Noranda Income Fund
Climate Impact & Sustainability Data (2021)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Published first ESG report in June 2021, aligned with SASB and GRI standards.
Social Achievements
- Maintains strict COVID-19 measures to protect employee and contractor health and safety.
- Contingency plans in place to minimize COVID-19 impact on operations.
Governance Achievements
- Independent Committee responsible for negotiating and supervising contractual terms with Glencore and CEZinc.
- Board of Trustees comprised of a majority of independent Trustees.
- ESG program aligned with Glencore's global ESG standards, policies, and requirements.
Climate Goals & Targets
Short-term Goals:
- Completion of $32 million expansion project (increase production by 20,000 tonnes/year, decrease unit operating costs).
Environmental Challenges
- Negative market conditions for zinc smelters globally.
- 10-month labor disruption in 2018.
- Declining global concentrate qualities.
- Impact of the COVID-19 pandemic (60%+ decline in TCs from pre-pandemic levels).
- Shift in concentrate supply sources (from local to offshore, requiring more working capital and increasing inventory variability).
Mitigation Strategies
- Negotiated favorable amendments to the SPA in November 2020 (term extension, increased notice period, transitional assistance).
- Strategic expansion projects to increase capacity, reduce unit operating costs, and increase free cash flow.
- Active management of accounts receivables and payables.
- Asset-based Revolving Credit Facility (ABL).
- Senior secured metal liability with BaseCore1 for advance payments.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: SASB, GRI
Third-party Assurance: PricewaterhouseCoopers