Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Impact
• Social Impact
• Community Engagement
• Resettlement
• Human Rights

Environmental Achievements

• Technical pre-feasibility study recommended Advance Ultra Super Critical thermal plant technology using air cooling, significantly reducing water requirement and environmental impact.

Social Achievements

• Continued engagement with local communities; focus on enhancing ‘social licence’; estimated 17,000 jobs expected to be created; plans to provide new housing, religious centers, schools, health centers, electricity, water supply, and improved sanitation; comprehensive Resettlement Plan for approximately 40,000 people.

Governance Achievements

• The Directors consider the corporate governance procedures are appropriate relative to the size and stage of development of the Group. Compliance with UN Global Compact Principles, International Finance Corporation Performance Standards, Equator Principles, and Asian Development Bank Safeguard Policies.

Climate Goals & Targets

Environmental Challenges

• Delay in receiving government approval for the Phulbari Coal and Power Project.
• Risk that the strategic partnership with CGGC is cancelled.
• Risk of not being able to raise necessary funds.
• Market variations in coal prices.
• Risk of mining lease and exploration licenses being revoked.

Mitigation Strategies

• Strategy to align the Project with the Government's objectives.
• Negotiations with CGGC for a joint development framework agreement.
• Advanced stages of negotiating further funding.
• Legal opinion confirming enforceability of the Contract with the Government.
• Commitment to highest international social and environmental standards.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact Principles, International Finance Corporation (World Bank) Performance Standards, Equator Principles, Asian Development Bank (ADB) Safeguard Policies

Environmental Metrics

ESG Focus Areas

• Community Relations
• Environmental Impact Assessment
• Human Rights
• Compliance

Environmental Achievements

• Continued support for the Resettlement Action Plan, keeping it current despite the pandemic.
• Plans to ensure year-round irrigation access for farms, increasing agricultural output and contributing to food security.
• Only one-third of the mine footprint will be used at any one time, allowing farming to continue before and after rehabilitation.

Social Achievements

• Active engagement with local communities through one-to-one meetings and group discussions to achieve social acceptance.
• Employment of local community liaison assistants for two-way communication.
• Plans to provide new housing, religious centers, schools, health centers, electricity, water supply, and improved sanitation for local communities.
• Expected creation of around 17,000 direct and indirect jobs, with tens of thousands more potentially created by power plants and downstream industrial development.

Governance Achievements

• Adherence to the Quoted Companies Alliance Corporate Governance Code 2018.
• Commitment to complying with the Equator Principles, IFC Performance Standards, UN Global Compact, and relevant Bangladeshi laws.
• Establishment of Audit, Remuneration, and Nominations Committees.

Climate Goals & Targets

Environmental Challenges

• Delays in obtaining Bangladesh Government approval for the Phulbari Coal and Power Project due to the COVID-19 pandemic and related travel restrictions.
• Uncertainty regarding the recoverability of intangible mining assets until government approval is received.
• Risk that strategic partnerships with Chinese state-owned enterprises may not proceed.
• Risk of not being able to raise necessary funds to advance the project.
• Risk that the project's economic viability may be undermined by adverse movements in coal prices.
• Risk of mining lease and exploration license revocation.
• Climate change risk and potential pressure on government and financing organizations to reduce exposure to fossil fuel-related power generation.

Mitigation Strategies

• Leveraging joint-venture arrangements with PowerChina and NFC to obtain government approvals and financing.
• Employing consultants to provide guidance and lobbying support.
• Securing continuing support from Polo Resources Ltd through a loan agreement extension.
• Establishing the project as an integrated coal mine and power development with equity positions in mine and power plants.
• Ensuring compliance with all terms of the contract with the Bangladesh government.
• Monitoring climate change risks and aligning the project with government objectives to meet energy demand.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Increased awareness and action against climate change may affect future Bangladeshi government policy towards coal-fired generation and limit funding appetite for the project.

Reporting Standards

Frameworks Used: UN Global Compact

Environmental Metrics

ESG Focus Areas

• Community relations
• Greenhouse gas emissions reduction
• Environmental remediation
• Job creation
• Sustainable development

Environmental Achievements

• Developing a large-scale Solar Power Park (up to 2,330MW) to supply power to the mine and the National Grid; aiming for a Net Carbon Zero mining operation through carbon offsetting (including forestation) resulting in a reduction of Greenhouse Gas Emissions (CO2) by over 30% compared to imported coal.
• Signed an MoU with Sion Corporation of Japan, Versatech Energy Innovation Limited and AC Biode Co. Ltd for managing fly-ash waste through the production of CircuLite composite material.

Social Achievements

• Maintaining positive relationships with local communities through ongoing communication and community liaison assistants; completed an update of the Resettlement Action Plan’s population database and a land price survey.
• Expected creation of 17,000 direct and indirect jobs, with potential for thousands more through industrial development using co-products from mining overburden.

Governance Achievements

• Board reorganization to increase Non-Executive Director participation; appointed a new Non-Executive Chairman and expanded the Board to include two Non-Executive Directors.
• Appointed WH Ireland Limited as Nominated Advisor and Broker.

Climate Goals & Targets

Environmental Challenges

• Coronavirus pandemic and resulting lockdowns in Bangladesh severely restricted movement and business activity.
• Uncertainty regarding financing of new coal-fired power projects abroad.
• Delay in obtaining government approval for the Phulbari Coal and Power Project.
• Securing necessary funding for project development.

Mitigation Strategies

• Maintaining close contact with development partners despite pandemic restrictions.
• Expanding the Project Proposal to include supplying coal to the Bangladesh Government’s own power plants.
• Including a large-scale Solar Power Park and carbon offsetting measures in the Project Proposal to showcase environmental benefits.
• Exploring alternative financing options and seeking additional funding.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Increased awareness and action against climate change putting pressure on governments and financing organizations to reduce exposure to fossil fuel related power generation.

Opportunities

• Developing a large-scale Solar Power Park and achieving Net Carbon Zero mining operation.

Reporting Standards

Frameworks Used: UN Global Compact