Climate Change Data

Sigma Lithium Corporation

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Renewable Energy Share:100% green hydro power
Water Consumption:35 m3/hr (Phase 1 make-up raw water requirement)

ESG Focus Areas

  • Sustainable development
  • Minimizing environmental impact
  • Improving lives of those in and around the region of operation
  • Net zero emissions by 2024

Environmental Achievements

  • Successfully initiated production in April 2023 with zero hazardous chemicals
  • 100% green hydro power
  • Tailings 100% dry stacked
  • Zero lost time due to injury since construction commenced
  • Minimal water impact
  • Substantial Covid-19 suppression

Social Achievements

  • More than 1,000 employees by Q4 2022 (approximately 40% from Jequitinhonha Valley community)
  • Social programs promoting sustainable development and inclusion
  • Board Diversity: 50% female / LGBTQ representation

Climate Goals & Targets

Long-term Goals:
  • Net zero carbon emissions by 2024
Medium-term Goals:
  • Potential Phase 2 & 3 production expansion
  • Further exploration to increase mineral resources and extend mine life
Short-term Goals:
  • Complete Phase 1 production ramp-up to nameplate capacity in Q3 2023
  • Complete feasibility study and detailed engineering for Phase 2 & 3 expansion

Environmental Challenges

  • Risks related to resource development (lithium market prices, EV market development, competition)
  • Political, economic, social, regulatory, and geographic risks of doing business in Brazil
  • Environmental compliance risks
  • Climate change impacts and regulations
  • Lack of prior mining operation experience
  • Potential cost overruns and delays
  • Securing title and property rights
  • Community relations
  • Counterparty risks
  • Liquidity risk
  • Material weaknesses in internal controls
Mitigation Strategies
  • ESG-centric management strategy
  • Stringent corporate governance, internal controls, and disclosure controls
  • Experienced management team with expertise in emerging markets
  • Proactive community engagement
  • Risk mitigation strategies for financial, operational, and environmental risks
  • Steps to remediate material weaknesses in internal controls

Supply Chain Management

Responsible Procurement
  • Local procurement of goods and services

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Inclement weather
Transition Risks
  • Changes in lithium market demand
  • Stringent environmental regulations
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: NI 43-101, CIM Definition Standards

Certifications: ISO 14001 (in progress), ISO 17025 (laboratories used)

Sustainable Products & Innovation

  • Green Lithium