Climate Change Data

Southern Alliance Mining Ltd.

Climate Impact & Sustainability Data (2021, 2023, 2024)

Reporting Period: 2021

Environmental Metrics

Total Energy Consumption:Electricity consumption: 9,723,000 kWh (March 2021 to July 2021); Diesel and petrol consumption: 12,563,000 litres (March 2021 to July 2021)

ESG Focus Areas

  • Economic Performance
  • Environmental Compliance
  • Energy Procurement Practices
  • Diversity and Equal Opportunity
  • Occupational Health and Safety
  • Corporate Governance
  • Training and Education
  • Risk Management
  • Local Communities
  • Business Ethics and Compliance
  • Anti-Corruption

Environmental Achievements

  • No reported incidents of environmental non-compliance with relevant regulations and no penalty imposed from local authorities during FY2021.

Social Achievements

  • No reported incidents of complaints on discrimination.
  • Zero major work injury and zero fatal accidents at the workplace.
  • Contributed a total of RM317,054 in sponsorships and assistance for various community projects and assistance schemes, including Food Assistance Programs across Malaysia.

Governance Achievements

  • Compliance with the Code of Corporate Governance 2018.
  • No reported incidents of corruption.

Climate Goals & Targets

Long-term Goals:
  • Continue to comply with the Code of Corporate Governance 2018 and meet all requirements that are expected of us by our stakeholders.
  • Conduct annual review of risk management and internal control systems to ensure that all relevant risks are identified, communicated and managed on a timely basis.
  • Maintain zero incidents of corruption or legal compliance issue.
Medium-term Goals:
  • Provide at least an average of 4 training hours per employee.
  • Maintain zero complaints on discrimination.
  • Maintain zero major injury and fatal accidents.
Short-term Goals:
  • Maintain local procurement of at least 90% of total purchases.
  • Maintain zero reported incidents of corruption, bribery case and whistleblowing.
  • Achieve the production to energy consumption ratio of not less than 0.02MT concentrates per 1kW of electricity usage and the material extraction to diesel consumption ratio of not less than 1.00MT of materials (both ores and waste) extracted per litre of diesel usage.
  • Maintain zero incidents of environmental non-compliance.

Environmental Challenges

  • Pandemic-related disruptions such as the Movement Control Order (“MCO”) imposed by the Malaysian Government.
  • Lower in average training hours was mainly attributed to lesser training courses conducted pursuant to crowd management measures implemented by the Group in FY2021 to counter the widespread of Covid-19.
Mitigation Strategies
  • Resilience, being the core of our business model, pushed us to further expand our exploration activities to capitalise on the industry super cycle.
  • We will continue to deploy our resources and offer training courses to continuously enhance safety and ensure competency of all our employees.

Supply Chain Management

Responsible Procurement
  • Priority is given to local suppliers and in the community.
  • Site inspections, contract negotiations and anti-bribery and anti-corruption policy.
  • Efficient payment process and timely accounts payable recording.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards – Core option

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:29,297 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:15,432 tCO2e/year
Scope 2 Emissions:13,865 tCO2e/year
Total Energy Consumption:21,699,000 kWh/year (Electricity)
Waste Generated:6,213,261 tons/year (Waste excavated)

ESG Focus Areas

  • Economic Performance
  • Procurement Practices
  • Energy and Emissions
  • Environmental Compliance
  • Climate-related Risks and Opportunities
  • Corporate Governance
  • Risk Management
  • Business Ethics and Compliance
  • Anti-Corruption
  • Diversity and Equal Opportunity
  • Occupational Health and Safety
  • Training and Education
  • Local Communities

Environmental Achievements

  • Reduced direct Scope 1 and indirect Scope 2 emissions by 3.7% compared to FY2022.
  • Exceeded target of at least 90% local purchases (93.9% achieved).

Social Achievements

  • Recruited 55 employees, ending the year with 213 employees.
  • Employee turnover reduced to 19% in FY2023 (from 35% in FY2022).
  • Contributed RM90,750 to various community projects.

Governance Achievements

  • Established a board-level sustainability committee.
  • All Board Members attended sustainability training.
  • Full compliance with Singapore’s Code of Corporate Governance.

Climate Goals & Targets

Short-term Goals:
  • Improve financial performance for FY2024.
  • Maintain local procurement of at least 90% of total purchases.
  • Achieve production to energy consumption ratio of not less than 0.02MT concentrates per 1kWh of electricity usage and material extraction to diesel consumption ratio of not less than 1.00MT of materials (both ores and waste) extracted per litre of diesel usage.
  • Continue efforts to track and mitigate direct and indirect emissions from our operations.
  • Maintain zero incidents of environmental non-compliance in FY2024.
  • Maintain zero incidents or complaints on employee discrimination.
  • Achieve zero major injury and fatal accidents.
  • Provide at least an average of 7 training hours per employee.
  • Continue contributions to the community.
  • Continue to comply with Singapore’s Code of Corporate Governance and meet all governance requirements.

Environmental Challenges

  • Decreased production of iron ore concentrate due to intense overburden removal and transition to underground mining.
  • High inflationary environment impacting operating costs.
  • Fluctuations in iron ore prices due to economic uncertainties and slower-than-expected recovery in China.
Mitigation Strategies
  • Diversification strategy into rare earth mining (MOUs signed for acquisitions).
  • Exploration activities at Tenggaroh gold mine showing promising results.
  • Transition to underground mining for more sustainable and economical operations.
  • Implementation of additional safety measures for underground mining.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct covering ethical, social, and environmental responsibilities.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (floods, wildfires)
  • Heat-related safety risks
  • Water stress
Transition Risks
  • Market risks
  • Policy and regulation risks
  • Resource and technology risks
  • Reputational risks
  • Financial risks
Opportunities
  • Resource efficiency
  • Renewable energy adoption
  • Diversification
  • Circular economy
  • Green bonds and financing

Reporting Standards

Frameworks Used: GRI Universal Standards (2021)

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:25,565 tCO2e/year
Scope 1 Emissions:6,764 tCO2e/year
Scope 2 Emissions:18,802 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:24,804 MWh/year
Water Consumption:Not disclosed
Waste Generated:139,400 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Corporate Governance
  • Risk Management
  • Business Ethics and Compliance
  • Anti-Corruption
  • Diversity and Equal Opportunity
  • Occupational Health and Safety
  • Training and Education
  • Local Communities
  • Economic Performance
  • Procurement Practices
  • Energy and Emissions
  • Environmental Compliance
  • Climate-related Risks and Opportunities
  • Waste and Water Management
  • Whistleblowing Policy

Environmental Achievements

  • Reduced total Scope 1 and Scope 2 CO2 emissions by 19.8% compared to FY2023. Scope 1 CO2 emissions from diesel usage in metric tonnes = 6,764 (-56.2% compared to FY2023). Scope 2 CO2 emissions from purchase of electricity from the National Grid in metric tonnes = 18,802 (+14.3% compared to FY2023).
  • Maintained zero incidents of environmental non-compliance.

Social Achievements

  • Maintained zero incidents or complaints on employee discrimination.
  • Achieved zero major injury and fatal accidents.
  • Provided an average of 18.4 training hours per employee (+36.6% compared to FY2023).
  • Contributed RM54,500 towards various community projects.

Governance Achievements

  • Complied with the principles and provisions as set out in the Code of Corporate Governance 2018 and Practice Guidance where applicable.
  • Maintained zero incidents of non-compliance, corruption, bribery or other forms of dishonest practices.
  • Updated the Enterprise Risk Management framework.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Improve financial performance for FY2025.
  • Maintain local procurement of at least 90% of total purchases.
  • Achieve production to electricity consumption ratio of not less than 0.02MT concentrates per 1kWh of electricity usage and material extraction to diesel consumption ratio of not less than 0.38MT of materials (both ores and waste) extracted per litre of diesel usage.
  • Continue efforts to track and mitigate direct and indirect emissions from our operations.
  • Maintain zero incidents of environmental non-compliance.
  • Maintain zero incidents or complaints on employee discrimination.
  • Achieve zero major injury and fatal accidents.
  • Provide at least an average of 7 training hours per employee.
  • Continue contributions to the community.
  • Comply with Singapore’s Code of Corporate Governance.
  • Conduct annual review of risk management and internal control systems.
  • Comply with SGX’s latest requirements for climate-related disclosures.
  • Maintain zero incidents of non-compliance, corruption, bribery or other forms of dishonest practices.
  • Ensure that any whistleblowing report is promptly investigated.

Environmental Challenges

  • Fluctuations in global iron ore prices due to economic slowdown in China.
  • Increased mining costs associated with subcontractor wages, fuel, maintenance, and labor.
  • Initial challenges of transitioning to full underground mining resulting in temporary production decrease.
  • Rising compliance and insurance costs related to climate change.
Mitigation Strategies
  • Strategic shift to underground mining for greater operational efficiency and cost reductions.
  • Disciplined approach to operations and cost management, optimizing fuel consumption and streamlining maintenance.
  • Investments in infrastructure, such as tunnel construction, to enhance operational efficiency.
  • Diversification into gold and REEs to mitigate market volatility.
  • Implementing advanced safety measures and rigorous engineering standards for underground mining.
  • Contingency plans and insurance arrangements to address extreme weather events.
  • Investing in climate-resilient infrastructure and equipment.
  • Adopting renewable energy sources to improve operational resilience.
  • Improving sustainability practices to align with investor and lender expectations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier Code of Conduct covering anti-bribery and corruption, conflicts of interest, ethical business practices, regulatory compliance, human rights, health and safety, environment, and proper record keeping.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (heavy rain, floods, wildfires)
  • Gradual changes in weather patterns (higher temperatures, water stress)
Transition Risks
  • Policy and regulation risks
  • Resource and technology risks
  • Market risks
  • Financial risks
  • Reputational risks
Opportunities
  • Resource efficiency
  • Renewable energy adoption
  • Diversification
  • Circular economy
  • Green bonds and financing

Reporting Standards

Frameworks Used: GRI Universal Standards (2021)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed