Lundin Mining Corporation
Climate Impact & Sustainability Data (2015, 2016, 2018, 2019, 2020, 2021, 2022, 2023)
Reporting Period: 2015
Environmental Metrics
ESG Focus Areas
- Governance
- Economic Performance
- Our People
- Health and Safety
- Social Responsibility
- Environmental Management
Environmental Achievements
- No serious environmental incidents at any of our sites.
- Independent third-party geotechnical tailings reviews successfully completed.
- 397 tonnes CO2e savings
- >2,388 GJ Energy Savings
Social Achievements
- Stakeholder engagement and community investment reached record levels.
- Landmark, multi-year community investment program put in place with the Municipality of Tierra Amarilla.
- $14.8 million Community Investment
Governance Achievements
- Implementation of Responsible Mining Framework
- Achieved best ever safety record with a Total Recordable Injury Frequency (TRIF) rate performance of 0.9 (excluding one fatality).
Climate Goals & Targets
Environmental Challenges
- Depressed metals markets and corresponding reduced revenues.
- Major natural disaster – flooding of the Copiapó river valley in Chile.
- Increasingly stringent permitting requirements in a politicized environment.
- One fatality at the Neves-Corvo mine.
Mitigation Strategies
- Affirmative action to minimize the effects of the low metals price environment.
- Significant leadership role in disaster relief and rebuilding support in Copiapó.
- Staffed up with additional permitting expertise.
- Approval of the Candelaria 2030 Project Environmental Impact Assessment.
- Implementation of additional safeguards across the Company based on the findings and lessons learned from the fatality investigation.
Supply Chain Management
Responsible Procurement
- All suppliers expected to conform to the Company’s Code of Conduct, Ethical Values and Anti-Corruption Policy, as well as our Responsible Mining Policy, and Responsible Mining Framework.
Climate-Related Risks & Opportunities
Physical Risks
- Reduced rainfall and increased evaporation (Neves-Corvo, Aguablanca)
- Increased precipitation and snowfall (Eagle)
- Increased evaporation (Candelaria)
Reporting Standards
Frameworks Used: GRI G4
Third-party Assurance: Prizma LLC (limited assurance)
Awards & Recognition
- 2015 Canadian Mineral Processor of the Year award (Jennifer Abols)
Reporting Period: 2016
Environmental Metrics
ESG Focus Areas
- Health and Safety
- Environmental Management
- Social Responsibility
- Governance
- Economic Performance
Environmental Achievements
- 44% reduction in fresh water consumption at European operations over the last two years
- No serious environmental incidents at any of our sites in 2016
- Full implementation of the Tailings Stewardship program across all operations
- Successful execution of health, safety, environmental and product stewardship audits
Social Achievements
- 30% reduction in total recordable injuries over 2015
- 33% reduction in lost time injuries over 2015
- Significant increase in corporate staffing in the areas of permitting, closure, social investment, and stakeholder engagement
- Improved local procurement of goods and services near our mines
- Continued significant social investments in the communities where we operate
Governance Achievements
- Joined the United Nations Global Compact (UNGC)
- Initiated the process of integrating UNGC principles and sustainable development goals
- Revised Code of Conduct to enhance anti-corruption and human rights policies
- Updated Whistleblower Policy
Climate Goals & Targets
- Advance the development of targets for improved energy efficiency and GHG emissions reduction by 2017
- Ensure all LMC sites and operations have community investment policies and plans by 2017
- Complete integrated HSEC audits at all sites by 2017
- Complete Social Impact Management Standard and initiate roll-out by 2017
- Complete the Responsible Mining Management System (RMMS) and develop a communication plan for roll-out by 2017
Environmental Challenges
- Chilean government resolution assessing a $4 million fine related to alleged environmental permit infractions (prior to LMC’s acquisition)
- Globally depressed metals markets
- Unconfirmed claim of discrimination during a corporate office hiring process
Mitigation Strategies
- Legal process ongoing for Chilean fine
- Reduced operating costs through spending restraint
- Review of unconfirmed discrimination claim ongoing
Supply Chain Management
Responsible Procurement
- Code of Conduct, Ethical Values and Anti-Corruption Policy, Responsible Mining Policy
Climate-Related Risks & Opportunities
Physical Risks
- Reduced precipitation and increased temperature at Candelaria
Reporting Standards
Frameworks Used: GRI G4/Mining & Metals Sector Supplement, AA1000AS–2008
Certifications: ISO 14001 (Minera Candelaria and Minera Ojos del Salado)
Third-party Assurance: Bureau Veritas
UN Sustainable Development Goals
- UN Sustainable Development Goals
Communicate on implementation progress of the 10 UNGC Principles on an annual basis.
Awards & Recognition
- International Green Apple Award for Environmental Best Practices (Galmoy Mine reclamation)
Reporting Period: 2018
Environmental Metrics
ESG Focus Areas
- Safety
- Economic Performance
- Governance
- Human Rights
- Biodiversity
- Product Stewardship
- Water Management
- Climate Change
- Stakeholder Engagement
- Community Investment
- Diversity and Inclusion
Environmental Achievements
- No Level 3 or above environmental incidents were reported in 2018.
- All operations’ environmental performance improved through enhanced communications, site visits, audits, and facility inspections.
- Reclaimed almost 79.2 million cubic meters of water, equal to using every cubic meter of Lundin Mining’s total water withdrawn approximately 2.5 times.
- Renegotiated Candelaria's electrical power purchase agreement, achieving a minimum of 80% renewable energy starting in 2023.
Social Achievements
- Overall safety performance better than target for a sixth consecutive year.
- Reduction of Lost Work Days by 12% from 2017 and by 26% from 2016.
- Total community investment expenditures of approximately $12 million.
- Implemented a new Community Investment Policy that focuses on being a catalyst and partner in sustainable development for the regions where we operate.
- Increased the number and percentage of female employees at each operation.
Governance Achievements
- Completed a formal Board Diversity Policy.
- Updated Diversity and Inclusion Policy.
- No known incidents of corruption in 2018.
- Updated Responsible Mining Policy.
Climate Goals & Targets
- Develop a five-year, Company-wide Sustainability Strategy.
- Achieve 80% renewable energy at Candelaria by 2023.
- Extend mine life at existing operations.
- Achieve a TRIF rate of 0.60 or better.
- Increase Zero Harm weeks over 2018 performance.
- Complete first environmental conformance audits against the new RMMS across all sites.
Environmental Challenges
- Global political events clouded the outlook for base metal demand, leading to declining prices for much of the year.
- Lower than average unemployment rates at several of the Company’s geographic locations have increased the challenges of recruiting and retaining employees.
- Climate change and related risks (flooding, drought, wildfires).
- Evolving regulatory landscape.
- Maintaining social license and community support.
Mitigation Strategies
- Initiated the development of a Five-Year Sustainability Strategy.
- Refined our Stakeholder Engagement Standard.
- Implemented Health and Safety Action Plans.
- Developed alternative sourcing strategies (e.g., desalination plant at Candelaria).
- Implemented various dust control, greenhouse gas (GHG), energy conservation and green energy initiatives.
Supply Chain Management
Responsible Procurement
- Focus on local procurement (95% of goods and services procured locally or nationally in 2018).
- Initiated development of a Responsible Sourcing – Supply Chain Standard.
Climate-Related Risks & Opportunities
Physical Risks
- Flooding
- Extreme rainfall
- Drought
- Wildfire
Transition Risks
- Regulatory changes requiring GHG emission reductions.
- Market shifts towards low-carbon technologies.
Opportunities
- Development of energy-efficient products.
- Increased demand for base metals in low-carbon technologies.
- Sourcing lower-carbon electricity and fuels.
Reporting Standards
Frameworks Used: GRI Standards (Core option), UN Global Compact
Certifications: ISO 14001 (Candelaria Complex)
Third-party Assurance: Bureau Veritas
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 8 (Decent Work and Economic Growth)
- Goal 9 (Industry, Innovation and Infrastructure)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
Various initiatives throughout the report contribute to these goals.
Awards & Recognition
- UNGC Canada Peer Review Program (first place for 2017 Sustainability Report)
- Top-three sustainability reports for Non-Renewable Resources by the Finance and Sustainability Initiative (FSI / IFD) for the third year in a row.
- Canadian National Railway (CN) Safe Handling Award (Eagle Mine)
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Health and Safety
- Economic Performance
- Social Performance
- Environment
- Governance
- Human Rights
Environmental Achievements
- Total fresh surface water withdrawal decreased by 7% compared to 2018
- Reduction in energy intensity and GHG emissions intensity, per tonne rock mined, from 2016 to 2019
- No Level 3 or above environmental incidents (although two Level 3 incidents were recorded, environmental impact was minimized)
Social Achievements
- Total community-investment expenditures of approximately $7.45 million
- Modest improvement in Total Recordable Injury Frequency (TRIF) rate over 2018 – 0.66 vs 0.67
- Zero fatalities
- Roll out the Diversity and Inclusion Policy to all employees and Board members
- Employee engagement survey conducted with an 89% participation rate
Governance Achievements
- RMMS audit implementation and integration
- Corporate climate change adaptation and mitigation planning toolkit developed
- No known incidents of corruption
Climate Goals & Targets
- Not disclosed
- Finalize a corporate-wide sustainability strategy to supplement and align with long-term environmental strategy
- Implement our Human Rights Policy and act to address the opportunities for improvement from site-level HRRIA findings
- Achieve a Total Recordable Injury Frequency (TRIF) rate of 0.60 or better
- No Level 3 incidents
- Advance implementation of the site-level 5-year social performance plans and develop a 5-year strategic social performance plan for Chapada
Environmental Challenges
- Overall safety performance resulted in an increase in total recordable injuries compared to 2018, attributed to the addition of a new mine, increased work hours, activities associated with improvement projects, and several significant, planned maintenance shutdowns.
- Two Level 3 incidents reported in 2019 (tailings spills at Neves-Corvo mine)
- Increased GHG emissions due to increased fuel consumption at Candelaria and the addition of Chapada
Mitigation Strategies
- Immediate implementation of Health and Safety Action Plans
- Swift site response and corrective actions to minimize environmental impact of tailings spills
- Development of a corporate climate change adaptation and mitigation planning toolkit
- Focus on recordable injury prevention through the elimination of repeat or similar incidents and by enhancing workplace hazard recognition and elimination processes
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Fair and equitable bidding processes, evaluations and awarding of contracts under competitive environments that are managed responsibly
- Collaborative Sourcing Strategy focused on synergies and volume-level benefits across our portfolio of operations
Climate-Related Risks & Opportunities
Physical Risks
- Severe flooding events
- Extreme rainfall events
- Prolonged droughts
Transition Risks
- Regulation relating to emission levels and energy efficiency becoming more stringent
- Cumulative-effects concerns impacting permitting for future expansions
- Financial impacts associated with increased tax and regulation focused on lowering emissions
Opportunities
- Assisting local government departments, emergency services and communities during flood and wildfire events
- Potential opportunities for maintaining environmental flows in water courses and lakes
- Opportunities associated with emerging low-carbon and more energy-efficient technologies
Reporting Standards
Frameworks Used: GRI Standards: Core option
Certifications: ISO 14001 (Candelaria, Ojos del Salado, Chapada), OHSAS 18001 (Candelaria, Chapada)
Third-party Assurance: Apex Companies, LLC
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 9 (Industry, Innovation and Infrastructure)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
Initiatives contributing to these goals are described throughout the report.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Eagle Mine awarded CN Safe Handling Award
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Safety
- Governance
- Human Rights
- Economic Performance
- Social Performance
- Environment
- Climate Change
- Water Stewardship
- Tailings Management
- Community Development
- Stakeholder Engagement
- Indigenous Relations
- Diversity and Inclusion
Environmental Achievements
- No Level 3 or above environmental incidents.
- 13% decrease in Level 2 incidents.
Social Achievements
- COVID-19 community support totaling $3.1 million.
- Successful renegotiation of collective bargaining agreements with unions in Brazil and Sweden without significant labor disruption.
- Implementation of engagement survey action plans.
Governance Achievements
- Formal adoption of the Global Industry Standard on Tailings Management (GISTM).
- Approval of Human Rights Standard.
- Establishment of a Diversity, Inclusion, Anti-Racism and Discrimination Committee.
Climate Goals & Targets
- Integrate climate-related risks and opportunities into our Company-wide Risk Management Framework.
- Develop a five-year corporate Sustainability Strategy.
- Develop a five-year corporate social performance strategy.
- Implement the Social License to Operate Index at all sites.
- Develop gap assessment and site-level action plans to support the implementation of GISTM.
- Develop a corporate water report.
- Zero fatalities.
- TRIF rate of 0.55 or better.
- Zero Level 3 or above environmental incidents.
- Roll out Human Rights Standard and train all Company leaders and key operational staff.
Environmental Challenges
- COVID-19 pandemic impacting operations and communities.
- Fatality at Neves-Corvo mine.
- Suspension of Zinc Expansion Project activities at Neves-Corvo due to COVID-19.
- Interruption of processing activities at Chapada mine due to mill motor damage.
- Work stoppages during strike action at Candelaria.
- Allegations of anti-union activity at Candelaria.
- Allegations of environmental damage and human rights breaches at Candelaria.
Mitigation Strategies
- Implementation of Pandemic Response Plan.
- Additional safeguards implemented at Neves-Corvo based on investigation findings.
- Resumption of ZEP activities in January 2021.
- Chapada and Candelaria returned to full production capacity in Q4 2020.
- Engagement with unions and appropriate steps taken to resolve complaints at Candelaria.
- Engagement with Chilean National Contact Point (NCP) regarding complaints.
- Settlement of lawsuit alleging groundwater extraction beyond permitted limits at Candelaria.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Prioritizing local and national suppliers.
- Vendor Onboarding and Certification program.
- Collaborative Sourcing Strategy focused on synergies and volume-level benefits.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Resource shortages
- Water shortages
Transition Risks
- Regulatory changes
- Increased costs associated with reducing emissions
Opportunities
- Development of energy-efficient products
- Assisting communities during extreme weather events
- Fuel-switching, renewable energy sources, energy efficiency improvements
Reporting Standards
Frameworks Used: GRI Standards: Core option, SASB reporting framework – Mining & Metals Standard (2018)
Certifications: ISO 14001:2015 (Candelaria, Ojos del Salado, Chapada), OHSAS 18001 (Candelaria, Chapada - recertification under ISO 45001 in 2021)
Third-party Assurance: Apex Companies, LLC (moderate assurance under AA1000AS v3, reasonable assurance for GHG emissions under ISO 14064-3)
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 8 (Decent Work and Economic Growth)
- Goal 9 (Industry, Innovation and Infrastructure)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
Initiatives contributing to these goals are detailed throughout the report.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Eagle Mine received the Canadian Pacific (CP) Safe Handling award.
- Neves-Corvo mine was awarded the Sustainable Transport Certificate by Medway.
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Safety
- Water Management
- Energy Consumption
- Greenhouse Gas Emissions
- Stakeholder Engagement
- Grievance Mechanism
Environmental Achievements
- Not disclosed
Social Achievements
- Not disclosed
Governance Achievements
- Not disclosed
Climate Goals & Targets
- Not disclosed
- Not disclosed
- Not disclosed
Environmental Challenges
- Not disclosed
Mitigation Strategies
- Not disclosed
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: AA1000 Assurance Standard (AS) v3
Certifications: ISO 14064-3: Second edition 2019-04
Third-party Assurance: Apex Companies, LLC
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate change
- Tailings management
- Water stewardship
- Community relations
- Economic development
- Workplace health and safety
- Fatal Risk Management
- Diversity and inclusion
- Human rights
- Business ethics
- Mining innovation
- Responsible production and supply chain
Environmental Achievements
- Scope 1 and Scope 2 emissions were almost 15% lower than the 2019 adjusted target base year.
- Candelaria was awarded The Copper Mark™.
- Chapada’s tailings were certified and registered by the Brazilian Ministry of Agriculture as an agricultural remineralizer.
Social Achievements
- Launched Social Investment Impact Framework (SIIF) and pilot projects to measure the impact of flagship community investment projects.
- Improved community relationships following the sinkhole event near Alcaparrosa Mine.
- Implemented Tierra Amarilla Neighbourhood Blasting Training and Monitoring Program.
- Launched Project I.D.E.A. entrepreneurship program for high school students in Portugal.
Governance Achievements
- Updated Responsible Mining Policy to include climate commitment.
- Updated Whistleblower Policy.
- Board was composed of 37.5% women, executive team 30%.
Climate Goals & Targets
- Net-zero emissions by 2050 (target mentioned, but no specific plan detailed).
- Achieve a 35% reduction in Scope 1 and 2 (market-based) emissions by 2030.
- Develop economic diversification strategies for each jurisdiction.
- Align tailings facilities at Candelaria, Chapada, and Neves-Corvo to the GISTM by August 2023.
- Achieve a TRIF rate of 0.55 or better.
Environmental Challenges
- Two fatalities occurred at Neves-Corvo.
- Sinkhole event near Alcaparrosa Mine at Candelaria.
- Community concerns regarding dust emissions at Candelaria and Chapada.
- Community concerns regarding water quality near Chapada.
- Supply chain disruptions due to global events.
- Increased production costs due to inflation.
Mitigation Strategies
- Accelerated introduction of Fatal Risk Management (FRM).
- Comprehensive engagement plan to address sinkhole event.
- Implementation of dust suppression programs.
- Additional water management initiatives at Chapada.
- Increased local and national procurement to mitigate supply chain issues.
- Various cost-saving initiatives.
Supply Chain Management
Supplier Audits: 4,752 active business partners and 2,109 vendors onboarded through Global Business Partner Onboarding program.
Responsible Procurement
- Business Partner Code of Conduct
- Local and national supplier prioritization
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Water shortages
- Flooding
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
- Increased demand for copper and nickel
Reporting Standards
Frameworks Used: GRI Standards (plus the Mining & Metals Sector Supplement), TCFD
Certifications: ISO 14001, ISO 45001, Copper Mark™ (Candelaria)
Third-party Assurance: Apex Companies, LLC
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 8 (Decent Work and Economic Growth)
- Goal 9 (Industry, Innovation and Infrastructure)
- Goal 13 (Climate Action)
- Goal 17 (Partnerships for the Goals)
The company's initiatives contribute to these goals through various programs and targets.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Copper Mark™ (Candelaria)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Responsible Mining
- Climate Change (GHG emissions reduction)
- Water Management
- Tailings Management
Environmental Achievements
- Ambitious but achievable goal to reduce Scope 1 & 2 GHG absolute emissions by 35% by 2030 (compared to 2019 baseline year)
- Zinkgruvan’s investment in renewable electricity since 2017 benefiting Scope 2 emissions
- Candelaria’s freshwater demands met through seawater desalination facility
- Continued implementation of the Global Industry Standard on Tailings Management (GISTM)
- Committed to the Copper Mark assurance framework
Social Achievements
- Leading ISS Environment & Social Quality Scores
- Carbon Disclosure Project (“CDP”) score of ‘B’, above industry and North American averages
Governance Achievements
- Not disclosed
Climate Goals & Targets
- Not disclosed
- Reduce Scope 1 & 2 GHG absolute emissions by 35% by 2030
- Not disclosed
Environmental Challenges
- Not disclosed
Mitigation Strategies
- Not disclosed
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: CDP Climate Change and Forestry programs, aligned with the Task Force on Climate-related Financial Disclosures (TCFD)
Certifications: Copper Mark
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed