Climate Change Data

Bushveld Minerals Limited

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:194,538 tCO2e (Scope 1 & 2)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:151,703 MWh
Water Consumption:3,869 ML
Waste Generated:2,402 kt
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced environmental incidents by 29% compared to 2021
  • Reduced total waste generated by 36% compared to 2021
  • Recycled or reused 56% of water used

Social Achievements

  • Zero fatalities reported
  • Implemented a business development support program for 10 community-owned businesses
  • Increased procurement spend with local businesses to 12%

Governance Achievements

  • Established an ESG Committee
  • Refreshed ESG strategy in Q4 2022
  • Improved gender ratios

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Reach production target of 5,000 to 5,400 mtVp.a.
  • Achieve steady-state production at Vanchem of 2,300-2,500 mtV
  • Complete the carve-out of Bushveld Energy
Short-term Goals:
  • Achieve production of 4,200-4,500 mtV
  • Attain operational stability at Vanchem
  • Achieve weighted average cash cost of US$26.1/kgV-US$27.0/kgV

Environmental Challenges

  • Operational instability at Vanchem plant due to unreliable power supply and higher-than-ideal silica content in ore
  • Loadshedding in South Africa impacting production
  • Higher-than-expected production costs due to inflation
Mitigation Strategies
  • Agreement with Emalahleni Local Municipality for load-curtailment contract plan at Vanchem
  • Ore supply contract with a third party for low-silica high-grade ore at Vanchem
  • Cost-reduction measures resulting in US$1.5 million savings in 2022

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Prioritising invoice payments for SMEs
  • Increasing procurement spend with local businesses

Climate-Related Risks & Opportunities

Physical Risks
  • Higher rainfall impacting solar PV plant installation
Transition Risks
  • Changes in local content requirements for public procurement
Opportunities
  • Development of energy-efficient products
  • Growth of VRFB market

Reporting Standards

Frameworks Used: IFC Environmental and Social Performance Standards, UN SDGs, QCA Code

Certifications: ISO 9001:2015 (Vanchem), ISO 14001:2015 (Vametco)

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

  • Vanadium electrolyte for VRFBs

Awards & Recognition

  • Power Project of the Year at the South African National Energy Association (SANEA) awards in 2022

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:147,024 tCO2-eq
Renewable Energy Share:10% (Vametco mini-grid)
Total Energy Consumption:122,204 MWh
Water Consumption:3,765 ML
Waste Generated:3,290 Kt

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Recorded 18 environmental incidents, a six percent increase compared with 2022. No environmental directives or fines were issued.
  • Overall water intensity decreased from an average of 3 m³/ton of ore milled in 2022 to an average of 2.4 m³/ton of ore milled in 2023.
  • Total water used decreased by two percent from 3,859 ML in 2022 to 3,765 ML in 2023.
  • The Group managed to recycle or reuse a total of 2,505 million litres of water in 2023, equivalent to a total reuse/recycling efficiency of 67%.

Social Achievements

  • Reported zero fatalities. Two lost time injuries, an improvement from nine lost time injuries in 2022.
  • Completed an improvement project of the Maledu Primary School, upgrading ablution and kitchen facilities (ZAR1.4 million spent).
  • Contributed ZAR2 million for the provision of clean water in Rabokala.
  • Set aside a total budget of ZAR3 million for local road improvements, employing 20 people.

Governance Achievements

  • Overhauled its strategy to ensure the viability of its business model.
  • Completed the refinancing of the Orion convertible loan note.
  • Implemented a restructuring at Head Office resulting in cost savings of US$1.5 million per annum.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050.
Medium-term Goals:
  • Increase the percentage of vanadium that is reused.
  • Increase the amount of water recycled/reused and reduce freshwater consumption.
  • Reduce waste to landfill, actively pursue partnerships in communities and strive for zero waste to landfill.
  • Develop an approach to biodiversity management and strive for biodiversity gains, or no net loss.
Short-term Goals:
  • Achieve operational stability at Vametco and a sustainable monthly production of circa 240 mtV by Q4 2024.
  • Reduce GHG emissions (targets to be communicated)
  • Reduce water intensity to 2.2 m3/t of crushed ore product at Vametco

Environmental Challenges

  • Lower vanadium prices and higher operating costs.
  • Long-term debt position with Orion.
  • Large sums owed to creditors.
  • Atmospheric emission license compliance issues.
  • Slimes dam collapse risk.
  • Community or social unrest.
  • Poor governance.
  • Legal disputes.
  • Regulatory compliance risk.
  • SPR transaction conditions fulfilment delays.
  • Production budget variance.
  • Shortage of ore supply.
  • Loss of Barren Dam freeboard.
  • Prolonged interruption of power supply.
  • Water shortage at Vanchem.
  • Attraction and retention of key skills.
  • Labour disruption.
  • DMRE stoppage following non-compliance to the Mine Health and Safety Act.
  • Cyber-security risks.
  • Manual systems leading to errors in reporting.
  • Port congestion.
  • Uneconomic supplier terms.
Mitigation Strategies
  • Refocused on core function of mining and vanadium processing.
  • Implemented austerity measures.
  • Divesting the entire energy business.
  • Bolstered cash balance and improved working capital.
  • Comprehensive investment by Southern Point Resources.
  • Sale of 50% of Vanchem and 64% interest in Mokopane.
  • Equity raising.
  • Initiatives to improve Vanchem’s performance (changing reagent mix, knowledge sharing, 24/7 shift managers).
  • Disposal of non-core assets.
  • Office restructuring.
  • Refinancing of Orion convertible loan note.
  • Engagement with stakeholders to address identified issues.
  • Regular engagement with regulatory authorities.
  • Buttressing and constant monitoring of slimes dams.
  • Regular engagement with communities.
  • Adherence to the QCA Code.
  • Effective policy and procedures for legal and compliance.
  • Budgeting for legal fees.
  • Submitting comprehensive filings with competition authorities.
  • Incentives for Business Unit Managers.
  • Diversifying suppliers.
  • Industrial sprays, dam wall extension, reducing wash water.
  • Maintaining buffer material in stock.
  • Collaborations with independent laboratories.
  • Periodic structural assessments.
  • Increased planned asset management.
  • Maintaining relationship with municipality and Eskom.
  • Using and recirculating tailing water.
  • Crafting a talent framework.
  • Competitive remuneration practices.
  • Sensitising and engaging labour.
  • Stringent governance process for overtime.
  • Addressing identified deviations.
  • Third-party monitoring of IT systems.
  • Back-up plans.
  • Simplifying reporting processes.
  • Utilising other ports.
  • Renegotiating pricing with suppliers.

Supply Chain Management

Responsible Procurement
  • Enterprise and Supplier Development programmes.
  • Bushveld Minerals Procurement Portal.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Water shortage
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: IFC Environmental and Social Performance Standards, UN SDGs, TCFD (tentatively)

Certifications: ISO 9001:2015 (Vanchem), ISO 14001:2015 (Vametco)