Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Human Rights
• Community Engagement
• Safety

Environmental Achievements

• Cozamin Mine received Clean Industry Certification from Mexico's PROFEPA annually from 2015 to 2020.
• Mantoverde and Mantos Blancos operations committed to the Copper Mark.

Social Achievements

• Published 2020 Sustainability Report (Capstone Mining) and 2021 Sustainability Report (Capstone Copper).
• Expanded Code of Conduct and implemented Human Rights Policy and Supplier Code of Conduct in 2020.
• Regular training provided to employees and suppliers on Code of Conduct and Human Rights Policy.

Governance Achievements

• Annual review of Code of Conduct by the Board of Directors.
• Corporate objectives for sustainable performance linked to employee compensation.

Climate Goals & Targets

Environmental Challenges

• Fatal accident at Cozamin Mine in 2021.
• COVID-19 pandemic impacting operations and supply chains.
• Integration of Capstone Mining and Mantos Copper operations.
• Reclamation and mine closure obligations.
• Dependence on copper prices.

Mitigation Strategies

• Implementation of safety initiatives.
• Adapting to challenges and restrictions arising from COVID-19.
• Development of integration plan for MV-SD District.
• Annual review of reclamation and closure costs.
• Use of financial derivative instruments to manage metal price volatility.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Drought conditions
• Wildfires

Transition Risks

• Changes in climate change regulatory regime

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used:

Certifications:

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate
• Water
• Biodiversity
• Tailings
• Communities

Environmental Achievements

• 14% decrease in total freshwater withdrawal
• Continued alignment of tailings governance with the global best practice standard
• New or enhanced biodiversity baselines at Mantoverde and Pinto Valley
• Introduction of electric shovels at Mantoverde, expected to displace five million liters of diesel fuel annually
• Completion of dry stack facility and paste backfill plant at Cozamin, expected to reduce water withdrawal by 15%
• Replacement of wet scrubbers at Pinto Valley with more effective models, resulting in tenfold reduction in PM10 emissions

Social Achievements

• Mantos Blancos and Mantoverde awarded the Copper Mark in 2023
• Appointment of Pinto Valley's first female General Manager
• Women in senior labor relations positions at Mantos Blancos and Mantoverde
• Concluded a new collective bargaining agreement at Pinto Valley
• Supporting local fishers’ unions at Mantoverde through scallop farming project

Governance Achievements

• Achieved 30% women on the Board of Directors by 2023
• Added sustainability oversight to the Governance, Nominating and Sustainability Committee
• Incorporated sustainability and ESG knowledge into Board development processes
• 30% of executive compensation weighting on ESG factors

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to high sulfuric acid prices (impacted cathode business)
• Water shortages in water-stressed regions
• Biodiversity incident at Mantoverde related to the capture and death of a fox
• Regional violence in Zacatecas, Mexico (Cozamin)
• Dust emissions from mining operations

Mitigation Strategies

• Developed alternative sourcing strategies (e.g., alternative dust suppressants)
• Implemented water conservation initiatives (e.g., maximizing reuse, reducing evaporation)
• Reviewed and updated procedures to avoid similar biodiversity incidents
• Implemented security measures to protect employees and sites
• Used dust suppressants and implemented equipment solutions (e.g., wet scrubbers, cartridge filter units)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Emphasis on local content
• Due diligence on third parties

Climate-Related Risks & Opportunities

Physical Risks

• Water stress and drought
• Extreme weather events

Transition Risks

• Regulatory changes
• Changes to insurance coverage
• Supply disruption or shortage
• Reputation

Opportunities

• Development of energy-efficient products
• Use of desalinated seawater

Reporting Standards

Frameworks Used: GRI Standards, SASB Metals and Mining Sustainability Accounting Standard

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Copper Mark (Mantos Blancos and Mantoverde)
• Socially Responsible Business distinction (Cozamin)
• Company Committed to Human Rights (Cozamin)

Environmental Metrics

ESG Focus Areas

• biodiversity
• communities
• tailings
• climate
• water

Environmental Achievements

• Awarded the Copper Mark to its Mantoverde and Mantos Blancos operations in Chile.
• Introduced a Sustainable Development Strategy with interim targets including GHG emissions reduction targets.

Social Achievements

• Cozamin Mine received Clean Industry Certification from Mexico’s Federal Attorney for Environmental Protection (PROFEPA) annually from 2015 through 2020.
• Successful engagement with the local communities near the Cozamin mine.

Governance Achievements

• Changes to its board of directors, including the appointment of Mr. Peter Meredith as Lead Independent Director, the resignation of Mr. George Brack, and the addition of Ms. Patricia Palacios as a New Independent Director.

Climate Goals & Targets

Environmental Challenges

• Integrating the operations, technologies and personnel of Capstone Mining and Mantos Copper.
• Operating in domestic and foreign jurisdictions with risk of changes to governmental regulation or community interest.
• Climate change and its impact on climatic conditions on our operations and projects.
• Public policy changes in climate change regulatory regime.
• Compliance with environmental laws and regulations.
• Recruiting and retaining qualified personnel.
• Land reclamation and mine closure obligations.
• Water availability.
• Cybersecurity threats.

Mitigation Strategies

• Regular training to employees and suppliers on its Code of Conduct and Human Rights Policy.
• Implementing a Company-wide Tailings Management System.
• Continuous improvement in key areas including health and safety, environmental management, tailings management, energy management and social aspects, including stakeholder engagement.
• Developing alternative sourcing strategies for water.
• Implementing policies and measures to mitigate cybersecurity risks.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• droughts
• water shortages
• flooding
• wildfires
• extreme weather events

Transition Risks

• changes in government policies and regulations aimed at mitigating or adapting to climate change
• carbon emissions taxes
• increased competition for renewable energy
• water scarcity

Opportunities

• shifting energy mix toward renewables

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Added Oscar Flores as General Manager, Mantoverde and Gordon Bell to the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Lower oxide production at Mantos Blancos due to lower dump throughput, grade, and recoveries.
• Power outage and issues in leach pumping system at Mantos Blancos.
• Mill downtime at Mantos Blancos due to planned repair and maintenance.
• Lower heap recoveries at Mantoverde.
• Temporary sulphuric acid supply shortage at a Chilean smelter impacting Mantoverde.
• Inflationary price increases on main consumables, unfavorable foreign exchange rate, and start of paste plant operations at Cozamin.
• Changes in mining method and additional bolting requirements at Cozamin.

Mitigation Strategies

• Plan to address plant stability at Mantos Blancos includes improved maintenance and optimization of the concentrator and tailings system.
• Mantos Blancos 2024 sustaining capital guidance includes approximately $35 million to achieve sustainable nameplate operating rates.
• Addressing the heap recovery issues at Mantoverde.
• Implementing measures to mitigate the impact of inflationary price increases, unfavorable foreign exchange rates, and the start of paste plant operations at Cozamin.
• Adjusting mining methods and bolting requirements at Cozamin.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed