Sherritt International Corporation

SHERRITT INTERNATIONAL CORPORATION

2011 Summary Sustainability Report – Data & Tables THE DATA AND TABLES COMPENDIUM TO THE 2011 SUMMARY SUSTAINABILITY REPORT PROVIDES UPDATES TO KEY PERFORMANCE INDICATORS AND INFORMATION FOUND IN REPORTS FROM PREVIOUS YEARS. THE DATA AND TABLES FOLLOW THE SAME THEMATIC SEQUENCE OF THE PREVIOUS REPORTS: ENVIRONMENT, COMMUNITY AND WORKFORCE. ALL DATA ARE ON A CALENDAR YEAR BASIS AND ALL REFERENCES TO CURRENCY ARE IN CANADIAN DOLLARS UNLESS OTHERWISE NOTED.

ADDITIONAL INFORMATION FROM PREVIOUS REPORTS (NOT ORIGINALLY INCLUDED IN THE APPENDIX) HAS ALSO BEEN ADDED BELOW TO ENSURE THAT IT IS UPDATED FOR 2011.

Corporate

Our financial and operating performance: 2011 2010

Revenue ($ millions) 1,978.3 1,670.6 Net Earnings ($ millions) 197.3 144.8 Nickel Produced (tonnes) 34,572 33,972 Cobalt Produced (tonnes) 3,853 3,706 Coal Produced (millions of tonnes) 36.6 38.6 Net Working Interest Oil and Gas Produced (BOEPD(1)) 12,057 11,956 Electricity Sold (GWh(1)) 1,853 2,067

NOTE: All volume figures represent 100% of operations. No adjustments have been made to reflect joint venture ownerships. (1) BOEPD is “barrels of oil equivalent per day” and GWh is “gigawatt hours”.

Fund

to work with the Cuban authorities to ensure to work with the Cuban authorities to Climate Change and Emissions Management Climate Change and Emissions Management in compliance. reduced from 173 to eight at the end of 2010 and reduced from 173 to eight at the end end of 2011. Issuance is anticipated in 2012. end of 2011. Issuance is anticipated in requirements for their operations to remain requirements for their GHG regulations in Canada by contributing to the GHG regulations in Canada by contributing as established by Alberta’s provincial government. five at the end of 2011. with Both Metals and Coal continue to comply leveled and completed reclamation at Coal in leveled and completed reclamation at years. 2011 was above the trend from previous that reclamation is at appropriate levels. Both that reclamation is at appropriate levels. Result continue to follow the All of the Divisions continues Sherritt’s Moa Nickel Joint Venture (Moa) SOC in the mine footprint have been progressively Request for issuance was made before the Request for issuance was made before

P Y Y Y Y Progress

= Achieved; P = Partially Achieved

= Not Achieved; Y

Comply with local regulations for project on a regular basis through continued off-site surveys for viable populations Receive Certified Emission Reduction between reclamation and disturbance. Concern (SOC) Species of Minimize number of Long-term goal is to achieve a balance Keep annual reclamation levels in Canada Goal events as required Report on environmental its operations. GOAL MATRIX E1. ENVIRONMENT N environmental stewardship at all of stewardship environmental and principled responsible committed to practicing Sherritt is Environment greenhouse gas (GHG) emissions performance to reduce reclamation backlogs. performance to reduce reclamation credits (CERs) for each registered by operating permits and licenses by operating permits Clean Development Mechanism (CDM) and Cuba consistent with previous year’s and Cuba consistent with previous year’s at the Ambatovy Joint Venture (Ambatovy) 2 0 1 0 4 5 36 68 682 2011 2007 2007 1,064

45 82 928 688 2008 2008

48 85 643 694 2009 2009

46 74 912 501 2010 2010

our operating approvals.

43 46 992 2011 2011 1,143

(1) (2)

(2)

(1)

(3)

Leveled: the return to contour specified as the provincial standard, as outlined in mining licenses. Leveled: the return to contour specified as the provincial Completed: leveled, contoured and topsoiled. ts were related to spills of deleterious substances, which were reports were related to spills of deleterious substances, which contained and the materials recovered for The following details describe events at Coal: Land – Two ap hazardous waste storage and another was related to an operatingproval contravention relating to the salvage disposal at regulated facilities; one report was related to soli on in the prairies resulting in higher levels of suspendedds in water discharged from mine sites. of native plants. Water – Events mostly due to high precipitati This indicator shows the number of times reports were required due to exceedance of of times reports were required due to exceedance This indicator shows the number and ammonia at the ammonium sulphate granulation unit. A rigorous stack-limit exceedances during separate tests for particulate matter Fort Saskatchewan had two factors, resulting in changes to equipment and operating procedures. Subsequent internally successfully determined the contributing research program conducted The water event report was related to a brief storm pond dischargefrom the site due to high regional testing demonstrated compliance with all emission limits. to be mov capacity has allowed excess precipitation and surface runoffed between storage ponds on site to precipitation in July 2011. Additional installed pumping address low probability, high precipitation events.

) ) ) (ha) Leveled Completed (1) (2) Affected Reclaimed E4. RECLAMATION AT COAL’S MINES E3. RECLAMATION AT THE MOA MINE E3. RECLAMATION AT THE MOA (ha) Water (1 (2 (3 Land Water Coal Air Land E2. ENVIRONMENT REPORTS E2. ENVIRONMENT Operations) filed in Canada for Canadian (number of reports Key Indicator Fort Saskatchewan Air

Sherritt International Corporation | SSR DATA 11 | 2 Sherritt International Corporation | SSR DATA 11 | 3 (2) 0 0 0 6,800 3,644 Percent 75.8% 85.0% 52.3% 32.4% 65.2% 85.2% 79.0% 73.7% 10,444 10,344 100.0% Land to be conserved (ha)

0 0 0 Ha 600 613 7,418 2,915 4,813 1,800 2,400 1,934 3,485 2,182 1,300 24,660 Land to be Approximate total reclaimed Approximate reclaimed (ha)

0 0 Ha (ha) 600 100 1,800 2,500 2,551 8,733 5,574 1,891 5,647 4,412 3,339 1,300 33,447 (1) Land to be used to Dec. 31, 2011 to Dec. 31,

Surface disturbed

(1)

NET IMPACT OF MINING ACTIVITIES IN FORESTED AREAS S NET IMPACT OF MINING ACTIVITIES

(4)

(3)

Pipeline

Gain Ambatovy has redefined the mine conservation forest to include only land within Ambatovy’s land lease area. This caused a reduction of 1,556 ha that is outside to include only land within Ambatovy’s land lease area. This caused a reduction of 1,556 ha that is outside Ambatovy has redefined the mine conservation forest This land is rightly under the control/protection of the Analamay-Mantadia Forest Corridor (AMFC) of the lease area but was being conserved by Ambatovy. reporting as on-site offset is now included in the mine conservation forest total. administration. A 300 ha zone identified in previous lease area, currently including 8,319 ha of land (taking into account the 1,556 ha transferred). Ambatovy The AMFC is a forest area beside the Ambatovy mining the pro were instrumental (through funding and services) in initiatingcess to get protected status and and a major international non-governmental organization e administration of the AMFC to forest management for this area but its administration will remain independent of Ambatovy. Ambatovy continues to work with th sult is one of the largest continuous ensure that there is a continuous protected forest area linking mine conservation forests and other conservation zones. The re gain in conserved land by an forest areas in Madagascar. By working towards protected status for this land, Ambatovy is effectively increasing the total net additional 8,319 ha, to 18,663 ha. Data revised from previous reports. was completed in 2011. The Gregg River mine ceased operation in 2000. Reclamation Cumulative life of mine total. Completed: leveled, contoured and topsoiled.

(1) Subtotals Net Roads/Infrastructure On-Site Mine Conservation Forest Offsets Programme area) Ankerana Offset (Business and Biodiversity Mine Footprint Forest/Land Areas Mine Slurry E6. AMBATOVY’ (3) (4) Total (1) (2) Poplar River Sheerness Gregg River Coal Valley Obed Mountain Paintearth Mine Bienfait Boundary Dam E5. SHERRITT COAL’S TOTAL RECLAMATION ACHIEVEMENT RECLAMATION COAL’S TOTAL E5. SHERRITT 5 0 16 66 36 35 61 40 86 n/a 901 216 142 730 874 2008 2007 51,976 42,419 42,197 24,431 20,289 31,135 210,874 116,631 153,086 693,038

4 0 80 13 40 45 49 48 80 n/a 109 812 930 617 2009 2008 1,873 51,556 24,982 17,470 30,314 78,641 46,175 756,648 213,634 119,437 174,439

0 0 82 16 77 73 12 n/a 115 912 122 2009 2010 3,393 2,828 1,047 e) was 113,100,000 tonnes in 2009. 2 48,642 18,043 26,375 20,369 25,880 70,078 50,314 821,268 239,280 126,647 195,640

0 82 16 52 91 18 27 n/a 100 153 2011 117 2010 6,944 2,096 2,593 55,056 41,329 31,250 20,877 29,504 71,617 50,083 962,323 223,433 226,794 198,072

(5)

(3) (3)

2011

48,995 43,435 27,106 25,736 29,197 64,300 51,156 (5) (3)

238,895 375,000 228,539 180,390 1,312,749

(4)

(2)

(1)

(1) (3) For comparison, the total GHG emissions reported in Alberta (for facilities emitting over 100,000 tonnes of CO For comparison, the total GHG emissions reported in Alberta (for facilities emitting over 100,000 tonnes of Industrial process emissions are those associated with such things as chemical reactions, which are not required as part of annual reporting to Alberta regulators. Industrial process emissions are those associated with such things as chemical reactions, which are not required Emissions reported to Alberta regulators for compliance (total emissions less industrial process emissions). Change in 2009 due to change in methodology and taxonomy. Non-cumulative. and re-captures (15 in 2011) to change collars or replace batteries. Non-cumulative. Includes both new captures (12 in 2011) Change in 2009 due to change in methodology. Cumulative unless otherwise noted.

Char Plants and port) Process Emissions (3) Paintearth mine Poplar River mine Sheerness mine Total (1) (2) Boundary Dam mine Coal Valley mine Genesee mine (100% basis) Obed Mountain mine Fort Saskatchewan Refinery Ambatovy Ambatovy (mine, slurry pipeline, plant Coal Bienfait mine, Activated Carbon and E8. GHG EMISSIONS BY OPERATION (tonnes of CO Metals Fort Saskatchewan Industrial (2) (3) (4) (5) Fish program Number recovered for captive breeding Flora orchid park Number of orchid species protected in to orchid park Number of orchid plants transplanted (1) Number of birds relocated from clearing operations to date Number of birds relocated Amphibians and Reptiles frog sites discovered to date Number of Mantella operations Number of reptiles recovered from clearing clearing operations Number of amphibians recovered from Number of lemurs tagged with microchip identification Number of lemurs fitted with radio collars Number of lemurs Birds inventoried to date Number of species from clearing operations to date Number of eggs recovered that hatched Number of eggs recovered E7. AMBATOVY’S INVENTORY OF SPECIES PROTECTED OF SPECIES INVENTORY E7. AMBATOVY’S Species Lemurs inventoried to date Number of species

Sherritt International Corporation | SSR DATA 11 | 4 Sherritt International Corporation | SSR DATA 11 | 5 (1)

0 135 274 501 184 2007 2011 2011 2007 2007 1,580 3,004 3,004 1,150 19,960 343,125 648,295 229,263 >40,000 1,220,683 1,150,897

0 260 523 121 219 2008 2008 2008 1,452 21,011 20,202 20,202

92 351 559 153 2009 2009 2009 7,782 1,620 22,033 37,915 45,697

315 674 194 170 2010 2010 2010 1,556 16,612 20,120 28,020 48,140

48 449 250 2011 2011 2011

1,650 1,141 19,990 16,267 16,830 33,097

e) 2

significantly following process adjustments at the granulation plant, as per testing results. significantly following process adjustments at the granulation

database because NOx and SOx data are below the applicable NPR (NPRI) database because NOx and SOx data are below the applicableI reporting threshold levels. TPM Data will not match National Pollution Release Inventory

(2) (1) (2) (1) decreased NOx and SOx were higher in 2011 due largely to the full year of operation of the Activated Carbon plant at Bienfait. NOx and SOx were higher in 2011 due largely to the length of haul roads and the higher volume of material moved. Levels of TPM were higher in 2011 due to the increasing NOTE: The program began in mid-year 2007 so this represents six months. The program began in mid-year resulting in credits that were by 3,500 tonnes and 4,797 tonnes respectively, Coal GHG emissions were below the baseline target In both 2007 and 2008 Sherritt 2009. carried forward and used in

Oil Recycled (litres) – Canadian, Moa and Ambatovy sources Sulphur Reclaimed (tonnes) – Canadian Operations Key Indicator Metal Recycled (tonnes) – Canadian and Moa sources E12. OTHER INDICATORS Reported (submitted for approval, not issued) Reported (submitted for approval, not Recorded but not yet submitted Total recorded to Dec. 31, 2011 Key Indicator (tonnes of CO Carbon Credits from Energas in Cuba CDM Credits Issued to Dec. 31, 2011 E11. CARBON CREDITS (1) (2) NOx SOx TPM Coal – All Locations (tonnes) Sulphur oxide (SOx) Total Particulate Matter (TPM) Metals – Fort Saskatchewan Metals – Fort Saskatchewan (tonnes) Nitrogen oxide (NOx) E10. CANADIAN AIR EMISSIONS E10. CANADIAN (1) (2) Total E9. COMPLIANCE WITH ALBERTA GHG REGULATION ALBERTA GHG WITH E9. COMPLIANCE Purchased Offset Credits Metals Coal

430 2010 2010

187,620 791,165 815,587 1,794,372

$ $ overall

442 2011 2011 680,625 402,062 2,691,520

1,608,833 $ $

conferences on business practices conferences on

and is evaluating external tracking mechanisms and is evaluating external for possible future use. for possible future Result Sherritt continues to work on reporting in this area Sherritt continues to

Progress operations staff. quality control for goods 166 current suppliers were trained on and services delivery. Ambatovy’s invoiced total for national suppliers was Ambatovy’s invoiced total for national In 2011 Ambatovy held supplier Result in three cities, attracting more than 300 companies. Moreover, in three cities, attracting more than 300 Over 2,600 local businesses were registered by Over 2,600 local businesses were registered At the end of 2011, nationals represented over 77% of At the end of 2011, nationals represented workforce (including construction figures) and 91% of direct workforce (including construction figures) the end of 2011. US$212 million in 2011.

= Achieved; P = Partially Achieved

The target for the number of locals to receive training was surpassed in previous years and is no longer reported. The construction phase required a large The target for the number of locals to receive training

(1)

number of workers with a wide range of skills, resulting in training for thousands of people. number of workers with a wide range of skills, resulting These totals exclude obligatory community investment and training costs. NOTE: = Not Achieved; Y

businesses registered as possible suppliers value of at least US$100 million Sector Education Health Social Total (1) ($ millions) Wages Paid (at all operations) C4. VOLUNTARY COMMUNITY INVESTMENT C3. LOCAL EMPLOYMENT CONTRIBUTION Provide assistance to Small, Medium Secure local procurement with Target/Action Create and maintain a database of Achieve local Malagasy employment Track community activities and Track community ADJACENT TO AMBATOVY ASSETS C2. SOCIAL INITIATIVES FOR COMMUNITIES C1. COMMUNITY GOAL MATRIX C1. COMMUNITY N Goal Community Community long- its to fundamental is which license, social its maintain to stakeholders with diligently works Sherritt relationships. and to maintain positive external term business strategy of 85% for operating staff measure the impact of operations measure the impact on communities and Micro Enterprises

Sherritt International Corporation | SSR DATA 11 | 6 Sherritt International Corporation | SSR DATA 11 | 7

Human Network International Missouri Botanical Garden Northeast Region Community Awareness and Emergency Response (NRCAER) Population Services International Project C.U.R.E. Southeast Saskatchewan Air Shed Association UNICEF (Madagascar) West Central Air Shed Society Wildlife Conservation Society Canadian Standards Association Construction Owners Association of Alberta Construction Safety Association Systems International Council on Large Electric International Electrical Testing Association International Electrotechnical Commission in French) Madagascar Business Association (GEM Madagascar Chamber of Mines Madagascar Industrial Union for Extractive Madagascar’s Multi-Stakeholder Group Industry Transparency Initiative (EITI) Safe Saskatchewan Calgary Chamber of Commerce Canadian Business for Social Responsibility Canadian Chamber of Commerce Canadian Council on Africa Canadian Land Reclamation Association CARE International Conference Board of Canada, Business Council on Sustainability Conservation International Ducks Unlimited Fort Air Partnership (FAP) Henry Doorly Zoo Canadian Clean Power Coalition Clean Power Coalition Canadian Institute Canadian Fertilizer Selenium Working Group Canadian Industry Canada Coal Association of Institute Cobalt Development Lignite Energy Council of Mines Madagascar Chamber Nickel Institute Association (NCIA) Northeast Capital Industrial Association Saskatchewan Mining Board Workers’ Compensation Alberta Petro-Chemical Safety Council American National Standards Institute American Petroleum Institute and Petroleum Canadian Institute of Mining, Metallurgy Alberta Chamber of Resources of Resources Alberta Chamber Business and Biodiversity Offsets Programme (BBOP) Business and Biodiversity Offsets Programme Asity Madagascar Alberta Mine Safety Association

Non-Governmental or Community Organizations

Trade Associations

C5. AFFILIATIONS AND MEMBERSHIPS IN 2011 MEMBERSHIPS AND C5. AFFILIATIONS Organizations Industry

0 0 8 15 0.05 0.32 8.97 1,915 3,168 2,122 2,362 7,667 18,673 11,006

533,000

ec. 31, 2011 31, ec.

D $

in 2011, achieving a response rate of over 70%. in 2011, achieving a response rate of in 2011. employees or contractor employees in 2011. employees or contractor employees in Sherritt was well below the TRI target in 2011. Sherritt was well below survey engagement employee an conducted Sherritt Result There were no fatalities among Sherritt’s Sherritt again came very close to zero LTIs Sherritt again came

P Y Y Y

Progress

(1)

= Achieved; P = Partially Achieved

Locations

Length of service data not available for Cuban nationals. = Not Achieved; Y

Union Relations (Canadian Operations) Number of Collective Bargaining Agreements Number of Unionized Employees Awards for Employee Dependant Scholarships (dollar amount) (1) Safety Lost Time Injury (LTI) Index Total Recordable Injury (TRI) Index Fatalities: Sherritt Direct Staff Contractor Staff Other Total Contractors Total Average Employee Years of Service Key Indicator Workforce (number of people) Canada Cuba Madagascar Conduct the next employee OVERVIEW W2. EMPLOYEE AND WORKFORCE Achieve a target of zero for lost time injury Achieve a target of less than 0.75 for total Achieve a target of recordable injury (TRI) index data Achieve zero fatalities at all operations W1. WORKFORCE GOAL MATRIX W1. WORKFORCE N Goal Workforce to the its workforce and -being of safety and well the health, committed to protecting Sherritt is of its employees. professional development and projects (LTI) index data engagement survey

Sherritt International Corporation | SSR DATA 11 | 8 Sherritt International Corporation | SSR DATA 11 | 9 2007 2007 0.09 0.16 0.32 0.55 0.10 0.36 0.33 0.65 0.55 0.31 2002 2001 2000 1999 1998 1997 1996 2011 2010 2009 2008 2006 2005 2004 2003 Year awarded

2008 2008 0.02 0.15 0.35 0.00 0.06 0.16 0.35 1.04 0.45 0.23

2009 2009 0.05 0.14 0.00 0.50 0.07 0.23 0.36 0.94 1.99 0.29

(1) 0.06 0.13 0.28 0.51 0.07 0.27 0.35 1.12 0.51 0.29 2010 2010

(1) (1)

2011 2011 0.04 0.16 0.18 0.21 0.05 0.29 0.16 1.24 0.32 1.70

COAL WINNERS OF JOHN T. RYAN TROPHY COAL WINNERS OF JOHN T. RYAN

(2)

mine mine mine mine mine mine mine

(2) (2)

The John T. Ryan Trophy is awarded by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) for the best safety performance in the Canadian coal sector The John T. Ryan Trophy is awarded by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) for during the previous year. Sheerness received a John T. Ryan Special Award in 2011 for its exemplary safety record. Sherritt total data for all years includes both employees and contractor staff. Sherritt total data for all years includes both employees Beginning in 2011, data for all Divisions includes employees and contractor staff. Divisional data for previous years is not restated. Beginning in 2011, data for all Divisions includes employees Sherritt total data for all years includes both employees and contractor staff. Sherritt total data for all years Beginning in 2011, data for all Divisions includes employees and contractor staff. Divisional data for previous years is not restated. all Divisions includes employees and contractor staff. Beginning in 2011, data for

(1) (2) Genesee and Paintearth mines Genesee, Sheerness and Paintearth mines Genesee Sheerness Genesee Genesee and Paintearth mines Genesee and Sheerness mines Genesee and Paintearth mines Poplar River mine Genesee and Paintearth mines Genesee Paintearth Sheerness mine Genesee Sheerness W4. SHERRITT Mine (2) Power Total (1) Metals Coal Oil and Gas (2) (TRI) Index Total Recordable Injury Total (1) Coal Oil and Gas Power W3. SAFETY STATISTICS STATISTICS W3. SAFETY (LTI) Index Lost Time Injury Metals For additional information see the 2011 Summary Sustainability Report on our website or contact us in Toronto at:

Sherritt International Corporation 1133 Yonge Street Toronto, ON Canada M4T 2Y7 Telephone: 416.924.4551 Email: [email protected] www.sherritt.com