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2020 Sustainability Report

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2020 Sustainability Report 2020 SUSTAINABILITY REPORT 1 Lundin Mining Corporation is a Message From the President and CEO 2 HEALTH About This Report 4 AND SAFETY diversified Canadian base metals About Lundin Mining 5 Our Approach 29 Our Approach to Responsible Mining 6 Our Performance 32 mining company with operations and Sustainability Industrial Hygiene 36 in Brazil, Chile, Portugal, Sweden Our COVID-19 Pandemic Response 8 and Occupational Health Our Value Chain 10 Crisis Management Planning 38 and the USA, primarily producing Our Operations 10 and Emergency Preparedness copper, zinc, gold and nickel. Our Exploration Group 12 Our Supply Chain 12 ECONOMIC Our Customers and Markets 13 PERFORMANCE Our Data Privacy and Cybersecurity 15 Our Approach 41 Defining Our Report Content 16 Our Performance 42 Our Material Topics 16 Local Procurement 44 and Key Focus SDGs Independent Assurance 17 OUR PEOPLE of Our Report Content Performance Highlights 18 Our Approach 47 2020 Performance Highlights 18 Our Performance 48 CONTENTS 2021 Sustainability Goals 19 Local Hiring 49 Our Performance Against 2020 Goals 20 Labour Relations 50 GOVERNANCE SOCIAL PERFORMANCE Our Approach 23 Our Approach 53 Our Governance 24 Our Performance 54 Our Performance 24 Stakeholder Engagement 55 Human Rights 26 Indigenous Relations 59 Managing Social Impacts 61 Community Development 64 ENVIRONMENT Our Approach 71 Tailings and Waste Rock Management 74 Water Stewardship 78 Climate Change, Energy and GHG Emissions 88 Reclamation and Closure 98 OUR COMMITMENT TO Non-Material Topics 99 THE UN GLOBAL COMPACT Air Emissions, Noise and Vibration 99 Lundin Mining Corporation joined the United Nations Global Compact in 2016, supports Biodiversity and Land 101 the Ten Principles on human rights, labour Non-Mineral Waste 102 standards, environment and anti-corruption, and promotes the UNGC’s 17 Sustainable Development Goals. The results of our Appendix A: Key Performance Data 103 2020 activities are presented in our annual Appendix B: Basis for Energy 106 Communication on Progress, located in the and Greenhouse Gas Reporting Appendix section of this report. Independent Assurance Statement 107 GRI Content Index 111 UN Global Compact: 119 Communication on Progress Note: Some photographs in this report Cautionary Statement 121 were taken before COVID-19 restrictions. on Forward-Looking Information 2020 SUSTAINABILITY REPORT MESSAGE FROM THE PRESIDENT AND CEO 2 3 MESSAGE FROM THE The protection and promotion of our workforce, enabling remote working achievement. Our operations have PRESIDENT AND CEO Human Rights is inherent in our arrangements and modified schedules continued to focus on addressing core Values of Respect and Integrity, to minimize layoffs and other economic Scope 1 and Scope 2 GHG emissions supported by our Code of Conduct, impacts on our communities. by assessing initiatives to improve energy On a global scale, we collectively experienced many challenges Ethical Values and Anti-Corruption efficiency and energy conservation and Safety is one of our core Values and throughout 2020. The COVID-19 pandemic has proven to be a complex Policy, Responsible Mining Policy to identify lower-carbon energy sources. our goal is Zero Harm. Lundin Mining situation that has continuously evolved and, in some way, affected each and Diversity and Inclusion Policy. At Efforts to expand evaluation of Scope 3 Lundin Mining, we support the Universal achieved its best ever Total Recordable emissions have also been successful. one of us. We adapted to the challenges and adopted new ways to Declaration of Human Rights and in Injury Frequency (TRIF) rate in 2020 accomplish our goals while doing our best to keep both our employees 2020, we released our new Human with a rate of 0.55 against a target Commitment to our core Values and host communities safe. As an industry, many of us pulled together Rights Standard. The standard was of 0.60 per 200,000 person hours guides all aspects of our business, our resources, shared learnings and provided assistance to those in need. designed to complement and enhance worked. While this achievement including community relations I’m proud of our collective response and the team at Lundin Mining our pre-existing commitment to Human was overshadowed by the fatality at and social performance. The team for their resilience and dedication throughout. With that, I present Rights and will also serve as a guide Neves-Corvo, the overall safety result has been working to assess our our 2020 Sustainability Report. in our efforts to continuously improve was realized during a challenging year practices related to Human Rights our understanding of how to identify, commanding significant changes to how and identify opportunities to enhance prevent, mitigate and report human we worked to ensure our workforce our commitment to the Universal rights risks and associated issues. and local communities were protected Declaration of Human Rights. In from the spread of COVID-19. 2020, sites adapted their community In recognition of the increasing investment plans to respond to the cting on our Values of Safety, In 2020, we continued our commitment In late-2020, Lundin Mining formally importance of responsible sourcing and Effective environmental management is COVID-19 pandemic, identifying the Integrity, Respect and to the United Nations Global Compact adopted the Global Industry Standard product stewardship, Lundin Mining has integral to the success of our operations. immediate needs of community AExcellence, we at Lundin Mining (UNGC) initiative, documenting our on Tailings Management (GISTM). established a cross functional working We recognize the value of water as a members impacted by the public worked throughout 2020 to deliver support of the Ten Principles on The ultimate goal of GISTM is zero group to develop a corporate strategy shared resource and are committed health crisis. As we prepare for what strong performance while continually human rights, labour standards, harm to people and the environment and design a strategic roadmap over the to responsible water stewardship, to may be a sustained period of change, focusing on the heath, safety and environment and anti-corruption, while aiming to prevent catastrophic next two years. In 2021, a gap analysis minimize any detrimental impact on we will continue to support relief wellbeing of our employees and host and the 17 Sustainable Development failure of tailings facilities by providing will compare the strategy to international water resources, other water users efforts while taking the measures communities. Our corporate and site Goals (SDGs), through an annual operators with specified measures standards to ensure integration with and receiving environments. In 2020, necessary to ensure the health crisis management teams worked Communication on Progress (COP). and approaches to safe tailings facility corporate management systems, we revised our approach to public and wellbeing of our employees, proactively, following our Pandemic I was proud to pledge our Company’s management, considering multiple building on the integration of our Human reporting on water to align with the contractors and communities. Response Plan and the guidance of support for the UNGC’s “Statement stakeholder perspectives. Supported Rights Standard and harnessing the updated GRI 303: Water and Effluents local health authorities and the World From Business Leaders For Renewed by our Responsible Mining Management broader sustainability strategy. 2018 Standard, supplementing our Lundin Mining has been reporting on Health Organization, to monitor the Global Cooperation” seeking to highlight System, our aim is to implement the data with additional disclosures around our sustainability performance in a evolving pandemic and put appropriate a sense of urgency for inclusive Standard over the next 3 to 5 years, During 2020, we celebrated many water quality and areas designated comprehensive, standalone document and protective measures in place. multilateralism, to demonstrate the action plans being prioritized as production successes, with annual as water-stressed. We continued since 2011. As we continue to work We also worked closely with our commitment from the global business defined by GISTM classifications. production of all metals meeting or our comprehensive monitoring of together to navigate the challenges communities to identify needs and community, and to call on governments exceeding the Company’s annual environmental parameters to confirm presented by COVID-19, I am proud Embracing diversity and inclusion provide support. to do their part. production guidance, achieved despite the effectiveness of our protection to introduce this report as President, is representative of our core Values, a number of operational challenges, measures and progressed technical CEO and Director. I am encouraged In September, the death of a long-time We have demonstrated sustainable particularly Respect. In 2020, we ranging from the suspension of the studies where additional information and impressed when I look across colleague at our Neves-Corvo mine improvements in our safety, adopted our Diversity and Inclusion Zinc Expansion Project activities at was required to inform and enhance our the business and see the level of in Portugal was a loss that was felt by environmental, social and operating policy, amended in February 2021 to Neves-Corvo from March due to environmental management practices. commitment to our Mission and Values the entire organization. We held safety performance,
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