Description of the company

Dragon Mining Oy is a Finnish mining company that conducts ore exploration around its mines. Dragon Mining Oy is owned by the Australian Dragon Mining Ltd, which is listed on the Hong Kong stock exchange. In 2023, the company have an operating gold mine in Jokisivu Huittinen, where the ore is mined underground. The production of  Kaapelinkulma mine in Valkeakoski ended in April 2021 and the production of the Orivesi mine ended in June 2019. In these mines the closure processes are ongoing. The ore mined from the Jokisivu mine is processed at the Vammala Plant in Sastamala. The Vammala Plant is a conventional flotation facility that produces gold concentrate and a lesser amount of gravity gold.  The company’s main product is gold concentrate.

The answers presented in the social responsibility report concern the Jokisivu, Kaapelinkulma and Orivesi mines and the Vammala Plant.

Link to the company's responsibility report
TSM-tulokset ovat saatavilla todentamisen jälkeen.

Social Responsibility Report

Company in figures

  • Production volume: A total of 5900t of gold concentrate
  • Total mining: Ore approx. 320,000 t and waste rock approx. 115,000 t.
  • Reported one reserves: Jokisivu: Proved 370 000 t @ 2,4 g/t Au. Probable 1 000 000 t @ 1,9 g/t Au.
  • Reported mineral reserves: Jokisivu: Measured 530 000 t / 3,7 g/t Au. Indicated 1 400 000 t / 2,9 g/t Au. Inferred 950 000 t / 2,6 g/t Au. Kaapelinkulma: Measured 21 000 t / 1,9 g/t Au. Indicated 41 000 t / 3,2 g/t Au. Inferred 100 000 t / 4,4 g/t Au. Orivesi: Measured 93 000 t / 5,0 g/t Au. Indicated 110 000 t / 5,9 g/t Au. Inferred 71 000 t / 4,8 g/t Au.
  • Year of commencement: Mining at Huittinen Jokisivu mine started in 2009. Mining at Valkeakoski Kaapelinkulma started in 2019 and ended in April 2021. The closure plan for Kaapelinkulma has been approved by the authority. The operation of the Orivesi mine started in 2006 (restarting of mining operations), there was a shutdown in 2003–2006, the mine was opened for the first time in 1994 by another company. The operation of the Orivesi mine ended in June 2019 and the closure plan has been submitted to the authorities. During 2023, a Natura assessment has been carried out, which, once completed, will supplement the closure plan. The Vammala Plant crushing, milling and flotation facility was recommissioned in 2007. The Vammala Plant was closed between 2003 to 2007, and was originally opened in the mid-1970s by another company.
  • Expected remaining life of the mine: 0-5
  • Mining area: A total of 341 hectares
  • Number of own employees (31.12.): 35
  • The main localities of the employees: Sastamala, Tampere, Nokia, Huittinen.
  • Number of permanent contractors (31.12.): 49 persons
  • Operating profit EBITDA: 13,2 million euros
  • Paid capital gains tax: 1,57 million euros

Information about prospecting

In 2023, exploration has been done in Jokisivu and Kaapelinkulma mining concession and mining permit areas by diamond drilling and channel sampling.

  • Number and area of reservation areas: 0
  • Number and area of exploration permit areas: 1 pcs ja 89 hectares
  • Number and area of exploration permit application: 6 pcs ja 768 hectares
  • Exploration permits under appeal: 0
  • Exploration drilling: 9,6 km

Surroundings

The company's environmental practices:
Yes No
Location in a nature reserve*
Environmental Management System **
Environmental impact assessment required (in accordance with the EIA Act) *
Measurements for dust
Measurements for noise
Measurements for vibration
Environmental risk assessment carried out
Deviations from environmental permits ***
Closure plan for the mine
Plan for the controlled shutdown of the mine in unexpected situations
  • *** 1 pcs (a slight excess of solids in mine discharge water).
  • Environmental permit granted: Yes
  • Year of permit: Jokisivu: The valid environmental permit was granted in 2010, which was partially amended in 2016. The updated environmental permit application was submitted to the Regional State Administrative Agency in 2024. Vammala: The valid environmental permit was granted in January 2024.
  • Link of permit: -
  • Guarantee in accordance with the Environmental Protection Act: In accordance with the permits.
  • Financial guarantee in accordance with the mining act in the mining permit area: In accordance with the permits.
  • Financial guarantee in accordance with the mining act in mineral exploration permit area: In accordance with the permits.

Key Figures

  • Amount of mining waste: Waste rock about 115 000 t and tailings about 315 000 t.
  • Utilixation of extractive waste: In 2023, about 160000 t of waste rock has been transported and used as a stope backfill material of the Jokisivu underground mine. About 12000 t of waste rock was crushed for own use.
  • Fuel Consumption: Fuel oil 460 t, Diesel 340 t
  • Other energy consumption: Electricity 14,7 GWh. The heating plant at Jokisivu used 0,27 GWh LPG.
  • Energy consumption target:
  • CO2 emissions from the mine: CO2 emissions from fuels approx. 2400 t and CO2 emissions from LPG approx. 62 t.
  • Water consumption: The Company uses groundwater, surface water and recycled water in its operations.
  • Discharge of water outside the mining area: Jokisivu 0,25Mm3, Vammala 0,75Mm3, Kaapelinkulma 0,006Mm3, Orivesi 0Mm3
  • Number of dams in the mining area: 1 pcs (Vammala tailings area, class 2).
  • Endangered species are present in the operational area: Yes
  • Use of environmentally hazardous chemicals: Environmentally hazardous chemicals are not used in the mines. In the flotation process of the Vammala Plant, collector chemicals are used and some of those have been defined as dangerous for the environment. The chemicals are mainly remained in the the final product (concentrate).
  • Biodiversity actions:
    • The Jokisivu mining area has a viable flying squirrel population. A large number of huts suitable for flying squirrels have been installed in the area by the mining company. The last flying squirrel survey was carried out in 2022. New huts were installed during the summer of 2023.
    • In the Kaapelinkulma area, the Woodland brown butterfly has been monitored in 2018–2024, and based on the monitoring, the butterfly populations in Kaapelinkulma have been found to be viable.

Personnel and security

The company's personnel practices:
Yes No
Staff initiative system
Performance appraisals concerning the entire personnel
Staff training plan
Equality plan
Employee representation in company administration
Occupational health and safety management system*
Occupational safety card for everyone working in the area
Own rescue unit
  • * Not certified, also applies to contractors.

Key Figures

  • Average training days: 2,0 days/employee
  • Sickness absences (excluding contractors): 4,1 days/employee
  • Accident frequency: Companys employees 2 accidents, 34.58 accidents per million working hours. Contractors 2 accidents, 22.52 accidents per million working hours.
  • Shift systems in use: 2-shift system, 7.5-hour working day system, 12-hour working day system, flexible working time.
  • Share of women in the labour force:

Impact on the use and livelihoods of nearby areas

Impact on local livelihoods:

  • Mining operations are not located in the reindeer herding area. The municipality, residents of the surrounding area, landowners and rural businesses are taken into account in the company’s stakeholder cooperation work.

Impact on nearby recreational use:

  • According to the company’s own assessment, its operations partially have an impact on land use when the operational areas are away from other uses.
  • The finished operation of the Orivesi mine had effects on the two lakes below. The state and quality of the lakes are monitored regularly. The next fishing studies of the lakes are planned for 2024.

Impact on landscape value:

  • Landscape values ​​have been taken into account in the planning of the company’s operations. At the end of the operation, the areas will be landscaped according to the closure plans.

Interaction with stakeholders

Stakeholder cooperation:

  • The company has organized open house days.
  • The company receives visitors, such as the neighbors of the mines and the Vammala Plant, as well as student groups.
  • The company offers thesis, summer work and internships for schoolchildren and students.
  • The company supports local sports and hobby activities.

Research and cooperation projects:

  • Thesis works has been accomplished, which serve both the student and the company.
  • The company is a partner in development and research projects.
Social Responsibility Report
Area of operation
Huittinen, Valkeakoski, Orivesi, Sastamala
Contact information:
Tuomo Etelämäki
Environmental Manager
Dragon Mining Oy
0403007800

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