Erdene Resource Development Corporation

Climate Impact & Sustainability Data (2020, 2022)

Total Energy Consumption:6 MW (estimated)

Erdene has entered into formal LCAs with Bayankhongor, Shinejinst, and Bayan-Undur governments since 2014 (6 calendar years cumulatively), although the Company’s community relations date back earlier to 2006. The objectives of these LCAs are to contribute to the development of the local area and the livelihoods of citizens, consistent with local development priorities.

Potential impacts may include the following: pasture impacts from nuisance issues to pasture users, specifically noise, dust, and vibration; the potential for an increase in competition for and conflict about grazing due to loss of and / or restricted access to seasonal pasture; and minor economic displacement due to potential loss and/or disrupted access to seasonal pasture.
Unfulfilled expectations for employment could potentially jeopardize the Project’s social licence to operate.

A Land Use and Livelihoods Management Framework will be developed and implemented, and it will include the following key provisions. A Herder Livelihood Support Programme (HLSP) will be developed to address potential impacts on land use through the Local Cooperation Management Plan.
Establish eligibility for ‘local hiring preference’ through a specific timeframe of residency in the Project AoI and / or proof of diaspora status. Conduct targeted recruitment of talented diaspora (of Shinejinst and Bayan-Undur soums and Bayankhongor aimag centre) to attract skilled workers back to the Project area.

Frameworks Used: EBRD ESP (2014), Performance Requirements (PRs)

Renewable Energy Share:Over 20% (planned for mine power)

Initiated a participatory environmental monitoring program focusing on water resources.
Received full regulatory approval for the detailed design of an integrated waste facility (IWF), the first of its nature and scale in Mongolia.
Progressed technical studies and assessment of the Project’s energy requirements, with over 20% of the mine’s power expected from an on-site solar farm.
Completed the first growing season of expanded planting trials, seeding 10,000 trees as part of a one million tree commitment.
Provided support to rehabilitate approximately 14 ha of land damaged by illegal gold mining.

Invested US$1M (3.4 billion MNT) and committed a further US$1.2M (4.1 billion MNT) under the renewed Local Cooperation Agreement (LCA) for local development projects.
Directed 32% of LCA funding to public health investments (testing equipment, PPE, treatments).
Contributed approximately US$450,000 for local infrastructure development and livelihoods support.
Supported youth development and public education, including remote learning equipment for schools.
Employed and trained over 100 local residents in pre-construction activities, with nearly 30 employed on-site in 2022.

All personnel, including directors and senior management, receive annual training and commit to the Code of Ethics and Business Conduct.
Maintains a Corporate Governance Committee comprised of three independent Directors.
Signed onto the Integrity Declaration with the Canadian Government.
Cross-listed on the Mongolian Stock Exchange (MSE), enhancing access to shares among Mongolian investors and increasing transparency.

COVID-19 pandemic impacting community development initiatives.
Managing environmental impacts of mining operations (water, waste, land disturbance).
Ensuring workplace safety during pre-construction and future mine development.

Directed LCA funding towards public health during the pandemic.
Implemented environmental management measures detailed in the DEIA and ESIA, with continuous review and evolution.
Introduced an expanded hazard identification program and preventive measures to ensure workplace safety.
Developed an integrated waste facility to reduce environmental risks.
Planned hybrid power generation using renewable sources (solar).