Corporate Responsibility Overview 

Sustainability is a long-term view that requires commitment and awareness during the implementation of important business decisions. Yamana is committed to operating in a socially and environmentally conscious manner and for the betterment of local communities.

To these ends, the Company has adopted codes of conduct that are designed to ensure the health and safety of its personnel and people in local communities and the protection of the environment.

Yamana – Sustainability

Applying social, health and safety and environmental standards and policies to our business operations is the key to sustainability at Yamana. We are committed to balancing the ethical and environmental demands of the market, while responding to the concerns of local communities and stakeholders. For Yamana, sustainability encompasses issues such as reclamation, cultural responsibility, employee best practices, ecological and environmental awareness and economical viability. As a result, we are committed to the following: 

• To follow all the laws of the country and local communities where we operate;
• To maintain best practices for mining, health and safety and the environment;
• To understand and control risks related to safety, the environment, and the community;
• To maintain respectful relationships with the communities in which we operate;
• To operate our business in a highly ethical manner while supporting the Yamana strategy and vision.

The Yamana Management System (SYG): Responsible Mining

Yamana is focused on minimizing and controlling risk for both employees and the environments in which it operates. Based on the highest international standards, Yamana has a corporate integrated management system for Safety, Health, Environment, Community Relations and Social Responsibility referred to internally as SYG, which stands for the Yamana Management System in Portuguese. This system was developed in October 2006 and is based on best practices and international standards – ISO 14001:2004 - Environmental Management System - OHSAS 18001:1999 - Occupational Health and Safety Management System - SA 8000 - Social Accountability, and the International Cyanide Management Code.

The International Organization for Standardization (ISO) is the world's largest developer and publisher of International Standards. ISO is a non-governmental organization that forms a bridge between the public and private sectors and enables a consensus to be reached on solutions that meet both the requirements of business and the broader needs of society. Social Accountability International (SAI) is a non-governmental, international, multi-stakeholder organization dedicated to improving workplaces and communities by developing and implementing socially responsible standards. Both organizations provide international guidelines that Yamana’s Management System follows very closely.

SYG involves risk assessment, identification of all legal and contractual requirements, definition of Company objectives and targets, and systems to ensure that Yamana operates in compliance with its policies and management program. The implementation of SYG commenced in Brazil and Honduras in 2007 and in Chile in 2008. Yamana will continue consolidating SYG across all operations in 2009 and 2010.

Benefits of this system include heightened environmental monitoring and control and enhanced safety initiatives. Extensive training sessions are a key part of the implementation process.

Yamana’s Safety, Health, Environment and Community (SHEC) Committee

Each of our mining operations has an established SHEC Committee which is chaired by the General Manager. These committees meet at least once a month to discuss issues and solutions related to safety, health, environment, community relations and other operational practices. The goal of each SHEC Committee is to measure the effectiveness and performance of our sustainability programs.

Our Communities

Yamana’s employees work and live in communities across North, Central, and South America. We share the air and soil, work with local suppliers, hire local employees and build relationships in the same regions in which we operate. We listen to and value input from communities, embrace the rich local cultural and economic opportunities and as a result our community relations are incredibly strong.

Yamana community initiatives at a glance:

Partnership Seminars - These seminars are conducted within the communities surrounding our mining operations. Yamana accepts proposals to support local education, environmental, cultural, economic, and health projects. In 2008, Yamana completed 44 projects in Brazil focused on creating sustainability, and supporting employment, businesses, sports and local culture. Similar programs will be implemented in Chile and Argintina in 2009.

“Open Doors” Program - This program aims to establish, in a clear and transparent manner, better communications between Yamana and our local communities. Community representatives from several sectors visit each mine to learn more about the Company’s vision, values, safety procedures and environmental management. In 2008, there were a total of 98 visits across all of Yamana’s operations.

Integrar Program - To help create a brighter future, Yamana established and implemented an initiative called the Integrar Program. This program consists of four modules with specific actions in health, environment, community and family. Within the program is a day called the Integrar Day in which Yamana volunteers make a variety of services available to local communities in partnership with the government and private sector. The services offered include medical exams, environmental education, and completion of legal documentation and are focused on improving quality of life. 

Working with Local Suppliers - At Yamana we strive to work with local suppliers, and whenever possible, source local products, equipment and services.  Yamana’s goal is to stimulate local economies and create sustainable opportunities for employment and business growth.

To ensure these initiatives are effective and support the future of each community, Yamana conducts community surveys to gather feedback and generate new ideas on how to better contribute to local cultural, health, education and business needs.
 

Partnership In Action: Creating Sustainable Communities

Yamana provides various sustainable economic development programs within the communities surrounding our operations. In 2008, the focus of Yamana’s community programs was on economic development – creating opportunities for employment and business growth. Some of the programs we supported included:

• At Chapada in Brazil, sustainable economic development programs supported the NGO Mulher em Ação (Woman in Action) and local entrepreneurs by donating advertising equipment and selling products produced by the group.
• At El Peñón in Chile, sustainable economic development was supported through cooking classes and hairdressing courses designed to assist women in Vila Esperenza’s community in Antofagasta.
• At Gualcamayo in Argentina, dental health campaigns were held at community schools in areas around the mine. The expansion of the drinking water network in Huaco was supported through an agreement with a government organization. A power line was constructed through one of the local towns to providing them with access to power. A youth sports program “Sports for Our Youth” provided the Jachallera Soccer team with equipment, uniforms and travel arrangements. 
• At Jacobina in Brazil, Yamana financed the renovation of the philharmonic orchestra’s headquarters helping to improve the conditions of music classes and orchestra rehearsals.
• At Minera Florida in Chile, the installation of an antenna for cellular communication around Talamí and Alhue was supported, providing residents of those areas with the ability to communicate.
• At Fazenda Brasileiro in Brazil, sustainable economic development was supported with the construction of a community bakery.
• At San Andrés in Honduras, Yamana contributed to community education by donating computer science equipment, books and furniture for the library. In addition, an on-site literacy program was initiated at the mine providing Spanish reading and writing classes to all Yamana employees. Forty students participated in the first course offered at the newly constructed Development and Integration Center. The mine has requested the Honduras government provide a literacy grant to each student to allow them to continue with their studies.
• In Mato Grosso, where Yamana’s São Francisco and São Vicente mines are located, Yamana sponsored a computer science school for local adolescents.
• At Água Rica in Argentina, the creation of 14 small businesses was supported. Each business is managed by three local families and produces and markets numerous products such as food, arts and crafts, clothing, shoes, flowers and plants.  So far these businesses have been successful with strong sales, improved products and expanding business plans.

At Yamana we strive to work with local suppliers, and when possible, source local products, equipment and services. Currently, our suppliers are selected under the due diligence of the Safety, Health, Environment and Community Studies and industry standards.