Climate Change Data

Rainbow Rare Earths Limited

Climate Impact & Sustainability Data (2023, 2024)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:6.01 tCO2e (Scope 1 & 2 office emissions)
Scope 1 Emissions:0.15 tCO2e
Scope 2 Emissions:5.85 tCO2e

ESG Focus Areas

  • Responsible supply of critical rare earths
  • Responsible business
  • Creating value
  • Focus on secondary sources
  • Environmental integration

Environmental Achievements

  • Office-based Scope 1 & 2 emissions calculated
  • First disclosures in line with TCFD recommendations
  • Phalaborwa ESIA work progressing
  • MoU signed with Mosaic to jointly develop a process flowsheet to extract rare earth elements from secondary source in Brazil
  • Kicking off LCA for Phalaborwa

Social Achievements

  • Supplier Code of Conduct implemented
  • Phalaborwa ESIA work progressing
  • All existing Group policies reviewed and updated
  • Sustainability Policy implemented
  • Supplier Code of Conduct implemented

Governance Achievements

  • All existing Group policies reviewed and updated
  • Sustainability Policy implemented
  • Supplier Code of Conduct implemented

Climate Goals & Targets

Short-term Goals:
  • Continued integration of sustainability in overall strategic development
  • Conduct a comprehensive materiality assessment
  • Development of sustainability reporting
  • Implement sustainability targets

Environmental Challenges

  • Developing a responsible supply chain
  • Minimizing adverse impacts of operations
  • Managing climate-related risks and opportunities
Mitigation Strategies
  • Implementing internal systems to measure and monitor key environmental and social metrics
  • Reviewing and updating policies
  • Calculating office-based emissions
  • Publication of first disclosures under TCFD framework
  • Conducting a comprehensive materiality assessment
  • Developing sustainability reporting
  • Implementing sustainability targets
  • Developing a Supplier Code of Conduct
  • Undertaking an ESIA at Phalaborwa
  • Conducting a LCA for Phalaborwa

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities
  • Demand for rare earths driven by global decarbonisation efforts

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

  • 8
  • 9
  • 12

Rainbow believes these goals align with its business model and operations

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:10.40 tCO2e (Scope 1 & 2, office-related)
Scope 1 Emissions:3.47 tCO2e
Scope 2 Emissions:6.93 tCO2e

ESG Focus Areas

  • Environmental remediation
  • Responsible supply chain
  • Community development
  • Climate change mitigation
  • Governance

Environmental Achievements

  • Neutralising acid water at Phalaborwa for use in closed-circuit plant process
  • Producing a cleaner gypsum by-product for sale to industrial and agricultural sectors
  • Planning for a low-carbon energy source for Phalaborwa
  • Increased total resource tonnage for Phalaborwa by 15% to 35 Mt

Social Achievements

  • Phalaborwa project will create numerous employment opportunities, prioritizing local workforce
  • Working closely with local contractors and suppliers
  • Stakeholder Engagement Plan and Grievance Mechanism prepared
  • No concerns raised via the Group whistleblowing procedure

Governance Achievements

  • Investment commitments from DFC/TechMet and Ecora followed extensive due diligence into Rainbow’s ESG approach
  • Diversity briefing provided to the Nomination Committee and wider Board
  • Ongoing optimisation of flowsheet to enable a long-term sustainable business
  • Phalaborwa ESIA work progressing

Climate Goals & Targets

Long-term Goals:
  • Develop a scalable and sustainable business by leveraging technology to recover REE from phosphogypsum
Medium-term Goals:
  • Commence operations at Phalaborwa by 2027
Short-term Goals:
  • Complete Phalaborwa Definitive Feasibility Study (DFS) in 2025

Environmental Challenges

  • Securing additional funding for Phalaborwa and other projects
  • Optimizing the processing flowsheet for Phalaborwa to deliver separated rare earth oxides
  • Obtaining necessary permits for Phalaborwa
  • Current rare earth prices below the base case for the Phalaborwa PEA
  • Ongoing suspension of operations at Gakara project in Burundi
  • Securing lease for land at Phalaborwa
  • Managing environmental liabilities associated with Phalaborwa gypsum stacks
Mitigation Strategies
  • Strong economic returns of Phalaborwa expected to ensure funding
  • Technical team’s experience in designing and commissioning commercial plants
  • Working with specialist consultants for permitting process
  • Phalaborwa’s low-cost operation expected to be resilient against price volatility
  • Impairment of Gakara assets to nil
  • Bosveld’s obligation to transfer land rights
  • Engaging WSP for baseline environmental assessment and operational plan

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks
  • Rare earth price volatility
Opportunities
  • Demand for REE driven by global decarbonisation efforts

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: BDO LLP

UN Sustainable Development Goals

  • SDG 8
  • SDG 9
  • SDG 12

Producing critical rare earths for green energy transition, building resilient infrastructure, ensuring sustainable consumption and production patterns