Franco-Nevada is committed to operating as a good corporate citizen.
Franco-Nevada has royalty and streaming assets and does not directly engage in exploration, development or operations. However, we recognize our business model is dependent on the industry’s corporate responsibility and we provide active support. Franco-Nevada is part of the World Gold Council (“WGC”) board and in 2012 led the establishment of the WGC’s new Conflict-Free Gold Standard to combat the potential misuse of mined gold to fund unlawful armed conflict. WGC members are also committed to the principles of the International Council on Mining & Metals (“ICMM”). These principles seek continual improvement in sustainable development performance. Franco-Nevada undertakes to follow the principles provided by the e3Plus program of the Prospectors and Developers Association of Canada (“PDAC”) whenever it undertakes field due diligence. Franco-Nevada is also the primary sponsor of the PDAC annual awards that recognize industry successes in exploration, development, safety, environmental stewardship and aboriginal cooperation.
The majority of Franco-Nevada’s gold mineral revenues are from properties operated by members of the WGC or ICMM. Before any investment, Franco-Nevada considers legal, regulatory, environmental, health and safety and human rights aspects. In 2012, our Cobre Panama investment involved on-site due diligence of all these aspects. Also in 2012, our Weyburn investment made Franco-Nevada a more significant participant in one of the largest carbon sequestering projects in the world.
Franco-Nevada’s directors and management support philanthropic and charitable efforts using their own personal resources. Our philosophy is charity is a decision best made by shareholders with their own money rather than the Company’s. However, Franco-Nevada will partner with its operators to support projects in the communities associated with our producing assets. In 2012, Franco-Nevada supported the operator of our Sudbury assets by committing $500,000 for the new School of Mines at Laurentian University.