Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Indigenous Relations
• Community Engagement
• Supply Chain Management
• Governance
• Health and Safety
• Economic Contribution
• Biodiversity

Environmental Achievements

• Secured all environmental approvals for the Nolans Project in 2018
• Developed a Biodiversity Management Plan to mitigate impacts on biodiversity
• Located a significant water source (Reaphook Paleovalley) for the project
• Designed an on-site Residue Storage Facility (RSF) for responsible waste management
• Planned for waste heat recovery in the sulphuric acid plant
• Initiated a GHG Reduction Study to define emission reduction strategies and goals
• Applied for a lease to build a solar farm to replace diesel and natural gas for power generation

Social Achievements

• Executed a Native Title Agreement (NTA) with traditional owners
• Developed a Local and Indigenous Business Participation Plan
• Contributed $11.3 million to the Australian economy and $1.7 million to the Northern Territory economy in FY21
• Achieved zero workplace injuries in FY21
• Sponsored the Young Indigenous Art Awards and Literacy Program

Governance Achievements

• Became a signatory to the United Nations Global Compact
• Became a Pending Member of the Initiative for Responsible Mining Assurance (IRMA)
• All employees sign off on the Anti-Bribery and Corruption policy annually
• Published inaugural sustainability report

Climate Goals & Targets

Environmental Challenges

• Managing water usage in an arid environment
• Defining and reducing greenhouse gas emissions to achieve net-zero by 2050
• Maximising local and indigenous business participation

Mitigation Strategies

• Undertaking a water reduction study during FEED
• Developing a Preliminary Net Zero Pathway with options for carbon abatement (solar PV, waste heat recovery, ACCUs)
• Developing a Local and Indigenous Business Participation Plan
• Proactive engagement with local communities and the Northern Territory Government

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Developing a sustainable procurement strategy in line with ISO 20400
• Indigenous business participation opportunities

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: World Economic Forum (WEF) Standards, WEF ‘Stakeholder Capitalism’ framework, GRI, SASB, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 8: Decent work and economic growth
• SDG 9: Industry, innovation and infrastructure
• SDG 11: Sustainable cities and communities
• SDG 12: Responsible consumption and production
• SDG 13: Climate action
• SDG 15: Life on land
• SDG 17: Partnerships for the goals

Arafura’s operations aim to contribute to these SDGs through various initiatives outlined in the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Engagement
• Health and Safety

Environmental Achievements

• Developed a Greenhouse Gas Emissions Reduction Pathway for the Nolans Project, aiming for net-zero emissions by 2050, with interim targets of 30% reduction by 2030 and 75% by 2040.
• Completed the IRMA Ready Assessment, a step towards IRMA certification.

Social Achievements

• Set employment commitments for Indigenous and local employees at the Nolans Project (4% and 10% during construction, 20% Indigenous during operation).
• Maintained a zero-injury record in FY22.

Governance Achievements

• Established a Board Sustainability Committee to oversee long-term sustainability targets.
• Became a signatory to the UN Sustainable Development Goals (UN SDGs).

Climate Goals & Targets

Environmental Challenges

• Large stationary power requirement for metallurgical processing at the Nolans Project.
• Large proportion of energy needed as thermal energy (steam).
• Remote site with no electricity grid connection.
• Global macroeconomic effects on supply chains and long-lead equipment deliveries.

Mitigation Strategies

• Development of a Greenhouse Gas Emissions Reduction Pathway incorporating solar, wind, concentrated solar thermal, and renewable fuels.
• Adoption of a large single-train sulphuric acid plant to maximize cost-effectiveness and reduce emissions.
• Plan to procure long-lead equipment in advance of construction.
• Incorporation of emission reduction targets into the Independent Power Provider (IPP) contract.

Supply Chain Management

Responsible Procurement

• Review of ESG credentials of suppliers prior to engagement; development of a procurement on-boarding process and supplier code of conduct (future).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather patterns/events impacting plant and infrastructure

Transition Risks

• Policy change, structural change to supply chain

Opportunities

• On-site deployment of renewables

Reporting Standards

Frameworks Used: World Economic Forum (WEF) Stakeholder Capitalism framework, UN Global Compact

Certifications:

UN Sustainable Development Goals

• UN SDGs (excluding 2 and 11)

Arafura is a participant in the UN Global Compact.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Health and Safety
• Responsible Business Practices
• People & Culture
• Supply Chain
• Stakeholders & Communities
• Indigenous Partnerships

Environmental Achievements

• Approx. 29% reduction in gas use and associated greenhouse emissions from Nolans Project power production, as compared to original solution, due to adoption of steam co-generation solution in basis of design.
• Mine Management Plan approved by the Northern Territory Government, including detailed appendices of environmental, health, safety and risk management plans and procedures.

Social Achievements

• Three additional, full-time sustainability-related professional positions recruited.
• Launched 'Sense' platform to deliver safety, health and wellbeing workplace initiatives.
• Introduction of company-funded paid parental leave and the payment of superannuation on unpaid parental leave.

Governance Achievements

• Anti-corruption training planned for Board, senior leadership team and senior staff by end of 2023.

Climate Goals & Targets

Environmental Challenges

• Managing and mitigating environmental and social aspects of the Nolans Project.
• Achieving net-zero emissions by 2050.

Mitigation Strategies

• Developed a Greenhouse Gas Emissions Reduction Pathway outlining a transition to renewable energy sources (solar, wind, concentrated solar thermal) and renewable fuels.
• Implementation of an action plan to address IRMA Ready requirements.
• Developing an adaptive management plan for groundwater extraction.

Supply Chain Management

Responsible Procurement

• "Buy local first" approach, prioritizing local sourcing of goods and services.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (with reference)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Health and Safety
• Responsible Business Practices
• People and Culture
• Supply Chain
• Stakeholders & Communities
• Indigenous Partnerships

Environmental Achievements

• Developed an Environmental and Social Management System (ESMS) aligning with EP4 Equator Principles IV, IFC Performance Standards, and AS/NZS ISO14001:2015.
• Completed Environmental and Social Due Diligence (ESDD) on the Nolans Project against IFC Performance Standards, EP4 Equator Principles IV, and GISTM.
• Received Board approval for the Environmental and Social Action Plan (ESAP) to address gaps identified in the ESDD.
• Federal Government approval of Water Abstraction Management Plan (WAMP).

Social Achievements

• Established the Local and Indigenous Business Growth Program to support Indigenous-owned businesses.
• Developed a Human Rights Policy.
• Achieved 60% female representation on the Executive Leadership Team.
• 100% of employees and contractors completed mandatory training on creating a safe, respectful, and inclusive culture.
• No recordable injuries or dangerous events during approximately 100,904 hours worked.

Governance Achievements

• Refreshed Board and Executive Leadership Team with a renewed focus on sustainability.
• Created the Head of Sustainability and Environment role reporting directly to the CEO.
• Commenced alignment with the Taskforce for Climate-related Financial Disclosures (TCFD) principles.
• Secured debt funding exceeding US$1 billion from commercial banks and export credit agencies.

Climate Goals & Targets

Environmental Challenges

• Potential climate-related physical risks (higher temperatures, extreme precipitation) and transition risks (fuel price volatility, GHG emission pricing).
• Procedural error resulting in a single contravention of EPBC conditions of approval (no environmental impact).

Mitigation Strategies

• Climate-related risk and opportunity assessment conducted in accordance with TCFD principles.
• Development of a climate-related risk and opportunity management framework.
• Development and implementation of the ESMS to address environmental and social risks.
• Implementation of the ESAP to address gaps identified in the ESDD.

Supply Chain Management

Responsible Procurement

• 'Buy local first' approach
• Supplier Code of Conduct (to be introduced in FY25)

Climate-Related Risks & Opportunities

Physical Risks

• Higher temperatures
• Extreme precipitation events

Transition Risks

• Fuel price volatility
• Increased GHG emission pricing

Opportunities

• Growth in the market for rare earth magnets for green technologies.

Reporting Standards

Frameworks Used: GRI Standards (with reference)

Awards & Recognition

• Penangke Cultural Consultants: Best Blak Consultancy Business of the Year 2024