Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Management
• Resource Security

Climate Goals & Targets

Environmental Challenges

• Looming supply-demand gap for copper due to energy transition.
• Infrastructure constraints in copper-producing countries.
• Permitting and litigation delays in mine development.
• Local stakeholder concerns and potential for conflict.
• Environmental standards and regulations.
• Taxes and regulation changes.
• Politicization of contracts and permits.
• Labor relations and strikes.
• Geopolitical risks and supply chain vulnerabilities.
• Climate change impacts on mining operations.

Mitigation Strategies

• Increased recycling rates.
• Improved mine capacity utilization.
• Technological innovation in mining and recycling.
• Policy reforms to streamline permitting and reduce uncertainty.
• Enhanced stakeholder engagement and collaboration.
• Investment in infrastructure development.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Droughts
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts
• Technological disruptions

Opportunities

• Development of energy-efficient products and processes
• Increased recycling and resource recovery

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 13 (Climate action)

Copper is essential for renewable energy technologies and infrastructure development, contributing to climate action.

Environmental Metrics

ESG Focus Areas

• Community Relations
• Environmental Protection
• Health and Safety

Environmental Achievements

• Maintains exploration permits and approvals in good standing.
• Plans for baseline studies and initiatives in key environmental subject areas.

Social Achievements

• Maintains an environmental and social plan for the Santo Tomas Project, focused on community outreach, education, employment, indigenous engagement, and community mapping.
• Strives to maintain support from the community, local leaders, and state regulators.

Governance Achievements

• Initiated amparo legal challenges to mining reform legislation.

Climate Goals & Targets

Environmental Challenges

• Potential impacts from COVID-19 on third-party obligations, employee health, travel limitations, and availability of experts.
• History of losses and the need to generate sufficient revenue to be profitable.
• Competition in the mining industry with better-capitalized companies.
• Difficulty in raising necessary capital for exploration and development.
• Potential for disputes related to contractual interests in properties.
• Dependence on relationships with communities and potential for adverse publicity.
• Need to acquire surface rights to mineral concessions.
• Risks associated with violence and criminal activities in Mexico.
• Extensive government regulations and potential for non-compliance.
• Stringent environmental, health, and safety regulations.
• Potential for more onerous climate change regulations.
• Challenges in obtaining and renewing government permits.
• Changes to Mexican Mining Law.
• Foreign currency exchange fluctuations.
• Risk of losing key personnel.
• Potential conflicts of interest with directors and officers.
• Security breaches of information systems.

Mitigation Strategies

• Ongoing risk management efforts.
• Monitoring of short-term expenditures and raising additional funds through share issuance.
• Maintaining competent personnel and consultants.
• Prioritizing cybersecurity and enhancing protective measures.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: NI 43-101, CIM Standards

Environmental Metrics

ESG Focus Areas

• Community engagement
• Environmental impact
• Energy efficiency
• Emissions reduction

Environmental Achievements

• Completed environmental baseline study/EIA/water strategy/tailings storage/permitting studies; metallurgical studies
• Goal of lowering CO2 and other emissions per unit of copper produced; exploring natural gas and LNG for power generation to reduce emissions

Social Achievements

• Community engagement and ESG initiatives; strong local support
• Thousands of jobs and LOM payroll and mandated profit sharing in excess of $500 million (at Base Case metal prices)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Uncertainty in the Mexican mining sector regarding permitting and environmental regulations
• Energy costs make up 35.1% of Process Costs at Santo Tomas

Mitigation Strategies

• Lowering processing plant energy costs through natural gas and LNG; dual fuel and electrified haul trucks
• Monitoring and adapting to evolving Mexican mining regulations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Lowering energy costs and carbon intensity through natural gas and LNG

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed