Environment

Respect for the environment is a core Company value and is at the forefront of business strategy, decision-making, and day-to-day operations.

Cyanide management

The Ban Houayxai Operation uses cyanide in its processing circuit to extract gold and silver from mined ore. While cyanide use is a common practice in precious metal extraction, PanAust prioritises stringent operating and environmental controls to ensure the safe transportation, use, and disposal of cyanide and related products.

PanAust is a signatory to the International Cyanide Management Code (The Cyanide Code), a voluntary program administered by the International Cyanide Management Institute (ICMI) to promote the responsible manufacture, transport, use, and disposal of cyanide in gold and silver production. The Ban Houayxai Operation is certified under the Cyanide Code, reflecting PanAust’s commitment to adhering to international best practices. 

From the outset, Ban Houayxai was designed to meet Cyanide Code compliance, incorporating robust process controls, bunding, leak detection systems and procedural safeguards. A key feature of the plant is its detoxification circuit, which uses the INCO process to destroy cyanide in tailings slurry. The tailings contain less than 0.5 parts per million of cyanide, significantly below the International Finance Corporation’s recommended safe levels for discharge into the environment. Although this level technically exempts the operation from Cyanide Code compliance, PanAust voluntarily maintains certification to reinforce its environmental stewardship. 

Ban Houayxai received pre-operational certification to the Cyanide Code in 2012, followed by operational certification in 2013. Recertifications were achieved in 2016, 2019 and again in 2022 after a formal audit in August/September by WSP (Golder). The most recent certificate of compliance was issued in May 2023. Annual internal gap audits further ensure ongoing compliance. Certification audit reports and PanAust’s signatory status are publicly available on the ICMI website.

PanAust recognises that effective cyanide risk management requires a trained and competent workforce. The site-based Emergency Response Team is equipped to handle cyanide-related incidents and environmental rehabilitation efforts. Additionally, Ban Houayxai conducts regular cyanide awareness sessions for communities along its transportation and concentrate haulage routes.

Previously, cyanide transportation was handled by a third-party Cyanide Code-certified transporter. In 2022, PanAust transitioned to in-house transportation capabilities through its subsidiary, Phu Bia Mining Logistics. This subsidiary oversees employee transport, concentrate haulage, and inbound freight across Laos, Vietnam and Thailand. Cyanide is transported to Ban Houayxai from the Port of Da Nang, Vietnam. 

To support this transition, PBM Logistics achieved Cyanide Code certification for its logistics operations in 2022. Independent audits conducted in September 2022 confirmed full compliance with the ICMI Transportation Verification Protocol. Following the submission of the audit findings, PBM Logistics received its certificate of compliance in March 2023. 

PanAust’s adherence to the Cyanide Code exemplifies how effective planning and commitment to best practices mitigate environmental risks while ensuring safe and responsible cyanide management across its operations. 

Dust and noise emissions

Mining, processing, haulage of products and transportation activities at PanAust’s sites can generate dust and noise emissions. Recognising the importance of managing these environmental impacts, PanAust proactively assesses and mitigates associated risks. Dust and noise emissions are primary concerns for communities near the Phu Kham Operation, particularly due to its proximity to populated areas and activities like waste rock dump construction and the Haul Road Anomaly open pit. In contrast, such emissions are less concerning at the Ban Houayxai Operation, given its more remote location.

Dust Emissions

Dust impacts primarily concern vegetation, community infrastructure, and air quality. At the Phu Kham Operation, dust is generated from several activities, including:

• Haul road usage.
• Ore stockpiling.
• Blasting, drilling and excavating.
• Ore dumping at the primary crusher.

Mitigation Measures: To minimise dust emissions, PanAust implements several strategies:

• Land disturbance control: Reducing exposed areas prone to dust.
• Road watering: Regular watering of haul roads to suppress dust.
• Dust suppression equipment: Filters and suppression systems on drills and conveyor systems.
• Covered transportation: Ensuring products are transported in covered vehicles.

An internal Dust Management Forum and a Dust Management Plan guide these efforts, supported by a Trigger Action Response Plan (TARP) for acute dust issues. PanAust also conducts regular ambient air quality monitoring in nearby communities and personal exposure monitoring for employees.

Community Engagement and Monitoring

• Weekly dust monitoring reports are shared during the wet season, increasing to daily reports during the dry season for areas near the Nam Gnone village.
• Quarterly presentations to local authorities and village communities provide updates on dust levels and address grievances.
• In 2020, four strategically placed air quality monitoring stations were introduced at Nam Mo, Nam Gnone, the Phu Kham process plant, and the accommodation camp. These stations offer real-time notifications, enabling timely adjustments to mitigate dust issues.

Despite robust controls, air quality challenges persist during the dry season due to regional burning across Southeast Asia. PanAust uses data from monitoring stations to continuously refine its dust mitigation strategies.

Noise Emissions

Noise is a concern for nearby villages, particularly at night, due to potential impacts such as sleep disruption and fatigue. The primary sources of noise at the Phu Kham Operation include:

• Mining equipment operating near villages.
• Haulage trucks reversing.
• Noise from the primary crusher.

Noise Monitoring and Management: Four noise monitoring stations are located near Nam Gnone village and the north-west dump development area. These monitors provide real-time data, enabling immediate adjustments by the mining team. Key actions include:

• Weekly data reviews by the Environment Team.
• Reporting findings to the mining team to improve noise abatement strategies.