Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Methane management/ventilation will be critical to successfully mining both the Harbour and Hub seams.
• High cost of drilling in an ocean environment and any drill hole that penetrates the coal seams sterilizes the resources adjacent to the drill hole and significantly impacts potential mine plans.
• High sulfur and iron in the ash (from pyrite and contributes to high reactivity).
• Hub Seam metallurgical and thermal coal quality data is limited and not considered sufficient for coal quality representation to potential customers.
• Likelihood of acid drainage from reject coals is a strong possibility with all plant designs for Donkin coal if traditional stockpiling of coarse materials and dam storage of flotation tails are followed.

Mitigation Strategies

• Room-and-pillar mining method utilizing “place change” CMs is a reasonable and cost effective method of extracting the resource.
• Mine plan can be easily modified to take advantage of longwall mining if the mining conditions are suitable and the coal market will support the increased production.
• Additional data can and should be acquired during mining.
• Alternative reject handling system that requires investigation may be to filter the flotation tailings and to dispose of the solids with coarse rejects (dry co-disposal). Treatment of the dry rejects with limestone or possibly power station fly ash as the reject exits the plant may reduce the likelihood of acid drainage being a problem for future mine rehabilitation.
• Ongoing program of test drilling will be undertaken for exploration, gas drainage and outburst assessment purposes.
• Directional holes ahead of workings at about 500 m depth of cover for pressure relief.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: NI43-101

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Dependence on third-party operators for project development and operation.
• Limited access to data and disclosure for royalty portfolio.
• Commodity price risk (coal prices).
• Potential impacts of climate change on operators' projects (physical and regulatory risks).

Mitigation Strategies

• Monitoring commodity prices.
• Maintaining strong working relationships with operators.
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather variability impacting operations

Transition Risks

• Increased government regulation on GHG emissions

Opportunities

• Not disclosed

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

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Impact
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Cessation of operations at the Donkin Mine due to safety concerns and regulatory issues.
• Uncertainty surrounding the reopening timeline of the Donkin Mine.
• Dependence on third-party operators for project development and operation.

Mitigation Strategies

• Active advocacy for the Donkin Mine's reopening.
• Continued receipt of advanced royalty payments from Vulcan for the Black Point Project.
• Exploration of options for the restart of the Donkin Mine.
• Support for Vulcan in advancing the Black Point Project.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather variability potentially impacting operations.

Transition Risks

• Increased government regulation focused on restricting GHG emissions.

Opportunities

• Not disclosed

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

Environmental Metrics

ESG Focus Areas

• Climate Change
• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Cessation of operations at the Donkin Mine impacting future royalty revenues.
• Geological uncertainty at Donkin Mine resulting in rock falls and operational disruptions.
• Infrastructure risks related to coal transportation (trucking and ocean vessels).
• Legal and regulatory risks related to coal mining, including safety regulations and potential changes in laws.
• Climate change risks, including physical risks (extreme weather) and regulatory risks (GHG emission restrictions).

Mitigation Strategies

• Advocating for the Donkin Mine's reopening.
• Working with Kameron Collieries on remediation programs and regulatory compliance at Donkin Mine.
• Receiving advanced minimum royalty payments from Vulcan Materials for the Black Point Project.
• Supporting Vulcan in advancing the Black Point Project.
• Monitoring commodity prices and exploring options for managing commodity price risk.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather variability impacting operations.

Transition Risks

• Increased government regulation restricting GHG emissions.

Opportunities

• Not disclosed

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