Tailings management

Fortuna Mining Corp. and its subsidiaries recognize that safe tailings management is a core component of sustainable precious metals production, and a tailings incident could have major impacts on the surrounding environment, host communities, the local economy, Fortuna’s own operations and the broader industry.

Tailings and waste rock are regular by-products of mining and minerals processing and require safe storage and responsible management. Fortuna is committed to ensuring continued Tailings Storage Facility (TSF) safety and structural integrity across the life cycle of each of the facilities in its portfolio. Fortuna is also committed to reviewing and incorporating additional relevant best practices in its safe tailings management.

To this end, Fortuna has developed and implemented governance mechanisms, together with a strategy for managing this issue, risk management processes and defined metrics and targets.

Governance

Board Oversight

Fortuna’s commitment to responsible tailings management follows the same integrated governance structure as our other sustainability-related risks and opportunities.

The Board of Directors (the Board) is responsible for the stewardship of the Company. Its responsibilities include overseeing the Company’s management and conduct, providing direction and guidance to management and overseeing the identification and management of business-related risks, which includes sustainability-related issues and tailings management.

The Sustainability Committee assists the Board in overseeing the Company’s obligations in the areas of health, safety, security, the environment, sustainable development and social responsibility, and related corporate objectives. The Sustainability Committee is composed of four members of the Board, a majority of whom are independent. The Committee’s core responsibilities include monitoring and assessing tailings management performance.

Management Accountability

Typically, Fortuna’s management team integrates sustainability into its governance by setting strategic goals, ensuring compliance, driving innovation, fostering stakeholder engagement and promoting responsible practices to ensure long-term success and positive impact.

For tailings management, specific governance mechanisms have been developed based on the Global Industry Standard on Tailings Management (GISTM), which include an Accountable Executive (AE), an Independent Tailings Review Board (ITRB), a Corporate Responsible Tailings Facility Engineer (CRTFE), Engineers of Record (EoRs) and Responsible Tailings Facility Engineers (RTFEs) for each operating mine.

At the corporate level, the Senior Vice President of Sustainability, who reports directly to the CEO, is designated as the AE and is accountable for tailings facility safety. He ensures the reporting to the Board and the appointment of the ITRB.

An ITRB is composed of independent third-party subject matter experts not currently involved in the design or stewardship of the facility. It provides non-binding advice and guidance on all aspects of TSF lifecycle management, reinforcing a strong culture of safety and compliance. The ITRB reviews the design, construction, risk assessments, governance systems and other risk management matters that can affect the tailings facility safety, ensuring the required expertise and skill sets at every stage of the asset’s life.

The Corporate Director, Geotechnical, Tailings, and Water serves as the CRTFE and is responsible for the safety of the tailings facility and for environmental and social performance. He establishes corporate policies, standards and guidelines with respect to the TSF. The CRTFE is also responsible for conducting internal audits on TSF performance and for carrying out annual corporate reviews of tailings management to the AE and CEO.

An EoR is a senior level consultant from a reputable consulting firm, independent of Fortuna and its subsidiaries. The EoR is generally responsible for the design report, construction and performance reviews, deviance accountability report, dam breach assessment and annual dam safety inspections. Each site has a designated EoR. 

In addition, at the operational level, country heads/general managers responsible for tailings management of their mine site appoint RTFEs and deputy RTFEs. They are responsible for developing and implementing a tailings and water management plan at their site, compiling TSF monthly monitoring data and summary reports for the EoR and CRTFE and ensuring compliance with regulatory requirements, Health, Safety, Environment and Community (HSEC) Standards and relevant guidelines for tailings management. They are also accountable for the integrity of the TSF.

Figure 1: Fortuna Tailings Governance Framework

Board of Directors (BoD)Sustainability CommitteeAccountable Executive(SVP Sustainability)Corporate Responsible Tailings Facility EngineerCorporate Manager of TailingsEngineer of Record & Design Team(maximum one per region)Site Responsible Tailings Facility EngineerCharter and KPIsGovernance agreementPartnership agreementsGuidelines (design, operation, emergency, community, monitoring), KPIs and Management SystemPosition Statement (in addition to integration within ESG policies)Corporate standardsStandard and site performance assurance and Management SystemConformance to standards and guidelinesCOOsOperation Directors

Through this comprehensive governance framework, Fortuna has established multiple lines of defense to prevent TSF failures and ensure the safe and responsible management of tailings.

Figure 2: Fortuna’s Tailings Governance Mechanisms and Lines of Defence (LoD)

12341st LoDTSF Owner (GM/CH)Responsible Tailings Facility Engineer (RTFE)Engineer of Record (EoR)2nd LoDCorporate Responsible Tailings Facility Engineer (CRTFE)Accountable Executive (AE)3rd LoDIndependent Tailings Review Board (ITRB)Periodic Dam Safety Review (DSR)4th LoDExecutive LeadershipCEOBoard of DirectorsDam Breach Assessment (DBA)Design Basis Report (DBR)Operation, Maintenance and Surveillance (OMS) ManualTrigger Action Response Plan (TARP)Dam Safety Inspections (DSI)Water BalanceDeviance Accountability Report (DAR)Design ReviewFSM standards & auditsTailings Management System (TMS)Dam Safety Review (DSR)ITRB review reports (on DBA, DBR, DSI, DSR, Operations and ongoing support, etc.)GISTM Compliance reportQuarterly meeting reviewsSite BasedImplementationSystematic ThirdParty ReviewLeadershipCommitment

Policies

Our ESG Policies outline Fortuna’s commitments to tailings management and are guided by the following:

  • Our Environmental Policy highlights our commitment to minimize risks and impacts associated with tailings;
  • Our Health and Safety Policy includes considerations during the immediate response to a catastrophic facility failure; and
  • Our Community Relations Policy outlines our priority to develop participative community-focused mechanisms for emergency preparedness and post-failure recovery.

Strategy

To support proactive decision-making, we periodically conduct a materiality assessment of key sustainability factors, which helps us identify and classify sustainability-related risks and opportunities across short-, medium- and long-term horizons. These assessments allow us to prioritize issues that generate value for both the Company and our stakeholders.

As tailings management has been identified as a key sustainability factor, Fortuna’s strategy, defined in 2022 by its Position Statement on Global Industry Standard on Tailings Management (GISTM), was to implement GISTM to guide the adaptation of a broader tailings management approach than the one previously based on the Canadian Dam Association (CDA) and on the Australian National Committee on Large Dams (ANCOLD).

To implement the GISTM, Fortuna has developed a work plan for its application in the field over the next five years (2023–2027), which includes elaboration and application of three corporate TSF standards concerning governance, technical and social considerations in addition to our emergency preparedness and response plan.

TSF Governance Standard

Beyond the technical aspects required for safe and reliable TSFs throughout their life cycle, a set of governance practices is also necessary to:

  • Outline the requirements and core activities that form the basis of Fortuna’s TSF governance.
  • Ensure that appropriately qualified and competent individuals are nominated and suitably involved in making decisions.
  • Provide a reference for the various individuals involved in these activities, so that they may have a clear understanding of their responsibilities and liaise with the appropriate personnel while planning or conducting these activities.
  • Align our TSF governance to be compliant with the GISTM framework as outlined by the International Council on Mining and Metals (ICMM), the United Nations Environment Program (UNEP) and the Principles for Responsible Investment (PRI).
  • Ensure that risks and opportunities are identified and managed in a timely manner with sufficient resources (people and capital).
  • Ensure that mechanisms are in place for monitoring, evaluating and reporting on the status of TSF-related activities.
  • Ensure that emergency preparedness and response planning is robust and involves employees, contractors and communities.

TSF Technical Standard

The objective of this standard is to provide specific technical requirements and guidance to ensure safe TSF management at Fortuna’s subsidiary operations, by setting out the minimum technical work to be executed, roles and responsibilities and overall management processes, and tools for the conception, planning, design, initial construction, operation, and ongoing construction, interim closure, closure and post-closure of tailings infrastructures.

Our TSF Technical Standard is being implemented and covers: facility integrity; planning and design; review requirements (ITRB, Dam Safety Reviews (DSR), audits, etc.); knowledge base and technical characterization requirements; knowledge base on social and environmental context; alternative analysis; Design Basis Report (DBR); flood design criteria; stability design criteria; management of change; dam breach analyses; consequence classification; construction records report; Deviance Accountability Report (DAR); annual performance report; Operation, Maintenance and Surveillance (OMS) manual; risk assessment; water management; Emergency Preparedness and Response Plan (EPRP); Tailings Management System (TMS); and performance management. The standard applies to all Fortuna operations and new projects.

As per the GISTM, we design TSFs for closure and incorporate best practices for mitigating long-term risks and reducing liabilities. Our approach for our operations is to have a closed-circuit water balance with no effluent discharge to minimize environmental impacts while maximizing recycled water from the operation. Additionally, specific TSFs and waste rock stockpiles management reduce the infrastructure footprint at our underground operations where waste is used for mine backfill.

Acknowledging the importance of continuous improvement and adaptation to industry practices and expectations, Fortuna is committed to reviewing and incorporating additional relevant best practices in its safe tailings management. Design, construction and annual performance reviews are conducted regularly by EoRs from external consulting firms on our operating TSFs. Reputable consulting firms such as SRK Consulting and Knight Piésold Consulting provide our qualified EoR and Deputy EoR for our TSFs and new projects. EoRs and our Corporate Responsible Tailings Facility Engineer (CRTFE) visit our operating sites annually.

TSF Social Standard

The objective of this standard is to define minimum social requirements for tailings management to be followed by Fortuna’s operations and projects. Performance expectations are established for TSFs in each of its lifecycle stages aligned with the TSF Technical Standard and the TSF Governance Standard.

Our TSF Social Standard is being implemented and covers: an interdisciplinary knowledge base of the social, environmental and local economic context; consequence classification; human rights due diligence; meaningful engagement and disclosure; grievance management mechanism; Free, Prior and Informed Consent (FPIC); whistleblower management mechanism; emergency preparedness and response plan; risk assessment; impact assessment; and an Environmental and Social Management System (ESMS) that applies to all Fortuna operations and new projects. 

Emergency Preparedness and Response Plan

Each of our operating mines is equipped with a comprehensive Emergency Preparedness and Response Plan (EPRP) that is regularly tested and addresses a range of potential emergencies, including mining accidents, plant failures, environmental spills and TSF incidents. EoRs develop detailed, site-specific plans to identify hazards and assess response capabilities, which are incorporated into our OMS manuals and EPRPs. We maintain open communication with employees, contractors, emergency public agencies and/or local authorities to share emergency protocols and facilitate timely response.

Continuous Improvement of Legacy Tailings

As part of our ongoing commitment to safety, we are committed to continually working to lower the GISTM consequence classifications to an As Low As Reasonably Practical (ALARP) level, with the aim of guaranteeing the long-term safety of our tailings facilities.

Risk Management

Tailings management risks are a critical focus for Fortuna. They are integrated into our Enterprise Risk Management Program to ensure a consistent and proactive approach to managing the potential impacts of tailings storage facilities on the environment, communities and our operations. Regular reviews, independent audits, and ongoing TSF performance monitoring are conducted to proactively identify and address potential risks. These efforts include rigorous assessments of dam stability, environmental impacts, and social risks, such as those related to community health and safety.

Where needed, we implement ALARP based on a Qualitative Risk Assessment (QRA). The procedure for estimating ALARP levels based on QRA is as follows:

  • Assess the current conditions (as is) using Failure Mode Effects Analysis (FMEA) framework;
  • Perform a hazard and consequence assessment based on the FMEA results;
  • Evaluate hazard-element relationships and related probabilities of occurrence (failure);
  • Benchmark the probability of failure and evaluate multi-dimensional consequences;
  • Plot results to evaluate risk tolerance versus ALARP;
  • Determine level of mitigations by EoRs and owners;
  • Evaluate residual effects to determine the minimum ALARP (mitigation versus CAPEX equilibrium); and
  • Identify the mitigation measures that meet ALARP considerations and are also endorsed by the owners, ITRB and EoRs.

Metrics and Targets

We have established a zero-harm ambition for tailings management, which encompasses the prevention of all significant tailings’ incidents, seepage, downstream impacts and instabilities within our TSFs. Furthermore, we are committed to fully complying with all applicable GISTM requirements for every TSF we own and operate.

We are especially monitoring the following impact metrics:

  • Number of tailings incidents recorded;
  • Number of seepages observed or measured downstream from our TSFs;
  • Number of movements or instabilities observed with our TSFs;
  • Total weight of tailings produced and percentage recycled;
  • Key TSF operational parameters such as operational status, consequence classification level and current TSF height versus permitted.

As part of our GISTM commitments, we also aim to:

  1. For future new TSF facilities: adopt GISTM and achieve compliance to applicable GISTM requirements during the first year of operation.
  2. For all existing TSF facilities owned and operated by Fortuna: continue to perform necessary studies to assess and fulfill GISTM applicable requirements, in order to:
    • Ensure compliance by Fortuna with applicable GISTM TOPIC IV requirements on Management and Governance by the end of 2024;
    • Ensure compliance of the applicable requirements of GISTM TOPIC III on Design, Construction, Operation and Monitoring for all company-owned TSFs by the end of 2025; and
    • Ensure compliance of all other applicable requirements of the GISTM for all company-owned TSFs by the end of 2027.

For the most recent data and performance regarding our metrics and targets, please refer to:

  1. Our Sustainability Report
  2. Our Interactive Analyst Center