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First Majestic’s Approach to Responsible Tailings Management

What are Tailings?

Tailings are a common by-product of mining. Through the process of mining, ore is crushed, pulverized, and processed, which separates the ore into valuable materials for further refinement and other non-economic minerals. This left-over non-economic mineral fraction is known as tailings and is typically composed of fine sand or silt material. Depending on whether the tailings are stored dry or wet, the tailings may also contain other by-products from processing, such as fluid used in the process.

The storage of tailings is an important aspect of mine planning, operation, and closure, and at First Majestic, we incorporate the industry’s best practices in the construction and management of our tailings storage facilities.

Tailings Management at First Majestic

The guiding principle of our tailings management practices is a goal of zero harm to people and the environment. At First Majestic, we have initiated a voluntary phased implementation of Global Industry Standard for Tailings Management (GISTM) in parallel with our alignment to Canadian Dam Association guidelines and local regulatory requirements.

The GISTM establishes the first global standard on tailings management. The Standard augments current tailings management practices by integrating social, environmental, local economic and technical considerations. It also covers the entire tailings facility lifecycle – from project conception, planning and design, through operation and ongoing construction, to closure and post-closure, and can be applied to both existing and future tailings storage facilities.

As part of our voluntary implementation of GISTM requirements, First Majestic ensures that all relevant engineering records for design, construction, operation, maintenance, and closure are maintained accordingly and in alignment with Topic III of GISTM. These principles are related to expectations around the design of tailings facilities.

As of April 2024, First Majestic manages 10 tailing storage facilities (TSFs); 6 filtered tailings storage facilities (FTSFs, also known as "dry stack tailings") and 4 conventional TSFs. Currently only 3 of these facilities are active, all of which are FTSFs.

FTSFs require dewatering of tailings material, resulting in a semi-solid tailings “cake” that can be conveyed or hauled with earthmoving equipment for stacking in compacted, semi-dry facilities. FTSFs result in less water used in water-stressed areas and lower tailings storage risk profiles. Our current dewatering systems are horizontal belt filters and vertical press filters to recover liquids used in the processing of ore before the dry tailings are transported, placed, and compacted in the FTSF. Any fluid that remains in the tailings are collected downstream at the pond storage facility and pumped back to the processing plant for reuse.

Although not currently in operation, TSF-2, a conventional TSF at Jerritt Canyon, is designed to accept tailings from our milling and processing circuits in the form of wet, high-water content “slurries”. Conventional TSFs can store and retain both tailings and water, which are separated by gravity within the facility. The separated water is recycled or “reclaimed” back to the processing plant or mill for reuse.

All FTSFs and TSFs operated by First Majestic are assessed on a regular basis and follow our internal Risk Management Protocols, the local regulatory requirements, and are on track to meet the Canadian Dam Association guidelines.

Our site personnel and geotechnical experts have implemented monitoring and surveillance programs consisting of regular inspections, the use of geotechnical instrumentation, and new technologies such as drone surveillance with instrumentation like photogrammetry and thermal imaging. Independent expert reviews of our facilities are conducted via Dam Safety Inspections (DSI) on a regular basis and as part of our risk management protocols, and we are continually assessing our tailings dam management systems.

Our tailings management practices focus on the following key aspects:

Governance: Responsible Tailings Facility Engineers (RTFE), internal and external engineers of record responsible for ensuring compliance with all requirements and expectations. Informed by Topic IV of GISTM.

Integrated Knowledge Base: We characterize and regularly update interdisciplinary knowledge to continually improve the design, construction, operation, closure, and maintenance of tailings facilities. Informed by Topic II of GISTM.

Monitoring, Surveillance and Auditing: Dam safety inspections are performed by qualified engineers. External quality assurance is performed for filtered tailings placement, geotechnical instrumentation, and tailings monitoring systems. Informed by Topic III of GISTM.

Emergency Preparedness and Response: We have established and provide training in emergency preparedness plans, as well as alert threshold monitoring and related Trigger Action Response Plans (TARPs). Informed by Topic V of GISTM.

Affected Communities: We periodically assess and map potential impacts of tailings facilities. Informed by Topic I of GISTM.

Public FTSF / TSF Disclosure: In response to a July 2019 request from the Investor Mining & Tailings Safety Initiative, chaired by the Church of England and Swedish Council on Ethics for the AP Funds, First Majestic provided specific details and information regarding our tailings facilities and our approach to tailings management. We are committed to working with stakeholders and being open and transparent on this important issue. Informed by Topic VI of GISTM.

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