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, and our overarching include a Company target for achieving COVID-19 concerns, the interruption At Lundin Mining, environmental driving us forward toward achieving stand-downs at all of our operations goal is to continue to strengthen our and maintaining a Board composition of processing activities at Chapada incidents are classified on a significance our sustainability goals for 2021. Our globally to reflect on the loss of our approach to sustainability. We will in which women comprise at least mine due to damage caused to our scale, and we are pleased to report that 2020 Sustainability Report provides colleague from this tragic accident and continue to implement key initiatives 30% of all directors, and to sustain at mill motors during a power outage in there were no Level 3 or above incidents a comprehensive disclosure of our remind ourselves how we can keep that support our sustainability least 30% of executive officer positions late September and work stoppages in 2020 at any of our operations. past performance, commitments each other safe. Additional safeguards performance. In 2020, we initiated held by women, as relevant positions during strike action at Candelaria in and strategy for the future. have been implemented across the planning for the next stage of our become vacant and appropriately October. Candelaria and Chapada both Lundin Mining acknowledges our role Company based on the findings from sustainability journey, a cross-functional skilled candidates are available. returned to full production capacity in the call for action to reduce GHG the investigation. and collaborative process, including We carried out global diversity and in the fourth quarter of 2020, and ZEP emissions, to commit to low-carbon the creation of a multi-disciplinary inclusion training and created the alternatives, and to develop climate Though we have faced challenges, activities resumed in January 2021. sustainability working group, an Diversity, Inclusion, Anti Racism and resilience. We annually disclose our we also celebrated many successes, The integration of Chapada mine in executive steering committee and Discrimination (DIARD) Committee, a governance, strategy, risk management, achieved new records and delivered Brazil progressed extremely well and Marie Inkster a formal governance structure. multi-disciplinary volunteer working and metrics in the CDP climate change strong performance. Our Mission at we are happy to present the first full President and CEO Through this process, we will define, group established to further our report, aligned with the Taskforce on Lundin Mining is to responsibly mine year’s data collected since acquisition integrate and embed sustainability diversity and inclusion agenda. Climate-related Financial Disclosures base metals vital to society, creating in this current report, while Eagle and pillars, key themes, performance (TCFD) recommendations. We have meaningful value for our stakeholders, Zinkgruvan continue to set new annual indicators and long-term targets. steadily improved our disclosure scoring and I have no doubt that we will production records. I am happy we were annually and received a B rating in continue to be resilient, demonstrating able to continue to operate under new 2020, which we consider to be a great strong business and sustainability restrictions and were able to maintain performance across our operations.

LUNDIN MINING 2020 SUSTAINABILITY REPORT 4 5 ABOUT THIS REPORT ABOUT LUNDIN MINING

Lundin Mining Corporation has published an annual sustainability report since 2010, providing updates on the safety, Lundin Mining Corporation is a diversified Canadian base metals mining company with headquarters in Toronto, Canada environmental, social and economic issues that are of greatest interest to communities near our operations, our employees, our and operations in Brazil, Chile, Portugal, Sweden and the United States of America. Greenfield exploration activities investors and other stakeholders. Detailed information regarding our nature of ownership, legal form and financial and operational were conducted in Amauta Peru and ceased in February 2020. The Company’s principal products and sources of results for the reporting period can be found in our Annual Information Form (AIF), 2020 Annual Management’s Discussion and sales are copper, zinc and nickel concentrates, with the copper concentrates from Candelaria and Chapada containing Analysis, Financial Statements and the Management Information Circular available on the Company’s website and are accessible significant gold content. under the Company’s profile on the System for Electronic Document Analysis and Retrieval (SEDAR).

Certain information contained or incorporated by reference in this Sustainability Report, including any information as to our sustainability strategy and vision, projects, plans, or future financial or operating performance, constitutes “forward-looking statements”. All such forward-looking statements made in this Revenue Breakdown, Metal1 Production, Revenue Breakdown, Sustainability Report are qualified by the Cautionary Statement found in the Appendix section of this report. by Metal 2020 by Contained Metal 2020 by Mine 2020 * Unless otherwise stated, all references to “$” are United States dollars. “Lundin Mining” or “Company” refer to Lundin Mining Corporation and / or its subsidiaries. 2% This report contains non-GAAP (“generally accepted accounting principles”) measures. These performance measures have no meaning within GAAP under 8% 2% 2% International Financial Reporting Standards as issued by the International Accounting Standards Board and, therefore amounts presented may not be comparable 8% 230,781 13% to similar data presented by other mining companies. 43%

SUSTAINABILITY REPORTING FRAMEWORK AND CYCLE REPORT SCOPE 12% 163,000 • Significant change to scope and 142,744 REPORTING PERIOD DATE OF material topic boundaries, compared 14% to 2019 Sustainability Report: January 1, 2020 – LAST REPORT 9% December 31, 2020 December 31, 2019 >> Inclusion of a full 12 months of 65% data for the Chapada Mine, Brazil, 29,236 22% acquired by Lundin Mining 16,718 GRI CONTENT INDEX R E P O R T I N G 1 in July 2019. Candelaria Neves-Corvo Specifies each of the FRAMEWORK Copper Lead Copper Zinc Gold Nickel Lead GRI Standards used and Global Reporting Initiative Silver Chapada Zinkgruvan • Key focus on operating mines, Zinc (Tonnes) (Tonnes) (Ounces) (Tonnes) (Tonnes) lists all disclosures included in (GRI) Standards (plus the Mining majority-owned and managed by Gold Other Eagle the report, broadly mapped & Metals Sector Supplement). Lundin Mining through its subsidiaries: Nickel 1 against the SASB reporting 1 Candelaria’s copper production has been Candelaria’s copper revenue has been framework – Mining & Metals >> Candelaria Complex, Chile reported on a 100% basis. reported on a 100% basis. Standard (2018). (80% interest) >> Chapada Mine, Brazil IN ACCORDANCE MATERIAL TOPICS >> Eagle Mine, USA OPTION Subjects are prioritized This report has been for inclusion in the >> Neves-Corvo Mine, Portugal prepared in accordance with report based on significance >> Zinkgruvan Mine, Sweden the GRI Standards: Core option. to Lundin Mining’s stakeholders Additional disclosures beyond and the mining and minerals • Inclusion of selected health and the criteria for Core are reported sector in general, as approved to provide a more detailed and by the HSEC Committee safety, employment, energy and comprehensive report. of the Board. greenhouse gas data, for additional areas of our business: >> Corporate headquarters INDEPENDENT REVIEW in Toronto, Canada ASSURANCE This report has been Apex Companies, LLC reviewed and approved >> Exploration projects in the (Apex) provided independent by Lundin Mining’s Health, Safety, vicinity of our operating mines assurance of Lundin Mining’s Environment and Community 2020 Sustainability Report for (HSEC) Committee of the >> Amauta exploration site in Peru selected indicators in accordance Board and Lundin Mining senior (ceased February 2020) with the updated AccountAbility’s management, including the AA1000AS v3. The moderate CEO; COO; CFO; SVP Legal and • Exclusion of Freeport Cobalt assurance level under AA1000AS General Counsel; SVP Human business, Kokkola, Finland, 2008 is approximately equivalent Resources; SVP Commercial; operated by Freeport-McMoRan Inc. to the limited assurance level VP Environment and Social (Lundin Mining 24% non-operating under other standards, such as Performance; VP Health, equity interest) ISAE 3000 (Revised) Assurance Safety and Risk; and VP Engagements, 2008: Type 2 to Technical Services. a moderate level of assurance. Apex’s Letter of Assurance can be found in the Appendix section of this report and on our website.

LUNDIN MINING ABOUT LUNDIN MINING 6 7 ABOUT LUNDIN MINING

OUR APPROACH TO RESPONSIBLE Our Responsible Mining Policy (RMP) describes our “A Statement From Business Leaders For Renewed Global MINING AND SUSTAINABILITY specific management commitments to responsible Cooperation” that seeks to highlight a sense of urgency for At Lundin Mining, our Mission and Values form the mining. These commitments are further developed and inclusive multilateralism, to demonstrate commitment from foundation of our sustainability approach. Our reputation supported by internal Company initiatives including: the global business community, and to call on governments as a good corporate citizen is central to our Mission to do their part. and Values and vital to the long-term economic success • Our Responsible Mining Management System (RMMS) and sustainability of our business. standard specifies our Company-wide requirements Our Mission and Values and Responsible Mining Policy for the management of health, safety, environment align with the UNGC Principles and SDGs, and we have OUR MISSION and community (HSEC) aspects of our business and undertaken programs at site and Corporate levels to advance We responsibly mine base metals vital to society, is aligned with the ISO 14001:2015 Environmental positive change in these priority areas. The results have creating meaningful value for our stakeholders. Management System standard and the OHSAS been reported annually in our UNGC Communication on 18001 Occupational Health and Safety Management Progress (COP), the most recent of which can be found in OUR VALUES standard. The RMMS will be amended in 2021 to align the Appendix section of this report. We have also included to both ISO 45001:2018 Occupational Health and a selection of case studies that further demonstrate our Safety Management Systems standard and the Mining overall commitment to promote progress within the SDGs. SAFETY Association of Canada’s (MAC) Toward Sustainable We hold health and safety as our Mining (TSM) standard; and Company-wide focused SDG mapping and a materiality top priority in everything we do. assessment will be conducted in 2021 to identify and prioritize • Our HSEC technical standards form the basis the sustainability issues that matter most to Lundin Mining for continual improvement and enhanced HSEC and its stakeholders, and these findings will be utilized on the performance and compliance. They support the journey to develop our broader Sustainability Strategy. RESPECT RMMS and establish the foundation for the continued We embrace diversity, inclusion, development of the Company’s Sustainability Strategy. Lundin Mining has been building towards the development open dialogue and collaboration. of its Sustainability Strategy incrementally since 2018. In Lundin Mining’s Board of Directors established an 2020, while continuing to implement key initiatives that HSEC Committee to provide oversight of health, safety, support our sustainability performance (described below), environmental and community matters. Consisting of we initiated planning for the next stage of our sustainability INTEGRITY three standing members, the HSEC Committee meets journey, which we envision as a cross-functional and We do what is right and at least quarterly. Informed by quarterly meetings collaborative design process, including the creation of a honour our commitments. and reports from key departments, the committee is multi-disciplinary sustainability working group, an executive responsible for reviewing the effectiveness of Company steering committee and a formal governance structure. HSEC governance and has routinely evaluated our Through this process, we will define, integrate and embed EXCELLENCE progress towards the 2019 RMMS audit program. In sustainability pillars, key themes, performance indicators We set high standards and 2020, sites developed action plans to address findings and long-term targets for Lundin Mining, and we will disclose challenge ourselves to deliver and recommendations of the first third-party audit. our progress on the strategy in future reports. superior performance. Our verification cycle is bi-annual and performance will be assessed in 2021. Key initiatives in 2020: • Human Rights Standard; In 2016, Lundin Mining joined the United Nations Global Compact (UNGC), promoted as the world’s • Human Rights Risk and Impact Assessments; We seek to create and foster enduring relationships largest corporate sustainability initiative to address the and meaningful shared value with our local communities • Diversity, Inclusion, Anti Racism priority economic, social, environmental and governance and our stakeholders through our Values of Safety, and Discrimination Committee; challenges. Through this initiative, we joined the global Respect, Integrity and Excellence. business community in a commitment to sustainable • Program to develop corporate strategy for responsible We are committed to operating in compliance with business practices, aligning our strategies with the sourcing and product stewardship; and UNGC’s Ten Principles on human rights, labour, the applicable laws and regulations in all jurisdictions • Commitment to the implementation of the environment and anti-corruption, the UNGC Sustainable where we operate, and we seek to continuously improve Global Industry Standard on Tailings Management. our sustainability performance. We strive to align our Development Goals (SDGs) and related 2030 SDG targets. policies and procedures with international best Our CEO reinforced this commitment in 2020, signing Progress on our 2020 initiatives is discussed in more practice and guidance for economic, safety, social detail throughout this report. and environmental performance and to meet our business objectives and targets. ABOUT LUNDIN MINING 8 9 ABOUT LUNDIN MINING

OUR COVID-19 PANDEMIC RESPONSE COVID-19 PANDEMIC COMMUNITY RESPONSE Highlights of responses to the COVID-19 pandemic in 2020 are provided in the table below. PANDEMIC PLAN IMPLEMENTATION The COVID-19 pandemic has impacted communities around AND MONITORING the world in different ways. Lundin Mining responded to Through the implementation of Lundin Mining’s Pandemic the impacts of the pandemic to address the immediate and Location COVID-19 responses longer-term needs of our local communities. Our Corporate Response Plan, we were able to deliver a timely and effective Amauta • Provided personal protective equipment to local health facilities, national police and the office made donations in the Greater Toronto Area to support response to protect the health and well-being of our workforce local municipality. and contractors during the emergence and outbreak of charities helping vulnerable populations recover from the the pandemic. The Company began actively monitoring pandemic’s impacts, including food banks, shelters, and Candelaria • In-kind donations of critical health equipment ($2.1 million) that benefited the entire region the outbreak in mid-January 2020 and implemented formal mental health and addiction organizations. Campaigns also by significantly enhancing the hospital’s capacity to treat ICU patients affected by COVID-19, controls and safeguards across the business in early-February. extended to support youth education programs and women’s enhanced hospital COVID-19 testing capacity, as well as three community mobile health units organizations. Our operations adapted their community- to help facilitate home visits and the transfer of medical supplies to people in high-risk groups. All operations and offices implemented travel restrictions, investment plans and diverted resources to support a variety as well as surveillance, monitoring and response plans, of urgent initiatives, with a focus on four main areas: health, • Mental Health Program including training and IT support with 120 remote consultations to reduce the risk of COVID-19 transmission. Response local businesses, humanitarian aid and education. conducted to date. activities included: Chapada • Pledged approximately $0.5 million to support public health and education infrastructure • workforce awareness training; during the pandemic: • Medical supplies • health screening of employees and contractors; (e.g., equipment, masks, >> A mechanical respirator, digital x-ray machine and cardiac monitor have been purchased enhanced laboratory for the community with additional donations to be made in 2021. • use of additional personal protective equipment and masks; capacity, mobile health >> Long Lasting Benefits agreements were made with municipalities including donations units and personal • installation of barriers in select work places; of services, equipment and goods, which will support health and education infrastructure. HEALTH protective equipment) • testing and contact tracing; • Infrastructure and services Corporate • Through our Matching Donations Program, personal employee donations and company matched • implementation of isolation and quarantine requirements (e.g., mental health support) contributions, the corporate office aided local charities and COVID-19 relief organizations in Toronto in line with health authority requirements; and surrounding neighbourhoods struggling with health, economic and social challenges, supporting food banks, mental health, women’s shelters, homeless support and educational initiatives. • prohibition of site visitors; • Monetary donations • increased sanitation regimens; Eagle • Eagle Emerging Entrepreneurs Fund allocated $60,000 in partnership with the Lundin Foundation (e.g., donating to charities to fund loans for Marquette-based businesses to support economic recovery. • shift modifications to support physical distancing; supporting vulnerable populations) • #StartUpSafe video campaign to raise awareness of COVID-19 safety measures, aired on local • changes to personnel transportation protocols; television showing actions taken by local schools. HUMANITARIAN • In-kind donations • modified work procedures; AID (e.g., food baskets) • Supported local economy and acknowledged employees by providing all employees with gift cards for local businesses. • changes to lunch and meal breaks; and Neves- Corvo • Contributed to the development of an online e-platform to support local economic recovery. • implementation of remote work for select • Entrepreneurship training administrative and technical staff. (e.g., virtual courses on • Supported the Health Unit of Beja in the development of a robot utilizing UVC technology marketing) to disinfect hospitals and health centres. More than 600 employees and contractors worked remotely from home during much of 2020. In addition, • Monetary and in-kind • Developed Project Julia, an initiative to provide IT supplies for local students, in addition to accommodations were made to allow at-risk members of the LOCAL donations (e.g., gift cards donations of school kits and masks to five neighbouring municipalities (Castro Verde, Almodóvar, workforce to remain at home. Photos in this report reflect BUSINESSES as local economic stimulus) Aljustrel, Ourique and Mértola). adherence to COVID-19 regulations in place at the time, with • Expanded the ongoing IT program for nursing homes to facilitate virtual visits. some representing the period prior to the pandemic. • Training (e.g., youth • Provided in-kind donations of laptops, computers and supported playground construction While there were some minimal COVID-19–related entrepreneurship programs) in five municipalities and villages in Castro Verde. disruptions to operations during the year, by having a well-established crisis management process and a Pandemic • School supplies and Zinkgruvan • RE:THINK Entrepreneurship Program focused on supporting the recovery growth of small businesses Response Plan, we were able to protect our workforce and infrastructure (e.g., laptops, in the Askersund region to recover from the economic impacts of the COVID-19 pandemic. school kits, playground) successfully mount a flexible and adaptable response to EDUCATION • Supported local economy and acknowledged employees by providing all employees with gift cards the pandemic without sustaining a material impact to the for local businesses. Company’s operations. More information on our COVID-19 readiness and response can be found on our website. While our COVID-19 response has helped with short-term recovery, we anticipate supporting longer-term resilience COVID-19 PANDEMIC SUPPLY CHAIN RESPONSE beginning in 2021 and will revisit our community-investment Lundin Mining established a dedicated task force in February 2020 to evaluate supply chain risks associated with the pandemic approaches to reflect this objective. Lundin Mining’s COVID-19 and to establish direct contact with high-risk suppliers to develop contingency plans, mitigating any major impacts and ensuring support to communities totalled $3.1 million in 2020, including the security of supply throughout the pandemic. corporate contributions. Additional pandemic response support was provided to our communities by our metal streaming partners Franco Nevada, Wheaton Precious Metals, Altius and Sandstorm. LUNDIN MINING 2020 SUSTAINABILITY REPORT 10 11 OUR VALUE CHAIN OUR OPERATIONS

Zinkgruvan, Lundin Mining Örebro County, Head Office, Sweden Toronto, Canada Eagle, Michigan, USA Neves-Corvo, Exploration Alentejo, Portugal

Chapada, Goiás, Brazil

Lima, Peru

Supply Chain Logistics Global Markets Candelaria, Atacama, Chile Our Operations Operations Copper Lead Head Office Zinc Gold Exploration Activities Nickel Silver Exploration Office

Mine Closure Candelaria, Atacama, Chile Chapada, Goiás, Brazil Eagle, Michigan, USA and Rehabilitation COPPER / GOLD / SILVER COPPER / GOLD NICKEL / COPPER

Interest: 80% Interest: 100% Interest: 100% Number of Employees: 1,484 Number of Employees: 798 Number of Employees: 196 GOVERNANCE HEALTH ECONOMIC OUR PEOPLE SOCIAL ENVIRONMENTAL Mine Type: Open pit and Mine Type: Open Pit Mine Type: Underground AND SAFETY PERFORMANCE PERFORMANCE Underground Current Mine Life: 32 years to 2052 Current Mine Life: 5 years to 2025 Current Mine Life: 24 years to 2044 (open pit and stockpiles) Annual tonnage: 0.7 mtpa (open pit and stockpiles) OUR OPERATIONS CHAPADA of an underground mine and two onsite Annual tonnage: 24.0 mtpa Expansion project: N/A CANDELARIA In July 2019, Lundin Mining acquired processing facilities for copper and zinc / Annual tonnage: 27.0 mtpa Expansion project: Expansion The Candelaria Mining Complex the Chapada mine, which comprises lead. Development of the Zinc Expansion Candelaria, 1.3 mtpa PAC scenarios under study comprises two adjacent copper three open pits providing copper / Project (ZEP), which at completion Expansion project: mining companies, Candelaria and gold ore to an onsite processing plant, will double the zinc production, was Potential underground mine Ojos del Salado, in the community of located in the northern Goiás State restarted in early-2021 following a production expansion Tierra Amarilla in the Atacama Region of Brazil. The port at Vitoria in Brazil nine-month period of suspension due of Chile, as well as a port facility and is operated under contract by third to COVID-19 in 2020. At Setúbal port desalination plant owned and operated parties, with oversight by Lundin Mining. in Portugal, Lundin Mining owns and Neves-Corvo, Alentejo, Zinkgruvan, Örebro County,  Exploration by Lundin Mining at Punta Padrones, operates the rail car unloading area, Portugal Sweden Activities EAGLE MINE associated warehouses and laboratory, located in the town of Caldera. COPPER / ZINC / LEAD / SILVER ZINC / LEAD / COPPER / SILVER Candelaria operates an open pit Eagle Mine is an underground nickel the conveyor belt and the ship loader. Candelaria, Chile (Copper, Gold)

and an underground mine providing and copper mine that was extended Neves-Corvo, Portugal underground to the Eagle East ZINKGRUVAN copper / gold ore to an onsite Interest: 100% Interest: 100% (Copper, Zinc) processing plant. Ojos del Salado deposit, from which the first ore was The Zinkgruvan mine consists of an Zinkgruvan, Sweden (Zinc, Copper) comprises two underground mines: produced in 2019. Ore from the mine underground operation that mines Number of Employees: 1,263 Number of Employees: 450 Santos and Alcaparrosa. The Santos is transported by truck approximately zinc, lead, silver and copper ores that Mine Type: Underground Mine Type: Underground Amauta, Peru (Copper) 105 km to a processing plant at the are delivered to onsite processing mine provides copper / gold ore to Current Mine Life: over 10 years Current Mine Life: over 10 years Chapada, Brazil (Copper) the nearby Pedro Aguirre Cerda Humboldt processing facility. facilities. The port at Otterbäcken, processing plant, and the remainder Sweden is operated under contract Annual tonnage: 2.6 mtpa copper, Annual tonnage: 1.4 mtpa Number of Employees: 16 NEVES-CORVO of ore extracted from these two mines by third parties, with oversight by 1.1 mtpa zinc Expansion project: Neves-Corvo is located southeast of is processed at the Candelaria plant. Lundin Mining. Expansion project: Zinc Expansion Dalby orebody production Lisbon, Portugal, in the western part Project (ZEP) of the Iberian Pyrite Belt and consists

LUNDIN MINING More information on our operations may be viewed at www.lundinmining.com 2020 SUSTAINABILITY REPORT OUR VALUE CHAIN 12 OUR VALUE CHAIN

Our corporate group has expanded to include a data management specialist to enhance and structure governance of our material data and improve the material requirements of our stakeholders. The business system improvements will establish solutions and embed an integrated e-commerce platform to adapt our current practices from tactical to strategic. Over three years, we will implement business system improvements within the procurement and inventory management functions by identifying and implementing system enablers that will streamline processes and increase deliverable efficiencies in our supply chain. In 2021, we will roll out our supplier business conduct expectations and enhanced due diligence reviews.

OUR CUSTOMERS AND MARKETS OUR APPROACH Our stakeholders are interested in understanding how our concentrate products are handled and transported, the measures that we take to reduce any potential risks associated with these materials, and contingency plans in the event of an incident causing spillage. Additionally, consumers are expressing increased interest in responsibly sourced and managed goods. Lundin Mining’s materials and product stewardship initiatives focus on being a preferred, responsible supplier through providing sustainably developed, quality products; technical and marketing support; and dependable, on-time delivery. Exploration at Zinkgruvan, Sweden* Sampling at Zinkgruvan, Sweden Our mineral concentrate products are transported in bulk by covered trucks OUR EXPLORATION GROUP OUR PERFORMANCE or rail cars directly to local smelter facilities for further processing; or to outbound ports for shipping, where additional concentrate management The strategy of the exploration group is to support Lundin Mining implemented a global framework to deliver control procedures include covered storage, truck washes and sweeper production growth, economic viability and sustainability a strategic roadmap of process improvements and trucks to reduce the potential for offsite emission of dust. Concentrates are of Lundin Mining by further developing and expanding governance at all operations. Standards were implemented mainly sold under multi-year sales contracts to a variety of smelter customers Mineral Resource and Mineral Reserve potential at existing to govern best practices and ensure fair bidding processes, in Europe, Asia and the Americas. The end-users of our products are global. operations to extend mine life, and to seek new business evaluations and awarding of contracts under competitive and discovery potential from advanced-stage exploration environments. We also established a Collaborative Sourcing We routinely evaluate potential health and safety impacts associated with projects. Our total exploration expense for 2020 was Strategy focused on synergies and volume-level benefits the production of concentrates and have developed comprehensive Safety $26 million, a decrease of approximately $35 million from across our operations to establish ongoing global framework Data Sheets (SDSs) in accordance with local, international and European 2019 levels. Most of the exploration activity for 2020 was agreements with strategic suppliers beneficial to multiple Union regulations. Shipments are accompanied by appropriate and current directed towards near-mine targets, which continued to operations. Supplier numbers vary across our operations documentation. For each shipment, SDSs with information on the health, be successful at Chapada, Candelaria and Zinkgruvan. but reflect a strong focus on prioritizing local and national safety and environmental hazards of our concentrates are provided to The field exploration program at our Peru site was halted suppliers; most are in the countries in which we operate. Lundin Mining’s personnel, the shippers and handlers of our products, in February 2020. There were no significant changes to our organization or and our customers. We continually evaluate potential risks associated with supply chain in 2020. OUR SUPPLY CHAIN the production and transportation of our concentrates and take steps OUR APPROACH to address and manage identified risks. Lundin Mining maintains a sharp focus on ensuring our contractors are appropriately equipped and trained, Lundin Mining relies on national and international networks Largest categories of suppliers and that they follow robust procedures that allow them to deliver our of suppliers for the provision of products and services across our operations in 2020 concentrates safely. required to support business activities at our mines. We Cement Explosives partner with the business to manage the supply of goods, Chemicals Fuel services and information required to promote safe and Construction Maintenance responsible mining. Aligned with the RMMS, we focus on Electrical Energy Mechanical increased service levels to customers, optimizing working Engineering Mining Contractors capital, and delivering on value-add initiatives to achieve Equipment and Parts Transportation success, while partnering with internal and external Exploration Drilling stakeholders to ensure Lundin Mining’s ethical standards are upheld in its pursuit of operational excellence. Guided by our Code of Conduct, Ethical Values and Anti-Corruption Policy, we expect all suppliers to hold the same standards. Due diligence measures are monitored through our vendor Onboarding and Certification program.

* Photograph taken before COVID-19 restrictions. Note: Some photographs in this report were taken before COVID-19 restrictions.

LUNDIN MINING OUR VALUE CHAIN 14 15 OUR VALUE CHAIN

Eagle Mine receives Lake Superior Community Partnership Distinguished Service Award

OUR PERFORMANCE • Neves-Corvo mine was awarded In 2020, we ensured updates were the Sustainable Transport Certificate performed as needed to the current by Medway for their contribution Mill Control Room at Chapada, Brazil SDS documentation, and training to reducing CO2 emissions using continued at our operations to build rail transportation. knowledge and capacity for future SDS OUR DATA PRIVACY best practices and global frameworks updates and to ensure accuracy. These • Our port facility in Chile, Punta AND CYBERSECURITY in addressing prevention, detection, activities were undertaken to stay Padrones, is preparing for Lundin Mining recognizes the increasing response and recovery functions current and compliant with constantly certification that will recognize importance of data privacy and for our data security management, changing international regulatory their process to calculate, monitor cybersecurity and in 2019 established all of which enhance the Company’s requirements and as required by and control port terminal GHG a corporate cybersecurity function cybersecurity program. the Company’s RMMS. emissions. Huella Program, a carbon-footprint initiative, is to safeguard against the increasing Our multi-layered cybersecurity Transportable Moisture Limit voluntary and supported by the enterprise risk posed by cybersecurity defense strategy has initiated and certifications were renewed Chilean Ministry of Environment. threats and to ensure compliance implemented projects to increase for material transported in bulk with data protection regulations in detection of and response to security originating from Candelaria and In 2020, the Company formed a the countries where we operate. risks; including additional security Zinkgruvan in 2020. The testing for cross-functional working group to We have adopted a proactive approach controls, user awareness programs, the Flow Moisture Point continued establish a corporate strategy for to mitigate cybersecurity risks and to and improved monitoring; with a focus for all products transported in bulk responsible sourcing and product ensure the resilience of our operations on the protection of the Company’s in accordance with guidelines, stewardship aligned with corporate with a business continuity plan and operational technology networks. providing continued confidence management systems and business a disaster recovery plan for each There were no major instances of for safe transport. strategy. In 2021, a gap analysis will compare the strategy to international of our operations. Our systems are data loss or other significant data In 2020, these operations were standards to ensure integration with subject to external and internal audits compromise during 2020. recognized for their performance our RMMS at all sites. and are fully integrated into our Risk In 2020, we developed global IT in safety and sustainability in Management Framework. and cyber security policies. We will transportation by their peers: Our Cybersecurity Strategic Plan, continue to advance our Company-wide • Eagle Mine received the launched in 2020, provides a cybersecurity program throughout 2021 Canadian Pacific (CP) Safe strategic roadmap to deploy process with the development of protocols and Handling award in 2020 for improvements and governance, at an executive cybersecurity dashboard. 2019, recognizing achievements all operations, that are aligned with in safe materials transport.

LUNDIN MINING 2020 SUSTAINABILITY REPORT DEFINING OUR REPORT CONTENT 16 17 DEFINING OUR REPORT CONTENT

Our 2020 Sustainability Report focuses on topics that are most material – of greatest interest – to our business and stakeholders. In our most recent materiality assessment (2017), we undertook an extensive internal and external ENVIRONMENT stakeholder consultation process, aligned with the GRI Standards framework and EU regulations. This process identified material sustainability topics in terms of the potential economic, environmental and societal impacts of Lundin Mining’s activities, based on their importance to stakeholders, as well as for the minerals sector in general. We report on these material topics in significant detail. This report also contains information on topics that were not formally assessed to be material, to present a more comprehensive view of our operations and activities. Our material topics have not changed since the last reporting period. A planned update to our materiality assessment in 2020 was delayed due to the COVID-19 pandemic; this will now be conducted in 2021 with the full integration of our Chapada operation.

As we continue to advance our efforts to integrate the Sustainable Development Goals (SDGs) into our business strategy, day-to-day operations and organizational culture, we have prioritized the SDGs that are most relevant to our material topics and will commence mapping community investments to align more closely with the SDGs in 2021. Tailings and Waste Water Stewardship Climate Change Reclamation and Closure Rock Management • Integrated watershed • GHG emissions • Mine closure plans OUR MATERIAL TOPICS AND KEY FOCUS SDGS • Tailings management management and • GHG reductions (including environmental sharing of water and social elements) • Waste rock management • Adaptation • Water availability • Long-term water HEALTH ECONOMIC PERFORMANCE OUR PEOPLE • Emergency and AND SAFETY crisis preparedness • Water withdrawal stewardship and recycling • Long-term land stewardship • Water quality (including • Social framework discharges and for closure unplanned releases) • Financial provisions

Health and Safety Economic Performance Local Economic Impact Labour Relations • Workplace health and • Economic value creation • Local procurement • Freedom of association safety management • Financial performance • Local employment and labour relations and performance • Child labour, forced labour • Emergency and • Employee engagement crisis preparedness

INDEPENDENT ASSURANCE OF OUR REPORT CONTENT Performance indicators As a commitment to transparent sustainability reporting, certain material disclosures have been independently assured • Safety – Total Recordable Injury Frequency rate (TRIF) SOCIAL PERFORMANCE since 2014. Each year, our assurance process includes a and Lost Time Injury Frequency rate (LTIF); representative site visit and an extensive data audit at one • Water – Total amount of water withdrawn from all of our mines, as well as a detailed audit of selected GRI data sources and total amount of water discharged; from all our operations used in the development of this • – Total energy consumption within report. Due to the COVID-19 outbreak, the assurance visit Energy Lundin Mining’s operations, including electricity planned for our Eagle Mine in the USA in March 2021 was and liquid and gaseous fuel consumption; conducted remotely based on site interviews, data review and virtual meetings with corporate staff. • Greenhouse Gas (GHG) Emissions – Scope 1 and Scope 2 (location-based and market-based) emissions; The 2020 independent assurance process was conducted for the following performance indicators for • Stakeholder Engagement – As it relates to the Stakeholder Indigenous Relations Community Development all Lundin Mining operations, according to GRI Standards. AA1000AS 2008 principles of inclusivity, materiality, Engagement • Engagement • Community investment responsiveness and impact; and • Community relations • Free prior and • Capacity building • Grievance Mechanism – Grievances filed during • Grievance mechanisms informed consent the year, including number, description, actions and feedback • Use of traditional knowledge taken and outcome. • Collaboration agreements

Independent Assurance Statement 2020 can be found in the Appendix section of this report.

LUNDIN MINING 2020 SUSTAINABILITY REPORT 18 19 2020 2021 PERFORMANCE SUSTAINABILITY HIGHLIGHTS GOALS

Our annual sustainability goals are aligned with our Responsible Mining Policy and support development and implementation of the corporate Sustainability Strategy.

THROUGH OUR CORPORATE AND SITE CRISIS MANAGEMENT TEAMS, HEALTH ECONOMIC GOVERNANCE OUR PEOPLE we worked proactively, following our Pandemic Response Plan and the AND SAFETY PERFORMANCE guidance of local health authorities and the World Health Organization, to monitor the evolving pandemic and put measures in place to ensure Continue Board renewal Zero fatalities. Monitor and optimize Continuous improvement the safety of our employees, contractors, communities and the Company. and maintain Board and shareholder returns while of talent programs executive officer positions Achieve a Total continuing to maintain globally through the comprising at least Recordable Injury balance sheet strength implementation of 30% women. Frequency (TRIF) rate of to act on compelling Success Factors. SUPPORT PROGRAMS AND Formal adoption of the 0.55 or better. growth opportunities. POSITIVE FEEDBACK FROM Global Industry Standard Develop an executive Review diversity and COMMUNITIES ACROSS SITES cybersecurity dashboard. Continue to manage inclusion action plans. on Tailings Management. Continue to manage the DUE TO COVID-19 RESPONSE. impacts of the COVID-19 efficient, effective, operating Develop gap assessment pandemic through expenditures ensuring Increase female and site-level action effective prevention and more productive operations representation with a focus plans to support the control measures. and achievement of on site and Corporate Evaluated and selected a standard OUR HUMAN RIGHTS implementation of GISTM. financial returns. leadership positions. methodology for monitoring STANDARD WAS APPROVED IN 2020. Execute Neves-Corvo’s community perception at our sites. ZEP Project as planned while continuing to optimize sustaining capital expenditures. NO LEVEL 3 We carried out global diversity and inclusion OR ABOVE SOCIAL OUR VALUE training and created the Diversity, Inclusion, ENVIRONMENT ENVIRONMENTAL Anti Racism and Discrimination Committee, PERFORMANCE CHAIN INCIDENTS AND a multi-disciplinary volunteer working group A 13% DECREASE Zero Level 3 or above Develop a five-year Development of IN LEVEL 2 established to further Lundin Mining’s diversity environmental incidents. corporate social Responsible Sourcing INCIDENTS. and inclusion agenda. performance strategy and Product Stewardship Integrate climate-related as part of the corporate program. risks and opportunities into Sustainability Strategy. our Company-wide Risk Roll out supplier business Management Framework. Implement the Social conduct expectations License to Operate Index and enhanced due Develop corporate water at all sites to enhance our diligence reviews. report internally, providing understanding of the level a holistic view of Company of trust and acceptance water stewardship. towards our operations.

Assess dust suppression Roll out the Human Rights technology, including Standard and train all thorough quantitative Company leaders and key assessment and trial studies. operational staff. 20 21 OUR PERFORMANCE 2020 GOAL RESULT HIGHLIGHTS OUR PEOPLE

AGAINST 2020 GOALS Roll out a global awareness Our first learning initiative on diversity and inclusion (“Fundamentals” training program on diversity and “Unconscious Bias”) was launched in October 2020. The initiative and inclusion. was continued at our operations in early-2021. Our annual sustainability goals are aligned with our Responsible Mining Policy and help us achieve continuous performance improvement in priority areas. In establishing our goals, we consider the results of internal risk Implement engagement Engagement survey action plans were implemented. assessments, stakeholder feedback monitoring, and continuous improvement of existing processes and procedures. survey action plans.

2020 GOAL RESULT HIGHLIGHTS Incorporate the competency The competency model was fine-tuned in 2020 for its launch in model into assessment early-2021, initially through individual development planning and GOVERNANCE and development. subsequent expansion to other talent management processes.

Achieve approval of A Human Rights Standard was approved in 2020 and supplements Implement job architecture Job architecture was implemented for Corporate, affecting compensation Human Rights Policy. the Company’s pre-existing public commitment to support human rights for corporate and applicable as well as succession planning purposes. as provided in our Code of Conduct. site positions.

Roll out the updated risk This was completed as part of a refresh and roll-out the updated ENVIRONMENT likelihood and impact Risk Statement and Risk Management Framework in October 2020. definitions across the business Evaluate climate change risk Lundin Mining provided training on climate vulnerability at all as part of the quarterly risk to operations and communities operations to assess climate adaptation and mitigation planning that review and analysis process. and develop initiatives or will be used to assess risks and opportunities related to climate change action plan to address. adaptation and mitigation. Continue to improve the This is part of a continual improvement process and included an quality of the risk management increase to the quantity and quality of risk follow-up with site-based risk No Level 3 or above There were no Level 3 or above incidents in 2020. process and increase the champions, operational managing directors, and functional risk owners. environmental incidents. focus on the effectiveness of risk mitigation measures. Finalize a corporate Development of the Sustainability Strategy was advanced. We Sustainability Strategy established a program to define, integrate and embed sustainability HEALTH AND SAFETY to supplement and pillars, key themes and performance indicators, and long-term targets align with long-term for Lundin Mining. Zero fatalities. A fall of ground incident occurred underground at the Neves-Corvo mine environmental strategy. in Portugal on September 25, 2020, resulting in an employee fatality. SOCIAL PERFORMANCE Achieve a Total Recordable Lundin Mining achieved a Company best-ever TRIF of 0.55. Injury Frequency (TRIF) rate Advance implementation of Chapada developed and adopted its plan in 2020. All sites advanced of 0.60 or better. the site-level 5-year social implementation of their plans in 2020, adapting their actions to respond performance plans and develop to COVID-19 priorities, including diverting and focusing community ECONOMIC PERFORMANCE a 5-year strategic social investments and modifying engagement approaches to ensure the performance plan for Chapada. health and safety of employees and communities. Continue to maintain balance Our strong balance sheet allowed us to repay a significant portion of our sheet strength and flexibility debt and invest $431 million in capital expenditures at our operations. Implement our Human Rights Lundin Mining launched its Human Rights Standard in 2020. Eagle, to act on compelling We generated operating cash flow of $566 million and maintained Policy and act to address the Zinkgruvan and Neves-Corvo developed and began implementing growth opportunities. financial flexibility to pursue further growth opportunities. opportunities for improvement human rights action plans to address the findings identified in their from site-level HRRIA findings. respective HRRIAs. Manage efficient, effective Aided by higher by-product metal prices in the second half of the year, operating expenditures all operations met cash costs guidance. While the Company experienced Develop a corporate Chapada continued consistent monitoring of community perceptions ensuring more productive production setbacks in the fourth quarter of 2020 at its Candelaria approach and methodology using the Social License to Operate Index (SLO Index) methodology. We operations and achievement and Chapada operations, we responded decisively with clear action for the routine monitoring selected this methodology to routinely monitor community perceptions, of financial returns. plans to overcome these challenges. of community perception social acceptance and trust with our local communities at all sites. at each site. Execute Neves-Corvo’s ZEP All operations met guidance for sustaining capital expenditures and as planned while optimizing Candelaria Mill Optimisation Project (CMOP) was completed during the year. sustaining capital expenditures. Due to COVID-19–related delays, the execution of ZEP has been extended. Achieved Partially Achieved Not Achieved GOVERNANCE

OUR APPROACH Aligned with our Mission and Values, Lundin Mining is committed to maintaining high standards of accountability, corporate governance, ethics and honesty in all aspects of our business by enacting robust corporate governance processes and ensuring our employees understand, and consistently meet, the standards formalized in the Company’s systems and policies. We foster an inclusive and diverse workplace that does not tolerate harassment or discrimination based on gender, age, race, national origin, marital status, sexual orientation, religious beliefs, disability IN THIS SECTION or any other personal characteristics protected by applicable law. This commitment to all Our Approach 23 our employees contributes to making our Our Governance 24 Company a more successful business and Our Performance 24 an employer of choice. Human Rights 26

Corporate Headquarters, Toronto, Canada celebrates International Women’s Day (March 8, 2020) GOVERNANCE 24 25 GOVERNANCE

In June 2020, the Company formally established a Diversity, Inclusion, Anti Racism and Discrimination Committee BOARD OF DIRECTORS (DIARD) at the Corporate office to further the Company’s diversity and inclusion agenda that aims to create and foster a workplace that reflects and contributes to the diverse, global communities in which we do business, and to provide recommendations addressing institutional and systemic STANDING BOARD COMMITTEES inequalities and biases that may exist. In collaboration with the Human Resources department, the DIARD Committee is tasked with promoting resources and forums that enable important and, at times, uncomfortable conversations and

CORPORATE HEALTH, SAFETY, recommending concrete actions in support of its mandate, HUMAN RESOURCES / AUDIT GOVERNANCE AND ENVIRONMENT COMPENSATION all within the framework of the Company’s core corporate COMMITTEE NOMINATING AND COMMUNITY COMMITTEE COMMITTEE COMMITTEE Values of Safety, Respect, Integrity and Excellence. ANTI-CORRUPTION AND ANTI-BRIBERY In 2020, there were no known incidents of corruption. In alignment with UNGC Principle Ten: Anti-Corruption, Governance at Lundin Mining* Lundin Mining has a zero-tolerance policy for bribery and OUR GOVERNANCE WHISTLEBLOWER POLICY corruption by directors, officers, employees, consultants The Board of Directors (the Board) is primarily responsible The Board, through the Audit Committee and the Corporate and contractors of the Company, with even the appearance In this respect, the Company has implemented a Risk for the oversight of management, as well as Lundin Mining’s Governance and Nominating Committee (CGNC), has enacted of impropriety deemed unacceptable. We conduct internal Management Statement, Risk Management Framework, strategy and business affairs. The Board ensures that a Whistleblower Policy to establish a protocol for the receipt, audits of all our business units and have robust internal Responsible Mining Policy, and Responsible Mining appropriate governance mechanisms are in place to retention and treatment by the Company and its subsidiaries financial controls and processes in place for monitoring Management System standard, establishing our approach monitor the Company’s development, and that relevant of concerns reported from its directors, officers, employees, and oversight concerning financial aspects of operations. and processes for risk governance, risk identification, information and reporting are provided, including progress consultants and contractors regarding any known or The Company’s internal control over financial reporting is risk management and responsible mining. The approach and continuous improvement efforts concerning its safety, suspected accounting, financial or auditing irregularities or designed to provide reasonable assurance regarding the and related processes consider a broad spectrum of environmental, social and economic performance. The any other known or suspected violations of the Company’s reliability of financial reporting and preparation of financial stakeholders and potential internal and external risk Board has nine members (67% male and 33% female), Code of Conduct. Individuals governed by the Whistleblower statements for external purposes. exposures and are used to identify and leverage potential eight of whom are independent, non-executive directors. Policy are required to report such improper conduct on a up-side, risk-related opportunities. At the site and corporate The average age of the Board is 58 and the average confidential and, if preferred, anonymous basis that includes RISK ASSESSMENT AND MANAGEMENT levels, we conduct risk assessments to evaluate operational, tenure is eight years. submitting a report via the Company’s independently hosted Lundin Mining believes that an enterprise-wide approach health and safety, environmental, social, business, finance, online and telephone reporting service or by sending a letter to risk management allows the Company to successfully BUSINESS ETHICS and reputational risks and opportunities, among others. to the applicable committee Chair. The Company has a strict assess and mitigate risks. The Company maintains a Quarterly reviews are conducted by functional risk owners, The Company, its subsidiaries and their respective directors, non-retaliation policy to ensure that those who report in framework that ensures effective and efficient identification, site-based risk champions, and senior leaders at the officers, employees, consultants and contractors are expected good faith are protected from reprisal. management and mitigation of risk in a manner that enterprise, functional and site levels. to conduct business activities ethically and transparently creates the greatest value and integrates consideration OUR PERFORMANCE by following our Code of Conduct, Ethical Values and Anti- of risk into key decision-making processes. This system DIVERSITY AND INCLUSION POLICY Corruption Policy (the Code) and applicable laws. The Code, framework, based on the ISO 31000:2018 Risk Management available in all our operational languages, articulates definitions Lundin Mining believes that its workforce should reflect standard, supports conformance to UNGC Principal Seven: and expectations related to ethical business conduct. the diversity of the countries and communities in which Environment and includes the development, implementation Measures are in place to support key employee reviews it operates. The Company believes that diversity promotes and monitoring of key controls. It provides for periodic of the Code annually and during on-hire induction. the inclusion of different perspectives and ideas, encourages risk reporting and assurance to the executive team and independent thinking, and ensures that the Company relevant committees of the Board. The Disclosure and Confidentiality Policy, revised and benefits from all available talent. It also values the benefits updated in 2020, establishes procedures that regulate the that diversity can bring to the Board, members of senior disclosure of information about Lundin Mining to the public management, and employees of the Company and its and ensures that when information has not been publicly subsidiaries. The Company adopted and updated Diversity disclosed it remains confidential. Employees have certain and Inclusion Policy in March 2020, which was amended responsibilities under the provincial securities laws of Canada in February 2021 to further those beliefs. The amended and applicable securities laws and regulatory policies in policy reflects the Company’s ongoing commitment to Sweden regarding inside information and the trading of the promote diversity at the highest levels of Lundin Mining and Company’s securities. Employees have an obligation to the set the “tone at the top,” to demonstrate the Company’s Company with respect to material non-public information, commitment to diversity at all levels within the organization, and the Blackout Period Policy explains the obligations that and to foster an inclusive culture based on merit, free of employees have under the law and to the Company. conscious or unconscious bias. * Photograph taken before COVID-19 restrictions.

LUNDIN MINING 2020 SUSTAINABILITY REPORT GOVERNANCE 26 27 GOVERNANCE

MEMBERSHIPS OUR PERFORMANCE improvements. Sites have exhibited full AND ASSOCIATIONS Our Human Rights Standard was commitment to implementing these Involvement with memberships approved by our CEO in 2020 and action plans and completed over and industry associations enables includes our commitment and one-third of actions by the end of 2020. Lundin Mining to stay current regarding approach to human rights. The matters of public policy, emerging sector standard applies to all sites and will Our HRRIAs incorporate the frameworks and sustainability trends, regulatory be rolled out across the Company of the United Nations Guiding Principles, updates, stakeholder interests, and the as an important component of our Voluntary Principles on Security and sharing of industry best practices. In RMMS in 2021. In 2019, we completed Human Rights, United Nations Global 2020, Lundin Mining was a member Human Rights Risk and Impact Compact and our codes and standards of, or participant in, associations listed Assessments (HRRIAs) at Eagle, reflecting international best practice. at https://www.lundinmining.com/ Zinkgruvan, Neves-Corvo and our Findings included positive contributions responsible-mining/lundin- Amauta exploration property in Peru. to the enjoyment of human rights memberships-and-associations/ The assessments, conducted by a team and related SDGs in the areas of of independent experts, were broad engagement with local communities HUMAN RIGHTS in scope, covering areas that included (right to information, consultation and OUR APPROACH participation), positive impacts on local Training at Candelaria, Chile impacted communities, environmental Respect for human rights is core to impacts, security arrangements, employment (right to an adequate Lundin Mining. Our approach to human worker arrangements, procurement standard of living), and confirmation Based on these reviews, a quarterly EXTERNAL COMMITMENTS rights is supported by the conviction and supply chain management, and of health and safety as priorities for Chapada, Brazil celebrates 1 year corporate risk report and listing Lundin Mining’s RMP and RMMS that our activities can and should business relationships (e.g., business employees and contractors (right to with Lundin Mining of material enterprise risks are are aligned with the Government of have a positive impact on the lives, partners and host governments). safe and healthy working conditions), prepared under the guidance of Canada’s Enhanced Corporate Social livelihoods and rights of individuals and Although reviewed sites met local among others. Examples of salient communities. We acknowledge that issues included grievance mechanisms, the Vice President, Health, Safety Responsibility Strategy and other requirements regarding human values constructive dialogue, has our operations could potentially cause, non-discrimination, equal opportunities and Risk, for review by an Executive voluntary national and international rights, several opportunities for actively engaged with the Chilean NCP contribute to, or be directly linked to and fair treatment. Risk Committee (ERC) comprising initiatives to which we commit, improvements were identified to provide information and has advised members of the senior leadership including the following: negative human rights impacts. We when comparing local performance Any form of discrimination in the that it will complement its existing public team. A formal quarterly risk report seek to prevent and mitigate adverse and stakeholder perception with • Organization for Economic workplace is deemed unacceptable by consultations in connection with the EIA is prepared on behalf of the ERC for impacts and to contribute to the international standards for systems Cooperation and Development Lundin Mining. Human rights-related 2040 with an enhanced, comprehensive, submission and review by the HSEC promotion of broader societal respect and effective implementation. grievances were filed in 2020 through community and stakeholder engagement and Audit Committee with follow-on Guidelines for Multi-National for, and protection of, human rights. the Company’s grievance mechanism process with a specific focus reporting and discussion with the Enterprises; In 2020, Eagle, Zinkgruvan and Lundin Mining is committed to, and or whistleblower reporting hotline. In on the affected community. Board. The Board and its committees • United Nations Guiding Principles Neves-Corvo developed and began always strives to align our actions with, each case, management investigated are responsible for overseeing on Business and Human Rights; implementing human rights action the matter and, where the claim was enterprise-level effectiveness of the the United Nations Guiding Principles plans to address the opportunities • United Nations Global Compact; on Business and Human Rights, verified, appropriate management Company’s risk management program, for improvement identified in their OUR NEXT STEPS the United Nations Global Compact, actions were taken. and for knowing and understanding • Voluntary Principles on Security respective HRRIAs. and the Organization for Economic the details of the principal risks of and Human Rights; In 2020, Candelaria engaged in extensive • Train Company leaders the business. As part of its oversight Cooperation and Development dialogue with the Chilean National and key operational staff responsibility, the Board ensures that • International Finance Corporation Guidelines for Multi-National Performance Standards on Social 37% Contact Point (NCP) regarding a 2019 on the Human Rights the Company maintains a proper Enterprises. Our Human Rights Actions achieved in 2020 complaint filed on behalf of a group Standard in 2021. balance between risks incurred and and Environmental Sustainability; Standard establishes principles and actions for how we identify, prevent, of people living in the local area who potential return to shareholders, • Global Reporting Initiative; • Aim to complete 80% of mitigate, track and report on human alleged a breach of the OECD Guidelines ensures that risk management Chapada’s assessment began in 2020 identified HRRIA actions • Prospectors and Developers rights risks and issues associated on human rights and associated programs are in place and effective, but was suspended due to the COVID-19 by the end of 2021. Association of Canada e3 Plus; with our projects and operations. environmental damage. Factors cited including internal control frameworks pandemic; it is expected to be finalized We have integrated the Voluntary largely relate to dust, blasting and • Aim to complete HRRIAs and insurance and loss prevention • Global International Standard in 2021. Candelaria’s assessment Principles on Security and Human impacts or potential impacts associated at Chapada in 2021 and at efforts, and ensures implementation for Tailings Management; commenced in 2021 and is expected Rights into our security-related with waste rock piles. The Company Candelaria mid-2022. of policies and standards for monitoring to be finalized in 2022. Actions • CDP Forests Program; and policies and procedures. operates in accordance with all permits and managing risks. A detailed enterprise relate to improved communications, and legal requirements and therefore • Develop associated human risk review is also performed annually • CDP Climate Change, which is aligned altered procedures and HSEC-related disputes the allegations. Candelaria rights action plans in 2022. as part of the Board’s approval of the with the voluntary Task Force on Company’s Annual Information Form. Climate-related Financial Disclosures (TCFD) recommendations.

LUNDIN MINING 2020 SUSTAINABILITY REPORT HEALTH AND SAFETY

MATERIALITY Health and safety is a material topic for Lundin Mining and Safety is the first Value of the Company. We hold safety as our top priority in everything that we do, and our fundamental objective is Zero Harm – the protection of the health, safety and well-being of our employees and contractors. We also actively work to promote and positively influence the health, safety and well-being of our IN THIS SECTION local communities, our vendors and suppliers, and other stakeholders. Materiality 29 OUR APPROACH Our Approach 29 At Lundin Mining, we are committed to Zero Harm Our Performance 32 and to providing our workforce with a safe, healthy Industrial Hygiene 36 and productive work environment wherever we and Occupational Health operate. The Values of Safety, Respect, Integrity and Excellence established the foundation for our Crisis Management Planning 38 approach to health and safety. We believe that every and Emergency Preparedness injury is preventable and, as part of our commitment to Zero Harm, our goal is to send everyone home healthy, safe and well each and every day. HEALTH AND SAFETY 30 31 HEALTH AND SAFETY

HEALTH AND SAFETY MANAGEMENT SYSTEMS Lundin Mining’s RMP and RMMS set the MENTAL HEALTH AWARENESS context for the Company’s health and safety management system and provide a foundation for meeting compliance, Building on the success of our Toronto office 2019 mental health industry best practice, and voluntary awareness campaign, we expanded the scope of the Canadian requirements in all jurisdictions where Mental Health Association’s Not Myself Today® program to our we operate. RMMS requirements apply operations, effectively bringing the conversation about mental to employees and contractors working health to our global workforce. Throughout the months of May at all Lundin Mining operations. The and June, we shared a variety of informational resources to help RMMS standard is aligned to ISO 14001 increase our workforce’s knowledge and understanding of mental and OHSAS 18001 and is being health and well-being and the importance of extending empathy amended in 2021 to align to ISO 45001 towards those living with mental illness. As part of this effort, and the Mining Association of Canada’s we also provided several tools that could be used to assist our TSM standard. Two operations, employees and contractors with addressing stress, understanding, Candelaria and Chapada, are certified and working with emotions, talking openly to reduce stigma and to OHSAS 18001 and will be recertified mental health barriers, and building a positive work culture. Roll-out of new uniforms at Chapada, Brazil Chapada, Brazil celebrates 1 year at Lundin Mining under ISO 45001 in 2021. Our employees were also able to send digital “kindness cards” to Key aspects of the management each other via email expressing their gratitude and appreciation Even within the constraints of By continually striving to improve system include: for their colleagues. To show solidarity and support to the COVID-19, our workforce remained the health and safety of our work broader workforce, our global leadership team actively pledged • workplace hazard identification; HEALTH AND SAFETY actively involved in health and safety practices, we can have a direct and and demonstrated their support for mental health awareness. throughout 2020 through participating positive effect on our stakeholders, COMMITTEES • reporting and control requirements; Lundin Mining is proud to be one of the more than 450 companies in working groups, pandemic crisis including our employees, contractors, and organizations across Canada that have taken part in the • qualitative and quantitative management teams, special projects, suppliers, and those who live and work Not Myself Today® campaign since 2013. Each of our operations has business improvement initiatives, in the communities where we operate. risk assessments; health and safety committees, We work to set the example when it an active health and safety • life-saving rules; committee with worker and and through engagement with comes to health and safety, and we management representation. designated employee health and share safe work practices and any • fatality prevention requirements The committees generally safety representatives. Training is lessons learned with those impacted called High Consequence Protocols; integral to our approach to managing and all who are interested. meet on a quarterly or • leadership training; monthly basis and provide health and safety. We continued a formal avenue for the to hold regular safety meetings to • fatality prevention training; review key hazards, risks and required workforce to address issues • safe work procedures safeguards such as new-worker and concerns, and to make and permit systems; suggestions to improve the inductions, emergency response and Company’s health and safety evacuation drills, crisis management • safety interactions; training, and basic hazard awareness program. Portions of our • safe work observations; workforce are also represented and task familiarization continued, • incident reporting and investigation; by collective employee labour several other planned 2020 training initiatives requiring in-person agreements that contain • root cause analysis; and specific health and safety training had to be deferred. We increased awareness, communications • sharing of lessons learned provisions and protections. campaigns, and training for our during monthly and quarterly employees and contractors to support teleconference meetings. COVID-19 education and prevention awareness, both on site and in our local communities.

LUNDIN MINING 2020 SUSTAINABILITY REPORT HEALTH AND SAFETY 32 33 HEALTH AND SAFETY

We measure our health and safety performance using a In 2020, there were 58 recordable Safety Performance Comparison combination of leading and lagging indicators and associated injuries including the fatality at (Includes both employees and contractors) 2020 2019 2018 performance targets established during the annual business Neves-Corvo mine. We achieved planning process. These are published in corporate and site several best-ever results, including Total Recordable Injury Frequency rate 0.55 0.66 0.67 annual health, safety and risk action plans that are shared a TRIF rate of 0.55 (against a target (TRIF)1 across the business, including with contractors, and are of 0.60) and a LTIF rate of 0.26. Lundin Mining TRIF target 0.60 0.60 0.70 posted on the Company’s internal site. Select health and While these achievements were Lost Time Injury Frequency rate (LTIF)2 0.26 0.40 0.35 safety leading indicators are used to help identify strengths overshadowed by the underground Lost Workdays3 7,247 1,612 1,094 and weaknesses in our systems and to highlight areas where fatality at Neves-Corvo, our overall Lost Time Severity Rate (SR)4 69 14 12 we need to address potential issues to reduce the risk of safety result was realized during a 5 an incident, injury or illness. very demanding year that included Fatalities 1 0 0 6 operational challenges, labour Fatality Rate 0.01 0.00 0.00 Total hours worked 20,995,989 22,723,989 19,019,632 Leading Indicators: negotiations, major project activities at Candelaria and Neves-Corvo, and the significant and disruptive changes 1. Total Recordable Injury Frequency rate (TRIF) is calculated as (total number of recordable injuries 36,000+ to work practices, workplaces and [including fatalities, lost-time injuries, restricted work and medical treatment injuries] x 200,000) / total Reported in 2020 work schedules that were necessary hours worked. to protect our workforce from the 2. Lost Time Injury Frequency rate (LTIF) is calculated as (total lost-time injuries x 200,000) / total hours worked. spread of COVID-19. 3. 6,000 additional lost workdays assessed due to September 25, 2020 fatality at Neves-Corvo Our primary lagging indicator for measuring health and safety mine in Portugal. performance and benchmarking against our peers is the There were 27 lost-time injuries in 4. Lost Time Severity Rate (SR) is calculated as (total lost workdays x 200,000) / total hours worked. Total Recordable Injury Frequency (TRIF) rate. Other lagging 2020 with a resulting LTIF rate of 5. September 25, 2020 fatality underground at Neves-Corvo mine in Portugal. indicators used include All Injury Frequency (AIF) rate, Lost 0.26. In line with industry practice, 6. Fatality Rate is calculated as (total number of fatalities x 200,000) / total hours worked. Safety measures at Candelaria, Chile Time Injury Frequency (LTIF) rate, Medical Aid Frequency an assessment of 6,000 lost workdays (MAF) rate and Lost Time Severity Rate (SR), with all rates was applied to the fatality incident, calculated based on a 200,000-hour formula. We follow the which resulted in a total of 7,247 lost Lundin Mining – TRIF / LTIF Rate Trends HEALTH AND SAFETY REPORTING US OSHA definition of medical treatment for classification workdays and a Severity Rate (SR) of Health and safety performance results are reported to of recordable injuries at all operations, and our reporting 69 for 2020. There were 78 first-aid 1.80 our corporate senior leadership team, are shared across processes are aligned with the International Council on Mining injuries across the Company in 1.60 our operations monthly, and are reviewed quarterly & Metals (ICMM) Health and Safety Performance Indicators 2020, compared to 133 in 2019. 1.40 with the Board’s HSEC Committee. Incidents that result manual and GRI 2018 Standard disclosure requirements. Lundin Mining’s AIF rate for 2020 was 1.20 in a reportable injury, and all high-potential, non-injury 1.30, compared to an objective of 1.90. 1.00 incidents, are reported, analyzed and shared across the 0.86 0.80 Company weekly to emphasize key learnings to prevent Work hours were down 8% in 2020 0.67 0.66 0.60 0.64 recurrence. Consolidated health and safety performance compared to 2019 due to COVID-19– 0.55 0.56 0.55 Despite our Zero Harm objective and our goal 0.39 0.40 0.40 0.35 data are frequently evaluated to identify trends and to related impacts, completion of 0.30 of zero workplace fatalities, a tragic workplace 0.26 develop focused incident and injury prevention strategies. 0.20 fatality occurred in an underground area of the project work at Candelaria, and Health and safety performance statistics, incident details, 0.00 Neves-Corvo mine in Portugal when a supervisory the suspension of ZEP-related summary investigation findings, and lessons learned are employee was struck by a fall of ground on work at Neves-Corvo. 2015 2016 2017 2018 2019 2020 accessible to employees, contractors and visitors through September 25. The incident was investigated by * site postings, site television broadcasts, safety meetings More GRI data are provided for employees Portuguese authorities, Lundin Mining, and an and contractors separately in Appendix A. 2021 TRIF Target or when requested. Lundin Mining TRIF Lundin Mining LTIF independent third-party investigator. Additional OUR PERFORMANCE safeguards have been implemented across the While much of our 2020 health and safety effort was Company based on the findings and lessons 2020 HEALTH AND SAFETY ACCOMPLISHMENTS focused on COVID-19 prevention and response, we also learned from the investigation. This was our first worked to materially improve our hazard identification fatality since June 2015. and elimination processes, enhance personal safety Lundin Mining Lundin Mining Lundin Mining total Lundin Mining Eagle Mine Zinkgruvan accountability across all levels of the organization, best-ever best-ever recordable injury lost-time injury best-ever best-ever reduce long-term occupational health risk exposures, TRIF of 0.55 LTIF of 0.26 reduction of 23% reduction of 41% TRIF of 0.48 TRIF of 1.29 and improve our fatality prevention efforts.

LUNDIN MINING 2020 SUSTAINABILITY REPORT 34 HEALTH AND SAFETY

2020 SAFETY AT A GLANCE 599 32,140 2,094 REPORTED WORKPLACE SAFETY PLANNED WORKPLACE NEAR MISSES OBSERVATIONS INSPECTIONS

Maintenance shutdown at Eagle Mine, Michigan, USA

WORKING TOGETHER Workplace (AND VIRTUALLY) 1 Fatality 7,247 20,995,989 HOURS WORKED KEY HEALTH AND SAFETY HAZARDS Teamwork, good leadership, Lost Work Days EMPLOYEES + CONTRACTORS employee involvement and a personal * Includes 6,000 fatality commitment to health and safety Lost Time Injuries assessment days Work related health and safety hazards are identified as part of are critical to achieving Zero Harm. 27 (Includes fatality) Lundin Mining’s risk management process. After a review of 2020 We continue to build on efforts first incident reporting experience, the top hazards identified during introduced in 2014 to establish and 2020 included: sustain an interdependent safety LTIF Rate 69 ~10,500 p/200,000 hours worked Lost Time Severity FULL TIME EQUIVALENT 1. Ground control and falls of ground (underground) culture across Lundin Mining. While 0.26 the COVID-19 outbreak delayed Rate [SR] (FTE) WORKERS 2. Mobile equipment operation (including light vehicles) several planned health, safety and p/200,000 hours worked (Based on reported hours worked) * Includes fatality assessment 3. Heavy maintenance work (fixed and mobile equipment) leadership initiatives during 2020, Total Recordable 58 Injuries 4. Rotating machinery we will restart a few Visible Felt Leadership activities in 2021. 5. Cranes, lifting and rigging Zero Harm High Potential 6. Slips, trips and falls to the same level TRIF Rate 15 Weeks 34 Non-Recordable 0.55 p/200,000 hours worked Injury Incidents 7. Energy isolation and lockout tagout 8. Fires (underground and surface) Top 5 Types of Incidents Resulting in Recordable Injuries Top 5 Reportable Incidents by Hazard Type (Recordable Injuries + High Potential Non-Recordable Injury Incidents)

20 Struck by an Object 15 Ground Control (underground) 17 Caught by or Between Something 12 12 Light / Medium Vehicle Operation Struck Against 10 Heavy Equipment Operation 10 Slip, Trip or Fall (to same level) 6 Heavy Maintenance (fixed or mobile) Overexertion / Body Reaction Rotating Machinery and Guarding 3 3 n=53/58 (91% of all recordable injuries) n=55/92 (60% of all reportable incidents)

LUNDIN MINING HEALTH AND SAFETY 36 37 HEALTH AND SAFETY

We operate professionally staffed onsite occupational Occupational Health medical facilities at Neves-Corvo, Candelaria and Chapada. During 2020, many of our occupational health professionals provided critical Zinkgruvan is supported by part-time medical professionals support in the development and implementation of awareness and prevention who conduct employee assessments and evaluations, while campaigns to stem the spread of COVID-19 in the workplace and played crucial Eagle Mine and our Corporate offices utilize outside medical roles to support COVID-19 testing, infectious disease vector identification, service providers and community clinics. All our employees and contact tracing. have access to Employee and Family Assistance Programs and confidential counselling services. Hierarchy of Controls Most effective

OUR PERFORMANCE n Industrial Hygiene o Physically remove the hazard

During 2020, we completed a multi-year lead assessment inati m study at Zinkgruvan and Neves-Corvo where we 1 Eli measured occupational dust exposures and surface lead contamination. It included a review of biological monitoring results. Our objectives were to improve the airborne-lead Replace the hazard monitoring approach and to enhance our exposure controls

in order to reduce the risk of lead exposure, thus protecting 2 Substitution the long-term health of the workforce through reduction Chapada, Brazil celebrates 1 year with Lundin Mining of the measured lead in blood to levels below the industry best-practice consensus standards by 2022. Isolate people from the hazard

3 Industrial Hygiene Sampling Plan 2020 Engineering Controls

Planned Samples Taken Additional Total Samples Samples Against Plan Samples Taken Taken Change the way people work Underground at Neves-Corvo, Portugal 1,037 1,218 1,409 2,627 4 Administrative Controls INDUSTRIAL HYGIENE AND OCCUPATIONAL HEALTH While COVID-19 restrictions impacted our ability to conduct Protect the worker with OUR APPROACH personal sampling in some jurisdictions, 2020 saw a Personal Protective Equipment Occupational health and industrial hygiene (IH) are significant amount of workplace area sampling completed 5 fundamental pillars in our overall health and safety program. more than plan. Our IH sampling program and monitoring PPE While our safety efforts focus on hazards that can result in an activities focused on 12 different workplace issues and immediate incident or acute injury, our occupational health agents of concern. efforts are focused on identifying, monitoring and mitigating Least effective exposures to potential workplace hazards, such as chemical, biological, physical or ergonomic agents, that can lead to 2020 Industrial Hygiene Sampling Plan – Issues and Agents of Concern Celebrating 1-year injury free at Eagle, acute illness or long-term chronic occupational disease. Michigan, USA (November 2020) Diesel Particulate (DPM) Relative Humidity Our operations maintain a risk-based industrial hygiene Oxides of Nitrogen Ventilation program with a focus on identifying and monitoring for Vibration Respirable Dust / Total Dust potential exposures unique to their operating environment Noise Lead and Other Heavy Metals CHAPADA and applying exposure-reduction plans that target our most Silica Workplace Illumination significant agents (contaminants) of concern. When potential Radon Welding Fumes exposures are identified, we analyze the relevant risks and A focus for 2020 at Chapada was to implement a fatigue risk reduction 6,937 develop exposure-reduction strategies with mitigative program by establishing both technical and educational solutions to Non–COVID-19 occupational measures based on the hierarchy of controls to reduce improve physical and mental well-being. Chapada conducted a fatigue health assessments and the potential risk to human health. study with a small group of haul truck operators and implemented fitness-for-work examinations learnings from the study across the operation in 2020 and early-2021. conducted in 2020

LUNDIN MINING 2020 SUSTAINABILITY REPORT HEALTH AND SAFETY 38 39 HEALTH AND SAFETY

CRISIS MANAGEMENT PLANNING AND EMERGENCY PREPAREDNESS We work to maintain a high degree of emergency preparedness across each of our operations. As part of that process, we have crisis management plans (including our Pandemic Response Plan) and strategies for each of our operations and Corporate headquarters. To ensure our teams can implement these plans effectively, we conduct formal crisis management training and a mix of practice and desktop scenarios annually. In 2020, seven crisis management training sessions were conducted – one on site at Chapada and the remaining six virtually due to the pandemic. The crisis management plans are supplemented by site-specific emergency response plans catering to the unique aspects of each operation that maintain emergency response capabilities, a variety of firefighting and rescue equipment, and specialized PPE that is suited to each working environment and operational jurisdiction.

This level of preparation allowed us to strategically plan for Fire training with MATSA at Neves-Corvo, and deliver a timely and effective response to the COVID-19 Portugal outbreak with the implementation of our Pandemic Response Plan in mid-January 2020. We were able to Neves-Corvo, Portugal and MATSA fire fighter training provide a flexible and adaptive response to the pandemic throughout the year with very little business disruption, while first and foremost ensuring that our workforce and LUNDIN MINING’S CRISIS local communities were protected and supported. MANAGEMENT OBJECTIVES: • Take immediate control and manage the crisis 13 311 9 Our operations-based emergency responders and mine effectively and professionally. Surface Trained Underground rescue teams receive regular training on equipment and • Provide appropriate support to people who may Emergency Surface Mine-Rescue emergency response techniques. Practice exercises, Response Emergency Teams be adversely affected or at risk. simulated emergency scenarios and external training are Teams Responders regularly provided to ensure that team skills are maintained. • Communicate effectively both internally and externally, While the pandemic disrupted many planned training including helping stakeholders and the media to focus routines, exercises and drills in 2020, our emergency on known facts and our actions to manage the situation. responders were able to utilize and practice their skills, 101 94* 834 with many playing a crucial role in support of the COVID-19 • Provide necessary support to staff, contractors, Trained Underground Underground pandemic response effort. suppliers, communities and our customers to minimize the impact of events on operations and the business. Underground Refuge Mine Refuge Mine-Rescue Chambers Chamber • Maintain employee, community, public and shareholder Team Combined confidence in management’s ability to effectively Responders Capacity manage the crisis.

• Continue to run the business effectively and *  Hazardous Materials Training at Eagle, In 2020 Zinkgruvan Mine installed four MineArc stand-alone refuge Michigan, USA efficiently during the crisis, while also developing chambers, their first installation of that type of refuge chamber. There and implementing an appropriate recovery plan. are now 50 best-in-class MineArc refuge chambers in service across Lundin Mining’s underground operations. 7 19 22 Facilitated Crisis Management Underground Emergency Surface Facility Emergency Scenario Exercises Evacuation Drills Evacuation Drills (Two at Chapada, one at each operation plus the Corporate office)

LUNDIN MINING 2020 SUSTAINABILITY REPORT ECONOMIC PERFORMANCE

MATERIALITY Economic performance is a material topic for Lundin Mining because the economic sustainability of our business is important to all our stakeholders. We strive to create meaningful value through the responsible acquisition, development, operation and closure of base metal mines, delivering shared value through effective partnerships and innovation while maintaining balance sheet strength and flexibility to act on compelling growth opportunities.

OUR APPROACH IN THIS SECTION At Lundin Mining, we continuously monitor our performance and objectives, conduct opportunity Materiality 41 and risk assessments, and integrate these findings Our Approach 41 into our economic strategy. Financial information is Our Performance 42 presented in accordance with International Financial Reporting Standards as issued by the International Local Procurement 44 Accounting Standards Board and Interpretations of the International Financial Reporting Interpretations, which the Canadian Accounting Standards Board has approved for incorporation into Part 1 of the CPA Canada Handbook – Accounting. ECONOMIC PERFORMANCE 42 43 ECONOMIC PERFORMANCE

Lundin Mining’s operations contribute to economic development and prosperity in regions where we operate through wages and salaries paid to employees and contractors, local procurement, taxes, royalties and fees paid to governments, and community investments or initiatives that advance sustainable development. The Company contributed $3.1 million in direct COVID-19 relief efforts, including education, healthcare support, local business development and humanitarian aid, during the year.

As defined by GRI, our Total Economic Value Generated in 2020 was approximately $2.0 billion, and Total Economic Value Distributed was approximately $1.3 billion, as detailed in the following table.

In US$ 000s 2018* 2019 2020

Total Economic Value Generated 1,759,753 1,903,969 2,046,609 Total Economic Value Distributed 1,196,059 1,246,232 1,281,938 Total Economic Value Retained 563,694 657,737 764,671 Exploration at Chapada, Brazil * 2018 Economic Value Distributed and Retained figures have been restated to include dividends paid to Lundin Mining’s shareholders.

Given our commitment to work with our stakeholders to advance socio-economic Concentrate loading at Setúbal port, Neves-Corvo, Portugal development in the regions where we operate, we also measure our economic performance in terms of our community-investment contributions. This information can be found in the Community Development section of this report. Economic performance updates OUR PERFORMANCE regarding our financial and operational For the year ended December 31, 2020, results for the reporting period are the Company achieved most recent available in other publications and production guidance for all metals, OUR NEXT STEPS financial disclosures found in the and cash costs better than guidance, Annual Information Form, 2020 Annual at all our operations and was able to • Anticipate significant growth in our zinc production for 2022 with MD&A and Financial Statements and generate cash flow from operations the restart of the expansion project at Neves-Corvo in January 2021. the Management Information Circular. of $566 million and net earnings attributable to shareholders • Expect to benefit from a favourable metal price environment in 2021, Our economic strategy is focused of $169 million. The CMOP was taking advantage of the significant investments made in our operations on delivering strong production and completed during the year, and the over the last several years. cash flow generation, low cash costs, ZEP officially restarted in January 2021 maintaining a strong and flexible balance after proactive COVID-19 temporary • Contribute to community investments and initiatives that advance regional sheet, and executing improvement suspension in the first quarter of sustainable development in regions where we operate and generate and expansionary projects as planned. 2020. Eagle set an annual throughput meaningful value for our stakeholders. The Company is focused on improving record and was able to generate productivity through operational significant cash flow and margins, Nickel flotation at Eagle, Michigan, USA excellence initiatives, value-added while Zinkgruvan set new annual technologies and continuous records for both tonnes of ore hoisted improvement programs, and it will and tonnes of ore milled. We were remain committed to optimizing able to increase our regular cash sustaining capital expenditures. This dividend and advance exploration strategy positions the Company to and expansion studies at Chapada. generate leading returns and take advantage of growth opportunities.

LUNDIN MINING 2020 SUSTAINABILITY REPORT ECONOMIC PERFORMANCE 44 45 ECONOMIC PERFORMANCE

LOCAL PROCUREMENT MATERIALITY Local economic impact is a material topic for Lundin Mining because we recognize the importance of achieving meaningful economic benefits to the communities, businesses and governments of the localities and regions where we operate. Local procurement plays a significant role in terms of benefits to the local communities and their economies.

OUR APPROACH Lundin Mining’s approach is based on local economic procurement decisions and processes that have significant and positive impacts on local economies, with associated benefits to businesses and communities in the regions of our sites.

OUR PERFORMANCE In 2020, approximately $1.73 billion of our goods and services were procured at the local or country level across the Company’s operating sites in the United States, South America and Europe, increasing from $1.63 billion in 2019 (or 96%, compared to 95% of total procurement in the previous year).

Underground at Neves-Corvo, Portugal Mill shutdown at Eagle, Michigan, USA

Zinkgruvan and Neves-Corvo define Total Procurement Procurement, by Site 2020 Total Procurement – 2020 local procurement to include all goods and services procured at the country CANDELARIA LOCAL 5% 6% 4% 2.5% 4.2% 8.0% 7.2% 4.2% 4% 100% 100% level and their local procurement rates PROCUREMENT 17% were 96% and 93%, respectively. Given 90% 90% the larger geographic scope of the 80% 80% United States, Chile and Brazil, these In 2020, following a three-year 70% 70% 59.0% sites distinguish between local-level local supplier training program 60% 75% 60% 65.7% 83% 78% 86.0% procurement (Michigan state-wide to support the growth and 50% 50% 95.8% 92.8% 26.4%, Copiapó province-wide (11.6%) integration of local suppliers 40% 40% and Goiás State procurement (36.7%) into Candelaria supply chain, 78% 30% 30% and country-level procurement (all 22 local suppliers continued 20% 20% 36.7% other in-country procurement at a to generate $18 million in 26.4% 10% 19% 17% 10% range of 59% to 86%). 12% 11.6% revenue through contracts 0% 0% with Candelaria, supporting Local In 2020, goods and services that largely 2018 2019 2020 Candelaria Chapada Eagle Neves- Zinkgruvan 1,232 local jobs. The training could not be sourced locally included Corvo National program was coordinated with specialized or heavy equipment, Local Local International the Lundin Foundation. chemicals, and certain types of National National specialized technical-consulting International International services. Rail and vessel shipping are also services that generally are procured outside of local areas.

LUNDIN MINING 2020 SUSTAINABILITY REPORT OUR PEOPLE

OUR APPROACH Lundin Mining is committed to its employees. We work hard to strengthen our culture of respect and transparency, and we practice a management style that both listens to employees and actively addresses any concerns. We believe that success depends on a skilled and motivated workforce, and that employee engagement is key to employee retention. To effectively foster a meaningful work experience, we believe it is important that our employees have knowledge of the Company’s direction and priorities and understand how their efforts and successes contribute to overall goals. IN THIS SECTION We continuously seek ways to improve and expand Our Approach 47 our employee communication channels to ensure Our Performance 48 that employees are kept up to date and informed. Local Hiring 49 Employee training protocols and focused training initiatives further contribute to motivation and Labour Relations 50 workforce engagement. We aim to create safe work environments that promote dignity and respect, and in which diversity and the contributions of all employees are recognized and valued. OUR PEOPLE 48 49 OUR PEOPLE

Employees, by Gender 2020

1,600 40%

1,400 35%

1,200 30%

1,000 25%

800 20%

600 15%

400 10%

200 5%

0 0%

Candelaria Chapada Eagle Neves- Zinkgruvan Corporate Corvo & Exploration Employee at Eagle, Michigan, USA

Female Male % Female

Breast Cancer Awareness Month at Chapada, Brazil

The Company aligns its practices temporarily replace workers on leave The percentage of female employees Due to the developed regions where with the UNGC Principles on or be assigned to specific short-term in senior executive positions and on the we operate, we have been fortunate Labour and supports freedom of projects. All contractors are included Board is publicly disclosed. Diversity and to have the ability to source our association and collective bargaining, in our safety performance statistics inclusion performance is communicated workforce locally. However, it is the elimination of all forms of and, in compliance with RMMS, are through our corporate website and in occasionally necessary to source forced and compulsory labour, the held to the same HSEC standards our annual Communication on Progress specific skills, levels of experience, effective abolition of child labour, as our employees. The turnover (COP) to UNGC. or technical expertise from abroad. and the elimination of employment / rate for Lundin Mining in 2020 was occupation-related discrimination. approximately 10.7%, an increase LOCAL HIRING OUR PERFORMANCE from 7.0% in 2019. MATERIALITY In 2020, our operational site employees OUR PERFORMANCE Local hiring is material as it were almost exclusively from in-country, As of December 31, 2020, In 2020, Lundin Mining proactively contributes to the local economy with expatriates accounting for only Lundin Mining globally employed recruited female applicants, promoted and our local communities and is 0.80% of our employees across our 4,291 employees, compared to 4,170 opportunities for women and another aspect of Lundin Mining’s organization. Contractors and suppliers in 2019; and 5,636 contract workers, made good progress in developing local economic impact. are expected to have practices in place versus 7,192 the previous year. Overall, workplaces that address the needs that support and parallel our policies and there were 9,927 people across of female workers. Traditionally, the OUR APPROACH standards, such as our RMMS, and in five operating mines and offices in attraction and retention of female At Lundin Mining, we make it a priority this regard, we ask that our contractors Brazil, Chile, Portugal, Sweden and employees are challenging, particularly to draw our workforce from the local and suppliers also adhere to a similar the United States; our exploration for operational roles at industrial sites. communities to ensure that the standard for prioritizing local hiring. locations; and our Corporate office Regardless, our female representation is economic benefit of employment in Toronto, Canada. Contractors are improving gradually, and commitments remains in our host communities. Sebastian Valenzuela, 6 years old primarily engaged in maintenance, were made to strive for continued participant in the “Leave your little mark” mine development, mining and project growth in the number of women we art competition at Candelaria, Chile activities; however, they also may employ across our organization.

LUNDIN MINING 2020 SUSTAINABILITY REPORT OUR PEOPLE 50 51 OUR PEOPLE

OUR PERFORMANCE bargaining negotiations in late-2020, As of December 31, 2020, union- there were no strikes, lockouts or represented employees across our work stoppages of significance at organization equalled 85%, similar our sites in 2020. to representation in 2019 (87%). The unionized workforce comprises In 2020, in connection with the labour non-managerial employees at the disruption at Candelaria, lawsuits mine sites who are covered under were filed by two labour unions at collective bargaining agreements. Candelaria making various allegations Depending on our operations, notice of anti-union activity. In each case, periods provided to employees before management engaged with the the implementation of significant notifying unions and appropriate steps operational changes that could were or are being taken to resolve substantially affect them vary according the complaints. No operations have to local legislative requirements and been identified as being at risk for can be found in Appendix A. Employees incidents of child labour or having at Eagle Mine are not unionized, nor young workers exposed to hazardous are our Corporate office employees. work. Lundin Mining has strict proof- The Company successfully renegotiated of-age requirements for its workforce collective bargaining agreements upon hiring that prevent anyone under with its unions in Brazil in 2020, and the legal industrial working age from in Sweden in early-2021, without any obtaining employment at any of our significant labour disruption. With the operation or exploration sites. Similarly, exception of Candelaria, which was our operations are not considered to impacted for approximately 50 days be at risk for incidents of forced or Employees at Eagle, Michigan, USA by labour disruptions during collective compulsory labour.

LABOUR RELATIONS whether our activities have any We believe diversity among our Board, MATERIALITY adverse impacts on the human rights senior management and employees Labour relations is a material of our employees to form or join trade has tangible and intangible benefits topic for Lundin Mining as we unions and to bargain collectively, and that make Lundin Mining a more believe that fostering an engaged whether these rights are at risk at any successful business and an employer workforce is fundamental in our ability of our operations. This process will be of choice. The Diversity and Inclusion to successfully operate, and that strengthened further as we align our Policy commits the Company to consistent and effective operation of practices with our new Human Rights create an inclusive and diverse work our mines is vital to meet the customer Standard, launched in late-2020. The environment. In 2021, we will continue and market demand for our concentrate relationships between the Company, focusing on diversity and inclusion products. The topic is broad, being its unions and employees are distinct awareness training. We have defined relevant to our workforce, our business at each of our mines; however, what is targets across Lundin Mining for the as a whole, and our value chain. consistent is that our approach focuses next five years, aspiring to maintain a on employee representation based Board composition in which women OUR APPROACH on trust and transparency; respectful comprise at least 30% of all directors, Lundin Mining strives to create a dialogue; and constructive, peaceful and aim to sustain at least 30% of safe, fair and respectful working resolution of any concerns that arise. executive officer positions held by environment for our employees. We engage with union leaders regularly women, as relevant positions become Our Code of Conduct supports the on matters of local labour laws, vacant and appropriately skilled unencumbered right to freedom of business changes and the negotiation candidates are available. association and collective bargaining of contract terms and conditions. at all our operations. We monitor

Donation of medical equipment at Candelaria, Chile

LUNDIN MINING 2020 SUSTAINABILITY REPORT SOCIAL PERFORMANCE

OUR APPROACH At Lundin Mining, social performance refers to the Company’s interactions, activities and outcomes concerning its stakeholders at local, regional and national levels. Our approach to social performance is to build a trust-based environment that earns and maintains the Company’s social license to operate while also contributing to the long-term viability and well-being of the regions where we operate.

IN THIS SECTION We value the continuous input we receive from our communities and other stakeholders and consistently Our Approach 53 seek to reduce our social impacts and improve the societal benefits of our operations in alignment with Our Performance 54 Lundin Mining’s RMMS. Our proactive and transparent Stakeholder Engagement 55 engagement processes lead to genuine collaboration Indigenous Relations 59 with our stakeholders and enable us to be responsive to their concerns and the net impacts we may cause. Managing Social Impacts 61 Understanding and proactively managing these Community Development 64 benefits and impacts is integral to the success of our operations. When we excel in our social performance, we uphold the corporate Values and demonstrate our commitment to contribute to a sustainable future for the world, our communities and stakeholders, and our Company. SOCIAL PERFORMANCE 54 55 SOCIAL PERFORMANCE

STAKEHOLDER ENGAGEMENT Throughout the mine cycle, the level of interest of different MATERIALITY stakeholder groups and the nature of their interests and Stakeholder engagement, community relations concerns can also change. Special consideration is given and grievance mechanisms are material topics for to identifying potentially vulnerable groups whose voices Lundin Mining because mining operations can generate and perspectives may not otherwise be heard. significant direct and indirect benefits and impacts to local communities and beyond. Understanding stakeholder Stakeholder engagement activities in 2020 had to adjust concerns and actual or perceived impacts allows our sites to the new reality presented by the pandemic, with our to manage and continually improve their operations to operations adapting their engagement activities to respond reduce risk exposure and improve value creation. to community needs. Planned engagement activities were cancelled, reduced and / or conducted virtually. Eagle Mine OUR APPROACH held a virtual community forum instead of its bi-annual Lundin Mining’s stakeholder engagement approach, based in-person forums and Candelaria used social media platforms on clear communication, transparency and trust, helps us to to stay engaged with the community throughout the year. understand the interests and concerns of our stakeholders, as well as the emerging issues and risks to our operations. Stakeholder engagement activities across our sites in 2020 Our Stakeholder Engagement Standard and accompanying included formal engagement activities, including stakeholder Guidance help ensure a consistent approach to engaging perception surveys, grievance and suggestion mechanisms, with communities, employees and other stakeholders. Each and environmental monitoring programs; informal of our sites uses a systematic and recurring stakeholder engagement activities, including virtual training sessions, mapping process to identify and prioritize stakeholders social media outreach, and partnerships / agreements; and from direct and indirect influence areas, as well as those reporting, including our annual sustainability report and interested in, or potentially affected by, the site’s activities. language-specific brochure, government-focused revenue Our stakeholder engagement process is externally verified transparency reports, financial statements, compliance annually, as detailed in our external assurance statement. statements and news releases. In addition, sites develop an annual stakeholder engagement plan to support their annual social performance action plan. Andrés Zavaleta, 13 years old, winner of the “Leave your little mark” art competition at Candelaria, Chile

Informed by leading practices in the performance action plans that seek on pandemic response and modifying mining industry, partnered with the to progress and continually improve engagement approaches to ensure communities in which we work, and the quality and performance of our the health and safety of employees committed to continuous improvement programs and management systems. and communities. across all areas of social performance, our approach is tailored to adapt to OUR PERFORMANCE the different contexts of our operation Lundin Mining continues to develop and exploration sites in six different and refine its Social Performance OUR NEXT STEPS countries, each with its own unique Management Standards, which include social performance management, cultures, languages and levels of • Develop a five-year community investment, stakeholder economic development. corporate social performance engagement and human rights. We strategy (2021 to 2026) Each site has a five-year social engaged sites through in-person and as part of the corporate performance plan to guide its work virtual workshops to discuss and refine Sustainability Strategy. in this area, informed by site risk the standards, and we had anticipated assessments governed by our Risk training and standard implementation • Use the corporate social Management Framework and social at all sites during 2020; however, training performance strategy to impact assessments that consider was delayed due to the COVID-19 bridge site-level social human rights risks / impacts, the pandemic. Chapada developed and performance plans with presence of Indigenous Peoples and adopted its five-year social performance the Sustainability Strategy. Mobile health unit at Candelaria, Chile Donation of medical supplies, Candelaria, Chile vulnerable groups, and emerging issues plan in 2020, and all sites advanced and opportunities at each location. implementation of their plans, adapting • Roll out and implement Within the framework of the five- their actions to respond to COVID-19 the final Social Performance year plan, sites develop and monitor pandemic priorities, including diverting Standards to all sites in 2021. the implementation of annual social and focusing community investments

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The table below provides an overview of stakeholder groups with whom Lundin Mining engaged in 2020, the types and frequency of engagement, some examples of key interests and concerns raised in 2020, and how the Company responded to these concerns. Updates on stakeholder engagement are provided to management every month.

Primary Stakeholder Groups, Key Interests and Concerns, and Lundin Mining’s Responses

Stakeholder Frequency and Key Interests and Group Type of Engagement Concerns Raised in 2020 Lundin Mining’s Response in 2020

Local • Occasional virtual • Health concerns • Distributed medical supplies to employees and Communities webinars, training regarding COVID-19 donated equipment and PPE to communities. (*Priority group and forums pandemic for all sites) • Conducted COVID-19 safety awareness • Scheduled virtual • Economic impacts of campaigns. meetings COVID-19 pandemic • Offered marketing, community training • Social media • Traffic, noise, dust, and business development webinars to aid vibration issues, economic recovery from pandemic impacts. • Newsletters water use, and waste • Worked with an external consultant to collect • Community stockpiles social performance data from communities near perception surveys Chapada, including community concerns about Covid-19 Community Response at Chapada, Brazil Eagle Rockin’ Local initiative, Michigan, USA and Company response to the pandemic. • Conducted dust baseline study at all sites to assess dust mitigation improvement measures. These approaches are used regularly to engage with stakeholders on an ad hoc, monthly, quarterly, bi-annual Indigenous • Occasional • Protection of • Proactively provided information on operational and / or annual basis. In 2021, we will update our materiality CHAPADA COMMUNITY Peoples engagement with environmental and activities and potential exploration areas. (*Priority group local Indigenous cultural resources assessment, a process used to identify sustainability PERCEPTION SURVEY RESULTS • Involved in community environmental for Eagle and Peru) community members issues and topics of focus for our internal and external monitoring program at Eagle Mine. stakeholders. Engagement was not undertaken specifically within the context of as part of this report preparation process. Community perception monitoring using the identified concerns • Monitored environmental and cultural resources in regional operation and exploration areas. SLO Index continued at Chapada. The results of and opportunities OUR PERFORMANCE the survey indicate a high acceptance level of the for collaboration • Held engagement sessions to discuss issues and partnership Chapada continued consistent monitoring of community Chapada mine, with an SLO score of 4.4 out of of interest, concerns and investment initiatives. perceptions using the Social License to Operate Index the possible 5.0, a sound level of acceptance with (SLO Index) methodology in 2020. Lundin Mining selected Government • Regular meetings • Environmental • Provided environmental compliance and room to improve through enhancement of social * this methodology to routinely monitor community ( Priority group or consultations compliance and monitoring information. performance plans and plan implementation for all sites) perceptions, social acceptance, and trust with our local monitoring (e.g., by improving relations with rural areas). • Implementation of • Collaborated with municipalities to communities at all sites. Our other sites have signed In 2020, the survey included questions on the agreements (ongoing) • Community health determine community needs and provided agreements to implement this approach for the future and safety regarding support accordingly. COVID-19 pandemic’s impact and the Company’s • Partnerships and routine monitoring of community perception. COVID-19 response. Results indicate that participants donations (ongoing) In 2020, we developed a plan to overhaul how we track and believe Chapada is committed to protecting the Employees and • Each site maintains • Training and • Developed management and action plans consolidate stakeholder engagement information at each health and well-being of community members (91% of respondents). Contractors a Joint Health and capacity building to address concerns and recommendations of our operations. Lundin Mining selected and procured an (*Priority group Safety Committee made by employees through surveys and • Health and safety information management system that will enable site teams for all sites) (JHSC) regular meetings. to collect and use up-to-date information about relevant related to COVID-19 • Annual Employee • Provided training and communication in stakeholders and our interactions with them to guide our • Mine closure planning Survey changes to operations to ensure well-being engagement and investment strategies. The system, which and communications and safety of workers during the pandemic. is equipped with capabilities to analyze the sentiment of • Social media interactions, will provide a single source for quantitative (e.g., videos) and qualitative data on stakeholder engagement. • Regular updates (newsletter and e-mail campaigns) • Training

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Stakeholder Frequency and Key Interests and Group Type of Engagement Concerns Raised in 2020 Lundin Mining’s Response in 2020 OUR NEXT STEPS Labour Unions • One-on-one and • Health and safety, • Distributed PPE supplies to employees group meetings with a focus on the and conducted COVID-19 safety • Implement the SLO Index COVID-19 pandemic awareness campaigns. methodology at all sites to • Successfully renegotiated collective bargaining enhance our understanding agreements at Chapada, Zinkgruvan and of the level of trust and Candelaria. Collective bargaining was impacted acceptance towards at Candelaria for approximately 50 days our operations. by labour disruptions during negotiations • Aim to deploy the in late-2020. stakeholder engagement Non- • Community • Environmental • Maintained and created new partnerships with information management Governmental collaboration programs (including concerns local non-governmental organizations to build system at Neves-Corvo, Organizations regarding water, capacity and enhance social and environmental Candelaria, Chapada and • Virtual meetings air and noise) performance across our sites (e.g., through Zinkgruvan by end of 2021. planned throughout entrepreneurship training, hosting forums, the year, as needed • Community health and community environmental monitoring). • Harness insights from development issues the management system to enhance and adapt Industry • Ongoing membership • Economic and • Transparently and proactively communicated Elida, Peru engagement and community- Associations / for industry regulatory economic and regulatory performance. investment programs to our Regional associations performance • Participated in professional development communities and business Business OUR APPROACH OUR PERFORMANCE • Participation in opportunities to improve mine operations needs post-COVID-19. Associations Lundin Mining is committed to We currently have activities that take occasional virtual (e.g., Chapada attended an online seminar on respecting and considering the place in or near areas where Indigenous industry forums, community relations and local development). rights, interests, concerns, traditional Peoples are located, as follows: conferences and land uses and cultural activities of committees INDIGENOUS RELATIONS Indigenous Peoples within our sphere • Our Eagle Mine operations MATERIALITY Suppliers • Meetings with • COVID-19 pandemic • Proactively worked with suppliers to identify of influence, as articulated in our RMP. are located on ceded territory local contractors response solutions to challenges posed by the Indigenous relations are a For operation sites, whose activities can near the Keweenaw Bay (where permitted COVID-19 pandemic. material topic for Lundin Mining directly or indirectly affect Indigenous Indian Community. • Local economic impact due to the pandemic) because mining projects can impose Peoples, our RMMS standard requires • Candelaria participated in the FOREDE on the rights, traditional land uses, the establishment of formal procedures • Our exploration project Amauta • Meetings with other “Reactivate, Innovate: The Challenge of Grow” and cultural activities of Indigenous and processes related to Indigenous in southern Peru, Arequipa Region, suppliers, as required a local virtual fair hosted by the Corporation Peoples and vulnerable groups. community engagement, economic District of Acari is located on the for the Development of the Atacama Region. Respectful engagement with inclusion and cultural heritage border of the traditional land of the Indigenous Peoples and associated conservation, while ensuring we meet Indigenous community Comunidad Customers • Regular contact • Health and safety, • Continued to implement policies and systems Campesina de Sancos (Sancos), including COVID-19 to support ESG performance, including the conservation of cultural heritage is applicable legislative requirements. • Environmental, social self-identified as a Quechua group pandemic response Social Performance Standard, Code of Conduct, relevant to our operations at Eagle Our Stakeholder Engagement Standard and governance (ESG) with 1,100 registered members. Ethical Values and Anti-Corruption Policy, Mine, Candelaria and our exploration and Guidance guide our relationships surveys to ensure • ESG performance project in Peru. with Indigenous communities by Responsible Mining Policy, and RMMS. • Our Candelaria operations are accurate and updated outlining specific requirements • Reliable supplies in the Atacama Region of Chile information • Update of commercial shipping documents around engagement, communication, where 3,000 people self-identify as • High-quality products standard and SDS datasheets. integration of community input, • Timely response to Indigenous Colla community members. information requests • Information on monitoring and review. any hazards

Additional key stakeholder groups include shareholders, ESG analysts, investors, lenders and financial institutions. The Corporate office engages directly with these groups through regular reporting (e.g., financial statements, compliance statements, annual reports) and responses to information requests Where Lundin Mining’s sites are adjacent to Indigenous peoples’ to ensure accurate and updated information. territories (Eagle Mine and Amauta), there are formal engagement processes and some agreements in place with Indigenous communities at those sites.

LUNDIN MINING 2020 SUSTAINABILITY REPORT SOCIAL PERFORMANCE 60 61 SOCIAL PERFORMANCE

MANAGING SOCIAL IMPACTS OUR APPROACH Our operations are located immediately adjacent or nearby many communities. This proximity can result in a range of actual and potential impacts on local communities. Sites are guided by the RMMS and aligned with the Social Management Standards and accompanying Guidance.

OUR PERFORMANCE All sites have a grievance mechanism in place to ensure that stakeholders can voice concerns about Company activities and impacts, and that these concerns are documented in a transparent, accountable manner and addressed in a timely fashion. Our grievance management is subject to external assurance for this report and verified annually. The total number of grievances across mine sites was 97 of which 96% have been resolved. Dust suppression measures at Candelaria, Chile

The table below lists the grievances filed at each operation in 2020 and includes figures for grievances under ongoing most grievances at Candelaria in 2020 were related to management and those that have been resolved. intermittent instability of the Wi-Fi connection (free Wi-Fi is provided to 85% of Tierra Amarilla residents by the mine; however, the mine does not control the system). The chart Total Number Grievances below presents all grievances at Lundin Mining by category. of Grievances With Ongoing Grievances COVID-19 support at Peru Location 2020 Management Resolved

Amauta 0 0 0 Company-wide Grievances Eagle Mine is committed to continuing Lundin Mining Peru S.A.C. (Lundin In 2020, there were no disputes Exploration by Category 2020 constructive engagement with local Peru), through its subsidiary Compañia relating to land use, customary rights tribes throughout the mine’s operation. Minera Mohicano S.A.C. (Mohicano), of local communities and Indigenous Candelaria 29 3 26 5% 3% Through regular dialogue, we work is currently in the middle of a Peoples, or incidents of violation of Chapada 50 0 50 10% 26% with local tribes to identify common seven-year agreement with the rights of Indigenous Peoples and, interests concerning land (e.g., closure communities for the Amauta as a result, grievance mechanisms Eagle 12 0 12 activities), water (e.g., water-quality exploration project in collaboration were not used to resolve any issues Neves-Corvo 1 0 1 15% monitoring) and protection of cultural with the appointed leaders of the related to Indigenous Peoples. resources; to identify employment and Indigenous community of Sancos. Zinkgruvan 5 1 51 economic development partnerships; In 2020, the site engaged remotely and to identify opportunities for with the Indigenous community and 1 One grievance was filed in 2019 and resolved in 2020. 23% investment. In 2020, Eagle Mine provided medical supplies, made OUR NEXT STEPS 18% initiated their revised Community donations of PPE and supported The higher number of grievances at Chapada and Environmental Monitoring Program internet connectivity. • Continue to engage and Candelaria, compared to other sites, is due to the 2 (CEMP) agreement, which was Community Other collaborate with the Keweenaw proximity to local communities and the type of operations Commitment1 updated in 2019. Through this revised Candelaria engages with Indigenous Noise Bay Indian Community (open-pit mining), which contributes to noise, vibration Vibration agreement, Eagle Mine participated in community members, as part of Water through the CEMP. and dust complaints by local community members. its ongoing community programs Traffic monthly meetings with the Keweenaw The most grievances were at Chapada. Like previous years, Dust Bay Indian Community to meaningfully and training plans, as well as for • Aim to achieve a cooperative engage with local tribes regarding the site’s expansion initiative 1 “Community commitment” and approach to closure at 2 “Other” include that a site was not environmental monitoring and (Candelaria 2040). Candelaria provided Eagle while keeping in mind maintaining local roads and that a site cultural access. Eagle Mine’s team scholarships, COVID-19 support, regulatory requirements. did not clean up debris on a piece of also discussed closure activities offered community training programs land adjacent to a community, respectively. with the tribe and identified their and other engagements. • Continue engagement with questions and concerns. the Sancos community.

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Social Impacts From Our Activities in 2020 Site Social Impacts from Our Activities and Grievances Mitigation Measures The following table identifies the most significant social impacts for each location based on site-level assessment, grievances, and stakeholder perspectives from ongoing engagement efforts. Concerns about the spread of COVID-19 Neves-Corvo • More than 30 years of operation in an area • Supported programs that focus on economic from mine operations were addressed at all sites through strong health and safety controls and community investments of low economic development has created diversification, based on activities other than in health (e.g., providing PPE and masks, and donating specialized health equipment). a dependency on the mine. mining, through identifying opportunities for regional development. • Operations, including noise, impacted Site Social Impacts from Our Activities and Grievances Mitigation Measures local communities. • Contributed to the development of an online e-platform to support local economic recovery. • Dust emissions, occupation of agricultural Candelaria • Operational activities, such as dust emissions, • Coordinated with municipalities and land, road damage, and the conflict between • Provided support to promote entrepreneurship blasting and traffic, impacted local communities. other partners to address grievances exploration activities and hunting practices in local schools. Reported grievances in 2020 included dust, noise, (e.g., land access, driver certification). led to grievances. vibrations, driving course certification issues, traffic • Created a community WhatsApp with Nantoco levels and speed, water and the maintenance of neighbours to report blasting times. Formalized Zinkgruvan • Reliance on the mine for local jobs and economic • Supported local entrepreneurship programs Candelaria property adjacent to residents. a roundtable with representatives of the sector. growth has impacted economic development. and economic growth initiatives, based on • More than 20 years of operation in an area activities other than mining. • Supported programs or local entrepreneurs • Operations, including traffic, noise, odours, dust of low economic development has created that focus on economic diversification, based emissions and vibrations, impacted communities • Inspected perceived impacts of operations a dependency on the mine. on activities other than mining, identifying and led to grievances. (e.g., alleged structural damage from vibration) and took action to address actual impacts opportunities for regional development. • Operations impacted water quality (e.g., a sound barrier was built around an of surrounding community. • Continued traffic mitigation measures, including exploration rig to mitigate noise). scheduling mine-related buses and traffic to • Soil contamination concerns of • Supported the municipality with the relocation reduce traffic interaction and modifying haulage surrounding community. routes in Tierra Amarilla and avoid residential of a groundwater well. areas in Copiapó and Caldera. • Conducted studies on soil contamination levels and sources and continued to work Chapada • Local economy and government budget • Implemented the Rural Development Program with the Environmental Court and local county are dependent on the mine. Neighbouring to respond to farmers’ concerns. board to develop and implement short- and farmers complained about the lack of access • Supported the construction of a bypass in long-term measures. to mining benefits. Alto Horizonte municipality to divert heavy traffic • Operations, including dust, vibration, noise outside the town (due for completion in 2021). and traffic, impacted communities, resulting • Facilitated review of the tailing storage facility in grievances. emergency plan; worked to develop strong • Proposed increased height of the tailings facility. relationships with newly elected authorities.

Eagle • Tribal concerns about closure planning. • Continued consultations with local tribes regarding closure planning. OUR NEXT STEPS • Impact on the local economy as mine closure approaches. • Reviewed Eagle’s community-investment • Conduct an annual assessment programs to measure impact, understand • Haul truck driving incidents led to most closure options and ensure the programs of social performance risks grievances; concerns about driving speed remain successful. at each site. and safety were reported. • Equipped trucks with vehicle monitoring • Re-evaluate and update systems and haul truck grievances were five-year strategies and addressed on a case-by-case basis. annual action plans at each operation, taking into consideration incident and grievance management.

Supporting Local Entrepreneurship at Caldera, Chile

LUNDIN MINING 2020 SUSTAINABILITY REPORT SOCIAL PERFORMANCE 64 65 SOCIAL PERFORMANCE

COMMUNITY DEVELOPMENT and to identify community-investment stakeholders to plan, implement DIRECT LUNDIN MINING MATERIALITY opportunities that will be of most and resource long-term community- COMMUNITY INVESTMENTS Community development, benefit. Site-level community investment investment initiatives with a focus Total direct community-investment expenditures across including community investment is guided by community-investment on market-based approaches. our operations and Corporate headquarters in 2020 were and capacity building, is a material strategies and annual action plans. Our approximately $7.96 million, compared to $4.77 million OUR PERFORMANCE topic for Lundin Mining because these community investments in 2020 reflect in 2019, which supported education, health, culture, initiatives are an integral component our response to the COVID-19 pandemic. In 2020, sites adapted their community development, and small business economic of our commitment to delivering on community-investment plans to stimulation. The increase in community investment our social performance obligations. For certain programs, our community respond to the COVID-19 pandemic. compared to 2019 largely reflects the Company’s response Supporting community development in investments are implemented through Our local teams collaborated with to the COVID-19 pandemic. partnership with communities creates the Lundin Foundation, a Canadian communities to identify the immediate meaningful and outcome-focused non-profit organization principally needs of community members CONTRIBUTIONS TO THE LUNDIN FOUNDATION initiatives and supports the achievement supported through contributions from impacted by the public health crisis. IN 2020 TO ADVANCE PROGRAMS of local priorities. the Lundin Group of Companies. The The Company contributed $3.1 million Lundin Mining also spent $953,000 through the Foundation works with Lundin Mining in direct COVID-19 relief efforts, Lundin Foundation to support the development and OUR APPROACH and other Lundin Group corporate including education, healthcare implementation of social investment programs. Lundin Mining is committed to partners, host governments and support, local business development promoting regional sustainable local communities to improve the and humanitarian aid during the Lundin Mining Community Investments, 2020 development and economic management of, and benefit streams year, as detailed in our COVID-19 diversification in its host communities, from, natural resource development response section. We also continued 2020 Lundin Mining while promoting collaboration with projects. Program staff work with our emphasis on promoting economic Community Investment Location Expenditures1,2 communities to reduce dependency our social performance teams at diversification and advancing local on mining and community-investment each site to address stakeholder entrepreneurship during 2020 that Amauta Exploration 20 support over time. We work closely priorities aligned with business needs will support long-term resilience with our host communities to align or capacities. Foundation staff also following the pandemic. Candelaria 5,772 with existing local development plans work with Lundin Mining and other Supporting active lifestyle in the community Chapada 813 at Neves-Corvo, Portugal Corporate 502

Eagle 945 Lundin Mining Total Community Investments, 2018-2020 1,2 Neves-Corvo 593 2018 2019 2020 Zinkgruvan 270 Aerial View, Zinkgruvan, Sweden Total Community Investments, 8,915 In $US 000s 11,996 7,4 46 8,915 2020 (in $US 000s) 1 The 2019 and 2020 community investments total include the Chapada mine, acquired in July 2019. 1 Values are rounded to the nearest thousand dollars. 2 Lundin Foundation totals: $1.0M in 2020, $2.7M in 2019, and $2.2M in 2018. 2 Inclusive of program activity contribution to Lundin Foundation.

The reduction in investments compared to 2018 reflects reduced contributions to the Lundin Foundation as well as the deferral of a large project supported by Candelaria; the housing project was postponed due to technical requirements for suitable land.

2020 SUSTAINABILITY REPORT SOCIAL PERFORMANCE 66 67 SOCIAL PERFORMANCE

The following tables highlight key community-investment initiatives at each of our sites and Corporate, many of which are Chapada implemented over several years. Several programs planned for 2020 were paused due to the pandemic, but new programs were developed to support local communities and businesses to mitigate the negative economic impacts of the pandemic. Program Purpose Outcome

Candelaria Rural To improve farming and ranching at neighbouring farms. Formalized partnership agreements Development with neighbouring farmers to provide Program Purpose Outcome Program an annual in-kind donation per property. Phase II commenced in June 2020, with Agreements To promote sustainable development in Tierra Amarilla, During 2020, Candelaria co-financed 45 projects implemented by November 2020. with Local Copiapó and Caldera communities by supporting several initiatives, including the construction Municipalities local economy, social innovation, education, and of a dialysis centre in Caldera and the Economic To help address the high dependency on mining. In early-2020, sessions were held for health and well-being projects. acquisition of a new ultrasound machine Diversification In partnership with Agenda Publica, an NGO. rural development, infrastructure and in Tierra Amarilla. Program job creation. Community members and Chapada worked to co-develop action plans, Community To develop programs for communities and implement In 2020, Candelaria developed an Educational with 18 projects registered that will be Collaboration them in collaboration with local organizations. Digital Kit to support e-learning during the considered for support from the program. and Training pandemic as well as community training An online capacity-building course on project Program for food handling, warehouse operators, development was facilitated. office management and security guards. In total, 164 organizations benefitted from this program; 111 projects received funding. Eagle Punta Frodden To create jobs and improve income for fishermen During 2020, the plant received its required Fish Processing in Caldera through processing and selling seafood certification and initiated registration to Program Purpose Outcome Plant products to an international sustainable seafood export to the European Union. Candelaria exporter. Provides certified training to potential partnered with Atacama University to Marquette- To create opportunities for high-school students Provided an additional grant that maintained employees of the Punta Frodden Plant. launch a study to identify possible long-term Alger Technical to earn college credits and develop local talent in an essential student resource support staff investments and define potential suppliers Middle College high-demand career areas, such as skilled trades position threatened by budget reductions. for the plant. and health sciences. The development of a fundraising strategy is underway to create resilience in funding The plant supported 69 jobs and secured to support key positions integral to 45 wholesale customers creating local student success. economic impact through wages paid and Big Bay To support economic diversification in Big Bay by Provided marketing support for local seafood purchases from local fishermen. Recreation leveraging recreational and tourism assets to promote businesses that leveraged visitor traffic Complementary programs supported marine and Economic economic opportunities for local businesses. in winter months and provided strategic rehabilitation, restoration and replantation Diversification support and guidance on marketing content. programs to ensure sustainable use and Project management of marine areas. Accelerate UP! To contribute to the long-term economic Supported a program that offered mental Inventa: To transform ideas of social and environmental The program supported 14 start-ups, development of Marquette County by providing health services to clients who otherwise Inventor & innovation into prototypes by promoting community-led, 50% of which were led by women, through free business coaching to new and expanding would not have access. A consultant was Accelerator commercially viable solutions to environmental and providing virtual training in 2020 for businesses in the region. secured to develop a fundraising strategy. Program social issues in the region. A flagship program for marketing, sales, business coaching and Candelaria and the Lundin Foundation, in partnership website development. with Universidad de Valparaiso.

LUNDIN MINING 2020 SUSTAINABILITY REPORT SOCIAL PERFORMANCE 68 69 SOCIAL PERFORMANCE

Neves-Corvo Amauta Exploration

Program Purpose Outcome Program Purpose Outcome

Entrepreneurship To provide business training, featuring one-on-one Four individuals participated in group Infrastructure To improve the infrastructure of local communities. Provided maintenance services for telephone Development support to small businesses and entrepreneurs mentoring and one-on-one tutoring for Support signal repeater antennas in the towns of Program in the region, this year with a focus on coping business training, with additional sessions San Luis Alto, Cajas, and San Luis Bajo, with impacts of COVID-19. A collaboration by the held for finding alternative sources of funding which enabled five villages to be connected Lundin Foundation and Lisbon University. and opportunities to access funds available through improved communication and for businesses to address COVID-19 impacts. internet access.

Socio-economic To assess the economic impact of social initiatives Phase 1 of the Socio-economic Impact Study Impact Study conducted in recent years. focussed on 2016 – 2018 and indicate for this Corporate period Neves-Corvo accounts for 8% of the GDP for the Baixo Alentejo region, and 42% of Program Purpose Outcome its exports. At the national level, SOMINCOR contributed with 0.6% of total Portuguese Generation To support Generation Chosen in enhancing Supported 90 youth and young adults from exports and 64% of ore exports. In terms of Chosen the emotional intelligence of young adults from marginalized areas with grocery gift cards employment, the study found that for every underserved communities in Ontario. and food boxes and access to 13 one-on-one direct job with Neves-Corvo, 3.7 new jobs therapy sessions with a racialized are created in the local economy (indirect psychotherapist. Provided 14 young adults and inducive effects). The company will focus with resources start a business, money to pay on supporting economic diversification tuition, and money to launch an environmental initiatives in 2021. initiative to better serve the sustainability efforts of their respective community.

Zinkgruvan

Program Purpose Outcome

RE:THINK To support the growth of small businesses in and Ten entrepreneurs received individual around Askersund Municipality, with a focus in coaching and training, resulting in the launch 2020 on recovery from the economic impacts of the of two new businesses, the transition of COVID-19 pandemic. three businesses to new markets, and two collaborations between program businesses OUR NEXT STEPS to leverage new market opportunities.

Young To provide high-school students the opportunity Continued to provide ongoing annual • Implement the Community Investment Entrepreneurship to start, operate, and close a business during the support to this initiative in 2020 and have Standard and develop a KPI Impact Program school year. A partnership with Young Enterprise renewed collaboration for 2021. Management Framework in 2021 (Ung Företagsamhet), a politically independent, to continue to strengthen future non-profit, educational organization and part of community-investment programs. Junior Achievement (JA Worldwide). • Commence mapping community Support to the To address the increased need for support to Supported call centre helpline for women investments to align more closely with Local Women’s women experiencing domestic violence during the who experience violence to speak the United Nations SDGs in 2021. Shelter COVID-19 pandemic. with trained counselors, as well as the construction of a storage unit for the local Generation Chosen, Toronto, Canada women’s shelter.

LUNDIN MINING 2020 SUSTAINABILITY REPORT ENVIRONMENT

OUR APPROACH Effective environmental management is integral to the success of Lundin Mining’s operations, from day-to-day activities on site to corporate strategic IN THIS SECTION planning. Our approach is founded on a commitment to compliance with applicable laws and regulations Our Approach 71 along with numerous voluntary external commitments, Tailings and Waste Rock including UNGC’s Environment Principles Seven, Management 74 Eight and Nine. Our RMMS standard, aligned with the ISO 14001 Environmental Management System Water Stewardship 78 standard, forms the foundation of our global Climate Change, Energy 88 environmental management approach. Our primary and GHG Emissions objective is to minimize potential environmental Reclamation and Closure 98 impacts throughout the life of our mines and post- closure through systematic assessment of risk; robust Non-Material Topics 99 engineering, construction and operations; and the Air Emissions, Noise and Vibration 99 implementation of environmental management Biodiversity and Land 101 controls and procedures designed to meet the individual needs of our operations in their unique Non-Mineral Waste 102 environmental and social settings. ENVIRONMENT 72 73 ENVIRONMENT

Candeleria submitted an environmental Environmental Mission Environmental permit application in early-2020 that Laws & Values Regulations reflects the continued growth in mineral reserve discoveries and further Corporate extension of its operating life to post- Environmental UNGC 2040. Zinkgruvan continues to liaise Principles LUNDIN MINING Standards & ENVIRONMENTAL Procedures with relevant authorities regarding the SDGs MANAGEMENT APPROACH Corporate renewal of conditions attached to its Commitments environmental licence and anticipates submitting reports on its studies in late-2022, with final permit limits to be RMP RMMS defined by mid-2026.

ENVIRONMENTAL INCIDENTS The Lundin Mining environmental incidents reporting system requires classification on a severity scale of PRECAUTIONARY APPROACH Level 1 (low) to Level 5 (high). The severity of an environmental incident is judged by one or more of the following:

• Impact on species, communities and © European Bee-eater (Abelharuco) at Neves-Corvo, Portugal Environmental Environmental habitats that comprise ecosystems Environmental Environmental Environmental Environmental Permitting Impact Protection & Controls Risk Audit Incidents of the natural environment; Assessment Stewardship • The degree of regulatory infractions of its environmental appeal that was heard in February non-compliance; and approvals. The charges originate from 2021 and dismissed by the Court in a two inspections carried out in 2013 and written decision delivered in April 2021. Each of our sites operates in accordance • Assessing and implementing energy ENVIRONMENTAL PERMITTING • The level of local community concern. 2014 before Lundin Mining acquired the with stringent environmental efficiency and greenhouse gas (GHG) AND COMPLIANCE mine. The case has been ongoing for In July 2019, the State Defense Council All incidents are reported to the (Consejo de Defensa del Estado) management controls and practices emissions reduction initiatives; The Company’s operations are several years and in 2019, the Supreme Board of Directors, and those that filed a lawsuit against Candelaria that have been designed to protect subject to environmental regulation Court ordered a re-hearing of the case, are classified as Level 3 or above are before the First Environmental Court the environments and communities in • Monitoring noise, vibration and in the various jurisdictions in which which occurred in 2020. The Second reported in our annual disclosures. alleging environmental damage due which we operate. A series of Corporate air emissions to confirm the it operates. Permitting, approvals Environmental Court ruled in favour of No Level 3 and above incidents were to extraction of groundwater beyond Environmental Technical Standards, effectiveness of our mitigating and compliance management are Candelaria, overturning the previously recorded in 2020. Candelaria’s permitted limits. The aligned with Towards Sustainable Mining measures for the protection and crucial for the effective regulation administered fine and ordering the action was settled in January 2021 (TSM) standards formalizes these well-being of the environment and of mining-related activities to SMA to carry out a new investigation. COMPLIANCE WITH with no admission of environmental requirements, in compliance with the local communities; prevent possible adverse impacts The SMA appealed this decision and a ENVIRONMENTAL LAWS damage having occurred. RMMS. Candelaria, Ojos del Salado and on the natural environment as well hearing before the Supreme Court is • Following strict protocols for storage, We strive to comply with relevant Chapada operate in compliance with as the interests and rights of local expected to occur in 2021. handling, labelling, and disposal environmental laws and regulations In 2018, the Lisbon and Tagus environmental management systems communities. Our mines operate of hazardous materials, including in all aspects of our operations. In 2018, claims on behalf of a group of Valley Regional Coordination and certified under the international under environmental approvals fuels, chemicals and wastes for the Unfortunately, on occasion, sanctions Caldera fishermen were consolidated Development Commission alleged standard ISO 14001:2015. and licenses and routinely submit protection of our workforce and the or fines are issued by regulatory into a single proceeding filed against that our Neves-Corvo operation had applications for new permits, when environment; and authorities. Fines of $10,000 or above Candelaria in the Copiapó Court failed to notify all stakeholders of During 2020, we have continued: required, and submit compliance for infringement of environmental of Appeals. The claim alleged that work undertaken at our Setúbal port reports for existing permits to • Making water stewardship gains, • Periodically conducting additional legislation or regulations are disclosed contamination of marine habitat facilities. The matter was still pending demonstrate conformity with current with a measurable reduction in studies to improve our ability to in our annual sustainability reports. due to vessel loading activities at resolution at the close of 2020. obligations. We track emerging withdrawal of freshwater from manage risks to human health the Candelaria port operations has environmental legislation in surface water bodies; and the environment. We are continuing to track the caused harm to fishermen and local Further details on certain of these legal preparedness for potentially stricter outcome of charges notified to our communities, including impact on disclosures can be found in our AIF. Environmental risk assessments standards and enforcement, more • Monitoring surface water, Candelaria mine in 2015 by the Chilean health and livelihood. In 2019, a ruling and management are routinely stringent environmental assessment groundwater, soils and biodiversity Environmental Superintendent was issued dismissing all claims. The conducted and governed by our requirements for proposed projects, to confirm the effectiveness of our (Superintendencia de Medio Ambiente, plaintiff Caldera fishermen filed an environmental protection procedures comprehensive Risk Assessment and a heightened degree of or SMA) associated with alleged and to enable timely identification and Management Framework. responsibility for our operations. of any issues that may arise;

LUNDIN MINING 2020 SUSTAINABILITY REPORT ENVIRONMENT 74 75 ENVIRONMENT

Waste Rock Stockpile at Chapada, Brazil Aerial view of water treatment facilities at Neves-Corvo, Portugal Tailings facility at Eagle, Michigan, USA

TAILINGS AND WASTE ROCK MANAGEMENT In late-2020, Lundin Mining publicly committed to the OUR PERFORMANCE MATERIALITY implementation of the Global Industry Standard on The mineral waste quantities generated by our operations Waste Rock Mined Tailings and waste rock management is a material Tailings Management (GISTM), the first global standard on in 2020 are shown in the chart. Approximately 48% of and Tailings Generated 2020 topic for Lundin Mining because mining and mineral tailings management, released August 2020. Developed in the waste rock mined underground and some 30–40% collaboration with ICMM, UNEP and PRI, the ultimate goal is processing produce a significant amount of these mineral of tailings from processing ore from underground 100 wastes. When they are not properly managed, they have the zero harm to people and the environment while aiming to mines were reused in backfill for mine stabilization. potential to impact local people and the natural environment prevent catastrophic failure of tailings facilities by providing Additional waste rock that was brought to the surface during operations and post-closure. operators with specified measures and approaches for safe for operational scheduling reasons was subsequently 80 tailings facility management, taking into account multiple returned underground as rockfill. OUR APPROACH stakeholder perspectives. Supported by the RMMS, our goal Lundin Mining’s operations generate mineral waste in the is for tailings facilities classified as having “Extreme” or “Very Tailings Management 60 form of waste rock and process tailings. Through efficient high” potential consequences of failure, as defined by GISTM, Surface tailings facilities represent a significant mining and mineral processing practices, along with environmental risk for the mining industry. to be in conformance with the standard within three years 40 underground disposal and reuse of these wastes where of August 5, 2020, and all other facilities within five years. Lundin Mining takes considerable care to ensure Million Tonnes practicable, we can minimize the overall quantity stored our tailings facilities are well designed, constructed on the surface. Our operations employ comprehensive The engineering design of the waste rock depositories and operated in accordance with leading industry 20 mineral waste management practices that allow us to at all Lundin Mining sites is based on geological and practices and standards. To assure that they are minimize associated environmental and social risks and geotechnical characterization studies, including seismic well-maintained, the facilities are routinely inspected, ensure adequate protection of our local resources. stability parameters. Construction supervision, inspection carefully monitored and independently reviewed. 0 and monitoring are undertaken to minimize any stability Candelaria Chapada Eagle Neves- Zinkgruvan Total Lundin Mining’s RMMS includes a specific tailings Lundin Mining operates five mines with five active Corvo Mineral risk. Equally important is an assessment of all environmental Waste management technical standard that requires our operations and social aspects to understand and resolve any tailings facilities and uses two widely accepted methods to ensure tailings facilities and major water-retention dams are potential impacts. of tailings disposal: Waste Rock Waste60 Rock36 0.1 0.7 0.4 97 planned, designed, constructed, operated, decommissioned Tailings Tailings21 19 0.6 3.3 1.2 45 and closed in such a manner that all structures are stable. An important environmental consideration for all our mineral • Underground disposal involves combining tailings It also ensures that all aspects comply with regulatory wastes is the potential for the generation of acidic water, with products such as sand or cement, followed by requirements, applicable internal standards and policies, and known as acid rock drainage (ARD), that can be formed disposal as a paste backfill or hydraulic backfill in accepted international practice. We are open and transparent when sulphide minerals in waste rock and / or tailings previously mined areas of underground mines; and about our overall tailings management approach and more are exposed to moisture and air. The release of ARD can detailed information can be found in the Tailings Management adversely affect the quality of waterways or groundwater by • Surface disposal involves placement in engineered Information Sheet located on our website. introducing undesirable levels of acidity and dissolved metals. surface impoundments or, in the case of Eagle, Appropriate geochemical characterization programs allow us in a previously mined open pit. to understand and minimize this risk at our operations.

LUNDIN MINING 2020 SUSTAINABILITY REPORT ENVIRONMENT 76 77 ENVIRONMENT

WASTE ROCK MANAGEMENT In 2020, we performed a waste management benchmarking exercise in preparation for the development of a new corporate waste management standard that will formalize Lundin Mining’s core elements for the management of waste rock Company-wide.

In line with expectations, 98% of waste rock was mined at Candelaria and Chapada open-pit operations. Management of waste rock and identified risks and controls are summarized for our operations as follows.

Waste Rock Operation Footprint1 Management and Performance

Candelaria 891 ha • Permanent surface storage in terraced depositories on site • Designed and constructed for seismic stability and to reduce “shadow effect” on the neighbouring Tierra Amarilla community • No ARD controls required

Chapada 686 ha • Permanent surface storage in terraced rock piles on site • Compacted low-permeability soils base layer, segregation and “paddock” dumping for ARD control • Review and evaluation of risks or impacts arising from waste rock piles; development of ARD Management Plan • Participation in the Mining Hub initiative assessing alternative uses for waste rock; Humboldt Tailings Disposal Facility at Eagle Mine, Michigan, USA project to continue in 2021

Eagle 3 ha • Temporary surface storage incorporating ARD controls All active tailings facilities with retention Site-based Responsible Person: Independent Reviews: Annual structures use various construction Sites are required to identify a independent third-party tailings • All waste rock mined retained underground in 2020 techniques for the main and secondary Responsible Person to ensure reviews are focused on impoundment • No waste rock will remain at surface on mine closure (or perimeter) dams, but none of these ownership and proper management stability and integrity and provide dams use the upstream construction of the tailings facility. an expert, independent opinion as Neves-Corvo 9 ha • Temporary surface storage incorporating ARD controls prior to use in internal areas method. Of the five Lundin Mining to whether the tailings facility design of tailings facility Engineer of Record: Each tailings operations, Eagle Mine is the only and performance meet accepted • Almost half of waste rock mined retained underground in 2020 operation that does not have a facility has an appropriately qualified, international practices. Results from constructed tailings impoundment with licensed and experienced third-party the third-party reviews are carefully Zinkgruvan 0 ha • No surface storage dams. Lundin Mining also maintains geotechnical engineer to act as tracked, and progress updates are • Used as a construction material for the tailings facility embankments and monitors six inactive or closed an external Designer or Engineer reported to the Board-appointed and internal roads, with collection of runoff tailings facilities. More detailed of Record. HSEC Committee each quarter. information is regularly updated in • 60% of waste rock mined retained underground in 2020 our Tailings Management Information Dam Safety Inspections: Planned annual independent review Formal dam safety inspections Sheet found on our website. site visits in 2020 were postponed 1 Approximate footprint area. A previous error in Candelaria’s footprint area has been corrected (reported as 2,130 ha in 2019) and Chapada’s footprint are conducted at least annually due to COVID-19 travel restrictions. area has been revised due to improved data collection methods. This restatement does not result in any material effect. Monitoring and Surveillance: by the Designer / Engineer of In their absence, online progress All sites employ monitoring and Record, and reports are issued workshops with the independent surveillance systems, which may to the Responsible Person for reviewers and Designer / Engineer include surface prisms, piezometers, action on recommendations. of Record were performed to OUR NEXT STEPS inclinometers, accelerometers, closely track progress made on remote sensing and other outstanding recommendations. • Align existing Lundin Mining tailings-related policies and standards technologies to monitor tailings with the GISTM requirements. dams and water levels. • Conduct gap analysis and implementation support workshops for GISTM site-level implementation action plans in 2021. • Approve Waste Management Standard and associated Geochemical Waste Characterization Procedure, with the corporate rollout in 2021 for subsequent adoption by all operations.

LUNDIN MINING 2020 SUSTAINABILITY REPORT ENVIRONMENT 78 79 ENVIRONMENT

WATER STEWARDSHIP Our corporate Water Management Standard represents Our water-related risk assessments are founded on the For our operations with regulated discharges, an integrated MATERIALITY a holistic risk-based approach to effective management understanding that continued access to water is dependent on system of water treatment processes and procedures is Responsible use and stewardship of water is a of water throughout the life cycle of our operations from a successful balance between each operation’s requirements designed and in place. With this system, our operations material topic for Lundin Mining because a significant exploration through mining and mineral processing to and its individual regulatory, social and environmental context. strive to comply with their water discharge license quantity of this shared resource is required for our mining post-closure. Lundin Mining’s sites are in diverse climatic The views of our stakeholders, obtained through routine requirements. We recognize the importance of meeting and mineral processing operations, and much of that water zones and natural environments with varying proximity to engagement and formal grievance mechanisms, are valued these requirements, not only for regulatory purposes but is returned to the natural environment. Potential impacts local populations. In recent years we have worked to ensure and integrated into our assessment of risk as appropriate. also for protection of the environment and downstream that can occur at the source, point-of-use or downstream that local and regional context underpins our approach to A systematic assessment of water-related risks enables our users. Non-compliances are reported to the Board HSEC are related to water availability, recreational use, ecosystem water stewardship. Evaluation of our management approach operations to track current and emerging risks and prioritize Committee and our sites implement corrective action plans health or community needs. forms part of the RMMS audit process conducted at each controls required to reduce risks to an acceptable level, with to address the underlying conditions for non-compliance, operation. Audit findings are discussed with the site teams, elevation to our corporate risk register for quarterly review with the aim of improvement in the future. OUR APPROACH required adjustments are actioned, and updates are by the Executive Risk Committee. Clean water is vital for maintaining healthy natural reported to the HSEC Committee to ensure a pathway Comprehensive water-quality monitoring is routinely ecosystems, and access to this resource is a basic human to continuous improvement. We report the quality of our water withdrawals and undertaken by all our operations for timely detection of any right. Given that water is essential for our business, we discharges, aligned with the GRI water and effluents standard changes to the water environment that may be attributable strive to sustainably manage this resource through the In 2020, we revised our approach to public reporting on in terms of Total Dissolved Solids (TDS) content, as Freshwater to our activities. When further investigation is required, balancing of our operational requirements with the needs of water to align with the updated GRI 303: Water and Effluents (≤1,000 mg/L TDS) and Other water (>1,000 mg/L TDS). these routine assessments are supplemented by focused the surrounding communities and environment where we 2018 Standard, which applies standardized metric definitions Priority substances of concern in our discharges are primarily studies and modelling. Assessment of cumulative impact is operate. In our RMP, we commit to assessing the risks and widely used in the mining and metals sector. This will create defined by site-specific permits and national legislation a requirement of our updated Water Management Standard impacts of our activities and integrating these considerations a new baseline for our data; therefore, we are not reporting applicable to receiving environments. Where a permit is and impacts on other water users are monitored through into our planning, operating and business decisions. We annual trends for water metrics this year. However, these required, conditions are typically defined by regulatory stakeholder engagement mechanisms and a co-operative recognize the value of water as a shared resource and are will be reported in the future as our database increases. We authorities during the permitting process, supported by working relationship with relevant government departments committed to responsible water stewardship, implementing report our interactions with water for our operational sites, baseline monitoring data and risk assessments of impact and third-party suppliers. a comprehensive water management planning process that desalination facility and ports, including diversions where we on the receiving environment. At Chapada, monitoring is is designed to minimize any detrimental impact on water manage water that passes directly from a withdrawal source conducted both on site and in the Rio dos Bois, which receives resources, water users and receiving environments. to the receiving environment without entering operational surface runoff and seepage from the site. These results are systems. Non-contact diversion volumes and water that we referenced against Brazilian surface water quality standards supply for the benefit of local communities are excluded to confirm that runoff is not adversely impacting the river. from our water accounting and reported separately.

Punta Padrones at Caldera, Chile

Dust monitoring at Zinkgruvan, Sweden Setúbal Port, Portugal

LUNDIN MINING 2020 SUSTAINABILITY REPORT ENVIRONMENT 80 81 ENVIRONMENT

OUR INTERACTIONS WITH WATER 2020

Potable use

Mineral processing WATER Volume WATER Volume SOURCES (ML) Dust suppression Mine dewatering DESTINATIONS (ML) OPERATIONAL WATER Surface water 872 INTERACTION Surface water 17,741 (Lakes, reservoir) (Rivers, creeks) Precipitation 53,600 Mining Water treatment Groundwater 798 Groundwater 8,924 Water recycling Seawater 5,028 (Mine infiltration, wells) and reuse Third-party 0.7 Seawater 8,794 organizations Water entrained in ore 1,657 Total Water Discharge 23,567 ML Third-party water 966

Total Water Withdrawal 74,813 ML Defined as: Water returned from the site or operational facility to the water environment or a third-party (includes Defined as: Water received by the site or CONSUMPTION Volume seepage and runoff) operational facility from precipitation, the Includes 12,467 ML water environment or a third-party supplier (ML) change in storage

Water monitoring at Zinkgruvan, Sweden © Booted eagle (Águia-calçada) at Neves-Corvo, Portugal Total Water 38,779 ML Consumption

Defined as: Water not returned to the OUR PERFORMANCE Late in 2020, a corporate initiative for an improved water environment or a third-party Strategy and procedure and holistic reporting of water stewardship was launched In 2020, several initiatives were implemented to advance internally. The aim is to develop a comprehensive corporate strategic planning for water management. Our Company-wide water management tracking system to corporate Water Management Standard was refined, and improve our understanding of key water management a program of training and support was provided to each challenges and to assess our overall water risk profile. operation to facilitate site alignment. In addition, projects Coupled with our Water Management Standard, this Diversions Volume (ML) will better-position the Company to plan its water to further support the integration of water management Water management to maintain environmental flows / quality (Eagle, Zinkgruvan) 1,488 stewardship efforts. into the risk profile were initiated. We developed an internal Aquifer dewatering with direct release to surface water (Chapada) 14 corporate KPI for a reduction in water-consumption intensity Interactions with water as a shared resource at each operation over three years, and our operations Defined as: Water that is diverted away from or actively managed by a site but not used for any operational purposes set internal, site-specific, water-related goals appropriate Our mines rely on a range of sources of water for operational to their individual circumstances. and potable needs. Annual precipitation patterns strongly influence the quantities of water that our operations Community Water Volume (ML) The potential impacts of changing weather patterns, manage. Some manage an excess of water due to higher Potable and agricultural water supplied to communities 368 including more frequent and more intense weather events, precipitation levels, others are subject to strong seasonal in changing climatic environments are widely acknowledged variations or arid conditions. The nature of our sites is in the mining sector. In 2020, we launched a Company-wide such that not all our withdrawal is intended for use by our commitment to integrate climate-related risks into our operational facilities. A significant proportion of rainfall and broader risk framework and approach to water management snowmelt received by our sites is necessarily managed, but Notes: not used. Operational water for Candelaria is sourced from Primary withdrawals and discharges are metered, while some other flow rates are derived from manual readings. Some flow rates are determined by water planning. A climate change vulnerability assessment was balance calculation based on metered flows and using probabilistic models. Precipitation is determined based on annual precipitation data, surface catchment conducted for each of our operations that incorporated the sea via the operation’s desalination facility. In recognition areas and runoff coefficients to account for natural infiltration. Entrained water is the volume of water in the ore which necessarily enters the mineral processing issues such as resilience of site water management of the importance of responsible water use at our mines, plant, calculated based on average ore moisture content and tonnes milled. Third-party volumes are derived from invoices for metered or trucked water. infrastructure, processes and procedures, essential our water sources are significantly supplemented by process Consumption losses include evaporation, water used for dust control and drilling, water retained in tailings and waste rock deposits, stored water and transportation networks, and security of water resources. water reclaimed from our tailings facilities and water moisture in shipped concentrate. Change in water storage is integrated into consumption calculations for a consistent consumption calculation approach treatment plants for reuse by our operations. across all operations.

LUNDIN MINING ENVIRONMENT 82 83 ENVIRONMENT

Our Company-wide water withdrawal Water Withdrawal by Water Discharge1 by Operation for 2020 is presented on an operational, Operation and Source 2020 and Destination 2020 source and water quality basis in the

following charts. 60,000 18,000

Our 2020 water withdrawal was 50,000 15,000 dominated by precipitation and natural groundwater infiltration into 40,000 12,000 the open pits at Chapada and by seawater abstraction at Candelaria’s 30,000 9,000 Megalitres desalination facility. We seek to Megalitres minimize our withdrawals, in particular 20,000 6,000 our freshwater withdrawals, although 10,000 3,000 some volumes that we manage, such as

precipitation and natural infiltration into 0 0 our mines, are beyond our full control. Surface Precipitation Seawater Groundwater Entrained Third-party Surface Seawater Groundwater Third-party Probabilistic models were developed Water Water Water Water (Chapada) and refined (Eagle Mill and Neves-Corvo) in 2020 to provide a Candelaria 0 0 8,794 847 512 165 Candelaria 0 5,028 0 0 greater depth of understanding of Chapada Candelaria0 49,943 0 6,665 990 0 Chapada 13,989Candelaria 0 471 0 Humboldt Tailings Disposal Facility at Eagle, Michigan, USA overall site water balances and enable Eagle Chapada0 869 0 565 8 0.1 Eagle Chapada1,678 0 188 0.7 opportunities to be evaluated for continuous improvement in operational Neves-Corvo Eagle0 1,338 0 214 111 779 Neves-Corvo Eagle0 0 139 0 Our Company-wide water discharge for 2020 is presented efficiency, water reuse and recycling. Zinkgruvan Neves-Corvo872 1,450 0 632 36 22 Zinkgruvan 2,073Neves-Corvo 0 0 0 on an operation, destination and water quality basis in the Candelaria and Zinkgruvan have also Zinkgruvan Zinkgruvan accompanying charts. continued to track their water balances Our 2020 discharge was dominated by the release of runoff in detail, with Zinkgruvan achieving and seepage that was not used at Chapada and by the a 34% reduction in withdrawal from return to sea of 57% of the seawater that was withdrawn freshwater lakes and Candelaria 1 into Candelaria’s desalination facility, the balance being seawater intake being reduced by Water Withdrawal by Water Discharge by Destination pumped to the mine for operational use. Eagle discharged approximately half compared to the Source and Quality 2020 and Quality 2020 treated water to the local surface water course at the mill previous year. 60,000 18,000 site and through infiltration beds to groundwater at the mine site, under licence. Zinkgruvan’s effluent passes through a 50,000 15,000 primary treatment pond prior to discharge to the local creek.

40,000 12,000 Compliance There were five isolated incidents of non-compliance 30,000 9,000 with specified limits for certain parameters in our Eagle

Megalitres Megalitres operation’s discharges and three related to environmental 20,000 6,000 groundwater monitoring in 2020. Eagle notified authorities on each occasion and adjusted its practises to minimize 10,000 3,000 the potential for recurrence. Zinkgruvan manages its

0 0 operational discharge with reference to provisional guidelines that are currently under review in consultation Surface Precipitation Seawater Groundwater Entrained Third-party Surface Seawater Groundwater Third-party Water Water Water Water with authorities. Challenges experienced by the Company during 2020 resulted in prolonged periods when some Freshwater 872 53,600 0 7,437 0 966 Freshwater 3,527 0 188 0 metal concentrations exceeded the guideline levels. While Other Water Freshwater0 0 8,794 1,487 1,657 0 Other Water 14,213Freshwater 5,028 610 0.7 Zinkgruvan is making efforts to improve the quality of its discharge in the short term where practicable, these issues Other Water Other Water are expected to continue to some extent while investigations and pilot-scale testing are being conducted to ensure development of an appropriate water treatment solution.

1 Water returned from the site or operational facility to the water environment or a third-party (includes seepage and runoff).

LUNDIN MINING 2020 SUSTAINABILITY REPORT ENVIRONMENT 84 85 ENVIRONMENT

Risks and opportunities Water Withdrawn from Water-Stressed Due to the arid climate in this region In 2020, to enhance our assessment Areas by Source and Quality 2020 and the need for local authorities of water-related risks, we introduced to ensure the continued availability

systematic catchment baseline water 10,000 of sufficient potable water for the stress profiling of our withdrawal source community, competition for potable water has been identified as a risk areas and discharge destinations. Based 8,000 on the Water Resources Institute (WRI) for our Candelaria operation. The Aqueduct Water Risk Atlas, Candelaria Company minimizes its effect on the 6,000 and its desalination facility / port local groundwater aquifer by meeting operations at Punta Padrones are operational water requirements entirely located in the North Chile, Pacific Coast Megalitres 4,000 through supply from its desalination Basin, which is designated as an area of facility. Currently, potable water for “arid & low water use.” Our Neves-Corvo 2,000 mine personnel is supplied by local mine is not located in an area of water third-party organizations, sourced from the groundwater aquifer. The operation stress; however, it receives operational 0 continues to plan for its commitment to water from the Santa Clara reservoir, Seawater Groundwater Entrained Third-party meet its total water demand, including a third-party resource located in the Water Water Biodiversity expert José Godinho at Neves-Corvo, Portugal potable supplies, from the desalination Portugal, Atlantic Coast Basin, which Freshwater 0 0 0 944 facility by July 2025. In the meantime, is designated as an area of “extremely Candelaria collaborates with local high” water stress. The operation also Other Water 8,794Freshwater 855 512 0 In 2020, due to drought-like conditions, Our remaining operations are not authorities and the supplier to ensure receives third-party potable water the Santa Clara reservoir recorded located in water-stressed areas; Other Water pressure on this important community and withdraws water from a well water levels much lower than historical nevertheless, there remains a resource is minimized. Groundwater averages and experienced increased strong focus on minimizing any risks at the Setúbal port facility, located that infiltrates naturally into the in this same water-stressed area. drawdown from the surrounding associated with adverse impact on underground Alcaparrosa mine must communities. Neves-Corvo has water resources, other water users, be removed for operational reasons and Including seawater drawn into The breakdown of water withdrawal in areas of water stress according to prioritized action in recent years to and receiving environments. the Company mitigates for this by no Candelaria’s desalination facility, we operation is as follows: reduce reliance on this freshwater longer routinely abstracting water from withdrew 11,105 Megalitres (ML) of resource through a comprehensive A primary water-related risk at Chapada its groundwater well, in accordance with is associated with the management water in areas with water stress. If the upgrade of water management Candelaria Withdrawal in Neves-Corvo Withdrawal in permitting requirements. Withdrawal of of contact water from waste rock seawater withdrawal is excluded, this infrastructure and procedures, Water-Stressed Area 2020 Water-Stressed Area 2020 the moisture which is naturally present storages that contain material classified sum reduces to 2,311 ML or 3% of our improving water reuse and recycling at (10,319 ML) (786 ML) in the ore when it enters the mills as potentially acid-generating. The total Company-wide water withdrawal. the site. In 2020, a study was initiated for processing (entrained water) Company is addressing the risk of The sources and quality of water 165 ML 8 ML to investigate an additional treatment 512 ML 1 ML is unavoidable. potential contamination of surface and / withdrawn from water-stressed areas option to enable freshwater to be 847 ML 8,794 ML replaced by treated water in some or groundwater resources by developing are in the accompanying chart. We The potential for impact on the marine operational areas. The Company was an ARD management strategy based did not directly withdraw precipitation environment, on community relations 777 ML also investigating alternatives to the on a site-wide water balance model, from water-stressed areas. and legal challenges associated with Santa Clara resource, both for potable ongoing geochemical characterization the seawater intake and discharge water and the balance of operational of all materials, water monitoring, and at the desalination facility have also water. Neves-Corvo does not discharge improvement of waste management been identified as risks. Candelaria’s to any water-stressed area. practices. This process was ongoing only water discharge arises from through 2020, in consultation with the commitment to use seawater as Our total water consumption (water relevant authorities, and will form opposed to the local aquifer resource withdrawn and not returned to the the basis of an ARD management Seawater Groundwater (port well) for operational purposes; as for environment or a third-party) from areas plan aligned with Lundin Mining’s Groundwater (mine infiltration) Third-party Water the original seawater withdrawal, with water stress is given in the table: environmental standards and policies. (groundwater source) Ore Entrained Water this regulated discharge from the Third-party Water desalination facility to sea is classified Third-party Water Water (surface water source) (groundwater source) as Other water in terms of quality. The Consumption Megalitres Company manages these risks by undertaking routine marine monitoring Candelaria 5,291 programs to enable early detection (71% was seawater) of any changes to aquatic populations Neves-Corvo 787 and regularly engaging with community and industry groups. Total 6,078

LUNDIN MINING 2020 SUSTAINABILITY REPORT ENVIRONMENT 86 87 ENVIRONMENT

We recognize that the diversity of natural environments in which our operations are located presents unique opportunities as well as challenges. Currently, some of our operations are able to utilize their water management infrastructure to provide water to local communities. Neves-Corvo supplies both potable water and water for agricultural use to several local communities, and in 2020 Candelaria, in accordance with permitting requirements, started supplying water from its desalination facility for agricultural use in Copiapó Valley (Sector 5). Our Eagle and Zinkgruvan operations manage water for environmental outcomes in accordance with their permits.

Our operations regularly collaborate and develop partnership opportunities to further research and scientific understanding of their local aquatic habitats. Neves-Corvo partners with several Portuguese universities, and Candelaria commissions marine monitoring. Opportunities for meaningful engagement with communities on water-related matters are also valued by our operations, examples being COVID-19 measures at Caldera Port, Chile community monitoring programs at Eagle, our exploration site in Peru, and engagement with fishing communities local groundwater systems is important. Evaluations are Illustrations © José Godinho, biodiversity expert at Neves-Corvo, Portugal in the Punta Padrones region. progressing, guided by the Environmental Court–approved Impacts schedule that allows for systematic studies, assessment of The precipitation levels at Chapada controlled and treated to achieve Neves-Corvo mine site increased rapidly We report our principal identified material water impacts seasonal influences on the data, and pilot-scale testing. The result in a need to manage excess regulatory compliance and protection towards the end of the year, increasing and how they are addressed. Neves-Corvo has continued Company anticipates submitting its plans for an appropriate water at the site. The Company has of the local water environment. This the risk of unplanned discharge to the to monitor a localized biodiversity impact in the Oeiras River solution to authorities in late-2022, with final discharge developed a strategy for addressing risk is managed through the team’s Oeiras River. Investigations were in arising from the Company’s permitted water discharge to permit limits being defined by mid-2026. Zinkgruvan the risk associated with excess water technical and operational expertise process at the end of 2020 to evaluate the river. To reduce the potential for impacts, the operation hosts quarterly meetings with local residents and other that has resulted in the installation founded on the site probabilistic options to reduce the volumes stored, suspends the discharge when there is no flow in the river. In stakeholders for sharing of information and concerns, with of high-capacity evaporators and the water balance model, which has been including initiating the purchase of 2020 Neves-Corvo conducted a screening level Site Specific a subsequent compilation of action plans, as required. installation and commissioning of reviewed and further refined in 2020. high-efficiency evaporators. Risk Assessment associated with discharge to the Oeiras dewatering wells to reduce the volumes River, which will be further developed in 2021.This remains of groundwater infiltrating naturally Water-related risks being managed by For Zinkgruvan, the most significant a particularly high priority for the mine because the river to the South Pit, thereby reducing the Neves-Corvo include the acid-generating water-related risk is the potential is in the Guadiana Delta Basin where both the tributary OUR NEXT STEPS amount of contact water that needs potential of the ore and waste rocks, to impact local community water system and the Guadiana Valley Natural Park have to be managed. In consultation with the proximity of the Oeiras River to the supplies and ecosystems due to protected status. No site discharge-related impacts • Develop an action plan at each site for its most regulatory authorities, Chapada has also mine site, and the presence of an area effluent discharges to a local stream. have been identified in the Guadiana River. significant water-related risks as identified through initiated a process for assessing options groundwater system that is part of a The Zinkgruvan mineral deposit has its climate change vulnerability assessment. Zinkgruvan has continued to work with relevant authorities for water discharge to Rio dos Bois. significant aquifer connecting to local been continuously mined for over water supplies and the Oeiras River. 160 years and, typical of many historical after detecting an increasing trend in groundwater sulphate • Ensure these risks are captured in the broader Our Eagle operation uses a technique To support effective management of mining areas, water quality and aquatic concentrations in the vicinity of the mine. Although the levels Risk Management Framework. were below the Swedish EPA trigger values, we recognize known as subaqueous deposition for these risks, Neves-Corvo progressed health impacts have been observed • Conduct RMMS audits of corporate Water the importance of understanding and minimizing any its tailings, whereby a depth of water various environmental studies locally. The focus is to manage current Management Standard implementation at all sites. is maintained over the tailings to during 2020, including a site-wide operations such that the potential for Company-related impact on the Forsaåsen Aquifer. Current control the generation of ARD at the hydrogeological investigation. adverse environmental or social impact data indicate that mitigation works conducted in the past • Develop a comprehensive internal water tailings storage facility. The operation’s is minimized. Technical studies aimed two years have had a beneficial effect on the aquifer water management tracking system to allow the Company water-related risks are principally Due to higher-than-normal rainfall at fully understanding this risk are quality, and sulphate concentrations in a new municipal well to plan its water stewardship efforts. have been at consistently acceptable levels. Understanding associated with managing the mill’s and operational changes that limited ongoing and discussed on the • Integrate water stewardship into the Sustainability any relationship between the Ekershyttebäcken Creek, water balance such that outputs are the site’s forced evaporation capacity, following page. Strategy and develop corporate goals. the volume of water stored at the which receives the mine’s permitted discharge, and the

LUNDIN MINING 2020 SUSTAINABILITY REPORT ENVIRONMENT 88 89 ENVIRONMENT

We recognize the growing expectations of our stakeholders strategies at our sites. The updated Energy and GHG in understanding our view of how climate change impacts Emissions Standard, in review at the close of 2020, will our business model and strategy, and how our activities also include detailed requirements to set a framework can affect the climate, over the short, medium and long for climate action across our operations. terms. As an energy-intensive sector, and with our current reliance on non-renewable energy sources, we acknowledge Our climate strategy is currently in development and will our contribution and publicly disclose our GHG emissions, form part of the corporate Sustainability Strategy, on also aiming to mitigate the impact of our emissions through which a Company-wide transition plan will be founded to initiatives to increase energy efficiency and reduce our carbon ensure resilience across our business and adaptation in footprint. Equally, we recognize that physical and transition the face of climate change. While our operations are subject risks associated with climate change can have an adverse to significant changes in the energy-input requirements impact on our business and the communities where we associated with their expansion projects and advancing operate. Understanding our Company-wide climate-related mine age, we maintain a strong focus on operational risks and opportunities is becoming increasingly important efficiencies that will support our corporate GHG emissions for our corporate strategic planning and risk management. reduction target. We have developed an internal corporate We continue to embed systems to drive the integration KPI for a reduction in energy intensity at each operation of climate-related risks and opportunities into our over five years. In addition, our operations set internal, Company-wide Risk Management Framework. site-specific, energy-consumption and intensity goals appropriate to their individual circumstances. We plan to © Otter (Lontra) at Neves-Corvo, Portugal © Patridges (Perdiz) at Neves-Corvo, Portugal Our RMMS standard is aligned to ISO 14001 and will be define headline KPIs as part of the development of the amended in 2021 to align with the Mining Association of Sustainability Strategy to support target-setting in 2022. Canada’s (MAC) TSM standard. Our corporate environmental CLIMATE CHANGE, ENERGY disclosure on our climate-related practices, risks and technical standards form the basis for continual improvement In 2020, initiatives were in development to enhance climate AND GHG EMISSIONS opportunities is provided in our annual climate change and enhanced HSEC performance. How our operations awareness across our organization, beginning with a roll MATERIALITY response to CDP, which is aligned with the Task Force manage energy, GHG emissions and interactions with water out to the senior leadership team and the Board in 2021. Climate change and greenhouse gas (GHG) emissions on Climate-related Financial Disclosures (TCFD). are governed by these standards, including within the context The aims will be to provide a foundation for increased are material topics for Lundin Mining due to the of changing climatic conditions in the short, medium and long understanding of climate change science and to reflect the energy-intensive nature of our extractive industry sector, terms. Our updated Water Management Standard includes growing interest from investors, insurers, lenders, regulators associated carbon footprint, and adaptation and mitigation detailed requirements for climate change risk assessments, and policymakers, employees and customers. An improved planning considerations. The Company acknowledges CDP Score 2020: Disclosure / risk & opportunity mitigation and adaptation specifically to ensure these topics understanding of risk in the context of climate will inform climate change as an international concern, and that our awareness and management / leadership are included in current and future water management our strategy and approach to climate action. climate-related disclosures are of increasing interest to our stakeholders. Lundin Mining: B

OUR APPROACH North America Regional Average: C Lundin Mining acknowledges our role in the call for Metallic Mineral Mining Sector Average: C action to reduce GHG emissions, to commit to low- carbon alternatives, and to develop climate resilience, as communicated in the 2015 Paris Agreement on Climate Change and the United Nations’ SDGs, among others. With While acknowledging our responsibility to manage our the submission in 2020 by individual countries and the operational footprint, we also recognize the importance of European Union of updated plans for climate action, known our role in sustainably providing raw materials to support as nationally determined contributions (NDCs), we anticipate the global transition to a low-carbon future. Decarbonization that tighter regulation will follow. We aim to demonstrate will shift demand for key minerals, and the commodities a responsible approach to energy consumption and GHG we mine are critically important in emerging technologies emissions, along with preparedness for regulatory and and innovations. Furthermore, our commodities are physical changes associated with climate change and the widely recycled globally, significantly contributing to transition to the low-carbon economy. Comprehensive the circular economy.

LUNDIN MINING ENVIRONMENT 90 91 ENVIRONMENT

Our risk control procedures require Energy and GHG Emissions that our highest-ranking risks are Our Approach to be elevated for further analysis. Managing energy consumption and An example is the development GHG emissions is a high priority for of climate change mitigation and Lundin Mining as we continue to adaptation toolkits in 2019, and the focus on our climate-related risks and subsequent completion of assessment opportunities and transition to the of vulnerability to acute and chronic low-carbon economy. Our structured physical risks for all our operations, and transparent approach to energy which is to be followed in 2021 by the consumption and GHG emissions development of action plans to address reporting is founded on effective the most significant risks identified. energy-consumption tracking by our operations for a robust corporate Our operations have also identified Greenhouse Gas Emissions Inventory. climate-related opportunities for Details are provided in Appendix B. the support of local communities. In recent years, some of our operations In 2020, Candelaria was working have assisted local government towards gaining certification of its Shiploading at Punta Padrones, Chile departments, emergency services and newly developed Energy Management communities during flood and wildfire System under the ISO 50001 Energy events. Some operations may be in Climate-related Risks In addition, the physical risks of climate Management System standard. a position in the future to assist with and Opportunities change associated with changing Eagle Mine’s operations team has temporary provision of water in the continued to identify opportunities An increasing number of jurisdictions weather patterns may have an adverse event of shortages. Similarly, potential for more efficient energy usage, where have introduced regulatory changes effect at some of the Company’s opportunities could be identified possible, across its sites. In Europe, in response to the potential impacts operations. Our operational sites for maintaining environmental flows both our Neves-Corvo and Zinkgruvan of climate change. Some of the costs are in a range of climatic zones with Aerial view of Candelaria, Chile in water courses and lakes with operations comply with regulatory associated with reducing emissions varying vulnerabilities to both acute associated ecosystem benefits. requirements, completing periodic can be offset by increased energy and chronic physical risks, including energy audits and submitting formal our data, although Company-wide, • electrical power requirements efficiency and technological innovation; extreme weather events; natural Opportunities associated with emerging plans for energy efficiency to national the effect was offset to a degree by underground for ventilation, however, transitional risks can result disasters; resource shortages; changes low-carbon and more energy-efficient authorities. During 2020, Neves-Corvo several other factors, as follows: lighting, hoisting, conveyors, pumps in increased costs at some of our in the patterns and intensity of technologies are also being tracked continued the development of its and other equipment; operations. Other identified risks rainfall and storms; water shortages; by our operations and integrated into Plano Verde (Green Plan) intending Candelaria: Throughput was lower include regulatory changes placing changing sea levels; and changing • fuel requirements at our open-pit our business strategies. Opportunities to provide a framework for strategic due to ore hardness in the first half restrictions on access to certain water temperatures. Due to the dependency mines for haulage of waste rock include fuel-switching, negotiation planning in alignment with national of the year and union strike work resources. Global initiatives related of our operations on supplies of and ore; and of contracts to increase the use of and European commitments to the stoppages in October and November. to climate change may result in new suitable water, the risk for regions renewable and lower-carbon energy environment, including the roadmap to restrictions affecting key supply chain already exposed to shortages can be Chapada: Mill operations were • changing operating conditions over sources, and improving energy efficiency. carbon neutrality and “green growth.” partners, such as the shipping industry considered more severe because of the interrupted in September, time; such as ore characteristics GHG emissions are one of the aspects and mobile fleet. To mitigate impacts effects of climate change. Potential for resumed at a reduced capacity (ore grade, hardness, depth and addressed in the plan, which is to our business, our Corporate office competition with local communities or in early-October and returned accessibility); expansion projects on track for internal approval in 2021. and operations continue to closely increased operating costs may result. to full production in December. (mining and hauling non-mineralized rock and extending into new mine track regulatory developments in their Where this has been identified as a Typical of the global mining sector, Neves-Corvo: Major ZEP areas); construction projects to respective jurisdictions. We developed credible risk, our mines are assessing our operations are energy intensive, construction activities were increase ore processing capacity; climate-related scenario analysis to mitigation initiatives aimed at seeking consuming significant quantities of suspended by Neves-Corvo haulage distances for ore and identify cost scenarios for carbon alternative freshwater sources or fuel and electricity for mining and from March 2020 onward. waste rock; and onsite construction taxes, including emissions projections altering existing water management mineral processing. COVID-19–related projects (new tailings facilities, and a financial stress test. This will be and treatment facilities. Conversely, production disruptions have been When analyzing our energy tailings facility embankment raises, updated to integrate Chapada and extraordinary storm events may result minimal at our operations during 2020, consumption and GHG emissions data, drainage and water-storage projects). reflect recent regulatory changes. in localized flooding impacting mine resulting in minimal impact on our personnel and operations. we acknowledge that key factors result energy consumption and associated in variations between sites and within GHG emissions performance. Inclusion sites from year to year, including: of the first full year of operating data for Chapada post-acquisition influences • relative scale of each operation; • quantity of ore milled;

LUNDIN MINING 2020 SUSTAINABILITY REPORT ENVIRONMENT 92 93 ENVIRONMENT

Energy Consumption The Candelaria Complex, across its Energy Consumption by Operation 2020 Total fuel and electrical energy consumption within Lundin Mining in 2020 was mines, processing plants, desalination 11,264,826 Gigajoules (GJ), representing an increase of 5% compared to 2019. facility and port site, is our largest 7,000,000 The increase was driven by the inclusion of Chapada for 12 months rather than energy consumer. Lundin Mining’s 6,000,000 6 months as reported in 2019. Across the Company, we consumed slightly more total energy consumption was strongly fuel energy than electrical energy in 2020. Most of our fuel energy consumption influenced by the scale of Candelaria, 5,000,000

was from diesel, with relatively minor amounts from propane / LPG, gas oil, as 61% of our total fuel energy and 4,000,000 gasoline, biodiesel and natural gas. 49% of our total electrical energy were consumed by the complex in 2020. A 3,000,000 10% reduction in energy consumption Energy Consumption (GJ) 2,000,000 Percentage of Energy at Candelaria compared to 2019, Energy Consumption 2020 Consumption by Source 2020 1,000,000 along with reductions or consistent 1% consumption at our other mines, has 0 Candelaria Chapada Eagle Neves- Zinkgruvan Corporate 5,378,305 GJ 48% almost offset the additional six months Corvo of data reported for Chapada this year. Energy from Fuel 3,595,658 1,638,514 319,046 230,440 102,001 862 Our consumption of energy from Within Lundin Mining Energy from Fuel Within Lundin Mining fuel was most influenced by our Energy from Electricity 2,647,600Energy 1,169,841from Electricity 236,807 Within 943,292 Lundin 380,135 Mining 629 open-pit operations, where ore and Within Lundin Mining waste haulage resulted in energy 51% consumption from fuel exceeding that from electricity. Eagle Mine’s Neves-Corvo became our third-largest energy consumer with its 5,886,521 GJ fuel consumption reflected the consumption reflecting its production levels, followed by our two smaller Neves-Corvo mine, Portugal approximate 105 km ore haulage operations, Eagle and Zinkgruvan. As expected, Corporate headquarters’ Energy From Electricity Electricity distance from the mine to the mill. energy use was very low in comparison to our operational sites, reducing Following the acquisition of Chapada, Energy From Fuel Diesel further in 2020 due to COVID-19–related closures. Other Fuels

According to available data from our suppliers, we estimate that approximately 60% of our electrical energy consumption and 4% of our fuel consumption were from renewable sources. Aerial view of Punta Padrones, Chile

Renewable Content Renewable Content of of Fuel Consumed 2020 Electricity Consumed 2020

227,889 GJ

5,658,632 GJ 2,135,916 GJ

Operational Excellence at Chapada, Brazil

3,242,389 GJ

Non-Renewable Non-Renewable Renewable Renewable

LUNDIN MINING ENVIRONMENT 94 95 ENVIRONMENT

Total GHG Emissions: Scope 1 and Scope 2 Candelaria is the largest source of our GHG emissions due 2018 to 20201 GHG Emissions to the scale of the operations, with the contribution from We have altered our approach this year our other mines reflecting their relative scale. Candelaria

1,000,000 and now use Scope 2 GHG emissions and Chapada contribute most of our Scope 1 emissions, calculated using the market-based reflecting the open-pit nature of these operations and their methodology in our comparisons. reliance on diesel for ore and waste rock haulage. Our Scope 2 800,000 emissions continue to benefit from Zinkgruvan’s investment in a 100% renewable electricity supply supported by a Tonnes Guarantee of Origin. In the future, we will also realize the

e 600,000

2 2020 GHG Emissions CO e 2 positive effect of Candelaria’s contractual agreement with Scope 1 458,186 its supplier for an increase in renewables to a minimum of 400,000 80% in the energy mix, prioritizing wind and solar energy, Tonnes CO Scope 2 (location-based) 427,476 commencing in 2023. Chapada’s Scope 2 emissions benefit from the significant percentage of renewable energy sources Scope 2 (market-based) 415,341 200,000 in the supply. Electricity consumption is the greatest source of GHG emissions at our remaining underground operations. 0 Lundin Mining’s GHG emissions broadly Energy and GHG Emissions Intensity correlate with our energy-consumption Scope 1 Scope 2 Total Scope 1+ Intensity ratios allow the analysis of energy consumption Scope 2 trends because Scope 1 reflects emissions and GHG emissions data in the context of an organization- from consumption of fuel while Scope 2 © Wild boar (Javali) at Neves-Corvo, Portugal 2018 366,653 500,999 867,652 specific metric. All metrics can be impacted by factors 2018 reflects emissions from consumption that do not necessarily relate to operational efficiencies, 2019 2019 452,848 480,858 933,706 of electricity. such as type of mine, haulage distances and ore grade or metric, as it enables us to analyze our data in the context 2020 2020 458,186 415,341 873,527 In 2020, our Scope 1 GHG emissions hardness; consequently, interpretation of intensity data of activity at our sites. For 2020, we are also reporting requires careful consideration of context and comparisons the Company-wide production-related metric “per 1 Chapada data included from July 2019. decreased across all operations except for over time are more meaningful than between operations. tonne of copper equivalent” (t CO e / t Cu eq) to facilitate Chapada, with the inclusion of an additional 2 six months of data compared to 2019 At Lundin Mining, we select the “per tonne mined” intensity benchmarking across the mining and metals sector. for that operation, largely attributed to interruptions to normal operations already Scope 1 and Scope 2 GHG Emissions, described. Our Scope 2 GHG emissions also Energy Intensity: 2018 to 20201 by Operation 2020 reflect interruptions to milling operations at Candelaria and Chapada and reduced 0.700 600,000 throughput at Neves-Corvo. Biogenic

CO2 emissions in 2020 are not included 0.600 500,000 in our Scope 1 accounting following GHG Protocol requirements and are reported 0.500 e

2 400,000 separately at 16,724 tonnes CO2, reflecting an increasing trend in renewable 0.400 300,000 content in fuels in Europe and Brazil. Tonnes CO Fugitive-GHG emissions from refrigeration 0.300 200,000 and air-conditioning equipment at our operations are estimated to form a very 100,000 0.200 small portion (less than 1%) of our total GJ Consumed / Tonne Mined

0 Scope 1 emissions. 0.100

Candelaria Chapada Eagle Neves- Zinkgruvan Corporate Corvo 0.000 Candelaria Chapada Eagle Neves-Corvo Zinkgruvan Lundin Mining Scope 1 300,122 110,624 21,717 17,746 7,934 44 Total Scope 1 Scope 2 283,220 20,147 44,883 67,086 0 5 Scope 2 2018 1 Chapada0.074 data includedNA from July 2019.0.516 0.266 0.272 0.092 2019 0.065 0.040 0.541 0.272 0.268 0.071 2018 0.069 0.043 0.638 0.283 0.260 0.069 2020 2019

1 Chapada data 2020included from July 2019.

LUNDIN MINING 2020 SUSTAINABILITY REPORT ENVIRONMENT 96 97 ENVIRONMENT

A decreasing trend in our Company-wide GHG Emission Reduction and water to heat mine-ventilation air; switching to diesel fuels energy intensity has continued in Energy Conservation Measures with higher renewable contents; using electric vehicles for 2020, benefitting from the addition During 2020, approximately 40 initiatives were assessed certain aspects of operations; and moving from fossil fuel to of Chapada to our mining portfolio. and / or implemented Company-wide, aimed at reducing biofuel for heating. Our Zinkgruvan operation renewed its Chapada has a low intensity level both Scope 1 and Scope 2 emissions at our operations. contract for a 100% renewable energy source for electricity arising from the movement of We worked with the Coalition for Eco-Efficient Comminution supply, maintained since 2017. significant quantities of material (CEEC) to develop energy curves for all our operations as a over relatively short distances. diagnostic tool for optimization of comminutions, as part of Our Corporate office continued to participate in Candelaria’s intensity levels also a drive to pursue process improvements in milling across the ForeverGreen, a tenant-engagement program that includes reflect the large tonnage of ore and Company’s operational profile to reduce Scope 2 emissions. energy efficiency and carbon emission reduction as core waste rock excavated, although the Additional initiatives being assessed include modifications components, and we continue our sponsorship agreement haulage distances are greater. Our in our mills; switching to solar power for certain aspects of with CEEC for the promotion of industry uptake of underground operations do not our activities; and operating equipment on demand, such energy-efficient, lower-footprint mining. Operational benefit from such efficiencies of scale, as pumps, ventilation and lighting. Fuel projects undergoing systems to enhance data collection on these initiatives especially those located in colder assessment included optimization of truck fuel consumption; require further development, as currently, the benefits climates, which require additional building-heat conservation and heat recovery from mine of several implemented initiatives are not quantified. energy for heating. Eagle’s energy intensity using this metric reflects the fact that over 60% of its energy Energy Consumption Outside Lundin Mining and Scope 3 GHG Emissions in 2020 was consumed for heating As a step towards tracking selected Scope 3 GHG emissions associated with our value chain, we calculate energy and hauling ore. The mine’s increased consumption and GHG emissions associated with some transport activities that take place beyond our project boundaries energy intensity reflects the mining to support our operations. Full-year reporting for Chapada, as opposed to six months in 2019, and improved tracking of smaller quantities of waste rock in of fuel used by contractors for these activities have resulted in elevated Scope 3 emissions compared to 2019. In 2021, 2020 and the increased proportion Mill site substation at Eagle, Michigan, USA we will formulate a strategy for expanding our evaluation of Scope 3 GHG emissions to be implemented in 2022. of ore sourced from the deeper Eagle East resource. Energy intensity Energy Consumption Outside Lundin Mining and Scope 3 GHG Emissions 2020 increased at all our operations except 1 GHG Emissions Intensity: 2018 to 2020 for Zinkgruvan in 2020, attributed to Scope 3 Category1 Description Energy Consumed Scope 3 GHG Emissions operational interruptions resulting Category 4: Upstream Transport of concentrate and some 527,4 42 GJ 36,138 t CO e 0.080 in reduced activity that was not 2 proportionately reflected in reduced Transportation and Distribution of our most significant imported 0.070 energy consumption. raw materials. Category 7: Employee Commuting Transport by bus of some personnel. 35,069 GJ 2,511 t CO e 0.060 The decreasing energy intensity 2

0.050 trend for Lundin Mining overall is also observed for GHG emissions 1 Categories defined in the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. 0.040 intensity, again with a relatively low

e / Tonne Mined GHG emissions intensity at Chapada 2 0.030 and Candelaria reflecting large-scale

0.020 movement of rock and the relatively high Tonne CO intensity at Eagle reflecting emissions OUR NEXT STEPS 0.010 associated with heating and ore haulage. Renewable energy content of electricity • Articulate our approach to climate strategy within • Formulate a strategy for expanding evaluation of 0.000 grids also influences these data, as does the context of our developing Sustainability Strategy. Scope 3 GHG emissions for implementation in 2022. Candelaria Chapada Eagle Neves-Corvo Zinkgruvan Lundin Mining Zinkgruvan’s continued commitment Total to invest in a carbon-free electrical • Continue to acquire data and knowledge relevant • Achieve certification of Candelaria’s Energy 2018 1 Chapada0.007 data includedNA from July 2019.0.063 0.027 0.005 0.009 energy source. Our 2020 Company-wide to the development of meaningful targets as part Management System under ISO 50001. product-related GHG emissions of the Sustainability Strategy. 2019 0.006 0.002 0.069 0.023 0.005 0.006 • Approval and implementation of Neves-Corvo’s 2018 intensity value is 2.22 tonne CO e/tonne 2 • Participation of corporate senior management Plano Verde in 2021. 2020 0.006 0.002 0.076 0.020 0.004 0.005 copper equivalent. 2019 team and Board members in a climate awareness • Develop an action plan at each operation for its 1 2020 workshop in 2021. Chapada data included from July 2019. most significant risks as identified in the climate • Conduct investigation to assess potential pathway vulnerability assessments. towards net zero carbon emissions.

LUNDIN MINING 2020 SUSTAINABILITY REPORT 98 99 ENVIRONMENT NON-MATERIAL TOPICS

The closure-related financial provisioning and accrual Several sustainability topics which we recognize can be effectiveness of these measures. Emissions of NOx and SOx details are provided in Lundin Mining’s most recent AIF. relevant to the mining sector were not identified as material are regulated under national laws or regulations, including Our Mine Closure Planning Standard, updated in 2019, during our materiality assessment process. Since these may those listed on environmental permits, at our Chapada, requires the use of a risk-based approach to closure be of particular interest or concern to local communities Eagle and Neves-Corvo operations. Emissions are controlled planning and the definition of site-specific closure objectives and other stakeholders, we include some information using appropriate technologies, mitigation measures and and completion criteria for each operation. The document concerning these subject areas in our report. associated monitoring. requires that closure plans be developed to a level of detail that reflects the stage of each mine’s life cycle, and they AIR EMISSIONS, NOISE AND VIBRATION Lundin Mining continues to manage noise and vibration are updated in accordance with the Standard or when OUR APPROACH emissions from our sites, employing noise-mitigation required due to operational changes. The Standard includes Lundin Mining’s objective is to minimize disturbance works where required, restricting activities with greater objectives relating to long-term water and land stewardship, to our neighbouring communities and the surrounding noise emissions to daytime hours wherever possible, and requiring the definition of post-closure land uses, employee environment from emissions of air pollutants, noise and informing local communities of blasting times in advance. and public safety, chemical and geotechnical stability, vibration. Management of oxides of nitrogen and sulphur OUR PERFORMANCE post-closure monitoring and aftercare, post-closure land (NOx and SOx) and particulate emissions (dust) by mining ownership and tenure, temporary closure and unplanned operations is important for employees and contractors, Although Chapada, Eagle and Neves-Corvo have regulated NO and SO air emissions, Chapada was the only operation premature closure. Stakeholder participation is integral to the surrounding communities and the environment. x x our closure planning process. During 2020, Lundin Mining required to undertake compliance monitoring in 2020, and full initiated a program to conduct third-party reviews of closure Our operations have controls and procedures in place compliance was achieved. In 2020, all our operations were in plans at all our operations. Zinkgruvan and Neves-Corvo to manage emission of particulates within and beyond full compliance with regulated limits for particulate emissions. closure plans were reviewed in 2020. We will complete the our site boundaries, as well as associated monitoring to Candelaria monitors particulates at official Community Status program, conducting reviews at Candelaria, Chapada and allow the effectiveness of controls to be routinely assessed monitoring stations in the communities of Tierra Amarilla, Eagle Mine, in 2021. and adjusted if required. Controls include the application Caldera and the suburb Nantoco. Since the data collected of water and binding agents, sprinkler systems, wheel represent the cumulative effect of a range of sources of © Lizard (Sardão) at Neves-Corvo, Portugal Lundin Mining actively manages the former Storliden mine washes and sweepers, covering of concentrate and other particulates in the region, including from other mines and a in northern Sweden, which was closed in 2008. We are materials for transport, and dust capture systems and smelter, authorities do not consider exceedances of limits currently in the process of finalizing human health and air filters in indoor areas. Documented procedures and recorded at these monitoring stations to be non-compliances RECLAMATION AND CLOSURE ecological site-specific risk assessment of the closed site. associated training of personnel as to the circumstances for Candelaria. In addition to compliance monitoring required MATERIALITY under which action is required are critical to the at some of our sites, particulate matter is routinely measured Reclamation and closure are material topics for Social Aspects of Mine Closure Planning to assess impacts from our Neves-Corvo operation in the Lundin Mining due to the nature and scale of potential Mine closure plans that incorporate both physical neighbouring villages of Graça, Corvo and Neves. environmental and social impacts that can occur if the rehabilitation and socio-economic considerations are an decommissioning, closure and post-closure monitoring integral part of the mine life cycle. Mines should be designed and maintenance of mine sites are not performed reliably. so that future public health and safety are not compromised, Potential impacts can occur at, close to, or downstream / after-use of the site is beneficial to affected communities, downwind of the mine site and can affect communities, and adverse socio-economic impacts are minimized while soils, water, air quality and ecosystem value. socio-economic benefits are maximized. In 2020, Eagle continuously engaged in closure planning with stakeholders, OUR APPROACH such as regulators, authorities, local business owners, Closure planning is progressed at sites and financial school representatives, and the Keweenaw Bay Indian provisions updated accordingly. Lundin Mining plans for Community, despite the challenges presented by COVID-19. closure from the earliest stages in the life of our mines, As a result of this engagement, Eagle has identified viable ensuring allocation of adequate resources for closure changes to its closure objectives to reflect better activities to be properly implemented, managed and outcomes for stakeholders. monitored throughout the active-closure and post-closure phases. We take an integrated approach to mine closure Candelaria mine site, Chile planning with the aim of designing, developing and operating our mines to minimize environmental and social impact OUR NEXT STEPS upon their eventual closure. Lundin Mining’s operational and closed sites have mine closure plans. • Continue to actively plan for closure of Eagle Mine in 2025 as scheduled in the most recent Life Our closure plans are required to address legal obligations of Mine Plan. and corporate commitments, financial provisions, community interests, the environment and employees’ • Update Eagle Mine social closure plan to outline expectations once the mine is closed. Lundin Mining has more detailed programs to support revised implemented financial provisions for mine closure following closure objectives. legal requirements and the respective Company policies.

LUNDIN MINING ENVIRONMENT 100 101 ENVIRONMENT

Candelaria is in an arid area with Corporate Noise and Vibration Guidance Our Zinkgruvan operation is in an area limited natural vegetation and which was developed for internal review in with a long history of mining, and recent hosts several other industrial and 2020 to form a broad strategy for the fugitive-dust investigations suggest agricultural operations, resulting mitigation of impacts. Noise-mitigation there is a potential human health in considerable latent particulate initiatives undertaken in recent years exposure risk from some heavy metals matter in the air. Candelaria employs at Neves-Corvo and Zinkgruvan have on some garden produce. The findings processes and technology to monitor continued to improve compliance. were reported to ÖCAB and confirmed and manage air quality impacts and Provisional guidance values for by local health authorities (AMM) in regularly reviews and updates them. vibration from blasting were exceeded March 2020. Zinkgruvan management In 2019, Candelaria became aware that at a single location on one occasion informed impacted residents in the Ministry of the Environment had at Zinkgruvan in 2020. Following an early-April, information pamphlets commenced a technical review of the internal investigation, the incident prepared with ÖCAB were distributed air quality of the Copiapó and Tierra was deemed a one-time event. Future to residents, and mitigation measures Amarilla areas to determine if they blasting in the area in question will be were published on the AMM website. might be declared a saturated zone for fully reviewed to assess the need for Fugitive-dust evaluations continue purposes of Chilean law. In response, any adjustments. A single night-time per the Environment Court–approved local industry and government agreed noise measurement at Zinkgruvan also schedule to allow for systematic studies to work together to voluntarily develop exceeded the provisional guideline level that will form the basis of an appropriate and propose mitigation measures that at one monitoring location. Zinkgruvan’s long-term dust management plan. The would remove the need to formally noise and vibration studies, along with Company anticipates submitting this declare the area as a saturated zone. recommended final permit limits, were plan in late-2022, with final permit limits submitted to the local county board to be defined by mid-2026. Additional (ÖCAB) for approval in 2020. dust mitigation measures on site, such as the establishment of green barriers and water suppression in © Fox (Raposa) at Neves-Corvo, Portugal summertime, have been approved by ÖCAB and implemented. BIODIVERSITY AND LAND OUR PERFORMANCE OUR APPROACH In 2020, Lundin Mining reviewed dust Our operational sites prepare and programs at all operations to assess We recognize the importance of update their biodiversity action current methodologies, evaluate our role in biodiversity stewardship – plans on an annual basis, identifying gaps and opportunities, establish a contributing to the proper assessment biodiversity risks and opportunities global baseline, and determine best of biodiversity conditions, minimizing and informing the development practice across the Company. The study habitat degradation, and planning of operational plans at each site in concluded that no single solution is for habitat restoration during the alignment with the Company standard. suited to all sites, and tailored integrated life of mine cycle. Our operations conduct routine management systems have greatest flora, fauna and aquatic surveys, as Our objectives for biodiversity potential. In 2021, work will focus on appropriate, to identify species of management include considering assessing dust suppression technology, interest and to monitor habitat health, biodiversity-related information and including thorough quantitative biodiversity and any changes that management systems during due assessment and trial studies. could potentially be attributable to our diligence assessment programs, operations. Supplementary surveys undertaking baseline studies to are undertaken periodically to support document conditions before the new permit applications for extensions development of new mines or significant of a mine site footprint, with relocation expansion beyond a mine’s current programs for selected species footprint, and monitoring the effects of where required. our biodiversity management programs. We aim to promote sustainable At Candelaria’s port operations, management of living natural resources complementary programs support through partnerships that seek to marine rehabilitation, restoration integrate conservation needs and and replantation programs to ensure Underground at Neves-Corvo, Portugal Photo credit: © PWC Lisboa Portugal development priorities, including sustainable use and management community-based knowledge in our of marine areas. planned activities, where available.

LUNDIN MINING 2020 SUSTAINABILITY REPORT 102 103 ENVIRONMENT APPENDIX A: Key Performance Data

Chapada is located within a cerrado of the Oeiras River and downstream Species of Interest HEALTH & SAFETY STATISTICS 2020 aberto baixo, or low, open, savannah catchment habitat is one of the Habitats hosting three critically region of Brazil. There are no protected highest environmental priorities endangered and thirteen endangered Employees Contractors areas within the property boundaries or for Neves-Corvo as it continues its species, as defined by the International Male and Female Male and Female Total in the region surrounding the operation. long-standing partnerships with Union for Conservation of Nature (IUCN) Prior to the development of the mine, Portuguese universities, national Red List and national conservation Candelaria 3,340,093 Employee Hours 8,012,888 Contractor Hours 11,352,981 Hours Worked the land was zoned as a legal reserve. conservation organizations and natural lists, can be found in regions where we When the zoning was changed to permit park authorities to support river have operations. The monitoring and Total Recordable Injuries 4 11 15 mining, the legal reserve was relocated health and assist in the protection of protection of all Red List species are Injury Rate (TRIF) 0.24 0.27 0.26 approximately 23 km north of the site; endangered and vulnerable species. addressed in the relevant biodiversity Occupational Diseases 13 0 13 this 1,650 hectare forest reserve is management plans developed and Occupational Disease Rate 0.78 0 0.23 managed by Chapada, along with an In Sweden, part of our Zinkgruvan implemented by each site. Lost Workdays 101 440 541 environmental education centre. A plant operational area lies within the Knalla survey and carbon-capture program Nature Reserve, a popular spot for Land Management Lost Day Severity Rate (SR) 6 11 10 commenced at the site’s reserve in hiking. A minor part of Lake Viksjön At the beginning of 2020, Lundin Mining Work Related Fatalities 0 0 0 2019 was not progressed in 2020 due lies within this reserve and our was managing 8,762 hectares of land Chapada 1,237,033 Employee Hours 2,605,103 Contractor Hours 3,842,136 Hours Worked to COVID-19 restrictions. Zinkgruvan operation plays an that we own or lease and occupy with important role in managing the water our mining and processing activities and Total Recordable Injuries 6 6 12 Neves-Corvo’s lands lie adjacent level of the lake while maintaining associated infrastructure, increasing Injury Rate (TRIF) 0.97 0.46 0.62 to the Oeiras River, an area of high the flow rate of a nearby creek within to 8,961 hectares at the close of biodiversity value where both the a valley of high natural value. There the year. Most of the land managed Occupational Diseases 0 0 0 tributary system and the Guadiana are no protected or high biodiversity by Lundin Mining is located at our Occupational Disease Rate 0 0 0 Valley Natural Park have protected value areas within or adjacent to our Candelaria Complex and Chapada. Lost Workdays 69 106 175 status as part of the European Candelaria or Eagle sites. Lost Day Severity Rate (SR) 11 8 9 Natura 2000 network. Conservation Work Related Fatalities 0 0 0

Eagle 377,786 Employee Hours 454,779 Contractor Hours 832,565 Hours Worked

Total Recordable Injuries 1 1 2 Injury Rate (TRIF) 0.53 0.44 0.48 Occupational Diseases 0 0 0 Occupational Disease Rate 0 0 0 NON-MINERAL WASTE Lost Workdays 0 0 0 We recognize that responsible waste management is important Lost Day Severity Rate (SR) 0 0 0 for the mining sector; management of non-mineral waste at our Work Related Fatalities 0 0 0 operations is formalized through jurisdictional requirements and Neves-Corvo 2,086,164 Employee Hours 1,752,413 Contractor Hours 3,838,577 Hours Worked the implementation of comprehensive waste management plans. These plans specify how the different types of waste produced Total Recordable Injuries 11 11 22 by our activities are to be managed, including identification of Injury Rate (TRIF) 1.05 1.26 1.15 opportunities for waste minimization, recycling and re-use. Occupational Diseases 14 0 14 All waste generated by the Company’s operations in 2020 was Occupational Disease Rate 1.34 0 0.73 stored and disposed of following applicable waste regulations and Lost Workdays (w/o fatality) 124 346 470 site waste management plans; approximately 50% of hazardous Lost Day Severity Rate (SR) 12 39 24 and 90% of non-hazardous materials were either reused, recycled Work Related Fatalities 1 0 1 or composted. During 2020, approximately 37,600 tonnes of Fatality Rate 0.10 0 0.05 non-mineral waste were generated by Lundin Mining, of which 91% * were classified as non-hazardous waste. Our waste-generation Lost Workdays (w/fatality ) 6,124 346 6,470 Lynx (Lince) at Neves-Corvo, Portugal levels have remained broadly consistent over recent years. Lost Day Severity Rate (w/fatality*) 587 39 337

LUNDIN MINING 2020 SUSTAINABILITY REPORT APPENDIX A:KEY PERFORMANCE DATA 104 105 APPENDIX A: Key Performance Data

HEALTH & SAFETY STATISTICS 2020 STAFFING SUMMARY 2020

Employees Contractors Non-Managerial Workforce Male and Female Male and Female Total covered by Non- Employee collective Zinkgruvan 686,507 Employee Hours 244,089 Contractor Hours 930,596 Hours Worked Number of Permanent Temporary Full-Time Part-Time Other National / Turnover bargaining Employees Employees Employees Employees Employees Workers Expatriates (%) agreements (%) Total Recordable Injuries 3 3 6 Injury Rate (TRIF) 0.87 2.46 1.29 Candelaria Male 1,348 1,210 138 1,348 0 68 1 14.2 Occupational Diseases 4 0 4 Female 136 134 2 136 0 39 0 9.6 Occupational Disease Rate 1.17 0 0.86 Total 1,484 1,344 140 1,484 0 107 1 12.5 78 Lost Workdays 41 20 61 Lost Day Severity Rate (SR) 12 16 13 Chapada Male 710 710 0 710 0 0 0 9.3 Work Related Fatalities 0 0 0 Female 88 88 0 88 0 0 0 12.5

Exploration 31,396 Employee Hours 2,345 Contractor Hours 33,741 Hours Worked Total 798 798 0 798 0 0 0 9.6 100

Total Recordable Injuries 0 1 1 Eagle Male 155 155 0 155 0 187 3 10.3 Injury Rate (TRIF) 0 85.29 5.93 Female 41 41 0 41 0 17 0 9.8 Occupational Diseases 0 0 0 Occupational Disease Rate 0 0 0 Total 196 196 0 196 0 204 3 10.2 0 Lost Workdays 0 0 0 Neves-Corvo Male 1,096 876 220 1,096 0 0 21 8.9 Lost Day Severity Rate (SR) 0 0 0 Female 167 113 54 167 0 0 4 11.4 Work Related Fatalities 0 0 0 Total 1,263 989 274 1,263 0 0 25 9.3 99 Corporate Offices 164,711 Employee Hours 682 Contractor Hours 165,393 Hours Worked Zinkgruvan Male 363 338 25 362 1 0 2 8 Total Recordable Injuries 0 0 0 Female 87 84 3 82 5 0 0 8.3 Injury Rate (TRIF) 0 0 0 Occupational Diseases 0 0 0 Total 450 422 28 444 6 0 2 8.1 100 Occupational Disease Rate 0 0 0 Lost Workdays 0 0 0 Exploration Male 12 12 0 12 0 2 0 58.3 Lost Day Severity Rate (SR) 0 0 0 Female 4 4 0 4 0 0 0 50 Work Related Fatalities 0 0 0 Total 16 16 0 16 0 2 0 56.3 0 Lundin Mining Total 7,923,690 Employee Hours 13,072,299 Contractor Hours 20,995,989 Hours Worked Corporate Male 51 49 2 51 0 0 2 17.6 Total Recordable Injuries 25 33 58 Female 33 29 4 33 0 0 1 18.2 Injury Rate (TRIF) 0.63 0.50 0.55 Total 84 78 6 84 0 0 3 17.9 0 Occupational Diseases 31 0 31 Occupational Disease Rate 0.78 0 0.30 Lost Workdays (w/o fatality) 335 912 1,247 Minimum notice Candelaria: Before the expiration of the collective agreements, notice period (60 days) is given at the start of the Lost Day Severity Rate (SR) 8 14 12 periods regarding collective bargaining process. Labour relations hold formal meetings based on medium- and long-term schedules. Work Related Fatalities 1 0 1 operational changes Additional notice (24 weeks) is given before a significant change for planned, non-confidential changes. Fatality Rate 0.03 0 0.01 Chapada: Notice periods are not defined in the collective agreement; however, in the event of significant * Lost Workdays (w/fatality ) 6,335 912 7,247 operational changes, employees are notified individually and / or through internal communication channels. Lost Day Severity Rate (w/fatality*) 160 14 69 The local union is notified and provides input.

Eagle: No collective bargaining agreement. Minimum notice period (60 calendar days) required by the Explanation of how data is compiled Worker Adjustment and Retraining Notification Act. Employee Hours and Contractor Hours include female and male hours combined. For the purpose of this report, the ‘Injury Rate’ is based on total recordable injuries. Neves-Corvo: There is no Company-specific collective bargaining agreement, notice periods are defined Total Recordable Injuries = Medical Treatment Cases + Restricted Duty Cases + Lost Time Cases. First aid injuries are not included. on a case by case basis. Lost Day Severity Rate (SR) = Based on workdays lost after the first day. SR calculation: ‘(lost workdays x 200,000) / hours worked’. * Lost Day Severity Rate (w/fatality) includes an additional 6,000 loss of life penalty days in the calculation. Zinkgruvan: Collective agreement does not specify notice periods. Planned operational changes are shared with High-consequence work-related injuries: based on end-of-year site self-reporting and excluding the Neves-Corvo fatality, there were eight (8) high-consequence the local unions and, if required, are agreed upon through negotiation. If the Company decides to change a shift work-related injuries in 2020, four (4) involving employees and four (4) involving contractors. The employee and contractor high-consequence work-related injury roster system for a specific group, the minimum notice period is three weeks. rates for 2020 were 0.10 and 0.06 respectively, and the overall Lundin Mining high-consequence work-related injury rate for 2020 was 0.08.

LUNDIN MINING 2020 SUSTAINABILITY REPORT 106 107 APPENDIX B: INDEPENDENT Basis for Energy and Greenhouse Gas Reporting ASSURANCE STATEMENT

A table listing the reported and assured data is attached Basis for Lundin Mining Energy Reporting 2020 To: The Stakeholders of Lundin Mining Corporation to this statement. • Energy Within Lundin Mining includes fuel and electricity consumed in our corporate office and onsite by Lundin Mining INTRODUCTION AND OBJECTIVES OF WORK and contractors for core business activities. Apex Companies, LLC (Apex) was engaged by Lundin Mining Excluded from the scope of our work is any assurance Corporation (LMC) to conduct an independent third-party of information relating to: • Energy Outside Lundin includes fuel consumed by contractors for the transport of concentrate, some imported raw assurance of select sustainability information presented in • Performance indicators and text in the report not materials and personnel in buses. its 2020 Sustainability Report (the Report) for the calendar indicated above; and • Data sources include Lundin Mining’s internal purchase records and fuel-consumption records reported to year ending in December 2020. This assurance statement Lundin Mining by contractors. applies to the related information included within the scope • Activities outside the defined assurance period of work described below. The intended users of the assurance of calendar year 2020. • Factors to convert quantities of fuel consumed to energy units sourced in-country from product data sheets statement are LMC’s management and stakeholders of LMC. and national publications. The overall objective of the assurance process was to provide METHODOLOGY Apex undertook the following activities: • Electricity-consumption data obtained from suppliers and onsite meters. assurance on the accuracy, reliability, and objectivity of LMC’s Report for the specific subject matter/key performance 1. Interviews with relevant personnel of LMC and indicators (KPIs) covered by the scope of work (below). LMC’s consultant; Basis for Lundin Mining GHG Reporting 2020 The information that was assured and its presentation in 2. Review of internal and external documentary evidence the Report are the sole responsibility of the management • GHG emissions calculation approach aligned with the GHG Protocol methodologies. produced by LMC; of LMC. Apex was not involved in the calculation of the >> Consolidation approach based on operational control. data or drafting of the Report. Our sole responsibility 3. Audit of select KPI data presented in the Report was to provide independent assurance on the selected >> Latest Global Warming Potentials, given in the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment including a detailed review of samples of data; Key Performance Indicators (KPIs). Report were used, as recommended by the GHG Protocol and CDP. 4. Review of LMC data and information systems for collection, ASSURANCE STANDARDS APPLIED aggregation, analysis and internal verification and review; and, >> Calculations include carbon dioxide, methane and nitrous oxide, reported as carbon dioxide equivalents (CO2e). The assurance engagement was performed in accordance 5. Review of the Report as it relates to the assured KPIs. >> 2015 defined as base year for GHG emissions reporting (data were externally assured and both location-based with AccountAbility’s AA1000 Assurance Standard (AS) v3 and market-based Scope 2 data were reported). Base year Scope 1 and Scope 2 emissions were recalculated in 2019 standard and was conducted to meet the AA1000AS Type 2 A site visit to the Eagle Mine located in Michigan, USA using pro-rata option, to account for the acquisition of Chapada Mine in July 2019. Full recalculation was completed moderate level of assurance requirements for most metrics. was planned, as was a visit to LMC’s headquarters in Toronto, for the 2020 reporting year. but both visits were cancelled due to Coronavirus travel Greenhouse gas emissions were verified to a reasonable level 2015 Base Year Emissions (recalculated March 2021) • Scope 1: 351,251 tonnes CO e restrictions. All data review and interviews with Lundin 2 in accordance with ISO 14064-3: Second edition 2019-04: personnel and external stakeholders were performed remotely. Greenhouse gases -- Part 3: Specification with Guidance for • Scope 2 (Location-based): 495,872 tonnes CO2e the Verification and Validation of Greenhouse Gas Statements. The work was planned and carried out to provide a • Scope 2 (Market-based): 483,257 tonnes CO e 2 AA1000 AS v3 Type 2 moderate level of assurance for most SCOPE OF WORK KPIs, and a reasonable level of assurance for GHG emissions • Scope 1 emissions accounting based on fuel, blasting agents, and fugitive emissions from refrigeration LMC requested Apex to include independent assurance of the (ISO 14064-3: Second edition 2019-04: Greenhouse gases -- and air-conditioning equipment at our operations. following KPIs for the calendar year 2020 reporting period: Part 3: Specification with Guidance for the Verification and Validation of Greenhouse Gas Statements), and we believe >> Where available, fuel emission factors sourced in-country, from national publications; otherwise, default fuel • Safety – total recordable injury frequency rate (TRIF) it provides a sound basis for our conclusions. emission factors were sourced from 2006 IPCC Guidelines for National Greenhouse Gas Inventories. and lost time injury frequency rate (LTIF); >> Fugitive emissions calculated in alignment with the GHG Protocol’s Screening Method (WS3 Emission Factor-Based • Total amount of water withdrawn from all sources; FINDINGS AND CONCLUSIONS Approach to Estimate HFC and PFC Emissions from Refrigeration/AC, 2015). • Total amount of water discharged; On the basis of our methodology and the activities described above, it is our opinion that: • Scope 2 emissions accounting based on electricity consumption onsite and in corporate offices. • Energy consumption within LMC’s operations including electricity, liquid fuels and gaseous fuels; • The information and data related to the KPIs identified >> “Location-based” and “Market-based” Scope 2 emissions calculated in accordance with GHG Protocol Scope 2 Guidance, in the scope of work that are included in the Report are published in 2015. • Greenhouse gas emissions – Scope 1, Scope 2 accurate, reliable and free from significant error, material (location and market based); >> Emission factors for location-based emissions calculations were regional or national data obtained in-country, where mistakes or misstatements. available, and otherwise were sourced from the International Energy Agency (IEA (2020), Emission Factors). • Stakeholder grievances filed during the year; • The Report provides a fair representation of LMC’s activities >> Emission factors for market-based calculations were sourced from a contractual arrangement between our Swedish • Stakeholder engagement as it relates to AccountAbility’s as it relates to our scope of work over the reporting period. operation and its electricity supplier; European Residual Mix (AIB, 2020) for Portugal; and, since residual mix data AA1000AS v3 (2020)1 principles of inclusivity, materiality, are not currently available for Brazil, Chile and the U.S., regional grid average data were applied. responsiveness, and impact. • Scope 3 emissions from some fuel combustion (transportation only) based upon fuel-consumption data supplied by contractors. 1 Published by AccountAbility: The Institute of Social and Ethical Accountability

LUNDIN MINING 2020 SUSTAINABILITY REPORT INDEPENDENT ASSURANCE STATEMENT 108 109 INDEPENDENT ASSURANCE STATEMENT

• LMC has established appropriate systems for the collection, MATERIALITY IMPACT STATEMENT OF INDEPENDENCE, aggregation and analysis of relevant information, and has LMC commissioned a materiality assessment during 2017 LMC operates under appropriate processes to understand, INTEGRITY AND COMPETENCE implemented underlying internal quality assurance and that included identifying issues of importance for internal and measure, evaluate and manage the organization’s impacts Apex is an independent professional services company quality control practices that provide a reasonable degree of external stakeholders. LMC conducted an internal review of related to material topics. LMC ensures these processes that specializes in Health, Safety, Social and Environmental confidence that such information is complete and accurate. material aspects identified in the 2017 materiality assessment are documented and integrated into the organization. LMC management services including assurance with over 30 years • The Report adequately reflects the organization’s alignment to determine issues of importance to the company. LMC addresses identified impacts through management systems history in providing these services. to, and implementation of the AA1000AS v3 (2020) also identified additional issues that, while not deemed to be such as LMC’s Responsible Mining Management System No member of the verification team has a business principles of Inclusivity, Materiality, Responsiveness, and material to the business, were identified as issues of interest standard and internal and external reporting processes. relationship with Lundin Mining Corporation, its Directors Impact in its operations (further detail is provided below). to some of their stakeholders. These additional issues were The materiality assessment engaged a variety of internal Governance, Human Rights, Biodiversity and Land, and and external stakeholders to identify and evaluate the key or Managers beyond that required of this assignment. • LMC has processes in place for consulting and Materials and Product Stewardship. The Report included a issues and impacts from LMC operations. LMC also measures We conducted this verification independently and to our engaging with its key stakeholders in a structured discussion of these identified issues and is organized to align impact through the company’s contributions to overall knowledge there has been no conflict of interest. and systematic manner. with the issues determined to be material to LMC’s business economic development and prosperity in regions where they and stakeholders. Based on our in-person site visits to the operate, including the measurement of local employment Apex has implemented a Code of Ethics across the business • LMC has processes in place for recording and managing Candelaria Mine (2019), Zinkgruvan Mine (2018) and Eagle and local procurement with related training programs. The to maintain high ethical standards among staff in their grievances through to their resolution. Mine (2017), remote/virtual visits to the Neves-Corvo Mine company also considers their environmental impacts by day-to-day business activities. (2020) and Eagle Mine in 2021, in-person external stakeholder measuring and reporting energy consumption, greenhouse ADHERENCE TO THE PRINCIPLES The verification team has extensive experience in interviews during previous years, telephone interviews with gas emissions, water consumption and trends in these metrics OF AA1000AS V3 conducting assurance over environmental, social, ethical Eagle Mine external stakeholders in 2021, interviews with overtime. Based on our review, we conclude that LMC has As required by the AA1000AS v3 (2020) standard, and health and safety information, systems and processes, LMC employees, as well as our review of the Report, LMC adequately addressed the impact principle in its operations outlined below are our observations relating to LMC’s has over 20 years combined experience in this field and an has adequately addressed the materiality principle in its and the 2020 Report. adherence to the principles of inclusivity, materiality, excellent understanding of Apex’s standard methodology operations and the 2020 Report. The 2020 Report indicates responsiveness, and impact. for the verification and assurance of sustainability and that the materiality assessment will be updated in 2021. KEY OBSERVATIONS environmental data. INCLUSIVITY • LMC’s commitment to Stakeholder Engagement was evident RESPONSIVENESS during our previous in-person visits in 2017, 2018 and 2019 LMC’s Responsible Mining Policy and Stakeholder Engagement Attestation: Standard outlines the company’s commitments regarding LMC has developed requirements and systems to respond to the Eagle, Zinkgruvan and Candelaria Mines, respectively, communities, stakeholders and external engagement. to stakeholder issues such as grievances and complaints and from our remote/virtual visits to Neves-Corvo Mine LMC’s Stakeholder Engagement Standard and supporting in their Stakeholder Engagement Standard and associated (2020) and Eagle Mine in 2021, and from data review and Stakeholder Engagement Corporate Procedure (Stakeholder Stakeholder Engagement Procedure (Guidance). The interviews with LMC personnel both previously and during Engagement Guidance document) provides the minimum Guidance documents require sites to have a Stakeholder the 2020/2021 assurance process. David Reilly, Lead Verifier John Rohde, Technical Reviewer requirements for sites to identify and engage with groups Communication and Engagement Plan and a Grievance • Internal data validation by corporate personnel was Principal Consultant Practice Line Lead and individuals who may be impacted by company activities. Mechanism in place to identify, track and respond to concerns evident for all assured metrics, as well as for metrics Apex Companies, LLC Apex Companies, LLC In prior years, when Apex visited the Candelaria Mine (2019), raised by stakeholders both formally and informally. Apex not assured by Apex. Santa Ana, California, USA Lakewood, Colorado, USA Zinkgruvan Mine (2018) and Eagle Mine (2017), and a remote/ observed the implementation of Stakeholder Engagement virtual visit to the Neves-Corvo Mine (2020), we observed Guidance and the Grievance Mechanism through our • Energy and environmental data tracking and reporting implementation of external stakeholder engagement during discussions with external stakeholders and/or LMC employees at Eagle Mine has improved since our last visit and data our discussions with external stakeholders and/or LMC during our visits to the Candelaria Mine (2019), Zinkgruvan assurance process in 2017. employees. In 2021, Apex interviewed external stakeholders of Mine (2018) Eagle Mine (2017), and our remote/virtual visits the Eagle Mine, LMC employees and reviewed documentation to the Neves-Corvo Mine (2020) and Eagle Mine in 2021 and and reports to determine stakeholder engagement during review of internal documents and reports. Responses to the 2020 assurance period. LMC’s approach to stakeholder stakeholder concerns were found to be timely and complete engagement, stakeholder engagement activities in 2020, based on observations made at the aforementioned mines, examples of primary stakeholder groups and the key interests interviews with LMC employees and reviews of internal and concerns of each stakeholder group are described in documents and reports. Based on our review, we conclude the Stakeholder Engagement section of the Report. Our that LMC has adequately addressed the responsiveness observations, both in this assurance period and in previous principle in its operations and the 2020 Report. years, indicate that LMC takes stakeholder concerns into consideration and has adequately addressed the inclusivity principle in its operations and the 2020 Report.

LUNDIN MINING 2020 SUSTAINABILITY REPORT 110 111 INDEPENDENT GRI CONTENT INDEX ASSURANCE STATEMENT

LUNDIN MINING CORPORATION DATA AND INFORMATION SUBJECT TO ASSURANCE – 2020 IN ACCORDANCE WITH THE ‘CORE’ OPTION

Type Unit Results for 2020 Broadly Mapped Page number(s) GRI Standard Disclosures Description against SASB* and / or URL(s) Fuels and Energy GRI 102: ORGANIZATIONAL PROFILE Purchased Fuels (Scope 1) Gigajoules 5,886,521 General Disclosures 102-1 Name of the organization 5 Purchased Electricity (Scope 2) Gigajoules 5,378,305 2016 102-2 Activities, brands, products and services 5, 10-12 Total Energy Consumption (Scope 1 and 2) Gigajoules 11,264,826 102-3 Location of headquarters 5

Emissions 102-4 Location of operations 5, 10-11

102-5 Ownership and legal form 4, AIF Direct CO2e Emissions (Scope 1) Metric Tons CO2e 458,186 102-6 Markets served 13-14 Indirect (purchased electricity) CO2e Metric Tons CO2e 427,476 Emissions (Scope 2) (Location-based) 102-7 Scale of the organization 5, 10-12, 42-43, 48-49, AIF, 2020 Annual MD&A and Financial Total Scope 1 and Scope 2 CO2e Metric Tons CO2e 885,662 Statements, Management Emissions (Location-based) Information Circular

Indirect (purchased electricity) CO2e Metric Tons CO2e 415,341 102-8 Information on employees and other workers 11, 48-49, Appendix A Emissions (Scope 2) (Market-based) 102-9 Supply chain 12-13 Total Scope 1 and Scope 2 CO e Metric Tons CO e 873,527 2 2 102-10 Significant changes to the organization 12 Emissions (Market based) and its supply chain

Water 102-11 Precautionary Principle or approach 25-26, 71-72 102-12 External initiatives 26 Total Water Withdrawal Mega Liters 74,813 102-13 Membership of associations 26, Memberships and Associations Total Water Discharged Mega Liters 23,567 STRATEGY Safety 102-14 Statement from senior decision-maker 2-3

Total Recordable Injury Frequency Rate TRIF is calculated as (total number of 0.55 102-15 Key impacts, risks and opportunities 2-3, 19-21 (TRIF) recordable injuries (including fatalities, ETHICS AND INTEGRITY lost time injury, restricted work and medical treatment injury) x 200,000 102-16 Values, principles, standards and norms 6-7, 23-27, 47-51, Code of hours)/ total hours worked of behavior Conduct, Ethical Values and Anti-Corruption Policy Lost Time Injury Frequency Rate (LTIF) LTIF is calculated as (total lost 0.26 102-17 Mechanisms for advice and concerns about ethics EM-MM-510a.1. 24-25, Whistleblower Policy time injuries x 200,000 hours)/ total hours worked GOVERNANCE

Stakeholder Engagement and Grievance Mechanism 102-18 Governance structure 6-7, 24-27

Stakeholder Engagement NA LMC was found to be effectively engaging 102-22 Composition of the highest governance body 24-26 with Stakeholders and considering and its committees stakeholder input in adherence to 102-24 Nominating and selecting the highest Management Information Circular the AA1000 v3 principles of inclusivity, governance body materiality, responsiveness, and impact. 102-25 Conflicts of interest 24, Code of Conduct, Ethical Values and Anti-Corruption Policy Grievance Mechanism NA LMC has a functioning grievance mechanism in place and in use. All disclosures for reporting in accordance with the ‘Core’ option are reported, *While the relevant SASB reference is identified, it is not intended to imply Grievances Filed Number of grievances filed during 97 with no omissions. that the content of this report fully complies with the SASB definitions and methodologies described in Metals & Mining Sustainability Accounting 2020 company wide Additional disclosures beyond the criteria for Core are reported to provide a Standard, SASB October 2018. more detailed and comprehensive report. These additional disclosures may be reported in full or used to guide relevant content. Represents data and information subject to external assurance The Mining and Metals Sector (MM) Disclosures have been retired by GRI. While a new GRI Sector Standard is awaited, these are included as additional disclosures and may be reported in full or used to guide relevant content.

LUNDIN MINING 2020 SUSTAINABILITY REPORT GRI CONTENT INDEX 112 113 GRI CONTENT INDEX

Broadly Mapped Page number(s) Broadly Mapped Page number(s) GRI Standard Disclosures Description against SASB* and / or URL(s) GRI Standard Disclosures Description against SASB* and / or URL(s)

GRI 102: GOVERNANCE GRI 102: REPORTING PRACTICES General General Disclosures 102-26 Role of highest governance body in setting 6-7, 24-26, Management Disclosures 102-53 Contact point for questions regarding the report Back Cover 2016 purpose, values, and strategy Information Circular 2016 102-54 Claims of reporting in accordance with 4 102-31 Review of economic, environmental 6-7, 24-26 the GRI Standards and social topics 102-55 GRI content index 111-118 102-32 Highest governance body’s role 4 in sustainability reporting 102-56 External assurance 4, 17, 107-110 102-33 Communicating critical concerns Management Information Circular HEALTH AND SAFETY TOPICS 102-35 Remuneration policies Management Information Circular Occupational Health and Safety 102-36 Process for determining remuneration Management Information Circular GRI 103: 103-1, 103-2, Management approach disclosures 6-7, 29-31 Management 103-3 STAKEHOLDER ENGAGEMENT Approach 2016

GRI 103: 2016 103-1, 103-2, Management approach disclosures 6-7, 55-56 GRI 403: 403-1 Occupational health and safety 6-7, 31 103-3 Occupational management system Health and Safety GRI 102: 102-40 List of stakeholder groups 57-58 2018 403-2 Hazard identification, risk assessment, 31-32, 34 General and incident investigation Disclosures 102-41 Collective bargaining agreements EM-MM-310a.1. 51 403-3 Occupational health services 2016 36-37 102-42 Identifying and selecting stakeholders 55-56 403-4 Worker participation, consultation, 29-31, 34, 57 102-43 Approach to stakeholder engagement 55-58 and communication on occupational health and safety 102-44 Key topics and concerns raised 57-58 403-5 Worker training on occupational 30-31 REPORTING PRACTICES health and safety 102-45 Entities included in the consolidated 4, Financial Statements 403-6 Promotion of worker health 31, 36 financial statements 403-7 Prevention and mitigation of occupational 13-14, 72 102-46 Defining report content and topic Boundaries 4, 6-7, 16-17, Individual materiality health and safety impacts directly linked descriptions by business relationships 102-47 List of material topics 16-17 403-8 Workers covered by an occupational 31 health and safety management system 102-48 Restatements of information 77 403-9 Work-related injuries EM-MM-320a.1. 32-35, Appendix A 102-49 Changes in reporting 4, 16 403-10 Work-related ill health 36-37, Appendix A 102-50 Reporting period 4 ECONOMIC TOPICS 102-51 Date of most recent report 4

102-52 Reporting cycle 4 Economic Performance GRI 103: 103-1, 103-2, Management approach disclosures 6-7, 41-42, Financial Statements All disclosures for reporting in accordance with the ‘Core’ option are reported, *While the relevant SASB reference is identified, it is not intended to imply Management 103-3 with no omissions. that the content of this report fully complies with the SASB definitions and Approach 2016 methodologies described in Metals & Mining Sustainability Accounting Additional disclosures beyond the criteria for Core are reported to provide a GRI 201: Economic 201-1 Direct economic value generated and distributed 42-43, 64-69 Standard, SASB October 2018. more detailed and comprehensive report. These additional disclosures may Performance 2016 be reported in full or used to guide relevant content. Represents data and information subject to external assurance 201-2 Financial implications and other risks and 88-90 opportunities due to climate change The Mining and Metals Sector (MM) Disclosures have been retired by GRI. While a new GRI Sector Standard is awaited, these are included as additional disclosures and may be reported in full or used to guide relevant content.

LUNDIN MINING 2020 SUSTAINABILITY REPORT GRI CONTENT INDEX 114 115 GRI CONTENT INDEX

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ECONOMIC TOPICS SOCIAL TOPICS

Indirect Economic Impacts Freedom of Association and Collective Bargaining

GRI 103: 103-1, 103-2, Management approach disclosures 6-7, 64 GRI 103: 103-1, 103-2, Management approach disclosures 6-7, 50 Management 103-3 Management 103-3 Approach 2016 Approach 2016

GRI 203: Indirect 203-1 Infrastructure investments 64-69, Lundin Foundation GRI 407: Freedom 407-1 Operations and suppliers in which the right 50-51 Economic Impacts and services supported of Association to freedom of association and collective 2016 and Collective bargaining may be at risk 203-2 Significant indirect economic impacts 64-69 Bargaining 2016

Local Economic Impacts Mining and Metals MM4 Number of strikes and lock-outs exceeding 51 Sector Disclosures one week's duration GRI 103: 103-1, 103-2, Management approach disclosures 6-7, 44, 49 2013 Management 103-3 Approach 2016 Child Labor

GRI 204: 204-1 Proportion of spending on local suppliers 44-45 GRI 408: Child 408-1 Operations and suppliers at significant risk 51 Procurement Labor 2016 for incidents of child labor Practices 2016 Forced or Compulsory Labor GRI 202: Market 202-2 Proportion of senior management hired 49 Presence 2016 from the local community GRI 409: Forced 409-1 Operations and suppliers at significant risk 51 or Compulsory for incidents of forced or compulsory labor Anti-Corruption Labor 2016 GRI 205: 205-1 Operations assessed for risks related EM-MM-510a.1. 24-25, Code of Conduct, Ethical Rights of Indigenous Peoples Anti-corruption to corruption Values and Anti-Corruption Policy 2016 GRI 103: 103-1, 103-2, Management approach disclosures 6-7, 59 205-2 Communication and training about 24-25, Code of Conduct, Ethical Management 103-3 anti-corruption policies and procedures Values and Anti-Corruption Policy Approach 2016

205-3 Confirmed incidents of corruption 25 GRI 411: Rights 411-1 Incidents of violations involving rights 60 and actions taken of Indigenous of indigenous peoples SOCIAL TOPICS Peoples 2016 Mining and Metals MM5 Total number of operations taking place in EM-MM-210a.2. 59-60 Employment Sector Disclosures or adjacent to Indigenous Peoples' territories EM-MM-210a.3. GRI 401: 401-1 New employee hires and employee turnover 48, Appendix A 2013 and number and percentage of operations Employment 2016 or sites where there are formal agreements with Indigenous Peoples' communities Labor Relations MM6 Number and description of significant disputes EM-MM-210b.1. 60 GRI 402: Labor / 402-1 Minimum notice periods regarding 51, Appendix A relating to land use, customary rights of local Management operational changes communities and Indigenous Peoples Relations 2016 Mining and MM7 The extent to which grievance mechanisms 60 Diversity and Equal Opportunity Metals Sector were used to resolve disputes relating to land Disclosures 2013 use, customary rights of local communities GRI 405: Diversity 405-1 Diversity of governance bodies and employees 23-25, 47-49, and Indigenous Peoples and the outcomes and Equal Diversity & Inclusion Policy Opportunity 2016

All disclosures for reporting in accordance with the ‘Core’ option are reported, *While the relevant SASB reference is identified, it is not intended to imply with no omissions. that the content of this report fully complies with the SASB definitions and methodologies described in Metals & Mining Sustainability Accounting Additional disclosures beyond the criteria for Core are reported to provide a Standard, SASB October 2018. more detailed and comprehensive report. These additional disclosures may be reported in full or used to guide relevant content. Represents data and information subject to external assurance The Mining and Metals Sector (MM) Disclosures have been retired by GRI. While a new GRI Sector Standard is awaited, these are included as additional disclosures and may be reported in full or used to guide relevant content.

LUNDIN MINING 2020 SUSTAINABILITY REPORT GRI CONTENT INDEX 116 117 GRI CONTENT INDEX

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SOCIAL TOPICS ENVIRONMENTAL TOPICS

Human Rights Biodiversity

GRI 412: 412-1 Operations that have been subject to human 27 GRI 304: 304-1 Operational sites owned, leased, managed in, EM-MM-160a.3. 101-102 Human Rights rights reviews or impact assessments Biodiversity 2016 or adjacent to, protected areas and areas of Assessment 2016 high biodiversity value outside protected areas

Local Communities 304-4 IUCN Red List species and national 102 conservation list species with habitats GRI 103: 103-1, 103-2, Management approach disclosures 6-7, 53-56, 64 in areas affected by operations Management 103-3 Approach 2016 Mining and Metals MM1 Amount of land (owned or leased and managed 102 Sector Disclosures for production activities or extractive use) GRI 413: Local 413-1 Operations with local community 55-57, 61, 64-69 2013 disturbed or rehabilitated Communities 2016 engagement, impact assessments and development programs MM2 The number and percentage of total 101 sites identified as requiring biodiversity 413-2 Operations with significant actual and potential 62-63 management plans according to stated criteria negative impacts on local communities and the number (percentage) of those sites with plans in place Socioeconomic Compliance Emissions GRI 419: 419-1 Non-compliance with laws and regulations 14, 27, 73, AIF Socioeconomic in the social and economic area GRI 103: 103-1, 103-2, Management approach disclosures 6-7, 71-72, 88-89, 91, Appendix B Compliance 2016 Management 103-3 Approach 2016 ENVIRONMENTAL TOPICS GRI 305: 305-1 Direct (Scope 1) GHG emissions EM-MM-110a.1. 94-95 Energy Emissions 2016 305-2 Energy indirect (Scope 2) GHG emissions 94-95 GRI 302: Energy 302-1 Energy consumption within the organization EM-MM-130a.1. 91-93, Appendix B 2016 305-3 Other indirect (Scope 3) GHG emissions 97 302-2 Energy consumption outside of the organization 97 305-4 GHG emissions intensity 95-96 302-3 Energy intensity 95-96 305-5 Reduction of GHG emissions 97 302-4 Reduction of energy consumption 97

305-7 Nitrogen oxides (NOX), sulfur oxides (SOX) 99-100 Water and other significant air emissions GRI 103: 103-1, 103-2, Management approach disclosures 6-7, 71-72, 78-79 Non-Mineral Waste Management 103-3 Approach 2016 GRI 306: 306-3 Waste generated 102 Waste 2020 GRI 303: 303-1 Interactions with water as a shared resource 78-87 306-4 Waste diverted from disposal 102 Water and Effluents 2018 303-2 Management of water discharge-related impacts 79 Environmental Compliance 303-3 Water withdrawal EM-MM-140a.1. 81-82, 84-85 GRI 307: 307-1 Non-compliance with environmental laws 72-73, AIF Environmental and regulations 303-4 Water discharge EM-MM-140a.2. 79, 81, 83, 85 Compliance 2016 303-5 Water consumption 81, 85

All disclosures for reporting in accordance with the ‘Core’ option are reported, *While the relevant SASB reference is identified, it is not intended to imply with no omissions. that the content of this report fully complies with the SASB definitions and methodologies described in Metals & Mining Sustainability Accounting Additional disclosures beyond the criteria for Core are reported to provide a Standard, SASB October 2018. more detailed and comprehensive report. These additional disclosures may be reported in full or used to guide relevant content. Represents data and information subject to external assurance The Mining and Metals Sector (MM) Disclosures have been retired by GRI. While a new GRI Sector Standard is awaited, these are included as additional disclosures and may be reported in full or used to guide relevant content.

LUNDIN MINING 2020 SUSTAINABILITY REPORT 118 119 GRI CONTENT INDEX UN GLOBAL COMPACT: COMMUNICATION ON PROGRESS

Lundin Mining joined the United Nations Global Compact (UNGC) in 2016 and has Broadly Mapped Page number(s) GRI Standard Disclosures Description against SASB* and / or URL(s) documented its support of the 10 Principles on human rights, labour standards, environment and anti-corruption, and the 17 Sustainable Development Goals ENVIRONMENTAL TOPICS (SDGs), through an annual Communication on Progress (COP). This COP presents a summary of our 2020 progress and actions related to the UNGC Principles and Tailings and Waste Rock Management the SDGs, achieved through Company-wide activities and documented in more detail throughout our 2020 Sustainability Report. GRI 103: 103-1, 103-2, Management approach disclosures 6-7, 71-72, 74, Tailings Management Management 103-3 Information Sheet Approach 2016 Related Principles Progress SDGs Mining and Metals MM3 Total amounts of overburden, rock, tailings EM-MM-150a.1. 75-77 Sector Disclosures and sludges and their associated risks EM-MM-160a.2. Expectations Human Rights 2013 1. Businesses Lundin Mining’s Human Rights Standard was approved in 2020 and supplements the Company’s 5, 8, 12, 16 Reclamation and Closure should support pre-existing public commitment to support rights as provided in our Code of Conduct, Ethical and respect the Values, and Anti-Corruption (“Code of Conduct”), our Diversity and Inclusion Policy and our GRI 103: 103-1, 103-2, Management approach disclosures 6-7, 71-72, 98 protection of Responsible Mining Policy. Management 103-3 internationally Approach 2016 proclaimed In 2020, three of our five sites (Eagle, Zinkgruvan, and Neves-Corvo) developed and began human rights implementing Human Rights Action Plans to address the opportunities for improvement identified Mining and Metals MM10 Number and percentage of operations 98 in their respective Human Rights Risk and Impact Assessments, completed in 2019. The Company Sector Disclosures with closure plans 2. Business will continue with assessments at its Chapada and Candelaria sites in 2021 and 2022. 2013 should make The Company fosters a work environment free from discrimination against gender, age, race, national origin, MATERIALS AND PRODUCT STEWARDSHIP sure that they are not marital status, sexual orientation, religious beliefs, disability, or any other personal characteristics protected GRI 417: Marketing 417 -1 Requirements for product and service 13-14 complicit in by international human rights law. In 2020, several human rights-related grievances were filed through and Labeling 2016 information and labeling human right the Company’s grievance mechanism and Whistleblower reporting hotline. In each case, management abuses investigated the matter and, where the claim was verified, appropriate management actions were taken. 417-2 Incidents of non-compliance concerning No concentrate-transport-related product and service information and labeling non-compliances were reported In addition to the UNGC, Lundin Mining demonstrates its commitment to support human rights through at Lundin Mining's operations. consideration of the following international principles / standards: Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises (MNEs), United Nations Guiding 417-2 Incidents of non-compliance concerning No marketing communication Principles on Business and Human Rights, and the Voluntary Principles on Security and Human Rights. marketing communications non-compliances were reported at Lundin Mining's operations. Supplementary details on progress in these areas can be found in these sections of the 2020 Sustainability Report: GRI 418: Customer 418-1 Substantiated complaints concerning 15 • Governance – Human Rights Privacy 2016 breaches of customer privacy and losses of customer data • Our People • Social Performance – Our Approach • Social Performance – Community Development All disclosures for reporting in accordance with the ‘Core’ option are reported, *While the relevant SASB reference is identified, it is not intended to imply with no omissions. that the content of this report fully complies with the SASB definitions and Expectations Labour methodologies described in Metals & Mining Sustainability Accounting Additional disclosures beyond the criteria for Core are reported to provide a 3. Business should Lundin Mining is committed to achieving a safe, productive and healthy work environment across all 3, 5, 8, 10 Standard, SASB October 2018. more detailed and comprehensive report. These additional disclosures may uphold the operations. The Company supports freedom of association and collective bargaining, does not tolerate any be reported in full or used to guide relevant content. Represents data and information subject to external assurance freedom of form of harassment and fosters a work environment free from discrimination. We support the elimination The Mining and Metals Sector (MM) Disclosures have been retired by GRI. association and of all forms of forced and compulsory labour, and child labour. Based on our internal assessment, While a new GRI Sector Standard is awaited, these are included as additional the effective none of our operations are at risk for incidents of child labour, or forced, or compulsory labour. disclosures and may be reported in full or used to guide relevant content. recognition of the right to collective Lundin Mining’s position on labour is guided by the following policies, principles, standards bargaining and/or commitments: • Code of Conduct, Ethical Values and Anti-Corruption Policy (updated 2020) 4. The elimination of • Diversity and Inclusion Policy (updated February 2021) all forms of forced • Human Rights Standard and compulsory labour Lundin Mining provides oversight and governance for these Principles through the activities of the Human Resources / Compensation Committee of the Board. As well, the Company is a member of the 5. The effective United Nations Global Compact to advance the 10 Principles and 17 SDGs and considers the International abolition of Finance Corporation (IFC) Performance Standards on Social and Environmental Sustainability. child labour In 2020, the Company formed a cross-functional working group to establish a corporate strategy 6. The elimination for responsible sourcing and product stewardship aligned with corporate management systems of discrimination and business strategy. In 2021, a gap analysis will compare the strategy to international standards in respect of to ensure integration with our Responsible Mining Management System (RMMS) at all sites. employment and occupation More details on progress in these areas can be found in this report: • Our Performance against 2020 Targets – Social Performance • Our Customers and Markets • Governance • Our People.

LUNDIN MINING 2020 SUSTAINABILITY REPORT 120 121 UN GLOBAL COMPACT: CAUTIONARY STATEMENT COMMUNICATION ON PROGRESS ON FORWARD-LOOKING INFORMATION Related Principles Progress SDGs

Expectations Environment Certain of the statements made and information contained herein including but not limited to models relating thereto; ore processing 7. Business should Lundin Mining supports the precautionary approach and continues advancing numerous programs and 7, 9, 12, 13 is “forward-looking information” within the meaning of applicable efficiency; community and stakeholder opposition; information support a partnerships to improve and optimize environmental, biodiversity and sustainability performance. Canadian securities laws. All statements other than statements of technology and cybersecurity risks; potential for the allegation of precautionary historical facts included in this document constitute forward-looking fraud and corruption involving the Company, its customers, suppliers approach to Our material environmental areas of focus include tailings and waste rock management, water, information, including but not limited to statements regarding the or employees, or the allegation of improper or discriminatory environmental climate change and reclamation and closure. Company’s plans, prospects and business strategies; the Company’s employment practices, or human rights violations; regulatory challenges guidance on the timing and amount of future production and its investigations, enforcement, sanctions and / or related or other Our practices are guided by the following: expectations regarding the results of operations; expected costs; litigation; uncertain political and economic environments, including 8. Undertake • Health, Safety, Environment and Community Committee permitting requirements and timelines; timing and possible outcome in Brazil and Chile; risks associated with the structural stability of initiatives to • Code of Conduct, Ethical Values and Anti-Corruption Policy – including Environment and Community of pending litigation; the results of any Preliminary Economic waste rock dumps or tailings storage facilities; estimates of future promote greater Assessment, Feasibility Study, or Mineral Resource and Mineral production and operations; estimates of operating, cash and all-in environmental • RMMS and supporting technical standards Reserve estimations, life of mine estimates, and mine and mine sustaining cost estimates; civil disruption in Chile; the potential for responsibility • Responsible Mining Policy closure plans; anticipated market prices of metals, currency exchange and effects of labour disputes or other unanticipated difficulties with 9. Encourage the • Risk Management Framework and Executive Risk Committee rates, and interest rates; the development and implementation or shortages of labour or interruptions in production; risks related development of the Company’s Responsible Mining Management System; the to the environmental regulation and environmental impact of the • Participation in local, national, and international associations (memberships and associations) and diffusion of Company’s ability to comply with contractual and permitting or other Company’s operations and products and management thereof; regulatory requirements; anticipated exploration and development exchange rate fluctuations; reliance on third parties and consultants environmentally In 2020, sites developed action plans to address findings and recommendations of the Company’s friendly first third-party RMMS audit, conducted in 2019 to assess HSEC performance and compliance at activities at the Company’s projects; and the Company’s integration in foreign jurisdictions; climate change; risks relating to attracting and technologies all sites except Chapada. The first Chapada RMMS audit is planned for 2021. The next audit and of acquisitions and any anticipated benefits thereof. Words such as retaining of highly skilled employees; compliance with environmental, verification for remaining sites are also planned in 2021 and will continue bi-annually. “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”, health and safety laws; counterparty and credit risks and customer “aim”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, concentration; litigation; risks inherent in and / or associated with In addition to the UNGC, Lundin Mining’s environmental practices voluntarily align with the IFC’s “could”, “should”, “schedule” and similar expressions identify operating in foreign countries and emerging markets; risks related Performance Standards on Social and Environmental Sustainability, and the OECD Guidelines forward-looking statements. to mine closure activities and closed and historical sites; changes for MNEs. Lundin Mining is a member of the Mining Association of Canada (MAC) and considers in laws, regulations or policies including but not limited to those the MAC Towards Sustainable Mining Framework as a best practice to enhance Company-wide Forward-looking information is necessarily based upon various related to mining regimes, permitting and approvals, environmental environmental standards and practices. estimates and assumptions including, without limitation, the and tailings management, labor, trade relations, and transportation; expectations and beliefs of management, including that the Company internal controls; challenges or defects in title; the estimation of In 2020, Lundin Mining continued to assess and integrate innovative, sustainable technologies can access financing, appropriate equipment and sufficient labor; asset carrying values; historical environmental liabilities and ongoing into its operations, including testing LTE/4G networks for underground mines and investigating assumed and future price of copper, nickel, zinc, gold and other reclamation obligations; the price and availability of key operating opportunities for solar power for certain aspects of our activities. To support industry-wide metals; anticipated costs; ability to achieve goals; the prompt and supplies or services; competition; indebtedness; compliance with change, the Company continued its sponsorship agreement with the Coalition for Energy Efficient effective integration of acquisitions; that the political environment foreign laws; existence of significant shareholders; liquidity risks Comminution to promote the diffusion of environmental technologies across the mining industry. in which the Company operates will continue to support the and limited financial resources; funding requirements and availability Lundin Mining continued to participate in a zinc-focused life cycle assessment (LCA), led by the development and operation of mining projects; and assumptions of financing; enforcing legal rights in foreign jurisdictions; dilution; International Zinc Association. The purpose of the study is to create an updated global, “cradle- related to the factors set forth below. While these factors and risks relating to dividends; risks associated with acquisitions and to-gate” life cycle inventory, aiming to identify improvement opportunities within the zinc industry assumptions are considered reasonable by Lundin Mining as at and assess and benchmark participating companies’ environmental footprint for zinc production related integration efforts, including the ability to achieve anticipated the date of this document in light of management’s experience benefits, unanticipated difficulties or expenditures relating to and downstream use. Additionally, Lundin Mining supports community initiatives that encourage and perception of current conditions and expected developments, technology development and entrepreneurship. integration and diversion of management time on integration; activist these statements are inherently subject to significant business, shareholders and proxy solicitation matters; and other risks and Details on progress in these areas, and partnerships to advance them, can be found in these economic and competitive uncertainties and contingencies. Known uncertainties, including but not limited to those described in the sections of the 2020 Sustainability Report: and unknown factors could cause actual results to differ materially “Risk and Uncertainties” section of the Annual Information Form from those projected in the forward-looking statements and undue and the “Managing Risks” section of the Company’s MD&A for the • Our Performance Against 2020 Goals – Environment reliance should not be placed on such statements and information. • Environment – Climate Change, Energy and Greenhouse Gas year ended December 31, 2020, which are available on SEDAR at Such factors include, but are not limited to: risks inherent in mining • Our Approach to Responsible Mining and Sustainability www.sedar.com under the Company’s profile. All of the forward-looking including but not limited to risks to the environment, industrial • Social Performance – Community Development statements made in this document are qualified by these cautionary accidents, catastrophic equipment failures, unusual or unexpected statements. Although the Company has attempted to identify Expectations Anti-Corruption geological formations or unstable ground conditions, and natural important factors that could cause actual results to differ materially phenomena such as earthquakes, flooding or unusually severe from those contained in forward-looking information, there may be 10. Business Lundin Mining has a zero-tolerance policy for bribery and corruption by employees, officers, 10, 12, 16 weather; uninsurable risks; global financial conditions and inflation; other factors that cause results not to be as anticipated, estimated, should work directors, consultants, and contractors and suppliers of the Company. The Company is committed changes in the Company’s share price, and volatility in the equity forecast or intended and readers are cautioned that the foregoing list against to meeting or exceeding legal requirements wherever we operate. In 2020, there were no known markets in general; volatility and fluctuations in metal and commodity is not exhaustive of all factors and assumptions which may have been corruption in incidents of corruption. prices; the threat associated with outbreaks of viruses and infectious used. Should one or more of these risks and uncertainties materialize, all its forms, diseases, including the COVID-19 virus; changing taxation regimes; or should underlying assumptions prove incorrect, actual results may including Lundin Mining’s position on anti-corruption is guided by the following: reliance on a single asset; delays or the inability to obtain, retain or vary materially from those described in forward-looking information. extortion • Code of Conduct, Ethical Values and Anti-Corruption Policy – including dealing with public comply with permits; risks related to negative publicity with respect and bribery Accordingly, there can be no assurance that forward-looking officials, supplier and contractor relationships, political contributions and activities, gifts to the Company or the mining industry in general; health and safety information will prove to be accurate and forward-looking information and entertainment, conflicts of interest and human rights; risks; exploration, development or mining results not being consistent is not a guarantee of future performance. Readers are advised • Audit Committee of the Board with the Company’s expectations; unavailable or inaccessible not to place undue reliance on forward-looking information. The infrastructure and risks related to ageing infrastructure; actual ore forward-looking information contained herein speaks only as of Lundin Mining monitors and evaluates anti-corruption best practices and performance through mined and / or metal recoveries varying from Mineral Resource and the date of this document. The Company disclaims any intention internal audits and its Whistleblower Policy (revised in 2019), which includes the Company’s Mineral Reserve estimates, estimates of grade, tonnage, dilution, or obligation to update or revise forward-looking information or to independent third-party ClearView Connects reporting system. Details on progress on these areas mine plans and metallurgical and other characteristics; risks explain any material difference between such and subsequent actual can be found in the following sections: associated with the estimation of Mineral Resources and Mineral events, except as required by applicable law. • Governance Reserves and the geology, grade and continuity of mineral deposits • Social Performance

LUNDIN MINING 2020 SUSTAINABILITY REPORT Corporate Head Office 150 King Street West, Suite 2200 PO Box 38 Toronto, ON M5H 1J9 Phone +1 416 342 5560 [email protected]

SUSTAINABILITY REPORT FEEDBACK We welcome feedback from stakeholders regarding our 2020 Sustainability Report. For further information or comments, please contact:

Cora Devoy (CSP) Certified Sustainability Practitioner Director, Environmental Performance [email protected]

Photo Credits: Site and Corporate Staff

Biodiversity Images and Drawings: © José Godinho, Biodiversity Expert, Neves-Corvo mine, Portugal

Photos in this report reflect adherence to COVID-19 regulations in place at the time, with some representing the period prior to the pandemic.