Orano Mining
Corporate Social Responsibility
Report 2017
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Orano Mining, a socially responsible,
committed and forward-looking
Mining company

Jacques Peythieu, CEO, Orano Mining

Competitiveness, Development and Responsibility - the three pillars of our strategy

Our group’s transformation, which began several years ago, ended by refocusing of our business on the uranium cycle within a new company, Orano, launched in January 2018.

Orano owns all the technological, human and financial resources needed to ensure its own development and deliver a low-carbon energy that makes the nuclear industry a competitive industry for the future, with an active role to play in the fight against climate change.

Orano Mining - in an increasingly difficult uranium market - is honoring its commitments and pursuing its ambitious and socially responsible policy to sustainably guarantee supplies to its customers.

Maintaining our performance through careful management of our exploration and production capacities, operational excellence and innovation

To tackle the deteriorated market conditions’ challenges, we had to reduce our production and our workforce. The completion of the voluntary employee departure program in France, the implementation of social plans in Namibia and Gabon in 2017, and the plan initiated at SOMAÏR at the beginning of 2018 are difficult but unavoidable steps in this market adaptation process.

We are also strengthening the support and development we offer our teams, in particular via training courses at the Orano School of Management, and at the Orano Mining College for our core competencies: geology, mining and ore processing.

Thanks to our hard work and strong operational management, Orano Mining produced 10,500 tons of uranium in 2017, making us the third largest producer worldwide, with a turnover of € 1,294 million, representing 33% of Orano’s overall revenue. The operating income totaled 111 million euros.

To guarantee our production capacity, we are particularly focused on exploration and innovation. The agreement signed with KazAtomProm to obtain a new mining license on South Tortkuduk underlines our long-term commitment to and presence in Kazakhstan. We are investing in a major multi-sites exploration program in Canada, and we have begun construction of a pilot test on the Zuuvch Ovoo deposit in Mongolia to assess and improve the technical and economic conditions of this major project.

The operational excellence program is also contributing to delivering the performance levels required for our development. Shared and adopted by everyone within the company, it has enabled us to exceed our objectives set under the 2014-2017 competitiveness plan by 40%.

Being a responsible mining company is an everyday commitment for all Orano Mining employees

The fundamental principles of our policy are managing risk and ensuring the occupational health and safety of our employees and subcontractors. Despite an improved accident frequency rate in 2017, with a LTIFR of 0.67, we deeply regret the fatality that occurred in the COMINAK underground mine in Niger earlier this year.

In response, we are stepping up our awareness-raising activities, especially with local management, and introducing specific training to improve safety culture. In addition, one of my key concerns has been to make sure that we have systematic lessons-learnt and feedback sharing processes in place for accidents and incidents with high severity potential, to allow us to really improve safety standards and behaviors.

Observance of international standards and regulatory compliance, as enshrined in our policy, were particularly important this year, with training programs focused on Orano’s new Code of Ethics and the provisions of the new French Compliance and Anti-Corruption legislation (Sapin II Act). Orano Mining has also strengthened the mapping of social and environmental risks related to our activities and those of our subcontractors, again with a view to fulfilling our duty of care.

Our commitment to social responsibility also means reducing our environmental footprint. Over the past 10 years, we have been able to reduce GHG emissions by 25% in our production processes. We are furthering this effort with the launch of energy efficiency diagnostics at all of our operational sites.

We are strongly engaged in a permanent dialogue with our stakeholders to ensure the acceptability of our projects at each stage of the mining cycle. An update of the stakeholder mapping exercise was conducted in Mongolia and Niger in 2017 and will be deployed in Kazakhstan and in France in 2018. We have invested € 3.6 million in projects to benefit local communities in the essential areas of health, education, access to water and energy, and economic development.

For example, in Niger, the IRHAZER project to develop irrigation and agricultural activities was expanded in 2017 with € 1.6 million euros earmarked for the development of new hydro-agricultural project areas.

Our engagement is for the long term and this is clearly seen in the way we implement, monitor, reclaim and improve mine-closure projects in France, Niger and Gabon. In 2017, we stepped up the development of solar projects at our former french mining sites in order to reach a target of at least 15 renewable power plants on our sites by 2022, contributing additional renewable energy generating capacity to the grid, equivalent to the consumption of 70,000 households.

It is with the commitment, mobilization and expertise of the Orano Mining teams, and with the trust of our customers and partners that we are forging ahead, developing our mining activities for the years to come.

I hope that the information in this report demonstrates our determination to succeed in our vision and path.