KWG Resources Inc.
Climate Impact & Sustainability Data (2015-09-30, 2016)
Reporting Period: 2015-09-30
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Inability to obtain required financing
- Limited operating history
- Speculative nature of mineral exploration and development activities
- Operating hazards and risks
- Mining risks and insurance
- No mineral reserves
- Environmental and other regulatory requirements
- Competition
- Stage of development
- Fluctuations in commodity prices
- Conflicts of interest
- Reliance on key individuals
- No key man insurance
Mitigation Strategies
- Investing unexpended cash in highly liquid, rated financial instruments
- Seeking to raise additional funds through further equity financings or the sale of non-core assets
- Managing liquidity risk through budgets and forecasts
- Establishing an allowance for impairment of receivables
- Ensuring appropriate recourse is included in corporate transaction agreements
- Investing only in securities of companies listed on public stock exchanges and warrants of those companies
- Providing financial guarantees only to wholly-owned subsidiaries or under business arrangements where the benefit of the guarantee will accrue to the Company
- Actively monitoring changes in the markets
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2016
Environmental Metrics
ESG Focus Areas
- First Nation partnerships
- Infrastructure development (railroad)
- Sustainable chromite production
- Economic development of the Ring of Fire
Social Achievements
- Proposed equal partnership with Webequie and Marten Falls First Nations for Ring of Fire development.
- Study of all-weather road connecting First Nations communities in the Ring of Fire region.
Climate Goals & Targets
Long-term Goals:
- Establish offtake agreements for ferrochrome sales.
- Finance and develop the Black Horse chromite deposit.
- Organize ownership and operation of mine, processing facilities, and railroad.
Medium-term Goals:
- Secure Chinese financing for railroad construction.
- Commercialize gas reduction of chromite to ferrochrome.
Short-term Goals:
- Complete railroad feasibility study and submit to environmental assessment.
Environmental Challenges
- Securing offtake agreements with China.
- Finding a senior partner to finance the railroad.
- Structuring ownership with First Nations, government, and China.
- Financing the development of the chromite mine and reduction facilities.
- Commercializing gas reduction of chromite to ferrochrome.
- Political barriers to project development in Canada and Ontario.
Mitigation Strategies
- Strategic cooperation agreement with China Railway First Survey & Design Institute Group Co., Ltd. for railroad feasibility study.
- Proposed partnerships with First Nations for shared ownership and control.
Supply Chain Management
Climate-Related Risks & Opportunities
Opportunities
- Lower energy consumption and greenhouse gas emissions through gas reduction of chromite.