mill
throughput and higher zinc grade. Improved lead
and zinc prices resulted in a higher average realized
price for concentrate and improved profitability year
over year. Sustaining capital expenditures for the year
included new mine mobile equipment and upgrades
to the processing plant, water treatment circuit and
the analytical laboratory.
● Obtained Road Traffic Safety (ISO 39001)
and Energy (ISO 50001) management
system certifications
● Finalized and published an online environmental
monitoring database
● Successfully transitioned to a 24/7 operation,
improving efficiency and production rates
QUICK FACTS
Location
Mining/Processing
Certifications
Halkidiki Peninsula, Greece
Underground/Flotation
ISO 14001 certified
Deposit
Life of mine
ISO 39001 certified
Silver-lead-zinc carbonate
replacement
A little more than 1 year (1)
ISO 50001 certified
Employees/Contractors
OHSAS 18001 certified
Ownership
95% Eldorado, 5% Aktor
629
(1)
The Mavres Petres mine currently has a life of approximately 18 months based on the known proven and probable reserves. Geological potential exists
to extend the mine life at Mavres Petres by delineation of additional resources. In 2016, the Company initiated a three-year mine development and
drilling program for this purpose at an anticipated total cost of $25 million.
184,963 t
Ore processed
6.1%
Lead grade
10.2%
Zinc grade
48,394 t
Concentrate produced
42,655 t
Concentrate sold
$804/t
Cash operating costs
$40.6 M
Concentrate revenues
$3.2 M
Sustaining capital expenditure
24
ELDORADO GOLD YEAR IN REVIEW 2016
Construction Projects
OLYMPIAS
Olympias is a pre-existing gold-silver-lead-zinc mine located in the Halkidiki Peninsula in
northern Greece. It has very high gold grades and an ore body that will allow for underground
mining rates of up to 1 million tonnes per annum.
2011
2012
2013
2015
2016
EIA received for
Kassandra Mines
Acquired from EGU
Began Phase I
retreatment
Began Phase I
development
Completed Phase I
retreatment
2017 Q1
Planned Phase II
commissioning
QUICK FACTS
Location
Mining/Processing
Halkidiki Peninsula, Greece
Underground/Flotation
Deposit
Gold-silver-lead-zinc
carbonate replacement
Ownership
95% Eldorado, 5% Aktor
Life of mine
25+ years (1)
Employees/Contractors
1,235
Certifications
ISO 14001 certified
ISO 39001 certified
ISO 50001 certified
OHSAS 18001 certified
(1) Based on current proven and probable reserves and dependent on timing of conversion from Phase II to Phase III.
DEVELOPMENT APPROACH
Phase III (~2022 onwards)
Eldorado is developing Olympias in three phases. Commissioning
of Phase II is targeted for Q1 2017.
Phase I (2013–2016)
Phase I was an environmental clean-up of previously mined tailings and
included the refurbishment of the processing plant and underground
mine. Tailings retreatment began in 2012, produced approximately
20,000 ounces of gold per year, and is now complete. Environmental
reclamation of the old Olympias tailings management facility is ongoing.
Phase II (2017–2022)
Phase II involves processing ore from the underground through a
refurbished mill using a flotation process to produce three concentrates:
lead-silver, zinc and gold-bearing pyrite-arsenopyrite. Phase II production
is estimated to be approximately 85,000 payable ounces of gold per year
plus approximately 14,000 tonnes of lead, 1.2 million ounces of silver
and 14,000 tonnes of zinc.
Phase III involves a production ramp-up to an estimated 170,000 payable
ounces of gold per year plus significant byproduct credits. Designs are
currently under development with engineering ongoing for a new mill site
in the adjacent Stratoni Valley.
2016 REVIEW
Underground mine development and access rehabilitation continued
at Olympias in 2016 in readiness for commencement of underground
ore production and mill commissioning in the first quarter of 2017.
3,680 metres of development and rehabilitation was completed during
the year together with 21,400 metres of orebody definition drilling.
Construction of the initial stage of the new Kokkinolakas tailings
management facility (TMF) advanced substantially and commercial
production is expected in the second half of 2017.
ELDORADO GOLD YEAR IN REVIEW 2016
25
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS SKOURIES
Skouries is a high-grade gold-copper porphyry deposit located in the Halkidiki Peninsula in
northern Greece. It will operate as an open-pit and underground mine for about nine years,
followed by approximately 15 years of underground mining.
2006
EGU prepared
feasibility
study
2011
2012
2013
2015
Received
positive
EIA certificate
Eldorado
acquires Skouries
via EGU
Began
construction
Began prefeasibility
study of
underground mine
2016
Conducted ongoing
prefeasibility, feasibility
and basic engineering
studies of underground
mine, tailings facilities
and LOM mining options
2019
Production
target
QUICK FACTS
Location
Halkidiki Peninsula, Greece
Deposit
Gold-copper porphyry
Ownership
95% Eldorado, 5% Aktor
Mining/Processing
Open-pit and underground/
Gravity circuit and flotation
Life of mine
24 years (1)
Employees/Contractors
334
Certifications
ISO 14001 certified
ISO 39001 certified
ISO 50001 certified
OHSAS 18001 certified
DEVELOPMENT APPROACH
2016 REVIEW
Development activities were suspended at Skouries in early 2016 due
to delays in the issuance of routine permits and licences by the Greek
permitting authorities. The project remained on care and maintenance
until early June, when construction teams were remobilized following
approval of the site’s updated Technical Study. Activities such as earthworks,
completion of building foundations, and enabling works for the tailings
management facility were prioritized to take advantage of the summer
weather, and basic engineering is now underway to design a filtered tailings
plant. Following internal reviews and engineering studies, a decision was
made to convert waste management at Skouries from thickened tailings
to industry best-practice filtered tailings, which will ultimately reduce the
surface footprint and mine reclamation costs at closure.
Eldorado plans to develop Skouries in two phases.
Phase I (2019–2027)
Phase I will be a combination of open-pit and underground mining over
a nine-year period, producing an expected total of 1.4 million ounces of
gold and 620 million pounds of copper at average cash operating costs of
-$255 per ounce of gold due to copper byproduct credits. (2) Development
capital for Phase I is budgeted at $710 million.
Phase II (2028–2042)
Phase II will involve underground mining for a 15-year period
once Phase I is complete. Total production during this phase is expected
to be 1.7 million ounces of gold and 850 million pounds of copper at
average cash operating costs of $165 per ounce of gold due to copper
byproduct credits. (2) Development capital during Phase II is budgeted
at approximately $460 million.
(1) Based on current proven and probable reserves.
(2) Assuming a $6,000/tonne copper price.
26
ELDORADO GOLD YEAR IN REVIEW 2016
Development Projects
TOCANTINZINHO
Tocantinzinho is a non-refractory intrusion-related gold deposit located in the
prolific Tapajós region of Pará State in northern Brazil.
2016 REVIEW
Eldorado applied for installation licences for the site, road and power line and
initiated basic engineering for Tocantinzinho during 2016. Contingent upon
completion of permitting and Board approval, construction will commence.
Currently, total development capital costs are estimated at $441 million.
QUICK FACTS
Ownership
100% Eldorado
Life of mine
10 years (1)
Mining/Processing
Employees/Contractors
Open-pit/Flotation CIP
55
2008
Formed option
agreement
2010
Acquired
Tocantinzinho
project
2012
Approval of
preliminary EIA
2015
Positive Feasibility
Study
CERTEJ
Certej is an epithermal gold-silver project located in the Apuseni Mountains
of Transylvania in western Romania. The deposit extends from surface and
will operate as an open-pit mine.
2016 REVIEW
Engineering work continued during 2016 on metallurgical testwork
and trade-off studies with a focus on further optimizations to improve
the project and increase the level of engineering confidence.
QUICK FACTS
Ownership
80.5% Eldorado, 19.25%
Minvest S.A., 0.25%
minority shareholder
Mining/Processing
Open-pit/Flotation,
oxidation, CIL
Life of mine
15 years (1)
Employees/Contractors
321
2000
EGU acquired stake
2012
2013
2014
2015
Acquired project
via EGU
10% increase in
gold resources
Updated
Technical Report
Positive Feasibility
Study
(1) Based on current proven and probable reserves.
ELDORADO GOLD YEAR IN REVIEW 2016
27
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS PERAMA HILL
Perama Hill is an epithermal gold-silver deposit located in the Thrace region
of northern Greece.
2016 REVIEW
Perama Hill was placed on care and maintenance in 2016 pending receipt
of the project’s EIA permit. Our focus in 2017 is to maintain community
relations and work closely with regional stakeholders to grow local support,
continue maintenance of the site’s geology facilities, and to update the
capital and operating cost base.
QUICK FACTS
Ownership
100% Eldorado
Life of mine
8 years (1)
Mining/Processing
Employees/Contractors
Open-pit/Whole ore CIL
13 (2)
1995
Deposit identified
2008
2012
Acquired Perama Hill
via Frontier Pacific
Received approval of
preliminary EIA
2013
Submitted EIA
2016
Put on care and
maintenance
Tocantinzinho,
Brazil
Certej,
Romania
Perama Hill,
Greece
(1) Based on current proven and probable reserves.
(2)
Includes Perama Hill and Sapes.
28
ELDORADO GOLD YEAR IN REVIEW 2016
Exploration Highlights
51,000 m
drilled by Eldorado in 2016
$35 M
exploration budget in 2017
80,000 m
planned drilling for 2017
16 projects
drilled in 2016
We invested a total of $26.2 million on exploration programs in 2016. Exploration drilling totalled
51,000 metres and was conducted at 16 projects including early-stage, brownfields and in-mine
programs in Turkey, China, Brazil, Greece, Romania and Serbia.
TURKEY
ROMANIA
At Efemçukuru, surface drilling programs tested extensions to previously
defined mineralized zones within the Kokarpinar vein system. Greenfields
reconnaissance exploration programs evaluated grassroots targets in
the eastern Pontide belt and associated with Cenozoic volcanic centres
in western Turkey.
In Romania, drilling was conducted at the Brad, Sacaramb, Certej North
and Bolcana projects. At Sacaramb, drillholes targeted along-strike
extensions of historically mined high-grade vein systems. Two drillholes
tested deeper levels of the Bolcana porphyry system, and porphyry and
epithermal targets peripheral to the Bolcana system were tested on the
adjacent Certej North licence.
CHINA
Prior to the close of the transactions, exploration drilling was conducted
from underground platforms at White Mountain, testing extensions to the
North and Far North Zones. Surface drilling programs were completed on
the Xiaoshiren licence and the White Mountain licence. At Tanjianshan,
exploration drilling was limited to testing step-out targets at the Xijingou
deposit and at the Dushugou, Qingshan and Qinlongshan occurrences.
SERBIA
In Serbia, the Company completed the acquisition of the KMC project
from Euromax Resources Ltd. and acquired five new early-stage licences.
Drilling at KMC tested the Copper Canyon, Gravina and Shanac areas.
A large gold-rich magnetite skarn system was identified at Shanac, and
will be further drilled in 2017.
BRAZIL
In Brazil, option agreements were signed for the large Borborema and
Nazareno licence areas. Mapping and geochemical sampling programs
were conducted on both of these licence areas as well as at the
Mara Rosa project. An initial drilling program was completed on the
Vulture target at Borborema.
GREECE
Exploration in Greece included drilling programs at the Fisoka porphyry
target and at the Rian prospect near the Skouries deposit. At Mavres
Petres, an exploration crosscut was driven into the hangingwall of the
Stratoni Fault, enabling systematic underground exploration and definition
drilling of the untested down-dip and along-strike extensions to the orebody
beginning in early 2017.
Drilling at Efemçukuru, Turkey.
ELDORADO GOLD YEAR IN REVIEW 2016
29
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS Our Approach to Responsible Mining
For Eldorado, operating responsibly means protecting the environment, providing safe
workplaces for our people, maintaining good relationships with our stakeholders and
investing in infrastructure, economic development, health and education in the communities
where we operate. From exploration to reclamation, we anticipate our impacts and monitor
our progress in order to achieve the high standards we have set for ourselves.
We practise this commitment to excellence everywhere we do business.
30
ELDORADO GOLD YEAR IN REVIEW 2016
Plant nursery at Olympias, Greece.
Guiding Principles
Our guiding principles underpin all that we do:
Enrich Lives
We aim to create real, lasting
and tangible benefits for the
people whose lives our
operations touch.
Operate Safely
People come first. We
implement industry best practices,
adhere to all safety regulations and
have strict management systems
in place to promote a culture
of safety wherever
we operate.
Act with Integrity
We are committed to being
honest, straightforward
and accountable in all our
business practices.
Engage Openly
We believe that clear,
comprehensive disclosure,
high standards of corporate
governance and ethical
business practices are the
only ways to do business.
Behave
Responsibly
We strive to demonstrate that
mining can be done responsibly.
We do this by emphasizing
environmental stewardship
at every stage of the
project life cycle.
OUR GUIDING FRAMEWORKS AND COMMITMENTS
To support our internal policies and strict controls on ethical conduct,
health and safety, and environmental and social responsibility, we
participate in several industry associations and global initiatives that
establish standards and guidelines for best practices in these areas.
Many of these frameworks have been developed in consultation with
non-governmental organizations, academics, regulators and other
stakeholder groups, and provide a means to verify, measure and
report on our performance. These include:
CERTIFICATIONS, STANDARDS, AND COMMITMENTS
INDUSTRY ASSOCIATIONS
We report under the:
We are members of:
● European Association of Mining Industries,
Metal Ores & Industrial Minerals (Euromines)
●
International Cyanide Management Institute
● Mining Association of Canada
● Prospectors & Developers Association of Canada
● World Gold Council
● Carbon Disclosure Project’s (CDP) Climate Change Report
● CDP’s Water Report
● GRI’s G4 Sustainability Reporting Guidelines
We are certified to the:
●
●
●
International Cyanide Management Code
ISO 14001 Environmental Management System Standard
ISO 50001 Energy Management System Standard (1)
● WGC’s Conflict-Free Gold Standard
● OHSAS 18001 Occupational Health and Safety Management
System Standard
We are guided by the:
● Voluntary Principles on Security and Human Rights
● United Nations Global Compact
● United Nations Guiding Principles on Business and Human Rights
● MAC’s Towards Sustainable Mining program
(1) Stratoni, Olympias and Skouries mines only.
ELDORADO GOLD YEAR IN REVIEW 2016
31
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS SPOTLIGHT: TOWARDS SUSTAINABLE MINING
UNITED NATIONS GLOBAL COMPACT COMMUNICATION ON PROGRESS
In July 2016, Eldorado joined the UNGC. This Report represents our first
Communication on Progress of actions we have taken to advance the UNGC Ten
Principles in the areas of human rights, labour, environment and anti-corruption.
Please see the GRI Content Index on page 72 for details of how this Report speaks
to our progress towards each of the UNGC Ten Principles.
Reclamation in action at Kişladağ, Turkey.
In late 2015, Eldorado began the process of aligning
operations with the Mining Association of Canada’s
Towards Sustainable Mining (TSM) program. This
is a voluntary initiative, as the programs and practices
prescribed by TSM can strengthen existing practices and
enable us to demonstrate leadership by:
• Engaging with communities
• Driving world-leading environmental practices
• Committing to the safety and health of employees
and surrounding communities
We initially identified four of the TSM Assessment
Protocols to prioritize for implementation:
• Tailings Management
• Community Outreach
• Safety and Health
• Crisis Management and Communications Planning
Site reviews found that our existing practices already reflect
many of the guidelines suggested by TSM.
In 2016, we strengthened our commitment to TSM and
set new targets to advance each of our site’s performance
scores against all six of the TSM Protocols. Site gap
assessments will be conducted in early 2017 to set a
baseline for measuring performance, and by year end
each site will be required to demonstrate what actions
were completed to further improve TSM scores against
each Protocol.
Our development projects are also incorporating the TSM
Assessment Protocols into their management programs.
32
ELDORADO GOLD YEAR IN REVIEW 2016
UN Sustainable Development Goals
In September 2015, the UN member states adopted a set of Sustainable
Development Goals (SDGs), representing a plan of action for equitable,
socially inclusive and environmentally sustainable economic development.
The SDGs were designed to provide a common framework for navigating
the most urgent economic, social and environmental challenges of our
generation, including the respective roles for government and industry
in achieving sustainable development.
The mining industry, including Eldorado, has the opportunity and
potential to positively contribute to all 17 of the SDGs. Our projects and
sites are located across a variety of remote, ecologically sensitive and
SDG #3 – GOOD HEALTH AND WELL-BEING
Ensure healthy lives and promote well-being for all at all ages.
less-developed areas. Yet each of our sites creates jobs, spurs innovation
and provides investment and infrastructure over mine lives that can
continue well over 20 years.
Below we have mapped Eldorado’s priorities for achieving the SDGs,
which are aligned with the feedback obtained during our materiality
analysis (see page 37), the social, environmental and economic impacts
our stakeholders are interested in, and PricewaterhouseCoopers LLP’s
SDG Selector tool. (1)
SDG RELEVANCE
ELDORADO’S ACTIVITIES TO ADDRESS THIS GOAL
● There are significant occupational health and
safety risks associated with mining
● Promoting a strong, Company-wide
workplace health and safety culture
● Offering healthy canteen food options
and following good hygiene protocols
● Mining can occur in remote locations with limited
● Certifying Occupational Health and
access to healthcare
● Mining can take place in areas exposed to tropical
disease (e.g. Zika virus or malaria)
● The mining workforce can be exposed to various
hazards, illnesses or diseases as a result of
employment in this sector, such as respiratory
disease from air pollutants, carpal tunnel
syndrome and noise-induced hearing loss
Safety Management Systems at all sites
to drive safety performance
● Certifying Environmental Management
Systems at all sites to prevent harmful
discharges or emissions
● Continuing our focus on road safety
both in and around our sites
● Conducting annual physical
examinations and employee health
check-ups at sites
● Conducting regular occupational health
and safety training for all site employees
● Conducting regular employee testing
for drug and alcohol use at all sites
● Continuing support and investment
in community health programs
and infrastructure
SDG #6 – CLEAN WATER AND SANITATION
Ensure availability and sustainable management of water and sanitation for all.
SDG RELEVANCE
ELDORADO’S ACTIVITIES TO ADDRESS THIS GOAL
● Mining is a significant user of water
● Recycling water at all sites
● Mining can help bring clean water to
● Treating all contact water prior
remote areas
to discharge
● Conducting research and engineering
projects to improve water efficiency and
reduce water consumption
● Conducting comprehensive monitoring
of water sources (upstream and
downstream) at all sites
● Collaborating with community and
government representatives to monitor
water at sites
● Publicly disclosing annual water
reporting (e.g. the CDP’s Water
Questionnaire)
● Publishing Eldorado’s Environmental
Policy, which sets out a commitment
to reduce water use, recycle and
reuse water wherever possible, and to
discharge water in accordance with
water quality standards
(1) The SDG Selector tool summarizes which SDGs are relevant to a business based on their industry, country or theme (People, Prosperity, Planet, Peace, Partnership). The tool is based on business
leader responses to which SDGs they thought their business had an impact on, and which might be an opportunity going forward. Country SDG selection is based on PwC’s Global Business
Navigator tool, taking over 200 data sources to score a country’s performance against each SDG target. For more details: https://dm.pwc.com/SDGSelector.
ELDORADO GOLD YEAR IN REVIEW 2016
33
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS SDG #8 – DECENT WORK AND ECONOMIC GROWTH
Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all.
SDG RELEVANCE
ELDORADO’S ACTIVITIES TO ADDRESS THIS GOAL
● Mining generates direct employment for
● Providing well-paying local employment
employees and contractors
for our communities and partners
● Local procurement takes place throughout the
mining life cycle, which offers the potential for
significant economic multipliers
● Mining can help to create new businesses
and partnerships to improve local supply
capacity, and help strengthen and diversify
local economies
●
Identifying and working with
local suppliers
● Training and supporting local businesses
to build capacity and help them obtain
the permits, licences or additional skills
needed to work with our sites
● Collaborating with local chambers of
commerce to drive economic growth in
other sectors
SDG #9 – INDUSTRY, INNOVATION AND INFRASTRUCTURE
Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.
SDG RELEVANCE
ELDORADO’S ACTIVITIES TO ADDRESS THIS GOAL
● Mining requires transport, water, energy,
and information and communication
technology infrastructure
● Through investment in local infrastructure
development, mining regularly can be a
significant source of capital investment for
local society
● Prioritizing local procurement and
training of suppliers to upgrade
expertise, capacity and the quality of
services offered
● Co-funding and investing in
local infrastructure and shared
municipal services
● Mining can also contribute to innovation
through research and development, and
through local procurement
● Collaborating and creating partnerships
with local businesses and universities to
promote research and development
SDG #13 – CLIMATE ACTION
Take urgent action to combat climate change and its impacts.
SDG RELEVANCE
ELDORADO’S ACTIVITIES TO ADDRESS THIS GOAL
● Mining companies can help by reducing their
● Undertaking energy-efficiency projects
●
carbon footprint
to reduce emissions
● Companies can work collaboratively with
stakeholders to enhance abilities to adapt to
climate change and integrate measures into
policies and strategies
● Measuring and reporting direct
(Scope 1) and indirect (Scope 2)
greenhouse gas emissions
Implementing Crisis Management
Plans in accordance with the Towards
Sustainable Mining program, to improve
our response to emergency situations
such as fires or floods
● Through our membership in the
Mining Association of Canada,
publicly supporting carbon pricing
34
ELDORADO GOLD YEAR IN REVIEW 2016
Corporate Governance and Transparency
Central to Eldorado’s record as a trusted operator is a commitment to ethical business practices and
high standards of corporate governance. We recognize the importance of having an integrated
approach to managing our operations, risks and relationships.
BOARD OF DIRECTORS
CORPORATE DISCLOSURE AND TRANSPARENCY
Our governance systems are designed so that we consistently evaluate
and effectively manage our risks; this, in turn, helps us stay focused on
our long-term planning, decision-making and communication. We believe
that clear, comprehensive disclosure and open communication with our
stakeholders will continue to encourage confidence in the legitimacy and
honesty of our business practices.
Governance Policies
Our Code of Business Conduct and Ethics, Anti-Bribery and Corruption
Policy, and Insider Trading Policy reinforce our standards and values
and outline our expectation that all employees and suppliers operate in
accordance with the highest standards of legal and ethical behaviour.
We also outline our commitments to protecting the environment and the
safety of our people and neighbours in our Environmental and Health and
Safety policies. These were last updated in 2016. In early 2016, we also
published a Human Rights Policy outlining our commitment to respect and
protect human rights everywhere we operate.
For more information, visit
www.eldoradogold.com/about-us/governance
Sustainability Factors in Compensation
Regular employee performance reviews are performed at all our sites,
typically on an annual basis, although some sites conduct monthly
performance reviews. Health, safety and environmental key performance
indicators and social performance measures are embedded into performance
reviews that are linked to our senior management compensation.
One of our underground team
at Efemçukuru, Turkey.
Governance at Eldorado is headed by our Board of Directors. The Board of
Directors’ terms of reference explicitly require the Chairman of our Board
and all members of our Board committees to be independent. Together,
the Board works with senior management to set long-term goals, develop
strategy and monitor Eldorado’s progress toward achieving its goals while
providing independent and objective advice. The Board also regularly
evaluates our principal business risks and monitors the effectiveness of our
risk management process.
Our Board is composed of the following four standing committees: Audit,
Compensation, Corporate Governance & Nominating and Sustainability.
The mandate of the Sustainability Committee is as follows.
SUSTAINABILITY COMMITTEE
The Sustainability Committee oversees our policies, programs and
practices in the areas of environment, health, safety, community
relations and security. The Committee seeks assurance that Eldorado
consistently promotes ethical, transparent and responsible behaviour, and
meaningfully engages its stakeholders.
The Sustainability Committee receives detailed quarterly reports from all
sites and works with Eldorado leadership to suggest directives for senior
management to pursue. The Committee receives a briefing within 24 hours
if a fatality, serious lost-time injury, significant environmental incident
or anything that is material or legally reportable occurs. The Board of
Directors, including members of the Committee, periodically visit our sites
for first-hand validation and interaction with our operations personnel.
For more information on our Board committees, visit
www.eldoradogold.com/about-us/leadership/board-committees.
Senior Management Oversight
Eldorado operates with a decentralized yet coordinated business
infrastructure. Our senior management team in Vancouver works closely
with management teams in each of our operating jurisdictions, providing
a clear line of sight to each operation.
Ultimate accountability for social and environmental performance rests
with our President & Chief Executive Officer, while day-to-day oversight
is shared at the corporate level by the Chief Operating Officer and the
Vice President Investor Relations & Corporate Communications.
In addition to frequent site visits, our senior management team
aims for open communication and appropriate oversight through
weekly reporting on safety, health, environment and community
performance from mine General Managers and country Vice Presidents
& General Managers.
ELDORADO GOLD YEAR IN REVIEW 2016
35
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS Material Topics
We conduct an annual materiality assessment to identify the key topics and
aspects that should receive attention in this Report. Although we have a clear
understanding of what is important from an internal perspective, the annual
materiality assessment process enables us to consider external views when we
are identifying and selecting the sustainability topics to report on.
36
ELDORADO GOLD YEAR IN REVIEW 2016
On site at Efemçukuru, Turkey.
Materiality
Beyond helping Eldorado decide on the key topics to highlight in its annual
sustainability reporting, the materiality exercise creates additional value
because it:
● Adds purpose and structure to our internal and external
engagement initiatives
● Encourages new levels of collaboration among our senior management
and stakeholders on the topics that matter most to them
● Provides direction and validation to the importance of new sustainability
initiatives and strategies we adopt
●
Improves our understanding and responses to stakeholder needs
and concerns
OUR APPROACH
In 2016 we updated our methodology to determine the material topics
to include in our Report, while maintaining adherence to the GRI G4
materiality requirements and the GRI Principles for Defining Report
Content. An overview of our approach is outlined below:
1. Design materiality assessment
We defined the purpose and objective of the materiality assessment,
determined information sources, selected stakeholders to
participate, and designed interview questionnaires for internal
and external stakeholders.
A student inspects some
ore on a mine tour in
Halkidiki, Greece.
2. Identify material topics
We reviewed prior-year materiality assessment results, peer reports,
industry reports, internal documentation, records and other sources
to determine and summarize the most important social, environmental
and economic topics and priorities affecting Eldorado in 2016.
3. Prioritize material topics internally
We conducted online interview-questionnaires with Eldorado’s
senior executives and management across Corporate, regions and
sites, including professionals responsible for overseeing site social,
environmental and economic performance. Respondents were asked
to rank the material topics and priorities during the year based on
their relevance, level of importance and impact on our stakeholders
and Company.
4. Review and validate results externally
We aggregated and reviewed the results of our internal materiality
assessment with a selection of Eldorado’s external stakeholders, and
obtained feedback on additional topics and priorities to be highlighted
in this Report.
5. Finalize and publish results
We reviewed the results of our materiality assessment with Eldorado’s
leadership, decided on the final categories and then prioritized material
topics for reporting.
We use the GRI G4 definition of materiality to determine
the topics to include in this Report. A topic is material if,
in the view of senior management and/or key stakeholder
groups, it is of such importance that it could in the short,
medium or long term:
● have a substantial influence on the assessments and
decisions of our stakeholders, or
●
significantly impact Eldorado’s economic,
environmental and social performance.
ELDORADO GOLD YEAR IN REVIEW 2016
37
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS RESULTS
The results of our 2016 materiality assessment are outlined in the following
Materiality Matrix.
Response rate to the 2016 Materiality Assessment
Interview-Questionnaire:
Topics that significantly increased in materiality when compared to 2015
results include: health and safety performance, permits & licences, and the
political climate in countries of operation. Topics that significantly decreased
in materiality from 2015 include biodiversity & reclamation, energy use, and
water use & management.
REPORTING THRESHOLD
Moderate-to-higher material topics and priorities identified in the Matrix
form the main content of this Report, where we describe our management
approach and provide performance data and analysis. For topics of lower
materiality, we describe our management approach only.
● 91% from internal stakeholders
● 73% from external stakeholders, comprising:
–
Industry associations (11%)
– Consultants (26%)
– Peers (21%)
–
Institutional investors (5%)
– Government (15%)
– Not-for-profit organizations (NGOs) (11%)
– Other (11%)
Figure 1: Material Topics/Aspects
I
H
G
H
E
R
I
M
P
O
R
T
A
N
C
E
T
O
S
T
A
K
E
H
O
L
D
E
R
S
L
O
W
E
R
Health and Safety
Community & Government Support
Permits & Licences
Stakeholder Engagement
Local Employment and Procurement
Water Use & Management
Waste Management
(including Tailings)
Human Rights
Regional Economic
Development
Training & Skills Development
Emergency Preparedness
Political Climate in Countries of Operation
Complaints & Grievances
Community Investment
Metal Production
Operational Costs
Corporate Reputation
Bribery & Corruption
Transparency of Payments to Government
Relationships with Labour Unions
LOWER
INFLUENCE ON BUSINESS
HIGHER
■ Moderate-to-higher material topic
■ Lower material topic
38
ELDORADO GOLD YEAR IN REVIEW 2016
Material topics are captured within the following chapters of this Report:
OUR ECONOMIC AND
OPERATIONAL PERFORMANCE
● Operational costs
● Metal production
KEEPING OUR PEOPLE SAFE
● Health and safety performance
● Training & skills development
● Emergency preparedness
MINIMIZING OUR
ENVIRONMENTAL FOOTPRINT
● Water use & management
● Waste management
(including tailings)
STRENGTHENING OUR COMMUNITY RELATIONS
RUNNING RESPONSIBLE OPERATIONS
● Community & government support
● Permits & licences
● Stakeholder engagement
● Political climate in countries of operation
● Local employment and procurement
● Human rights
● Community investment
● Corporate reputation
● Complaints & grievances
● Bribery & corruption
● Regional economic development
● Transparency of payments to government
● Relationships with labour unions
Following the 2016 Materiality Assessment, a number of additional topics
and priorities were identified; however, given that they were of lower
materiality we did not include them in this Report. These topics are:
An employee attends a health
check-up at Kişladağ, Turkey.
● Biodiversity & reclamation
● Land acquisition & use
● Supply chain management
● Security standards
● Capital allocation & budgets (1)
Energy use, greenhouse gas emissions and cyanide management were also
identified as lesser material topics for reporting, but are briefly discussed
within the Environment section of this Report.
(1) For details on capital allocation and budgets, please see Eldorado’s MD&A and
Financials: www.eldoradogold.com/investors/financial-information/annual-reports.
ELDORADO GOLD YEAR IN REVIEW 2016
39
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS Our Economic and Operational Performance
SUSTAINING LONG-TERM ECONOMIC GROWTH
AND PERFORMANCE
We aim to build value for all those invested in us – from our employees
to our shareholders. We do this by discovering, acquiring and developing
quality gold assets in prospective jurisdictions. This has been our strategy
for the past 24 years and underpins our vision to build a sustainable, high-
quality business in the gold sector.
WHY THIS MATTERS
Eldorado is committed to building a sustainable, competitive business
that aims to benefit each of our stakeholders, from investors through
to host countries and communities. Our ability to operate at a profit
and return value to all our stakeholders is central to our contribution
to sustainable development.
Eldorado’s focus on building a sustainable, competitive business
stems from a commitment to the following four strategic priorities:
1. Quality assets – Our business is based on a portfolio of long-
life assets in prospective jurisdictions. The quality of our asset
base allows us to achieve long-term growth with high margins,
enhancing our ability to generate free cash flows and earnings
per share.
2. Operational excellence – We invest in new technologies and
training our people with the aim of increasing productivity,
reducing risk and operating to guidance year over year.
3. Capital discipline – Capital discipline underpins every
business decision we make. We consider all competing uses
of cash and prioritize capital for sustaining our operations and
developing our key projects. Our balance sheet strength is a
key competitive advantage, as it positions us to develop our
assets, take advantage of opportunities and withstand external
market pressures.
4. Accountability – We are committed to doing business honestly,
respecting our neighbours, minimizing our environmental impacts
and keeping our people safe. Operating this way is essential to
the sustainability of our business.
RESPONSIBILITY FOR ECONOMIC
AND OPERATIONAL PERFORMANCE
Operations teams located at each of our sites are responsible for the
day-to-day oversight, management and operation of our assets, with
each reporting directly to their mine General Manager and country
Vice President & General Manager, who in turn report to Eldorado’s Chief
Operating Officer (COO). The COO annually sets operational objectives and
targets, and reviews operational performance on a weekly basis.
Finance teams in each of our operating regions are responsible for
overseeing our economic performance and working with sites to ensure
production and development activities follow mine plans and budgets.
Regional finance teams report to Eldorado’s Corporate Controller, who in
turn reports to Eldorado’s Chief Financial Officer (CFO). The CFO annually
sets financial objectives and targets, and reviews progress against plans and
budgets on a monthly basis.
At Eldorado’s Corporate Office, the Vice President Corporate Development
and Executive Vice President Administration are responsible for overseeing
activities related to the acquisition or sale of assets by the Company.
Eldorado’s President & CEO is ultimately accountable for our economic and
operational performance and is responsible for reviewing annual objectives,
targets, budgets and plans, while working together with the Board of
Directors. The CEO and Board oversee the Company’s senior management
team who are responsible for the daily operations of the business.
Gold pour at Kişladağ, Turkey.
40
ELDORADO GOLD YEAR IN REVIEW 2016
OUR PERFORMANCE IN 2016
Table 1: Annual Operational and Financial Performance
(At December 31, 2016)
Operational
Gold produced (oz)
Average realized gold price ($/oz)
Cash operating costs ($/oz)
Total cash costs ($/oz)
All-in sustaining cash costs ($/oz)
Gold reserves (Moz)
Financial ($ millions unless otherwise noted)
Revenues (from all metals)
Gold revenues
Gross profit from gold mining operations
Adjusted net earnings
Net profit (loss) attributable to shareholders
Cash flow from operations (before changes in working capital)
Dividends paid (CDN$/share)
2016 (1)
2015
2014
486,025
1,253
579
621
900
19.3
650.2
605.9
203.5
47.4
(344.2)
142.0
0.00
723,532
1,168
552
606
842
24.9
863.3
823.8
230.0
13.2
(1,540.9)
192.3
0.02
789,224
1,266
500
557
779
25.9
1,067.9
980.9
382.7
138.7
102.6
342.9
0.02
We finished 2016 with an average realized gold price of $1,253, 7% higher
than in 2015. However, profit from gold mining operations (including
discontinued operations) fell year over year due to lower gold sales and
higher unit costs. The sale of our Chinese assets during the year and
lower gold production at Kişladağ led to a decrease in gold sales, which in
turn impacted our all-in sustaining costs that increased year over year to
$900 per ounce of gold sold. Revenues for the year (including discontinued
operations) were $650.2 million.
The sale of our Jinfeng, White Mountain and Tanjianshan mines and the
Eastern Dragon project in 2016 marked the end of Eldorado’s 11-year
history of operating in China. The Company realized net proceeds of
$881.6 million on the sale of our Chinese assets.
The cash acquired through the divestiture provides the Company with
the financial flexibility to advance our internal project pipeline, most
notably the Olympias and Skouries development projects in Greece. These
long-life, high-quality assets will further strengthen Eldorado’s operating
position in Europe and will provide a long-term source of gold production
and revenue.
(1) 2016 figures include both continuing and discontinued operations. Ounces produced
include production from tailings retreatment at Olympias.
ELDORADO GOLD YEAR IN REVIEW 2016
41
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS
Keeping Our People Safe
Safety is a core value at Eldorado and is fully ingrained in the way we do business. From planning
through to operations, we strive to reduce risk through elimination, substitution, engineering
controls, training procedures and protective equipment. Our managers are expected to lead by
example, and to prioritize and implement safe attitudes and initiatives to promote a culture of safety.
WHY THIS MATTERS
Health and safety in the workplace matters to everyone at Eldorado,
particularly given that the risks of working in heavy industry are inherent
across all our sites. Protecting the health and safety of our employees,
contractors and communities is therefore one of our biggest priorities and
a cornerstone of our operating philosophy.
High-risk and safety-sensitive activities include but are not limited to:
working at heights, handling and using explosives, exposure to hazardous
chemicals, working in confined spaces, operating heavy or mobile
equipment and driving vehicles. Health and safety also encompasses
industrial hygiene, which may include disease or injury resulting from
prolonged employee exposure to certain physical elements, such as heat,
noise or dust.
The core principles of Eldorado’s approach to health and safety are:
● Safe work practices go hand-in-hand with productivity
● Risks must be identified and controlled
●
Investing in education and training for our workforce
● Demonstrating empathy in leadership
● Continuously reviewing safety performance
to achieve improvements
RESPONSIBILITY FOR SAFETY
Everyone has a primary responsibility for their own and their colleagues’
safety. Health and Safety teams and site management at each of our
sites are responsible for the day-to-day oversight, implementation and
management of our Health and Safety policies, programs and activities.
Each team reports directly to their mine General Manager and country
Vice President & General Manager, who in turn report to Eldorado’s COO.
The COO annually sets safety objectives and targets, and reviews safety
performance on a week-to-week basis.
Eldorado’s President & CEO is ultimately accountable for our safety
performance. At the Board level, the Sustainability Committee has oversight
of all health and safety activities.
CREATING A SAFETY CULTURE
Our approach to health and safety is a balance between equipping
individuals with the skills to recognize hazards and the values to make the
right decisions, while ensuring that strong policies, procedures and systems
are in place to safeguard workplaces. We continue to strengthen our safety
culture by taking a holistic view towards safety leadership that incorporates
psychological aspects (how our people feel), behavioural aspects (what our
people do) and situational aspects (our policies, procedures and systems).
Through a global commitment to leadership and training, the identification
and mitigation of risks, and being prepared for and learning from incidents,
we continue to explore ways to make our workplaces safer.
HEALTH AND SAFETY MANAGEMENT SYSTEMS
Each of our operations has established a site-specific occupational health
and safety policy that is aligned with our corporate Health and Safety
Policy, and establishes requirements to monitor and report lead and lag
indicators. We have found site-specific approaches to be particularly
successful as they account for cultural attitudes towards safety and can
be targeted at areas of priority. Site-specific health and safety targets are
defined annually as part of the management review element of our health
and safety management systems.
To complement our internal systems, we use the internationally recognized
OHSAS 18001 Occupational Health and Safety Management System
Standard to help us better identify and manage safety risks and improve
our safety performance. Our Kişladağ and Efemçukuru mines in Turkey
and our Halkidiki assets in Greece are all independently certified to
OHSAS 18001.
100% of Eldorado’s operating mines and
construction projects have Occupational
Health and Safety Management Systems
certified to OHSAS 18001
Welding at Kişladağ, Turkey.
42
ELDORADO GOLD YEAR IN REVIEW 2016
TRAINING AND SKILLS DEVELOPMENT
Developing workforce capacity and conducting regular training across all
of our sites is an ongoing priority. The majority of our workforce comes
from local communities and regions, and they often have no prior mining
experience. We believe there are significant social and economic benefits
to building a local workforce and economy, and we invest in relevant
training and development initiatives to improve the productivity and safety
of our employees. We are proud of the low turnover rates across each of
our sites, as the retention of personnel (see page 64) is a great indicator of
both our Company performance and employee satisfaction.
All new recruits and interns at our facilities undergo training on safety,
accident prevention, environmental issues and Company procedures,
among other topics. Ongoing training priorities are defined based on job
requirements, performance evaluation notes and legal requirements. Even
at sites with a long mining history and a well-established workforce, such
as Kişladağ, we see the benefits of refresher training to improve employee
capacity, productivity, and health and safety performance.
Table 2: Total Hours of Employee Training by Region
Turkey
Greece
Brazil
Romania
Total
Employees
Supervisors
Executives
Contractors
Male Female
Male Female
Male Female
Male Female
Male Female
65,314
1,428
26,391
3,392
4,345
400
23,402
299
102
252
5,335
1,468
4,521
142
152
175
762
185
–
–
–
–
4,142
117
4,874
352
904
232
288
–
448
–
97,341
10,217
2,772
32,297
5,108
441
702
544
Table 3: Total Hours of Safety Training by Region
Employee training hours
Contractor training hours
Turkey
31,551
14,816
Greece
17,580
4,234
Brazil
165
3,876
Total:
149,422
Romania
6,226
–
Total:
Total
55,522
22,925
78,447
Training programs provided by Eldorado in 2016 included:
Governance – Eldorado policies, including Code of Business Conduct
and Ethics, Anti-Bribery and Anti-Corruption
Safety – General Safety Orientation, Underground Safety Orientation,
Hand Injuries, Use of Diphoterine, Working at Heights, Train the Trainer,
Five Point Safety System, Mine Rescue, Safe & Economic Driving,
Defensive Driving, Basic Principles of Fire & Fire Fighting, Emergency
Plan and Response, Hazard Awareness, Safe Use of Chemicals and
Contaminants, Energy Isolation and Permits
Health – Ambulance Driving Training, First Aid Training for
Fieldwork, CPR – AED, Training on Dust Sampling, Snake & Insect Bites,
Noise & Measurements
Technical – Software (AutoCAD, Datamine, Microsoft Office, SAP),
Analytical Methods, Preparation of Environmental Samples, Maintenance
& General Machinery Operation, Supply Chain Management, Technical
Field Training (e.g. geological modelling)
Management – Leadership Skills Development, Successful Team
Building, Business Management, 5S Lean Management
Environment – Coaching on ISO 14064 – 1 GHG, Verification, Solid
Waste Management – Solid Waste Characterization, Environmental
Licensing Project – Environmental Inspections: Legislation, Interpretation
& Applications
ELDORADO GOLD YEAR IN REVIEW 2016
43
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS
HEALTH AND SAFETY PERFORMANCE
Figure 2: 2016 LTI Categories
We achieved strong health and safety performance in 2016, with a
10% reduction to our LTIFR to 0.93 – the fifth consecutive year of
reduction. We still have significant room for improvement, as we sadly
experienced a fatal accident in February 2016 at our underground Stratoni
Mine in Greece. We also saw a 13% increase to our TRIFR, (1) largely due
to a drop in our total man-hours worked following the sale of our Chinese
assets, without a corresponding drop in the total number of injuries
experienced. Employee health and safety are major priorities and we
continue to review and reinforce our safety practices across each of our
sites and projects to prevent future incidents from occurring.
23%
8%
8%
8%
15%
15%
15%
8%
■ Chemical hazard
■ Fall of rock face
■ Handling of material
■ Use of hand tools
■ Use of machinery
■ Power haulage
■ Slip or fall of person
■ Striking or bumping
Table 4: Safety Performance
Turkey
Greece
Eldorado Global (2)
Fatalities
LTIFR (3)
TRIFR (3)
Kişladağ Efemçukuru
0
0
0.4
4.4
1.9
13.5
Stratoni Olympias Skouries
2016 Total 2015 Total 2014 Total
1
3.4
18.0
0
1.5
5.3
0
1.8
5.4
1
0.93
5.47
0
1.04 (4)
4.86 (4)
0
1.38
6.68
Weekly health and safety incident reports are prepared by each
site and region and outline weekly, month-to-date and year-to-date
statistics, including:
Restricted work injuries – An injury or disease that resulted in the
restriction of work or motion, including temporary or permanent
transfer to another job
Near misses – An incident which, in different circumstances, could have
resulted in harm to people, damage to property or loss to a process
First aid incidents – Care is provided to a person who is injured or
who suddenly becomes ill (e.g. disinfecting a cut, applying a bandage,
treating a sunburn, etc.)
Medically treated injuries – An injury or disease that resulted in basic
treatment (not first aid treatment) given by a physician or other medical
personnel (e.g. prescription medication, sutures, therapeutic treatment)
Lost-Time Injuries – A work-related injury or disease that resulted in
time lost from work of at least one day or shift, a permanent disability,
or a fatality
Fatalities – Death resulting from a work-related accident
SPOTLIGHT: REDUCING VEHICLE ACCIDENTS WITH THE ISO ROAD SAFETY STANDARD
In 2016, there were a number of road accidents both within and
around our Stratoni, Olympias and Skouries sites in Greece. Most
incidents were not work-related and involved members of the
public, but our Health and Safety Department saw an opportunity
to address this by implementing the ISO 39001 Road Traffic Safety
management system standard. The standard provides a tool for
vehicle fleet operators to reduce death and serious injury due to
road accidents, and creates additional requirements for safety
aspects including speed, vehicle condition and driver awareness.
Our goal is that implementing this standard will further strengthen
our safety culture and that this culture will permeate to local
communities where many of our employees reside.
In December 2016, Hellas Gold’s Road Traffic Safety Management
System was independently certified in accordance with ISO 39001.
(1) A recordable injury includes fatalities, lost-time injuries, restricted work injuries and medical treatment cases. Minor injuries, such as first aid cases, are not considered recordable injuries.
(2) Eldorado Global includes all injuries incurred across Turkey, Greece, Romania, Brazil, exploration activities and China (as at date-of-sale).
(3) The frequency rate is the number of injuries that occurred per 1 million man-hours worked.
(4) An adjustment to the reported LTIFR and TRIFR in 2015 occurred following updated site data for total man-hours worked, increasing from 1.03 to 1.04.
44
ELDORADO GOLD YEAR IN REVIEW 2016
SPOTLIGHT: REDUCING SAFETY HAZARDS IN GREECE
We regularly conduct safety training as part of our continuous
efforts to improve safety awareness and performance. Our
commitment to safety extends beyond our own employees. Any
incident affecting a contractor or visitor at our sites is treated with
equal importance, diligence and attention.
contractors, which were recorded, aggregated and reported back
to employees and contractors, helping to raise safety awareness.
Good practices were also identified in order to highlight and
commend strong safety processes, and to help strengthen the
safety culture of the workforce to drive continuous improvement.
In 2016, as Eldorado continued with construction of the Olympias
and Skouries projects in Greece, we saw an increase in the number
of safety incidents and injuries affecting our workforce.
At our Olympias Phase II project and at Skouries, where the
majority of our Greek employees and contractors are employed,
our Health and Safety team undertook an initiative to increase
the number of site safety inspections, identifying safety hazards
in advance of potential incidents occurring. We define a hazard
as anything in the workplace that has the potential to harm our
people or equipment. During daily inspections, the Health and
Safety team flagged any hazards caused by employees or individual
In Greece, where safety management has historically focused
on lagging statistics and indicators, this new approach has been
particularly effective as it facilitated a positive change to health and
safety management through a simple focus on leading indicators.
In February 2017, the Olympias Phase II project celebrated a key
milestone, with one million man-hours worked and no LTIs. Since
April 2016, there have been over 500,000 man-hours worked and
no LTIs at our Skouries project.
ENSURING CONTRACTOR SAFETY
We communicate our minimum expectations regarding contractor
health and safety rules as a component of the tender notice and project
assignments at our mining facilities. These expectations form an integral
part of the contracts Eldorado signs with each contractor and they educate
contractors to carry out work safely and in line with Eldorado’s standards;
prevent accidents among their staff, our staff or third parties; and avoid
damage or harm to facilities and equipment belonging to the contractor,
Eldorado or third parties.
If contractors do not follow safe practices, we require them to cease work
until remedial actions have been taken. This may include implementing
written procedures for high-risk tasks within the contractor’s scope,
documenting training for all personnel, conducting fit-for-purpose
audits of machinery, materials, personal protective equipment (PPE) and
emergency equipment used by the contractor, and re-inducting their
employees to Eldorado’s site safety requirements.
SAFETY BEYOND THE MINE
Our commitment to health and safety does not end with our employees
and contractors. We also consider local stakeholders’ health and safety
in our activities. To promote health and safety in the communities near
our operations, our sites have informal or formal aid assistance programs
in which Eldorado’s emergency response teams help in community
emergencies if needed. Health programs at our sites provide basic
medical treatments and services for employees and contractors, including
immunizations and medical checkups.
EMERGENCY PREPAREDNESS
By planning for emergencies, we identify, prioritize and implement controls
for potential hazards at our sites, which helps to minimize their impact
while safeguarding our employees and the environment.
Emergency response programs are in place at our operations. Our emergency
response teams are made up of employees who have received additional
training in emergency protocols, procedures and equipment. The
emergency response programs include extensive emergency drills
and emergency training, such as mine rescue drills, fire drills and CPR first
aid training and include training in the use of hazardous materials suits and
other safety equipment. Our emergency response teams also maintain close
working relationships with community-based emergency responders, and
provide additional support and resources to local responders in the event
of a serious off-site incident.
Our operating regions have also implemented crisis management plans
consistent with the MAC’s TSM Crisis Management and Communications
Planning protocol.
ELDORADO GOLD YEAR IN REVIEW 2016
45
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS Minimizing Our Environmental Footprint
We are committed to protecting the air, water and soil – resources that we all share. This
is why we carefully plan, design and build operations to limit our environmental footprint
to what is necessary. It is why we implement new technologies to get the best efficiency out of
the resources and materials we use while adhering to safety and environmental regulations, and
reclaiming areas no longer needed for mining use. And it is why we maintain systems to identify,
manage, monitor and mitigate our potential impacts from project inception through to closure.
WHY THIS MATTERS
PRINCIPLES FOR ENVIRONMENTAL EXCELLENCE
Mining by its very nature impacts the natural environment. It is important
to us and our stakeholders that we avoid, minimize or, at the very least,
manage the environmental impacts of our operations throughout the life of
our mines. Our permits and licences outline the environmental parameters
within which we must operate and specify the environmental standards
that we are obliged to meet. Poor environmental management and
performance would prohibit our ability to operate legally, responsibly and
with the support of our stakeholders and local communities.
RESPONSIBILITY FOR ENVIRONMENTAL STEWARDSHIP
Environment teams located at each of our sites are responsible for day-
to-day oversight, implementation and management of our environmental
policies, programs and activities. Each team reports directly to its mine
General Manager and country Vice President & General Manager, who
in turn report to Eldorado’s COO. The COO annually sets environmental
objectives and targets, and reviews environmental performance on a
weekly basis.
Eldorado’s President & CEO is ultimately accountable for our environmental
performance. At the Board level, the Sustainability Committee has
oversight of all environmental activities.
We are focused on maintaining sound environmental practices in our
activities with the aim of developing, operating and closing mines in a
responsible manner. Across development operations and sites, our actions
are guided by the following principles for environmental excellence:
● Ensuring that the protection of human health and the natural
environment is accomplished at the same time as benefits are derived
from economic and social development
● Providing necessary training on environmental matters to contribute
to greater environmental awareness in our operating jurisdictions
● Protecting social and cultural assets within our project area
● Making sure that environmental legislation is strictly observed and
complied with
●
Informing the public, relevant government institutions and
other stakeholders of our environmental performance in a fully
transparent manner
Environmental testing
at Efemçukuru, Turkey.
ENVIRONMENTAL POLICY
Eldorado’s Environmental Policy forms part of our governance
system and outlines our commitment to protect the natural
environment where we work. We seek to apply best practices
to minimize our impact on and to protect the environment across
every stage of our mines’ life cycles. Our Environmental Policy
is centred on:
● A commitment to strict compliance with local and national
regulations, and our operating permits and licences
● A commitment to the continuous improvement of our
environmental performance
● The application of best available technologies and practices
whenever possible
● A commitment to remediation and rehabilitation of areas no
longer needed for mining use
46
ELDORADO GOLD YEAR IN REVIEW 2016
ENVIRONMENTAL MANAGEMENT SYSTEMS
We have achieved certification under the International Standards
Organization 14001 (ISO 14001) Environmental Management System
Standard at our Kişladağ and Efemçukuru mines in Turkey and at
our Halkidiki assets in Greece. The overall aim of ISO 14001 is to
support environmental protection and prevent pollution. ISO 14001
represents a stringent guideline created to help organizations achieve
environmental goals, using a structured approach that enables
consistent environmental performance over time.
100% of Eldorado’s operating mines
and construction projects have
Environmental Management Systems
certified to ISO 14001
Establishing environmental management systems at our operations
has involved:
● Developing site-specific environmental policies
● Establishing objectives and processes to achieve the policy
commitments
● Continuously taking action as needed to improve performance
SPOTLIGHT: THE INTERNATIONAL
CYANIDE MANAGEMENT CODE
Cyanide management is a core focus of our operating and
monitoring activities at our sites that use cyanide to separate gold
from ore. We use very dilute solutions, in the range of 0.01–0.05%
sodium cyanide, and we have strict protocols and procedures in
place for cyanide storage, handling and disposal.
We applied to become an ICMC signatory in 2012. The International
Cyanide Management Code is a voluntary initiative for gold mining
companies aimed at protecting human health and preventing
adverse environmental impacts. The Code provides guidance on
the safe management of cyanide before, during and after the gold
recovery process. Certification involves an independent audit of
mining operations to verify that site policies and procedures meet
the ICMC’s rigorous standards. Audit results are made public to
inform stakeholders of the status of cyanide management practices
at the certified operation.
In 2016, Kişladağ successfully completed its first re-certification audit
under the ICMC. Kişladağ is currently the only mine operated by
Eldorado that uses cyanidation for gold extraction.
As part of the original certification, we developed and implemented
additional health, safety and environmental management systems
and procedures in order to fully comply with all nine of the
Code’s principles:
● Demonstrating our performance through regular audits
1. Production – Kişladağ uses suppliers who limit their workers’
and reporting
and the environment’s exposure to cyanide.
Every newly recruited employee, including the personnel of suppliers
and contractors, must complete environmental training, and existing
employees are provided with ongoing environmental training to keep
their environmental knowledge up to date.
Kişladağ water treatment plant.
2. Transportation – Our cyanide transporters have rigorous
emergency response plans and cyanide management practices.
3. Handling and storage – Our unloading, storing and mixing
facility complies with the Code, with effective ventilation and
measures to prevent cyanide from leaching.
4. Operations – Updated policies and emergency procedures that
govern Kişladağ’s management and control of cyanide help
facilitate its safe use.
5. Decommissioning – When Kişladağ reaches the end of its mine
life, we have stringent decommissioning plans in place to protect
human health and wildlife.
6. Worker safety – From contractors to employees, we consider
the exposure risk to everyone on our site, and work to minimize
or eliminate this risk.
7. Emergency response – In the event of an emergency, Kişladağ
is prepared to protect human health and minimize environmental
impacts through training and investment in appropriate response
equipment.
8. Training – Cyanide management is the responsibility of our
employees and contractors, and their competency, skill and
awareness begin with the training we provide them to safely
operate with and respond to any issues with cyanide.
9. Dialogue – We’ve successfully maintained communications with
our local communities, informing them about our plans and the
safety of our facility.
For more information on the ICMC, please visit
www.cyanidecode.org.
ELDORADO GOLD YEAR IN REVIEW 2016
47
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS ENVIRONMENTAL IMPACT ASSESSMENTS
EIAs are conducted to evaluate the potential impacts a proposed project
may have on environmental resources and the people who depend on
them. As part of the permitting procedure during project development,
we identify potential impacts and submit mitigation plans to regulators.
Once completed, EIAs are comprehensive documents that include baseline
studies to assess the current state of the environment at the proposed mine
site. They also identify potential effects of our planned activities and outline
steps to minimize any identified risks. EIAs require extensive consultation
with local communities, as well as considerable input from technical and
environmental experts.
ENVIRONMENTAL MONITORING
In line with international best practices, Eldorado regularly monitors air, soil
and water quality, as well as noise levels and energy use at our projects and
operations. This enables us to operate within regulatory frameworks and
provides a benchmark upon which we can implement programs to further
minimize our use of water, energy and chemicals.
As part of our commitment to transparency and accountability, our
operating sites have established independent environmental committees.
These external committees include academics, scientists and representatives
from local authorities. Committee members collect environmental data
from the site and submit it to third-party laboratories for testing, to
confirm independence and accuracy. This approach has helped strengthen
our credibility by providing our stakeholders with additional third-party
accredited information.
In 2016 we also finalized an environmental monitoring database that
provides information from Stratoni, Skouries and Olympias online. The
database enables public access to our environmental monitoring data
from 320 stations across Halkidiki that measure soil, water and air quality,
greenhouse gas emissions, noise and vibration. With an investment of over
€3 million in state-of-the-art equipment, this initiative is one of the leading
environmental monitoring programs in Europe.
Reportable Spills
We had no reportable spills at Eldorado’s sites in 2016 or in 2015.
SPOTLIGHT: BIODIVERSITY CONSERVATION AT KIŞLADAĞ
We believe that mining can co-exist with biodiversity conservation.
Identifying and protecting high-value species and habitats, and
returning landscapes to conditions similar to their pre-mining state,
are critical to our social licence to operate and ability to advance
new projects.
Since 2015, the Kişladağ mine has supported biodiversity efforts
by studying the mine’s impacts on local flora and fauna in
partnership with the faculty of sciences from two local universities
and environmental consultants. As part of these studies, Kişladağ
published a Biodiversity Action Plan (BAP) in 2015 to reinforce
the site’s conservation activities and achieve its objective of no
net loss of biodiversity due to mining. The BAP was developed in
four stages.
• Stage 1 – Establish baseline information on biodiversity, and
assess risks and impacts associated with project activities.
• Stage 2 – Identify stakeholders and prioritize biodiversity risks
and impacts on biodiversity.
• Stage 3 – Define priority habitats and species of conservation
importance, and determine BAP actions targeting each of them.
• Stage 4 –Establish a management schedule and monitoring
program, and take corrective measures whenever necessary.
Following publication of the initial BAP, Kişladağ completed additional
studies in July and November of 2016 to capture additional seasons
within the study, and in December 2016 a final BAP was published
and adopted by Kişladağ. Studies to date have determined that no
perceptible impacts on biodiversity outside of the direct mining area
have occurred.
48
ELDORADO GOLD YEAR IN REVIEW 2016
WATER USE AND MANAGEMENT
Availability and access to water is critical for our mining operations.
We use water for mineral processing, dust suppression, slurry transport
and personal consumption, and responsibly managing water is therefore
essential to our long-term sustainable development. Effective water
management and recycling practices help limit our reliance on water
sources, and effective governance ensures that water discharges fall
within the parameters of our permits and licences. While we do not set
quantitative targets regarding water consumption, our water use is strictly
controlled across all of our sites, and each operation has implemented
practices that reduce, reuse and recycle water.
Monitoring Water Resources
Across our operations, we withdrew nearly 11 million m3 of water in
2016. This includes water removed from our sites following precipitation
as well as groundwater that must be continuously pumped out from our
underground mines. Overall, we experienced a 4% increase in total water
withdrawals in 2016 compared to 2015 volumes, largely attributable to
an increase of groundwater flows and subsequent mine dewatering.
Water use is continuously monitored using flow meters, and we regularly
take water quality samples from groundwater and surface water sources
within and around our sites. We compare water quality results with the
limit values set out in pertinent regulations and our operating permits, and
we share these detailed results with regulators and government, typically
on a quarterly basis.
Water availability varies by site. At the Stratoni, Olympias and Skouries in
Greece, water seeping into our underground mines provides the majority
of water we require to operate, with small additional volumes collected
via rainwater and municipal supplies. For our operations that have
limited access to water, such as Kişladağ in Turkey, we have implemented
an extensive water conservation and recycling program to reduce our
need to withdraw water. The Kişladağ water treatment plant treats up to
5,000 m3/day of surface water from the waste rock dump and groundwater
from the open pit.
Recycled water makes up the majority of our water use, particularly at
those sites where we have zero water discharge requirements. Recycled
water is used for mineral processing, dust suppression and slurry transport,
as well as throughout our leach pad areas and adsorption, desorption,
recovery (ADR) carbon plants.
All water that comes into contact with our sites is treated and tested before
being used or discharged back into the environment (e.g. rivers, lakes and
reinjection into groundwater) where regulations allow.
WATER FLOW THROUGH A MINE SITE
A
P
F
B
O
WATER INPUTS
A Precipitation (rainfall and snow)
B Surface water (lakes, rivers, oceans)
C Ground water (wells, mine dewatering)
D Wastewater from another organization
E Municipal water
WATER USE
F Potable water, fire suppression
G Drilling
H Dust suppression
I Processing (ore preparation, solids/water
preparation, mineral extraction)
J Leach pad
K Tailings slurry
WATER TREATMENT
L Wastewater treatment ponds
M Water treatment plant
WATER OUTPUTS
N Releases to aquatic
environment (treated water)
O Water diversion of
non-contaminated water
P Evaporation
I
J
K
M
L
H
N
B & C
G
C
D
E
ELDORADO GOLD YEAR IN REVIEW 2016
49
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS Table 5: Total Water Withdrawals (m3 thousands)
Site
Rainwater
Ground water – renewable
Municipal supply
2016 Total
2015 Total
(1)
Kişladağ
Efemçukuru
Stratoni
Olympias
Skouries
Total
–
–
16
53
8
77
1,254
976
3,909
4,228
458
10,825
–
–
8
–
–
8
1,254
976
3,933
4,281
466
10,910
837
692
4,373
4,113
485
10,500
Our reported water efficiency is not a true reflection of site water use or
its correlation to production. In reality, due to the need to dewater our
mines, we withdraw far more water than we use and consequently our
actual water efficiency is much higher. As we continue to improve our data
collection and reporting we are investigating new data sources in order to
improve our understanding of water balances and to calculate our water
efficiency as a relationship of water used in production per ounce
of gold produced.
Table 6: Water Efficiency (m3/oz Au production)
Year
2016
2015 (2)
Kişladağ
Efemçukuru
Total
5.9
3.0
9.9
6.9
7.2
4.0
Table 7: Volume of Water Recycled and Reused (m3 thousands)
Category
Kişladağ
Efemçukuru
Stratoni
Olympias
Skouries
2016 Total
Water processed by
Company water treatment plants
Water recycled and reused
Water recycled and reused
443
26,909
(as % of total water use)
96%
–
–
–
3,900
1,325
25%
4,226
951
–
457
18%
50%
8,570
29,641
73%
Site water treatment plants operate continuously year-round to reduce our
reliance on external water sources. Kişladağ uses a leach pad to extract
gold from ore, treating and circulating approximately 50,000 litres of water
per minute through a closed system, with minor losses attributable to
evaporation. Approximately 21 times more water is recycled and reused
by the site compared to new water withdrawals.
Other sites, like Skouries, will not allow any contact water to be openly
discharged back into the environment. Instead, we use water diversion
channels to redirect surface water flows away from the site, and any
precipitation or groundwater that enters the site is captured, stored,
reused and/or evaporated.
For more detailed information on Eldorado’s water use and management
practices, please see our annual responses to the Carbon Disclosure Project
Water Survey available on the CDP website: www.cdp.net.
(1) 2015 total water withdrawals have been adjusted to exclude data related to Eldorado’s former Chinese assets. Minor updates to water withdrawals have been applied based on the latest available data.
(2) Minor adjustments have been made to Efemçukuru’s calculated 2015 water efficiency, based on updated water withdrawal data.
50
ELDORADO GOLD YEAR IN REVIEW 2016
ENERGY USE AND MANAGEMENT
Although energy use was not identified by our stakeholders as a material
topic, it is a significant operating cost and related air emissions are one
of our major environmental impacts. We have therefore included a brief
summary of our energy use and management practices.
Our energy is sourced primarily from fossil fuels (diesel, liquefied petroleum
gas (LPG), gasoline and natural gas) and electricity. Diesel is consumed by
our mines’ heavy-vehicle fleet, portable light towers and emergency back-
up generators. LPG and gasoline is consumed by our light-vehicle fleet, and
natural gas is used for building heating. Finally, electricity is primarily used
by our electric excavators, as well as for mining and milling operations.
Electricity is primarily sourced from the national grid, while the Skouries
project will continue to use diesel generators until the construction of site
transmission lines and transformers is completed.
Figure 3: 2016 Energy Sources
Lubricant
0.01%
LPG
0.02%
Gasoline
0.05%
Natural gas
0.18%
Electricity
Diesel
41.2%
58.5%
0%
10% 20% 30% 40% 50% 60% 70%
Inside the Efemçukuru processing
plant, Turkey.
4
0
.
1
Globally we are seeing an emphasis on regulation that may penalize heavy
energy users and greenhouse gas (GHG) emitters. As a result of both
the upfront costs associated with energy use at our operations and the
potential for our operating jurisdictions to impose GHG emission levies,
improving the energy efficiency of our operations is important to us.
At the Stratoni, Olympias and Skouries sites in Greece, we implemented
the ISO 50001 Energy Management Standard in 2016 to help improve
energy efficiency and identify efficiency opportunities. ISO 50001 assists
us in systematically setting and reaching energy use goals and achieving
cost savings.
In some of our operating jurisdictions, energy efficiency and GHG
emission reduction goals are already represented in national regulations.
For example, in Turkey each year, an energy usage declaration is made to
the government, and every four years an energy efficiency study must be
performed and submitted to the government.
In 2017, Eldorado will review plans for an Energy Policy that establishes
energy efficiency and GHG targets at each of our sites.
The following tables outline the energy use, energy intensity and the
GHG emissions produced at each of our sites in 2016.
ELDORADO GOLD YEAR IN REVIEW 2016
51
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS % Change
since 2015
(18)%
20%
6%
(27)%
(8)%
(12)%
% Change
8%
–
Table 8: Total Direct and Indirect Energy Use by Source (GJ)
Site
Diesel (mobile
equipment)
Diesel (stationary
equipment)
Natural
gas
12,434
2,491
Kişladağ
Efemçukuru
Stratoni
Olympias
Skouries
Total
738,938
90,743
34,783
35,358
–
899,822
–
–
–
26,670
39,104
Electricity
2016 Total
2015 Total
328,193
188,228
92,137
66,315
–
1,082,056
1,316,900
278,971
126,920
101,673
26,670
233,019
119,476
139,221
28,982
–
–
–
–
2,491
674,873
1,616,290
1,837,598
Table 9: Energy Intensity (GJ/oz Au produced)
Year
2016
2015
Kişladağ
Efemçukuru
5.12
4.68
2.84
2.32
Total
4.40
4.06
In 2016 we reduced energy consumption by 12% across our sites.
This was largely due to significantly reduced tonnes mined (-32%) and
waste production (-54%) at Kişladağ in 2016 as compared to 2015.
While Kişladağ saw an increase in gold grade from 0.7 g/t in 2015 to
0.8 g/t in 2016, Efemçukuru saw an 8% drop from 7.82 g/t in 2015 to
7.21 g/t in 2016. This drop meant that Efemçukuru had to mine and
process more ore to maintain a consistent level of production compared
to the prior year. Overall, we saw a net increase in energy intensity to
4.4 GJ per ounce of gold produced.
A haul truck in the Kişladağ open pit, Turkey.
52
ELDORADO GOLD YEAR IN REVIEW 2016
Table 10: Greenhouse Gas Emissions (1) (tCO2e)
Year
Scope 1
Scope 2
Scope 3
Total % Change since 2015
2016
2015
67,268
82,700
98,366
101,754
654
892
168,304
187,361
(10.2)%
–
Our calculated GHG emissions are attributable to all of Eldorado’s operating
mines, construction and development projects, with the exception of
Perama Hill (no on-site activity) and our previously owned Chinese sites.
Scope 1 (direct) GHG emissions relate to the combustion of energy sources
that are owned or controlled by Eldorado, the majority of which are
attributable to diesel consumption by our vehicle fleets. Scope 2 (indirect)
GHG emissions are from the consumption of purchased electricity.
WASTE MANAGEMENT
Different forms of waste are generated through our mining activities,
including overburden, waste rock, tailings, slag, mine water, sludge and
refuse. Waste rock is the primary form of waste generated, which is
material that has been extracted from the mining areas in order to access
ore. Waste rock contains no economically valuable material.
We estimate scope 3 (other indirect) GHG emissions from employee air
travel, which saw a significant decrease compared to 2015 emissions,
attributable to less travel by Eldorado’s corporate staff to our operating
regions and sites.
For more detailed information on Eldorado’s energy use, energy
efficiency, emissions and air quality, please see our annual responses to
the Carbon Disclosure Project Climate Change Survey available on the
CDP website: www.cdp.net.
Waste generated is sorted and classified as hazardous or non-
hazardous waste, in line with regulations. All types of waste,
including hazardous waste, are stored and disposed of with consideration
for their potential environmental impacts. Management programs are
developed and implemented, depending on the characteristics of the waste
being generated. For example, at Efemçukuru, where waste rock has acid
rock drainage potential, storage areas are lined and seepage is collected
and treated before disposal. Where waste rock does not pose any toxicity
risk, such as at Olympias, it is partially reused for mine backfill.
Waste management activities and objectives represent significant elements
of our ISO 14001 environmental management systems. As per local
regulations in each of our operating jurisdictions, all disposed waste
types and quantities are recorded in legal disposal documents that are
periodically submitted to host governments. We conduct due diligence on
our waste disposal contractors, and periodically visit disposal and recycling
contractors to evaluate their environmental practices.
(1) Emissions have been calculated in accordance with the Greenhouse Gas Protocol developed by the World Resources Institute and the World Business Council on Sustainable Development. Conversion
factors were obtained from the National Energy Board’s Energy Conversion Tables, while emission factors were obtained using the relevant year DEFRA Conversion Factors, applying Global Warming
Potential factors from the Intergovernmental Panel on Climate Change’s fourth assessment report. Scope 3 emission totals were independently calculated by Eldorado’s travel agent. 2015 and 2014 GHG
totals have been adjusted to exclude emissions related to Eldorado’s previously owned Chinese assets.
ELDORADO GOLD YEAR IN REVIEW 2016
53
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS DUST CONTROL AND MANAGEMENT
The creation of dust is one impact we manage closely and actively. Major
sources of dust emissions include:
● Blasting operations in the open-pit area
● Loading, haulage and offloading of ore and waste rock
● Operation of crushing units
● Road traffic
Where we have the potential to create significant dust, we ensure that
water tank trucks continuously perform on-site watering activities to
suppress dust. In fact, dust suppression is one of our major uses of water
on site, particularly at our open-pit sites. In dry seasons, materials are
dampened before we conduct blasting operations. Water spraying and
closed dust collecting systems are provided, particularly at the primary
crusher and the fine ore stockpile areas. Water sprayers are also used on
conveyor belts at certain intervals. With the goal of measuring the results
of these mitigation activities, regular dust measurements are taken around
our operations and in neighbouring villages at regular intervals.
TAILINGS MANAGEMENT
Tailings management is a core activity at our Efemçukuru, Stratoni and
Olympias sites, and it is embedded in daily working and monitoring
practices. As a heap-leach operation, there are no tailings produced at
Kişladağ. Vila Nova, currently under care and maintenance, also has a
tailings facility that falls under the site’s environmental monitoring program.
Tailings are the material that remains after the mineral extraction process
is completed and are primarily a mixture of ground rock and water. Tailings
are typically stored in a specially designed tailings storage facility and can
contain trace amounts of chemicals from the extraction process, which
can make them acidic or alkaline. Their safe management and disposal is a
priority for us in order to protect the nearby environment and communities.
We manage our tailings facilities consistent with robust government
regulations, accepted international standards and leading practices. Our
tailings facilities are all site-specific and have been carefully designed
and constructed by specialized engineering consulting firms, in line with
regulations, in order to minimize environmental risks. At each of our
tailings facilities we have:
● Conducted extensive studies to locate the facility away from sensitive
environmental areas such as lakes, streams, wetlands and key
biodiversity zones
● Designed the extraction process so that tailings contain as few
impurities as possible and are environmentally stable
● Constructed facilities able to withstand extreme weather and
seismic events
●
Installed upstream and downstream monitoring facilities to measure
water quality
We also have comprehensive tailings management systems at Efemçukuru,
Stratoni, Olympias and Vila Nova. These include:
● Plans and procedures that identify clear roles, responsibilities
and communication channels for personnel responsible for
tailings management
● Ongoing training of personnel responsible for tailings management
● Operational controls such as real-time monitoring of tailings
facilities, routine inspections and risk assessments and regular
maintenance programs
● Emergency preparedness and response plans
● Periodic review of tailings facility design, construction, operation and
closure plans to facilitate ongoing relevance and alignment with current
best practices
● Oversight from corporate head office to verify completion of any
updates or corrective actions and to identify opportunities for shared
learning across Company operations
As part of our commitment to the continuous improvement of tailings
management practices, our site teams conduct daily monitoring of
the tailings facilities and must complete an audit every three years by
an independent and recognized expert in tailings management and
dam safety. Our most recent external audit did not identify any major
deficiencies in our tailings management practices.
We are strengthening our management approach further by aligning our
operating practices with MAC’s TSM Tailings Management Protocol. This
is based on a “plan, do, check, act” system of continuous improvement.
ENVIRONMENTAL FINES AND PENALTIES
We incurred one fine in 2016 at Kişladağ. The local Environmental
Directorate issued a $10,000 fine due to washing activities at the secondary
and tertiary crusher base area. The site responded immediately and, as a
corrective action, the washing activity was stopped and drainage channels
were covered.
In addition to the above, in early 2016 the Ministry of Environment and
Energy in Greece issued two decisions imposing fines to Hellas Gold
regarding alleged environmental non-compliances that occurred between
2012 and 2014 at Olympias and Stratoni. Site inspections were carried out
during this period by environmental inspectors and, in response to their
findings, Hellas Gold prepared and submitted detailed answers. Despite the
responses, the Ministry imposed fines totalling €1.7 million and Hellas Gold
has filed respective appeals against the fines before the Administrative
Court in Athens.
No other fines, penalties or non-monetary sanctions were incurred in 2016
for non-compliance with environmental laws and regulations.
54
ELDORADO GOLD YEAR IN REVIEW 2016
Strengthening Our Community Relations
For the past 24 years, we have built partnerships with our stakeholders designed to enrich
lives by developing lasting opportunities for local communities. This is achieved by improving
employment, infrastructure, health and education, and supporting initiatives that will last
beyond the life of our operations.
WHY THIS MATTERS
OUR REPUTATION
Mining can create significant long-term economic value for host
communities. In many of Eldorado’s operating jurisdictions, the opportunity
for meaningful long-term employment or investment is limited outside the
existence of our operations. Wages and benefits, taxes and royalties, local
procurement, and investments in community programs and infrastructure
are ways in which Eldorado helps to stimulate socio-economic development
in local communities. We aim to build trust through open, honest
dialogue and by building opportunities designed to positively impact
local communities.
RESPONSIBILITY FOR COMMUNITY AND GOVERNMENT
RELATIONS AND ENGAGEMENT
Community and Public Relations teams are located at each of our sites
and lead our stakeholder engagement and community relations activities,
with specific accountability assigned to our mine General Managers and
country Vice President & General Managers. More broadly, government
relations are led by each of our country Vice President & General Managers
for their respective operating jurisdictions, and are supported by Eldorado’s
corporate office and the President & CEO.
Eldorado’s President & CEO is ultimately accountable for the success of
our community and stakeholder engagement. At the Board level, the
Sustainability Committee has oversight of all policies and programs with
respect to community relations.
Eldorado’s reputation is built on our interactions with our stakeholders,
following through on our promises and operating responsibly. We look to
continuously improve how we listen to stakeholders so that we are aware
of issues of importance and can find mutually agreeable solutions. Our
actions and track record help us to foster trust, strengthen our relationships
and facilitate support for our operations.
To strengthen our reputation we:
●
Identify and listen to our stakeholders
● Look to understand stakeholders’ needs, concerns and expectations
● Take action to address and respond to concerns
● Operate ethically and transparently
● Follow through on our promises
This section of the Report expands on some of the actions we take to
manage and build our community relations.
Handing out T-shirts near Efemçukuru gold mine, Turkey.
ELDORADO GOLD YEAR IN REVIEW 2016
55
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS STAKEHOLDER ENGAGEMENT
We aim to build trust through our ongoing collaboration with a broad
range of stakeholders, including communities and government, which
involves listening and responding to stakeholder needs and concerns.
We broadly define our core group of stakeholders as employees,
contractors, suppliers, shareholders, local community members,
governments, non-governmental organizations (NGOs) and industry
groups. Each stakeholder group has unique expectations and we therefore
tailor our engagement practices to best meet their needs.
Presentation to visitors prior to touring our Kişladağ mine site in Turkey.
Table 11: How We Interact with Stakeholders
Stakeholder
Employees
Shareholders
Ways We Interact
● Corporate, regional and site personnel engagement
● Employee newsletters, social media and email
● Workplace health and safety committees
● Performance and development reviews
● Perception studies
● Annual shareholder meeting
● Quarterly conference calls to discuss results
● Frequent one-on-one or group meetings
Government
● Ongoing communication and dialogue with government officials at the municipal,
regional and national levels
Suppliers and contractors
● Ongoing communication and dialogue between representatives
● Performance reviews
Industry associations
● Membership in industry associations such as the International Cyanide Management Institute,
NGOs
Communities
the World Gold Council, the Mining Association of Canada and the Canadian Mining
Innovation Council. We also participate in several working committees, such as MAC’s
International Social Responsibility Committee
● Meetings and collaborations with NGOs at both the corporate and regional levels
● At Kışladağ, we established an independent environmental committee, which includes
representatives from NGOs
● Ongoing community engagement activities, including collaborative community projects
● Neighbourhood meetings
● Site tours for local residents and students
● Regional newsletters, local media and social media
UNDERSTANDING HOW WE CAN CONTRIBUTE
We have conducted studies to anticipate and manage the social and
economic impacts of our operations. Socio-economic impact assessments
(SIAs) represent a best-practice approach to identifying local stakeholders
and their social, cultural and economic characteristics. An SIA analyzes how
a mining project may affect communities and puts forward strategies to
minimize negative impacts and maximize positive benefits.
56
ELDORADO GOLD YEAR IN REVIEW 2016
Table 12: Local Impact Assessment and Management Tools
Turkey
Greece (1)
Brazil (2)
Romania
Kişladağ Efemçukuru
Stratoni Olympias Skouries
Tocantinzinho
Certej
✗
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
Yes – in progress
✓
✓
✓
✓
✓
✓
Awaiting
Installation Licence
Awaiting
Installation Licence
✓
n/a ✓
✓
✓
✓
Formalized stakeholder
mapping
Social impact assessment
Public disclosure
of impact assessments
Local community
development programs
SPOTLIGHT: SOCIO-ECONOMIC IMPACT ASSESMENT IN HALKIDIKI
In October 2016, Eldorado’s Greek subsidiary Hellas Gold sponsored
a socio-economic impact assessment (SIA) of the Stratoni,
Olympias and Skouries operations. The objective of the study
was to independently identify, assess and document the main
impacts of the operations on the local region and to develop an
action plan going forward to enhance impact management and
governance. The SIA was managed by an independent consultant
and representatives from the mining villages around our sites. This
allowed Hellas Gold to remain impartial to the SIA’s findings.
Preliminary results from the assessment highlight that:
• The impact on revenue growth to the municipal administration
has been positive
• The land value of the Panagia and Stageira-Akantha areas,
which surround the Stratoni, Olympias and Skouries sites, are
the highest within the Municipality of Aristotle
• The fall in land values during the Greek economic crisis has
affected the Municipality of Aristotle less in recent years than
neighbouring municipalities (such as Polygiros and Volvi) where
there are no mining facilities
• The local housing market has increased in value
• There have been no negative impacts on agricultural land, local
settlements, tourist areas or archaeological sites within the
vicinity or wider area of the mines
• Hellas Gold has appropriate mechanisms for measuring,
monitoring and reporting socio-economic data that often,
particularly in the case of environmental governance, exceeds
regulatory requirements
• Hellas Gold’s operations significantly contribute towards job and
income creation within local communities
• Hellas Gold supports cultural, athletic and other activities,
promoting a model of multilateral development
A young visitor attends a mine tour
in Halkidiki, Greece.
(1) Due to the close proximity of Stratoni, Olympias and Skouries, impact assessments and management tools are jointly performed.
(2) Tocantinzinho is awaiting an Installation Licence before proceeding with broader stakeholder monitoring.
ELDORADO GOLD YEAR IN REVIEW 2016
57
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS
COMMUNITY ENGAGEMENT
Effective communication with our local stakeholders is essential to our
continued success and we have made this integral to our operating
approach for over 24 years. We have established various methods for
communicating with local stakeholders that emphasize two-way dialogue
and provide opportunities for local stakeholders to submit anonymous
feedback to our site personnel. Please see Table 13 for details on the
various communication methods currently established at our operations.
Table 13: How We Engage with Local Communities
Turkey
Greece (1)
Brazil
Romania
Kişladağ
Efemçukuru
Stratoni Olympias
Skouries
Tocantinzinho
Certej
Local site grievance mechanism (2)
Email feedback
Site office – open door policy
Informal engagement
(daily interaction in communities)
Formal engagement mechanisms
✓
✗
✓
✓
✓
✓
✗
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✗
✗
✓
✓
✗
COMMUNITY INVESTMENT
Our operations are located in diverse jurisdictions, each with their own
cultural and social characteristics. As a result, we have adopted site-specific
approaches to community investment that are appropriate to local customs,
values and needs, yet are based on the same core principles of community
inclusion and transparency. The stakeholder engagement practices
described earlier help identify relevant community investment projects.
Table 14: 2016 Payments to Communities and Community Investments (3)
($ millions)
Turkey
Greece (4)
Brazil
Romania
Payments to communities and community investments
1.30
1.65
0.02
0.15
Payments relate to infrastructure, health and well-being, education
and training, scholarships, donations, and investments in preserving
or rehabilitating the local environment. They also include support to
civil society organizations (excluding expenditures related to advertising
or publicity).
✓
✓
✓
✓
✗
Total
3.11
(1) Due to the close proximity of Stratoni, Olympias and Skouries, site engagement is jointly performed.
(2)
In 2016, Eldorado finalized a formal Company-wide grievance mechanism, comprising a global directive and implementation guide for sites. Each of our sites and
projects are in the process of aligning existing processes with the guidelines.
(3) Where the recipient entity is a government organization, relevant community investments have been reported as a “payment to government” in accordance with the
Extractive Sector Transparency Measures Act (ESTMA). Eldorado’s total payments to government are reported within Table 22. Due to this change, comparisons to
community payments reported in Eldorado’s 2015 Year in Review Report cannot be made.
(4) Total payments exclude $183,900 attributable to Hellas Gold’s 2016 summer internship program. This is considered a payment to employees.
58
ELDORADO GOLD YEAR IN REVIEW 2016
KIŞLADAĞ, TURKEY
Community relations personnel meet with stakeholders, local leaders,
village mukhtars, mayors and sub-governors on an ongoing basis. There
is a community interest group that meets every six months to discuss
investment priorities.
2016 Highlights
● Provided subsidies and donations to schools and universities,
including travel costs for students, gold to a local arts faculty,
and used vehicles, computers and saplings to local schools
● Provided in-kind support to gendarmes, village mukhtars and district
and provincial municipalities, including office equipment, building
materials, excavation and repair works
● Supported local villages to maintain potable water supplies, sewage
systems and village halls
EFEMÇUKURU, TURKEY
Each quarter, community relations personnel engage with local
communities through defined communication channels to
collaboratively evaluate, prioritize and select community projects to
be completed. Community investment projects are generally focused
on health, education, agriculture and infrastructure.
2016 Highlights
● Provided medical examinations, supplies and emergency support
to 1,477 people from local villages in 2016
● Worked with suppliers and businesses to increase local procurement,
while providing training to local villages to increase local job hiring
and skill development
● Planted trees and performed landscaping along local roads and
access ways
STRATONI, OLYMPIAS AND SKOURIES, GREECE
At our operations and development projects in Greece, community
investment priorities are set after discussions with representatives of
the local villages. They are also based on the annual materiality analysis
Hellas Gold conducts as part of its sustainability reporting. Most
community investments are for ongoing needs and infrastructure
projects that are shared equally among community stakeholders.
We also hold monthly meetings with the heads of the villages to discuss
adjustments and evaluate the success of the infrastructure investments
to date.
2016 Highlights
● Collaborated with local suppliers and businesses to increase local
procurement and employment levels for women
● Supported local tourism agencies, government and hotels to
develop marketing campaigns aimed at attracting new visitors
to the area
● Partnered with academic institutions and experts to train local
residents in rural farm practices, including planting and cultivating
new herbs and crops
● Organized Hellas Gold’s annual summer internship program
targeting local students, and provided donations to local schools,
university students and sporting teams
● Maintained local roads and infrastructure, and supported local
healthcare services (e.g. the Paleohori Healthcare Centre)
ELDORADO’S COMMUNITY INVESTMENT FALLS BROADLY UNDER THE FOLLOWING CATEGORIES
Education
Employment
Childhood, youth and adult continuing studies initiatives, as well research and education initiatives relevant
to the mining sector
Programs and projects that are proven to generate long-term and sustained employment for local communities,
together with socio-economic benefits for the area
Environment
The protection and preservation of the natural environment around our mines
Health and sport
Improved quality and access to local health care services that can operate independently and sustainably,
and supporting recreational projects and sport clubs that promote healthy and active lifestyles
Community development
Capacity building and physical infrastructure that supports community needs and a post-mine economy
Arts & culture
The culture and diversity of local communities, including the preservation of heritage and the promotion of local
traditions and practices
Payments made to local suppliers of goods and services can be found on page 62.
ELDORADO GOLD YEAR IN REVIEW 2016
59
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS
REGIONAL ECONOMIC DEVELOPMENT
GOVERNMENT SUPPORT
Our mining projects create significant job opportunities for local
communities and beyond. Direct jobs are created at the mine itself and
indirect jobs are created throughout the industry supply chain. Jobs in the
wider economy are created as demand increases for local services, such as
shops, restaurants, hotels, schools and hospitals. The International Council
on Mining and Metals (ICMM) estimates that for every one direct mining
employee, three to five people may be employed indirectly elsewhere in
the host nation’s economy.
Mining is a heavily regulated industry and our operations are subject to
the laws and policies of the countries in which we operate. Our in-country
teams maintain regular dialogue with government authorities at the local,
regional and national levels in order to better understand government
objectives and policies, provide information about our projects, discuss
relevant issues and advance our permits. At the corporate level, we work
with ministerial offices and diplomats, both in Canada and abroad, to
communicate our development successes and challenges.
Our mines can be a significant source of income for employees and for
governments, generating revenues in the form of wages, income taxes
(personal and corporate), royalties and exports. Depending on metal prices,
production from our assets can contribute significantly to a country’s trade
balance. Studies by the ICMM indicate that for every $1 of economic
activity invested by a mining project, an additional $3 or more is generated
elsewhere in the host economy.
We do not participate in any party politics or make payments to
political parties.
ECONOMIC IMPACTS OF A MINING PROJECT
Increased need for
municipal services
(police, fire, transport)
Development of
local goods and services
(shops, grocers,
restaurants,
leisure activities)
Development
of municipal facilities
(schools, universities,
hospitals, sport centres)
Job creation
(wider economy)
INDUCED impacts result from
employees of both the mine and
the supply chain relocating to,
and spending their wages in the
local community.
BANK
H
Utilities
Accounting and
legal services
Transport
Mining fleet
(trucks and
loaders)
Parts, equipment
and machinery
Industrial
materials
Engineering and
environmental services
Job creation
(supply chain)
INDIRECT impacts result
from suppliers purchasing
goods and services to
meet mine demand.
MINING PROJECT
Payments for
land use
Infrastructure
development
(installation of power,
water, roads)
Lodging for
mine personnel
Salaries
Community
projects
Skill development
Royalties
Sales of metals
Export revenues
Payments
to suppliers
Job creation
(mining company)
Government taxes
(personal & corporate)
DIRECT impacts result from
the development and
operation of a mine.
60
ELDORADO GOLD YEAR IN REVIEW 2016
Our employment and procurement practices are centred on:
● Hiring employees, contractors and suppliers from the
local community
● Promoting an open and shared culture across all our workplaces
● Providing ongoing training and education
● Upholding equal opportunities, diversity and
anti-discrimination practices
LOCAL EMPLOYMENT AND PROCUREMENT
Local employment and procurement provides significant direct and indirect
benefits to the regions where we operate, including skills development,
increased income levels and economic diversification.
While we do not have a formal policy, we encourage the purchasing
department at each site to hire locally and use local suppliers wherever
possible, as well as to work with local suppliers to improve their capacity
and ability to work with us.
Positive impacts of this strategy include strong working relationships with
local communities and industry, and operating efficiencies combined with
lower long-term costs by having an educated and experienced workforce
near our sites. Conversely, negative impacts can include inflated local prices
for goods and services, and income disparity between the mining and non-
mining workforce.
Our broad target is to increase the percentage of materials purchased
from companies near our sites every year. In this way, local suppliers can
develop their businesses and increase their capability of providing a larger
proportion of products and services.
Domestic suppliers of goods and services are the biggest recipients of our
supplier expenditure, accounting for 79% and 80% of our host-country
investment in 2016 and 2015, respectively.
Local electrical suppliers at Efemçukuru, Turkey.
ELDORADO GOLD YEAR IN REVIEW 2016
61
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS Table 15: Payments to Suppliers (1)
($ millions)
Turkey
Greece
Brazil
Romania
Total 2016
Total 2015
(2)
Payments to domestic suppliers
Payments to international suppliers
Total
% spend on domestic versus international suppliers
174.4
42.4
216.9
80%
160.8
45.7
206.5
78%
10.7
–
10.7
100%
12.4
4.5
17.0
73%
358.4
92.6
451.0
79%
383.0
97.0
480.0
80%
SPOTLIGHT: TARGETING LOCAL PROCUREMENT IN GREECE
Eldorado’s investments in Stratoni, Olympias and Skouries represent one
of the largest economic developments and opportunities for Greece
today. By the end of 2016, Eldorado had invested over $750 million in
Greece in these three projects, including over $160 million on national,
regional and local suppliers in 2016 alone. As mining forms a large part
of the Halkidiki economy, it has the potential to be a significant catalyst
for Greece’s economy, particularly through the growth and utilization of
local suppliers of goods and services.
In Greece, we take great efforts to map local businesses, suppliers
and contractors in order to categorize companies as:
● Local suppliers: from the Municipality of Aristotle
● Regional suppliers: from the Halkidiki region (excluding Aristotle)
and nearby Muncipality of Volvi
● National suppliers: from the rest of Greece
In 2016, €20.4 million was spent on local supplies from the Municipality
of Aristotle, representing over 13% of Eldorado’s total spend in the
Greek market in 2016.
GREECE
N
■ Local suppliers/Contractors
(Municipality of Aristotle)
■ Regional suppliers/Contractors
(Rest of Chalkidiki/Municipality of Volvi)
■ National suppliers/Contractors
(Rest of Greece)
€14.2 million
Contracts purchased in 2016
€3.2 million
Services purchased in 2016
€2.9 million
Goods purchased in 2016
One of our site team
at Olympias, Greece.
(1) We define “local” as procurement from contractors and suppliers located within the neighbouring villages and communities of our sites. However, for data-reporting
purposes, we report on “payments to suppliers” within the categories of domestic and international suppliers only. Domestic suppliers are those where the payment
recipient is located in the same jurisdiction. Payments to commercial enterprises are considered “domestic” if the commercial enterprise is registered in the same
jurisdiction for tax purposes.
(2) For comparative purposes, payments to suppliers have been adjusted to exclude data related to Eldorado’s former Chinese assets.
62
ELDORADO GOLD YEAR IN REVIEW 2016
OUR WORKFORCE
Our success is a result of the dedicated employees and contractors who
work for us and our global subsidiaries. It is our people’s motivation and
commitment to excellence that drives our performance and helps us
achieve our corporate objectives.
Across the organization, 99% of our employees and contractors are
nationals. We believe in recruiting local employees whenever possible and
for senior roles. Turkish, Greek, Brazilian and Romanian employees form
the majority of our management teams working in their respective home
countries, alongside a small number of expatriate employees.
In accordance with the relevant laws and regulations, we uphold strong
and fair labour practices. We encourage equal opportunities and base
our hiring practices on skills and experience. Male and female employees
are paid equally for equivalent jobs. As outlined in our Code of Business
Conduct and Ethics, everyone at Eldorado is expected to maintain a safe
and healthy work environment and promote a workplace that is free from
discrimination and harassment on any basis, including race, colour, religion,
gender, age, national origin, disability or sexual orientation.
Please see Tables 17 to 20 for a detailed breakdown of our employee and
contractor numbers.
Table 16: Total Workforce and Composition
Employees
Contractors
Total
National
Local
Expatriate
99%
99%
99%
72%
42%
59%
1%
0%
0.4%
Total
2,729
2,142
4,871
Table 17: Eldorado Employees by Gender and National Representation
Country
Site
Description
Male
employees
Female
employees Total
Expatriates
%
Nationals
% from
Local communities
Turkey
Kışladağ
Efemçukuru
Other
Operating mine
Operating mine
Offices, quarries
and laboratory
Greece
Stratoni & Mavres Petres Operating mine
Olympias
Skouries
Construction project
Construction project
Kassandra mines
Offices
Perama Hill & Sapes
Development project
Other
Offices and exploration
Brazil
Tocantinzinho
Development project
Vila Nova
Other
Romania
Certej & Deva
Care and maintenance
Offices and exploration
Construction project
and office
726
426
45
370
456
40
87
11
25
5
20
22
37
21
15
13
15
10
42
2
22
3
–
6
763
447
60
383
471
50
129
13
47
8
20
28
215
36
251
Canada
Vancouver
Corporate office
Netherlands Amsterdam
Office
Serbia
–
Exploration
Barbados
Bridgetown
Office
31
4
4
1
16
47
3
–
–
7
4
1
2,488
241 2,729
6
1
1
–
1
2
3
–
3
–
–
–
1
–
1 (1)
–
1
20
99%
100%
98%
100%
100%
96%
98%
100%
94%
100%
100%
100%
100%
68%
43%
100%
0%
99%
(1)
Includes exploration personnel.
ELDORADO GOLD YEAR IN REVIEW 2016
81%
50%
–
93%
86%
74%
84%
100%
81%
63%
75%
82%
41%
21%
43%
n/a
–
72%
63
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS
Table 18: Eldorado Employees by Gender and Employment Type
Full-time employees
Part-time employees
Total
Permanent employees
Fixed-term employees
Total
Expatriates
Turkey
Greece
Brazil
Romania
Total
Male Female
Male Female
Male Female
Male Female
Male Female
1,197
–
1,197
1,177
20
1,197
8
73
–
73
71
2
73
–
989
–
102
2
989
104
937
52
93
11
989
104
9
–
47
–
47
47
–
47
–
9
–
9
9
–
9
–
214
1
215
182
33
215
1
35
1
36
35
1
36
–
2,485
3
2,488
2,380
108
237
4
241
225
16
2,488
241
19
1
Table 19: Numbers of Employee Hires and Rates of Turnover
Turkey
Greece
Brazil
Romania
Total
Male Female
Male Female
Male Female
Male Female
Male Female
New employee hires
32
3
245
171
1
–
35
4
318
183
Rate of new employee hires
2.5%
0.2%
22.4%
15.6%
1.8%
0.0%
13.9%
1.6%
11.7%
6.7%
Employee turnover
Rate of employee turnover (1)
59
5
189
167
3
4.6%
0.4%
17.3%
15.3%
5.4%
–
–
8
3.2%
–
–
261
175
9.6%
6.4%
(1) Voluntary and involuntary turnover.
OUR CONTRACTORS
In 2016, we strengthened our commitment to using local contractors.
We regularly partner with contractors, particularly during the construction
of new projects (such as Skouries) and when significant investments
are made to our existing operations (such as Olympias Phase II). These
partnerships enable us to draw on short-term labour and leverage specific
construction expertise that may not be readily available within our
own workforce. It also enables us to focus on our core business, while
supplementing expertise, experience and manpower.
All contractors that work on our sites must adhere to Eldorado’s
governance policies, including our Code of Business Conduct and
Ethics, and our Environmental, and Health and Safety policies.
Contracting companies are required to implement systems or
procedures that, at a minimum, meet our requirements for social
and environmental performance.
Examples of our contractor activities include:
ACTIVITY
DESCRIPTION
EXAMPLES
One-off major projects
Specialized projects
Significant capital-intensive projects, where
short-term contract labour is hired for the
duration of the project
Minor to major projects, using skills,
equipment and/or labour not typically
available in the normal mine workforce
● Mine construction at Skouries and Olympias
● Mine development at Tocantinzinho and Certej
● Construction of the Kokkinolakkas tailings
facility at Stratoni
● Diamond drilling at exploration sites
Major support services
Full-time services for important
non-mining work
● Catering and employee transportation services at Kişladağ
and Efemçukuru
● Private security services at all sites
Minor support services
Part-time support services
● Office cleaning
● Ad hoc professional services
(auditors, lawyers, consultants, etc.)
64
ELDORADO GOLD YEAR IN REVIEW 2016
Table 20: Contractors by Gender and National Representation
Country
Site
Description
Male
contractors
Female
contractors
Total
%
Nationals
% from
Local communities
Turkey
Kışladağ
Efemçukuru
Other
Operating mine
Operating mine
Offices, quarries
and laboratory
Greece
Stratoni & Mavres Petres
Operating mine
Olympias
Skouries
Construction project
Construction project
Kassandra mines
Offices
Perama Hill & Sapes
Development project
Other
Offices and exploration
Brazil
Tocantinzinho
Vila Nova
Other
Romania
Certej & Deva
Development project
Care and maintenance
Offices and exploration
Construction project
and office
Canada
Vancouver
Corporate office
Netherlands Amsterdam
Office
Serbia
–
Exploration
Barbados
Bridgetown
Office
335
296
–
186
739
272
–
–
15
42
8
34
69
–
–
–
1
4
23
–
60
25
12
–
–
12
5
–
1
1
–
1
–
1
339
319
–
246
764
284
–
–
27
47
8
35
70
–
1
–
2
1,997
145
2,142
100%
100%
n/a
100%
100%
100%
n/a
n/a
100%
100%
100%
100%
100%
n/a
100%
n/a
100%
100%
67%
34%
n/a
48%
26%
32%
n/a
n/a
85%
79%
100%
100%
79%
n/a
100%
n/a
100%
42%
Our Olympias Phase II team celebrates one million man-hours worked with no LTIs.
ELDORADO GOLD YEAR IN REVIEW 2016
65
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS
Running Responsible Operations
Mining is a complex industry and we must increasingly demonstrate how we manage risks
and mitigate impacts affecting our environmental and social performance. As we continue to
improve our transparency and disclosures, we aim to show that the controls that we have in
place protect and respect human rights, address and respond to community concerns, provide
a safe and respectful working environment, and minimize harm to the environment, while –
ultimately – leaving a positive and lasting legacy.
WHY THIS MATTERS
POLITICAL CLIMATE IN COUNTRIES OF OPERATION
Mining can only happen where mineral deposits are located, and
orebodies are often found in remote or politically challenging jurisdictions.
As mining is a capital-intensive business that requires a significant amount
of investment before metals are produced, we undertake extensive due
diligence of regions prior to investing. The resulting due diligence reports
assess the host country’s political climate, governance structures, legal
systems, transparency of doing business, track record of working with
foreign investors, and tax and royalty regimes. However, even having
extensive due diligence, a mine can last for 20 or more years and there can
therefore be multiple changes to political situations within that timeframe.
Political and economic uncertainty is challenging for nations and for
industry, with too much political and regulatory uncertainty challenging
a jurisdiction’s attractiveness for investment. Eldorado advocates for clear,
fair and transparent regulations and proactively shares its experience
as a global operator to help host governments develop and maintain
appropriate legislation.
Eldorado continued to experience delays in receiving the necessary permits
in Greece for its Olympias and Skouries assets in the first half of 2016. As
a result, we halted construction works at Skouries from January until June.
Eldorado has a track record of working with all levels of government to
find common ground and has continued to engage with multiple levels of
the Greek government – with help from our unions, industry associations in
Greece and the Canadian government – to emphasize the socio-economic
merits of our investment.
Eldorado is committed to the long-term sustainable development of the
communities and countries where we operate. However, unpredictable
political climates, government sentiment towards foreign investment,
excessive regulation and fiscal policies can create an environment that
discourages additional investment, leading to mine closure and job losses.
We faced several challenges in 2016, both social and political, that
affected our sites. Managing these risks requires us to exhibit strong
governance and transparency – as well as continued support and
respect for our workforce – to demonstrate our commitment to deliver
shared value. This section of our Report discusses some of these topics
that were highlighted by our stakeholders during Eldorado’s annual
materiality assessment.
PERMITS AND LICENCES
Obtaining permits and licences is critical for our project development and
ongoing operations. It is our responsibility to meet relevant environmental
and commercial regulations and it is the host governments’ responsibility
to grant permits and licences in a timely fashion when regulations are met.
During construction and development, Eldorado’s Engineering and
Capital Projects teams are responsible for preparing our applications
and submitting these to government to obtain the permits and licences
we require to operate. These teams report to Eldorado’s Vice President
Engineering & Capital Projects who in turn reports to Eldorado’s COO.
Throughout the permitting process our teams are supported by country
Vice President & General Managers who frequently engage with local
government to address questions or concerns.
During production, our mines must maintain adherence to the operating
requirements prescribed within our permits and licences.These generally
include explicit social or environmental conditions, such as targets for
local employment or air quality and emission thresholds. Our various
mine departments, including Environmental, Health and Safety, and
Public Relations & Corporate Social Responsibility, are responsible for
monitoring and adhering to these requirements. Mine General Managers
are ultimately accountable for compliance with our permits and licences,
and report directly to Eldorado’s COO.
Kişladağ leach pad at dusk.
66
ELDORADO GOLD YEAR IN REVIEW 2016
HUMAN RIGHTS
Eldorado is committed to supporting the protection of international
human rights through best practices in our business activities. While
governments have the primary responsibility for protecting and upholding
the human rights of their citizens, we recognize our responsibility for
respecting human rights across our sites. In addition, we recognize that
we have an opportunity to promote human rights where we can make
a positive contribution.
Our workforce – employees and contractors – is required to comply with
Eldorado’s Human Rights Policy. The policy was signed by Eldorado’s
President & CEO and published in January 2016, and outlines our
requirements for upholding and respecting the human rights of our
employees, contractors, workers in our supply chain, local community
members, and other stakeholders who may be impacted by our activities.
It explicitly outlines our support for the elimination of child labour and
forced labour, as well as the elimination of workplace discrimination on the
basis of race, gender, religion, age, social status, sexual orientation or any
other arbitrary characteristic unrelated to an individual’s job performance.
UNITED NATIONS GLOBAL COMPACT
CONFLICT-FREE GOLD STANDARD
In 2016 we further advanced our commitment to responsible
business practices by joining the UNGC, the world’s largest corporate
responsibility initiative. Our participation is part of an ongoing
commitment to uphold the UNGC’s Ten Principles in the areas of
human rights, labour standards, the environment and anti-corruption.
Our Code of Business Conduct and Ethics, Anti-Bribery and Anti-
Corruption Policy, Human Rights Policy and our Environmental
Policy make sure that we consistently evaluate and effectively manage
our operations, risk and relationships. Our aim is to be a welcome
partner everywhere we operate.
VOLUNTARY PRINCIPLES ON SECURITY AND HUMAN RIGHTS
The Voluntary Principles are “a set of principles designed to guide
companies in maintaining the safety and security of their operations
within an operating framework that encourages respect for human
rights.” The Voluntary Principles were established in 2000 and are
considered to set the standard for leading practice in managing
security for extractive sector operations.
Eldorado is committed to implementing a human rights and security
approach consistent with the Voluntary Principles at each of our
operations that rely upon private or public security forces, and based
on a determination of risk. We are working with MAC to formalize this
further through a joint MAC membership commitment, and will report
annually to MAC with an overview of our approach to risk assessments,
how our security-related management systems align with the Voluntary
Principles, and the nature of our assurance process.
The Conflict-Free Gold Standard was published by the World Gold
Council in October 2012, following an extensive consultation process
involving governments, civil society, external auditors and supply chain
participants. The standard creates a framework for assurance that
gold is not contributing to conflict or contributing to human rights
abuses, and helps to “operationalize” the Organisation for Economic
Co-operation and Development’s (OECD) Due Diligence Guidance for
Responsible Supply Chains for Minerals from Conflict-Affected and
High-Risk Areas.
Eldorado’s sites are not located in conflict-affected areas but we
adopted the Conflict-Free Gold Standard in 2013 to provide assurance
that the gold we produce does not cause, support or benefit armed
conflict, or contribute to human rights abuses or breaches of
international humanitarian law.
In 2016 we published our third annual Conflict-Free Gold Report
outlining our findings that Eldorado’s operations, and all gold and gold-
bearing material produced by our operations, conform to the Conflict-
Free Gold Standard. Conformance with the Standard was subject to
independent assurance.
A copy of our Report and independent assurance statement can be
found here: www.eldoradogold.com/responsibility/our-approach/
accountability.
ELDORADO GOLD YEAR IN REVIEW 2016
67
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS COMPLAINTS AND GRIEVANCES
We believe that to conduct business honestly and respectfully we must
create and encourage open communication between our sites and
stakeholders. This is essential when managing disputes regarding our
activities and relationships. When grievances are raised, we act and respond
with due diligence, and effective grievance mechanisms play an important
role in governing and remediating any impacts.
As part of our Code of Business Conduct and Ethics, we have a
whistleblower policy so that any stakeholder – internal or external –
can confidentially report any concerns about our financial statements,
accounting practices, internal controls or any suspected or known illegal
behaviour that violates laws, government regulations or our Code.
Concerns can be submitted anonymously and are managed by an external
whistleblower reporting agency. All submissions and investigations are
overseen by Eldorado’s Audit Committee Chair and Corporate Secretary.
Table 21: Requests and Complaints Received
In addition, each of our operations has established various mechanisms
for receiving and responding to external grievances. However, as part
of Eldorado’s commitment to implement a framework consistent with
the Voluntary Principles, we are developing a new approach to monitoring,
documenting and reporting on community feedback – including
grievances – in order to improve the way we track and respond to
stakeholder concerns. In 2016 we finalized our global Grievance
Mechanism directive, outlining Eldorado’s minimum expectations for
identifying, classifying, responding to and reporting grievances. Our sites
and regions are working towards adopting and aligning existing grievance
mechanisms to this directive in 2017.
Number received
Predominant topics
Turkey
Greece
(1)
Kişladağ
Efemçukuru
6
57
Dust; noise; land acquisition;
subcontractor vehicle speed
through local villages
Dust;
prioritized local
employment
Stratoni Olympias
Skouries
15
Desire for employment;
environmental concerns; donations
and sponsorships
BRIBERY AND CORRUPTION
It is the policy of Eldorado and its subsidiaries to comply with applicable
anti-bribery and anti-corruption laws and regulations. Our Anti-Bribery
and Anti-Corruption Policy is designed to educate our employees and
consultants on their responsibility to comply with applicable anti-bribery
and anti-corruption laws. It also encourages staff to be alert to potential
violations of applicable laws by any of Eldorado’s personnel or independent
representatives, distributors, consultants or agents.
Anti-bribery and anti-corruption workshops and training were made
available to all employees in 2016. Company officers, leadership and key
staff also attended in-person anti-corruption training at corporate, regional
and site levels. Company leadership, key management and corporate staff
are also required to sign an annual declaration confirming that they have
read and understood Eldorado’s Anti-Bribery and Anti-Corruption Policy, as
well our Code of Business Conduct and Ethics. Copies of these policies are
posted at each of our sites, in communal work areas and on noticeboards.
The policies are overseen by Eldorado’s Corporate Secretary and Global
Internal Controls Manager.
the importance of initiatives such as the Extractive Industries
Transparency Initiative (EITI) in improving revenue transparency, as well
as in strengthening government and Company systems, informing public
debate and enhancing stakeholder trust. While we do not operate in
any EITI signatory countries, both Canada and the European Union (EU)
have passed laws that require mandatory public reporting of payments
to governments by the extractive sector. The respective laws are:
● Canada’s Extractive Sector Transparency Measures Act (ESTMA),
which came into force on June 1, 2015
● EU’s Transparency and Accounting Directives (EU Directives),
introduced in 2013
Eldorado’s first report under ESTMA – covering payments made to foreign
and domestic governments at all levels during the 2016 fiscal year – will be
published by the Act’s May 29, 2017 deadline. Reporting will be publicly
available on our website after June 30, 2017 and will summarize Eldorado’s
payments of taxes, royalties, fees, bonuses, production entitlements,
dividends and other categories of payment as prescribed by the Act.
TRANSPARENCY OF PAYMENTS TO GOVERNMENT
Revenue transparency is important to our investors and stakeholders.
Beyond public financial reporting, we aspire to further increase the level
of disclosure we make with respect to payments made to governments
as part of a broader industry mandate to fight corruption. We recognize
Under the EU Directives, member states were required to adopt the
requirements into domestic law in 2015, which became effective on
January 1, 2016. Romania and Greece have both implemented this
legislation. As we do not have mining operations in the Netherlands,
our Dutch subsidiaries fall outside the scope of the EU Directives.
(1) Due to the close proximity of Stratoni, Olympias and Skouries, impact assessments
and management tools are conducted in concert.
68
ELDORADO GOLD YEAR IN REVIEW 2016
Table 22: 2016 Payments to Government (1)
($ millions)
Turkey
Greece
Brazil
Romania
Total 2016
Royalties and land-use payments
Income and other corporate tax
Employee taxes
Other (2)
Total
8.51
26.49
7.36
13.19
55.55
0.85
0.14
11.57
0.95
13.51
–
0.0
0.79
0.59
1.38
0.30
0.86
1.27
0.28
2.71
9.66
27.49
20.99
15.01
73.14
For an overview of payments made by Eldorado to our local communities
and suppliers, please see:
● Table 14: 2016 Payments to Communities and Community Investments (page 58)
● Table 15: Payments to Suppliers (page 62)
TAX STRATEGY
Eldorado is working to refine its tax management and tax planning
in line with current global political and regulatory environments that
are focused on tax transparency and non-abusive tax strategies.
In 2017, Eldorado aims to incorporate a tax strategy that supports
the overall business strategy and provides more clarity on the
Company’s tax risk management approach.
RELATIONSHIPS WITH LABOUR UNIONS
The majority of our employees are unionized with employment terms and
conditions negotiated through collective bargaining agreements. In 2016,
we renewed each of our agreements in Turkey, Greece, Brazil and Romania.
The only significant change was to our underground workforce agreement
in Greece and the adoption of a 24/7 continuous underground working
schedule. The agreements will remain valid until December 31, 2017 in
Greece, Brazil and Romania, and until December 31, 2018 in Turkey.
We believe we have good relations with both our unionized and non-
unionized employees. We are committed to resolving employee relations
matters promptly and to mutually beneficial outcomes. Eldorado’s labour
agreements are overseen by our mine General Managers and country Vice
President & General Managers.
Table 23: Employees Covered by Collective Bargaining Agreements
Turkey
Greece
Brazil
Romania
Kişladağ
Efemçukuru
Stratoni Olympias
Skouries
Tocantinzinho
Certej
Percentage of employees
covered by collective
bargaining agreements
71%
69%
67%
67%
67%
100%
100%
(1) Payments to government have been calculated on a cash basis and in accordance with the Extractive Sector Transparency Measures Act (ESTMA). Eldorado’s 2016 ESTMA Report will be
finalized by the May 29, 2017 deadline and therefore totals here may differ from Eldorado’s final ESTMA Report. Payments to government in Eldorado’s 2015 Year in Review Report were
calculated on an accrual basis using Mining Association of Canada guidelines and has therefore not been included for comparative purposes.
(2) Payments of taxes related to procurement of goods and services including withholding taxes, import and fuel duties. Also includes indirect taxes (such as value-added tax) where these are not
repaid to the Company during the period.
ELDORADO GOLD YEAR IN REVIEW 2016
69
ELDORADO GOLDYEAR IN REVIEWOUR BUSINESSOUR OPERATIONSOUR APPROACHMATERIAL TOPICS
MINERAL RESERVES
as of December 31, 2016
Proven Mineral Reserves
Probable Mineral Reserves
Total Proven & Probable
GOLD
Certej
Efemçukuru
Kişladağ
Olympias
Perama
Skouries
Tocantinzinho
Total gold
SILVER
Certej
Olympias
Perama
Stratoni
Tonnes
(x1,000)
In-situ oz
(x1,000)
g/t
Tonnes
(x1,000)
In-situ oz
(x1,000)
g/t
Tonnes
(x1,000)
In-situ oz
(x1,000)
g/t
22,788
1,687
205,442
4,851
2,477
73,474
16,699
1.93
8.08
0.76
8.65
4.44
0.91
1.53
1,414
438
5,046
1,349
354
2,148
821
21,500
2,137
11,884
11,236
7,220
79,262
22,914
1.43
7.18
0.58
7.54
2.68
0.64
1.36
327,418
1.10
11,570
156,153
1.53
988
493
221
2,724
621
1,643
1,003
7,693
44,288
3,824
217,326
16,087
9,697
152,736
39,613
1.69
7.57
0.75
7.87
3.13
0.77
1.43
2,402
931
5,267
4,073
975
3,791
1,824
483,571
1.24
19,263
22,788
4,851
2,477
10
124
3
118
169
7,004
19,339
254
641
21,500
11,236
7,220
12
130
4
69
144
8,551
46,962
897
319
44,288
16,087
9,697
11
128
4
187
160
15,555
66,301
1,151
960
Total silver
30,234
28
27,238
40,025
44
56,729
70,259
37
83,967
COPPER
Skouries
Total copper
LEAD
Olympias
Stratoni
Total lead
ZINC
Olympias
Stratoni
Total zinc
Tonnes
(x1,000)
In-situ t
(x1,000)
%
Tonnes
(x1,000)
In-situ t
(x1,000)
%
Tonnes
(x1,000)
In-situ t
(x1,000)
%
73,474
0.54
73,474
0.54
4,851
118
4,969
4,851
118
4,969
4.1
6.3
4.1
5.1
9.2
5.2
394
394
199
7
206
247
11
258
79,262
0.48
79,262
0.48
11,236
69
11,305
11,236
69
11,305
4.4
5.5
4.4
6.0
8.2
6.0
382
382
494
4
498
674
6
680
152,736
0.51
152,736
0.51
16,087
187
16,274
16,087
187
16,274
4.3
6.0
4.3
5.7
8.8
5.8
776
776
693
11
704
921
17
938
Notes on Mineral Resources and Reserves
Mineral Reserve Notes
1. Mineral reserves and mineral resources are as of
1. Long-Term Metal Price Assumptions:
3. Cut-off grades:
December 31, 2016.
2. Mineral reserves are included in the mineral resources.
Gold = $1,200/oz; Silver = $16.00/oz (for Stratoni it was
$7.74/oz Ag as governed by a streaming agreement with
Silver Wheaton (Caymans) Ltd.); Copper = $2.75/lb;
Lead = $1,800/t and Zinc = $2,000/t.
3. Mineral reserves and mineral resources are disclosed
on a total project basis.
2. Skouries:
The current open-pit and underground designs used a
copper price of $3.00/lb. Because the open pit is governed
by permit limits, its reserves remain unchanged at the lower
reserve price of $2.75/lb. In the underground portion,
the change in metal price has no impact on mine design
and extraction philosophy, or placement of long-term
underground infrastructure. Furthermore, the lower price
does not affect the first half of the planned underground
mine life due to starting in higher-grade gold and copper
sections of the orebody. The latter part of the project’s long
mine life does contain stopes with mineral reserve tonnes
and metal at risk at the lower copper price. These are in
the lowermost parts of the planned mine and along its
peripheries, and comprise 7% tonnes, 4% gold metal and
6% copper metal of the stated mineral reserves.
Kişladağ: $7.65 NSR; Efemçukuru: 3.24 g/t Au; Perama:
0.8 g/t Au; Tocantinzinho: 0.42 g/t Au; Skouries: $12.00
NSR (open pit), $33.33 NSR (underground); Olympias:
$62.00 NSR; Stratoni: 15.54% Zn Equivalent grade
(=Zn%+Pb%*1.20+Ag%*165); Certej: 0.90 g/t Au
Equivalent grade (=Au(g/t)+Ag(g/t)*0.0121).
4. Qualified persons:
•
John Nilsson, P.Eng., of Nilsson Mine Services, is
responsible for the Kişladağ, Skouries open pit, Certej and
Tocantinzinho reserves
• Doug Jones (Registered Member – SME), consultant for
the Company, is responsible for the Efemçukuru, Olympias,
Stratoni and Perama reserves
• Colm Keogh, P.Eng, Principal Mining Engineer, AMC Mining
70
ELDORADO GOLD YEAR IN REVIEW 2016
MINERAL RESOURCES
as of December 31, 2016 Measured Resources
Indicated Resources
Total Measured & Indicated
Inferred Resources
GOLD
Certej
Efemçukuru
Kişladağ
Olympias
Perama
Piavitsa
Sapes
Skouries
Tonnes
(x1,000) g/t
In-situ oz
(x1,000)
Tonnes
(x1,000)
In-situ oz
(x1,000)
g/t
Tonnes
(x1,000)
In-situ oz
g/t (x1,000)
Tonnes
(x1,000)
In-situ oz
g/t (x1,000)
27,518 1.80
1,592
62,463 1.23
2,277 8.58
383,886 0.65
4,464 9.97
3,064 4.30
–
–
–
–
628
8,047
1,431
424
–
–
2,224 8.02
93,312 0.47
10,644 8.55
9,375 3.18
–
–
2,423 6.08
100,018 0.79
2,534
189,263 0.47
2,472
574
1,419
2,926
958
–
474
2,867
1,264
89,981
4,501
477,198
15,108
12,439
–
2,423
289,281
48,732
1.40
8.30
0.62
8.97
3.46
–
6.08
0.58
1.35
4,064
1,202
9,466
4,357
1,382
–
474
5,401
2,115
12,228
5,095
290,466
3,955
8,766
10,542
0.96
4.94
0.45
8.34
1.96
5.70
1,011 10.65
170,136
2,395
0.31
0.90
376
809
4,165
1,060
554
1,932
347
1,680
69
Tocantinzinho
17,530 1.51
851
31,202 1.26
Total gold
538,757 0.90
15,507
400,906 1.01
12,954
939,663
0.94
28,461
504,594
0.68 10,992
SILVER
Certej
Olympias
Perama
Piavitsa
Stratoni
27,518
9
7,768
62,463
9
4,464 142
20,380
10,644
147
3,064
–
3
–
335
–
9,375
–
9
–
480 218
3,364
70
169
17,833
50,305
2,833
–
380
89,981
9
25,601
12,228
3
1,364
15,108
146
70,685
12,439
–
8
–
3,168
–
3,955
8,766
118 15,050
7
1,860
10,542
57 19,156
550
212
3,744
–
–
–
Total silver
35,526
28
31,847
82,552
27
71,351
118,078
27 103,198
35,491
33 37,430
COPPER
Tonnes
(x1,000) %
In-situ t
(x1,000)
Tonnes
(x1,000) %
In-situ t
(x1,000)
Tonnes
(x1,000)
In-situ t
% (x1,000)
Tonnes
(x1,000)
In-situ t
% (x1,000)
Skouries
100,018 0.48
Total copper
100,018 0.48
484
484
189,263 0.40
189,263 0.40
758
758
289,281
0.43
1,242
170,136
0.34
289,281
0.43
1,242
170,136
0.34
LEAD
Olympias
Stratoni
Total lead
ZINC
Olympias
Stratoni
Total zinc
IRON
Vila Nova
Total iron
4,464 4.7
480 8.3
4,944 5.1
4,464 5.8
480 11.1
4,944 6.3
210
40
250
259
53
312
10,644
70
5.0
7.0
10,714
5.0
10,644
6.8
70 10.6
10,714
6.8
532
5
537
724
7
731
15,108
550
15,658
4.9
8.1
5.0
742
45
787
3,955
–
3,955
3.9
–
3.9
15,108
6.5
550
11.0
983
60
15,658
6.7
1,043
3,955
–
3,955
4.3
–
4.3
2,212 59.3
2,212 59.3
10,982 58.5
10,982 58.5
13,194
58.7
13,194
58.7
9,519
59.7
9,519
59.7
Mineral Resource Notes
1. Cut-off grades:
Kişladağ: 0.30 g/t Au for M+I, 0.35 g/t for Inferred;
Efemçukuru: 2.5 g/t Au; Perama: 0.5 g/t Au;
Tocantinzinho: 0.3 g/t Au; Certej: 0.7 g/t Au; Skouries:
0.20 g/t Au equivalent grade (open pit), 0.60 g/t Au
equivalent grade (underground) (=Au g/t + 1.6*Cu%);
Piavitsa: 3.5 g/t Au; Sapes: 2.5 g/t Au (underground),
1.0 g/t Au (open pit). Resource cut-offs for Olympias
ELDORADO GOLD YEAR IN REVIEW 2016
and Stratoni are geologically based due to the sharpness
of the mineralized contacts and the high-grade nature of
the mineralization.
2. Qualified persons:
•
•
Stephen Juras, Ph.D., P.Geo., Director, Technical Services
for the Company, is responsible for all of the Company’s
mineral resources except for those associated with Sapes
Peter Lewis, Ph.D., P.Geo., Vice President, Exploration
for the Company, is responsible for the Sapes
mineral resources
578
578
153
–
153
171
–
171
71
GRI G4 “CORE” CONTENT INDEX
GRI General Standard Disclosures
General
standard
disclosures
Description of indicator
Page
number
STRATEGY AND ANALYSIS
Chapter, link or location of information
UNGC
principle
G4-1
Letter from CEO
8–9
Letter from Our President & CEO
ORGANIZATIONAL PROFILE
Organization name
Primary brands, products,
and services
IFC
14–19
Eldorado Gold Corporation
Our Business, Our Products
Location of headquarters
1
Eldorado Gold at a Glance
G4-3
G4-4
G4-5
G4-6
Number of countries
where the organization
has significant operations
G4-7
Nature of ownership
1–3,
20–29
2–3,
20–29
Eldorado Gold at a Glance, Where We Operate, Our Operations
Where We Operate, Our Operations
G4-8
G4-9
G4-10
G4-11
G4-12
G4-13
Markets served
2–3, 14–29
Where We Operate, Our Business, Our Operations
Scale of the organization:
employees, operations,
net revenues, production
1–3, 20–29,
40–41, 61–65
Eldorado Gold at a Glance, Where We Operate, Our Operations,
Economic and Operational Performance, Local Employment
and Procurement
Employee numbers
(by region, type and gender)
Percentage of employees
covered by collective
bargaining agreements
63–64
Our Workforce
69
Relationships with Labour Unions
Organization’s supply chain
14–19, 61–62
Our Business, Our Products, Local Procurement
Significant changes during
the reporting period
4–13, 20–29
Our Track Record, 2016 Highlights, Letter from Our President & CEO,
Our Performance and Targets, Our Operations
G4-14
Precautionary principle
–
We recognize there are environmental and social impacts from our
operations. Eldorado Gold is committed to using a precautionary
approach throughout the lives of our mines, and before any activities
commence we assess the potential environmental and social impacts,
and evaluate how to avoid, control, or mitigate these, even when
impacts are not scientifically certain.
31
Our Guiding Frameworks and Commitments
G4-15
Externally developed
economic, environmental and
social charters, principles, or
other initiatives to which the
organization subscribes or
which it endorses
G4-16
Memberships of associations
31
Our Guiding Frameworks and Commitments
6
3
7
72
ELDORADO GOLD YEAR IN REVIEW 2016
General
standard
disclosures
Description of indicator
Page
number
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
Chapter, link or location of information
UNGC
principle
G4-17
G4-18
G4-19
G4-20
G4-21
G4-22
G4-23
All entities included in the
organization’s consolidated
financial statements
–
Please see Eldorado Gold’s 2016 Annual Information Form –
www.eldoradogold.com/investors/financial-information/filings/
Process for defining
report content and aspect
boundaries
36–39
Materiality
List all Material Aspects
38–39
Materiality Results
Which Aspects are material
within the organization
Which Aspects are material
external to the organization
38–39
Materiality Results
38–39
Materiality Results
Restatements of information
IFC
About This Report
Significant changes from
previous reporting periods
in the Scope and Aspect
boundaries
–
Performance information and data related to Eldorado’s previously
owned Chinese operations have been excluded from reporting, unless
otherwise noted. Where information has been included, data reflects
2016 performance up to the asset’s final date of sale:
● September 6, 2016: Jinfeng mine is sold to China National Gold
Group Corporation
● November 22, 2016: White Mountain mine, Tanjianshan mine
and Eastern Dragon Development project are sold to Yintai
Resources Co. Ltd
With the exception of the above, the report scope has not changed.
Material aspects were determined in a materiality assessment undertaken
in 2016.
STAKEHOLDER ENGAGEMENT
G4-24
G4-25
G4-26
G4-27
List of stakeholder groups
38, 56
Stakeholder Engagement
Basis for identification and
selection of stakeholders
with whom to engage
14–17,
55–65
Our Business, Strengthening Our Community Relations
Organization’s approach to
stakeholder management
Key topics and concerns
raised through stakeholder
engagement
55–65
Strengthening Our Community Relations
36–39, 68
Materiality Assessment, Complaints and Grievances
ELDORADO GOLD YEAR IN REVIEW 2016
73
General
standard
disclosures
Description of indicator
Page
number
REPORT PROFILE
Chapter, link or location of information
UNGC
principle
G4-28
G4-29
G4-30
G4-31
G4-32
G4-33
Reporting period
IFC
About This Report
Date of most previous report
IFC
About This Report
Reporting cycle
Contact point
GRI reporting level
External assurance
IFC
IFC
IFC
IFC
About This Report
About This Report
About This Report
About This Report
GOVERNANCE
G4-34
Governance structure of the
organization
35
Corporate Governance and Transparency,
www.eldoradogold.com/about-us/governance/
ETHICS AND INTEGRITY
G4-56
Values, principles, standards
and norms of behaviour of
the organization
35
Corporate Governance and Transparency,
www.eldoradogold.com/about-us/governance/
1, 2, 8, 10
1, 2, 8, 10
74
ELDORADO GOLD YEAR IN REVIEW 2016
GRI Material Topics
Material
topics
Report section
Page
number
Level of
reporting
Identified omission(s) and
reason(s) for omission(s)
Comments & links
UNGC
principle
Fully ✓ Partially ♦ Reported Elsewhere ✗
OUR ECONOMIC AND OPERATIONAL PERFORMANCE
G4-DMA
✓
8–9,
14–19,
30–35,
40–41
Letter from Our President
& CEO, Our Business,
Our Approach to
Responsible Mining,
Sustaining Long-Term
Economic Growth
and Performance
Operational Costs
G4-EC1
2016 Highlights,
Our Performance and
Targets, Our Operations,
Annual Operational and
Financial Performance
7, 10, 41
✓
G4-EC1 financial data has been
reported within the relevant
Report sections (economic
and operational performance,
community investment,
payments to government, etc.)
For additional information
on Eldorado’s financial
performance, please see our
Annual Report:
www.eldoradogold.com/
investors/financial-
information/annual-reports/
Additional information
for G4-EC1 indicator:
● 2016 employee wages and
benefits for continuing
operations: $86.08 million
● 2016 payments to providers
of capital for continuing
operations: $101.55 million
Metal Production
G4-EC1
Where We Operate,
Our Operations, Annual
Operational and Financial
Performance
2–3,
20–29,
41
KEEPING OUR PEOPLE SAFE
G4-DMA
Keeping Our People Safe
42–45
Health and Safety Performance
G4-LA6
2016 Highlights, Our
Performance and Targets,
Health and Safety
Performance
7, 11, 44
✓
✓
✓
Training and Skills Development
G4-LA6
2016 Highlights, Our
Performance and Targets,
Health and Safety
Performance
7, 11, 44
✓
Safety performance is not
broken down by employees and
contractors or gender, as we
do track and report by these
breakdowns at a Corporate
level. Site safety performance is
reported in accordance with local
government requirements.
Safety performance is not
broken down by employees and
contractors or gender, as we
do track and report by these
breakdowns at a Corporate
level. Site safety performance is
reported in accordance with local
government requirements.
ELDORADO GOLD YEAR IN REVIEW 2016
75
Material
topics
Report section
Page
number
Level of
reporting
Identified omission(s) and
reason(s) for omission(s)
Comments & links
UNGC
principle
Training and Skills Development (continued)
G4-DMA
G4-LA9
Training and Skills
Development
Total Hours of Employee
Training, Total Hours of
Safety Training
43
43
G4-LA10
Training Programs Provided
by Eldorado
43
Emergency Preparedness
G4-DMA
Safety Beyond The Mine,
Emergency Preparedness
45
MINIMIZING OUR ENVIRONMENTAL FOOTPRINT
G4-DMA
Our Performance and
Targets, Our Approach
to Responsible Mining,
Minimizing our
Environmental Footprint
12,
30–35,
46–54
Water Use and Management
G4-DMA
Water Use and
Management
G4-EN8
Total Water Withdrawals
G4-EN10
G4-EN22
Volume of Water Recycled
and Reused
Total Water Discharge by
Quality and Destination
49–50
50
50
–
Waste Management (Including Tailings)
G4-DMA
G4-EN22
Waste Management,
Tailings Management
53–54
Total Water Discharge by
Quality and Destination
–
G4-EN24
Number of Reportable Spills 48
✓
✓
♦
✓
✓
✓
✓
✓
✗
✓
✗
♦
We do not report on transition
assistance programs provided to
retired or terminated employees.
8, 9
8, 9
Eldorado’s water discharge by
destination is reported in the
Company’s annual submission
to the CDP.
Eldorado’s water discharge by
destination is reported in the
Company’s annual submission to
the CDP.
The volume of reportable spills in
2016 has not been disclosed.
Further disclosures on
Eldorado’s water use and
management can be found
within our annual survey
responses to the CDP:
www.cdp.net.
Further disclosures on Eldorado’s
water use and management
can be found within our annual
survey responses to the CDP:
www.cdp.net.
G4-EN24 seeks disclosures on
significant spills. Eldorado has
chosen to use this indicator to
disclose reportable spills, defined
as reportable to local regulatory
authorities. Neither of the two
reportable spills in 2016 was
considered significant.
76
ELDORADO GOLD YEAR IN REVIEW 2016
Material
topics
Report section
Page
number
Level of
reporting
Identified omission(s) and
reason(s) for omission(s)
Comments & links
UNGC
principle
Fully ✓ Partially ♦ Reported Elsewhere ✗
Waste Management (Including Tailings) (continued)
G4-EN29
Environmental Fines and
Penalties
54
Energy Use
G4-DMA
Energy Use and
Management
G4-EN3
Total Direct and Indirect
Energy Use by Source
G4-EN5
Energy Intensity
Greenhouse Gas Emissions
G4-DMA
G4-EN15
G4-EN16
G4-EN17
G4-EN18
Energy Use and
Management
Greenhouse Gas Emissions
(Scope 1)
Greenhouse Gas Emissions
(Scope 2)
Greenhouse Gas Emissions
(Scope 3)
Greenhouse Gas Emission
Intensity
G4-EN19
Reduction of Greenhouse
Gas Emissions
Cyanide Management
G4-DMA
SPOTLIGHT: The
International Cyanide
Management Code
51–52
52
52
51–52
53
53
53
–
–
47
✓
✓
✓
✓
✓
✓
✓
✓
✗
✗
✓
Further disclosures on
Eldorado’s energy use,
greenhouse gas emissions and
management can be found
within our annual survey
responses to the CDP:
www.cdp.net/
Further disclosures on
Eldorado’s greenhouse gas
emissions and management
can be found within our annual
survey responses to the CDP:
www.cdp.net/
Eldorado’s GHG intensity is
reported in the Company’s
annual submission to the CDP.
Eldorado’s change in annual
GHG emissions is reported in the
Company’s annual submission to
the CDP.
ELDORADO GOLD YEAR IN REVIEW 2016
77
Material
topics
Report section
Page
number
Level of
reporting
Identified omission(s) and
reason(s) for omission(s)
Comments & links
UNGC
principle
6
For additional information
on Eldorado’s financial
performance, please see our
annual report:
www.eldoradogold.com/
investors/financial-
information/annual-reports/
At this time, we are unable
to report the number of site
stakeholder engagement plans
based on stakeholder mapping.
See above
We do not track the percentage
of senior management hired
from local communities, but
instead focus on the total
percentage of our workforce
hired from local communities.
We do not monitor or report on
new employee hires or employee
turnover by age group.
We do not track our
performance review
information by gender or
employment category.
We aim for all our employees
(100%) to conduct regular
(annual, if not more frequent)
performance reviews.
STRENGTHENING OUR COMMUNITY RELATIONS
G4-DMA
Letter from Our President
& CEO, Our Approach
to Responsible Mining,
Strengthening Our
Community Relations
8–9,
30–35,
55–65
Community and Government Support
G4-DMA
G4-SO1
Community Engagement,
Government Support
55–60
Local Impact Assessment
and Management Tools
57
Stakeholder Engagement
G4-DMA
Stakeholder Engagement
G4-SO1
Local Impact Assessment
and Management Tools
Local Employment and Procurement
G4-EC6
Eldorado Employees by
Gender and National
Representation
56
57
63
G4-LA1
Numbers of Employee Hires
and Rates of Turnover
64
G4-LA11
Sustainability Factors in
Compensation
35
Community Investment
G4-DMA
Community Investment
58–59
G4-EC1
Payments to Communities
and Community
Investments
58–59
Corporate Reputation
G4-DMA
Our Reputation
55–56
Regional Economic Development
G4-DMA
Regional Economic
Development
60
✓
✓
♦
✓
♦
♦
✓
✓
✓
✓
✓
✓
78
ELDORADO GOLD YEAR IN REVIEW 2016
Material
topics
Report section
Page
number
Level of
reporting
Identified omission(s) and
reason(s) for omission(s)
Comments & links
UNGC
principle
Fully ✓ Partially ♦ Reported Elsewhere ✗
RUNNING RESPONSIBLE OPERATIONS
G4-DMA
Running Responsible
Operations
66–69
Permits and Licences
G4-DMA
Permits and Licences
66
Political Climate in Countries of Operation
G4-DMA
Political Climate in
Countries of Operation
Human Rights
G4-DMA
Human Rights
Complaints and Grievances
66
67
G4-DMA
Complaints and Grievances 68
G4-SO11
Requests and
Complaints Received
68
Bribery and Corruption
G4-DMA
Bribery and Corruption
68
Relationships with Labour Unions
G4-DMA
Relationships with
Labour Unions
69
Transparency of Payments to Government
G4-DMA
Transparency of Payments
to Government
68–69
G4-EC1
Payments to Government
69
✓
✓
✓
✓
✓
♦
✓
✓
✓
✓
1, 2, 4, 5
At this time, we do not track
the number of grievances
addressed and resolved during
the reporting period.
We are reviewing the ways we
track and report grievances,
with the objective of improving
how we disclose the number
and status of grievances raised
each year.
ELDORADO GOLD YEAR IN REVIEW 2016
79
CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS AND INFORMATION
Certain statements and information in this Year in Review Report, including all statements
that are not historical facts, are forward-looking statements and forward-looking information
within the meaning of applicable U.S. and Canadian securities laws. Such forward-looking
statements or information include, but are not limited to, statements or information with
respect to our strategy, plans, goals, outlook, financial disclosure; our future financial and
operating performance, price of gold and other commodities, cash flow, cash costs, targets,
production and expenditures; our mineral reserve and resource estimates; and our proposed
mine development (including permitting), exploration, acquisitions, dispositions, our
expectation as to future performance at our mines and other events and developments that
have not yet happened. Often, these statements include words such as “plans”, “expects”
“is expected”, “budget”, “continue”, “projected”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates” or “believes”, or negatives thereof or variations of such words
and phrases or statements that certain actions, events or results “may”, “could”, “would”,
“might” or “will” be taken, occur or be achieved.
In particular, this Report includes forward-looking statements or information with respect to:
• our strategic priorities and principles, including commitments or targets in respect of
economic/operations; health, safety, environmental, governance and community matters
and adherence to or proposed adherence to certain global ethical, environmental and
social responsibility guiding frameworks;
• our guidance and outlook, including targeted 2017 production and cash cost, planned
capital and exploration expenditures for 2017 and mineral reserve and mineral resource
estimates;
• future financial and operating performance, including mineral reserve targets, debt to
capital ratio target, future cash flow, estimated cash costs and gold price outlook; and
• our plans and goals, including our proposed exploration, development, construction,
permitting, and operating plans and priorities, and related timelines.
Forward-looking statements and forward-looking information by their nature are based on
assumptions and involve known and unknown risks, uncertainties and other factors which
may cause our actual results, performance or achievements to be materially different from
any future results, performance or achievements expressed or implied by such forward-
looking statements or information.
We have made numerous assumptions, estimates and opinions that may prove to be incorrect,
including among other things, assumptions about the geopolitical, economic, permitting
and legal climate in which we operate; the price of gold and other commodities; exchange
rates; anticipated costs and expenditures; production, mineral reserves and resources and
metallurgical recoveries; the impact of acquisitions, dispositions, suspensions or delays on our
business; and the ability to achieve our goals. Even though our management believes that the
assumptions made and the expectations represented by such statements or information are
reasonable, there is no assurance that the forward-looking statements or information will prove
to be accurate. Many assumptions may be difficult to predict and are beyond our control.
Forward-looking statements and information contained in this Report are subject to risks,
uncertainties and other factors including, among other things, the following:
• volatility of global and local economic climate and geopolitical risk;
• title, permitting and licensing risks, including the risks of obtaining and maintaining the
validity and enforceability of necessary permits and licences, the timing of obtaining and
renewing such permits and licences, and risks of defective title to mineral property;
• gold and other metal price volatility and the impact of any related hedging activities;
• development, mining and operational risk, including timing, hazards and losses that are
uninsured or uninsurable;
• risks of operating in foreign countries in which we currently or may in the future conduct
business, including controls, laws, regulations, changes in mining regimes or governments
and political or economic developments;
• regulatory restrictions, including environmental regulatory restrictions and liability,
including actual costs of reclamation;
• changes in law and regulatory requirements or policies, including permitting, foreign
investment, environmental, tax and health and safety laws and regulations;
• competition for mineral properties and merger and acquisition targets;
• environmental risks, including use and transport of regulated substances;
•
infrastructure, water, energy, equipment and other input availability and durability, and
their cost and impact on capital and operating costs, exploration, development and
production schedules;
• community and non-governmental actions and regulatory risks, including the possibility
of a shutdown at any of our operations;
• ability to maintain positive relationships with the communities in which we operate in and
potential loss of reputation;
• perception of local people about foreign companies operating their lands;
• subjectivity of estimating mineral reserves and resources and the reliance on available
data and assumptions and judgements used in interpretation of such data and depletion
of grades or quantities of mineral reserves;
• discrepancies between actual and estimated production, mineral reserves and resources
and metallurgical recoveries;
• speculative and uncertain nature of gold and other mineral exploration;
• risks of not meeting production and cost targets or estimates;
• the loss of key employees and our ability to attract and retain qualified personnel;
• employee health and safety laws and human rights;
•
• prices for energy inputs, labour, material costs, supplies and services (including shipping)
labour disputes, labour shortages and risks associated with unionized labour;
remaining consistent with expectations;
• risk associated with co-ownership (including joint ventures);
•
•
• currency exchange fluctuations and the impact of any related hedging activities;
impact on operations of compliance with anti-corruption, anti-bribery and sanction laws;
increased capital requirements and the ability to obtain financing;
80
• risks associated with maintaining substantial levels of indebtedness, including potential
financial constraints on operations, interest rate risk and credit rating risk;
• the risks that the integration of acquired businesses may take longer than expected,
the anticipated benefits of the integration may be less than estimated or the costs of
acquisition may be higher than anticipated;
• the impact of acquisitions, dispositions, monetization, mergers and other business
combinations or transactions, including effect of changes in our portfolio of projects
on our current and future operations, capital requirements, and financial condition and
ability to complete such transactions;
litigation risks, including the uncertainties inherent in current and future legal challenges
we are, or may become, a party to;
•
• share capital dilution and share price volatility;
• taxation, including change in tax laws and interpretations of tax laws;
• financial reporting risks;
• failure, security breaches or disruption of our information technology systems; and
• risks related to natural disasters and climate change.
The reader is directed to our most recent Annual Information Form and our quarterly and
annual MD&A, each filed on SEDAR under our Company name, for a detailed discussion
of these and other risks, uncertainties and other factors relating to the forward-looking
statements and information. The discussion under “Risk factors in our business” in our most
recent Annual Information Form is incorporated by reference in this Report.
Although we have attempted to identify factors that would cause actual actions, events
or results to differ materially from those disclosed in the forward-looking statements
or information, there may be other factors that cause actual results, performances,
achievements or events not to be anticipated, estimated or intended. Also, many of the
factors are beyond our control.
Should one or more of the risks, uncertainties or other factors materialize, or should the
underlying assumptions prove incorrect, actual results may vary materially from those
described in forward-looking statements or information. Accordingly, readers should not
place undue reliance on forward-looking statements or information.
We undertake no obligation to reissue or update forward-looking statements or information
as a result of new information or events after the date of this Report except as may be
required by law.
All forward-looking statements and information made in this document are qualified by this
cautionary statement.
Cautionary Note about Production Outlook, Guidance and Estimates
Readers are cautioned that production outlook, guidance and estimates are subject to a variety
of factors that are likely to cause actual results to vary from our estimates, and such variations
may be material. Forward-looking information generally involves risks and uncertainties
as described above which are, in many instances, beyond our control, including: (i) global
and local economic and political conditions; (ii) pricing and cost factors; (iii) unanticipated
events, changes or delays in current development plans, execution of development plans,
future operating results, financial conditions or other aspects of our business over time; and
(iv) unfavourable legal, regulatory or policy developments, that could cause actual events
and results to vary significantly from those included in or contemplated by such statements.
The production outlook, guidance and estimates reflect certain assumptions by us, which
assumptions may differ with respect to future events, political, economic, competitive and
regulatory conditions, geopolitical climate, financial market conditions and future business
decisions, including, without limitation, a continuation of existing business operations on
substantially the same basis as currently exists all of which assumptions are difficult to predict
and many of which are beyond our control. Accordingly, there is no assurance that the
outlook, guidance and estimates are indicative of our future performance or that actual results
would not differ materially from those in the outlook, guidance and estimates.
Cautionary Note to U.S. Investors Concerning Estimates of Measured,
Indicated and Inferred Resources
The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource”,
“inferred mineral resource” used herein are Canadian mining terms used in accordance with
National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) under
the guidelines set out in the Canadian Institute of Mining and Metallurgy and Petroleum (the
“CIM”) Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as
may be amended from time to time. These definitions differ from the definitions in the United
States Securities & Exchange Commission (“SEC”) Industry Guide 7. In the United States, a
mineral reserve is defined as a part of a mineral deposit which could be economically and
legally extracted or produced at the time the mineral reserve determination is made.
While the terms “mineral resource”, “measured mineral resource,” “indicated mineral
resource”, and “inferred mineral resource” are recognized and required by Canadian
regulations, they are not defined terms under standards in the United States and normally
are not permitted to be used in reports and registration statements filed with the SEC. As
such, information contained herein concerning descriptions of mineralization and resources
under Canadian standards may not be comparable to similar information made public by
U.S. companies in SEC filings.
Mineral resources which are not mineral reserves do not have demonstrated economic
viability. With respect to “indicated mineral resource” and “inferred mineral resource”, there
is a great amount of uncertainty as to their existence and a great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any part of a “measured
mineral resource”, “indicated mineral resource” or “inferred mineral resource” will ever be
upgraded to a higher category.
Accordingly, information herein containing descriptions of our mineral deposits may
not be comparable to similar information made public by U.S. companies subject to the
reporting and disclosure requirements under U.S. federal securities laws and the rules and
regulations thereunder.
ELDORADO GOLD YEAR IN REVIEW 2016
CORPORATE INFORMATION
CANADA (HEAD OFFICE)
GREECE
BARBADOS
Eldorado Gold Corporation
1188 Bentall 5
550 Burrard Street
Vancouver, BC V6C 2B5 Canada
Tel: +1 604 687 4018
Fax: +1 604 687 4026
Toll-free: +1 888 353 8166
Hellas Gold SA & Thracean
Gold Mining SA
23A Vasilissis Sofias Avenue
Athens
10674 Greece
Tel: +30 214 687 0000
Fax: +30 214 687 0095
Eldorado Gold (Barbados) Limited
White Park House
White Park Road
Bridgetown
BB11135 Barbados
Tel: +1 246 271 5357
Fax: +1 246 271 5357
TURKEY
BRAZIL
THE NETHERLANDS
Eldorado Gold (Netherlands) BV
Barbara Strozzilaan 101
1083 HN, Amsterdam
The Netherlands
Tel: +31 204 509 610
Fax: +31 204 509 611
Tüprag Metal Madencilik
Sanayive Ticaret A.S.
Iran Caddesi
Turan Emeksiz Sok. No. 1
06700 Gaziosmanpasa
Ankara Turkey
Tel: +90 312 468 4536
Fax: +90 312 468 2646
CHINA
Eldorado Gold Corporation
Room 1001, West Tower
LG Twin Towers
B-12 Jianguomenwai Avenue
Chaoyang District, Beijing
100022 China
Tel: +86 10 5828 7966
Fax: +86 10 5828 7967
Unamgen Mineração e Metalurgia S/A
Avenida Olegário Maciel
1846 – Santo Agostinho
Belo Horizonte, MG
CEP 30180-112 Brazil
Tel: +55 31 2101 3750
Fax: +55 31 2101 3758
ROMANIA
Deva Gold SA
No. 9 Dragos Voda Street
BL. 28, SC. A-B
Deva, Hunedoara County
330034 Romania
Tel: +40 25 423 3680
Fax: +40 25 423 3682
ELDORADO GOLD YEAR IN REVIEW 2016
81
oz
Pb
PDAC
PPE
SDG
SIA
SLI
t
tCO2e
TRIFR
Troy ounce (31.1 grams)
Lead
Prospectors & Developers
Association of Canada
Personal protective
equipment
Sustainable
Development Goal
Socio-economic
impact assessment
Starting, lighting, ignition
Tonne (one thousand
kilograms)
Tonne of carbon dioxide
equivalent
Total Recordable Injury
Frequency Rate (per million
man-hours worked)
TSM
Towards Sustainable Mining
UNGC
VPs
United Nations
Global Compact
Voluntary Principles on
Security and Human Rights
GLOSSARY OF ACRONYMS, SYMBOLS AND ABBREVIATIONS
Degrees celsius
ISO
Proven and probable
International Standards
Organization
°C
2P
Ag
Au
B
BAP
CDP
CEO
CFO
CIL
COO
EGU
EIA
Silver
Gold
Billion
Biodiversity Action Plan
Carbon Disclosure Project
Chief Executive Officer
Chief Financial Officer
Carbon-in-Leach
Chief Operating Officer
European Goldfields Ltd
Environmental impact
assessment
ESTMA
Extractive Sector
Transparency Measures Act
g
G4
Grams
GRI’s fourth-generation
sustainability reporting
guidelines
GHG
Greenhouse gases
GJ
GRI
ICMC
ICMI
ICMM
Gigajoule
Global Reporting Initiative
International Cyanide
Management Code
International Cyanide
Management Institute
International Council
on Mining and Metals
ISO 14001
Environmental
Management System
ISO 14064
International standard for
GHG emissions, inventories
and verification
ISO 39001
Road Traffic Safety
Management System
ISO 50001
Energy Management System
One thousand troy ounces
One thousand tonnes
Liquefied petroleum gas
Lost-Time Injury
Lost-Time Injury Frequency
Rate (per million man-hours
worked)
Metre
Metre cubed
Million
Mining Association
of Canada
Koz
Kt
LPG
LTI
LTIFR
m
m3
M
MAC
Moz
NGO
OECD
OHSAS
Occupational Health and
Safety Assessment Series
OHSAS 18001 Occupational Health and
Safety Management System
One million troy ounces
WGC
World Gold Council
Zn
Zinc
Non-governmental
organization
Organisation for Economic
Co-operation and
Development
82
ELDORADO GOLD YEAR IN REVIEW 2016
Eldorado Gold Corporation
1188 Bentall 5
550 Burrard Street
Vancouver, BC V6C 2B5 Canada
Tel: +1 604 687 4018
Fax: +1 604 687 4026
Toll-free: +1 888 353 8166
eldoradogold.com
TSX: ELD
NYSE: EGO