Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Governance
• Social Licence
• Decarbonisation
• Resource Efficiency

Environmental Achievements

• Initiatives underway to measure and reduce environmental impact
• Heap leach SXEW operations have a lower carbon footprint than conventional smelted copper
• SXEW copper cathode is demonstrably lower energy to produce than sulphide derived copper
• Implementing a “dripper irrigation” system that reduces evaporation and saves up to 30% of makeup water requirements
• Over $37.785 million of bonds in place to fund end of mine life environmental obligations

Social Achievements

• Active participant in the Mt Isa district, operating on land owned by traditional owners and freehold property owners
• Work closely with landowners and integrate environmental obligations as an integral part of daily operations
• Workforce of over 100 direct employees and contractors
• Strive to ‘do more with less’ in all aspects of operations

Governance Achievements

• Adopted the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations – 4th Edition (ASX Recommendations)
• Continuously monitors and reviews existing and required policies, charters and procedures with a view to ensuring its compliance with the ASX Recommendations

Climate Goals & Targets

Environmental Challenges

• COVID-19 provided a period of challenging health and well-being management, border restrictions, cross-border travel requirements, testing and isolation
• Significant rains during January and February
• Remote location necessitates diesel power generation
• Managing the volatility of copper, AUD/USD and inflationary environment
• Operational Risk (failure to achieve predicted grade in mining, processing, technical difficulties, mechanical failure, adverse weather, industrial disputes, unforeseen delays, unexpected shortages or increase in costs)
• Global pandemic risk
• Development risk (delays to project development, exploration milestones)
• Exploration and evaluation risk
• Environmental risks (compliance, potential liability for damages, clean-up costs, penalties)
• Changes in commodity price
• Exchange rate risk

Mitigation Strategies

• Agility, preparedness and dedication of workforce minimised disruptions
• Successful creek diversion
• Research project to de-carbonise electricity generation using solar electricity
• Hedge strategy in place for at least 30% of forecast production in any quarter to offset falls in the copper price
• Over $37.785 million of bonds in place to fund end of mine life environmental obligations
• Progressive Rehabilitation and Closure (PRC) system for mines
• Continuous monitoring of operational costs
• Reviewing options to improve by further lowering energy and consumables footprint
• Assessing the potential of solar power generation and other initiatives to reduce carbon footprint

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Potential of solar power generation to reduce carbon footprint and produce 'Solar Copper'

Sustainable Products & Innovation

• Solar Copper

Environmental Metrics

ESG Focus Areas

• Health, Safety and Wellbeing
• Water and Resources
• Waste and Pollution
• Employee Attraction and Retention
• Respect and Equality
• Climate Change & Energy
• Corporate Governance
• Ethical Behaviour & Human Rights

Environmental Achievements

• Implementing a "dripper irrigation" system that reduces evaporation and saves up to 30% of makeup water requirements.
• Recycling process water back to the heap leach.

Social Achievements

• Sponsored the Yelvertoft Campdraft and Rodeo event, donating $4,000.
• Donated $1,000 to the IPCA Isolated Children’s Parents’ Association Queensland Inc. Mt Isa Branch of School of the Air: Sports bush for kids’ initiative.
• Supported the AusIMM NQ Branch Critical Minerals Forum.

Governance Achievements

• Adopted several new policies covering Climate Change, Cultural Heritage, Human Rights, Modern Slavery, and Sustainable Procurement.
• Held its first ESG Committee meeting in February 2023 and planned an ESG Strategy Workshop in March 2023.

Climate Goals & Targets

Environmental Challenges

• Abnormally inflated diesel prices due to the Russian military offense in Ukraine.
• COVID-19 related impacts on personnel availability.
• Volatility of copper, AUD/USD and inflationary environment.

Mitigation Strategies

• Investigating solar power generation opportunities to lower operational carbon emissions.
• Improving water efficiency.
• Successfully raising modest amounts of debt and equity to meet needs.

Supply Chain Management

Responsible Procurement

• Sustainable Procurement policy

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

UN Sustainable Development Goals

• 3.6
• 3.8
• 3.9
• 6.3
• 6.4
• 8.5
• 8.8
• 11.6
• 12.4
• 13.2
• 15.5
• 16.5
• 16.6

Table demonstrating Austral’s current ESG maturity and organisational vision.

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Risk Management
• Community Engagement

Environmental Achievements

• No serious environmental incidents during the December quarter.

Social Achievements

• No injuries occurred during multi-week firefighting activities related to October bushfires. Successful adherence to safety and health management systems resulting in consistent LTIFR of 2.2 (no lost time injuries).

Governance Achievements

• Collaborative ESG Sub-Committee helping to maintain positive relationships with the community.

Climate Goals & Targets

Environmental Challenges

• October wild bush fire event impacting Mt Kelly processing facility.
• Haulage issues impacting ore processing at Mt Kelly.
• Severe weather events, mechanical issues, and wet ore challenges impacting ore processing and leaching operations.
• Operational delays due to bush wildfires and early onset of the Wet Season impacting exploration drilling.

Mitigation Strategies

• Effective teamwork and readiness successfully mitigated the bushfire threat. No injuries reported.
• Repairing essential services and providing temporary accommodations after bushfires.
• Expanding risk management approach to incorporate sustainability and climate-related risks in 2024 ESG plan. Scheduling a site-based sustainability and climate-focused risk workshop.
• Continued efforts to improve haulage and ore processing efficiency.
• Continued exploration drilling despite delays.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Bushfires
• Heavy Rainfall